By CAM LUCADOU-WELLS
TWO locally-based state politicians – both of whom acknowledged a history of friendly sparring in parliament – were subjected to some well-directed jabs from a business breakfast audience at Sandown last week.
Assistant Treasurer Gordon Rich-Phillips and Shadow Attorney-General Martin Pakula opened up for questions at the Greater Dandenong Chamber of Commerce awards event last Wednesday.
The audience didn’t miss its chance.
David Willersdorf, director of the Grenda Group, lashed out at the government’s decision to award 30 per cent of bus routes to a foreign consortium Transdev, instead of a bid by Dandenong-based Ventura last year.
The decision was expected to also hurt Dandenong bus maker Volgren, despite all bidders making Victorian Industry Participation Plan commitments to use local suppliers.
Mr Willersdorf said the VIPP suffered from “not enough teeth”.
“Everyone knows an overseas company will get overseas buses.”
Another questioner said often tenderers offering the much-cheaper “China price” – for imported products – were awarded projects.
Mr Gordon Rich-Phillips said the government’s procurement policy was the same one that led to Victoria’s trains and trams being made at Bombardier’s Dandenong factory.
He said the government needed to look at the “full value for money” of a bid, taking into account the 30 per cent pricing differential between Chinese and locally-made products.
“It’s not proper to give a blanket statement (on local content) when the differential is 30 per cent.”
Mr Pakula said support for local manufacturers, the reskilling and training opportunities and uplift in payroll tax through more jobs also had to be considered.
A Chisholm Institute staff member fired a broadside: how could local manufacturing thrive given the State Government’s funding cuts to the TAFE sector?
Mr Rich-Phillips said there had been a substantial funding increase for vocational training – though money had shifted from TAFEs to private providers.
He said funds were being moved from courses not needed in the economy, such as fitness training and “underwater knitting”.
Mr Pakula said the ALP would restore TAFE funding.
“There’s no way we can have strong local manufacturing secured if we don’t have well-educated, highly-skilled workers.”
Other points of difference were major projects – the ALP favours Bay West rather than the Port of Hastings as Melbourne’s second major port, for example.
Mr Pakula conceded the ALP option wasn’t popular among his audience.
He pledged the ALP would set up an independent body, Infrastructure Victoria, to consider which was the best port site.
Mr Rich-Phillips said it was a decision best made by the government, rather than delegated to another body.
