ASF could sue state for millions
THE consortium behind the canned $3 billion integrated resort on The Spit is considering a multimillion-dollar lawsuit against the State Government.
“Deeply disappointed” ASF director Louis Chien (pictured) said last night. Mr Chien said he was told of the project’s axing only minutes before Premier Annastacia Palaszczuk’s announcement and the company was pondering whether to seek compensation.
Mr Chien said the ASF had invested “tens of millions of dollars” in the past four years – across two separate projects – and the State Government’s decision would have a chilling effect on large-scale investment in the city.
“This represents a loss to the Gold Coast and we are even more disappointed for the Gold Coast business community as well as the public in general,” he said.
“They miss out on a gamechanging development for the tourism industry which would have led to the renewal of ageing tourism assets.
“There will be a ripple effect which will have far reaches in the South East.
“This then brings into question any investment, foreign or domestic, or global brands to venture into the state of Queensland given the current climate.
“As for (our) further investment on the Gold Coast, if it is a viable option then it is in the mix but if not there are other options.
“We have projects in London, in NSW and resource interests elsewhere in Queensland and WA. Capital is fluid and it tends to flow.”
ASF first joined the integrated resort process in 2013 and were named in early 2014 as the “possible preferred proponent” for the project by the Newman Government, who failed to approve it.
Four months after the 2015 election, Labor canned the $7 billion development but soon after announced a process to allow ASF to look at developing a 5ha site on The Spit, the design of which was unveiled in December 2016.
Premier Annastacia Palaszczuk said the Government would consult with lawyers over what ramifications terminating their years-long agreement could hold for the State.
“I don’t have those details, that’s a matter of course that will be discussed with Crown law, but we’ve made this decision and I honestly believe that Cabinet has made the right decision,” she said.
“We’ve listened – a hallmark of my Government has been listening to the community and people have felt very strongly and very passionately about this area.
“We have a vision for this whole Spit for, not just decades to come, but also for the next century.”
State Development Minister Anthony Lynham said the Government had a clause in its contract with ASF that allowed it to back out – but he would not say whether it was conditional on compensation or other factors.
“We entered into a process deed with ASF and it was implicit in that process deed that the Government could terminate this contract at any stage,” he said.
“The people of Queensland, people of the Gold Coast, needed to see some plan in order to make a comment, so ASF was invited to put their preliminary plans and that’s what the people of Queensland saw.
‘The process deed is quite extensive, I have to be careful with how I answer (questions of compensation), but the process deed does allow the Government to terminate.”