I see the Govt.has rejected a request from this once Australian Company for a $25 million aid package. Not sure if it means the closure but what happens in businesses these days.
Wholly owned by Coca-Cola Amatil who made a huge profit this last financial year making an investment in SPC only if the Govt injects funds.
Shouldn't a business stand on it's own and not try and blackmail the taxpayer because jobs will be lost.
Cadburys in Tassie got financial help and the Holden/ Ford subsidies which cost billions to the Aussie taxpayer.
This isn't political in nature because all sides of politics were and are involved. It's a general query, why the taxpayer has to fund a profitable company who should support the country they are operating in.
How much of Coca-Cola's profit stays in Australia?
My understanding is that the problems being experienced by CCA with their wholly owned subsidiary have many dimensions, firstly the plant is very old, very manual, and incredibly inefficient when compared with the current generation of plants being built around the world. Second could be something to do with the strangle hold the grocery duopoly place on the market place for the produce. And third but by no means least the recent high value of the Australian dollar has driven their international customers to look to other sources.
Given the recent history of handouts to support inefficient businesses it is a little surprising to see the government back away from this one. I suspect the spectacular profitability of the Australian parent company may have had something to do with it.
I feel sorry for the people of the region though, it is not long since Heinz closed the tomato plant at Girgarre, only a few kilometers away.
I've got to side with the Govt. on this one. SPC want $25 million. It's Parent Coca Cola Amatil made over $580 million profit last year, and $215 million in the first half of this financial year. It's up to Coke to support it's subsidiary. Of course it's sad if so many people lose their jobs, then there are the farmers to consider. But that's the way it is today. On the other side of the coin, will it cost the Govt. more than $25 million in Centrelink payments to the unemployed !!
-- Edited by Big Gorilla on Thursday 30th of January 2014 07:40:32 PM
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Hi all.As yet no one has mentioned the virtually uncontrolled importation of cheap fruit products from countries which we have absolutely no chance of competing with due to their much lower costs of production and processing. Until such time as the dick wits who try to run this country realise that this unfair competition for our Aussie products is going to sound the death knell for many more similar companies it will continue. Get back to the system of tariffs on imports,as was the go a few years back, and use the money from that to subsidise our own industries. There should be nothing coming into this country tariff or tax free if that product, or an equivalent, can be produced in Australia. Too many pollies sucking up to countries in the name of free trade. Australia is capable of being self sufficient it just needs some one with a brain, e..g. Dick Smith or Gerry Harvey, in the helmsmans chair.
Good one Tony - Perhaps you can organise a Polly-Pedal Fund Raiser to buy food packages to ease the pain for the people on the dole queue.
The wrecking ball used on the NBN just hit the Goulburn Valley.
I have been told that one of the reasons that SPC is not getting much attention from the Govt (Both sides) is because that don't have a large union workforce. This is second or third hand info. But with all things like this I think there is at the very least a grain of truth.
Meanwhile Coca cola - Amital walk away pulling "their" money out leaving Shepparton and surrounds in financial straits and a Government that doesn't give a ****.
Not to mention the crime and ethnic issues that plague this once prosperous community.
We lived in one of the neighbouring towns when we were first married sad to see it nowadays
If we all take a moment to look at/itemise our (recent) purchases......i.e. from whom did we buy/from where was it actually sourced/manufactured etc.....there will, I suspect, lie a part of the answer as to why lots of these Aussie companies are disappearing, Govt subsidy-offered or not.
I am not at all meaning to offend anyone here, personal choice is part of this 'lucky country' for sure..... its simply my way of communicating a long-held belief...in that, we all want Aussie companies/jobs/products to remain strong, though often only if it is readily available/convenient/inexpensive to do so (as a consumer).
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A good traveller has no fixed plans and is not intent on arriving. ~ Lao Tzu
The most important thing to politicians is how to make sure they get elected again next election. Very few of them actually seam to care about the country.
The days of politicians that were there because they were passionate about the cause are long gone.
