Page 1816 - Week 06 - Wednesday, 7 June 2006
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Narrabundah caravan park to Koomarri for $1, with the specification that it be used for long-term, low-cost accommodation for five years. Previously the site had been owned and managed by ACT Housing, predominantly for low-cost accommodation. The valuation of the site at the time of the original sale was in the order of $1 million.
The lease purpose clause specifies that the land is to be used for the purpose of a caravan park. Recently it was announced that Koomarri had sold the Narrabundah caravan park to a private developer, Dytin Pty Ltd, a company associated with Consolidated Builders Ltd and Mr Josip Zivko, its chairman, and that eviction notices had been served on the park’s 102 “licensees” and their families. On the basis of those notices, residents were told that they would have to vacate the park some time between August 2006 and February 2007, depending on the individual notices served.
Mr Speaker, other facts are known. Some residents have lived in the park for years. Many are on low to moderate incomes. Some live with the challenge of a disability. But, as I said, they are a community, a strong and, I believe, viable community, and that is what is most important in any description of who or what the residents are and what they deserve.
On 17 May 2006, I announced the formation of a task force to come up with a solution, to provide options and information to the government on the significant and complex issues confronting residents in the wake of the sale of the park. The task force and the government have taken a whole-of-government approach and looked at the full range of available options and actions open to the government. I have met with both Consolidated Builders and Koomarri and I am investigating with both parties possible ways forward that will satisfy the aspirations of each, while delivering the best possible outcome for the park residents.
Representatives of the task force have met with Koomarri, the developer and the residents of the Narrabundah caravan park. From the options identified by the task force, three seem to offer, in the government’s view, the best prospect of a way forward. The first is to reverse the sale, the second is to seek to negotiate the possibility of a land swap and the third is compulsory acquisition. I need to reiterate, and I have advised Mr Zivko of this personally, that the option of compulsory acquisition has not been ruled out but I think it is, obviously, an undesirable one, not least in terms of good policy.
It is clearly not good policy for one government to sell a block of land for $1 and then for a successive government to buy it back five years later for $2 million. To date, as you may be aware, the developer has indicated that it will not agree to a reversal of the sale. As the territory is not a party to the sale, it is not in a position to reverse the sale without the agreement of both parties. This arrangement was the government’s preferred option because it protected the interests of residents without a call on the public purse. I convened a meeting, as members are probably aware, with Consolidated Builders and Koomarri to seek to negotiate that first option as an outcome, representing the government’s preferred option.
Representatives of the task force continue to hold meetings with Consolidated Builders. I understand that Consolidated Builders, the task force and, indeed, ACTPLA have had meetings and continue to have discussions quite regularly, having been doing that over the last 10 days. Of the issues being discussed are issues relating to the land swap option.
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