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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2008-10-16 Daily Xml
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GOVERNMENT BUILDINGS, ACCOMMODATION

Mr O'BRIEN (Napier) (14:53): Will the Minister for Infrastructure advise whether the government is losing money on any accommodation?

The Hon. P.F. CONLON (Elder—Minister for Transport, Minister for Infrastructure, Minister for Energy) (14:54): Apparently, the Auditor-General has already told us. The allegation that has been made today by members of the opposition is that we are wasting money by getting a building before we put people in it. Of course, we should have got the people first and then built the building around them. That would have been the way they would have done it. The opposition has also said that SA Water is wasting money because it is moving into a building. Of course, it should sit in Victoria Square; that would be a good way to do its business. The truth is that, as the minister responsible, I can advise—

Members interjecting:

The Hon. P.F. CONLON: Listen—I have news for you; you will like this. I can disclose that the government has made a big mistake and that it has lost very badly on a non-commercial deal. But can I say that the ordinary practice of this government, under the relevant department, is to pay commercial rates for rental. That is what we do; that is what we seek to do; and that is what we do on every occasion that we make a decision.

However, because of the questioning today I think I should indicate to the house that we do have one head lease that was written by the government completely uncommercially, and I am advised by the department that, despite the fact that the building is fully let at commercial rates, it will lead to a loss to the government over the lifetime of that lease of $15.7 million. That is $15.7 million that might have been spent on useful accommodation, that might have been spent on our hospitals and schools. I do apologise to the house for this. I refer, of course, to the EDS building. The head lease on the EDS building was taken nine years ago by that glorious former government of which, for a twinkle, the Leader of the Opposition was a minister.

An honourable member: A twinkle?

The Hon. P.F. CONLON: For a twinkle. $15.7 million was poured down the drain—and why? Because when they were in government the economy was so moribund that they had to go out—

Members interjecting:

The Hon. P.F. CONLON: Here we go: 'Why was that?' 'It wasn't our fault.' It was completely moribund, so they went out—

Members interjecting:

The SPEAKER: Order!

The Hon. P.F. CONLON: —and underwrote an entirely uncommercial lease, with taxpayers' money so that they would look a little bit better and get a building up. So that they would look politically a little bit better they poured taxpayers' money down the drain.

Members interjecting:

The Hon. P.F. CONLON: Now what happens? Apparently—

Members interjecting:

The SPEAKER: Order!

The Hon. P.F. CONLON: Their incompetence does hurt them, doesn't it? It stings when they are reminded of it. Of course, the $15.7 million on the EDS building pales by comparison to their wine centre; the wine centre that has never made a dollar from day one. We had to give it away. They built it for $30 million and we had to give it away. They poured taxpayers' money down the drain but criticise this Treasurer for saving $30 million on shared services. I have said it before and I will say it again: these people are whited sepulchres.

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