Landlord’s lease U-turn over Abbotsford Centrelink office revealed
The landlord of a Centrelink office flooded by out-of-work Victorians during the coronavirus crisis ignored the government’s requests for a lease extension after appearing to be willing to reach a deal.
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The landlord of a busy Melbourne Centrelink office ignored the government’s pleas to extend its lease during the coronavirus crisis until the day it was supposed to shut down.
Services Australia announced this week it was closing the Abbotsford office — the scene of lengthy queues when COVID-19 restrictions put Victorians out of work — with only one day’s notice.
Government Services Minister Stuart Robert was attacked by Labor frontbencher Bill Shorten and Greens leader Adam Bandt as the building’s landlord, Salta Properties, claimed it learned Centrelink was vacating on Twitter.
But documents obtained by the Herald Sun reveal the landlord indicated it was prepared to offer a three-month extension in late March, which Services Australia was willing to accept.
On May 4, the landlord told Services Australia an extension had not been agreed, and said it “rejects and withdraws from any negotiations or discussions concerning any potential further term” as it demanded payment of costs relating to the lease.
Services Australia claimed those charges were incorrect but paid a portion in an effort to resolve the dispute.
In one email, the government’s real estate agent requested the landlord “stay true to the mutually agreed extension”.
The agent argued terminating the lease would “place additional strain on the Commonwealth and mean that the clients accessing the site would need to travel further which in turn will add additional stress”.
“This is a sensitive time for the country … Services Australia provide an essential service and critical lifeline to the community,” the agent said.
On May 12, the landlord said the arrears payment was not enough, and rejected requests for a lease extension.
Salta Properties had claimed earlier this week that it remained “open, as it has all along, to allowing Centrelink to remain open at its current address under a lease extension”.
When Services Australia went public that the office was closing this week, the documents show the landlord verbally offered a three-month extension, which was locked in on Friday.
Services Australia general manager Hank Jongen said he was “disappointed this agreement couldn’t be reached sooner”.
A spokesman for Mr Robert said he “stands by Services Australia and its handling of what is a very difficult situation”
“It is disappointing Bill Shorten and the Greens choose to shoot first and ask questions later but it’s something we’ve come to expect,” the spokesman said.
Mr Shorten had described the closure as a “mongrel act” while Mr Bandt said it was “utter incompetence”.
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