Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

when that lease—the lease which the ALP negotiated—returns to market in 2008, the current rental of $1,100 per square metre will fall to the market rate of $385 per square metre. In 2008 it will fall to a third of its current value. It is also estimated that this non-commercial rent has now creamed off $42 million from the Australian taxpayer for the Australian Labor Party. In 2004, when ALP Secretary Bob Hogg was asked why they had to negotiate such a rental for ALP Centenary House, he said that they had to have a high rental ‘because high interest rates in the early 1990s led us to lock in a 10-year rate deal with the banks at 13 per cent’. In other words, they thought the Labor Party would remain in office, so they locked in at 13 per cent, and because they locked in at 13 per cent they had to go above market—market being $385—to $1,100 a square metre.

Members of the House will know that recently I have been keeping company with rock stars. Last week I had a meeting with Bono. Earlier in the year I met Australian rock stars such as Athol Guy of the Seekers. I also familiarised myself with another rock star, who played with a band called Midnight Oil. I leave to Midnight Oil the last word on the $42 million of creamed-off rent. It is the lyrics of a song called Beds are Burning. Have a listen to this:

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