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‘We’re not mugs’: Perth council refuses to hand over land for new school
By Holly Thompson and Jesinta Burton
The City of Perth council has voted to reject the proposed land swap underpinning East Perth’s new primary school, igniting a fresh row between the state government and Lord Mayor Basil Zempilas.
The council declined to hand over the 1.6-hectare parcel of land for the development on Tuesday night after a draft business plan reviewing the major land transaction’s terms was brought forward as a matter of urgent business.
WA Education Minister Tony Buti, Perth Lord Mayor Basil Zempilas.Credit: WAtoday
Development at the site, which comprises two of three parcels owned by the city and occupied by the Queens Garden car park, has long been prohibited courtesy of the 64-year-old Chevron Hilton Hotel Management Act.
The state government offered to repeal the legislation in exchange for the plots, promising the city it would reap huge economic benefits.
But the ACIL Allen business plan estimated giving the land away for free would cost the city $29 million over 30 years thanks to forgone revenue from the Queens Garden car park. At the higher end of the scale the business plan estimates the city could lose up to $104 million over 30 years.
Zempilas called on Premier Roger Cook to come to the table with a fair offer.
He told councillors he believed the deal didn’t stack up and accused the state of trying to leverage the value of the city’s own land by repealing a statute that had lost all utility.
An updated render of the proposed school.
While acknowledging his prior support for the development of an inner-city primary school, the lord mayor said it was not the responsibility of local government — and it certainly wasn’t obligated to cede land at zero cost.
Zempilas, who is the only nominated Liberal candidate running for the seat of Churchlands, also questioned the veracity of the state government’s cost benefit analysis before canvassing how the city got the raw end of the deal — from lost revenue on the 513 car bays to its impact on the city’s 2036 population target of 55,000 residents.
“We’re nice people here at the City of Perth, but we’re not mugs — this is land that we bought, we own this land,” he said.
“We’ve said if the deal stacks up, we’ll be a part of it, but we have not been made a fair offer by the state government.
“So I say directly to the Premier, I appeal to your sense of fairness, your sense of good leadership and your sense of doing what is right for the ratepayers of the City of Perth. Just make us a fair offer.
“Whether it’s a cash offer, or a land swap offer, and we can all get on with delivering a primary school for Perth.”
The new school was touted as a much-needed addition to the education system, with nearby schools including Highgate Primary School bursting at the seams.
But the plans have been the subject of robust debate, including over whether the state government ever offered to compensate the city for what could have been up to $40 million for the acquisition of two car parks to build the future school.
Education Minister Tony Buti has claimed the decision was a direct result of Zempilas’ political views.
“This is an extremely disappointing decision by the City of Perth,” Buti told this masthead.
“We made this announcement nearly a year ago, alongside representatives from the City of Perth in good faith, and they have consistently said they wanted to work in partnership with the state government to deliver a new primary school for East Perth.
“The arrangement regarding the land was clear from the start.
“The city’s leadership is now blocking a primary school from being built, which is not only confusing, but very frustrating for residents who want a new school for their kids.
“We are committed to doing the right thing by inner-city families and building a new primary school even though the City of Perth no longer supports it.”
At a press conference on Wednesday, Buti was asked whether the state should simply pay the city for the land, given the importance of building a new school in the area.
But he argued there was a responsibility to protect taxpayer funds, and that the cost of the school was already incredibly expensive.
“We have never spent that much money on a primary school in Western Australia,” Buti said.
“I actually thought, in the end, in the cold light of day, that the city would agree to this offer. It is such a good offer, where you have a state government willing to invest $150 million to build a school the city has long advocated for, plus unlocking the development potential of a plot of land to the tune of $27.5 million.”
The only councillor to speak against the motion was David Goncalves, who said it was extraordinary that the recommendation had reached elected members at the eleventh-hour with no opportunity for review or community feedback.
“Is this about a genuine partnership, or is this about politics?” he said.
The council asked chief executive Michelle Reynolds to continue working with the state government to secure a deal it deemed ‘satisfactory’.
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