(Discussion paper — November 2017)
At a Bass Coast Shire June 2017 Ordinary Council Meeting, a proposal by a consulting firm from Brisbane, Queensland called ‘EarthCheck’ was accepted. The company was awarded the contract to develop yet another feasibility study into the viability of a Cowes to Stony Point vehicle ferry.
Instead of being deemed a ‘feasibility study’ the project was called a ‘Business Case’ project. We provide some background on ‘EarthCheck Pty Ltd’.
‘EarthCheck’ also known as ‘EC3 Global’ is better known for its environmental and scientific benchmarking products and services primarily for the tourism sector. EarthCheck (EC3 Global) products were originally the Australian Government Sustainable Tourism Co-operative Research Centre (STCRC), which shut down in 2010.
EarthCheck was established to commercialise the environmental and scientific benchmarking products and services developed through the research centre and this was funded by the Australian federal government.
EarthCheck is wholly owned by Earthcheck Management Pty Ltd a holding company that has four shareholders, a major one being Mr Mark Olsen. (sourced from ASIC records)
Mark Olsen is also a Director of EarthCheck Pty Ltd and is promoted on the EarthCheck website as being the General Manager of Consulting. (sourced from ASIC records and EarthCheck website)
Aside from their environmental and scientific benchmarking products, they offer a consulting service. This appears to be under the management of Mark Olsen.
In 2016, EarthCheck Pty Ltd was commissioned to produce a document called ‘Phillip Island and San Remo Visitor Economy Strategy 2035’ on behalf of Bass Coat Shire Council.
We have to assume that Mark Olsen had a role in this project.
This document makes mention of the vehicle ferry extensively. This is most notable on page 35, as well as extensively in the ‘Phillip Island and San Remo Visitor Economy Strategy 2035 – Technical Appendices’ document.
Considering their past experience and having the perception that EarthCheck has strong local, state and federal government ties, it was not hard to understand that EarthCheck would have been assumed to be the best placed organisation to be awarded the feasibility study into the viability of a Cowes to Stony Point vehicle ferry.
In most communications between the Bass Coast Shire councillors and with Mr Peter Francis (project manager for the ferry feasibility study project) it is evident that Mark Olsen is considered the key person in the development of the feasibility study or ‘Business Case’.
When requesting information about the feasibility study or ‘Business Case’ project, are often referred to, or passed on to Mark Olsen.
In his communication with us Mart Olsen has mentioned that he had assembled a group of ‘experts’ or sub-consultants to assist EarthCheck in achieving their commitments relating to the development of the feasibility study or ‘Business Case’ contract.
In an article published by the Mornington Peninsula ‘The News’, the Mayor of the Mornington Peninsula is being quoted as saying:
“The Victorian government, in partnership with Bass Coast and Mornington Peninsula Shire Councils, has appointed a team of transport and business case development professionals to work through the process with our communities and stakeholders to understand the feasibility and impact of this project, and the opportunities it could create.”
Published by the Mornington Peninsula ‘The News’, quoting the Mayor of the Mornington Peninsula
Questions therefore arise as to what the Mayor from the Mornington Peninsula Shire has said in this article.
Firstly, we are to believe that it was the Bass Coast Shire Council that appointed the ‘team of transport and business case development professionals’, only adding to the assumption that this whole project is an initiative of the State of Victoria Government.
Secondly, there was only one organisation appointed, being EarthCheck Pty Ltd; or at least this is what we are led to believe.
We can only assume that the Mayor from the Mornington Peninsula Shire is misinformed or simply uninformed.
An email was received from Mark Olsen and it said:
The project team members are experts in their respective fields drawn from Melbourne, Gippsland, Brisbane, and Wellington (NZ). We don’t have a consulting team member in each location but work on a daily basis with the Council staff in both locations.
Our Ferry Operations Specialist is Jeremy Ward from East West Ferries and TRC. Our demand economist is Michael Connell (MCa).
The Steering Committee is made up of agencies across the State Government, local tourism representatives and both Councils. The consulting team report to, and are therefore not on, the Steering Committee.
The Steering Committee sign off on all publications developed by the project team.
