Inside story: David Collard made a special effort to make friends in high places – and there were plenty of takers
Failed Geelong businessman David Collard had many a friend in high places. One of those was Corio MP Richard Marles, who now says he is “shocked” by what has unfolded.
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Deputy Prime Minister Richard Marles has broken his silence on the collapse of a Geelong company headed by his former friend and disgraced businessman David Collard.
Mr Marles enthusiastically and regularly spruiked start-up Scale Facilitation to high-level audiences prior to its North Geelong base being raided by federal agents in June 2023.
This included the company’s glitzy opening of its New York offices on the 82nd floor of the One World Trade Center that was also attended by federal opposition leader Peter Dutton.
The Corio MP’s speech at a May 2023 American Chamber of Commerce event in Adelaide, where he again lauded “Dave”, particularly angered many former Scale employees because they hadn’t been paid for more than a month.
One seasoned Canberra observer with knowledge of Scale’s activities said of that speech: “It was quite bizarre in how strong he was on Collard. People weren’t getting paid in February and that was in May.”
Mr Marles said his role as a local MP meant he regularly advocated on behalf of Geelong businesses.
“The entire Geelong community was shocked when the revelations surrounding Scale Facilitation were made public,” he said in a statement on Friday.
Mr Collard made a special effort to court senior politicians, not only in Australia, but also in America and the UK.
Far and away, his closest political contact was Mr Marles.
The pair were introduced in 2021 by the MP’s former partner and one-time Geelong radio identity Roxie Bennett, who first met Mr Collard two years prior at a Cats’ home game.
“It was more about the fact, introducing him, not so much from a business perspective, but as a Geelong guy doing extraordinary stuff in the US to the local federal member,” she said.
“They were both avid Cats fans and I thought they’d have a lot in common.”
Ms Bennett, who commenced work for Scale in late 2021, said the job of any local member was to “pump up the tyres” of someone providing opportunity in their electorate.
She said Mr Marles would not have been aware of the non-payment of Scale employees and that any criticism of his support for the company and Mr Collard was unfair.
“I don’t think he (Marles) supported him (Collard) in an inappropriate way, not as far as a member of parliament is concerned,” Ms Bennett said.
Mr Marles’s comments were prompted by questions from the Addy after several former employees said his public backing should not have occurred without greater knowledge of Scale’s inner workings.
A multi-agency federal investigation into Scale and Mr Collard remains ongoing.
It is based around allegations of tax fraud involving allegedly false research and development claims worth tens of millions of dollars.
Many former employees continue to assist investigators.
Mr Collard did not respond to a series of questions.
Employee anger
For some employees, Mr Marles’s support of Scale and seemingly close relationship with Mr Collard gave them confidence, at least initially, that despite warning bells, everything would ultimately be OK.
That view was reinforced by support from Mr Dutton at the NY launch where he said Mr Collard “has the ability to see around corners and over the horizon”.
Mr Dutton, who had his flights and accommodation paid for by Scale, did not respond to questions.
Other notable figures at the launch included former NSW premier and Australian Consul-General in NY Nick Greiner, and former Liberal senator and Australian Ambassador to the UN Mitch Fifield.
The employees’ sentiment was shared by at least two Geelong businessmen whom the Addy spoke to – both were left out of pocket after Scale subsidiary Sanitex Global was forced into liquidation in November last year.
“What an absolute embarrassment – two of our most senior leaders (Marles and Dutton) conned simultaneously,” a former Scale executive and Geelong local said.
“I’m angry that neither of them have come out in support of the employees, local businesses, community, and charities who’ve been ripped off.”
Jeremy Bowtell, a former St Joseph’s College Geelong classmate Mr Collard, is producing a documentary on the entire saga.
“Through numerous conversations with people impacted by these events, my impression is that the endorsements by Marles and Dutton gave a lot of confidence to employees, partners and suppliers that Collard and his ventures were rock solid,” he said.
“While former staff don’t blame Marles or Dutton per se, their public admiration of Collard has certainly raised more than a few eyebrows, and confidence in our elected representatives has certainly taken a hit.”
It is understood Mr Marles has met privately with a number of Scale staff who were impacted.
Courting Canberra
It was not so much an occasional humble brag.
It was out and out gloating that was first designed to impress, and later reassure worried employees and investors that everything would be OK.
Mr Collard made no secret of his high-level political connections.
Quite the opposite.
“He’d constantly try to leverage these relationships,” a former Scale executive said.
“He’d drop names in official conversations, emails and messages.
“He even made a direct request to Malcolm Turnbull in 2023 to help with funding.”
The request is understood to have been unsuccessful, but Australia’s 29th prime minister did send a copy of his 2023 memoir – A Big Picture – with a handwritten message: “For Dave, with best wishes, Malcolm Turnbull”.
Sean Johnson runs the Open Politics blog, which is focused on increasing public scrutiny of federal politicians.
He has also dedicated a number of posts to Mr Collard and his political network.
“It’s normal for a local member to help a local business, but the extent of the relationship with Marles is very unusual,” he said.
The former Liberal ministerial adviser and public affairs consultant said Mr Collard “found the perfect mark in Marles”.
“I think part of the story is Collard is a classic corporate rent seeker who needed government to make his business viable,” he said.
“So he played on Marles’s hawkish, anti-China instincts to promote Scale as proving ‘sovereign capacity’ in battery production.
“The hide of the guy (Collard) given the equipment to make the batteries was made in China, and he never paid the Chinese.”
Flat batteries
Mr Collard’s grand plans revolved around the development of two massive lithium-ion battery manufacturing and energy storage sites – one in Avalon, the other in Northumberland in northeast England.
There was enormous political appetite for both projects and Mr Collard knew it.
Scale subsidiary Recharge Production’s bid for the UK Britishvolt site fell flat in April this year after the company defaulted on the sale agreement.
Mr Collard had painted himself in UK political circles as an ambitious entrepreneur looking to capitalise on the next energy frontier.
In the process, he scored himself an invite from Australia’s High Commissioner in the UK, former Labor minister Stephen Smith, to the June 2023 official reception to mark the Australia-UK free trade agreement coming into effect.
Also in attendance were Australia’s Minister for Trade and Tourism Don Farrell, and former UK Secretary of State for the Department for Business and Trade Kemi Badenoch.
The Avalon project promised up to 500 jobs but it never realistically got close to getting off the ground.
It is unclear whether Mr Marles, Corangamite MP Libby Coker, and Industry Minister Ed Husic were aware that no lease had been signed for the site when they visited in May last year.
“It’s going to be an amazing addition to the manufacturing base of Geelong,” Mr Marles said at the time.
Mr Husic and Ms Coker said they never met Mr Collard.
A well-connected Canberra figure said Mr Collard presented as a “very charming, very engaging man” who appeared to be on a mission with renewable energy.
“It was a very slick operation … you can certainly see how people got caught up in it, he certainly knew enough to come across as a very credible person,” she said.
“I think what he was trying to do at the time, without the benefit of knowing the tax fraud he has been accused of, he seemed to come across as big enough to pull this off in terms of the battery manufacturing centres.
“Come across as a bigger organisation, show that you can do the work and get the money in, and then everything will be all right.
“Why did Marles jump in? Geelong boy made good, I think.”
That Geelong boy is now the subject of multiple investigations and things are certainly far from good for a long list of people who got caught up along the way.
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Originally published as Inside story: David Collard made a special effort to make friends in high places – and there were plenty of takers
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