Centenary House
Encyclopedia
Centenary House is a building in Canberra
, Australia
. It is the national headquarters of the Australian National Audit Office
(usually known as the ANAO, a Commonwealth Government entity). The building was owned until July 2005 by John Curtin House Limited
, an entity wholly owned by the ALP. The leasing of part of Centenary House to the ANAO was the subject of political controversy for more than ten years.
Centenary House was built in 1991 and the ALP (through Lend Lease, a property company) negotiated a lease with the ANAO. This lease began on 23 September 1993, for 15 years (that is, it is to conclude on 23 September 2008).
The total area that was leased was 6,297 square metres. In 1993, the rent to be charged was $367.95 per square metre. Due to a "ratchet clause", which specifies that the annual rent would increase by 9% or market rates (whichever is the greater), in 2004 the annual rent is $949.47. The current estimated market price(1) in Canberra for rented space is $330.00.
The Federal Opposition (the Liberal
-National
Coalition at that time) demanded an enquiry to what they saw as a "rort
" and the Keating
ALP Government set up a Royal Commission
.
The Royal Commission (headed by Trevor Morling QC) found that the rent charged "was a fair market rental for accommodation in a building such as Centenary House. This was supported by extensive market evidence and there is nothing to suggest that it was excessive". The ratchet clause was also found as justified because it was "well supported by historical rent movements" and that "the length of the term is not disadvantageous to the Commonwealth".
A second Royal Commission was appointed by the Howard
government, and during 2004 Howard government ministers, particularly Tony Abbott
, repeatedly accused the ALP of improperly profiting from the alleged "rort" of the lease. The Royal Commission reported in December 2004.
The report of the Royal Commissioner, Hon David Hunt, AO QC, found that the original inquiry was inadequate. It found that the rent was excessive and should not have been entered into by a prudent government. The report was critical of several public servants, but did not make any findings of corrupt conduct by John Curtin House Limited or the Australian Labor Party.
In July 2005 the ALP National Secretary, Tim Gartrell
, announced that the building had been sold for more than $30 million. http://www.abc.net.au/worldtoday/content/2005/s1408413.htm
Canberra
Canberra is the capital city of Australia. With a population of over 345,000, it is Australia's largest inland city and the eighth-largest city overall. The city is located at the northern end of the Australian Capital Territory , south-west of Sydney, and north-east of Melbourne...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. It is the national headquarters of the Australian National Audit Office
Australian National Audit Office
The Australian National Audit Office is the national auditor for the Parliament of Australia and Government of Australia. It reports directly to Parliament but is administratively located in the Portfolio of Prime Minister and Cabinet....
(usually known as the ANAO, a Commonwealth Government entity). The building was owned until July 2005 by John Curtin House Limited
John Curtin House Limited
John Curtin House Limited is a Canberra based holding company owned by the Australian Labor Party, named after the World War II-era Prime Minister and ALP member for Fremantle 1928-1945, John Curtin....
, an entity wholly owned by the ALP. The leasing of part of Centenary House to the ANAO was the subject of political controversy for more than ten years.
Centenary House was built in 1991 and the ALP (through Lend Lease, a property company) negotiated a lease with the ANAO. This lease began on 23 September 1993, for 15 years (that is, it is to conclude on 23 September 2008).
The total area that was leased was 6,297 square metres. In 1993, the rent to be charged was $367.95 per square metre. Due to a "ratchet clause", which specifies that the annual rent would increase by 9% or market rates (whichever is the greater), in 2004 the annual rent is $949.47. The current estimated market price(1) in Canberra for rented space is $330.00.
The Federal Opposition (the Liberal
Liberal Party of Australia
The Liberal Party of Australia is an Australian political party.Founded a year after the 1943 federal election to replace the United Australia Party, the centre-right Liberal Party typically competes with the centre-left Australian Labor Party for political office...
-National
National Party of Australia
The National Party of Australia is an Australian political party.Traditionally representing graziers, farmers and rural voters generally, it began as the The Country Party, but adopted the name The National Country Party in 1975, changed to The National Party of Australia in 1982. The party is...
Coalition at that time) demanded an enquiry to what they saw as a "rort
Rort
Rort is a term used in Australia and New Zealand.It is commonly related to politics, or, more generally, a financial impropriety, particularly relating to a government programme...
" and the Keating
Paul Keating
Paul John Keating was the 24th Prime Minister of Australia, serving from 1991 to 1996. Keating was elected as the federal Labor member for Blaxland in 1969 and came to prominence as the reformist treasurer of the Hawke Labor government, which came to power at the 1983 election...
ALP Government set up a Royal Commission
Royal Commission
In Commonwealth realms and other monarchies a Royal Commission is a major ad-hoc formal public inquiry into a defined issue. They have been held in various countries such as the United Kingdom, Australia, Canada, New Zealand, and Saudi Arabia...
.
The Royal Commission (headed by Trevor Morling QC) found that the rent charged "was a fair market rental for accommodation in a building such as Centenary House. This was supported by extensive market evidence and there is nothing to suggest that it was excessive". The ratchet clause was also found as justified because it was "well supported by historical rent movements" and that "the length of the term is not disadvantageous to the Commonwealth".
A second Royal Commission was appointed by the Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....
government, and during 2004 Howard government ministers, particularly Tony Abbott
Tony Abbott
Anthony John "Tony" Abbott is the Leader of the Opposition in the Australian House of Representatives and federal leader of the centre-right Liberal Party of Australia. Abbott has represented the seat of Warringah since the 1994 by-election...
, repeatedly accused the ALP of improperly profiting from the alleged "rort" of the lease. The Royal Commission reported in December 2004.
The report of the Royal Commissioner, Hon David Hunt, AO QC, found that the original inquiry was inadequate. It found that the rent was excessive and should not have been entered into by a prudent government. The report was critical of several public servants, but did not make any findings of corrupt conduct by John Curtin House Limited or the Australian Labor Party.
In July 2005 the ALP National Secretary, Tim Gartrell
Tim Gartrell
Tim Gartrell is the former National Secretary of the Australian Labor Party.Born and raised in Orange in Central Western NSW, he worked as an advocate and researcher for the Australian Services Union and the Construction Forestry Mining and Energy Union while studying politics part-time at the...
, announced that the building had been sold for more than $30 million. http://www.abc.net.au/worldtoday/content/2005/s1408413.htm