Caroline Spencer has been the state's auditor general since 2018. Photo: David Henry

WACA pool allocated parking levy funds

Thursday, 16 February, 2023 - 12:00
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Money raised via the Perth parking levy has been conditionally approved for the WACA Ground aquatic facility, a project the state's auditor general has found to be outside the fund's current purpose.

The assessment of the politically contentious levy, tabled in state parliament this morning, found the state government had “no plan” on how to spend more than $190 million collected via the fee.

Plans for a community swimming facility to be built and operated at the WACA Ground in East Perth hit a snag in 2021 after Perth City Council unanimously rejected the proposal.

Councillors have since walked back their initial opposition to funding the pool's construction phase but have been reticent to commit to paying ongoing costs for the pool.

However, an audit of the levy by auditor general Caroline Spencer has found $580,000 of funds collected via the levy were conditionally approved for the project, part of the Perth City Deal, subject to changes flagged earlier this week by Transport Minister Rita Saffioti.

Spending via the fund is limited to transport infrastructure in Perth’s CBD under current legislation.

Ms Saffioti on Tuesday said the state government would amend the Act, introduced under the Court government, to allow for greater flexibility in how the levy is charged as well as how and where the money can be spent.

Asked on the day whether funds could go towards operation of a community swimming pool, such as one planned for the WACA Ground in East Perth, Ms Saffioti did not rule out the possibility.

“Potentially, but that’s a community asset, and that’s something for the City of Perth residents,” she said.

“So, it makes a bit of sense for the City of Perth residents to be able to benefit from that.”

None of that money has yet been spent.

Responding to the report this morning, Ms Saffioti said she had sought advice prior to spending anything, with cabinet having endorsed setting money aside for if the legislation was changed.

"The reality is these types of assets are all about bringing life and vitality to the city," she said.

"Whether it's schools, whether it's the concert hall, whether it's swimming pools. All this infrastructure is all about boosting liveability and more people into the city."

Ms Spencer's findings, released just two days after the state government announced its planned changes, comes just days after City of Perth Lord Mayor Basil Zempilas claimed the proposed reforms were “unfair”.

He argued that, under the state government's proposal, money collected from ratepayers in City of Perth could be spent on projects that do not directly benefit the city’s residents.

Ms Saffioti has rubbished those claims, arguing any changes to where the money can be spent will be minor and address legislative quirks.

Ms Spencer’s report noted that, while Department of Transport officials were briefed on the fund’s purpose, procedures concerning its transparency and consultation were lacking.

She said the lack of a plan had led to $192 million in funds to sit idle in a special purpose account.

Tax receipts from the parking levy have since 2018 routinely exceeded $50 million, with spending in that time never reaching more than $27 million per financial year.

“A lack of consistent consultation with the City of Perth, as required by legislation, and public reporting, further contributes to community speculation about why some projects are funded and others are not,” she said.

In its response, the Department of Transport said it would commit to the report's recommendations, including publishing details on projects that will be funded by the levy.

Shadow treasurer Steve Thomas today welcomed the auditor general's increased focus on special purpose accounts, saying reports like those released today were concerning.

“It is time for the some of the gold standard transparency the premier promised us in 2017 but has failed to deliver," he said.