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$5m big Maca upgrade

Opening the upgrade of the Macadamia Processing Co's plant were operations manager Larry McHugh, chairman Robert Mosse, general manager Bryan Raphael and sales manager Steve Dubber.

The first stage of a two-stage $5 million upgrade to the Macadamia Processing Company Limited's processing facility at Alphadale was opened last Friday.

The first stage includes the establishment of a temperature-controlled 1500 tonne capacity warehouse, which trebles the storage capacity to 2100 tonnes. The upgrade also includes a 50 per cent increase in the facility's cracking capacity and improvements to the factory including the installation of state-of-the-art sorting, handling and packaging equipment and associated infrastructure.

The nuts were previously transported to Brisbane for sorting. MPC's sales and marketing manager, Steve Dubber, said the new facility cuts out extensive travel and inventory management costs.

"We've been established since 1983 and have grown to become the largest bulk processor of macadamias in the world, so the upgrade will allow us to expand our capacity and deal with demand," Steve said.

"With the new grading and sorting facility we can, for example, supply nuts of a certain size and/or colour nut or one bag of whole kernels and one bag of half kernels. We can be flexible and adapt to different customer's specifications. It's maintaining the quality and integrity of the product - so it comes from the grower straight to here and then leaves here ready for the customer."

Company chairman Robert Mosse said the upgrade was a "major milestone" for MPC and would "improve working conditions, yield lower costs of production and better returns to shareholders".

The second stage of the upgrade, which includes a number of "value adding" improvements plus a further 50 per cent increase in cracking capacity, roasting and dicing facilities and specialty packaging, is expected to begin by December this year.

Story & photo: Terra Sword

Council Asked to 'Please Explain'

Mayor seeks way round 'unlawful' plans

A senior official from the NSW Department of Local Government (DLG) plans to visit Lismore mayor Bob Gates to discuss a range of complaints about the behaviour of Lismore councillors.

Director General Garry Payne has written to Council's general manager Ken Gainger saying that over the last few weeks his department has received "a number of letters" about the council.

"The basis of the letters covers a range of issues including the extent to which elected members of Council might be engaged in the day-to-day management of the Council, the nature of Council decision making, a number of issues related to the swimming pool proposal in Lismore and lastly the use of rescission motions," Mr Payne wrote.

The Echo understands that the letters are critical of the councillors and not staff. It's also believed that in one incident a councillor was soliciting staff to complain about another member of staff.

Mr Payne's letter said it would be "appropriate" for the deputy director general to meet with the general manager and Cr Gates to "discuss" the issues.

The move comes as the mayor, backed by a number of councillors, attempts to exert control over the hiring and firing of council staff in a manner described as "unlawful" by solicitors Phillips Fox.

The mayor is seeking to control staffing - the role of the general manager - during the final year of Mr Gainger's term in the job.

Phillips Fox advised the motion would breach the 1993 Local Government Act and said the mayor, as chairperson, would need to rule the motion out of order. But Tuesday night's council meeting to approve the 2001-02 budget degenerated into farce as Crs Merv King and Brian Suffolk moved to seek advice from the DLG on whether the motion is unlawful.

While councillors argued over whether the motion was a waste of time, Mr Gainger cleared the air by explaining "it is not unlawful to seek advice on an unlawful motion".

If the DLG said no, Cr Gates wanted to know how to word it to make it lawful and "achieve Council's objective of exercising control over the budget".

What sort of control is unclear, since staffing is less than 30 per cent of the budget expenditure at around $13.5 million. Council already has the power to limit total budgets as well as setting the agenda on spending for projects like the pool redevelopment - councillors committed $2.5 million in this budget.

But what is crystal clear is the mayor's antipathy towards Mr Gainger. The mayor appeared confused on Tuesday night, speculating that council "may not seek to renew" Mr Gainger's contract. The general manager had already indicated he would leave when his term expires in 2002 and three years ago, had his contract written with no option but to depart.

It leaves council observers to speculate that this latest move by Cr Gates is a clumsy attempt to limit the general manager's powers and set council up for a 'clearing of the decks' exercise when the new GM is appointed.

The mayor's plan demanded that no salaried staff should be employed in the next 12 months without Council approval. It singles out one position, Manager of Business Development, seeking to defer the appointment for a year.

And in a move that threatened to devastate staff morale, Cr Gates wanted current staff with contracts due for renewal in the next 12 months to have them extended rather than renewed.

Cr Gates claims he is concerned about the potential escalating costs arising from current Award negotiations for staff, and wants to know the level of decision making about staff he can be involved in as mayor.

But the 1993 Local Government Act is clear. The role of elected representatives is to set a policy framework for management to implement.

The General Manager pleaded with councillors to do just that.

"If Council wants to see a reduction in services or positions tell me where... you should not be picking on specific positions... you have the power to make that decision in the adoption of the Budget Plan," Mr Gainger said.

"Let me get on with the job."

Mr Gainger said that council staff levels had reduced from 300 to 280 people in the past three years, despite having to cope with increased responsibilities. "There's also been a significant increase in outside staff and a corresponding reduction in indoor staff - despite perceptions to the opposite," he said.

Incredibly after a three month budget process that included public consultation, some councillors began to complain about a lack of input and called for a budget review.

During Tuesday's Council meeting, it also emerged that Cr Gates had written to Phillips Fox disputing their legal opinion and seeking different advice, despite the fact that he should not do so without a specific direction from council.

A chastened mayor said "I understand my responsibilities now".

In the end, it was the absence of the mayor's loyal foot soldier, Cr John Hampton, which sunk his grand plan. The motion seeking advice from the Dept of Local Government was defeated 5/6 (CRS Roberts, Irwin, Tomlinson, Crowther, Sweintek & Gallen against).

Instead council resolved to set up a forum to meet with the General Manage to "discuss and review how to reduce the expenditure of Council".

After that, they approved the budget, having changed to only slightly - to spend more money on Crozier Oval and the flood levee scheme thanks to a $151,00 windfall from the Grants Commission.

Rates will increase 4.57 per cent. The budget surplus is $30,000.

Simon Thomsen