Peel Development Commission defends Transform Peel project

PDC chairman Paul Fitzpatrick said it was difficult to understand how the $69 million project was overlooked in view of the jobs, economic growth and environmental benefits it would bring to the Peel region.

“Our regional development minister Alannah MacTiernan supports the program as do the local governments, so it’s extremely disappointing that the federal government’s response has come down like this,” he said.

“Secured private investment was never conditional to the federal funding submission we made however the business case for Transform Peel clearly stated the program needed the $19.5 million federal funding to complete phase one of the program to de-risk the initiative to the point where private sector would respond with investment.”

Transform Peel includes both the Peel Business Park, which hopes to attract 160 businesses, and the Peel Food Zone, and has been supported by both sides of politics.

Mr Fitzpatrick said Transform Peel might need to be rescoped if extra funding could not be secured, which could “decrease potential outcomes of the program as well as delay the implementation of the program by years”.

However, Mr Fitzpatrick said he could not talk about how much private investment the project had attracted.

“Due to commercial in-confidence, it is not possible to disclose investment deliberations however a recent example is the investment partnership between two organisations which have the ability to leverage $10-$20 million in research investment in the next five years,” he said.

In the budget submission made to the federal government in January, 19 businesses were listed as being “in discussion” to move to the Peel Business Park, with only two identified as “highly likely” to make the move.

Since expressions of interest (EOIs) were invited in December 2016, the PDC had only received eight.

“All parties have expressed interest in acquiring land within the next two years,” Mr Fitzpatrick said.

“This level of interest is consistent with the commission’s expectations for a project of this nature and the EOI and market attraction strategies are ongoing.”

Mr Fitzpatrick said he was not giving up on securing funding.

“The commission and our Transform Peel program partners are investigating all available avenues of further federal, state and private investment,” he said.

A spokesperson for federal treasurer Scott Morrison would not explain why Transform Peel was not funded.

“As the Member for Canning has indicated, Commonwealth grant schemes may enable, if applications are successful, the state Peel Development Commission to further pursue the project,” she said.

“Partnerships with private investors can also contribute to the success of these types of projects.”