Glenn Sterle (WA, Australian Labor Party) Share this | Hansard source

Thank you, Senator Bullock—Pilbara. It has had a few name changes. Karratha is in Pilbara. I will give the Senate some time lines to paint the picture of how this pong is starting to take shape. On 25 March 2010, in a joint Mr Barnett-Mr Grylls media statement, Finbar, a development company, was named as the preferred developer for a Karratha high-rise project, to be called Pelago West. According to the media statement:

Pelago West, rising eight stories, is the first stage of the $225 million project, which will eventually comprise 292 residential apartments and 22 commercial lots with mining projects in close proximity and offering some residents sweeping views of red desert, the nearby Karratha Hills and Nickol Bay.

I am quoting the description by the minister and the Premier at the time. But on 21 April, about a month later, in parliament, Mr Grylls announced that LandCorp would sell two development lots in Karratha to Finbar as part of the deal. Mr Grylls said that the project would be delivered through the Royalties for Regions Pilbara Cities initiative.

In October 2011, 18 months later, a certain gentleman—I assume it is a gentleman; I apologise if it is not—Robin Vandenberg, who happened to be the National Party Karratha branch president and a local real estate agent, was appointed to the Pilbara Development Commission. There is a trend—it is coming. In June 2012, some nine months later, Pelago West opened and it was understood that the government had purchased 15 apartments. During the July 2014 state estimates, it was revealed that the Department of Housing was advised by Mr Paul White, who at one time was the general manager of commercial and business operations at the Department of Housing but in June 2014 was appointed acting D-G of the Department of Regional Development. I mean no disparity to Mr White; he is obviously competent and there is no doubt there. At estimates he answered a question, saying it was his understanding that 15 units were purchased in Pelago West, which is the first development. They were all occupied and continued to be occupied under the Government Regional Officers Housing program.

In the same month, on 18 June 2012, the business case for the Pelago East development—the one next to Pelago West—was approved by the Liberal-National Party cabinet. This business case included the intention to provide a portion of units under the shared equity scheme. In the same month, Finbar, the property developer, announced the release of Pelago stage 2-East. It was understood that the complex would have 174 residential lots and 14 commercial lots. At the same time, Mr Brendan Grylls, the Minister for Regional Development, said: 'Fifty apartments have been bought to house government workers like teachers and nurses, but this would be predominantly for nurses who would be needed for the new health campus.' On the surface it sounds great—no dramas. It was revealed later that the government purchased the 50 apartments for no less than 29,675,605 taxpayer dollars. The total cost, which included project management and legal costs, came to no less than 30,414,000 taxpayer dollars.

On 2 July 2012, the following month, Hanssen Pty Ltd, a building company in Western Australia, donated $50,000 to the Nationals. Hanssen Pty Ltd is the builder of the Pelago apartments. Since then, the Hanssen group have donated no less than $25,000 to the WA Liberals, in 2012-13, $50,000 to the Nationals and $25,000 to the Liberals. I am told very clearly that the Liberal donation of $25,000 was the first-ever Liberal Party donation from Hanson Pty Ltd. So there we go.

On 21 February 2013 Finbar, the property developer, donated $1,000 to the Liberal Party. Big deal. But three weeks later, on 8 March—which is one day before 9 March, for those of you who do not know, the Western Australian state election—Finbar found another $20,000 to donate to the Liberal Party. On 21 July 2013, at the state budget estimates, Mr Grahame Searle, Director General, Department of Housing, answered a question:

While Mr Whyte is finding the exact number, the percentage for growth has taken a while to settle down. We have been in a process of negotiating with departments as to who has a need in Karratha and what their need is. Some agencies have had a preference not to be in an apartment complex but rather as freestanding houses, and that has taken a while to negotiate out. So it has taken some while to finally determine the GROH position.

On the same day, Mr Searle answered another question, saying—