Ministerial Statement

Gillman Land Sale

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Justice Reform, Minister for Planning, Minister for Housing and Urban Development, Minister for Industrial Relations, Minister for Child Protection Reform) (15:54): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.R. RAU: For the past three decades, successive state governments have regarded the largely vacant and unused land at Gillman as ideal for future urban and industrial development. It has the potential to create jobs for South Australians. This is reflected in the 30-Year Plan for Greater Adelaide, which identifies Gillman as a 'key industry area', albeit presently constrained by zoning, infrastructure and environmental issues.

Proposals to develop the Gillman land in the past have relied on the state government committing to spend taxpayers' funds in one of two ways: either facilitating private sector investment by funding infrastructure improvements or subdividing part of the Gillman land into allotments that would be suitable for a particular business to purchase. Both options were highly speculative with no guarantee that the state would recoup any investment. In the latter case, the piecemeal sale of the land may also comprise the prospect of any larger vision for the precinct.

In June 2013, after having first approached the Economic Development Board, Adelaide Capital Partners wrote to the Premier with a unique concept to develop over 400 hectares of the Gillman land to support economic development and jobs growth, including use as an oil and gas servicing hub. Faced with a proposal with the potential to create thousands of jobs, the government decided to enter into exclusive negotiations with ACP without a tender process. In its approach to the government, ACP stated the following:

In discussions with our funding advisors and potential funding partners it has been specifically stated to us that international investors will not participate in a generic tender process without the required certainty of being able to proceed if the planning process is successful.

In other words, the most likely way to secure the employment prospects outlined in the ACP proposal was to progress negotiations in the manner in which we did.

The government maintains the view that the deal with ACP represents value for South Australia. Although the process under which the transaction was approved has been criticised, there is no evidence that the state would have received a higher price for the land by going to tender.

Members interjecting:

The SPEAKER: The deputy leader is called to order.

The Hon. J.R. RAU: I will say that again. There is no evidence that the state would have received a higher price for the land by going to tender. Indeed, the Auditor-General—

Mr Tarzia: What did the court say about it?

The SPEAKER: The member for Hartley is the first person in this session warned.

The Hon. J.R. RAU: It is sad: he is starting this year as he wishes to continue. Indeed, the Auditor-General in his most recent report states that a subsequent valuation of the land at 2013 values remained consistent with the valuation used by Renewal SA. Put simply, $30 per square metre—

Members interjecting:

The SPEAKER: The leader is called to order. The deputy leader is warned for the fist time and will apologise.

Ms CHAPMAN: I apologise.

The SPEAKER: Do you know what you are apologising for?

Members interjecting:

The SPEAKER: You will withdraw the term and apologise to the house.

Ms CHAPMAN: Sorry, sir, I understood your instruction was that I am to apologise. I have apologised. Now you want me to withdraw and apologise?

The SPEAKER: Yes.

Ms CHAPMAN: I withdraw and apologise.

The SPEAKER: Is that what you are doing?

Ms CHAPMAN: Yes.

The SPEAKER: Splendid. Deputy Premier.

The Hon. J.R. RAU: I think that is what they call in Latin 'insultus interruptus'. Anyway, the Auditor-General in his most recent report states that a subsequent valuation of the land at 2013 values remained consistent with the valuation used by Renewal SA. Put simply, $30 per square metre is a good price. I am advised that the state has not received a higher offer from any interested party since the time of the transaction. More broadly, the agreement with—

Mr Marshall: Why didn't you put it out to the market?

The SPEAKER: The leader is called to order.

Mr Marshall interjecting:

The Hon. J.R. RAU: They can't handle the truth.

The SPEAKER: The leader is warned for the first time.

The Hon. P. Caica interjecting:

The SPEAKER: The member for Colton is called to order.

Mr Bell interjecting:

The SPEAKER: Yes, that is a very interesting quote, but accordingly the member for Mount Gambier, being out of order, is called to order. Deputy Premier.

The Hon. J.R. RAU: More broadly, the agreement with ACP envisages the development of an oil and gas hub. As with any commodity with price rises and falls, there is never any guarantee that the private sector will establish within this precinct. However, we are doing everything we can to enable and facilitate investment in that sector within South Australia. We are increasingly a highly prospective region. At a time when the state's automotive sector is receding due to the announced closure of Holden's automotive manufacturing plant at Elizabeth, the prospect of a new industrial precinct creating thousands of jobs less than 30 minutes drive from the Adelaide CBD provides opportunity for the future.

This transaction involves commercial intellectual property on the part of ACP and has been subject to a review by the Supreme Court. For obvious reasons, the state has adhered strictly to the obligations of confidentiality imposed upon it. Following crown legal advice, I am advised that the state and ACP have agreed that certain information falls outside of the bounds of the contractual confidentiality provisions and, as such, I seek leave to table that material now.

The SPEAKER: The Deputy Premier can table papers without leave.

The Hon. J.R. RAU: I am tabling the papers. Mr Speaker.