Mowing icon Greenfield’s loss shows manufacturers doing it tough need a helping hand

The collapse of a well-known 52-year-old Brisbane business last year, with the loss of 40 jobs, shows that there’s another pillar of our economy that needs a helping hand.

Greenfield Twin ride-on mower.

FARMERS should quite rightly get support and financial assistance in this land of drought and flooding rains. But isn’t it about time we lent more of a helping hand to another pillar of our economy – local manufacturing.

Last year, the 52-year-old Brisbane manufacturer Greenfield Mowers went bust, owing creditors $3.2 million and costing more than 40 jobs.

The business, established in 1965 by Theo Reinhold, sold thousands of ride-on mowers and associated products from a factory at Acacia Ridge. Theo’s son Lewis, who had worked in the business since his teens, was a director of the company.

According to a creditors report from SV Partners, the company failed for a number of reasons including high rental costs, competition and a downturn in the economy.

Other challenges included a flood of cheaper imports due to a higher Australian dollar and low rainfall resulting in less grass to be cut.

One bloke who thinks local manufacturers are not getting a fair go is BDO advisory partner Andrew Fielding, who worked to try and get a financial lifeline for Greenfield.

Pleas to various governments to help a company that produced an iconic Australian-made product however fell on deaf ears. Fielding tells your diarist that small manufacturers find it incredibly tough to get finance from big banks.

Illustration of Andrew Fielding by Brett Lethbridge.

There is a need for them to access low cost funds, perhaps from a government-backed bank similar to the old Queensland Industry Development Corporation (QIDC). The Queensland Rural and Industry Development Authority (QRIDA) that supports farmers could be a model.

It seems very unfortunate that manufacturing, which employs nearly three times the number of Australians than the agricultural industry, does not receive similar support from Federal and State Governments.

NEW HOME

STILL on the plight of Greenfield and the good news is that the brand lives on at another local manufacturer Cox Mowers. Cox has picked up the rights to manufacture the mowers from its Acacia Ridge factory.

Back in the 60s and 70s Cox and Greenfield were competitors, but in these tougher times they will now be built under the same roof. Cox, founded in the 1950s by engineer Owen Cox, also has a loyal bunch of customers who wanted an Australian-made product built for Australian condition.

ASIC ACTION

THE Queensland Supreme Court has restrained Advanced Wealth Financial Services Pty Ltd and Richard Gardner from carrying on a financial services business. The decision followed an investigation by ASIC that found Gardner and Advanced Wealth had advised clients to set up self-managed superannuation funds (SMSFs) to facilitate the purchase of investment properties in relation to which Gardner received substantial commissions. The court ordered that Gardner and Advanced Wealth pay ASIC’s costs of the application, fixed at $10,000.

LAWYER PLEADS

MORE ON ASIC and former lawyer Mary-Anne Greaves has pleaded guilty in Brisbane Magistrates’ Court to one count of giving false or misleading information to ASIC. The charge followed an investigation conducted by ASIC into the 2015 takeover bid by G8 Education for ASX-listed Affinity Education Group Limited Affinity.

The investigation included alleged undisclosed arrangements between G8 Education and West Bridge Holdings for the acquisition of Affinity shares as part of the takeover bid. The matter has been listed for a sentencing hearing before the Brisbane Magistrates’ Court on May 24.

G8 Education says that Ms Greaves has never been an employee or board member of G8 Education. It says no allegations have been made by ASIC against G8 Education or any current board member or employee.

MEAL TICKET

NO wonder retailers and restaurant owners find it hard to attract people into Fortitude Valley. Your diarist’s mate faced a whopping $35 for just over an hour’s parking at Secure Parking in Chinatown. That was more than the yum cha meal for two that included a mountain of dumplings, fried calamari and pork buns!

Thankfully, the restaurant King of Kings offered him a parking concession that reduced that to $12 but not all visitors to the Valley are so lucky.