Gillman Land Sale

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister for Housing and Urban Development) (13:15): I seek leave to make a ministerial statement.

Leave granted.

The Hon. S.C. MULLIGHAN: The state government has been informed by Adelaide Capital Partners (ACP) that it will not proceed with the proposed Lipson Industrial Estate at Gillman. ACP has indicated this morning that it will not be completing settlement on a 150-hectare land sale contract—

Members interjecting:

The SPEAKER: The member for MacKillop is called to order. The member for Kavel is warned.

The Hon. S.C. MULLIGHAN: —with Renewal SA by 5pm today, Tuesday 1 November.

Members interjecting:

The SPEAKER: The member for Mount Gambier is called to order. If he interrupts the minister again, he will be forced to be in here at 2.30pm.

The Hon. S.C. MULLIGHAN: As a result, the land will be put out to the market, with the process to commence within days. By way of background, on 12 April 2016, the house was informed that in order to resolve a dispute in the High Court on the sale of the Lipson Industrial Estate (more commonly referred to as the Gillman land), the state entered into a deed of settlement and release. Parties to the deed were the urban renewal authority, Adelaide Capital Partners, Acquista Investments and Veolia Environmental Services, trading as Integrated Waste Services (IWS). The essential terms of the settlement included:

IWS agreeing to discontinue legal proceedings in the High Court and not taking any further legal action regarding this matter;

URA and ACP entering into a land sale contract for 150 hectares of land, known as the stage 1 land sale contract, with a fixed settlement date of 5pm, 1 November 2016 for the price of $45 million; and

Veolia and ACP entering into a land sale contract for 20 hectares of the stage 1 land. This separate contract binds Veolia to the same terms as those to which ACP is bound under the option deed, including the sale price of $30 per square metre, with infrastructure to be provided by ACP to their site at cost. Settlement of this land sale contract is dependent on the settlement of the stage 1 land sale contract on or before today, 5pm, 1 November 2016. The state is not a party to this arrangement between Veolia and ACP.

Furthermore, the South Australian government agreed to pay, through the URA, the legal costs of ACP and IWS to an amount no more than $2.2 million. In the event that the stage 1 land contract did not settle, which we now know to be the case, the following actions will occur: the option deed and stage 1 land contract will terminate, with no liability to ACP, URA or the state, immediately upon URA serving a notice of termination on ACP; and URA is obliged to invite developers, including IWS, to put forward proposals for significant development projects for portions of the land which are consistent with the state's strategic purposes.

I can inform the house that today's announcement by ACP follows the government recently receiving a proposal from ACP outlining an alternative settlement schedule for the stage 1 option land. Given the proposal's inconsistency with the deed of settlement that was agreed to by the parties following a lengthy negotiation, which was finalised in April, the government was of the view that any further revision to the arrangement could not be contemplated.

Furthermore, in accordance with the deed of settlement and release, the government is obliged, through a public expression of interest process, to invite developers, including IWS, to put forward proposals for part of the land that are consistent with the state's strategic purposes to accommodate significant development projects.

While the state government is obviously disappointed that ACP has not progressed as anticipated, it is important to note that pending any future sale and development of this land there still exists the real and exciting potential to create jobs for South Australians and further economic activity for this state.

Members interjecting:

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