One billion dollar gift to Lend Lease from the people of NSW

November 29, 2011 MEDIA RELEASE
Evidence has emerged that the Barangaroo tender process amounted to a billion dollar gift to Lend Lease by the former NSW government.

In a speech to the NSW parliament on Friday, Greens MP Jamie Parker said that the people of NSW have been short-changed by around $1 billion, indicating a flawed tender process with this once in a generation opportunity.

"It appears Lend Lease has paid between 1/2 and 1/3 of the true value for the land, costing the NSW government and tax payers somewhere between $700 million and $1.4 billion," said Mr Parker. 

"The Keneally Government continually refused to disclose the exact amount Lend Lease paid for the land or even to commit that the narrow tender process achieved a fair and reasonable price for the land.

"The O'Farrell government has an obligation to examine the Lend Lease contract for Barangaroo to establish whether it allows for a fair value review of the approved contract.

"Reviews of the Barangaroo transaction have only examined the tender process. There has been no scrutiny on whether fair value has been obtained for the people of NSW.

"The government should review whether the board of the Barangaroo Delivery Authority and others involved in the tender process knew of this under market result when they approved this deal.

"The complete failure of the tendering process has seen a billion dollar gift from the people of NSW to Lend Lease. The government must now act to ensure that this once in a generation opportunity isn't just a gift to Lend Lease.

"I am calling on the Premier to thoroughly review this transaction to give confidence to the people of NSW that fair value has been obtained. 

"I have also referred this matter to the Auditor General," Mr Parker said.

SMH: Call to scrutinise Barangaroo deal


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