Latest / 360 with Katie Woolf / Chamber of Commerce CEO Greg Ireland says Webuild is yet to sign a contract for the Darwin ship lift project after acquiring Clough’s assets

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Chamber of Commerce CEO Greg Ireland says Webuild is yet to sign a contract for the Darwin ship lift project after acquiring Clough’s assets · 360 with Katie Woolf

• 0:00
  Speaker 1: Now we know that Darwin Shiplift has been thrown a
• 0:02
  Speaker 1: lifeline following the collapse of developer Cloff. The Italian construction
• 0:07
  Speaker 1: company we Build as signed a contract with the administrators
• 0:10
  Speaker 1: to acquire Cloff's assets and its ongoing projects. The Minister
• 0:13
  Speaker 1: for Infrastructure, Planning and Logistics Evil all Us says that
• 0:16
  Speaker 1: the government is going to undertake due diligence on the
• 0:19
  Speaker 1: arrangements and we'll continue to work through environmental approvals. Now,
• 0:24
  Speaker 1: this has been a huge part of the Northern Territory
• 0:27
  Speaker 1: government sort of push for our forty billion dollar economy
• 0:32
  Speaker 1: by twenty thirty. I mean it's part of that plan.
• 0:36
  Speaker 1: But joining me on the line to talk a little
• 0:37
  Speaker 1: bit more about this and plenty of other things. He
• 0:39
  Speaker 1: is the CEO of the Chamber of Commerce. Greg Island,
• 0:42
  Speaker 1: good morning to you.
• 0:44
  Speaker 2: Good morning Katie, Greg.
• 0:46
  Speaker 3: Thanks so much for your time.
• 0:48
  Speaker 1: What do you think that you know, what do you
• 0:50
  Speaker 1: think about the situation now that we find ourselves in
• 0:53
  Speaker 1: with the shiplift. It does seem as though it's good
• 0:55
  Speaker 1: news yesterday that Italian construction company we Build has now
• 0:59
  Speaker 1: signed that track with the administrators to acquire class's assets.
• 1:05
  Speaker 2: Look absolutely, Katie it's a step in the right direction.
• 1:09
  Speaker 2: Obviously there's a fair bit of water to go under
• 1:12
  Speaker 2: that particular bridge in that process, but it's a great
• 1:16
  Speaker 2: outcome to see that project continue along those lines. We
• 1:19
  Speaker 2: still are aware that there's been no formal contract sign
• 1:23
  Speaker 2: with Anti government for the delivery of the ship lift project,
• 1:25
  Speaker 2: and that's very much concern in terms of additional delays
• 1:28
  Speaker 2: that we're all going to experience.
• 1:30
  Speaker 1: Yeah, right, so no formal agreement signed because we've now
• 1:34
  Speaker 1: got a got a new construction company on board.
• 1:38
  Speaker 2: Yeah, Look, I think that has been a sticking point
• 1:41
  Speaker 2: for a while contractually, so there has been no contract
• 1:45
  Speaker 2: sign and obviously this needs to get pass and due
• 1:49
  Speaker 2: diligence process undertaken, formal contract sign after that, and then
• 1:53
  Speaker 2: we might get to see some activity on site that
• 1:56
  Speaker 2: I was at a meeting this morning when Defense we're
• 1:58
  Speaker 2: talking about there closing down of the existing asset shiplift
• 2:03
  Speaker 2: at Lara Kia and that date's going to roll around
• 2:06
  Speaker 2: pretty quickly.
• 2:07
  Speaker 3: So are we going to get this up and going
• 2:10
  Speaker 3: fast enough.
• 2:13
  Speaker 2: That's been a concern for quite some time, Katie. It's
• 2:16
  Speaker 2: delay after delay after delay, and there is very much
• 2:20
  Speaker 2: a clock ticking on getting this thing up and commissioned.
• 2:24
  Speaker 2: If it's not building here, it will be built somewhere else.
