Mr ADAMSON - 1996-10-08
I notice that, over the last fortnight, there seems to be a lack of understanding in relation to the purchase of the Goldchill brewery by Carlton & United Breweries (CUB). What are the facts of this matter?
ANSWER
Mr Speaker, I thank the honourable member for his question. It is obvious that members of the opposition do not understand what is going on and choose to interpret things in a negative fashion. They have put out a story saying that the purchase of Goldchill by CUB is a terrible occurrence. The facts are as follows. In 1994, the Cabinet decided that it would offer a package of assistance to transportation companies that moved some $2.8m-worth of equipment to the Northern Territory. It decided that it would subsidise that transportation to the tune of $490 000 which was a percentage of the transportation costs.
The equipment was purchased by a Queensland entrepreneur, Mr Pars Ram Punj from Eumundi Brewing Co which was then in receivership. This brewery equipment was destined to have gone offshore if it had not been brought to the Northern Territory. It was to go either to Fiji or back to India, the homeland of the investor. On 6 May 1994, an agreement was executed between Goldchill and the Trade Development Zone Authority of my department, requiring the company to establish, commission and operate a brewery in the Trade Development Zone.
Over time, a number of changes occurred, including changes in equity. The principal shareholder's participation was diluted progressively and was purchased by Pratt Industries, a very successful Australian company which operates the Visy Board venture in the Trade Development Zone. Eventually, it became the 100% owner of the brewery.
Mr Bailey interjecting.
Mr POOLE: I pick up the interjection from the member for Wanguri. I do not know where the story emanated from - probably from him - that it was scrap metal. It is not. I am assured by both CUB and Goldchill that about 99.9% of the equipment that was brought here was utilised in the construction of the brewery. The only pieces that were not were some old parts that were rusted, as is normal with any relocation of a structure. They used 99% of the equipment that was brought up.
The brewery was completed subsequently and it trialled brews in November 1994. At that time, it was approached by 2 brewing companies that were interested in purchasing the operation. The negotiations took quite a long time. On 25 September 1996, CUB announced that it had purchased the brewing assets of Goldchill from Pratt Industries. The company further announced that it would upgrade the brewery to its own operating standards. Initially, it will brew a bulk beer for the local market and it will review export potential in the near future. It has been made quite obvious, in comments made by the chief executive officer on radio in Darwin on Wednesday 2 October and in a letter published in the NT News, that the
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company is very interested in the export market as well as in making a Territory brew for the local market. It will continue with its very successful products under the Fosters and Carlton Light labels. It will be looking also at producing a malt extract brew to be exported to Indonesia and other Muslim countries to our north. The chief executive officer stated that he currently has people in Jakarta, Singapore and a number of other locations in South-East Asia, investigating the market potential.
There is no sleight of hand here. There was never any intention by the Northern Territory government to allow the brewery to be on-sold and to operate in the Trade Development Zone unless it conforms to the Trade Development Zone licence. We have that ability. Some of the media even suggested that $20m was spent to close the brewery down, to remove the competition. Who in their right mind would believe that the shareholders of CUB would allow their company to spend presumably about $20m - I do not know the figure - to close down Goldchill?
What the Northern Territory has obtained for its $490 000 is very important. The company transferred some $4m-worth of plant and equipment to the Territory. It invested $2.8m in land and buildings at the Trade Development Zone. It spent an additional $4.7m on building extensions and on fit-out costs which have been carried out by Territory contractors. There was a further $1.5m in operational expenditure in the period during which it was commissioning the brewery. This included the provision of jobs for up to 20 people. Additionally, some 60 Territorians were employed by various contractors during the construction and fit-out stages. Finally, the new brewery has now attracted Australia's major brewing company, CUB, to reinvest in the Northern Territory. I believe we should be given full credit for that. CUB has a management sales team here, a distribution and warehouse team, administration staff, and now it will have its brewery staff.
The fact that 20 people were laid off is extremely unfortunate. However, CUB had no choice in the matter. Clearly, Goldchill Brewing sold its operation and people were laid off. I am told, and the chief executive officer made this point on radio, that CUB will naturally take up people who have brewing experience when it is ready to start brewing, and that will be within a couple of months. CUB will not sit on its property for the next 2 years ...
Mr Bailey: Goldchill did.
Mr POOLE: Goldchill sat for a period of 12 months while it was negotiating the sale. I have no control ...
Mr Bailey: You said its first test brew was in 1994.
Mr POOLE: It test-brewed in November 1995. The product was never placed on the market.
Mr Bailey: That was 2 years ago.
Mr POOLE: If you had listened, I told you that the 2 companies tapped it on the shoulder in November 1994 and said they were interested in buying the company - sorry,
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November 1995. It has taken 8 or 9 months to conclude those sales arrangements. Naturally, with a $20m-odd investment, one would expect that it would not happen overnight.
We have been assured by Carlton United that it intends to operate a very successful brewery and that it will export overseas. You may create all the negative vibes you want to after this but, at the end of the day, we have a $25m brewery that will provide many jobs for people in the Northern Territory.
