WA local government minister Tony Simpson has dismissed complaints about Fremantle council’s Kings Square business plan without even reading the document.
He told state parliament this week, in response to questions from Willagee Labor MP Peter Tinley, that his department hasn’t analysed the complaints because he has limited powers to intervene in council affairs.
He says there is no suggestion the council has acted unlawfully, which is “the principal consideration for me”.
The Fremantle Residents and Ratepayers Association had asked Mr Simpson to look into the council’s claim the project would deliver a windfall for ratepayers over the next 20 years.
The request had been prompted by the findings of local resident Martin Lee, a commercial adviser who’d his own calculator over the business plan and come up with a $30 million loss. He’d asked the council a series of questions to explain the discrepancy and had been dissatisfied with the response.
This week council CEO Graeme Mackenzie released a long statement (it’s on the council’s website) outlining how it came up with its figures. He said conservative estimates had been used and run past independent consultants.
He acknowledges the council could have earned more from selling its Queensgate building on the open market but says it’s unlikely a buyer would have redeveloped in line with the council’s vision for the area.
“As the business plan notes, the impact on the city’s overall financial position is relatively minor,” he says.
“In summary, the city approached the business plan with the utmost conservatism, but never shied away from the fact that it was disposing of three properties and using the proceeds to redevelop its own facilities.
“This is to be a catalytic project that will provide Fremantle with a much-needed economic boost through increased retail and commercial activity.”
Mr Lee says the council may have revealed how it arrived at a positive position after 20 years, but says its figures remain flawed. He disputes the council’s assumption its new offices will, when land is removed from the equation, increase in value over the years.
by STEVE GRANT
