Darwin businessmen John ‘Foxy’ Robinson and Nicholas Paspaley to sue Federal Government for $88 million over Wickham Point detention centre

PROMINENT developer and philanthropist John ‘Foxy’ Robinson and pearl magnate Nicholas Paspaley are suing the Federal Government for $88 million

The former Wickham Point Detention Centre near Darwin.

PROMINENT developer and philanthropist John ‘Foxy’ Robinson and pearl magnate Nicholas Paspaley are suing the Federal Government for $88 million.

Former Prime Minister Tony Abbott and Treasurer Scott Morrison are named as witnesses in a statement of claim relating to the former Wickham Point detention centre. The NT News can reveal another $10 million in “make good” of the facility will also be chased.

Documents lodged in the NT Supreme Court by Wickham Point Development, which is majority owned by Mr Robinson and Mr Paspaley, claim Mr Abbott and Mr Morrison gave commitments the $61 million purpose-built facility would receive a five-year lease extension after the initial lease expired in November 2014.

Developer John ‘Foxy’ Robinson

Nicholas Paspaley

The initial lease for three years plus a two-year option was negotiated under the Gillard Government’s watch. The facility had a rent of $22.8 million between October 1, 2015 to November 30, 2016.

Wickham Point was built in 2011 and handed to the Commonwealth the same year. It was built to handle the influx of asylum seekers which has all but stopped since the Coalition tightened Australia’s borders.

The court documents claim Wickham Point Development sought an undertaking from the Commonwealth the facility would be leased for at least 10 years before building the centre.

It has sat dormant for the past few months with no rent paid since the start of December 2016.

Mr Morrison, the then Shadow Immigration spokesman, allegedly gave an undertaking to Mr Robinson and Mr Paspaley in July of 2012 while still in Opposition that “if the LNP won government they would lease the facility for at least another five years after the first term expired.”

Then in December of 2013, after winning office, the statement of claim says Mr Morrison reaffirmed that commitment to Mr Robinson and Mr Paspaley at a meeting in Canberra saying the Commonwealth would lease beyond the first term expiry of November 7, 2014 and the facility would be the last onshore detention centre to be closed.

In 2013, changes were made at Wickham Point, taking it from an “immigration detention centre” to an “alternative place of detention.” According to documents, the costs were covered “without margins being added.”

The Commonwealth extended the 2014 lease end date to June 30, 2015.

Mr Abbott’s commitment allegedly came in February of 2015 at a function in Darwin. During the function he is alleged to have reaffirmed to Mr Robinson the lease would be extended a “further five years after the first term expired.”

In April 2015, the Immigration Department said they would ease the facility for a further 17 months from July 1, 2015 with a four-year option and the Commonwealth would exercise the option making the total extension five years and five months.

The commitments were all made orally, according to the statement which lists dates and who the conversations were with.

In May 2015, the lease was changed recognising the July 1, 2015 to November 30, 2016 and the second option to a term of four years starting on December 1, 2016 to November 30, 2020. But the statement of claim said the Commonwealth has failed to exercise its four year lease and has not paid rent on the facility since December 1, 2016.