House debates

Tuesday, 27 March 2018

Grievance Debate

Dunkley Electorate: Sport

6:33 pm

Photo of Chris CrewtherChris Crewther (Dunkley, Liberal Party) Share this | | Hansard source

There is $5.2 million of federal funds on the table to build basketball and co-utilised facilities, with four courts and a show court, with the intended site being Frankston basketball stadium. My predecessor, Bruce Billson, secured $4.95 million in 2015. With additional advocacy, I secured an extra $250,000, for retractable seating. This funding goes from the federal government to the council, for its intended use at the Bardia Avenue stadium in Seaford. This stadium is council owned and is leased to the Frankston and District Basketball Association, the FDBA. Council is the only one who will deliver this project, using federal as well as state, local and FDBA contributions.

However, over the last two years, there has been an ongoing, unresolved dispute between the FBDA and council over the stadium lease. Throughout this dispute, various federal project funding milestones were missed by council, so I have worked with various federal ministers to extend milestone deadlines—several times now—so that the federal funding wasn't lost. This was to give as much opportunity as possible for both parties to come to an agreement. Negotiations continued to fail. Then my predecessor, Bruce Billson, was sent in as an independent mediator. After a four-hour-plus negotiation, it appeared that agreement had been reached. This agreement, however, unravelled. Council's claim is that FDBA subsequently sent them a signed lease, where about 60 clauses had been changed from what was agreed at the Billson meeting. The FDBA claim the exact opposite. Council also requested full financials from FDBA, and the release of these was, I understand, agreed at the Billson meeting. These financials haven't been given. Prior to the Billson meeting, FDBA, I understand, didn't give their financials due to the request by council to receive six per cent of gross turnover as part of the lease. This gross turnover component was scrapped during the Billson negotiations, so I'm uncertain why financials still haven't been released.

In about November 2017, council then said they would no longer negotiate with FDBA's existing committee and executive. The federal minister then wrote to council saying there would be no more extensions on the federal funding milestones, and that council needed to submit a proposal on the use of funds by 30 March, or the funding would be lost. I provided FDBA with a copy of this letter. I immediately called a meeting of the two parties, which was then held, in the hope that the two parties would negotiate again. At this meeting I explained the three options available by 30 March. First, both parties would agree on the lease, and council would submit a proposal for basketball and co-utilised facilities at the existing stadium. Everyone agrees that this is the best option, including me, but, to be possible, it relies on a lease agreement between FDBA and council. Second, no lease agreement would be reached for the stadium, and council would submit a proposal for basketball and co-utilised facilities at an alternative site. I understand the likely proposal would be for the $5.2 million to go to basketball facilities at Jubilee Park—co-utilised for netball, indoor cricket and so on. Third, the funding would be lost back to the Commonwealth. I explained that any proposal submitted to the federal department must be substantially within the original scope. Council officers at this meeting agreed to put a request to councillors at the subsequent Monday meeting. Council then put out a media release stating they would not reopen negotiations.

Because I had many FDBA members and people saying to me that funding should not be spent anywhere else locally for basketball facilities if it can't go to the stadium site, as well as other people saying to me that it should at least be utilised for basketball and co-utilised facilities somewhere else locally if it can't go to the stadium site, I decided to gauge community opinion by running a survey on their preference for the second-best option on the use of the funds if a lease agreement is not reached. Opinion is largely in favour, at this stage, of an alternative site if an agreement on the lease cannot be reached, meaning the building cannot occur at the stadium. Following comments on this poll, on Sunday I went to Frankston stadium to speak and answer questions from FDBA members. I promised I would put in a request for councillors to come and meet with FDBA members themselves to explain why a lease agreement couldn't be reached. I did so via the mayor, but at this stage I'm still awaiting a formal response on the outcome. Members, committee members and the executive there also asked me to go out on a limb to save funds for the basketball site, given the deadline of 30 March.

That is part of why I'm speaking tonight. At this point in time, council will not negotiate with the existing committee and executive as it is currently constituted; however, there is a possibility they may reopen negotiations with a new committee and executive make-up. A change in this make-up is now the only possibility to resolve the lease and to enable the stadium site to be built.

