We’ve broken discussion on this item into 2 parts due to its length.

Hyams, Lipshutz and Esakoff declared an ‘indirect conflict of interest’. Magee moved an alternate ‘motion/recommendation’ apart from ‘noting the report’. Also included was that the Minister for Crown Lands be approached and asked to ‘take over’ lease negotiations with the MRC; for the Valuer General to review the leases ‘before it gets signed’ and to complete a ‘review of all current leases’. Magee also asked for a ‘review’ of the landswap and that the Auditor General ‘conduct an audit performance’. He also wanted government to go back to the Select Committee Review and consider their recommendations. Delahunty seconded.

MAGEE: said the issue was ‘complex’ and that he’d been a trustee, chairman of the trustees and also on the lease committee. Stated that he’s a ‘hoarder’ and kept a lot of information. This was a ‘serious’ matter and wanted a ‘serious’ response from minister and government. The Trustees are about to ‘enter’ into a 21 year lease with the MRC and ‘that’s fine’ but ‘when you look at’ history’, ‘makeup’ and ‘track record’ of the Trustees then it isn’t fine because since some of the trustees are members of the MRC then they are ‘adjudicating on a lease to themselves’. He also thought that ‘at least 2 other members’ belong to the MRC. This makes him think that there is some conflict of interest. Quoted from the minutes of a Trustee meeting from 2011 where (reading) it said that Magee raised the issue of conflict of interest and the resolution was that ‘advice’ be sought from the Government Solicitor. They got an answer and Magee quoted again and paraphrased from the long letter that ‘the public can reasonably form the view that conflict exists’. Also mention of ‘improper influences’.

Went on to say that the current chairman also tabled documents at meetings  that ‘he believes’ that there was a conflict of interest with the MRC members. The chairman (Greg Sword) ‘also sits on the lease committee’. So even though they ‘know’ there is a conflict of interest ‘the process continues’.

Stated that the trustees do include ‘experienced’ and ‘decent’ people. Referred to the landswap from 2009 of the ‘Tabaret carpark’ and the land at the end of Glen Eira Road was part of the deal. The Trustees ‘might have’ thought this was a ‘good deal’ and voted for it.

AT THIS POINT PILLING SAID THAT MAGEE HAD ‘REACHED’ HIS FIVE MINUTES. MAGEE ASKED FOR AN ‘EXTENSION OF TEN MINUTES’. Pilling said that he would give Magee 2 minutes. Magee said that after all these years, this is ‘a very serious issue’ and wasn’t happy with 2 minutes. Also said that he thought it was ‘incumbent on me to explain’ all the information that he’s got. Pilling then stated that he was worried about other councillors getting a say. Delahunty then moved that Magee gets a 10 minute extension. This was seconded by Lobo. Put to the vote and PILLING USED HIS CASTING VOTE TO DEFEAT THE MOTION. VOTING FOR: Lobo, Magee, Delahunty. Against: Okotel, Sounness and Pilling. (Mutterings from the gallery at this point!)

Magee then continued for a lesser time allocation after Delahunty moved another motion.

MAGEE: quoted again from the minutes relating to the landswap where he raised the issue of the ‘status’ of the landswap and whether it would be ‘returned to the Crown’. Said that this means that the Trustees ‘had no idea what they were voting for’ and that they were ‘giving away 8500’ sq metres and they ‘got back nothing’. The trustees job is to ‘protect the reserve’ and all they’ve done is to ‘give away 8500 square metres’. Magee then read from the minutes his question as to whether the landswap or any part of it was to ‘become part of the reserve’ and whether they knew. ‘No’ was the answer. Magee then asked the rhetorical question about how they could be responsible for land that they ‘gave away’ without even knowing they’d given it away. Also asked what they thought at the time and what advice they’d been given and which of the trustees who voted for and against the landswap. Magee said that he asked this 3 times wanting to see the minutes of these meetings. THEY COULDN’T FIND THE MINUTES – ‘THE MINUTES HAD BEEN LOST’. So here’s a ‘group’ about to sign a 21 year lease for a 2 billion dollar asset and they can’t even do the proper paperwork. Magee then cited 2010 minutes on ‘2 leases’ where there hadn’t been ‘any advice on what the value was’. These leases and the relevant paperwork also ‘couldn’t be located’ he read from the minutes. Amazingly the trustees end up asking the ‘person they leased it to, to give them a copy’. The lease for Aquinita Lodge to the Freeman Brothers was also incapable of ‘being located by the Trust’. Said that the Trustees ‘are not capable’ of administering the reserve and ‘doing the right thing’.

Said that when he became chairman the first question he asked was ‘what is the racecourse worth?’ They asked the Valuer General who recommended a certain company who has done leases for big sites like Southbank etc.Magee then itemised some of the leases – ie Grandstand – $45,000pa.

Pilling then told Magee that his 5 mintues are up and that he should ‘consider other councillors’ and that he’s got the 3 minute summation time ‘at the end’. Magee said he would be ‘as quick as I can’.  Delahunty then moved that Magee be given 2 minutes extension. Seconded by Lobo. This time only Okotel and Pilling voted against.