Pilbara tower advice 'ignored'
The Barnett Government increased the residential density of the new Pilbara apartment complex by donor developer Finbar against the advice of key bureaucrats, increasing the project's value by $100 million.
The proposed residential, retail and commercial development at Port Hedland's decommissioned hospital site comes after Finbar's controversial Pelago towers in Karratha, which left the Government owning 28 units it is struggling to sell.
In July 2012, LandCorp announced Finbar as the preferred proponent to build 367 short-stay apartments, including two seven-storey towers at the 3.16ha hospital site on Sutherland Street, plus commercial and retail outlets.
Initially a project worth $300 million to Finbar, in November 2012 the company applied to the Town of Port Hedland to amend its planning scheme to allow a higher density.
The move was not supported by the departments of Health and State Development in April last year because of health concerns over high concentrations of iron ore dust from the nearby port.
Despite the objections, the council passed the amendment last month, giving the State the final say. Health Minister Kim Hames, acting for John Day as Planning Minister, approved the amendment and Cabinet endorsed it late last year.
Finbar announced in January it could now build 550 permanent and 163 short-stay apartments, boosting the value of the development by a third to $400 million.
LandCorp and Finbar are scheduled to wrap up contract negotiations by the end of the year and the developer is pushing for the Government to pre-purchase apartments, as it did in Pelago. "It is very unlikely that the proposed project in Port Hedland will proceed without sales to either government and/or large corporates," Finbar managing director Darren Pateman said.
Lands Minister Terry Redman said the Department of Housing was "still assessing the requirements for government housing in the proposed development".
A spokeswoman for Dr Hames said he ruled on the amendment because Mr Day had a conflict.
"The Minister undertook a detailed review of the dust monitoring data, historical weather patterns and other information and felt confident that the future development of the site would be designed and constructed to suit the location," the spokeswoman said.
Finbar donated $75,000 to the Liberal Party in 2012-13, which the Government has said had no effect on its decisions.
Shadow planning minister Rita Saffioti said she was shocked the Minister for Health approved a project his own department said should not be approved.
"I can't believe the Minister personally undertook more detailed and thorough research than his department," she said.
