Gold Coast business leaders, livid, disappointed by outsourced Commonwealth Games jobs

LOCAL businesses capable of delivering high-value Games contracts say they have missed out on cash, staff skills and experience. But there’s a wider impact they say will hurt the city even more.

BUSINESS leaders are livid Gold Coast companies missed out on the bulk of high-value Games contracts, saying the snubs reinforced the unfair perception the city can’t be trusted with important work.

Robina-based Transit Australia Group, which operates six urban bus companies including Surfside, lead a consortium of companies which missed out on the Games transport contract to a Victorian company with a Gold Coast office that was vacated barely a week after the Games finished.

Details of the contract have not been released. However, the State Government described it as “the biggest transport contract in Queensland history” and industry sources say it was likely to top $20 million.

A THIRD OF GOLD COAST BUSINESSES REPORT NEGATIVE GC2018 IMPACT

GOLD COAST BUSINESSES BLINDSIDED BY TRADE DROP

This sign is all that’s left of $20m-plus bus contractor Games Linq. Photo: Kathleen Skene

Transit Australia boss Michael McGee rejected GOLDOC’s claims local companies were overlooked because they weren’t capable of delivering the projects.

“In Queensland alone we operate some of the state’s largest urban bus networks outside of Brisbane City including here on the Gold Coast through one of our companies Surfside Buslines,” he said.

“We also have an internationally based joint venture company with an American firm that specialises in mega event transport management.

Gold Coast businesses have been underwhelmed by the benefits of the Commonwealth Games.

“Several weeks ago our international transport events team did a tremendous job in delivering the event transport solution for the MENA Special Olympics in Abu Dhabi and we are working on other significant international sporting events across the globe.

“While governments and transport authorities the world over recognise our experience and advanced mass transit capabilities, it is a shame we were unable to demonstrate this in our own backyard.”

Transit Australia group CEO Michael McGee. Pic Jono Searle.

Mayor Tom Tate first wrote to Goldoc about the issue when local companies were overlooked for initial planning contracts in 2013. Last night, he said the revelations about tenuous Gold Coast presence were an affront to local business.

“Goldoc has either been inept, incompetent or just plain lazy in their application of local procurement procedures,” he said.

“Council has the framework laid out and it’s working. We offered that model to them.

“Now we learn of these out-of-town contracts ... (it’s) a slap in the face for every Gold Coast business.”

Southport business identity John Howe said Gold Coast companies felt mislead by Games organisers’ rhetoric about supporting local business.

“It’s one of those things where you look back and go ‘what happened?’,” he said.

“There’s great disappointment among these local companies that have built up national and global experience in events like the GC600, which is the largest event in Queensland.

“The tragedy for everyone was that it once again reinforces the perception that Gold Coast isn’t any good — that you’ve got to source things from everywhere else.”

Businessman John Howe. Picture by Scott Fletcher

Mr McGee said Gold Coast companies had missed out on important Games benefits because of GOLDOC’s procurement process.

“The legacy of these sorts of events is critical for local companies and employment,” he said.

“It really allows for local companies to gain critical industry experience that will assist with future business growth, but unfortunately I am unable to state that this happened with our company.”

Gold Coast Suns chairman and long-time businessman Tony Cochrane said it was understandable that some work had to be done by outside companies, but that it was difficult to believe the extent of outsourcing for GC2018 was necessary.

“The Gold Coast is Australia’s sixth-largest city and it has an awful lot of expertise, capability and staff,” he said.

85 photos from the Commonwealth Games opening ceremony

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“One would like to think if we’re not standing on our own two feet yet, we’re close to it.”

The Government had four key objectives for hosting the Games, with “leverage the Commonwealth Games to derive economic benefits and develop local business and workforce capability” among them.

Locals like Mr Howe say organisers failed in that objective.

“Local companies have expertise and we are doing work all over the world for people but we seem to be overlooked in our home town.”