While Local Government is increasingly being exhorted to divest itself of all but ‘core’ activities in the name of economic efficiency, the reality, particularly for rural Councils, is that responsibility for economic prosperity in their communities often requires a different direction.
Faced with the loss of a long standing local meat packing company, an industry generating employment for 130 people, and millions of dollars of cashflow, Victoria’s Colac Otway Shire took the bold decision to buy the company. Mayor John Kennett said Council had carefully considered the pros and cons of the decision before proceeding.
“We had to look at what was going to develop the best result for the community,” he said. “It needed a courageous decision and some risk taking.”
Closure of the meatworks would have taken an estimated $20 million out of the local economy while the business had profit potential through its advantageous location. The region has good water and good quality stock, close proximity to Melbourne and access to export markets via the Avalon airfield.
Since the Shire took over the company, the abattoir is being administered by a Board of Management comprising representatives from the meat industry, Council and other local industries.
Inefficiencies have been identified and corrected making the company a more attractive proposition. Council is aiming to find an alternative buyer as soon as possible.
For further information contact Merv Hair, Corporate Development Manager, telephone (03) 5232 9416.
