Alternative Media Group

Harbourside properties sale short-sighted

Author:

Gareth Narunsky

Posted:

Thursday, 28 January 2010

Greens MP Sylvia Hale has criticised the State Government’s plan to sell 99-year leases of prominent harbourside commercial properties.

Several prominent sites at Darling Harbour and The Rocks will be leased via tender to raise money that will be directed towards transport, education and health programs, according to the Minister for Planning and Lands, Tony Kelly.

A media release from Mr Kelly’s department said the assets would still remain in long-term public ownership.

But Ms Hale said the long-term leases opened the door for future governments to sell the properties regardless.

“We believe that when you lease something out for 99 years … people lose all memory of them being in public ownership,” she said.

“That might allow a government 20-30 years down the track that’s strapped for cash to quietly actually sell public assets.

“When you lease something for 99 years – effectively you’ve sold it, that’s what it amounts to.”

Ms Hale said the plan was short-sighted.

“In effect, this government which has only 11 or 12 months to run, is saying to governments over the next 98 years, ‘We have taken the income stream that might have been generated from rents from these buildings, we have taken that for our own purposes’ and it’s in effect depriving future governments of the income streams from those buildings,” she said.

“The other concern is that [this was] just announced – without any prior warning [or] debate.”

Ms Hale questioned the long-term impacts of the leases in terms of their effects on both planning and environmental sustainability.

“We’re in effect tying our hands when it comes to any long term planning for what are key sites around Sydney Harbour,” she said.

“Because you’ve entered into these leases – that may thwart and frustrate any future plans for these key sites.

“[And] what compulsion is there going to be on new owners to ensure that [the sites] are environmentally friendly and sustainable?”

Ms Hale said the uncertainly of climate change could also present problems down the track, given their proximity to the water level.

“Who knows with climate change, tidal levels may have changed significantly and the Government may be forced to end those leases,” she said.

“The tidal levels [may be] such that you might want to completely remove the buildings – but then they’ll have to compensate whomever has that long lease for the breaking of the lease conditions.”

Specific properties slated for tender under the plan include the Harbourside Shopping Centre and car park, the Darling Walk development, the IMAX Theatre, Sydney Aquarium and Wildlife World and six hotels including the Shangri-La in The Rocks and the Novotel Darling Harbour.

Tender documents are to be made available from 8 February, with submissions due on 30 April and assessment to take place between May and July.

The New South Wales Government first announced its plans to divest the properties in its 2008 mini-budget.

Photo by Kurt Neurauter

Like this article? Register as a subscriber here. It's free! We'll keep you up to date with new stories on the site.