DESPITE acknowledging the costs could outweigh the gains the Murray Shire Council is ready to go to court to get the compensation it says it is owed by construction giant Southern Gateway Alliance (SGA).
A construction and government partnership the SGA built the Perth-Bunbury Highway and the Murray Shire has been negotiating for more than a year to get compensation for damage to local roads by haulage trucks transporting raw materials during the project.
After the two parties failed to agree on the amount of compensation due, an independent consultant was engaged and estimated the cost of repairing the roads at $636,000.
The independent audit was not accepted by SGA, which instead offered $265,000.
An appeal to Transport Minister Simon O’Brien by the Shire was unsuccessful with ministerial staff saying “the SGA’s offer is considered fair and reasonable”.
A ministry spokesperson said while SGA did not dispute the council’s claim that some roads were damaged as a result of the highway construction of Forrest highway, it maintained it was not responsible to compensate for damage resulting from haulage operators undertaking tasks unconnected with the construction work.
At the April 29 meeting the Murray Shire Council instructed chief executive Dean Unsworth and Technical Services director Ian Daniels to pursue legal action and represent the council in court if further negotiations were not successful.
“The amount we are chasing will probably cost us the amount we will win,” Shire president Noel Nancarrow said.
“We listened to the umpire [independent consultant] and were perhaps naïve but we thought that would be the end of it.
“We have no option but to go to court or else not pursue it any further.”
Mr Unsworth said if an agreement could not be reached, ratepayers would have to bear the cost of fixing the roads.
“This has been going on for a couple of years and SGA has not budged,” Mr Unsworth said.
“Ratepayers will be footing the bill of $635,000.
“We don’t want to spend any more ratepayers’ money but if our next meeting is unsuccessful then council has said to take it further.”
Cr Nancarrow said a letter from Murray MLA Murray Cowper had suggested there were “no other avenues we can pursue”.
“It is a disgraceful position for the government to put the Shire of Murray in.”
After a previous meeting was delayed, the Shire will now meet with Mr Cowper, Mr O’Brien and SGA on May 14 to try to resolve the issue.
Both the Transport ministry and Main Roads WA declined to comment as “discussions between all parties are still ongoing”.
An SGA spokesperson said “the matter will be discussed… and we hope to reach a resolution at the meeting”.
Infrastructure Minister at the time of the highway’s construction and now candidate for Canning, Alannah MacTiernan likened the Shire’s fight for compensation with disputes experienced during the construction of the Perth-Mandurah rail link.
“If there is that amount of disagreement, the court is the appropriate place to have it dealt with,” Ms MacTiernan said.
“Some projects are very tough financially and some do very well – the companies involved in that project have done well.
“In my experience they play it very tough.
“A number of matters with the Perth rail had to go to court, it is not ideal but ideally it is what the courts are there for if the minister can’t intervene.
“If Council has a good case, they should go to court.”
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