Moreton Bay councillors to vote on establishing a private body to govern the Petrie mill site

An under fire council north of Brisbane is considering the creation of a corporate body to govern the ‘new Silicon Valley’, though the move has raised concern over corruption risks.

Concept design of future development at the Petrie Mill site, including USC Moreton Bay.

A MOVE by an under fire council north of Brisbane to create a corporate body to govern the site dubbed the “new Silicon Valley” has sent alarm bells ringing.

Moreton Bay councillors will tomorrow (Tuesday) decide whether to “protect” the Petrie mill precinct by establishing a beneficial enterprise over those sections owned by the council.

RELATED:

● Moreton Bay councillors vote masterplan for Petrie mill site

● Harmful PFAS chemicals at former Petrie paper mill site

The move would effectively preserve outgoing mayor Allan Sutherland’s vision for the site and shield it from any future council’s efforts to sell off the land to developers.

However, council-run beneficial enterprises have also been identified by the Crime and Corruption Commission Queensland (CCC) as having a heightened risk of “serious corruption”.

Deputy Premier Jackie Trad and Moreton Bay Mayor Alan Sutherland announce the former Petrie paper mill site and its surrounds as Queensland’s next Priority Development Area. Photo: Claudia Baxter

A beneficial enterprise is effectively a corporation, operating outside of council’s immediate control, that can be established under the Local Government Act.

During a recent visit to the site by potential investors, Cr Sutherland said the mill was a place for innovation, employment and learning, not big box retail.

“We’re working with the state government and others at the moment to ensure the future of this site remains strong for now and in the future,” he said.

Full Digital Access: $5 per month for the first 3 months (conditions apply)

“After all, this site belongs to the people of Moreton Bay. It belongs to the region, it belongs to the people of southeast Queensland.”

It was a sentiment echoed by Queensland Attorney-General Yvette D’Ath who agreed they needed to protect the site.

“You need to preserve it for learning and not allow it to be encroached on simply for commercial reasons,” she said.

Development scheme map showing the five different sections of the Mill at Moreton Bay PDA.

As part of its report into corruption in Ipswich City Council, dated August 2018, the CCC raised concerns about beneficial enterprises being owned by councils, calling for further review into the practice.

“Council-owned companies are not subject to the same level of transparency, oversight and accountability as council operations and local government employees,” the CCC report stated.

It stated this lack of transparency allowed senior members of Ipswich City Council to “make decisions about the expenditure of council funds to allegedly benefit themselves and their close associates”.

The CCC was also concerned that because these types of governance bodies were not classified as units of public administration, it did not have the jurisdiction to investigate any allegations involving the body or its directors.

It was unclear at this stage who would be on the board of the beneficial enterprise overseeing the mill, however the council would initially appoint the CEO as its initial director.

Though the council was yet to appoint a permanent CEO.

Mayoral candidate Dean Teasdale said Moreton Bay Council’s new CEO would also become a director of a private company.

Deputy Premier Jackie Trad and Moreton Bay Mayor Alan Sutherland announce the former Petrie paper mill site and its surrounds as QueenslandÕs next Priority Development Area. Photo: Claudia Baxter

“This will be a beneficial enterprise of Council with a specially selected board of director mates no doubt.

“The CEO will not only become a developer via the private company but they will also assess the development applications put to council.

“This was always going to be an issue with council having no real business playing developer ever.

“In my opinion this is a thinly veiled attempt to put council’s actions beyond the reach of the local government legislation.”

The council has indicated that the board of directors for the company would be appointed by an independent recruiter.

Moreton Bay councillors will vote of establishing a beneficial enterprise over the Petrie paper mill site. picture: David Alexander

It was not clear if Cr Sutherland would nominate to be on the board, given his involvement in creating the mill precinct in the first place.

A council report stated the beneficial enterprise would provide corporate governance and risk management and maximise investor confidence in the site.

It stated the body could be of benefit the whole region because it would optimally develop the area to increase the chances of creating the estimated 6000 jobs at the site and generate almost $1 billion economic benefit.

Councillors will vote on the matter at Tuesday’s council meeting and it is understood that not all councillors were in favour of the motion being approved.