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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-02-05 Daily Xml
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WIRRINA COVE

Mr PENGILLY (Finniss) (15:44): I wish to bring to the attention of the parliament some issues to do with the Wirrina complex down on the Fleurieu Peninsula. The firm known as Equititrust Income Fund is in receivership. A company called BDO, under the direction of Mr David Whyte, are the court-appointed receivers and things are in a fairly bad way to say the least. For example, 1,600 investors, mainly elderly, invested a total of $203 million in Equititrust and they look like they are going to lose the lot at this stage.

However, the issues for us here in South Australia are that yesterday I convened a meeting between the Yankalilla District Council and two or three other people to talk about where things are going. There is $3.9 million owed to the state government by way of unpaid land tax and some $770,000 is owed to the Yankalilla Council in rates.

It is a serious situation, but one that can hopefully be sorted out. BDO have been requesting a meeting with the Treasurer over the matter and have been unsuccessful, as I understand, to this stage. I would urge the Treasurer/Premier to make contact with BDO urgently and have a meeting over this. I am worried about it. There are some 100 residents living in the Wirrina residential part. There are 55 staff who work at the Wirrina Resort. All these people are seriously concerned about where things are going.

Where the council come into it over and above their rates is that there is an issue to do with the water and sewerage plant there that is in serious need of being overhauled. It probably needs $1 million spent on it to make it operational again.

What could happen is that, if this plant falls into complete disrepair, the residents and the resort will have no water and no effluent disposal. Indeed, it also supplies the caravan park and it also supplies the marina. For your information, sir, and that of the house, the Wirrina Corporation and EIF are the mortgagees in possession of the Wirrina Cove assets, which include the resort—which I believe the government stayed at a couple of years ago—the conference centre, the marina, the golf course, the caravan park and residential and agricultural land.

There have been no acceptable offers received on any of it, despite it being on the market for over 12 months. Ray White Real Estate have been appointed to undertake a new sales campaign commencing in late November 2012. It is absolutely critical for the state, not only my electorate, that this whole area continues to operate and operates properly.

I would put it to you, sir, and I would put it to the house that one outcome could be that the government takes on the resort as a high value operational training centre as a trade-off to monies owing. That is something that I think BDO and the Treasurer need to talk about fairly urgently and I would encourage that to happen. It is of great concern to me.

The situation in respect to the water and sewerage systems at the moment is that the Yankalilla Council are put in a no-win situation for them. They may well have to take over the sewerage and water operational side of it. That is causing a good deal of angst in the wider Yankalilla community.

As you may be aware, Wirrina over the years has been into receivership on more than one occasion and it has a bit of a bad track record. However, what needs to be done is to turn a bad story into a good story. The Yankalilla Council have had consultation meetings. Mr David Whyte of BDO has been to them and things are in a bit of a pickle at the moment.

The local residents in Wirrina and across the broader Yankalilla district are most concerned. My concern is also the 55 staff; I cannot afford to lose 55 jobs. The $3.9 million owed in land tax to the state government and $770,000 in rates to the Yankalilla Council are significant amounts of money. I do not want the state to lose it and I do not want to see the council lose it.

Ultimately, there were restrictions put on certain aspects of monies refundable to the council, I understand, by a former state government. It is something that needs serious concern and I am sure the Minister for Finance will be having a look at, but I would like the Premier to, as well.

The SPEAKER: Member for Finniss, for the sake of clarity, what is BDO?

Mr PENGILLY: BDO is the court-appointed receiver. I understand it is a Queensland-based company and Mr David Whyte is the principal. He rang me today. I want a good outcome.

The SPEAKER: That may help readers of Hansard.

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