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Business concerns over lack of Melbourne deal

Business and industry groups are expressing concerning about the lack of progress towards a deal to privatise Australia’s largest container terminal.

Last week it was revealed the Victorian Labor government was considering referring the matter to another parliamentary committee and that this could in turn result in a double dissolution election ‘trigger’ should there be no deal.

The major parties continue to be at loggerheads over compensation clauses regarding money to be paid to a future operator should a competing port be created elsewhere in the state.

Victorian Chamber of Commerce chief executive Mark Stone called for an agreement as “a matter of urgency”.

“Both major parties have been supportive of moving this project forward for over 12 months.

“The onus remains on parliamentarians to reach an agreement as a matter of urgency.

“This transaction cannot be stalled any longer at the expense of Victorian business and future generations.”

Mr Stone said the estimated $7bn to be generated was essential to progress Victorian infrastructure. Specifically, the money is to help pay for the removal of 50 of the state’s worst level crossings; work on some of which has already begun.

“Holding-up the funding to be used for vital projects jeopardises the liveability and competitiveness of our state for all Victorians, now and into the future.”

Shipping Australia chief executive Rod Nairn said he understood the Government had made some concessions on its privatisation agenda but was still committed to including a long term compensation package likely to restrict the development of second container port.

“The limitations of Port Phillip Heads, Yarra River…. will make (a second port) a necessity,” he said.

“The basis for such extensive compensation seems to be to maximise the up-front capital return from the sale and we don’t believe this is in the interests of Victorians or of promoting maritime trade in Victoria.

“It would be good to have bi-partisan agreement to the format of the privatisation to avoid future conflicts and policy reversals which could have major cost implications for the State of Victoria.”

Australian Peak Shippers’ Association executive director Robert Coode said APSA supported privatisation but “not at any price”.

“We have been consistent in saying that compensation should not be paid to the incumbent if and when it is decided a second port is required,” Mr Coode said.

“We certainly do not support a 50-year period in which compensation is applicable, we are not all that thrilled with the suggested 15-year period but as I have previously alluded to, compromise is the vehicle that will get the deal done.”

Mr Coode said privatisation must ensure port users were not disadvantaged with higher costs in the future from this legislation.

This article originally appeared in Rail Express affiliate Lloyd’s List Australia.

1 Comment

  1. It is a shame that this article wasn’t proof read before publication. The opening sentence “Business and industry groups are ‘expressing concerning’ about the lack of progress towards a deal to privatise Australia’s largest container terminal.” Expressing concerning??