Over the last few months, several FDBA members, and parents, have come to me asking for help on internal FDBA allegations. Council was also aware of these very serious allegations. These requests for help have only increased in the last week, with the 30 March deadline. I've agreed with these people to raise this in parliament, as many of these people have been threatened with defamation and more if they raise their concerns publicly. In addition to the lease dispute, this information—although it is not in the public realm—is a major factor as to why council will no longer deal with the existing committee and executive on the lease. I raise this under parliamentary privilege in the hope that action be taken so that council reopen negotiations with a newly constituted committee and executive. This is the only way to save the lease negotiations, and it is in the public interest to make this misconduct public.

First, it is alleged that a particular executive member used FDBA funds on their own private property for plumbing, electrical and building works by including this private use within the costs of the same people working on the stadium, by overquoting. When approached, this executive member has claimed this to be salary sacrifice, even though that is not legitimate and allegedly not committee approved. Members are asking questions about whether this is the real reason that FDBA won't release their financials. There are multiple witnesses, including the traders involved, with written statements that I've seen.

Second, it's alleged that a sponsor is owed over $10,000 which FDBA refused to pay. That sponsor has now withdrawn, after giving $40,000 to FDBA over years, and has a section 459 statutory demand claim against the FDBA, which notice ended on 15 March, which enables the FDBA to be brought into liquidation.

Third, it's alleged that the same executive member sent an inappropriate and crude text message about a 14-year-old daughter of an FDBA staff member. That staff member then resigned.

Fourth, it is alleged that this same executive member engaged in inappropriate activity while on a US trip, including sending a sex video involving Frankston basketball players via text, including at least one underage, and engaging in inappropriate activity on the trip themselves. There are many other inappropriate texts alleged to have been sent, including another sex video involving a female Frankston basketballer, and there are many things I don't want to raise in this Federation Chamber.

Fifth, it is alleged that this same executive member and a leader on the committee travelled on business class at FDBA expense, while saying they were paying themselves.

Sixth, it is alleged that this same executive member engaged in inappropriate activity during work time in their office. They were caught out by an FDBA staff member. This person, complaining, is alleged to have been demoted and had their income reduced and is now on WorkCover.

Seventh, it is alleged that this same executive member bought and used marijuana while on official FDBA trips.

Eighth, it is alleged that a particular employee of FDBA who brought some of these claims was made redundant and now has an unfair-dismissal claim against the FDBA. This person wanted to meet with the committee but was denied. This person has evidence of inappropriate behaviour by the same executive member and is approaching police over these issues.

Ninth, members and parents allege that, when they have made or attempted to make claims about the activity of this same executive member, their children have either not been promoted or have been demoted within basketball. They also claim that other children have been promoted whose parents have backed this same executive member. They also say that threats of potential defamation are raised and that this executive member is being protected by some within the committee leadership who are aware of a number of these issues and have seen some of the texts. This is the same reason that many parents and members and even councillors and council staff are not speaking out—because of the threats of defamation claims.

Tenth, a committee member has left the committee due to concern over these issues.

Eleventh, the AGM has been pushed back and audited statements have not yet been released. Members are asking if this has to do with the financials or if committee members are delaying any contest to their positions.

Members asked me at the meeting on Sunday to show leadership and take action. I'm doing so as one of the two people who can bring these claims without fear. I call on the FDBA committee to answer these questions and to take action on these issues. I call on the state government to intervene by a full external audit of FDBA. I also call on FDBA members to intervene, given the nature of these claims and the possibility that council may well restart negotiations with a newly constituted committee and executive. If there is no lease by 30 March, that only leaves the second options, which are either Jubilee Park for basketball facilities or no funds.

Photo of Ian GoodenoughIan Goodenough (Moore, Liberal Party) Share this | | Hansard source

The time for the grievance debate has expired. The debate is interrupted in accordance with standing order 192B. The debate is adjourned, and resumption of the debate will be made an order of the day for the next sitting.

Federation Chamber adjourned at 18:43