Epping Melbourne Market privatisation bid under Coalition government

FRUIT, vegetable and flower wholesalers are making a bid to buy the $600 million Epping Melbourne Market, pinning their hopes on a Liberal-­Nat­ionals state election win.

Hefty bill: Moving the wholesale market from West Melbourne to Epping in 2015 cost Victorian taxpayers more than $600 million.

FRUIT, vegetable and flower wholesalers are making a bid to buy the $600 million Epping Melbourne Market, pinning their hopes on a Liberal-­Nat­ionals’ win at the November 24 state election.

“Every other market has been privatised under Liberal governments,” the wholesalers Fresh State Limited chief exec­utive Jason Cooper said.

“It depends on the outcome of the election — if it goes the way people want it to go, then there’s a chance to privatise it.”

Cartoon: Chris Rule

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Asked if Fresh State wanted to buy the market Mr Coopers said: “absolutely we would”.

He said wholesaler tenants had formed consortiums to buy government-owned markets in other states, including in Sydney, Newcastle, Brisbane, Adelaide and Perth.

More than $600 million of Victorian taxpayers’ funds went into moving the wholesale market from West Melbourne to Epping in 2015, with the Melbourne Market Authority’s last annual report showing it has a net asset value of $603 million and earnings of $24 million.

Industry insiders have told The Weekly Times the Liberal-Nationals Coalition had set its sights on selling the Epping market and had joined Fresh State in waging a campaign to undermine the government-appointed Melbourne Market Authority board and management.

“Walshy (Peter Walsh) wants to sell,” the key insider said.

When asked, Nationals Leader Peter Walsh said selling the market “was not something we’ve really thought about”.

“Whatever happens out in the market needs to done with those who work in the market,” he said.

But Mr Walsh has joined Fresh State in attacking MMA chairman Peter Tuohey and chief executive Mark Maskiell, who he said were virtually unknown to most market users.

“You have Fresh State saying no one knows who the chair and CEO are,” he said.

Fresh State president Shane Schnitzler has written to Agriculture Minister Jaala Pulford calling on her to remove Mr Tuohey and Mr Maskiell, stating wholesalers were: “unable to continue to productively work with the current management and board of the MMA”.

A petition attached to the letter was signed by about 100 wholesalers.

He said the cost of doing business at Epping was now “significantly more expensive than any other central market in Australia”.

Mr Tuohey did not wish to comment, but he did supply a letter from himself and Mr Maskiell to Fresh State, stating the MMA board was increasing rents by 4 per cent for 20 store holders, dismissing ­rumours of a 20 per cent rise, as recommended by the Victorian Valuer General’s office.

“The MMA considered that this was unacceptable and ­uncommercial for a number of reasons and accordingly, the MMA board … approved a rental increase equivalent to 4 per cent,” the letter stated.