I agree with K Kelpie, all the cheap imports are ruining the preserving and fresh fruit industry. A few years ago another Goulbourn Valley plant closed without hardly a whimper. The Rosella tomato sauce factory in Tatuara.
All Governments care about is now and stuff the future generations, however, the unions must take some responsibilities for this. If the unions hadn't demanded so much of the profits go back to the workers the country would be in better shape. We may be getting paid less but at least more of us would have jobs. And one big bug bare of mine is this visa business for skilled workers from overseas. What a load of rubbish. To get a Job in the USA you must get a green card, here we just invite anyone to come and take our jobs. And WHY do we have a skills shortage? Once upon a time a large number of skilled workers came from the Armed Forces, now they hardly train anyone, their maintenance work is out sourced to over seas companies. These are just my opinions of course.
If you listen to CC about what is the cause of their problems with Ardmona, they will claim it is all caused by cheap imports and who is importing all these cheap products? Surprise surprise its CC, just go to their factory shop in Shepparton and you will find it is full of imported goods with hardly and Aussie product in sight, and they have the gall to ask the taxpayer for a helping hand, good on the Feds for saying NO lets hope the Victorian pollies say the same.
This has just been a blatant attempt by CC to rip off the taxpayers.
I've got to side with the Govt. on this one. SPC want $25 million. It's Parent Coca Cola Amatil made over $580 million profit last year, and $215 million in the first half of this financial year. It's up to Coke to support it's subsidiary. Of course it's sad if so many people lose their jobs, then there are the farmers to consider. But that's the way it is today. On the other side of the coin, will it cost the Govt. more than $25 million in Centrelink payments to the unemployed !!
Totally agree with the BG. Business have to survive out there in that big jungle. CCA purchased SPC / Ardmona in the belief that they would have a profitable offer. Or was it to be a tax write, if so, then we miss out on the tax revenue.
CCA is a giant, and can stand on its own two feet.
If the Gov. did go ahead and make the offer, which company would be next. Companies struggling, would be knocking on the government door request hand outs and quote the other companies that have received $$$ help.
We would much prefer to see the $$$$ all $25M being channelled back to our dinkem aussies who are struggling to put food on the table, let alone pay the power bill etc.
These very people now double buy CCA products when they can afford same.
I am with Tony Abbott on this segment of support.
Jay&Dee
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-- Edited by Big Gorilla on Thursday 30th of January 2014 07:40:32 PM
I've got to side with the Govt. on this one. SPC want $25 million. It's Parent Coca Cola Amatil made over $580 million profit last year, and $215 million in the first half of this financial year. It's up to Coke to support it's subsidiary. Of course it's sad if so many people lose their jobs, then there are the farmers to consider. But that's the way it is today. On the other side of the coin, will it cost the Govt. more than $25 million in Centrelink payments to the unemployed !!
Totally agree with the BG. Business have to survive out there in that big jungle. CCA purchased SPC / Ardmona in the belief that they would have a profitable offer. Or was it to be a tax write, if so, then we miss out on the tax revenue.
CCA is a giant, and can stand on its own two feet.
If the Gov. did go ahead and make the offer, which company would be next. Companies struggling, would be knocking on the government door request hand outs and quote the other companies that have received $$$ help.
We would much prefer to see the $$$$ all $25M being channelled back to our dinkem aussies who are struggling to put food on the table, let alone pay the power bill etc.
These very people now doubt buy CCA products when they can afford same.
I am with Tony Abbott on this segment of support.
Jay&Dee
I
-- Edited by Big Gorilla on Thursday 30th of January 2014 07:40:32 PM
Totally agree with you BG CCA should not have put their hand out in this situation but I guess you don't know unless you ask.
BTW on a recent trip when we passed through Shepparton we called into the SPC Ardmona factory outlet to stock up on some bits and pieces and found their prices quite reasonable, and the coffee in the coffee shop was really good.
I feel very sorry for the people that will lose their jobs if the company closes.
But, I like most of us on this forum, we change over our vehicles when the cost of maintenace becomes to high, ( I think SA has the oldest carpark at around 13 years) why has this companies equipment been left to be so far out of date and in efficient?
