Marina operators have warned that one of Western Australia’s most popular pastimes could get more expensive, with boat owners facing higher charges to house their vessels because of rising State Government charges.
Two private Swan River marina operators have told WA Business News that recent rent bills, including seabed lease charges, from Department of Planning and Infrastructure had risen by as much as three times in as many years.
One marina claimed it received an annual seabed rent bill for $104,000, a jump from the $32,000 fee in 2001. The bill was later reduced to $72,000 after the company appealed the rent hike.
Seabed rents in the Swan River are determined by private property manager McGees, which acts for the Department of Planning and Infrastructure.
DPI manager regional and asset performance Steve Jenkins confirmed that there had been rent rises but said that they had been fair and reasonable.
Mr Jenkins dismissed operator concerns about a potential for a conflict of interest in McGees’ dual role as a valuer and as a property manager whose fee structure is linked to overall rental income.
He said while McGees was responsible for valuing the seabed leases, the tenants had the right to appeal that valuation to an independent valuer appointed by the Institute of Valuers.
Mr Jenkins said both private marina operators had recently objected to their rent increases.
“The independent valuer upheld the McGees valuation,” he said.
Both marina operators said they were forced to pass the seabed rent increases on to their customers in the form of higher pen rates.
Aquarama operator Brendan Grieve said he felt the rent hikes could pose a threat to the boating lifestyle many Western Australians held dear.
“My concern is that the price of berthing a boat on the Swan River is getting to the point where people won’t be able to afford it,” he said.
While the rent increases have been restricted to private marina owners, there are concerns that the rises could spill over to yacht clubs, the other main non-government boat mooring option.
But Mr Jenkins said yacht clubs were on a different lease to the private marina operators.
Yacht clubs pay a small “concessional” rent on their seabed area through leases negotiated with the government nearly 20 years ago.
Mr Jenkins said those leases were on a 21-year term with a 21-year extension option.
The Government is the other major marina operator in WA.
