Assembly Misled Over Quarry Sale

Wayne Berry - Opposition Spokesperson on Employment

Media Statement - 2 August 2001

The ACT Legislative Assembly has been misled over the disposal of its interests at the Williamsdale Quarry, Labor Shadow Employment Minister Wayne Berry said today.

Mr Berry's statement follows the revelation in correspondence from Totalcare confirming full ownership of the licensing agreement and the rights to the profits for the extraction of quarry products from the site at Williamsdale NSW. 50% of the licensing agreement and the rights were disposed of at the direction of the ACT Government for $3.8 million

"In an attempt to explain away the breach of the requirement to have the approval of the Assembly for such a disposal, Mr Humphries said of Totalcare in the Assembly, 'They acquired a 50% holding in the Williamsdale Quarry', inferring that the disposal was an acquisition and did not require the approval of the Assembly.

"The facts speak for themselves - the Government, through Totalcare, had a licensing agreement which gave it 100% of the rights to the product and profits of the quarry and it now only owns half of the main undertaking

"Totalcare told Mr Humphries in December 1999:

• 'As part of the joint venture agreement Totalcare will expect the joint venture partner(s) to pay an up front fee for Totalcare's intellectual property and licensing agreement to develop the quarry.'

"The joint venturer paid $3.8 million in return for Totalcare's 'intellectual property and licensing agreement' and half the rights to the product and profits. In other words half of the undertaking has been disposed of.

"According to Totalcare's Business Plan, the projected profits over the first 5 years amounts to $9 million - so $4.5 million in projected profits from the quarry production have been disposed of.

"Yet Mr Humphries wants us to believe his version of events where an acquisition means that you end up with half of what you started with.

"Every time the ACT Liberal Government does business visions of the Bruce Stadium fiasco arise. And as the facts emerge about the Williamsdale Quarry it is no wonder that the Government wanted to avoid Assembly scrutiny over this deal," Mr Berry concluded.