❓ Mr Papalia questions the Minister for Transport regarding rent subsidies for businesses affected by Elizabeth Quay construction, alleging unfair competition. The Minister denies offering new businesses better subsidies and outlines existing support for affected businesses.
AnsweredQoN 466Legislative Assembly
QuestionView source ↗
ELIZABETH
QUAY — BARRACK STREET JETTY BUSINESSES
466. Mr P. PAPALIA to the
Minister for Transport:
It was a blistering attack!
I refer to the financial crisis
experienced by small businesses at the Barrack Street jetty due to the ongoing
construction works at Elizabeth Quay and the announcement in estimates last
week that new businesses in direct competition with those at the Barrack Street
jetty will receive rent subsidies for up to two years.
(1) Has the minister discussed these
rent subsidies with the Minister for Planning?
(2) Will the
minister guarantee businesses at the Barrack Street jetty the same rent subsidy
period as those new businesses they will be competing with at Elizabeth Quay?
QUAY — BARRACK STREET JETTY BUSINESSES
466. Mr P. PAPALIA to the
Minister for Transport:
It was a blistering attack!
I refer to the financial crisis
experienced by small businesses at the Barrack Street jetty due to the ongoing
construction works at Elizabeth Quay and the announcement in estimates last
week that new businesses in direct competition with those at the Barrack Street
jetty will receive rent subsidies for up to two years.
(1) Has the minister discussed these
rent subsidies with the Minister for Planning?
(2) Will the
minister guarantee businesses at the Barrack Street jetty the same rent subsidy
period as those new businesses they will be competing with at Elizabeth Quay?
AnswerView source ↗
(1)–(2) I
am glad the member asked that question, I really am, because I can tell him
that what we have offered to the existing traders—because that is who
he is asking the question about—is the same offer we made in October
and November last year, would members believe. There were some delays in
getting some offers processed because there are subtenants and some of them do
not come through the Department of Transport; they are done through the Swan
River Trust. I have made sure we have captured everybody. To start with, last
year when they put an application in, we gave them an upfront three-month
rental subsidy just while we work through the process to give them time to get
their financials in, and there was no clawback. We said that if they can
demonstrate that they have incurred a loss, we will waive rent until the
practical completion of the project. I thought that was a fair deal. A couple
of tenants put in a claim but were not able to substantiate an economic loss.
In the conversation I had with the traders last week I said that we could not
go on handwritten financial advice. It needs to be audited accounts or a tax
return, because we will need to be able to substantiate to the community any
claims of loss they have—I cannot just give taxpayers' money
away.
Point of Order
Mr P. PAPALIA : I asked two very
specific questions: one, has the minister discussed the rent subsidies of the
new businesses to be built at Elizabeth Quay with the Minister for Planning;
and, two, will he guarantee the same rent subsidies period to the existing
businesses at the Barrack Street jetty?
Questions without Notice
Resumed
Mr D.C. NALDER : I
am answering this. Two businesses were making a lot of noise and suggesting
that proper process had not been followed. I have explained it to them and we
have made sure that any businesses that have not got the advice in are getting
a three-month extension in rental subsidy and being given time. However, people
have said that things got worse, so I have said that I am more than happy to
continue to review the financials to ensure that we capture everybody. I have
not offered anything to the new traders that I have not offered to existing
traders, so I am not sure where the member is going with that. I have not
offered anything to new traders that I have not offered to existing traders.
Ms R. Saffioti :
Yes, you have.
Mr D.C. NALDER :
No, I have not. All the existing traders have been offered exactly the same
thing.
Mr D.J. Kelly interjected.
The SPEAKER :
Member for Bassendean!
Mr D.C. NALDER : We
are talking about practical completion and that is what we are doing.
With regard to the Minister for Planning, the Metropolitan
Redevelopment Authority is actually funding this rebate in lease, not the
Department of Transport. As I said, this has been discussed across departments
and my department is doing the administration for it. I have wanted the
department to continue to act with them and we will meet again with a group of
all of the existing traders there in August. I have agreed to meet with
existing traders in August. We will continue to work with those people to
ensure they get a fair deal. I really do not see what is wrong with that and I
think we are being responsible and fair, but we will not provide subsidies if
they cannot substantiate an economic loss. We cannot and I think that is fair
enough.
am glad the member asked that question, I really am, because I can tell him
that what we have offered to the existing traders—because that is who
he is asking the question about—is the same offer we made in October
and November last year, would members believe. There were some delays in
getting some offers processed because there are subtenants and some of them do
not come through the Department of Transport; they are done through the Swan
River Trust. I have made sure we have captured everybody. To start with, last
year when they put an application in, we gave them an upfront three-month
rental subsidy just while we work through the process to give them time to get
their financials in, and there was no clawback. We said that if they can
demonstrate that they have incurred a loss, we will waive rent until the
practical completion of the project. I thought that was a fair deal. A couple
of tenants put in a claim but were not able to substantiate an economic loss.
In the conversation I had with the traders last week I said that we could not
go on handwritten financial advice. It needs to be audited accounts or a tax
return, because we will need to be able to substantiate to the community any
claims of loss they have—I cannot just give taxpayers' money
away.
Point of Order
Mr P. PAPALIA : I asked two very
specific questions: one, has the minister discussed the rent subsidies of the
new businesses to be built at Elizabeth Quay with the Minister for Planning;
and, two, will he guarantee the same rent subsidies period to the existing
businesses at the Barrack Street jetty?
Questions without Notice
Resumed
Mr D.C. NALDER : I
am answering this. Two businesses were making a lot of noise and suggesting
that proper process had not been followed. I have explained it to them and we
have made sure that any businesses that have not got the advice in are getting
a three-month extension in rental subsidy and being given time. However, people
have said that things got worse, so I have said that I am more than happy to
continue to review the financials to ensure that we capture everybody. I have
not offered anything to the new traders that I have not offered to existing
traders, so I am not sure where the member is going with that. I have not
offered anything to new traders that I have not offered to existing traders.
Ms R. Saffioti :
Yes, you have.
Mr D.C. NALDER :
No, I have not. All the existing traders have been offered exactly the same
thing.
Mr D.J. Kelly interjected.
The SPEAKER :
Member for Bassendean!
Mr D.C. NALDER : We
are talking about practical completion and that is what we are doing.
With regard to the Minister for Planning, the Metropolitan
Redevelopment Authority is actually funding this rebate in lease, not the
Department of Transport. As I said, this has been discussed across departments
and my department is doing the administration for it. I have wanted the
department to continue to act with them and we will meet again with a group of
all of the existing traders there in August. I have agreed to meet with
existing traders in August. We will continue to work with those people to
ensure they get a fair deal. I really do not see what is wrong with that and I
think we are being responsible and fair, but we will not provide subsidies if
they cannot substantiate an economic loss. We cannot and I think that is fair
enough.
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