Former NSW minister Michael Costa wasn't interested in multi-million dollar projects run by his department, but was focused on "crumby little" leases at Circular Quay, a corruption inquiry has heard.
In the first of three investigations, the NSW Independent Commissioner Against Corruption (ICAC) on Tuesday heard claims disgraced former minister Eddie Obeid lobbied MPs including Mr Costa, Joe Tripodi, Carl Scully and Eric Roozendaal over leases at the lucrative harbour-front site.
It's alleged the one-time Labor powerbroker never disclosed his family's interests in the Sorrentino restaurant and Quay Eatery at the popular quay.
Former senior maritime bureaucrat Zenon Michniewicz said the minister at the time, Mr Scully, often told him that Mr Obeid had spoken to him about the leases.
These discussions were usually after another lease holder, Tony Imad, threatened "to go and see Mr Obeid".
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But, Mr Michniewicz said, Mr Scully made his own decisions and was "very straightforward and easy to deal with."
However, the new waterways minister, Mr Costa, was different.
"We had all these billion-dollar plus projects that were happening and the minister's office never took any interest in those," Mr Michniewicz told the inquiry.
"There was this great interest in this crumby little things going on down at Circular Quay."
The interest revolved around rents and lengths of retail leases.
The government wanted to increase the $250,000-$300,000 annual rent and to put the leases out to public tender when they expired in August 2005.
"The idea was that those retail outlets would actually generate the income to pay for the high maintenance costs," Mr Michniewicz told the inquiry.
But the existing tenants, particularly Tony Imad, opposed the government's plan and applied what pressure they could, including lobbying relevant ministers, to ensure they held on to the leases.
They also wanted to renegotiate the fixed five-year terms.
Mr Michniewicz said he was surprised to hear Mr Obeid, who made many representations on behalf of the lease owners to the minister, had interests in Circular Quay.
He found out about Mr Obeid's involvement through a newspaper article, he said.
"We were all surprised, I think," he told reporters outside the hearing.
The hearing continues before assistant commissioner Anthony Whealy.
