The State Property Authority has been established by the NSW Government as a corporation with functions relating to the acquisition, management and disposal of Government owned property.

The requirements outlined in this Memorandum and the attached Government Property Principles apply immediately to all General Government Sector agencies and Public Trading Enterprises (excluding State Owned Corporations). Shareholding Ministers and Boards of State Owned Corporations are to note the establishment of the Authority and where their organisations do not have the necessary in house expertise, they are encouraged to use the services of the Authority.

The Authority’s objectives as stated in the State Property Authority Act 2006 are to:

• improve operational efficiencies in the use of properties of government agencies, particularly generic properties (such as offices, warehouses, depots and car parks);
• manage properties of government agencies in a way that supports the service delivery functions of those agencies;
• provide advice and support within government on property matters; and
• operate at least as efficiently as any comparable business, consistently with the principles of ecologically sustainable development and social responsibility for the community (including the indigenous community).

The Authority is the Government’s real estate services provider and is responsible for acquiring and managing Government’s generic and, by agreement, other property assets.

To assist the State Property Authority to achieve its legislated objectives, the Government has approved a new property policy framework. The framework outlines the relationship between agencies and the State Property Authority in the acquisition, management, maintenance and disposal of property.

The key initiatives of the framework are:

• the immediate vesting (from 1 July 2008) to the State Property Authority of the ownership of all government owned office accommodation;
• the implementation of a commercial rental charge for all office accommodation vested in the State Property Authority;
• the transfer to the State Property Authority of management responsibility of all government leased office accommodation;
• the extension of the Government Leasing Service within the State Property Authority to include all lease renewals and new and existing lease negotiations for generic property in the Greater Sydney Metropolitan Area (as defined by the Department of Planning);
• regular and ongoing reviews by the State Property Authority of agency property portfolios to identify efficiencies to improve service delivery which will be monitored by the Government Asset Management Committee and reported to Government;
• the provision of information by all agencies for the generic property database, including the participation in surveys;
• review and endorsement of all proposed property acquisitions and disposals by the Government Asset Management Committee;
• the State Property Authority is Government’s preferred acquisition and disposal agency;
• the State Property Authority will be the lead agency for all multi-faceted property proposals that are interlinked by timing, location or use; and
• the Department of Premier and Cabinet, State Property Authority and NSW Treasury will work cooperatively with Government agencies and relevant unions to address any staffing and funding implications which may arise from implementation of the policy framework.

The attached Government Property Principles outline details of the property policy framework as well as other considerations relating to property title, preferred office locations, provision of car parking, lease precommitments, sale and lease back proposals and fitout amortisation.

This Memorandum is superseded by Premier’s Memoranda M2008-06 and supersedes Premier’s Memoranda 1990-09, 1990-54, 1999-06 and 2002-09.

Morris Iemma
Premier

Date: 27 March 2008