THE Rottnest Island Authority has rejected claims that red tape and poor communication killed a $20 million redevelopment of Rottnest Lodge.

Karma Group chair John Spence last week complained that competing projects had made his approved 90-unit redevelopment on a 50-year lease unsustainable.

He wanted to scale down to a $7 million, 26-unit resort but the RIA said it would require Cabinet permission, as approval had been for a 90-unit development.

Instead, Mr Spence walked away. If the approved resort doesn’t go ahead the rights to the 50-year lease will be surrendered in 2018.

RIA CEO Paolo Amaranti says the body simply followed due process.

“Mr Spence has said he is used to doing deals ‘around a table’,” Mr Amaranti says.

“A state asset of the importance to Western Australians of Rottnest Island requires nothing less than due process.

“Mr Spence has been communicated with regularly throughout negotiations culminating in a heads of lease signing earlier this year and a recent lease signing.”

The Herald contacted premier Colin Barnett, who is WA’s tourism minister, but media handler Keryn McKinnon said it was an “operational” matter and deftly handballed us back to the RIA.

Karma’s withdrawal is third time unlucky for the RIA: attempts in 2006 and 2010 to secure a five-star hotel on the island’s north also failed.

“Different factors have been involved in each case,” Mr Amaranti says.

“The RIA is aware that the island presents unique difficulties and cooperates with as much flexibility as possible to enable development to go ahead.”

Meanwhile, the Quod still looks set to return to RIA hands in 2018.

Plans for its use are not finalised, but the site — a former gaol where many Aboriginal prisoners died in horrific conditions  — will no longer be used for accommodation.

The RIA administers 289 holiday units, a hostel and dormitory accommodation, cabins and camp sites.

Rottnest Lodge has 81 rooms, and Hotel Rottnest 18 rooms.

In peak times, the RIA authorises additional beds in its units to meet visitor demand.

Planned accommodation at South Thomson, Pinky’s Beach and the resort/marina is anticipated to result in another 750-1000 beds.

The RIA say a marketing drive resulted in 90,000 more visitors flocking to the island this financial year.

by STEPHEN POLLOCK