Published on Thursday, 14 December 2017 at 12:00:00 AM
The Town of Port Hedland Council voted to approve a new lease for the Port Haven short-term accommodation village for a period of ten years at last night’s Ordinary Council Meeting.
The lease for Port Haven, which is occupied primarily by BHP, is due to expire in March 2019. Although the lease has been novated to the Port Hedland International Airport (PHIA), it cannot be renewed or extended without the consent of the Town.
Both BHP and PHIA had requested that the Town approve the renewal of the Port Haven lease for ten years to March 2029, with a further option to renew for an additional ten years.
The Council approved the decision subject to a number of key actions being undertaken in the next 3 months. These include (and not limited to):
- Provision of a forecast of workforce accommodation requirements within the town for the next ten years demonstrating continued reduction in operational employees.
- Engagement of a suitably qualified person to prepare a Social Impact Assessment (SIA) commitments to assess the socioeconomic impact of the facility on the town.
- Preparation of Social Impact Management Plan (SIMP) to ensure the use of local goods and services and contractors, wherever possible.
The revenue from the lease paid by BHP to PHIA is approximately $1.3 million per annum, equating to around 7% of PHIA’s revenue. The rates paid by BHP to the Town of Port Hedland, under the agreement represent 5% of the Town’s current rates income.
According to Town of Port Hedland Mayor, Camilo Blanco, the decision considered the specific needs of the resource sector and financial security of the Town:
“While the Town is committed to promoting long-term residential growth, we also recognise industry’s unique accommodation requirements in relation to its maintenance and shutdown operations.
“The Port Haven village was strategically placed on airport land to accommodate these crews and to provide a source of sustainable income for the community’s future growth.
“Our Town is a global industrial hub and significant to the national interest.
“As a result, we need to remain flexible and responsive to the needs of our industry partners and work together to achieve win-win outcomes for both business and the community.
“BHP is a generous and long-term contributor to community. The approval of the new lease, not only provides security of tenure for workers, but will also allow for future upgrades of the Airport and provide a substantial revenue stream to Port Hedland, for many years to come.”
The Town of Port Hedland will continue to work with all key stakeholders and the community throughout the lease renewal process and will provide regular updates on the Social Impact Assessment (SIA) and Social Impact Management Plan (SIMP) in the coming months.
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