The Albanese government has bowed to public pressure and abandoned the sale of Victoria Barracks, removing its most high-profile defence asset from its attempt to claw back $3 billion in taxpayer money.
The decision, announced on Sunday, means the 186-year-old Victoria Barracks in Paddington will remain in government hands.
The colonial-era sandstone headquarters will not be sold, but it will also no longer be used as an active Australian Defence Force facility.
Instead, it will be opened to the public.
“Victoria Barracks Sydney has a special place in our nation’s history – and we will be keeping it in public hands,” Prime Minister Anthony Albanese said in a statement.
“This program creates opportunities to open Defence’s historic sites and buildings to the public, and to commemorate our nation’s history.”
Defence Minister Richard Marles had until September maintained that Victoria Barracks would be sold, describing it as “the oldest wine cellar in Sydney,” used by only a section of the military elite.
The comments provoked a backlash from supporters of the site and galvanised the Save Victoria Barracks Alliance. An unlikely coalition of veterans’ groups, former prime ministers Paul Keating, John Howard and Tony Abbott, Premier Chris Minns and federal, state and local politicians all spoke out against the sale of the site.
“By moving personnel off these sites, and working to open them up for the public, we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians,” Marles said in a statement on Sunday.
“Given the strategic landscape we face, we cannot afford to be wasting money. We need to look at how we best use defence money for defence capability.”
The government estimated maintaining the site as a defence facility would cost $200 million over the next 10 years.
The decision to keep Victoria Barracks in public hands will punch a hole worth hundreds of millions of dollars in the government’s attempt to recoup $3 billion from ailing defence assets.
Three other sites, including Victoria Barracks and Point Cook in Melbourne and Fort Queenscliff near Geelong, will also remain publicly owned and opened up for community access.
The Australian War Memorial will be engaged to advise the government on showcasing the history of the sites.
Finance Minister Katy Gallagher said the government was working to maximise the best outcome.
“To ensure defence has the capabilities it needs, and that this land is put to good use, including public access,” she said.
More to come
Eryk Bagshaw is an investigative reporter for The Sydney Morning Herald and The Age.He was previously North Asia correspondent. Reach him securely on Signal @bagshawe.01Connect via X or email.
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