• 2:26
  Speaker 2: Somebody is going to win this work, and we're not
• 2:29
  Speaker 2: really going about in stilling confidence in those investors with
• 2:33
  Speaker 2: this particular process. So, yes, it's good news and it's
• 2:36
  Speaker 2: great to see some steps forward.
• 2:38
  Speaker 3: Yeah, well, look it does.
• 2:39
  Speaker 1: It sounds like it's good news that there's the steps forward,
• 2:41
  Speaker 1: but it does sound as though there's there's quite a
• 2:44
  Speaker 1: bit of a way to go.
• 2:47
  Speaker 2: It seems that way. But urgency needs to be part
• 2:50
  Speaker 2: of the conversation in terms of it's still going to
• 2:52
  Speaker 2: be getting all right, but just don't sit around and
• 2:56
  Speaker 2: wait for things to happen, push them through and let's
• 2:59
  Speaker 2: hopefully get some construction underway.
• 3:01
  Speaker 1: Is it a concern that we build might have different
• 3:04
  Speaker 1: sort of requirements or may not be able to deliver
• 3:07
  Speaker 1: the project in the same way that Clough had proposed.
• 3:11
  Speaker 2: Look, that's an interesting conversation. And you know Cloff had many,
• 3:15
  Speaker 2: many national projects on the go, and this is one
• 3:17
  Speaker 2: of them, probably arguably one of the smaller ones as well.
• 3:21
  Speaker 2: So it'll get wrapped up in a whole bigger process.
• 3:23
  Speaker 2: I would hope that the urgency on some of the
• 3:26
  Speaker 2: other projects around the country will drive a good outcome
• 3:28
  Speaker 2: for us. So I would expect that, you know, the
• 3:32
  Speaker 2: proponents will talk about that in due course, but it
• 3:35
  Speaker 2: is one of the risks for sure, Greg.
• 3:37
  Speaker 1: How important is this ship left to the Northern Territory particularly,
• 3:40
  Speaker 1: you know, when we talk about that forty billion dollar
• 3:42
  Speaker 1: economy in.
• 3:45
  Speaker 2: The scheme of things, it's hugely important. You know, we
• 3:48
  Speaker 2: can see that not only is the defense activity around
• 3:52
  Speaker 2: the territory going to continue to increase and they will
• 3:55
  Speaker 2: be a significant user of this particular asset, but the
• 3:59
  Speaker 2: whole maritime structure around oil and gas and everything else
• 4:03
  Speaker 2: that's going to happen in our harbor is very contingent
• 4:07
  Speaker 2: on having some support services for those vessels. So it's
• 4:10
  Speaker 2: a huge and hugely important project in the context of
• 4:13
  Speaker 2: territory's future.
• 4:15
  Speaker 1: Now, when you talk about the contractors, obviously we're talking
• 4:18
  Speaker 1: about the delivery of the project, but also talking about
• 4:22
  Speaker 1: making sure that we you know, that we win contracts
• 4:25
  Speaker 1: as well. I'm assuming to ensure that it is a
• 4:28
  Speaker 1: busy ship lift.
• 4:30
  Speaker 2: Yeah, that's exactly right, and that's where those negotiations need certainty,
• 4:35
  Speaker 2: and certainty is not what we're dealing with right now.
• 4:38
  Speaker 2: But that's hopefully that's the case. And you know, we
• 4:41
  Speaker 2: have the same situation brewing with some cable. You know,
• 4:44
  Speaker 2: we really do need a positive outcome with that one
• 4:46
  Speaker 2: as well.
• 4:47
  Speaker 3: Just on that, I mean some cable.
• 4:49
  Speaker 1: We all know that over that Christmas period the dispute,
• 4:54
  Speaker 1: I think you'd have to say, between the two proponents.
• 4:57
  Speaker 3: Where are we at? Is this still going to be
• 5:00
  Speaker 3: able to go ahead?
• 5:02
  Speaker 2: Look, I think we're in a very similar situation to Cloff.
