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Killalea resort in spotlight

14 Mar, 2008 03:00 AM
Wollongong's corruption and developer donation scandal has inspired Illawarra communities fighting projects such as the Killalea State Park resort to renew their protests.

A public forum will be held at Shell Cove on Monday night in response to Illawarra developments, political donations, Independent Commission Against Corruption (ICAC) recommendations, and their implications regarding planning reforms.

Greens MLC Sylvia Hale will speak about Killalea. Other speakers include representatives from Sydney's Total Environment Centre, Healthy Cities Illawarra and the South Coast Labour Council.

The forum, organised by the Illawarra Community and Environment Connection, is at the Links Golf Club at 7pm.

Albion Park resident Sonya McKay said the discussion would also address developments such as Sandon Point.

She said corruption prevention could include improved community participation, use of independent hearing and assessment panels for advice, and a tribunal system open to appeals from objectors for major developments.

The Mercury reported in February that Babcock & Brown, the company to be leased three chunks of Killalea land from the State Government, tripled its NSW ALP donations to $103,000 last year, while leaving its smaller Liberal Party contribution unchanged.

The ICAC hearings into Wollongong developer relationships with ALP politicians led to Premier Morris Iemma beginning developer donation reform.

Killalea opponent Mark Paloff, of Fairy Meadow, said the unprecedented commercial lease of Killalea should be re-examined while the spotlight was on developer contributions.

When the Mercury raised the donation issue last month, a spokeswoman for Mr Iemma said he and his ministers did not base decisions on who donated to the party, as they were unaware of donation details.

A Babcock & Brown spokeswoman declined to comment, except to note the figures included lunch and dinner functions.

In April last year, NSW Lands Minister Tony Kelly signed an agreement to lease Crown land for 52 years to Killalea Coastal Investments.

The company was formed by Babcock & Brown and Mariner Financial to develop a private resort that includes 202 residential lodges, swimming pools, tennis courts, restaurants and a conference centre.

More than 12,000 signatures opposing the lease of the Crown land were tabled in Parliament last year, and now community members are keen to get organised to tackle the next stage.

The Killalea developer has been in talks with the NSW Planning Department and has asked for the resort to be assessed by the Government as a major project, instead of going to Shellharbour City Council.

A department spokesman said the proponent had been asked to provide more details.

Meantime, a Killalea Coastal Investments spokesman said a project application would be lodged within the next 10 weeks. But this relies on Planning Minister Frank Sartor declaring it a major project.

Australian Electoral Office figures reveal Babcock & Brown donated $53,000 to the NSW ALP in the months leading up to the Killalea lease being signed. Nine days after the agreement to lease was signed, the ALP received $20,000. In June, at the height of community protest, the company donated $30,000.

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