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Cadbury cans grant application, new visitor centre development

Cadbury has withdrawn its application for a controversial $16 million grant, which would have been spent on the Chocolate World visitor centre at Hobart.

The chocolate maker, owned by Mondelez International, said it was unable to meet the conditions attached to the grant by the federal government. These included that production at the site be increased by 20 per cent to 70,000 tonnes a year.

The ABC and others report that, after 18 months, Mondelez didn’t meet the grant criteria.

"Specifically what we couldn't satisfy was the requirement that we were able to sign up to significantly increasing volumes through our plant here in Claremont,” Mondelez’s managing director for Australia and New Zealand, told reporters.

"That was dependent on us accessing some substantial new export volume orders.

"We don't have those orders today and therefore it wasn't possible for us to sign up to the grant criteria."

Banfield said this was not something the business could afford, and it would instead be investing $20 million in upgrading the factory.

Last month she cited “unprecedented” recent cost pressures in a decision to reduce the size of family-sized chocolate blocks from 220 to 200 grams.

The $16 million federal grant was made by then-opposition leader Tony Abbott during the 2013 election campaign. The co-investment in a visitor centre – claimed to be something that would create 300 new jobs – required Cadbury to spend $50 million of its own money.

The pledge, which some have described as pork barrelling the seat of Denison (held by independent Andrew Wilkie), was criticised after the federal government refused to co-invest in SPC Ardmona’s Shepparton site early last year.

Fairfax notes that the grant announcement was claimed by prime minister Tony Abbott to be supported by a strong business case. The opposition revealed last year, via a Freedom of Information request, that a formal business case had never been made by Cadbury.

Tasmian Liberal Senator Eric Abetz said the $16 million would be spent within the state, but did not give details.

The news was welcomed by Tasmanian Premier Will Hodgmann.

"(We) will now work closely with the Commonwealth to ensure that this money is invested in productive infrastructure and job-creating opportunities," The West Australian reports him as saying.

 

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