The US-based company has spent $200 million redeveloping its Melbourne plant to enable it to assemble parts for its belated 787 Dreamliner aircraft.
Despite the extensive refit, the plant and the doomed Bankstown facility were operating at less than 50 per cent capacity.
Mrs Keneally denied that her Government was allowing the state’s most lucrative sectors to be cherry-picked by rival states.
“We are working as hard as we can, pushing all the levers that we have available to us, to increase investment in this state, and grow jobs and grow the economy,” she said.
Boeing Australia president Ian Thomas denied claims that the Victorian Government had offered incentives for the company to move its Sydney operations.
“This is in fact a business decision that we’ve made,” Mr Thomas said.
Asked about the reaction from the two state governments, he said: “As you can imagine one was pretty excited and one was fairly disappointed.”
It is a disappointment that was shared by the distressed employees yesterday.
“I can’t go to Melbourne. It just doesn’t suit me,” said employee of 12 years Alex Ledwolorz. “I have a family here. I have children and grandchildren here. I don’t want to move.”
The Australian Manufacturing Workers Union believes the blame for Boeing’s decision to move to Melbourne should be laid at the feet of an inattentive government, which was only made aware of the factory’s plight 10 hours before the workers themselves.
“The loss of Boeing to NSW is not just the closure of one site, it is a massive loss to the entire aerospace industry in this state,” its secretary Tim Ayres said.
Reason #2: EXCLUSIVE by John Rolfe
KRISTINA Keneally needlessly bought a city office building using nearly $25 million of your money, then spent even more taxpayer dollars turning it into a white elephant.
For any voter considering giving the Government yet another chance after the ascension of its latest Premier, the tale of 30 Clarence St is reason to think again.
This drab 11-storey tower was bought to make way for the Sydney Metro. But the sale came well after it was clear the project was doomed.
An investigation by The Daily Telegraph has revealed the transfer occurred on January 21, even though the sale document was marked “DO NOT DATE”.
Well-founded speculation about the Metro’s axing emerged on December 6 in the aftermath of Mrs Keneally’s elevation.
It can also be revealed the Department of Transport and Infrastructure was still offering tenants six-figure sums to vacate – according to emails seen by The Daily Telegraph – right up until Mrs Keneally finally confirmed the project was off the rails on February 21.
Well before this date it would have been widely known within Government that acquired buildings, such as 30 Clarence St, would need to remain occupied if they were not to become an even greater drain on the public purse. However, heaping incompetence on incompetence, the Government kept on doling out cheques with the direct effect of reducing its own rental revenues.
One tenant told 2GB’s Ray Hadley program of receiving nearly $300,000; another told The Daily Telegraph of being paid close to $200,000. A third is believed to have retired on the Government’s largesse.
A fourth tenant, who is about to receive nearly $20,000 compensation, said: “This Government couldn’t run a bath.” Another, who is leaving, said: “It was a good deal for us, but as a taxpayer I’m appalled. If I ran my business the way they do I’d be sacked.”
Using your money, the state now has in its possession a half-empty, 25-year-old lemon.
A sixth tenant, who remains in the building, said: “We don’t know what’s going on. In the meantime we are paying premium rent for a building that isn’t being cleaned properly.”
The Daily Telegraph asked the Government what its plans for 30 Clarence St were.
“It is expected the Government will retain ownership of 30 Clarence St, with the building to be leased at market rates,” a spokesman said. The Government would not comment on the rental income it receives for its $24.495 million.
The known wastage on the Metro is now $330 million. Expect this figure to rise.