Big business takes a stick to Andrews’s ‘diabolical’ leadership

Business leaders warn the construction sector could ‘go backwards’ and the economy won’t simply bounce back.

Property developer Tim Gurner says he is ‘appalled’ at the lack of consultation with builders and unions. Picture: Stuart McEvoy

Victorian big business owners have attacked Premier Daniel Andrews’s handling of stage-four restrictions, labelling his leadership “diabolical” and criticising his government for a lack of consultation on measures they believe will lead to thousands of businesses shutting their doors for good and huge amounts of jobs lost.

Amid confusion, back-pedalling and questioning over logistics regarding the impact and implementation of the latest restrictions, the business leaders say Victoria’s vital construction sector could “go backwards” because of the “catastrophic” new policies and the economy was “not an abstract thing that will bounce back” as job losses mount.

Sam Tarascio, the billionaire owner of Salta Properties group that owns and builds dozens of shopping centres, warehouses and office blocks in Melbourne, said business was “confused” about the measures. He also critical of Mr Andrews’s approach.

“I think the state’s leadership has been diabolical,” he said. “The government is saying this is a health crisis and we can’t consider everything else.

“But that is like sticking your head in the sand. We can be healthy but we are going to stuff the whole state’s economy in the meantime.”

John Gandel, the billionaire co-owner of the giant Chadstone shopping centre, said “half the real estate sector would be wiped away” should even tougher ­restrictions be imposed if stage-four lockdowns did not work.

Flight Centre co-founder Geoff Harris forecast that 20-25 per cent of small to medium businesses could close their doors by the middle of next year.

The business leaders own some of Victoria’s biggest companies, employing tens of ­thousands of workers at construction sites, shopping centres, ser­vices companies, retail outlets and rural properties across the state.

Property developer Tim Gurner said he was “appalled” at the lack of consultation with builders and unions before the Andrews government announced a 25 per cent capacity restriction at sites.

At that size, he said, “the building actually goes backwards, so it shows a complete lack of understanding of the sector.

“It is going to be catastrophic for the Victorian economy. It is policy on the run.

“This is the most ill-thought-out policy I’ve seen.

 

“It is like they made it up the night before … and it has been ­disappointing, given that Victoria is a construction and property ­industry-driven state … and one that employees 400,000 people.”

Mr Tarascio said the government’s decision to reduce the staffing on construction sites was “a real issue”.

“On one apartment project … we potentially will be pushed out so we can’t meet sunset dates of the sales we have made,’’ he said.

“And where our funding ­expires and if we can’t get the building finished and pay the loan back, we are in default.

“So we have been facing some difficulties.”

He said Salta had not laid off any staff and paid employees their full wage so far through the pandemic.

“But there may not be enough work for everyone from here — we may have to ask them to take some holidays and hope we work our way out of it.”

Mr Gandel said Chadstone had been back to about 75 per cent capacity before the latest lockdown and landlords would bear the brunt of the ensuing economic difficulties.

He said Victoria was vital for the entire Australian economy.

“As Victoria goes, so Australia goes. We are going to have to get through here so this doesn’t spread around Australia,” Mr Gandel said.

Billionaire packaging magnate Raphael Geminder, whose Pact Group is a major supplier of packaging to the food sector, said the firm was making sure it was well placed to keep supplying customers, “given the considerable disruption and multiple challenges they are having in keeping up with the surge in ­demand for various things.”

Victorian Premier Daniel Andrews. Picture: Daniel Pockett

“This is a wake-up call that having a domestic supply chain is absolutely critical.

“Relying on imported packaging in this pandemic has been a massive problem for so many companies and has exposed the importers as a major risk,’’ he said.

Asked about the state government’s decision to implement stage-four restrictions and the impact on the manufacturing sector, he replied: “It is hard to argue with the health experts — we are all taking a leap of faith in their ability to reduce the infection rate. The government is ­focused on keeping people healthy and at the end of the day that’s the most important thing.”

Zac Fried, the billionaire co-owner of the Spotlight, Anaconda and Harris Scarfe chains, said 18 per cent of stores had been shut and had changed to internet shopping. He said he understood the government taking action but “the mental health aspect for our people is very ­important through all this.”

Mr Harris, who also has restaurant chain investments, said governments needed a solution “on how we are going to live this pandemic rather than shutting down, opening up and shutting down.

“I think this will be tough and you’ll see 20-25 per cent of SME’s not come back from this later this year or mid-next year. The economy is not an abstract thing that will bounce back. People’s health and their livelihood and jobs are inextricably linked.

Rich-lister Frank Costa, who has been holed up in his Geelong penthouse apartment during the pandemic, said he was still confident about the future despite the latest lockdown.

“This is just an unusual period we are going through. It will eventually pass and things will settle down again,’’ he said.

“I think the government have only done what they felt they had to do.”

He said his brother, Robert, had been hospitalised with COVID-19.

“He has been crook. He is actually in hospital at the moment. But the last 24 hours have been a lot better for him,’’ Mr Costa said.

Both Frank and Robert Costa have a shareholding in Costa Group, the nation’s largest fruit and vegetable company.