• 5:05
  Speaker 2: The administrators are seeking expressions of interest for purchase. One
• 5:09
  Speaker 2: would suspect that there's a couple of conversations happening around
• 5:12
  Speaker 2: the background there that hopefully we'll see a positive outcome
• 5:16
  Speaker 2: in due course of that as well. But continue to
• 5:18
  Speaker 2: hear from some cable that it's business as usual and
• 5:21
  Speaker 2: they fully expect a positive outcome.
• 5:23
  Speaker 1: Well, gee, I think we're all hoping, We're all certainly
• 5:26
  Speaker 1: hoping with both of these projects that they're able to
• 5:28
  Speaker 1: go ahead.
• 5:28
  Speaker 3: But there is you know, there's quite a.
• 5:30
  Speaker 1: Bit of concern I think it'd be safe to say,
• 5:32
  Speaker 1: isn't there from the community.
• 5:36
  Speaker 2: Yeah, look at our key projects in our economic future,
• 5:39
  Speaker 2: and that does create the uncertainty that we really don't
• 5:42
  Speaker 2: want businesses looking forward to a very constructive or the
• 5:46
  Speaker 2: part I guess period over the next decade, and then
• 5:50
  Speaker 2: these and other projects are critical to that.
• 5:53
  Speaker 1: Now, I do want to just chat about very quickly
• 5:56
  Speaker 1: the situation out of Alice Springs. Obviously, there's been quite
• 5:59
  Speaker 1: a number of businesses out of Central Australia really screaming
• 6:03
  Speaker 1: out for some time about the issues that they're experiencing
• 6:06
  Speaker 1: in Central Australia. Greg from your perspective, the announcement by
• 6:10
  Speaker 1: the government yesterday, are they feeling more hopeful of you
• 6:14
  Speaker 1: had many discussions with business owners in Alice Springs following
• 6:18
  Speaker 1: on from that announcement.
• 6:21
  Speaker 2: Look, there's been some conversations I think around the copy
• 6:25
  Speaker 2: machine yesterday around the announcement, as well as some more
• 6:28
  Speaker 2: formal stuff happening this morning as to what people are
• 6:32
  Speaker 2: thinking and feeling about these announcements. I think from a
• 6:35
  Speaker 2: chamber of perspective, we have been as active as we
• 6:38
  Speaker 2: can in the conversation all through this process and what
• 6:41
  Speaker 2: we're seeing now is resourcing that will make a significant
• 6:46
  Speaker 2: shift forward. But two hundred and fifty million dollars plus
• 6:49
  Speaker 2: the previously announced forty eight. Now, that's three hundred million
• 6:53
  Speaker 2: dollars coming into that region to target these particular outcomes.
• 6:57
  Speaker 2: That's got to be a positive thing for the community
• 6:59
  Speaker 2: and for the people impacted by all of this crime
• 7:02
  Speaker 2: and any social behavior. What we really need to see
• 7:06
  Speaker 2: is the value for that spend to make sure that
• 7:07
  Speaker 2: we are spending it efficiently and getting the outcomes and
• 7:11
  Speaker 2: a needed in a measurable way.
• 7:13
  Speaker 3: Yeah.
• 7:13
  Speaker 1: Absolutely, there's got to be those KPIs in place. We've
• 7:16
  Speaker 1: got to make sure that if there are programs, as
• 7:18
  Speaker 1: we heard from Michael Little a little bit earlier on
• 7:20
  Speaker 1: the show, you know, if there is a service provider
• 7:23
  Speaker 1: providing a service, there's got to be those KPIs and
• 7:26
  Speaker 1: we make sure that that money is being adequately spent.
• 7:31
  Speaker 2: Absolutely, and the Chamber will be focused on being part
• 7:34
  Speaker 2: of that conversation and also providing feedback if we think
• 7:37
  Speaker 2: that things aren't going the direction that they need to.
