Following the introduction in the current financial year of new budgeting arrangements and practices for organisations accommodated in multiple occupancy leased and Government owned office buildings, it has become apparent that a number of organisations and the Property Management Division of the Property Services Group have experienced some difficulty in clarifying the scope of obligations in respect of premises managed by the Division.

In order to overcome these difficulties it has been decided that all organisations accommodated in such premises will be the subject of a tenancy agreement in the form of a Memorandum of Understanding, which specifies the rights and obligations of both the tenant organisation and the Property Services Group in respect of that accommodation. The Memorandum of Understanding will commence from 1 July 1989 or later date of commencement of occupation, whichever is applicable.

The Memorandum of Understanding will protect the Government from losses in respect of buildings over which the Crown holds a long term lease and also ensure that monies allocated to organisations for rentals in Government owned buildings are directed to that purpose.

Exceptions will be made for organisations which have vacated premises since 1 July 1989 with the approval of the Division. Organisations which have vacated premises without approval will be subject to the agreement until such time as those premises were (or are) allocated to another tenant or surrendered by the Property Services Group.

It is intended that all agreements will specify an initial term of 3 years dating from 1 July 1989 or other appropriate date. Ministers who consider that special circumstances exist which render this period inappropriate for organisations within their administration should bring the relevant circumstances to my attention within 28 days of the date of this Memorandum.

A copy of the Memorandum of Understanding to be executed by occupying departments and authorities is attached.

Enquiries may be directed to Ms Jennifer Lewis, Property Management Division, Property Services Group, phone (02) 891 0935.

Nick Greiner
Premier.