Govt Karratha units off market
The State Government has given up on selling its 29 empty apartments in Karratha's Pelago East tower, instead transferring most to the WA Country Health Service so public servants can move in.
In September, Housing Minister Bill Marmion told Parliament the business case for investing $30 million of taxpayers' money in 50 apartments in the complex in 2012 was predicated on 30 of the units going to WACHS through the Government Regional Officers' Housing program.
But the transfer never went ahead because "GROH no longer required" them and the apartments were put on the market.
As the apartments sat empty with no interest from buyers because the Karratha market was in decline, the Opposition criticised the Government for acting as "property speculators" and risking taxpayers' money to partly underwrite the development.
Health service chief executive Jeff Moffet said yesterday it had wanted the apartments transferred to the agency so it could manage them, rather than GROH.
Mr Moffet said more housing would be needed to accommodate consultants, specialists and project managers as construction of the $207 million Karratha Health Campus started next year.
"It's a good outcome for us, we really want the units," Mr Moffet said.
Regional Development Minister Terry Redman told a forum on the economic future of Karratha yesterday that all the Government-owned Pelago East apartments would be occupied within six to 12 months.
"Some of those units were put to market under the affordable housing policy, for those who might want to pick up Keystart loans to support it," he said.
"That hasn't proven to come to fruition, so this decision has been made to support the (health workforce) growth in the community."
Mr Redman said despite criticism of the Government's investment in the Pelago towers, he would make the same decision to use government money to leverage the development again today.
"It got the right outcome. It brought private sector resources to the table," he said.
In September, it was determined taxpayers had paid out more than $124,000 just in council and water rates and strata fees maintaining the empty luxury apartments since the building was completed last November.
The Opposition also questioned whether the decision to buy the apartments up-front was influenced by donations by developer Finbar and builder Hanssen to the Liberal and Nationals parties.
