Opposition Spokesman for Integrity of Government, Mr. Andrew McIntosh today called on the Premier of Victoria, John Brumby, to stop the Kew Cottages development until the Premier can provide the promised financial benefits to services for the disabled.
Mr. McIntosh said that the first Stage of the development was supposed to have realised a profit of $6.1 million, but had sustained a loss of some $17 million.
“The Government must be the only body on earth that could sell a house/land package in a rising market in Kew and make a loss”, he said.
The Financial Model for the development had projected costs of $48.6 million dollars to be spent by the end of 2008. However, that has now doubled to over $100 million for building 55 private houses on this prime real estate ! The Government alone has sustained a loss of $300,000 per house,” he said.
“The Government’s commitment to use all of the profits for the disabled as a rationale for the sale has not eventuated because of the unbelievable rise in costs…It seems that the disabled will again miss out because the land is not being appropriately used”, Mr. McIntosh said