A replica of the Karratha Pelago Tower fiasco has happened in South Hedland, which lead to the exposure of another government deal with the private sector.
The Osprey Village, completed in April this year, was aiming to accommodate mining workers in South Hedland. However, the state opposition highlighted that only 132 of the 293 units available were occupied.
Despite the fact that more than half of the Osprey Village is unoccupied, the State Government has paid a fixed management fee of $610,000 per month to manage the village.
According to the Fleetwood Corporation’s annual report, the company is now seeking to secure an agreement with the Department of Housing to manage the project for the next 15 years. According to the Opposition, the corporation will rake in almost $110 million.
WA Opposition Leader Mark McGowan said the Barnett Government did not learn from the Karratha incident.
“Unfortunately, Mr Barnett, the Liberals and the Nationals have not learned the lessons of history in Western Australia, and that is; do not risk large amounts of taxpayers’ money on speculative deals,” Mr McGowan said.
“Or else, you’ll get your fingers burnt and that is what has happened here.”
It’s reported that the Barnett government has contributed $53 million to the project. The Fleetwood Corporation was award with the rights to build and manage the village in 2012. The corporation has also invested $42 million.
The Opposition Leader believes the government should try to renegotiate a deal with Fleetwood in order to save the taxpayers’ money.
Photo Courtesy: Fleetwood