ACT signs up for Asset Recycling Initiative

ACT signs up for Asset Recycling InitiativeThe Commonwealth Government has signed the first of its asset recycling agreements with the ACT Government and will undertake a scoping study into the divestment options of six Commonwealth properties in Canberra.Federal Treasurer Joe Hockey and ACT Chief Minister Andrew Barr signed the first agreement late last week under the Abbott Government’s Asset Recycling Initiative.Under the scheme, the ACT Government is eligible for a 15 per cent bonus from the federal government when the ACT sells surplus assets to pay for new infrastructure. This sale, together with the bonus, will secure an estimated $4 million for infrastructure projects.”This is an exceptionally positive outcome for Canberra, and we applaud the ACT Government and the Chief Minister for progressing this important initiative,” said the Property Council ACT Executive Director, Catherine Carter.”This investment is timely, as it will enable essential new infrastructure to be built. Freeing up scarce government capital is important for all governments at the moment, especially in the ACT.”As the Chief Minister has said today, prudent asset recycling is an effective way to fund new public infrastructure. It’s also timely given the focus on the need for urban renewal in the Territory.”What’s more, this asset sale will provide the private sector with the opportunity to create exciting new precincts that better meet the needs of Canberrans in the twenty first century.”Carter also welcomed the Finance Minister Mathias Cormann’s decision to include six buildings in the Parliamentary Triangle – the John Gorton Building, Treasury Building, East Block, West Block, Anzac Park East and Anzac Park West – in a scoping study looking at divestment options, and called for it to be extended further.”It is a sensible decision for the Commonwealth Government to divest itself of these ageing assets,” Carter said.”Building management is not a core function of government, and the private sector is better placed to own and manage assets on the government’s behalf.”The scoping study will consider future ownership and alternative uses for the properties, particularly noting their location and cultural and heritage significance.”We believe a divestment strategy should extend beyond these six buildings to the entire government portfolio, with the exception being strategically important assets such as Parliament House and buildings owned by ASIO and the Department of Defence,” Carter added.”Ageing building infrastructure is a strain on the Commonwealth Government purse strings. The property industry has the expertise and experience to better manage and maintain these buildings, and to ensure the Australian taxpayer gets best bang for its buck.”