Gillman: Renewal SA board to be grilled
A Parliamentary inquiry into the controversial $100 million Gillman land deal will call current and former members of the Renewal SA board to give evidence.
More than half of Renewal SA’s board resigned in the wake of the State Government’s decision to strike the deal over 400 hectares of government land without going to open tender.
The deal was struck directly with the consortium Adelaide Capital Partners after it had approached the Premier Jay Weatherill via the Economic Development Board. The move angered a number of other potential bidders for the site. The Government has repeatedly claimed the ACP offer was the best and only commercial proposal for the site and that going to tender would have jeopardised the deal.
Xenophon group aligned Upper House member John Darley, a former Valuer-General, will establish the inquiry this afternoon with the support of the Liberal Party.
He confirmed today that the inquiry would call current and former members of the Renewal SA board to give evidence about their view of the land deal and the processes followed.
Weatherill today pleaded for the committee to be careful not to jeopardise the deal with ACP.
“The only thing I would caution any members of parliament choosing to participate in such a committee is that there has been no concluded contract in relation to the Gillman sale; it’s only a question of investigation of an option to purchase,” he said.
“They should be careful to conduct themselves in a fashion that doesn’t scare off the international investors that are necessary to make that deal a reality.
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“I would ask them to take great care in their deliberations.”
He said the Government had “nothing to fear” from the inquiry, and the committee might get some surprises when they call witnesses.
As InDaily revealed in a series of exclusive reports this year, Renewal SA had prepared advice to the Government rejecting the deal, due to transparency and probity risks. The advice also raised concerns that the land was being sold too cheaply. The board later rubber-stamped the deal – but only in terms that the proposal “meets with the Government’s strategic economic development objectives”.
Darley said today that the inquiry would examine whether the taxpayers got the best price for the land.
“It will look into the price and the process,” he said. “This is taxpayers’ land, and if someone sold my property at less than market value I wouldn’t be too pleased. Taxpayers need to understand how the $100 million price was arrived at.”
InDaily has been told that board members raised concerns about the sale process directly with then Housing and Urban Development Minister Tom Koutsantonis at a board meeting in November last year.
Go here for our account of which board members were involved in the decision-making process and which members resigned.
Darley said he had written to Weatherill in February about his concerns, but he had “not even received an acknowledgment”.
“The Premier needs to appreciate the enormous concerns of the community, and especially the business community, over this deal,” he said.
“A select committee of inquiry will enable the Parliament to forensically examine details of the deal struck between the Government and ACP, the conduct of the Government and whether or not South Australian taxpayers got bang for their buck.”
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Darley’s proposed terms of reference for the inquiry are below:
Move that a Select Committee of the Legislative Council be established to inquire into and report on Almost immediately after the agreement had been reached, half of Renewal SA’s board members tendered their resignations. the sale of State Government owned land at Gillman, with reference to:
1. the State Government’s holding of State Government owned land at Gillman over time and the events that led to an agreement between the State Government and Adelaide Capital Partners in relation to State Government owned land at Gillman;
2. the conduct, including public statements, of the State Government in respect of the agreement, and the decision not to offer the land for sale by open tender;
3. the interaction between the State Government, including the Economic Development Board, and Renewal SA, and parties who identified an interest in land at Gillman;
4. the involvement of lobbyists and other third parties in negotiations between the State Government and Adelaide Capital Partners;
5. the role of Renewal SA, including Renewal SA Board members, in the sale of land at Gillman;
6. the role of Renewal SA and other parties in the development of the ‘Gillman Master Plan’;
7. the State Government valuation process regarding the subject land;
8. infrastructure planning undertaken by the State Government to support development at Gillman and surrounding areas;
9. the sale of other State Government owned land at Gillman over the past 12 years;
10. State Government policies and guidelines;
11. principles of good public sector practice; and
12. any other relevant matters.
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