The government has issued a default notice to the Port Kennedy resort developer due to ongoing financial problems and failure to meet agreement requirements, while refusing to provide additional crown land.

AnsweredQoN 309Legislative Assembly
Asked
14 November 2000
Portfolio
Planning

QuestionView source ↗

Given that the developer of the Port Kennedy resort is reported to have gone into voluntary administration, what does the Government intend to do to ensure the protection of the public interest in this project? Mr KIERATH

AnswerView source ↗

For some time, I have been concerned about the progress of the project, and today I served the company with a default notice under section 24 of the Port Kennedy Development Agreement Act. I expect the administrator to move quickly to try to resolve the company’s problems, which is one of the reasons the project has stalled. I am hopeful that once those problems are overcome, the project will proceed, ensuring that benefits will accrue to the people of Rockingham and the State. This project, which was initiated in the final year of the previous Labor Government, has encountered ongoing problems. The developers have consistently failed to meet the requirements of the agreement and the Government is not prepared to wait any longer. The Government has been reluctant to take action that could undermine the viability of the project, but it is now apparent that the accumulation of deficits warrants serious action. The Government was requested to provide extra crown land to ensure the project’s viability. However, this Government is not prepared to gamble with the assets of Western Australians, especially with a company that clearly has financial problems. I have confidence that, in principle, the project is worthwhile. I am sure this circuit-breaker device will enable it to proceed, and it is now up to the developers to ensure that it does.
Mr KIERATH replied: For some time, I have been concerned about the progress of the project, and today I served the company with a default notice under section 24 of the Port Kennedy Development Agreement Act. I expect the administrator to move quickly to try to resolve the company’s problems, which is one of the reasons the project has stalled. I am hopeful that once those problems are overcome, the project will proceed, ensuring that benefits will accrue to the people of Rockingham and the State. This project, which was initiated in the final year of the previous Labor Government, has encountered ongoing problems. The developers have consistently failed to meet the requirements of the agreement and the Government is not prepared to wait any longer. The Government has been reluctant to take action that could undermine the viability of the project, but it is now apparent that the accumulation of deficits warrants serious action. The Government was requested to provide extra crown land to ensure the project’s viability. However, this Government is not prepared to gamble with the assets of Western Australians, especially with a company that clearly has financial problems. I have confidence that, in principle, the project is worthwhile. I am sure this circuit-breaker device will enable it to proceed, and it is now up to the developers to ensure that it does.
For some time, I have been concerned about the progress of the project, and today I served the company with a default notice under section 24 of the Port Kennedy Development Agreement Act. I expect the administrator to move quickly to try to resolve the company’s problems, which is one of the reasons the project has stalled. I am hopeful that once those problems are overcome, the project will proceed, ensuring that benefits will accrue to the people of Rockingham and the State. This project, which was initiated in the final year of the previous Labor Government, has encountered ongoing problems. The developers have consistently failed to meet the requirements of the agreement and the Government is not prepared to wait any longer. The Government has been reluctant to take action that could undermine the viability of the project, but it is now apparent that the accumulation of deficits warrants serious action. The Government was requested to provide extra crown land to ensure the project’s viability. However, this Government is not prepared to gamble with the assets of Western Australians, especially with a company that clearly has financial problems. I have confidence that, in principle, the project is worthwhile. I am sure this circuit-breaker device will enable it to proceed, and it is now up to the developers to ensure that it does.

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