City of Stirling to pay City of Bayswater for transfer of Maylands

2/12/98

Local Government Minister Paul Omodei has decided that the City of Stirling is to pay the City of Bayswater $1,654,307 to accompany the transfer of Maylands from Stirling to Bayswater.

In addition, Bayswater will assume control of the Maylands Golf Course and tavern/function centre without payment.

The local government share of 3.5 per cent of the profit of future sales of claypits land will also be paid to Bayswater.

Mr Omodei said he had made the decisions after the two councils had been unable to agree and had asked him to adjudicate.

He had carefully considered the submissions made by both councils and while he had not granted either council what it wanted, he expected that both would accept his decision without complaint.

Mr Omodei said he assessed Maylands' entitlement as 5.382 per cent of Stirling's net worth - a figure that was midway between the percentages proposed by Stirling and Bayswater.

When this figure was applied to the $12,048,048 valuation of Stirling's plant, less plant valued at $118,255 that was physically transferred, there was a payment of $530,171 due to Bayswater.

When it was applied to $13,378,124 in cash reserves held by Stirling, the payment to Bayswater was $720,010.

Finally, when it was applied to the $7,508,850 already received by Stirling from the sale of lots in the Maylands claypits subdivision, the payment to Bayswater was $404,126.

These three payments totalled $1,654,307.

Mr Omodei said that while Bayswater might have expected a larger payment, the profit of more than $400,000 a year from the golf course and the ongoing profits from the claypits sales would compensate.

Media contact: Hugh Ryan 9213 6705