Question regarding utility subsidies for businesses on Rottnest Island and the profitability of the upgraded golf course, revealing subsidies exist but are not taxpayer-funded, and the golf course is not expected to be profitable in the short term.

AnsweredQoN 5601Legislative Council
Asked
16 May 2012
Portfolio
Tourism

QuestionView source ↗

With regard to the financial management of Rottnest Island, I ask —
(1) Are business operators on the island subsidised by the Rottnest Island Authority (RIA) for the cost of utilities?
(2) If yes to (1) —
(a) why are they subsidised; and
(b) what is the cost to taxpayers of the subsidy?
(3) What is the estimated annual net profit to the RIA from the upgraded golf course and country club during the first three years of operation?

AnswerView source ↗

Answered
12 June 2012
Responded by
Minister for Child Protection representing the Minister for Tourism
Response time
27 days
(1) Yes
(2)(a) Utility prices are subsidised due to the high cost of producing utilities on Rottnest Island and to offset the full extent of these costs being passed onto visitors by business operators.
(b) As the RIA is largely self funded, the utilities are not subsidised by taxpayers.
(3) A net profit is not expected from the golf course during the first three years. Based on the current assumptions, the breakeven point occurs in year seven of the proposed ten-year lease period.
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