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:
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.
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.
Stakeholder engagement and management is central to successful project delivery. The market community needed relevant, appropriate and timely information about the relocation.
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.
Project success depends on effective project planning and management.
While initially well planned, critical changes to the project have not been effectively managed, affecting both the timing and cost of the project. The project will be six years late and more than double the original cost.
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:
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.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER March 2012
PP No 106, Session 2010–12