2nd October 2008
GREENS CALL FOR FOR FULL DISCLOSURE ON SHELL COVE
Following the release of the Shell Cove Management Agreement yesterday, the Illawarra Greens have called for the immediate release of all the documents associated with the Shell Cove development.
Greens Shellharbour spokesperson Sue Fleet said, ‘We congratulate Shellharbour’s Administrator David Jesson on his decision to release the Agreement and all of its amendments. This is the first crack in the wall of secrecy that has surrounded the project since its inception’.
However, Mr Jesson has not agreed to release the associated Feasibility Studies, Annual Programs, Monthly Reports and the Tripartite Deed for the Shell Cove development.
‘The public is getting only part of the story’, Ms Fleet said.
The Management Agreement refers to various ‘development fees’ to be paid to Australand, including a management fee, a sales fee and a commission on annual profit.
‘Along with the 50% of final project profit for each partner, these extra fees mean that Australand could have ended up with more like 75% of the profit. This flies in the face of Council’s repeated claims that profits would be distributed 50/50 at the end of the project.’
Australand recently notified the Australian Stock Exchange they expect to make a profit of $275 million out of the project, while Council announced that it expects a return of only $59 million.
Ms Fleet said, ‘Australand’s commission is dependent on completion of the boat-harbour, but its construction has been delayed indefinitely, so we want to know where those extra profits will come from.’
‘On top of these dubious figures, we find that a 2002 amendment allows for the management fee to be paid from Council’s consolidated fund rather than from the project’s trust fund.’
‘However, Council has repeatedly assured residents that no Council funds were being diverted to pay for the Shell Cove project,’ said Ms Fleet.
For that reason, I was surprised to find that a part of the ‘Golf Course Residential’ area is to be developed and sold by Council alone, rather than by the Project. The Illawarra Greens call on Council to come clean about this and give details regarding the tender process for development of this area.
‘In light of Premier Rees’ statements about transparency of governance in NSW, we believe that there is absolutely no reason for the confidentiality clause included in this Agreement.
‘As far as we can see the Agreement does not contain any items of commercial-in-confidence that would be covered by the Local Government Act (1993). We are seeking legal advice as to whether council officers exceeded their authority in signing an agreement that contravenes the Act’.
‘Now that Council has decided to come clean on this major contract, we want to see full disclosure on all aspects of this long-running source of conflict and dysfunction at Shellharbour Council. While the Council is under administration, let’s take the opportunity to disclose the details and history of this contentious project.’
Contact: Sue Fleet, Illawarra Greens, 0402 819 577