Mr BELL - 1996-08-21
How many bids were there for the retirement village subdivision in Alice Springs? Have the bidders insisted on commercial confidentiality or is the minister insisting on confidentiality for political reasons? Finally, will the minister confirm that, contrary to what he said yesterday in this Assembly and contrary to what he repeated on ABC radio, the land was not sold to the highest bidder?
Mr Ah Kit: A tough question.
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ANSWER
Mr Speaker, the member for Arnhem says that this is a tough question. We are used to his interjections and his supercilious grin. We are waiting for him to say something sensible, enabling him to chalk up a few points.
In relation to the question from the member for MacDonnell, nothing is happening in this regard for political purposes. The member for MacDonnell is reading things into a set of circumstances that he perceives he can use for political purposes. That is the difference between where he is coming from and what the government did. If he wants to make assertions about how much money a developer made out of a subdivision, let him do it factually and with some information that he can substantiate. It is not very good for a member of this Assembly to make all kinds of assertions about millions of dollars worth of profit that a particular developer has made - in this case, the developer of an area of land in eastern Alice Springs - without taking into account ...
Mr Ah Kit: Was it the highest bidder? Yes or no?
Mr Stirling: He does not want to answer.
Mr SPEAKER: Order!
Mr REED: Mr Speaker, the interjections continue from members opposite. I am answering the question. I am also addressing some of the points that the member for MacDonnell made in relation to assertions that he cannot substantiate.
Mr Stirling: You said yesterday that it was the highest bidder.
Mr REED: You keep interjecting. You are again illustrating to the people of the Northern Territory, who listen to the broadcast of this Question Time, your rudeness and your incompetence, in that you are unable to substantiate some of your assertions. If developers are to be subjected to this type of criticism and assertions made against them, in the interests ...
Mr Bailey: How much did they donate to the CLP?
Mr SPEAKER: Order!
Mr REED: The government is keen to have more developers come to the Northern Territory, to further progress development which provides jobs and economic growth. Those developers should have the comfort of knowing that there is something of a safety valve and that, if the ALP is irresponsible and makes unfounded allegations against them, someone will provide information of some substance in relation to that.
The member for MacDonnell suggested that a $2.8m profit was made after development and marketing costs. I believe he has based that on current sales prices rather than original prices. I understand that the land sold for about $38 000 to $45 000 per R1 block. These blocks are currently reselling for approximately double the original price. In fact, one well-sited block is on the market for $120 000. I imagine that the people who are
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now experiencing the benefits of living in this subdivision are very pleased that they are able to do so. The escalation of the price of the land in that subdivision is a clear indication that it was of real benefit to the people of Alice Springs.
The land was acquired originally in April 1984 ...
Mr Bailey interjecting.
Mr SPEAKER: Order!
Mr REED: The member for Wanguri is being asked by the member for MacDonnell to be quiet. That illustrates that he is frustrating even his own comrades. If he minds his manners, I will provide some more information, and that is what the member for MacDonnell sought. The member for Wanguri is frustrating all of us too and the people listening to the broadcast.
The purchase price was $1.2m, for land acquired originally for motel and condominium development.
Mr Bailey interjecting.
Mr REED: The member for Wanguri interjects again and interrupts the provision of the information to the member for MacDonnell. However, I am sufficiently tolerant to continue providing the information, notwithstanding his rude interjections.
The $1.2m price was based on that land use, and that land use was changed subsequently.
Mr Bailey: It was not zoned for that.
Mr REED: The member for Wanguri interrupts rudely again. He will set a record soon. I do not think even he has been as rude as this before.
Mrs Hickey: You are setting a record for not answering.
Mr SPEAKER: Order!
Mr REED: In October 1993, a lease was issued to Henry Walker Contracting for a purchase price of $535 000. In addition, Henry Walker Contracting agreed to construct a retirement village at its own cost. Henry Walker Contracting has since developed 74 residential and 2 unit blocks. The developer has until April 1998 to construct a retirement village on the remaining 3 ha. It will be required to pay a premium for the site, estimated to be between $800 000 and $1m, if it seeks to use the land for anything other than a retirement village - for example, for a residential development. Alternatively, it will be required to forfeit the land to the Crown.
I referred earlier to the details relating to the land sales ...
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Mr Bailey: What was the highest bid?
Mr REED: The member for Wanguri interjects again. He is dead set on establishing a record for rudeness today.
There were 4 respondents to the tender process. I believe that we do have to take into account the commercial confidentiality ...
Mr Stirling: Why?
Mr REED: The member for Nhulunbuy asks why. I suppose there are people who, for their own commercial reasons, may not want their name disclosed. I do not think it is appropriate for the government to disclose who tenders for what. There is no precedent for that. I think that we should have some respect for those developers who ...
