A former senior ACT government official has aired an explosive claim a union official may have tried to influence his decision-making on the controversial Dickson land swap deal with the Tradies Club.
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The former director of sustainable land strategy in the economic development directorate, Greg Ellis, made the claim during hearings of an ACT Legislative Assembly inquiry into the land swap on Wednesday.
The inquiry is examining the process surrounding the Dickson land swap after a scathing audit report earlier this year found the government may have relinquished up to $2.65 million of taxpayers' funds in the deal.
The land swap centred on the government selling a carpark outside the club to the club, with the club in return selling the government two blocks of land it owned nearby, during lengthy negotiations that were completed in late 2014.
Mr Ellis's claims came as former Land Development Agency chief David Dawes broke his silence on the deal to defend his reputation, despite being unable to recall many details.
Mr Dawes also told the committee he did not believe he gave directions to any staff to change the scope of the negotiations; but when pressed, said he was “making decisions, not giving directions” which he believed were different.
Asked about the departures from the original request for tender, Mr Dawes said it depended on what was meant by departure and that he agreed to disagree with the audit office on such matters.
Mr Ellis told the inquiry that while there was no direct pressure applied to him by any politicians, in a meeting with then club chairman Dean Hall, then also the ACT CFMEU secretary, Mr Hall had said the club wanted to win the tender, and claimed Mr Hall said he felt the government also wanted it to win.
Mr Ellis said while he believed Mr Hall’s suggestion may have been an attempt to influence his decision-making, it would not have changed anything, and he responded to the effect that if the club wanted to win, it had to have the highest bid.
Mr Hall did not respond to calls from The Canberra Times about Mr Ellis's claims on Wednesday, and the audit found no evidence of direct political involvement in the deal.
Mr Ellis also told the inquiry while the economic development directorate told the club it may only need to replace 84 car parks on the block, not the 154 originally envisaged, any such agreement was subject to the planning authority, which had not allowed the change.
He said he remained of the view the government got the better end of the deal for taxpayers, saying he disagreed with the audit office's report, and by his calculations the government was as much as $4 million better off.
The audit also revealed the government solicitor’s office had raised concerns with Mr Dawes and other senior staff about the concessions late in the negotiations, citing the changes as being so significant it meant the tender was by then essentially a direct sale.
But Mr Dawes said he had seen only one email about such matters, but no one raised it with him face-to-face and he had a good relationship with the government solicitor's office and would have expected the office to if it was an issue.
Mr Dawes said he also believed the deal was better value for taxpayers because with the extra blocks secured in section 72 Dickson, in addition to a block the government bought between the club's two blocks, the government could merge them all and have a block potentially worth more than $12 million.
Former Tradies Club chief financial officer Stephen Brennan also fronted the inquiry on Wednesday, telling the committee he was unsure exactly when the deal changed from the single carpark purchase to the wider land swap.
But he said it followed him hearing on the grapevine the government may have been interested in the club’s other two blocks in section 72 Dickson.
Pressed on the matter, Mr Brennan said it came to his attention through the club’s valuer for the land in the deal, Knight Frank, but he did not disclose the valuer’s identity.
He said the club didn’t agree to pay about $1 million more than its original offer in isolation, but rather after protracted talks led to the inclusion of the other two blocks and other changes.
“We were obviously prepared to pay a premium for the block, but we didn’t want the premium to be ridiculous either,” he said.
He said the club had been trying to get the car park land for up to 50 years, to amalgamate all its land in Dickson and redevelop it to ensure a stronger financial future for the club.
Asked whether the club had any other major business dealings at the time, Mr Brennan said the only one he could recall was its investment in the IQ apartments on Northbourne Avenue.
The inquiry continues.
