GREEN & MEAN
TWEED Shire Council is blacklisting contractors linked to the controversial Adani coal mine 1200km away in central Queensland.
But there are concerns the move could backfire and allow contractors putting in tenders for future projects to sue if they miss out.
TWEED Shire Council is trying to blacklist contractors linked to a controversial coal mine project proposed by Indian energy company Adani more than 1200km away in central Queensland.
But there are concerns within the council’s ranks that the move could backfire, lead to litigation and cause a construction headache as the shire seeks to build a new dam to head off long-term water supply shortages.
Council officers, who were directed to come up with a strategy that would force contractors bidding for Tweed projects to disclose involvement in Adani’s Carmichael mine in the Galilee Basin, warn it would be difficult to enforce, could damage the council reputation, foster a culture of companies not telling the truth, and could expose the council to legal action.
A 4-3 vote in October, won by council’s green bloc led by Mayor Katie Milne, resolved to establish an anti-mine policy and to write to Prime Minister Malcolm Turnbull and Queensland Premier Annastacia Palaszczuk outlining concerns about the project and its possible environmental impacts.
Officers will report back to councillors tomorrow, warning the policy is problematic.
Cr Milne told the Bulletin last night: “The management report states that we can legally exclude tenders if they are associated with the Adani mine as long as we don’t include such a provision in the eventuating contract for the successful tenderer. That means we couldn’t terminate a contract under these grounds if they lied, but we could provide that we never engage with such a contractor again.’’
Cr Milne said the report suggested there may be a risk of reduction in the pool of contractors, potentially less competitive prices, and a risk to the council’s reputation with tenderers due to concerns such as impartiality.
“These concerns seem petty in light of what we are facing with climate change,’’ she said.
Policy supporter Cr Chris Cherry said it was about making a stand.
“It’s about saying the Adani mine is not OK in any way, it’s not what the public want, it’s not in the public interest, we don’t support it and (council is) a public body so we should be representing that,’’ Cr Cherry said.
But Cr Pryce Allsop said what happened in central Queensland had nothing to do with Tweed Shire.
“It’s not my region, the Adani mine, and I’d rather keep out of it,” said Cr Allsop.
“If I wanted to be a protester I’d be a protester and I didn’t get into Tweed Shire Council to be a protester.”
Cr Warren Polglase said the council would “get done like a dinner” if it was taken to court by companies refused tenders because of links to Adani.
Population growth is putting the shire’s water supply under pressure. The shire decided in 2015 to raise the wall on the Clarrie Hall Dam, although the Mayor recently called for a review of that decision.
Cr Polglase said under the policy, potential tenderers for the dam work might be excluded. “We could be challenged in the courts – and we’d get done like a dinner,’’ he said.
PRINCIPLES are fine, but where is the logic in a council painting itself into an ideological corner?
Tweed Mayor Katie Milne decided recently to review a decision in 2015 to double the capacity of the Clarrie Hall Dam.
She is pushing a green agenda that ignores the real impact of the Tweed’s soaring population and promotes alternatives such as recycling water instead of raising the dam wall.
Now the council is buying into the Adani mine project controversy, wanting to make a stand by banning contractors linked to it.
Those companies would be likely competitors for the dam work she now wishes to block, and also for road projects. Where is the sense in that?
It might suit the green cause, but disqualifying companies from submitting tenders means less competition.
It also means the most competitive submissions could be lost before the process even starts.
That can only lead to an impact on ratepayers, either through the quality of the work or the costs to the shire.