Martindale Hall

The Hon. M.C. PARNELL (15:13): I seek leave to make a brief explanation before asking a question of the Minister for Sustainability, Environment and Conservation about Martindale Hall.

Leave granted.

The Hon. M.C. PARNELL: I understand that last year the government received an unsolicited proposal from the Martindale Hall Partnership for the purchase or long-term lease of the Martindale Hall property for the purpose of creating a wellness retreat and five-star resort.

According to the government's document 'Guidelines for Assessment of Unsolicited Proposals', the consideration of unsolicited proposals is a three-stage process. Stage 1 is the initial proposal, stage 2 is the detailed proposal and stage 3 is the contract negotiation. Under stage 2, detailed proposal, the guidelines state:

Once the assessment process of Stage 2 is complete, advice will be prepared for Cabinet and the government will provide a response to the proponent outlining:

the outcome of the assessment stage;

whether the proposal is suitable to proceed to Stage 3 (Contract Negotiation) and the appropriate justification;

whether the proposal is not suitable for further consideration on an exclusive basis, however may still warrant a competitive bidding process; or

that the proposal is not suitable for further consideration and is now closed.

My questions of the minister are:

1. What is the current status of the unsolicited bid for Martindale Hall that the government received last year?

2. Has the stage 2 assessment been completed?

3. Has advice from the stage 2 assessment process been considered by cabinet?

4. When will the government make a decision on whether to proceed to stage 3 negotiation with the Martindale Hall Partnership?

The Hon. I.K. HUNTER (Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Climate Change) (15:15): I thank the honourable member for his most important question. Martindale Hall is a significant example of South Australia's built heritage. The state government is committed to ensuring its heritage and tourism values are preserved for the enjoyment of future generations. Martindale Hall, the coach-house and other structures are listed on the State Heritage Register and managed by the Department of Environment, Water and Natural Resources as the Martindale Hall Conservation Park.

Martindale Hall is a grand Georgian mansion built in 1879, I am advised, located in Mintaro in the Clare Valley. Martindale Hall, and the surrounding property, was originally bequeathed to the University of Adelaide in the 1960s. In 1986, the hall and coach-house were excised from the Martindale estate, which I think the University of Adelaide kept, and the hall and coach-house were gifted to the South Australian government without, as I say, the rest of the estate being attached.

The University of Adelaide retained the balance of the estate and subsequently disposed of it, I am advised, in recent times. Until December 2014, a portion of the Martindale Hall Conservation Park was held under lease, providing public access to the historic hall, accommodation and use as a function centre. An expression of interest process in 2014 was unable (and I think I have given this information to the house previously) to find a suitable arrangement for the hall, and caretaker arrangements have been put in place to enable the government to develop a sustainable long-term business model for Martindale Hall.

In March 2015, an unsolicited proposal was submitted to the Office of the State Coordinator-General by the Martindale Hall Partnership. The proposal looks to develop a five-star resort and wellness retreat at Martindale Hall involving the surrounding properties. It includes a number of options around lease or purchase of the property. The Unsolicited Proposals Steering Committee has assessed the proposal against stage 1 criteria and guidelines for assessment of unsolicited proposals. The committee recommended that the proposal should progress to stage 2 in accordance with the guidelines.

Consultation on the proposal included a number of community information sessions, attended by approximately 130 people, and online, via the YourSAy website. Consultation concluded on Monday 26 October of last year and DEWNR is undertaking an assessment of all feedback received in formulating advice for government on whether to proceed with the proposal any further. I am advised that members of the public expressed interest in relation to ongoing public access, the future management of the contents of the hall and, in particular, whether or not the hall should be sold if it was gifted from the University of Adelaide to the government. I understand that this is also a concern that has been expressed by the National Trust.

There has also been feedback that rejuvenation of the property through a tourism product could be very positive for the Clare Valley region. The government will now consider whether to proceed with the proposal and in what form once we have that advice presented to it, and the honourable member well knows that ministers tend not to discuss what is coming before cabinet at any particular time or even confirm whether it is or isn't. I will honour that precedent and not speak about that on this occasion.