After section 39 of the Principal Act , the following Division is inserted in Part IV:

Division 5 - Leases of residential portfolio land

39A.     Lease of residential portfolio land

(1)  A Portfolio Minister may lease residential portfolio land in accordance with this Division.

(2)  A Portfolio Minister may lease residential portfolio land –

(a) to an employee of the Portfolio Department at the rent, and on the terms and conditions, that the Portfolio Minister considers appropriate; and

(b) to a person who is not an employee of the Portfolio Department –

(i) at a rent that is not less than the market value of the rental determined by the Valuer-General under section 39B ; and

(ii) for a period not exceeding 12 months; and

(iii) on other terms and conditions the Portfolio Minister considers appropriate.

39B.     Determination of rent

(1)  The Portfolio Minister must not lease residential portfolio land to a person who is not an employee of the Portfolio Department if the Valuer-General has not, within the preceding 12 months, determined the market value of the rental of the residential portfolio land.

(2)  The Portfolio Minister may at any time request the Valuer-General to determine the market value of the rental of residential portfolio land and the Valuer-General, on payment of any appropriate fee determined by the Valuer-General, must so determine that market value.

39C.     Application of Residential Tenancy Act 1997

Except as otherwise provided by this Division, the Residential Tenancy Act 1997 applies in respect of a lease under section 39A .

39D.     Use of rent money

Money paid as rent in respect of a lease granted under section 39A is to be used by the Portfolio Department for the following purposes:

(a) the maintenance of residential portfolio land;

(b) the costs of the administration of leases and maintenance of residential portfolio land;

(c) the taxes, rates and other outgoings associated with residential portfolio land and its maintenance.

39E.     Delegation

(1)  A Portfolio Minister may delegate any of his or her functions or powers under this Act, other than this power of delegation.

(2)  The Secretary of a Portfolio Department may delegate any function or power delegated to him or her by the Portfolio Minister under subsection (1) , other than this power of delegation.