AUSTRALIA: National Wine Centre privatised for A$1 a year

Australia's financially troubled National Wine Centre has effectively been handed over by the government to the Australian Winemakers Federation for just A$1 ($0.57) a year. Since the centre opened in Adelaide a year ago as a showcase for the industry, it has cost the taxpayer of around A$40m ($26.8m) in a series of bail-outs.

June 26, 2002

This resulted in threats by a newly elected government to close the facility unless the industry took over. The Winemakers Federation agreed to take over the management of the centre on condition that the government make a further immediate cash injection of A$750,000 ($427,000), lease the centre to the federation for 25 years at a peppercorn rent of A$1 a year and pay an estimated A$6.25m ($3.6m) in maintenance for the duration of the lease.

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