LINLEY Valley abattoir has shelved a $50 million expansion plan for its Wooroloo operation after failing in its Supreme Court bid to overturn an approval for a permanent park home on its boundary.
The plant processes virtually all of the pig meat in Western Australia and employs 260 people at its abattoir, which is located next door to the former Andalusian horse park, El Caballo Blanco.
Owned by the national food and agribusiness company the Craig Mostyn Group, Linley Valley intended to expand its business with the construction of a sheep and beef abattoir, but plans for a retirement village next door have forced it to put this on ice.
El Caballo Lifestyle Village proponent Matthew Pavlinovich secured approval for as many as 182 permanent park homes on the site adjacent to Linley Valley in 2010.
A former bankrupt who was embroiled in the finance brokers’ scandal in the late 1990s, Mr Pavlinovich claimed Linley Valley’s expansion plans were a “red herring” thrown up to dissuade the Shire of Northam from approving his project.
He said the abattoir had been trying to oppose the development since he bought the land in 2006.
“Our land is zoned tourism, which is in accordance with the development approval we have got and I don’t know what they are driven by but all I can tell you it was the most ridiculous application that has been before the Supreme Court,” Mr Pavlinovich said.
Development approval for the abattoir’s expansion was secured back in 2007, but Craig Mostyn chief executive David Lock said the creation of a permanent, residential population on its doorstep created too much uncertainty for the group to push ahead with such a significant investment.
Mr Lock claimed the state government knew business didn’t have the certainty it needed to invest in WA but that in many cases local authorities decided these important planning decisions.
“Local councils have the power to approve anything within the zoning that applies within their council and as long as the zoning exists they seem to be reluctant to stand in the way,” Mr Lock said.
“I don’t think they are cognisant of the future conflict they will be embroiled in.”
This is not the first time Craig Mostyn Group has grappled with urban creep in WA after a residential development was built within one kilometre of its rendering plant in Hazelmere.
As a result, the business is actively pursuing investment opportunities in other states, where Mr Lock claimed the planning approvals and appeals process offered more certainty.
“We would love to spend $50 million and build a new beef abattoir in WA, the first new beef abattoir in WA for 40 years,” Mr Lock said.
“But when the risks increase, we have enough risks in just running a business let alone having risks that aren’t part of our core business … like managing new neighbours it just gets too hard and we go off and find other investments.”
Planning Minister John Day reviewed the Shire of Northam’s decision to approve the permanent park home development but concluded the council had “appropriately applied the provisions of its local planning scheme when considering the applications”.
The development for residents aged 45 and above is a collection of permanent park homes manufactured by Fleetwood and situated about 500 metres from the abattoir’s wastewater treatment ponds.
The Craig Mostyn Group told WA Business News the water in these ponds was carefully treated, but it only took a pump breakdown or some abnormal weather to upset the balance.
Mr Lock said the outcome of its Supreme Court action was disappointing and it was working with its legal team at Cornerstone Legal to review the judgement and decide whether to pursue an appeal.
