If you assume a yield of six per cent on the sale of the developed property, the capital value on completion will be somewhere in the vicinity of $120 million. So the Catholic Church – with its commercial activities led by Vicar General of the Archdiocese of Adelaide Monsignor David Cappo. The Cabinet member has done a terrific job of adding value to the church. It seems a fair way from the Bible story of Jesus going into the temple to kick out the moneylenders. Why not put a deal together while you’re there? Is this a new pragmatic church at work?

Questions arise. Is this a case of pork barreling?

A pork barrel, literally, is a barrel in which pork is kept. But the term is more commonly used as a political metaphor for the appropriation of government spending for projects that are intended primarily to benefit particular constituents or campaign contributors.

According to historian David Hilliard, the Catholic Church in 2007 was the largest religious denomination in South Australia, comprising some 21 per cent of the state’s population. The legal fraternity is dominated by Catholics and Catholics are a big part of the right wing of the Labor party – where Michael Atkinson and Don Farrell call the tune.

But the question on many minds is whether the terrific deal that Monsignor Cappo’s church has pulled off with the SA Water building is a function of his honorary position as a member of the Executive Committee of Cabinet.

Cappo, the second highest ranking Catholic in SA, along with super-rich mining entrepreneur Robert Champion de Crespigny were appointed to the Executive Committee of Cabinet in June 2005.

Cappo is from the Cappo fishing business, which began in Port Pirie in 1919 as a partnership of six brothers who had migrated from Italy. Now in its third generation, the Cappos have built the business to be a major supplier of seafood to Coles and one of the largest food service groups in the country.

So while the Cappo family looks after the fish business, their cousin is taking care of the property business for the curia of Adelaide.

Political commentator Mike Head described the Cappo and de Crespigny appointments by Rann as trying to consolidate the party’s base in corporate boardrooms and churches.

“South Australia is an acute example of the instability and decay of parliamentary democracy produced by popular disaffection with the bipartisan pro-business agenda pursued over the past two decades by Labor and Liberal governments alike,” the left wing socialist Head argued.

“Rann’s bid for political survival involves an unprecedented departure from the British-style Westminster system of parliamentary democracy.

Since Federation in 1901, no Australian government, state or federal, has breached the principle that members of Cabinet must hold seats in parliament.”

We asked the Premier via media adviser Jill Bottrall the following questions: Why was the block of land on the corner of Angas St and Victoria Square sold to the Catholic Church for a price that was about half the market rate at the time?

Why was the new SA Water corporate headquarters awarded to the Catholic Church? And does this represent special treatment for the SA Catholic community?

Bottrall replied: “In July 2001, the then Liberal Minister for Administrative Services declared the Tram Barn site surplus to requirements.

“The Rann Government approved, in May 2002, proposed sale to the Catholic Church as representing the best opportunity to satisfy the accommodation needs of the St Aloysius College and as a means to influence an appropriate development on the site, which is sympathetic to the adjacent heritage buildings and enhances the Victoria Square precinct.

“The Deed of Agreement was signed in October 2003. The purchase price was $5.34 million exclusive of GST (included a contribution by Government of $160,000 toward remediation of soil pollutants on the site).

“The Valuer-General’s Valuation was $5.5 million plus GST ($550,000).

“The current SA Water project is the culmination of a standard, open tender, government process.

“From a field of about 25 interested parties, the chosen proposal was accepted from a final shortlist of three.

“The government is very excited about the building design and standards included in the proposal.”

Catholic Church PR Chris McWilliams said the deed of agreement for the sale of the land was signed in October 2004 (not 2003 as suggested by Bottrall, but in any event well before the appointment of Monsignor Cappo to Cabinet) and that the Executive Committee of Cabinet would not have formally considered such an issue.

It is also The Independent Weekly’s understanding that Monsignor Cappo took no part in the decision to award the SA Water project to the Catholic Church.

Nevertheless and while there is no suggestion that any improper conduct by any of the parties involved has taken place, the circumstances of the SA Water project are such as that they may give rise to a perception to some that a potential conflict may have arisen.

“Well done Monsignor Cappo,” one senior property dealer said this week. “It seems to pay to be on some boards.”