[Greens-Media] Tas Greens_RBF Super Funds - Bartlett Refuses Independent Airport Valuation_K Booth MP

[greens at parliament.tas.gov.au]

HAVE RBF SUPER FUNDS BEEN TURNED INTO MASSIVE PORK BARREL?

Question Remains As Bartlett Refuses To Provide Independent Valuation Of
Hobart Airport

Kim Booth MP
Wednesday, 15 October 2008
Contact: State Parliamentary Offices of the Tasmanian Greens, (03) 6233
8300

www.tas.greens.org.au


The Tasmanian Greens today in Parliament raised the serious matter of
the value received by public servant superannuants with the recent
purchase of the Hobart Airport by public service super fund
administrator Retirement Benefits Fund (RBF), in light of concerns of
the global market and potential impacts upon superannuation.

Greens Member for Bass Kim Booth MP said that the Hobart Airport had
been taken over by the Lennon Labor government from Hobart Ports,
following which the RBF then bought the Airport from the government for
$350 million, when at the time the government expected to only receive
$70 million, and said that he was deeply alarmed at the price paid by
the RBF and that he is concerned that the Labor government had turned
superannuants money into a massive pork barrel.

MR Booth also said that since the announcement of the huge sale price,
RBF members have expressed alarm at the discrepancy between the
valuation and the price paid, and what this ultimately would mean to the
value of their hard earned super at retirement.


"Premier Bartlett's refusal to provide an independent valuation for the
Hobart Airport only fuels the fears of public servants that their hard
earned retirement money has been converted into a massive Labor pork
barrel which is being spent on politically motivated projects such as
the irrigation developments and of course rumoured to have been spent on
Gunns pulp mill pipeline," Mr Booth said.

"I have seen an actual bid, constructed with full commercial due
diligence and it was under $100 million."

"Even allowing for an increase in value, by increasing parking charges
and other measures to realise maximum return, the commercial
calculations I have seen, give an absolute maximum asset value of the
airport of between $120 to $160 million - a whopping $200 million plus
discount on what RBF paid."

"Although Premier Bartlett smugly gloated that the State government had
done very well out of the deal, it is for the superannuants that I am
concerned, as they will get cold comfort watching their hard earned
dollars turned into a massive pork barrel to assist Bartlett Labor to
maintain the charade of prudent fiscal management." 

"The State Labor government has a massive conflict here as the
responsible custodians of the RBF superannuation funds and yet here they
are flogging their own asset (the Airport) into the fund at what appears
to be a massively inflated price."

"Premier Bartlett must now provide an independent valuation of the
Hobart airport to prove that the price paid was fair value." 

"Otherwise all public servants will remain seriously alarmed about
Bartlett Labor's intentions with their retirement money," Mr Booth said.




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