The ACT Government has released legal advice that it says justifies its bid to buy Calvary Public Hospital for $77 million.
Critics of the sale have argued the ACT Government might not have to pay the company for the hospital because the lease said the Little Company of Mary was not entitled to compensation if it surrendered or terminated the lease before it expired in 2070.
In 1971, the Commonwealth government gifted the Bruce hospital site and buildings to the Catholic health care provider, and since then Commonwealth and ACT governments have fully funded the hospital's operation. But ACT Health Minister Katy Gallagher provided The Canberra Times yesterday with a summary of advice from the ACT Government Solicitors received over the years, which she said refuted the claims.
''We don't normally release our legal advice, but it did come up through the community consultation, particularly from people who felt that LCM doesn't own it and we shouldn't have to pay for it,'' she said.
The advice concludes that unless the Little Company of Mary waives its right to compensation, it is entitled to payment for prematurely giving up its rights to the land and assets.
Ms Gallagher said the Government had in previous years asked the Little Company of Mary if it would surrender the lease without compensation, but it had refused.
The sale was dependent on the Government selling Clare Holland House to the company. She rejected allegations from the ACT Palliative Care Society that hospice was being used as a bargaining chip in the negotiations.
For more details on this story, pick up a copy of today's Canberra Times.