Business
9 October, 2024
It’s just not right: state slammed for funding rival laundry start-up
A local business is angry that a an out-of-town company has won a government grant to build a rival operation.
Mount Isa mum Verity Sweeney says she was flabbergasted to find out that the state government was actively funding a rival business to her commercial laundry operation.
Ms Sweeney, who has spent more than $1 million establishing her business out of Miles Street, said she couldn’t understand why the state government had allocated a portion of the $20 million Mount Isa Transition Fund to a non-local company so it could create a business that would be in direct competition to hers.
“I was gutted,” she told North West Weekly after finding out the government’s funding allocation.
“I have never been one to take free money. I had the dream, I wanted to provide it, so I built it.”
Ms Sweeney is one of Mount Isa’s great success stories.
In 2016 she was a sole trader, cleaning domestic homes.
Today, she has a commercial laundry that services most of the major accommodation providers in Mount Isa, employing up to 30 people are any given time.
“So far, it’s all been my risk; it’s my money, my family,” she said.
“As a single mother, it’s a big investment but I’m a local.
“I love Mount Isa and I love supporting the community.
“I’ve always found that if you’re good to Mount Isa, Mount Isa will be good to you.”
Ms Sweeney said she found out about the state government’s grant from another business operator in town.
North West Weekly attempted to get the details of the grant application, but the request was denied by the Department of State Development and Infrastructure.
The government wouldn’t reveal how much the grant was for, or if it would be subject to checks and balances regarding the potential to compete with an existing company.
What is known is that NW Commercial Laundry Pty Ltd was one of 10 successful applicants under the $20 million Mount Isa Transition Fund.
The Department’s website says the undisclosed amount of money would be for an “all-electric commercial laundry to service mines, restaurants and other industries in the Mount Isa region and surrounds”.
The grant money would allow NW Commercial Laundry Pty Ltd to purchase a site and construct an all-electric commercial laundry.
However, an investigation by North West Weekly can reveal that NW Commercial Laundry exists only on paper.
According to documents obtained through the Australian Securities & Investments Commission (ASIC), the entity was first registered in July 2022.
NW Commercial Laundry’s registered address is in Fortitude Valley in Brisbane, while its official principal place of business is in Emerald.
North West Weekly understands that Neale Parry is the owner of NW Commercial Laundry and also owns CQ Commercial Laundry in Emerald, which operates out of the same address as NW Commercial Laundry’s listed principal place of business.
North West Weekly does not suggest any wrongdoing by Mr Parry, who appears to have applied for a government grant through the correct channels.
However, the Department of State Development and Infrastructure and Minister Grace Grace have so far failed to explain their position.
In a statement to North West Weekly, a department spokesperson said: “Successful applicants were chosen through a robust assessment process based on an alignment with the program objectives and assessment criteria outlined in the applicant guidelines.
“The contracting process will ensure that each of our proponents are held to account and benefits are delivered.”
Mount Isa-based Member for Traeger Robbie Katter said the response was inadequate and that he was furious the state government had spent taxpayer money to fund a start-up that would compete with a locally-owned business.
“It knocked me for six,” he said after being informed of Ms Sweeney’s plight.
“I immediately contacted the government to identify the problem and say that you’re funding something that appears to be going into direct competition with an existing operator who’s just spent money to expand their operation.
“And that’s a locally-owned business where as I understand it the other one’s from out of town, which would seem to be against the spirit of that funding in the first place.
“It was a shock to me that they were using money that was supposed to help the town, to fund an out-of-town business to compete against an existing business that had just spent money expanding, doing up a building to do exactly the same thing.”
Mr Katter says he wasn’t satisfied with the response he received and that he would be pushing for the grant money to be reviewed once the next government was sworn in.
The Traeger MP said the Department would have the ability to withdraw the funding if it saw fit.
“It just seems like this $20 million fund has been rushed through because there was an election coming up and they had to make an announcement," he said.
“We got hit with it in the last sitting week of Parliament and that was the end of it because there was no chance to get community feedback before the government went into caretaker mode.”
Ms Sweeney said she hoped the government would reverse its decision.
“Please reconsider. Do your due diligence and find out if this is something the community needs,” she said.
“It seems like they didn’t do their homework to see what businesses were already operating in Mount Isa.
“There is also a commercial laundry in Cloncurry, too.
“I feel that because it's an election year they’re just making all these grand announcements without looking into whether it’s required.
“At the end of the day, it’s our money. It’s taxpayer money.”
Ms Sweeney, who operates Sweeney Contracting Services out of 26 Miles Street, said she paid $650,000 to purchase the building and had invested $400,000 on new equipment, including $150,000 on a new public laundromat, which is now open 24/7 for those who apply for after-hours access.
