"Whoever can best use those facilities in the public interest should do so. I don't think the current situation should continue there," said Mr Crosbie, who is the chief executive of Mental Health Council Australia and a member of the Prime Minister's National Council on Drugs. News of the Narconon deal with landlord Parks Victoria raises thorny questions for the State Government about the appropriate custodianship of Victoria's portfolio of public parks and buildings. Parks Victoria has refused to release details of the confidential deal with Narconon, but has confirmed the group does not pay rent. It does, however, pay for the maintenance of the property, a standard lease condition, according to a Parks spokesman. "Given the age and nature of some facilities, this is a significant cost which would otherwise be paid by the taxpayer," the spokesman said. As recently as late last year, Parks Victoria seemed to view Narconon as an ideal tenant. In a letter to Kenneth Lloyd, a Mitcham resident who inquired about the property, Parks Victoria regional manager Trevor Miles said O'Shannassy Lodge was an "ideal environment" for the "essential community service" offered by Narconon. But when contacted by The Age, Parks chief executive Mark Stone was keen to stress that Narconon's lease had now expired. An open tender process would soon be conducted for management of the property. Narconon would be welcome to re-tender.

Mr Stone said Parks Victoria did not "judge" lessees "on colour or creed or religion or whatever" - capacity to pay bills was the primary concern. Set in a lawned clearing amid pristine bush, O'Shannassy Lodge was built about 1915 by the now defunct Melbourne Metropolitan Board of Works to house engineers building the nearby O'Shannassy dam. It was later transformed into a special retreat for Board of Works commissioners. A short history of the lodge recalls "hints of controversy over what some saw as a costly luxury" for MMBW chiefs. So luxurious was it that Queen Elizabeth and Prince Philip stayed there for a few days during a royal visit in 1954, the Queen in room 10 and the Prince in an adjoining room. Yet, tucked away behind a locked gate and up a five-kilometre bush track, the lodge is all but unknown to the wider community.

Signs around the property make it clear the public is not welcome. In an agreement with Narconon, Parks Victoria would last week allow a photographer from The Age access, but not a reporter. In the dying days of the MMBW, O'Shannassy Lodge was let to a company, Victorian Snow Resorts Pty Ltd, which transferred the lease to Narconon in the early 2000s with the approval of the state government. Narconon is contentious in drug rehab circles, employing detoxification treatments including extended periods for clients in sauna baths. Critics have slammed the program as little more than a predatory front for the Church of Scientology. Narconon would not be interviewed by The Age and did not respond to written questions. Mitcham resident Kenneth Lloyd has run a one-man campaign for years against exclusive private use of public bushland around Warburton. "My concern is that public assets should not be made available for the exclusive commercial use of private entities," he said.

Warburton historian Ellena Biggs backed the call for the lodge to be opened for public use. She said the Yarra Valley was increasingly popular for tourists, cyclists and bushwalkers and the lodge would be an ideal location for visitor accommodation. Ms Briggs said the property seemed to be guarded by staff who were "intimidating" to curious passers-by. Loading Opposition scrutiny of government spokesman David Davis called on the government to "come clean" on the financial arrangements "that are effectively blocking public access to the heritage O'Shannassy Lodge". "The Brumby Government and Parks Victoria appears not to have understood their obligation as custodians of O'Shannassy Lodge on behalf of Victorians," Mr Davis said.