PORT Fairy MP James Purcell has made explosive claims implying Warrnambool City Council was dysfunctional and that one of the region's largest employers, Midfield Meat, could move jobs interstate or overseas if its proposed expansion was refused.
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The Vote 1 Local Jobs member for Western Victoria told the Legislative Council there were "dysfunctional and unsustainable" municipalities within his electorate which affected business confidence and jobs growth.
"There is a situation on the horizon where I believe the dysfunctional nature of a local council will see many hundreds of local jobs leave western Victoria and finish up interstate or overseas," Mr Purcell said.
Yesterday he expanded his comments by naming the city council and Midfield.
He said he raised the issue in Parliament in light of instability in the city council and concern surrounding planned expansions by Midfield.
"There is a panel process in place that is reviewing the proposed Midfield expansion," Mr Purcell said.
"We would expect council to fully consider the merits of the development and the panel recommendation when making its decision.
"We have to look at the bigger picture and the potential issues that will arise if the Midfield expansion does not go ahead. While this expansion may only have a small number of jobs at this point of time, looking at the bigger picture is vital.
"If this company was to relocate the bulk of its workforce interstate it would have devastating impacts on our local economy and job network."
Warrnambool City Council last year had three attempts to make a clear decision on Midfield's application to revamp its rendering plant at Levys Point and subsequently will face a challenge from the company in the Victorian Civil and Administrative Tribunal in April.
Further expansion plans involving a 29-metre high cool store and 34-metre high milk powder factory adjacent to the Midfield abattoir in Merrivale were referred to an independent planning panel which sat in Warrnambool for more than a week earlier this month.
That panel is expected to hand down a recommendation by May, which the council must vote on whether to accept or reject. Evidence put to the panel indicated the projects met planning, environmental and traffic guidelines, but there was strong opposition from local residents concerned about potential noise, dust, traffic safety and property devaluation.
Midfield told the panel the two proposed facilities would create 38 direct jobs and generate another 130-plus flow-on jobs elsewhere while efficiency improvements to the meatworks and rendering plant would increase meat processing opportunities.
Mr Purcell said while industries like Midfield needed support to expand, he also backed procedures for review and approval.
"We will support the finding of the panel hearing, whatever it may be," he said.
In Parliament Mr Purcell called for a review of local government and intervention in councils where either councillors or staff were not working together or where councillors were not functioning effectively.
Yesterday the Small Business, Innovation and Trade Minister Adem Somyurek said "the Andrews Labor government is committed to reviewing the Local Government Act".
However, there was no comment from Local Government Minister Natalie Hutchins.
Mr Somyurek side-stepped the Midfield jobs issue and said "the greatest threat to jobs in the local government sector is Tony Abbott's $1 billion of cuts to financial assistance grants."
Warrnambool's mayor Michael Neoh in the past has refuted suggestions the council was dysfunctional and said it was achieving all its strategic goals despite perceptions of a 4-3 split.
pcollins@fairfaxmedia.com.au