A few days ago Kim Booth raised some concerns with the sale of the Royal Derwent Hospital in the Tasmanian Parliament and has asked some very serious questions about people who were involved. It has long been understood that the sale price realised was a fraction of the valuation but after the Attorney Generals report things settled down for some time. “Conclusion of collusion or corruption” questions and statements and demands for answers may see an inquiry opened into the sale and documents revealed that back these claims. We will keep an eye on this story.

Hansard Wednesday 26th November 2014

Mr BOOTH – I want to quickly raise another matter which is to do with the Royal Derwent Hospital sale, or Willow Court, as it is known. Members will recall in about 1998-99 the site was tendered out and at that time had a valuation of something like $34 million. I have seen a large amount of documentation regarding what can only be described as a tragic loss of what was possibly the most expansive and intact piece of Australia’s early colonial history. An ugly and sad history it was, but notwithstanding a very important and valuable piece of public property. The site has been stripped, buildings burnt down and other infrastructure sold off for a peppercorn sum to private individuals who have walked away with $23 million-odd, I am advised, for an investment of virtually zero. The question that must be asked or answered is: how could this possibly have happened? It is my understanding, and I have seen documentation, that two people who were intimately involved with the valuation and disposal of the Royal Derwent Hospital site, working for the government at the time and involved in the valuation of the site and recommendation to sell and who to sell to and witnesses to the minister’s signature on sale, ended up as shareholders of the company that ended up the beneficial owners of the site or part of the site. documents reveal that one of them resided at the same address as (name removed ED.), the proponent and ultimate beneficiary of this sale of the assets to the tune of $12 million that apparently was (name removed ED) taking. (Name removed) apparently took $5 million for Derwent Valley Investments, which was the council private business taking $7 million. This was a site that was valued at $45.58 million, later devalued to $23 million, I understand, on the recommendation of one of the individuals who ended up on the company that owned it after they left the Crown’s employ. The entire site was conservatively valued at $23 million and at a later point in time was sold for only $350 000 net after a $200 000 grant provided by the government. It was financed without security I understand, with a loan to (name removed ED) unsecured to a consortium made up of the above, which was not registered until four days after the loan, and I understand there was no security when that money was advanced. The whole thing has a very serious stench about it, particularly when you look at the state of that complex. Some of the buildings are in an appalling state of repair. Some have been damaged and stripped and I understand the assets contained within the property were sold for something like $1.7 million, which were the chattels containing some very historic and valuable pieces of architecture and furniture, for a property that was valued at $23 million but sold for $350 000. Ultimately the history of that needs to be detailed more fully to the House so members can understand whether there needs to be a parliamentary inquiry into this matter and whether the matter I have raised leads to the conclusion of collusion or corruption. There is certainly a very big question mark over the whole nature of the way that site was disposed of. Who were the ultimate beneficiaries and what has happened to the site now?

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