Cheers
Mark Olsen
Email dated January 11, 2018
EarthCheck
This email instigated an investigation into TRC Tourism, Michael Connell Consulting (MCa) and Jeremy Ward , if only because Mark Olsen from EarthCheck (the lead consultant) introduced those consultants as being ‘experts’ in their field and part of the EarthCheck project team.
At this point we would like to make the point that if EarthCheck was deemed to be the best organisation to manage the development of the feasibility study into the viability of a Cowes to Stony Point vehicle ferry, then it would have been assumed that EarthCheck would have ‘in house’ consulting capabilities without the need of recruiting external ‘experts’.
Or, the Bass Coast Shire Council was well aware that EarthCheck was going to satisfy the contractual conditions, using external resources and sub-consultants. This we do not know.
TRC Tourism Pty Ltd advertises as having three offices; Jindabyne NSW, Canberra ACT and Wellington New Zealand.
It is a small business based in Jindabyne NSW and its principal owner is Janet Mackay based in Jindabyne NSW. (Sourced from ASIC records) (ASIC records available on request).
There are records of past shareholders that were from New Zealand, suggesting that TRC Tourism Pty Ltd still has ties to New Zealand connections, hence the office in New Zealand. (Sourced from ASIC records) (ASIC records available on request).
The exact role that TRC Tourism Pty Ltd has in the feasibility study into the viability of a Cowes to Stony Point vehicle ferry is somewhat unclear, however they were seemingly heavily involved in the creation of the document ‘Phillip Island and San Remo Visitor Economy Strategy 2035’; a precursor to the current feasibility study project’s ‘Discussion Paper’.
There is no mention of Janet Mackay (the principal owner of TRC) nor does her name appear in any documents, or communications relating to the feasibility study into the viability of a Cowes to Stony Point vehicle ferry.
So we cannot actually determine what role development of the feasibility study, ‘Phillip Island and San Remo Visitor Economy Strategy 2035’ and confirmed as an ‘expert consultant’ by Mark Olsen of EarthCheck; lead consultant to the current feasibility study into the viability of a Cowes to Stony Point vehicle ferry.
However, further investigations have revealed that Mr. Michael Connell, who has been mentioned by Mark Olsen as one of EarthCheck’s expert sub-consultants has close ties with TRC Tourism Pty Ltd.
On TRC’s website Michael Connell is described as a TRC ‘Specialist Partner’ and then later as an ‘Associate of TRC’. (TRC website)
From our ASIC reseach, we do know that Michael Connell has no ownership of the TRC business. (ASIC records available on request).
Michael Connell is the principal owner of a business called ‘Michael Connell and Associates’ and according to ASIC records is based in Surrey Hills, Victoria. (ASIC records available on request).
It must be noted that ‘Michael Connell and Associates’ goes by the acronym ‘MCa’.
This is very important to note, because in the ‘Discussion Paper’ released by EarthCheck in November 2017, it references on numerous occasions, statistical and financial modelling assumptions by MCa which is in fact ‘Michael Connell and Associates’ which have been unfortunately very inaccurate and in some cases misleading.
Another ‘expert’ mentioned by Mark Olsen from EarthCheck as part of his project team is a gentleman named Jeremy Ward.
He has been labelled as the EarthCheck’s ‘ferry expert’.
Jeremy Ward has a seemingly successful business in Wellington, New Zealand called ‘East by West Ferries’. The business runs a few passenger ferries as well as some tour boats in Wellington, New Zealand.
We cannot determine what role Jeremy Ward plays in the feasibility study into the viability of a Cowes to Stony Point vehicle ferry as part of the EarthCheck team.
We fail to understand why EarthCheck did not access far more experienced local ferry operators, of both passenger and vehicle ferries in Victoria and other parts of Australia.
However, we would assume that the ‘steering committee’ would have been happy with Jeremy Ward’s involvement.
However, not mentioned in the recently released ‘Discussion Paper’ that EarthCheck have published is the heavy weight consulting firm of AECOM, who are reported to be involved in the feasibility study into the viability of a Cowes to Stony Point vehicle ferry.
