Source : ABC NEWS
The Tasmanian government is pushing ahead with plans to sell land near the Derwent Entertainment Centre to NBL owner and property developer Larry Kestelman, despite receiving departmental advice to stop negotiations.
The government announced last February that it had agreed to sell 15 hectares of Crown land at WIlkinsons Point to Mr Kestelman’s LK Group, to allow him to build a $500 million development at the site, including a family holiday park, a hotel and convention centre, and retail.
As part of the deal, the state government agreed to cover the cost of building enabling infrastructure at the site, which Premier Jeremy Rockliff estimated last year would cost $12 million, but a formal sale agreement is yet to be reached.
However, in an incoming government brief provided to Business and Industry Minister Felix Ellis following July’s state election, the Department of State Growth warned that activating the site could cost taxpayers $100 million.
Larry Kestelman pictured with Jeremy Rockliff at a Tasmania JackJumpers game in 2022. (ABC News: Luke Bowden)
The departmental brief also detailed that there was “no certainty of development or contribution to costs from LK Group”.
“The department’s current recommendation is to cease negotiations on sale of land and consider offering the surplus land to open market,” the note said.
A note reiterating that advice was also provided to Mr Rockliff.
A government spokesperson said it continued to negotiate with Mr Kestelman “in the best interest of Tasmanians”.
Martin Thompson (left) previously found “serious shortcomings” in the proposed land sale. (Supplied)
It is not the first time the proposal to sell land to Mr Kestelman has come under scrutiny.
In September, Auditor-General Martin Thompson said he had “serious concerns” about the process.
In a report, Mr Thompson said he had found “significant shortcomings in process and advice” in the proposed land sale, including “not having a business case that defined the scope, risks and costs of the individual projects that made up the proposal”.
Rockliff defends process
At a press conference on Tuesday afternoon Mr Rockliff said his government was unapologetically doing all it could to help infrastructure projects get off the ground.
“I will never back away from wanting economic growth and jobs for young people,” he said.
Asked directly if he was ignoring the advice of government agencies Mr Rockliff said the government considered advice “from a range of areas”.
“Which is why we take that advice, and listen, and then we make decisions upon that,” he said.
“We’re still in the negotiating process right now to ensure that we can get the best opportunity for Tasmania, the best deal for Tasmania.“
Bec Thomas has concerns about the process. (ABC News: Kate Nickels)
MP says sale must be stopped
Elwick MLC Bec Thomas said the state government must stop the sale until it can demonstrate it had followed due process, and that selling the land was in the best interest of Tasmanians.
Loading…
“I support the development of Wilkinsons Point, but it is valuable public land. Decisions about its future must be made lawfully and transparently — not through shortcuts or secrecy,’ Ms Thomas said.
“Tasmanians have seen what happens when major deals are stitched up without transparency. Wilkinsons Point must not become another example of government secrecy, blurred accountability, and taxpayer risk.”
Dean Winter says an open, competitive process could deliver a better deal for Tasmanians. (ABC News: Maren Preuss)
Shadow Treasurer Dean Winter said Mr Rockliff had serious questions to answer about the deal, including why he was “prepared to risk $100 million of public money without testing the market”.
“Why is he bypassing an open, competitive process that could deliver a better deal for Tasmanians?” Mr Winter asked.
“Tasmanians expect their assets to be managed in the public interest, not sold off behind closed doors with all the risk carried by taxpayers.“
LK Group has been contacted for comment.