Mr Bailey: Get favourable treatment.
Mr SPEAKER: Order!
Mr REED: The member for Wanguri interjects, emphasising his rudeness further.
I will not disclose the names, but I will disclose the amounts of the 4 tenders. The original price of one tender was $355 000. That was increased after tenders closed. As a consequence, the original tender was considered. A $503 000 bid was made. That was an up-front payment offered with an alternative from another tenderer. Another tenderer offered $520 000. The successful tenderer, which has been named already, Henry Walker Contracting, offered a tender price of $535 000. That was the highest up-front price when the tenders closed. It was also considered to be the most innovative development proposal. It was a proposal that would return benefits to the people of Alice Springs.
For the benefit of honourable members, I will indicate also that the process for disposal of government land has been changed. It is undertaken now by a process of expressions of interest. They can be offered in different ways and they are assessed in broader ways than a straight tender.
Mr Bailey: A process of ministerial interference.
Mr REED: Again, the member for Wanguri interjects, further emphasising his rudeness to the people listening to this broadcast. We will total up these interjections later. I believe Territorians will be interested to know the extent of his rudeness, and where his scorecard stands.
Mr Bailey interjecting.
Mr REED: A record may be being broken here today, even for you.
With expressions of interest, the assessment process can be undertaken quite differently, and I think more effectively than is the case with tenders. Assessment of tenders is
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limited virtually to consideration of the money figure offered. An expression of interest in the development of a particular lot of land can be assessed in a way that takes account also of the value ...
Mr Bailey interjecting.
Mr REED: Again, the member for Wanguri interjects!
An expression of interest can be assessed not only on the amount of money that has been offered by people responding to the invitation to submit expressions of interest, but also on the basis of the scope of the overall development proposed and the benefits that will flow to the community. Wider issues of that kind can be taken into account. I think it is a much more effective process. That is not a criticism of what has occurred in the past. It indicates simply that this government responds by implementing new processes that serve Territorians better, if there is a need to do so. It has done so in this case. This is an example of it.
The member for MacDonnell now has the amounts that were tendered and is much more aware of what the process has been. I hope that he is rather more sensitive and takes into account the commercial confidentiality of people who tendered for this land. I hope also that he will be rather more understanding before he makes accusations that he cannot substantiate in relation to what he perceives to be the amount of profit that a developer might have made, without his making allowance for what was actually involved. At least, when he speaks on radio, he should be able to illustrate that he did take into account some of the costs incurred by developers in contributing to the further advancement of the Northern Territory.
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Mr Ah Kit: A tough question.
Page 1526
ANSWER
Mr Speaker, the member for Arnhem says that this is a tough question. We are used to his interjections and his supercilious grin. We are waiting for him to say something sensible, enabling him to chalk up a few points.
In relation to the question from the member for MacDonnell, nothing is happening in this regard for political purposes. The member for MacDonnell is reading things into a set of circumstances that he perceives he can use for political purposes. That is the difference between where he is coming from and what the government did. If he wants to make assertions about how much money a developer made out of a subdivision, let him do it factually and with some information that he can substantiate. It is not very good for a member of this Assembly to make all kinds of assertions about millions of dollars worth of profit that a particular developer has made - in this case, the developer of an area of land in eastern Alice Springs - without taking into account ...
Mr Ah Kit: Was it the highest bidder? Yes or no?
Mr Stirling: He does not want to answer.
Mr SPEAKER: Order!
Mr REED: Mr Speaker, the interjections continue from members opposite. I am answering the question. I am also addressing some of the points that the member for MacDonnell made in relation to assertions that he cannot substantiate.
Mr Stirling: You said yesterday that it was the highest bidder.
Mr REED: You keep interjecting. You are again illustrating to the people of the Northern Territory, who listen to the broadcast of this Question Time, your rudeness and your incompetence, in that you are unable to substantiate some of your assertions. If developers are to be subjected to this type of criticism and assertions made against them, in the interests ...
Mr Bailey: How much did they donate to the CLP?
Mr SPEAKER: Order!
Mr REED: The government is keen to have more developers come to the Northern Territory, to further progress development which provides jobs and economic growth. Those developers should have the comfort of knowing that there is something of a safety valve and that, if the ALP is irresponsible and makes unfounded allegations against them, someone will provide information of some substance in relation to that.
The member for MacDonnell suggested that a $2.8m profit was made after development and marketing costs. I believe he has based that on current sales prices rather than original prices. I understand that the land sold for about $38 000 to $45 000 per R1 block. These blocks are currently reselling for approximately double the original price. In fact, one well-sited block is on the market for $120 000. I imagine that the people who are
Page 1527
now experiencing the benefits of living in this subdivision are very pleased that they are able to do so. The escalation of the price of the land in that subdivision is a clear indication that it was of real benefit to the people of Alice Springs.