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ANSWER
Mr Speaker, I thank the honourable member for his question. It is obvious that members of the opposition do not understand what is going on and choose to interpret things in a negative fashion. They have put out a story saying that the purchase of Goldchill by CUB is a terrible occurrence. The facts are as follows. In 1994, the Cabinet decided that it would offer a package of assistance to transportation companies that moved some $2.8m-worth of equipment to the Northern Territory. It decided that it would subsidise that transportation to the tune of $490 000 which was a percentage of the transportation costs.
The equipment was purchased by a Queensland entrepreneur, Mr Pars Ram Punj from Eumundi Brewing Co which was then in receivership. This brewery equipment was destined to have gone offshore if it had not been brought to the Northern Territory. It was to go either to Fiji or back to India, the homeland of the investor. On 6 May 1994, an agreement was executed between Goldchill and the Trade Development Zone Authority of my department, requiring the company to establish, commission and operate a brewery in the Trade Development Zone.
Over time, a number of changes occurred, including changes in equity. The principal shareholder's participation was diluted progressively and was purchased by Pratt Industries, a very successful Australian company which operates the Visy Board venture in the Trade Development Zone. Eventually, it became the 100% owner of the brewery.
Mr Bailey interjecting.
Mr POOLE: I pick up the interjection from the member for Wanguri. I do not know where the story emanated from - probably from him - that it was scrap metal. It is not. I am assured by both CUB and Goldchill that about 99.9% of the equipment that was brought here was utilised in the construction of the brewery. The only pieces that were not were some old parts that were rusted, as is normal with any relocation of a structure. They used 99% of the equipment that was brought up.
The brewery was completed subsequently and it trialled brews in November 1994. At that time, it was approached by 2 brewing companies that were interested in purchasing the operation. The negotiations took quite a long time. On 25 September 1996, CUB announced that it had purchased the brewing assets of Goldchill from Pratt Industries. The company further announced that it would upgrade the brewery to its own operating standards. Initially, it will brew a bulk beer for the local market and it will review export potential in the near future. It has been made quite obvious, in comments made by the chief executive officer on radio in Darwin on Wednesday 2 October and in a letter published in the NT News, that the
Page 1620
company is very interested in the export market as well as in making a Territory brew for the local market. It will continue with its very successful products under the Fosters and Carlton Light labels. It will be looking also at producing a malt extract brew to be exported to Indonesia and other Muslim countries to our north. The chief executive officer stated that he currently has people in Jakarta, Singapore and a number of other locations in South-East Asia, investigating the market potential.
There is no sleight of hand here. There was never any intention by the Northern Territory government to allow the brewery to be on-sold and to operate in the Trade Development Zone unless it conforms to the Trade Development Zone licence. We have that ability. Some of the media even suggested that $20m was spent to close the brewery down, to remove the competition. Who in their right mind would believe that the shareholders of CUB would allow their company to spend presumably about $20m - I do not know the figure - to close down Goldchill?
What the Northern Territory has obtained for its $490 000 is very important. The company transferred some $4m-worth of plant and equipment to the Territory. It invested $2.8m in land and buildings at the Trade Development Zone. It spent an additional $4.7m on building extensions and on fit-out costs which have been carried out by Territory contractors. There was a further $1.5m in operational expenditure in the period during which it was commissioning the brewery. This included the provision of jobs for up to 20 people. Additionally, some 60 Territorians were employed by various contractors during the construction and fit-out stages. Finally, the new brewery has now attracted Australia's major brewing company, CUB, to reinvest in the Northern Territory. I believe we should be given full credit for that. CUB has a management sales team here, a distribution and warehouse team, administration staff, and now it will have its brewery staff.
The fact that 20 people were laid off is extremely unfortunate. However, CUB had no choice in the matter. Clearly, Goldchill Brewing sold its operation and people were laid off. I am told, and the chief executive officer made this point on radio, that CUB will naturally take up people who have brewing experience when it is ready to start brewing, and that will be within a couple of months. CUB will not sit on its property for the next 2 years ...
Mr Bailey: Goldchill did.
Mr POOLE: Goldchill sat for a period of 12 months while it was negotiating the sale. I have no control ...
Mr Bailey: You said its first test brew was in 1994.
Mr POOLE: It test-brewed in November 1995. The product was never placed on the market.
Mr Bailey: That was 2 years ago.
Mr POOLE: If you had listened, I told you that the 2 companies tapped it on the shoulder in November 1994 and said they were interested in buying the company - sorry,
Page 1621
November 1995. It has taken 8 or 9 months to conclude those sales arrangements. Naturally, with a $20m-odd investment, one would expect that it would not happen overnight.
We have been assured by Carlton United that it intends to operate a very successful brewery and that it will export overseas. You may create all the negative vibes you want to after this but, at the end of the day, we have a $25m brewery that will provide many jobs for people in the Northern Territory.
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Last updated: 09 Aug 2016