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Legislative Assembly for the ACT: 2003 Week 7 Hansard (24 June) . . Page.. 2285 ..
MR STEFANIAK
(continuing):Minister, seeing as this condition seems to give you no leeway in relation to the 10 per cent, why was that 10 per cent not paid, and was the $1 million that was paid forfeited as required? If not, why not?
MR CORBELL
: Yes, what occurred on 11 June was that the successful bidder provided a cheque for $3.8 million as the 10 per cent deposit, Mr Speaker. That cheque was dishonoured by the Commonwealth Bank at 5.00 pm on Monday, 16 June.Since that time, the Gungahlin Development Authority has been in negotiations with the principals of the company, the successful bidder, after the authority received legal advice that it was legally able to do so, to vary the terms of the contract. The company made a part-payment of $1 million on 20 June. The company has been advised that the balance of the deposit, $2.8 million, must be paid by bank cheque by no later than 27 June this year. If these conditions are not met, the default provisions of the sale will apply and the property will be reofferred at auction early in the 2003-2004 financial year.
MR STEFANIAK
: Minister, is the government by the actions of the GDA, in breach of its own regulations and conditions and also the national code of practice of the construction industry and, minister, will you table the advice you referred to by close of business today?MR CORBELL
: The advice I have received is that the authority is entirely within its rights to vary the contract.MR SPEAKER
: The standing orders preclude asking for a legal opinion, Mr Corbell, so I think-Mr Stefaniak
: I just asked him to table an advice.MR SPEAKER
: You asked if there was a breach.Mr Stefaniak
: Yes, I asked if, by the actions of the GDA, the government is in breach of its own regulations and conditions and also the national code of practice of the construction industry. Regarding the advice, I asked him to table it by close of business today.MR SPEAKER
: Yes.MR CORBELL
: Mr Speaker, I am advised that the GDA is acting lawfully and that its actions are consistent with advice provided to it. As this is an existing commercial transaction between two parties, I do not believe that it is in the public interest for the legal advice to be made available to third parties at this time.
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