• 7:40
  Speaker 2: But we know for the sake of business and particularly
• 7:43
  Speaker 2: the broader Hourur Springs community, there has to be substantial
• 7:46
  Speaker 2: change and it needs to be effective and meaningful in
• 7:50
  Speaker 2: providing relief for the situation that they find themselves in
• 7:52
  Speaker 2: right now.
• 7:53
  Speaker 1: Just how difficult would you say it has it been
• 7:56
  Speaker 1: for businesses trying to operate in Alice Spring under the
• 8:01
  Speaker 1: current situation that they've been in.
• 8:05
  Speaker 2: I think the only where that springs to mind is horrendous, Kadie.
• 8:08
  Speaker 2: It's just been such a challenge many many businesses have
• 8:11
  Speaker 2: clothes and people who have left towns. We've been saying
• 8:15
  Speaker 2: it's a Christ's point for some time. That's very much
• 8:18
  Speaker 2: the case. Business needs the relief. The fact that three
• 8:22
  Speaker 2: and a half thousand people turned up to a community
• 8:25
  Speaker 2: meeting created some conversation, created more awareness. I think that
• 8:30
  Speaker 2: has been a positive and it was a little bit
• 8:33
  Speaker 2: of a shame the way that it was reported on
• 8:35
  Speaker 2: some aspects of the media on those outcomes, but I
• 8:38
  Speaker 2: think that the region now has an opportunity with this
• 8:43
  Speaker 2: funding to get some significant outcomes.
• 8:45
  Speaker 1: Greg, I want to ask you as well before I
• 8:47
  Speaker 1: let you go this morning. Interest rates they are looking
• 8:50
  Speaker 1: as though they're going to rise again today. There's no
• 8:53
  Speaker 1: doubt there's a lot of people doing it really tough
• 8:55
  Speaker 1: when it comes to the cost of living. Is it
• 8:57
  Speaker 1: having an impact on our Northern Territory businesses.
• 9:01
  Speaker 2: Yeah, we've chatted about this before. We seem to do
• 9:03
  Speaker 2: it quarterly canny and every interest rate rise day, which
• 9:07
  Speaker 2: seems to roll around pretty quickly, and we fully suspect
• 9:10
  Speaker 2: that there'll be one announced this afternoon, maybe to follow
• 9:14
  Speaker 2: as well after that. But we can see that, you know,
• 9:17
  Speaker 2: nationally that the impacts of rate rises are certainly starting
• 9:24
  Speaker 2: to dampen, and hopefully that means that this will tail off.
• 9:27
  Speaker 2: But the cost of money is getting much more expensive.
• 9:31
  Speaker 2: It does impact on business's ability to invest back into
• 9:35
  Speaker 2: their business, results in increased operating costs that gets past
• 9:40
  Speaker 2: the consumers. So it's a bad news story all round.
• 9:43
  Speaker 2: But perhaps on the other side of the fence, sitting
• 9:45
  Speaker 2: one that is a retiree and has some asset invested
• 9:49
  Speaker 2: in super they're starting to be a little bit more
• 9:51
  Speaker 2: return on that. So you know, some people are winners
• 9:54
  Speaker 2: out of this, and that the majority of us just
• 9:56
  Speaker 2: paying higher bills.
• 9:57
  Speaker 3: Yeah, it makes it hard, doesn't it.
• 9:59
  Speaker 1: And then you spending more money on everything basically, and
• 10:02
  Speaker 1: it feels like you're getting less for it.
• 10:05
  Speaker 2: Yeah. Look, absolutely, butt's hope there's some light at the
• 10:09
  Speaker 2: end of that particular tunnel, but yeah, it's going to
• 10:12
  Speaker 2: be challenging another twelve months, I think.
• 10:15
  Speaker 1: Yeah, well, get out there, spend locally. Make sure that
• 10:18
  Speaker 1: we do support our local businesses. I think is always
• 10:21
  Speaker 1: the message. Greg Island, the CEO of the Chamber of Commerce.
• 10:25
  Speaker 1: We always appreciate your time.
• 10:28
  Speaker 2: You're welcome, Katie.
• 10:29
  Speaker 3: Thank you