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Legislative Assembly for the ACT: 2003 Week 6 Hansard (19 June) . . Page.. 2128 ..
MR STANHOPE (continuing):
Fujitsu deal. It's a ripper. What did the Auditor-General's report-tabled by you, Mr Speaker, earlier this week-reveal?
It reveals a 1996 deal negotiated by the then Chief Minister-the late and long-lamented Chief Minister, Mrs Carnell. A deal was negotiated exclusively by Mrs Carnell, it seems, and the then Under Treasurer, Mr Mick Lilley. There is only one document in existence in relation to the deal for the lease of FAI House, so we are not entirely sure who was involved. That one document is from FAI to the then Under Treasurer.
It is intriguing. We have a major building here in the ACT which houses much of the ACT public service, the leasing of which, or the rental of which, was arrived at not even through the exchange of documents. Documents were never exchanged-there was just one piece of paper. There is one piece of paper in existence and that is from FAI to the then Under Treasurer basically saying, "Yes, no worries. We're happy to cop a 10-year lease from you on FAI House at an agreed rent of $340 a square metre, et cetera. Please get your property manager to contact ours and we will sign off on it."That is 10 years at $340 a square metre-no worries. "Get your bloke to speak to our bloke, and we'll sign on the dotted line."
Then what do we find in relation to the negotiations? What do we find when we reflect back and look at this particular deal-this 10-year deal at $340 a square metre? We find there is one piece of paper in existence-one document on the file from FAI to Mr Mick Lilley. "Please get your bloke to contact our bloke. We're happy for you to pay us $340 a square metre."
There is another interesting clause in the contract, when it was finally signed off. It is called a ratchet clause. It says that, "No matter what happens, we would like a review every two years, but the rent is never to drop below $340 a square metre."
MR SPEAKER
: Order!MR STANHOPE
: The amount of $340 a square metre, on any analysis of the market of the day, is at least $50 a square metre above market rate.MR SPEAKER
: Order, Chief Minister!MR STANHOPE
: That translates into $260,000 a year above market rate. If you multiply $260,000 a year by 10, that is $2.6 million.MR SPEAKER
: Order! Chief Minister, the question is, in fact, out of order because it refers to proceedings in committee not reported to the Assembly. The Auditor-General's report is automatically referred to the Public Accounts Committee.Mr Smyth
: Thank you for the entertainment!MR STANHOPE
: There is more entertainment to come, when we get to the comparisons between the rent and-I urge all members to look at it-the sponsorship of the rally which followed two weeks later.MR SPEAKER
: Order! Resume your seat.
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