The land was acquired originally in April 1984 ...
Mr Bailey interjecting.
Mr SPEAKER: Order!
Mr REED: The member for Wanguri is being asked by the member for MacDonnell to be quiet. That illustrates that he is frustrating even his own comrades. If he minds his manners, I will provide some more information, and that is what the member for MacDonnell sought. The member for Wanguri is frustrating all of us too and the people listening to the broadcast.
The purchase price was $1.2m, for land acquired originally for motel and condominium development.
Mr Bailey interjecting.
Mr REED: The member for Wanguri interjects again and interrupts the provision of the information to the member for MacDonnell. However, I am sufficiently tolerant to continue providing the information, notwithstanding his rude interjections.
The $1.2m price was based on that land use, and that land use was changed subsequently.
Mr Bailey: It was not zoned for that.
Mr REED: The member for Wanguri interrupts rudely again. He will set a record soon. I do not think even he has been as rude as this before.
Mrs Hickey: You are setting a record for not answering.
Mr SPEAKER: Order!
Mr REED: In October 1993, a lease was issued to Henry Walker Contracting for a purchase price of $535 000. In addition, Henry Walker Contracting agreed to construct a retirement village at its own cost. Henry Walker Contracting has since developed 74 residential and 2 unit blocks. The developer has until April 1998 to construct a retirement village on the remaining 3 ha. It will be required to pay a premium for the site, estimated to be between $800 000 and $1m, if it seeks to use the land for anything other than a retirement village - for example, for a residential development. Alternatively, it will be required to forfeit the land to the Crown.
I referred earlier to the details relating to the land sales ...
Page 1528
Mr Bailey: What was the highest bid?
Mr REED: The member for Wanguri interjects again. He is dead set on establishing a record for rudeness today.
There were 4 respondents to the tender process. I believe that we do have to take into account the commercial confidentiality ...
Mr Stirling: Why?
Mr REED: The member for Nhulunbuy asks why. I suppose there are people who, for their own commercial reasons, may not want their name disclosed. I do not think it is appropriate for the government to disclose who tenders for what. There is no precedent for that. I think that we should have some respect for those developers who ...
Mr Bailey: Get favourable treatment.
Mr SPEAKER: Order!
Mr REED: The member for Wanguri interjects, emphasising his rudeness further.
I will not disclose the names, but I will disclose the amounts of the 4 tenders. The original price of one tender was $355 000. That was increased after tenders closed. As a consequence, the original tender was considered. A $503 000 bid was made. That was an up-front payment offered with an alternative from another tenderer. Another tenderer offered $520 000. The successful tenderer, which has been named already, Henry Walker Contracting, offered a tender price of $535 000. That was the highest up-front price when the tenders closed. It was also considered to be the most innovative development proposal. It was a proposal that would return benefits to the people of Alice Springs.
For the benefit of honourable members, I will indicate also that the process for disposal of government land has been changed. It is undertaken now by a process of expressions of interest. They can be offered in different ways and they are assessed in broader ways than a straight tender.
Mr Bailey: A process of ministerial interference.
Mr REED: Again, the member for Wanguri interjects, further emphasising his rudeness to the people listening to this broadcast. We will total up these interjections later. I believe Territorians will be interested to know the extent of his rudeness, and where his scorecard stands.
Mr Bailey interjecting.
Mr REED: A record may be being broken here today, even for you.
With expressions of interest, the assessment process can be undertaken quite differently, and I think more effectively than is the case with tenders. Assessment of tenders is
Page 1529
limited virtually to consideration of the money figure offered. An expression of interest in the development of a particular lot of land can be assessed in a way that takes account also of the value ...
Mr Bailey interjecting.
Mr REED: Again, the member for Wanguri interjects!
An expression of interest can be assessed not only on the amount of money that has been offered by people responding to the invitation to submit expressions of interest, but also on the basis of the scope of the overall development proposed and the benefits that will flow to the community. Wider issues of that kind can be taken into account. I think it is a much more effective process. That is not a criticism of what has occurred in the past. It indicates simply that this government responds by implementing new processes that serve Territorians better, if there is a need to do so. It has done so in this case. This is an example of it.
The member for MacDonnell now has the amounts that were tendered and is much more aware of what the process has been. I hope that he is rather more sensitive and takes into account the commercial confidentiality of people who tendered for this land. I hope also that he will be rather more understanding before he makes accusations that he cannot substantiate in relation to what he perceives to be the amount of profit that a developer might have made, without his making allowance for what was actually involved. At least, when he speaks on radio, he should be able to illustrate that he did take into account some of the costs incurred by developers in contributing to the further advancement of the Northern Territory.
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Last updated: 09 Aug 2016