Work underway on Swan Brewery redevelopment

Heritage Minister Jim McGinty says the redevelopment of the Old Swan Brewery is steaming ahead - with the developer, Multiplex, spending $1 million a month on the project.

Mr McGinty said the company would spend an estimated $40 million on restoring and refurbishing the heritage buildings over the life of the project.

"The buildings and land remain in Government ownership throughout the 65-year lease agreement, at the same time, a public asset is fully restored at no further cost to the taxpayer," Mr McGinty said.

"Despite the fact that the risk is being borne by Multiplex, the Opposition would still have us believe that the agreement is not commercially sound."

Mr McGinty said he would table in State Parliament this week calculations on estimated returns to both Multiplex and the State Government - which had been prepared by the Building Management Authority, Treasury, the Valuer General's Office and a private commercial consultant.

"These calculations indicate that the company could expect an estimated return of approximately $25 million - or $384,000 annually - in present dollar terms over the length of the 65-year lease.

"However, it would be unlikely to receive any return for the first 20 years.

"This is based on the rental the company is likely to receive for the lease of office space, restaurant areas and car parking bays.

"The analysis also presumes a more buoyant property rental market than at present - $200 to $300 per square metre for office accommodation rather than the current situation where good quality St George's Terrace offices can be obtained for close to $100 per square metre and with long rent free periods.

"Given the size of its investment any right-minded person would expect the company to receive a return for restoring one of the State's most important group of heritage buildings."

Mr McGinty said apart from the heritage preservation of a public asset the lease arrangement would also involve significant financial benefits for Western Australians.

"Estimates indicate that the return to the State from the agreement with Multiplex would range from $39 million to $48 million in present dollar terms.  Clearly the benefit of the lease is with the Government.

"This is calculated on the value of the restored buildings and rental paid by Multiplex."

Mr McGinty said Opposition claims that the redevelopment was 'financially unsound' had no basis in fact and were designed simply to portray the project in a negative light.

Mr Court and his cronies will do anything they can to frustrate work on the Old Swan Brewery - whether by continual carping criticism or direct parliamentary interference.

"Instead of supporting a project which will provide 250 direct jobs and up to five times that amount indirectly, the Opposition is seeking to put people back on the unemployment queues for some cheap political motive," Mr McGinty said.