Victorian Auditor-General's Office

Audit summary

The National Gallery of Victoria, Museum Victoria, State Library of Victoria, Public Record Office Victoria, Arts Centre Melbourne and the Australian Centre for the Moving Image are custodians of important state collections acquired and developed over nearly 160 years. These collections have natural history, scientific, historical, artistic and cultural significance, and were valued at around $5 billion at 30 June 2012. The collections are a valuable resource to the people of Victoria and include items that cannot be replaced if lost, damaged or stolen.

Appendix A. Audit Act 1994 section 16—submissions and comments

In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Business and Innovation, the Department of Primary Industries, the Melbourne Market Authority, the Department of Premier and Cabinet and the Department of Treasury and Finance with a request for submissions or comments.

Responses were received as follows:

4 Trading floor procurement

At a glance

Background

Sound procurement is necessary to best meet the state’s interests. This includes achieving value-for-money in procurements and promoting confidence in commercial dealings by demonstrating fairness and transparency.

Conclusion

Major Projects Victoria’s (MPV) procurement process was not demonstrably fair and it is likely the government paid more for the trading floor than it should.

3 Stakeholder management

At a glance

Background

Stakeholder engagement and management is central to successful project delivery. The market community needed relevant, appropriate and timely information about the relocation.

Conclusion

Stakeholder management was not effective. A lack of communication with market tenants contributed to the delay in the relocation. Tenants still lack the basic information needed for them to make a decision on relocating.

1 Background

1.1 Relocation of the market

Melbourne's Wholesale Fruit and Vegetable Market and the National Flower Centre are an important part of the state’s economic infrastructure, with an annual turnover in excess of $1.6 billion. Both are owned by the state and operated by the Melbourne Market Authority (MMA).

The government announced in 2004 that the market would be relocated to a new site. The intent was to locate the new market within a modern, innovative and efficient trading and distribution precinct.

The new site will comprise:

Audit summary

The Melbourne Wholesale Fruit and Vegetable Market incorporating the National Flower Centre is an important part of the state’s economic infrastructure, with an annual turnover in excess of $1.6 billion.

The market is being relocated from its current site in Footscray Road to a new site in Epping. The intention is to establish the new market within a modern, innovative and efficient fresh produce trading and distribution precinct. This is one of the largest infrastructure projects undertaken in Victoria in recent years.

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