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Legal advice backs Calvary bid

04 Nov, 2009 08:17 AM
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.

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Date: Newest first | Oldest first
No problems with the purchase - religious organisations shouldn't deliver key ACT public health provisions. Big problems with the cynical Clare Holland House trade-off - religious organisations shouldn't deliver key ACT public health provisions. Just like Calvary, can only lead to an expensive buyback of something that should never have been granted at all. How about actually doing the right thing by the majority, ACT Government?
Posted by Stephen, 4/11/2009 8:26:53 AM
I still haven't heard a good reason for the sale. As one person commentated: why fix it when it isn't broken? I think that the reasons for buying off the hospital are largely ideological on the part of the ACT government. I think diversity of service provision and general public life (be it in health or some other public area) makes for a healthier society than one in which the government continues to dominate more and more aspects of the public sphere - spending money that it doesn't necessarily have. Our politicians already wield too much power as it is.
Posted by Isaac, 4/11/2009 10:24:25 AM
Stephen, the Calvary Hospital was established by the Catholic nuns to offer medical support for ALL persons. I disagree with your comment stating it will only lead to an expensive "buyback"...there is no "buyback"; the government wishes to purchase a piece of infrastructure from another organisation. If one party wishes to sell something they created from scratch and another party wishes to buy, then why not.
Posted by James, 4/11/2009 11:03:20 AM
What is really happening about the purchase of Calvary? Is this about what is best for the people of Canberra or is it just bullying of the Little Company of Mary by Jon Stanhope and Katy Gallagher? Untill we are told the truth about the meeting Stanhope and Gallagher had with Bishops Mark Cloeridge and Bishop Pat Power, only then I can judge the stiuation by what I read eg the article in the Austrlian on the 31/10/09 by Angela Shanahan titled 'Sickness that curbs religious freedom'. Are Stanhope and Gallagher motivated by Ideological Zealotry? The taxes collected in Canberra are the property of the tax payers of Canberra, and should not be used for the promotion of the ALP or the Greens.
Posted by James ;p, 4/11/2009 11:58:14 AM
Why buy Calvary to refurbish etc? Why not just withdraw all funding and build and provide a completely new service hospital at Gungahlin? Makes sense to me.
Posted by Bernadette, 4/11/2009 5:26:21 PM
To Stephan, why shouldn't religious organisations deliver medical services - if they're doing a good job?
Posted by Platypus, 4/11/2009 10:19:53 PM

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ACT Health Minister Katy Gallagher addresses a public consultation meeting on the sale of Calvary Hospital last month. Photo: KARLEEN WILLIAMS
ACT Health Minister Katy Gallagher addresses a public consultation meeting on the sale of Calvary Hospital last month. Photo: KARLEEN WILLIAMS

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