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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-10-14 Daily Xml
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Ministerial Statement

Gillman Land Sale

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: Today, Commissioner Bruce Lander has released his report into the Gillman land sale. I welcome the report. I repeat that the purpose of the Gillman land sale—and the only purpose of the Gillman land sale—is the creation of jobs. The Gillman land sale is about creating an industrial park that will include potential opportunities for a mining services hub. Today's report is the fourth into the Gillman land sale, following a Supreme Court case, an appeal to the Full Court and an Auditor-General's inquiry. Each of these processes has not concluded anything other than that the transaction was entered into for entirely proper purposes.

Commissioner Lander's report does, however, repeat a number of the criticisms of the processes that were made by the Auditor-General and the Supreme Court. He also notes that, in the 22 months following the execution of the deed, the government and the URA have made a number of significant changes which address many of the issues raised in the report. One of these changes is the creation of a Coordinator-General's role. Mr Jim Hallion now assesses unsolicited bids through a new process. This process includes a committee of chief executives making recommendations to government. The report also makes a further recommendation regarding governance of the URA, which we will consider.

The report does, however, identify a further issue. The issue is the language used by minister Tom Koutsantonis.

Members interjecting:

The Hon. J.W. WEATHERILL: The report finds that minister Koutsantonis used inappropriate language in some of his meetings with public servants. I note that the commissioner makes clear that this language did not affect in any way the advice we received. The role of the minister carries with it important obligations to behave in a manner which befits high office. I am disappointed by these findings.

Today I have made it clear to minister Koutsantonis that this behaviour falls below the standards of conduct I expect from my ministers. I expect my ministers and staff to vigorously pursue government policy. Minister Koutsantonis has committed himself to reflect on this conduct, to make a public apology and to take steps to ensure that proper standards are upheld. I am confident that he will reflect on these findings and recommit himself to the obligations of the office of minister and to the standards of conduct that I expect from my cabinet.

The SPEAKER: The Premier should have referred throughout to the Treasurer. I call to order the members for Hartley, Morphett, Morialta, Kavel, Schubert and Finniss and I call to order the leader and the deputy leader for disorderly conduct during that ministerial statement. I warn for the first time the members for Morphett and Morialta, whose reflections on the word 'chutzpah' we didn't need.

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) (14:05): l seek leave to make a brief ministerial statement.

Leave granted.

The Hon. J.R. RAU: On 22 January 2015, the Independent Commissioner Against Corruption issued a public statement which announced that the commissioner would investigate the sale of state-owned land at Gillman. The commissioner published his report into this matter earlier today. The commissioner's report made certain findings in relation to the Urban Renewal Authority, trading as Renewal SA. Those findings can be summarised as follows:

Renewal SA engaged in maladministration in public administration, in that its practices resulted in a substantial mismanagement of public resources.

The former chief executive of Renewal SA engaged in maladministration in public administration, in that his conduct resulted in a substantial mismanagement of public resources, and secondly, he engaged in conduct that involved mismanagement or in relation to the performance of official functions.

An employee of Renewal SA, Mr Buchan, also engaged in conduct that constitutes maladministration in public administration, in that his conduct resulted in substantial mismanagement or in relation to the performance of official functions.

The actions taken by Renewal SA and the government to address issues arising out of the Gillman transaction are appropriate.

The commissioner's report makes clear that there have been a number of significant changes in Renewal SA since 2013. These changes address most of the issues raised in this report.

I was appointed Minister for Housing and Urban Development following the state election in March 2014. In May 2014, it was determined that Mr Hansen would not continue as the chief executive of Renewal SA. His role formally ceased on 30 June 2014. Mr Hansen was replaced, ultimately, by Mr John Hanlon in July 2014.

Following his appointment, the new chief executive initiated a review of the structure of the executive team within Renewal SA. The new structure was announced on 19 September 2014. The executive team was reduced from 11 to five. In February of this year, management and the board of Renewal SA met together for a planning session. This focused on organisational governance, financial performance and key business priorities for this year.

Renewal SA has reviewed the Board of Management Policy, Renewal SA Charter and the delegation framework to take into account issues that have arisen from the Auditor-General's Report and the judgement of Justice Blue. I am advised that the Board of Management Policy and charter are currently with the Crown Solicitor's Office for legal review.

Delegations have been revised and approved by the Renewal SA Board of Management. The chief executive no longer provides out-of-session decision papers to the board. It is expected that further revisions will be recommended as a result of the broader Renewal SA governance review.

In September 2014, cabinet approved a mandatory process and framework for the assessment of unsolicited proposals to government. Renewal SA and the Crown Solicitor's Office have been working to ensure that its land disposal framework aligns with whole-of-government policy positions. Renewal SA no longer allows off-market transactions without a current market valuation of the site in question.

The commissioner recommends that Renewal SA consider proposing amendments to relevant legislation and regulations in order to clarify the reporting relationship, reporting requirements and decision-making responsibility as between the chief executive of Renewal SA, the board of management of Renewal SA and the relevant minister.

I note that the commissioner has made a finding of maladministration relating to the conduct of a current employee of Renewal SA. The matter of staffing within a government agency is a matter for that agency's chief executive. Earlier today, I wrote to the chief executive directing him to the passages in the report relevant to Renewal SA. I asked him to seek the advice of both the Commissioner for Public Sector Employment and the Crown Solicitor in giving his full attention to these matters as soon as possible.

I also note the comments at page 47 of the commissioner's annual report published yesterday and, in particular, his expressed concern that his reports cannot deal with matters arising directly from the discharge of his core functions. I intend to meet with the commissioner in the near future to obtain a clearer understanding of his concerns.

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