New rules to force valuation of government land before sales in wake of Gillman deal

SELLING government-owned land without getting a proper valuation would be illegal under a proposal by Independent MP and former Valuer-General John Darley, in the wake of the Gillman deal.

The land at Gillman, which was sold to Adelaide Capital Partners.

• ICAC report blasts Gillman land deal
• Adelaide Capital Partners says Gillman deal will proceed
• Sacked Renewal SA boss could be called before inquiry
• Gillman land deal ruled ‘irrational’ by Supreme Court

SELLING government-owned land without getting a proper valuation would be illegal under a proposal by Independent MP and former Valuer-General John Darley.

He will draft legislation to tighten the rules on government land sales following the controversial deal to sell land at Gillman to private consortium Adelaide Capital Partners without going to tender.

In that case, the State Government’s land renewal agency did not obtain an up-to-date or fit-for-purpose valuation of the land.

Mr Darley’s Bill would require the Government to obtain the market value of the land, as defined by the Australian Property Institute and determined by the Valuer-General.

He said it should also take into account future potential use or other circumstances “which may affect the value of the land” to ensure it achieved “true value” for taxpayers.

However, the move has been labelled “political opportunism” by the Government.

Mr Darley said the process “directly mirrors” rules set out in Government policy but he wanted to draft legislation “to ensure government follows its own rules” after questions were raised over the Gillman deal.

Independent upper house MLC John Darley.

“You would have to allow still for unsolicited bids (like that put forward by ACP for the Gillman land) but if the Government is going to consider those, they would have to go through all the steps to make absolutely sure they weren’t overlooking something,” Mr Darley said.

He hoped to introduce legislation to State Parliament early next year.

Premier Jay Weatherill has previously said that reaction to the Gillman deal had made companies wary of submitting off-market bids to Government.

To address this, late last year the Government released new regulations which continue to allow exclusive deals with companies that make unsolicited bids but now provide one portal for all lodgements and replace multiple guidelines used by departments with a single set of clear rules.

Independent Commissioner Against Corruption, Bruce Lander, acting as the Ombudsman, examined the Gillman deal.

A Government spokesman said Mr Lander “noted all relevant steps taken by the Government to improve the process for unsolicited bids”.

“He cited these approvingly, making no recommendations for further changes to process,” the spokesman said.

“Seeing as the ... (policy) Mr Darley refers to allows for such off-market transactions, it is clear that this is little more than political opportunism.”

Asked if he was dissatisfied with the Government’s changes, Mr Darley said his legislation was “just going to make sure” it followed the rules.

Opposition Deputy Leader Vickie Chapman said the Liberal Party would “consider Mr Darley’s proposal”.

“But we need to ensure these types of rules don’t become overly prescriptive,” she said.

“You can’t legislate to prevent incompetence.

“The best way of ensuring we don’t have another Gillman situation is for ministers to keep out of the assessment of unsolicited bids.”