YACHT clubs on the Swan River are preparing to renegotiate their riverbed leases to preserve current terms they have with the Western Australian Government, even though there are about 26 years remaining before they require renewal.
YACHT clubs on the Swan River are preparing to renegotiate their riverbed leases to preserve current terms they have with the Western Australian Government, even though there are about 26 years remaining before they require renewal.
The 10 Swan River yacht clubs negotiated a concessional rent over their riverbed leases in 1986, and while those leases are due to expire in 2006, each club has the option of a 25-year extension.
The clubs fear they may not be able to negotiate such favourable terms in 26 years’ time and could end up paying higher rates.
Currently, market rates for river-bed leases are causing financial pain for two private marina operators on the Swan River.
One operator recently had its rent increase from $32,000 a year to $72,000 a year – a cost increase it claimed it could not fully pass on to its customers.
The private operators say the concessional rates give yacht clubs an unfair advantage on pen rates.
Boating WA, the represen-tative body for recreational boat owners, is concerned about the increasing costs facing marina operators and, potentially, yacht clubs because they represent a further cost to boat owners.
There had been concerns the Government was planning to increase jetty licence fees, something every jetty owner has to pay. However, Government sources say no jetty increase is planned.
Yachting Association of WA general manager Tony Clayden said his organisation wanted to meet with the Department of Planning and Infrastructure to see if it could negotiate on behalf of the other yacht clubs in the State.
“As the representative State body I feel they [the DPI] will listen to us and give us a good hearing,” he said.
“If the worst comes to the worst we can always fall back on the terms of the existing lease.
“We don’t want to get to 2031 and have the DPI say ‘right, the leases are up’.”
Mr Clayden said the Yachting Association had a good relationship with the DPI.
Royal Perth Yacht Club general manager Stuart Walton said the RPYC would undertake its own negotiations with the DPI.
“We are a sporting club. Any costs have to be borne by the members,” he said.
Private marina owners say yacht clubs’ low rent agreement has allowed them to offer pen rates well below the market price.
Yacht clubs reject that argument, saying that while their pen rates may be lower than those charged by private marina operators, other costs such as membership fees have to be factored in.
Mr Walton said it cost about $3,000 for a 12-metre pen – the average size of a pen – and $895 a year in membership dues.
According to its website one of the private marina operators on the Swan River, Aquarama, charges between $3,465 and $4,343 for a 12-metre pen.
