Iemma Govt Set To Waste Nearly $50 Million Of Taxpayer's Money On Pricey Deal 
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Friday 6 July Shadow Minister for Commerce Mike Baird today said a new lease for NSW Ministerial offices in Governor Macquarie Tower meant taxpayers would fork out $42 million more for Sydney CBD rent than was necessary. A 2002 Labor Government contract to extend the lease over office space in Governor Macquarie Tower from 2007 to 2014 set the cost of the lease for the period at a variable rate, exposing taxpayers to huge jumps in rent. "Morris Iemma was the Minister personally responsible for the negotiation of this contract as then Minister for Public Works and Services," Mr Baird said. "In late 2001 Morris Iemma boasted about supposed savings he'd achieved in his portfolio when in reality he was about to oversee a contract that would leave taxpayers vulnerable to huge rent increases," he said. "The Iemma Government has not yet revealed details of the final rent cost but based on current market rates the new rent is expected to be at least $700 per square metre. "Successful companies like Stockland operate effectively while paying just $428 a square metre for CBD offices. "Morris Iemma's rent deal is about 70 per cent higher than what some of the biggest corporations in the world pay for Sydney office space. The new contract also allows the rent to increase three times in the next seven years while the owner is protected from significant rent discounts. "The deal is symbolic of a Government more worried about itself than the interests of the people of NSW. "We wait to see what the final lease outcome is but conservative estimates show that over the next seven years this government will be paying close to $50 million more rent than some of the biggest corporate names in Australia and the world." Add to:          Write Comment
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