Ms SYLVIA HALE: I address my question to the Minister for Lands. Minister, is it the case that both Babcock and Brown and Mariner Coastal Investments, the joint venture partners that entered the agreement to lease a section of the Killalea Estate Park for a commercial resort development, are now in external administration? Has the agreement to lease now lapsed because of those companies being placed in external administration? Given the level of community opposition to this project, and the financial failure of the joint venture partners, is the project now dead in the water?

The Hon. TONY KELLY: I am not sure Ms Sylvia Hale understands company law—she obviously does not, from that question. The proposed eco-tourism development within Killalea State Park at Shellharbour on the South Coast is an initiative of the Killalea State Park Trust. Contrary to what has been reported or stated elsewhere, no leases have been finalised or executed, and there is absolutely no intention to sell any part of the park. What I have done is given consent to the Killalea State Park Trust entering into a development agreement with Killalea Coastal Investments setting out the commercial arrangements if the eco-tourism resort development proposal proceeds.

The Minister for Planning gazetted a notification in the Government Gazette on Friday, 13 March 2009, that the Killalea Coastal Investments proposal will be determined under part 3A of the Environmental Planning and Assessment Act. Any decision on the proposal will be made under the normal planning, administrative and legislative processes, which will include a community consultation process. I note the suggestions made by opponents of the proposal that I should terminate the lease agreement, as suggested by Ms Sylvia Hale now—

Ms Sylvia Hale: I did not suggest that.

The Hon. TONY KELLY: You were just suggesting it.

Ms Sylvia Hale: No, I did not.

The Hon. TONY KELLY: I note the suggestions made by opponents of the proposal that I should terminate the lease agreement because they consider Killalea Coastal Investments to be on shaky ground. I am advised that Killalea Coastal Investments was set up as a joint venture between Babcock and Brown, Killalea Pty Ltd and Marine Land Limited. Now that Babcock and Brown has been placed under administration, Mariner is taking over Babcock and Brown's share in Killalea Coastal Investments.

Ms Sylvia Hale: But Mariner is now under administration itself.

The Hon. TONY KELLY: Mariner has advised that its suspension from trading on the Stock Exchange since May was due only to the resignation of two directors, and that it will recommence trading as soon as replacement directors are appointed. Mariner has given the trust and the Department of Lands assurances that it will be in a position to continue with the proposal in accordance with the deed of agreement.

[Business interrupted.]