Attorney-General
Philip Ruddock MP

Media Release 099/2004

20 June 2004

INQUIRY TO EXAMINE CENTENARY HOUSE LEASE

Attorney-General Philip Ruddock today announced the Government will recommend to the Governor-General in Council the establishment of a Commission of Inquiry to examine the Centenary House lease.

The Inquiry is being established following a motion passed by the Senate on 4 March 2004. The motion, introduced by Senator Murray, called on the Government to instigate a review of the findings of the Royal Commission into Leasing by the Commonwealth of Accommodation in Centenary House conducted in 1994, in the light of later evidence, particularly with regard to movements and trends in commercial rates and leasing arrangements since 1994.

The Inquiry would be able to draw upon valuation expertise as suggested by the Senate resolution.

The Attorney-General said royal commission powers and immunities would be given to the Inquiry to allow it to fully investigate the lease arrangements. The powers would enable the Inquiry to require witnesses to attend, answer questions and produce documents.

The Government will recommend to the Governor General in Council that former judge, the Hon. David Hunt AO QC, be appointed to head the Inquiry. The Inquiry will be provided with a small legal team, including counsel assisting.

Mr Hunt is a former Chief Judge at Common Law of the Supreme Court of New South Wales. He recently completed a term as Judge of the Appeals Chamber for the UN International Criminal Tribunal for the former Yugoslavia. Further details concerning Mr Hunt are attached.

Mr Ruddock said the Government was concerned to ensure that the Inquiry could be conducted in an independent, timely and comprehensive manner, and would recommend that the inquiry complete its report within three months.

Terms of reference for the inquiry will be released following consideration by the Governor-General in Council later this week. The expected focus of the Inquiry is outlined in the attachment.

Media Contact: Charlie McKillop Parliament House Phone (02) 6277 7300 Fax (02) 6273 4102

www.law.gov.au/ag

 

The Honourable David Anthony Hunt AO QC

International Judicial Activities

• 2001-2003: Judge of the Appeals Chambers of the UN International Criminal Tribunal for the former Yugoslavia, The Hague
• 2000-2001: Presiding Judge of Trial chamber II of the Yugoslavia Tribunal, The Hague
• 1998: Judge of the Yugoslavia Tribunal

Supreme Court of New South Wales

• 1991-1998: Chief Judge at Common Law
• 1979-1998: Judge

Law Reform Commission (NSW)

• 1992-1999: Part-time Member of the NSW Law Reform Commission

Counsel

• 1958-1979
• 1975: Appointed Queens Counsel in New South Wales
• Subsequently appointed Queens Counsel in Victoria, Queensland, ACT

 

PROPOSED FOCUS OF INQUIRY

The inquiry is expected to focus on whether:

• having regard to current property market conditions, the Centenary House lease is in line with current comparable arrangements;
• the terms of reference of the 1994 inquiry could have been better designed to elicit information relevant to the Centenary House lease;
• the 1994 inquiry was properly resourced to carry out its functions;
• movements in commercial leases since 1994, or any other matters, cast new light on the findings of the 1994 inquiry;
• Commonwealth agencies gave or received proper advice on:
  o the term of the lease;
  o the effect of the 'fixed rent escalator';
  o the absence of an adequate 'market review' mechanism;
  o market conditions; and
  o other relevant matters;
• the government leases used for comparison purposes provided a reasonable basis of comparison;
• in light of any new information, there were payments or inducements offered in relation to the Centenary House lease which raise issues of impropriety.