AECOM is a very large international consulting and engineering firm that has an established base in Melbourne, Victoria.
It is important to point out that AECOM’s experience with the Cowes to Stony Point Ferry concept goes back to a feasibility study they participated in with Maunsell and Deloitte in 2008.
They are very involved with the Victorian Government in countless projects, including the multi- million dollar Phillip Island Penguin Parade infrastructure expansion.
It has been confirmed that two AECOM senior consultants have been involved with the Bass Coast Shire on a regular basis.
The two senior consultants from AECOM are Anthony King and Andrew MacArthur. Anthony King’s role with AECOM is the Manager of Advisory Projects for Victorian State Government.
Andrew MacArthur is a Technical Director of Ports and Marine for AECOM.
What is not clear is how they actual fit into the EarthCheck ‘feasibility study’ project and team and if they do, then what role does AECOM play?
At this point we have received mixed messages from Mark Olsen as to how AECOM fits into the feasibility study into the viability of a Cowes to Stony Point vehicle ferry (or Business Case Project).
The best explanation we managed to receive was an email from 16 January 2018 from Mark Olsen which stated:
Dear [redacted]
Many large projects are managed this way. EarthCheck is the lead contractor and we have partnered with AECOM and TRC Tourism as a team with a mix of skills. AECOM have a particular skill and experience in preparing the Business Case documentation.
Cheers
Mark Olsen
Email dated January 16, 2018
EarthCheck
Based on the enormous resources and expertise and past experience of AECOM with the Cowes to Stony Point Ferry concept, we fail to understand why EarthCheck was engaged in the first place.
Although this seems a digression from the topic of this article, we feel it important to mention a concept called ‘Global Sustainable Tourism Council (GSTC) Certification’.
We will not go into much detail as to what ‘GSTC Certification’ is all about except to say, that it is a recognised international standard and accreditation that is actively sought by local and international tourist destinations. (More information).
The Bass Coast Shire Council is seeking to have Phillip Island certified under the ‘international standard and accreditation of the Global Sustainable Tourism Council‘.
This was confirmed by Peter Francis, Manager of Economic Development & Tourism of Bass Coast Shire by email on 15 January 2018 and shown below:
Hi [redacted] – obtaining GSTC certification was an action listed in the Phillip Island and San Remo Visitor Economy Strategy 2035 adopted by Council in August 2016 (game changer 1) Council is working towards achieving GSTC certification in the near future. Cheers
Peter Francis
Email dated January 15, 2018
manager, economic development and tourism
The document that Peter Francis is referring to (Phillip Island and San Remo Visitor Economy Strategy 2035) mentions ‘GTSC Certification’ countless times and in a way that is perceived as a high priority for Phillip Island.
At this point, we need to remind you that ‘EarthCheck’ was engaged and paid to produce the Phillip Island and San Remo Visitor Economy Strategy 2035 document.
In fact, at a Bass Coast Shire Council meeting held on 17 August 2016, the Council unanimously voted to adopt the recommendations as outlined in the Phillip Island and San Remo Visitor Economy Strategy 2035, which is the document relating to achievement of GTSC Certification for Phillip Island.
To advance the GSTC project the Council established a ‘Community Tourism Reference Group’ sometime early in 2017, headed up by Cr. Whelan.
The achievement of GSTC certification could be considered an admirable goal, however it is not cheap.
There are consulting fees, assessment fees and ongoing auditing fees that sums up to being a very substantial investment.
We are not suggesting in any way that the Bass Coast Shire Council not seek ‘GSTC Certification’ for Phillip Island.
The ‘Global Sustainable Tourism Council’ as an organisation, does not provide certification services. Instead they accredit various organisations around the world to do so on their behalf.
What we need to point out is that the only certifying organisation that has been accredited by the ‘Global Sustainable Tourism Council’ to certify tourist destinations (such as Phillip Island) is EarthCheck.
So here we have EarthCheck being paid substantially to produce a detailed document for the Bass Coast Shire which actually promotes a product and service only EarthCheck can provide.
In other words, EarthCheck has been paid in part to promote EarthCheck’s own products and services.