LNP ASSETS SALES CAUSE $2.6 BILLION LOSS FOR TAXPAYERS.

Media Release.

Deputy Opposition Leader, Tim Mulherin, says the Auditor-General’s latest report confirms taxpayers stand to lose more than $2.6 billion just because the Premier wants a new Executive Building for himself and his Ministers.

“This massive loss will come from $1.2 billion paid in dead money as rent for seven office buildings previously owned by taxpayers, the $237 million book-value loss on the buildings,  and an extra $1.2 billion in rent and land costs for the Premier’s new Executive Building itself,” Mr Mulherin said.

“The Premier and the Treasurer have spent months justifying the sale of the seven buildings as a way to kick-start their new Executive Building and claiming it was a good deal for taxpayers."

“But now in black and white the Auditor-General’s Report to Parliament Numbers 11 and 12 released today describe these losses as ‘risks to [the] operating sustainability’ of Queensland’s finances and questions the whole sale process and its result."

“In other words, the Premier’s self-indulgence and asset sales with no reference to voters represent financial incompetence of the highest order.”

Mr Mulherin said the report confirmed what a bad deal the Premier’s asset sales were for taxpayers.

“Taxpayers were previously the landlord of the seven office blocks sold in March to QIC’s private and public investors — at a price the Auditor-General has now identified as $237 million less than their book value."

“The Auditor-General’s report has also criticised the secret sale of the buildings to QIC that was not undertaken by ‘a traditional competitive sale process’ which resulted in the ‘absence of market competition’ and a sale which was ‘not at arm’s length’ from the government."

“The Auditor-General makes the scathing criticism: ‘….the market was not tested to determine whether a higher or lower total sales price would have been achieved by selling the properties through a competitive sale process or by selling the properties individually rather than as a portfolio’.

“The Auditor-General says with a competitive sale process plus the big difference between the book values and sale prices achieved, there is questionable the government ‘can demonstrate it obtained best value for money for the assets it sold’.

“This criticism also applies to the Executive Building project."

“Now to add insult to injury, the Auditor-General reveals a rent bill of $1.2 billion over more than a decade that taxpayers will foot for buildings they previously owned."

“The Auditor-General’s report also shows taxpayers will also have to pick up a $1.2 billion rent bill over 15 years for the Premier’s new Executive Building plus the cost of public land contributed for the project."

“The new but unnecessary Executive Building has been the Newman Government’s one and only major project after almost two years in office and the government has used the sale of the seven office blocks to justify its plans for the new building."

“Now we discover the self-indulgence of the Premier and the LNP comes with a $1.2 billion price tag for his Executive Building."

“This is the same arrogant Premier who wants to spend $14 million on a tunnel from the new building to Parliament House presumably to avoid meeting real Queenslanders."

“This $2.6 billion loss yet again spotlights the twisted priorities of the Newman Government."

“These funds could have been invested in any number of much-needed community facilities and job-creating projects as the former Labor Government did when it started major projects like the Gold Coast University Hospital, the Queensland Children’s Hospital and the Sunshine Coast University Hospital."

“Instead the LNP focusses its efforts and taxpayers’ funds on looking after itself."

“People in regional Queensland should be especially angry because the LNP’s sole capital works project in a new building for itself in the Brisbane CBD."

“The $2.6 billion cost of that project that has now been revealed could have been far better spent in regional centres to generate jobs and boost local economies,” Mr Mulherin said.