Chief Minister Andrew Barr and the ACT Greens have questioned a proposal to move more than 5000 Immigration and Customs public servants to a business park at Canberra Airport.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Signing a new memorandum of understanding with airport boss Stephen Byron on Wednesday, Mr Barr said he hoped economic activity would bring new entrants to the Canberra property market.
The airport's Brindabella Business Park wants to provide the 80,000 square metres of office space needed to bring all of the merged department's public servants under one roof.
The plan would see workers relocated from existing offices in Belconnen and Civic.
Department bosses want all 13,500 workers in one building or no more than 400 metres apart, and all within 10 kilometres of Parliament House.
Some Defence Department staff and Australian Federal Police workers are based in the airport precinct.
Speaking alongside Mr Byron at the signing ceremony, Mr Barr did not directly criticise the proposal but said it could have a negative impact on Belconnen.
"I certainly welcome the airport's investment in this precinct and recognise that through this investment they've brought into this city a range of new players," Mr Barr said.
"I also think it's important that there is competition within the marketplace in Canberra. What we don't want is lazy landlords . . . but, obviously in the context of this particular decision, those who are making it at the Commonwealth level also have to weigh up the impacts internally within the territory.
"A little bit of internal competition doesn't hurt to sharpen some pencils to get some good outcomes for government departments."
Any dramatic changes to Commonwealth departments based in town centres would require action from the ACT government.
Mr Barr said he supported a Legislative Assembly motion passed in February, calling on Immigration bosses to stay in Belconnen.
"One department in isolation probably doesn't upset the apple cart a whole lot. A big run, perhaps like we've seen in Woden for example, does become more challenging."
Mr Byron would not comment on the proposal while the Commonwealth tender process continued.
Greens MLA Shane Rattenbury said the proposal showed a lack of understanding of the Canberra community.
"A move like this would isolate a huge number of Canberrans, moving them away from good public transport options and retail facilities," Mr Rattenbury said.
"Removing 5500 staff from the area would be a significant blow to the Belconnen community. These discussions are already causing a great deal of anxiety for businesses."
Immigration won't discuss its plans and the department's current landlord, Amalgamated Property Group, is understood to be fighting to hold on to the tenancy.
The airport precinct hosts Australia's largest Woolworths supermarket and discount retailer Costco. Ikea will open its Canberra store in the area this year.
Fraser MP Andrew Leigh called on Immigration Minister Peter Dutton "to be straight with the Belconnen community".
The co-operation agreement replaces a similar document signed by former chief minister Jon Stanhope in 2010 and comes after sometimes difficult relations between the parties.
It highlights plans for co-operation on further development of the airport area, better ground transport options, the National Airports Safeguarding Framework, noise mitigation efforts and attempts to attract direct international flights and low-cost carriers to Canberra.
Mr Byron said negotiations with international airlines were always difficult and long running.
"Don't read anything into their public comments," Mr Byron said. "There is a dialogue going on there. They are analysing the opportunities to commence services here in the coming years and we are putting the case together, very effectively."
