International Family Business Blog

SPC Ardmona - a ‘co-investment’ or a rent seeker subsidy?

Questions arise about today's Victorian Government announcement of an A$22 million ‘co-investment’ with multinational Coca Cola Amatil into it’s wholly-owned SPC Ardmona subsidiary.

Q1: Will the public get to see the business plan or investment memorandum that the Government reviewed before making its ‘investment’ decision?

Q2: What is the nature of the ‘equity’ the Victorian voters will receive in SPC Ardmona?

Q3: Will any agreement between the Government and CCA include the AWU as a party and require CCA and the AWU to ensure measurable productivity targets are met? If not, why not?

Q4: If SPC Ardmona is  such a good investment, why isn’t CCA putting it’s money where its mouth is?

Q5: Will the ‘co-investment’ agreement  outcomes be guaranteed by CCA?

Surely, Victorian taxpayers are entitled to have the answers to (at least) these basic questions before their money is put in the pot.

In any event, if it does all go pear-shaped, the Victorian Government will lose their right to govern and CCA will lose their social licence to operate.

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