Simply because we have priced ourselves out of the market place..
Many years ago I worked for a BIG Clothing Manufacturer and the unions came in and demanded more pay for their workers so we put in bigger and better machines that required less workers and were able to make the same quantity of product, eventually after more and more claims for higher wages we like many many others outsourced our labour..
Everytime wages go up so does the cost of producing the product so then the cost of living goes up and then we get on the up and up roundabout..
I believe when CCA purchased SPCA, they did so to acquire the respected fruit juice and fruit drink brands that SPCA had. If you look now these are no longer made by SPCA, but are now part of CCA.
1. How many of you buy ONLY Australian produce? (Not repacked in Australian but ONLY aussie product)
2. Do all the workers at the Holden Factory drive/own Holdens? (Buy there own product and back company)
3. When you buy electrical items do you only buy if made in Aus?
4. When you shop for clothes do you look for AUS made label?
5. How many of the companies that are closing paid their Directors huge salaries (million +) and bonuses?
6. How many of these directors now work for other companies going broke or become politicians?
7. Do you have a Australian made caravan? (look around, microwave, lights, hubs and stubs, fittings)
Companies will continue to close as, in reality, it is cheaper to make most things in countries like China and thats what people buy. Quality second to cost maybe, or could it be that the major brands charge to much for what they make? Think of all the skills lost or no longer required if all production goes off shore.
Just imagine if all Australians had same mentality as most grey nomads. If we find a good local town that offers good service at reasonable cost we spend there (put money in their economy).
Its a self inflicted issue.
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We were discussing this with neighbors, and came to the conclusion that the country's ability to provide our own food should be a priority, we are letting our primary producers down in many ways.
The writing is on the wall. This country makes a living out of the stuff that it digs out of the ground, not what it produces in its factories. Politicians and economists talk up our "robust" economy, as they should, but the fact is that it is a fool's paradise. Just look at the obvious signs. Apart from the decline of manufacturing, just look at how the Aussie dollar responds to global events. Somebody sneezes in Outer Mongolia and the dollar drops a few percent. The Eurozone is a shambles, teetering on the verge of collapse, yet the Euro is appreciating against our currency. Clearly the "markets" recognise that the Aussie economy's claimed prosperity is all just a sham. I think we are due for a big fall. The Eurozone looks bad, but at least they have a comparatively strong manufacturing sector. That's probably why the Euro is hanging on.
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Did you know the SPC factory outlet is privately owned. NOT owned by Coca cola.
The owner is a grandson of one of the original shareholders and son of one of the first fruit growers.
He is as worried about the outcome of all this as are the rest of the retailers.
Sorry HW ... I guess he may be a shareholder but -
SPC Ardmona (SPCA) is an ASX listed, Australian-based company that specialises in large fruit packing and owns and operates a canning factory in Shepparton, and another factory in Kyabram Victroria. SPCA closed its Mooroopna processing plant in 2011. It has many workers and is one of the main sources of income for that area. It was formed in 2002 by the merger of the former Shepparton Preserving Company and Ardmona. The company is currently owned Coca-Cola Amatil.. The acquisition was finalised on 25 February 2005.
SPC Ardmona carries the SPC, Goulburn Valley, Ardmona, IXL, and Taylors brands.
Cheers - John
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You obviously didn't read what I wrote John.
The owner of the outlet shop, not all the above you just wrote, but the factory shop, was interviewed and photographed in Herald Sun this morning.
I said he was the grandson of an original shareholder.
He is the owner NOT CCA.
Speaking of that shop I've only been there once back in 1977 and filled the car up with cans of fruit that were dented or no labels.
Back then it was a bargain and the goods were distributed to the poor people of the Dandenong Ranges - my family.
I wonder if there are deals like that nowadays or have the accountants ruined it.
What a shame they're being hung out to dry like this. Not only a shame for the workers mostly a shame for the country.
We may all have to buy canned fruit grown in human excrement....
The shop would have been in Mooroopna then Cloak?
It's now in the middle of Shepparton now. A bit smaller, probably not as cheap overall but still some good bargains.
They now also have a freezer section.