Stones Corner Lease Sparks $116 Million Shortfall for Queensland Police

Queensland Police Stones Corner
Photo Credit: Elders Commercial Brisbane

Queensland Police is grappling with a $116 million budget gap after signing a lease for a new police hub in Stones Corner, sparking urgent cost-cutting measures and an audit investigation.



Stones Corner Lease Strain

The lease for the Stones Corner station, agreed upon for 15 years at $116 million with an option to extend to 23 years for $240 million, was signed without an allocated funding source. This decision has left Queensland Police with a significant budget hole, and senior leaders are now under pressure to find savings across all operations. 

Internal documents show a need to cut budget allocations by 5.6% to manage this shortfall. Senior officers are tasked with meeting budget targets without compromising frontline services.

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Internal Efforts to Prevent Service Cuts

While Queensland Police leadership aims to keep frontline services intact, staff indicate that reductions in overtime and other areas may be necessary to balance the books. Officers are exploring ways to save costs while minimising the impact on community policing and local services. 

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Senior staff acknowledge the challenge but affirm their commitment to the public, even as concerns about maintaining services amid budget constraints grow.

Queensland Police Stones Corner
Photo Credit: QPS

Investigation and Audit Process

The lease arrangement has attracted scrutiny from the Crime and Corruption Commission (CCC), which is now investigating the matter. Though CCC representatives did not disclose the details or progress of the inquiry, they emphasised the need for transparency in government spending while respecting the privacy of those involved. 


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Queensland Police engaged KordaMentha, a firm specialising in forensic and financial reviews, to conduct an end-to-end audit of the lease agreement. This audit, launched on August 19, will investigate how and why the agreement was signed without securing funds and will evaluate if the usual protocols were followed.

Real Estate and Community Planning

The new Stones Corner hub was chosen in part to serve anticipated needs leading up to the 2032 Olympics and beyond. Queensland Police stated that the area’s limited real estate market influenced the decision, noting that the Stones Corner site was one of few that could meet operational needs. Detailed inspections and commercial assessments were reportedly completed before the lease signing, before Commissioner Steve Gollschewski took office. 

The Stones Corner property is owned by the Aequitas Group, with Brisbane investors Geoffrey McIntyre and Norman Fox serving as directors and owners through holding companies. Amid rising community concerns over the $240 million lease cost, leaders urged police to maintain transparency, noting that while the Queensland Police Service has broad budgetary discretion, openness is essential. Property records reveal that Aequitas purchased the Stones Corner building for $45 million in 2021, with the current lease price representing up to five times that amount.



Residents and officials are closely watching how the budget strain might affect community services and police response times.

Published 28-Oct-2024


 

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