Council Chases Marina Funds

Illawarra Mercury

Friday May 18, 2007

By SARAH ALLELY

SHELLHARBOUR City Council will head to Canberra within the next month on an unusual mission.

The council wants to get back some of the nearly $10 million paid in GST for Shell Cove land sales, to fund a marina.

General manager Brian Weir said GST was not factored into the 20-year-old Shell Cove project.

"It's one of the extra costs, a very significant cost, particularly when we're building the marina on behalf of the state and federal governments," he said.

"All I'm saying is I want every bit of money to build that boat harbour, so if $10 million goes to the Federal Government that's $10 million less," Mr Weir said.

The boat harbour is the centrepiece of the $1.5 billion Shell Cove residential and tourism joint venture between the council and state developer Australand.

The council said by completion, $40 million in GST will have flowed to the Commonwealth.

Councillor Tom Hawker raised the GST issue at the council's 2007-08 budget meeting this week, and a motion was passed for an urgent request to be made to Senator Concetta Fierravanti-Wells and for the council to approach Canberra.

Independent councillor Charlie Mifsud questioned how Shell Cove was losing money, when the purchaser paid GST.

He said it was just a political move in a federal election year.

Cr Hawker said while GST was paid by the purchaser, a market price for land had evolved and nearly $10 million was going to the Government.

"I'm not saying we should get it all back, because we're in partnership with Australand, but some."

But the Albion Park accountant said a portion of the GST should come directly back to the council.

Mayor David Hamilton said he had tried once before, but would again plead the council's case for financial support for Shell Cove.

He said a previous trip to Canberra with MPs Sharon Bird and Jennie George did not get a result.

Ms George was happy to assist the council, but thought a direct grant was more likely than a GST rebate.

Sen Fierravanti-Wells said the Labor-led council should have approached her directly rather than employing a "cheap political stunt" by passing a resolution at the public meeting.

© 2007 Illawarra Mercury

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