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Police are worried that the location of proposed housing for notorious paedophile Michael Alexander McGarry could provide the "ideal opportunity" for him to re-offend, the Supreme Court was told this morning.

Senior community corrections officer Kara Cassam, who has prepared a proposed plan for McGarry if he is granted supervised release under dangerous sex offender laws, said the police sex offender management squad had not assessed whether the planned accommodation was suitable or unsuitable.

But Ms Cassam said police had raised concerns that given the location of businesses and families with children near the proposed housing - which is the only option available for McGarry - it could prove an ideal chance for him to commit further offences.

"They also raised concerns that there is a property where they have some intelligence that cannabis is growing," Ms Cassam said.

After hearing submissions by The West Australian yesterday that it was in the public interest to be able to report details of the proposed accommodation, Justice Stephen Hall imposed a suppression order preventing the publication of the address.

The suppression remains in place until further order.

McGarry is facing his first annual, statutory review of his detention after he finished his latest jail term for sex assault offences against children.

The 50-year-old sparked heated community debate in 2009 when he was released on a supervision order with 52 stringent conditions, but was arrested within 10 days after breaching the terms.

This morning, McGarry's lawyer, David McKenzie, submitted that the child sex offender's attitude had changed since his last release because of anti-libidinal medication which he had been taking for more than three years and which had reduced his sexually deviant thoughts.

He said programs and counselling, including 41 individual sessions with a psychologist, and his age had also changed McGarry's attitude.

Mr McKenzie said two court-appointed psychiatrists had found McGarry's risk to the community was manageable.

But State prosecutor Bruno Fiannaca, who is opposing McGarry's release, said community safety was the paramount consideration under the dangerous sex offender laws.

Mr Fiannaca said McGarry continued to claim that his previous breach of his conditional release was because he did not properly understand the requirements, even though this excuse had been rejected by a judge at the time.

Mr Fiannaca accepted that while McGarry had reduced his dose of anti-libidinal medication by half, his testosterone levels remained well below normal levels.

He said if the court decided to approve McGarry's release, the stringent conditions - which include limiting his access to shopping centres and restrictions on visiting relatives which could bring him into contact with children - would be required.

Justice Hall reserved his decision.