Financial management of Rottnest Island

Extract from Hansard
[COUNCIL — Tuesday, 12 June 2012]
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ROTTNEST ISLAND — FINANCIAL MANAGEMENT
5601. Hon Lynn MacLaren to the Minister for Child Protection representing the Minister for Tourism
(1) With regard to the financial management of Rottnest Island, I ask — Are business operators on the island subsidised by the Rottnest Island Authority (RIA) for the cost of utilities?
(a) If yes to (1) — why are they subsidised; and
(2) what is the cost to taxpayers of the subsidy? What is the estimated annual net profit to the RIA from the upgraded golf course and country club during the first three years of operation?

Hon ROBYN McSWEENEY replied:
(1) Yes
(2) (a) Utility prices are subsidised due to the high cost of producing utilities on Rottnest Island and to offset the full extent of these costs being passed onto visitors by business operators.
(b) As the RIA is largely self funded, the utilities are not subsidised by taxpayers.
(3) A net profit is not expected from the golf course during the first three years. Based on the current assumptions, the breakeven point occurs in year seven of the proposed ten-year lease period.