Calvary ownership arrangements clarified

ACT Minister for Health, Katy Gallagher MLA, today released advice provided by the ACT Government Solicitor to respond to community feedback over the legal ownership of Calvary Public Hospital.

“The community consultation process in relation to the proposed purchase of Calvary Hospital has identified some concerns in the community about the Government’s proposal to buy the hospital from the Little Company of Mary Health Care (LCMHC),” Ms Gallagher said.

“Those concerns have been around the legal ownership of the hospital and why the Government would have to pay LCMHC for a hospital built on Commonwealth land with public funds prior to ACT self-government,” she said.

“There have also been suggestions that the Government should be able to make significant capital investments on the Bruce site while maintaining ownership of those new investments.

“Today I’ve released summary advice from the ACT Government Solicitor in response to these concerns and to clarify the legal arrangements.

“This advice has framed the discussions about the future needs of Calvary and has led to the proposal that’s now on the table. I hope this will clear up the confusion about the legal ownership of the hospital,” Ms Gallagher said.

The Minister said the advice showed that until the Crown lease expired, was terminated or surrendered, Calvary owned the buildings and improvements on the land.

The advice also confirms the following:

- as the Crown lessee, Calvary has an exclusive right of possession in respect of the buildings or improvements on the Calvary land, regardless of who funds the construction or improvements;

- to regain possession and control of the Calvary campus, the Territory would have to terminate the lease;

- in the absence of a breach of contract by Calvary, the Territory cannot terminate the arrangements in relation to Calvary’s operation of the public hospital without the consent of Calvary; and

- Calvary is entitled to the grant of a further lease on the expiration of the current 99 year Crown lease.

In the interests of further public discussion, a summary of the legal advice has been released and can be found on the ACT Health website www.health.act.gov.au/calvaryconsultation

4 November 2009