Shire of Derby to begin negotiations to hand back Derby Port to the Kimberley Ports Authority

The Shire of Derby has decided to begin formal negotiations to hand back control of Derby Port to the Kimberley Ports Authority, citing unsustainable costs and mounting liabilities.

Commissioner Jeff Gooding passed a motion to begin negotiations at the July ordinary council meeting, but no deal will be signed until a satisfactory agreement is brought back to council for final approval.

Pointing to more than $1.2m in losses over 14 years, Mr Gooding said the port had become an unsustainable drain on the shire’s budget.

“We must cut off the bleeding part, which is the liability of the port,” he said.

“After 27 years, we haven’t been able to get to a position where that port is going to pay for itself and we don’t see anything in the immediate future that’s going to change that.

“This is the only local government in Western Australia that operates a port. We think it might be the nation, but it’s certainly the State.”

With the 60-year-old wharf in disrepair and the ship loader requiring demolition, Mr Gooding said the shire could no longer justify the cost of upkeep.

“The capital cost of pulling the ship loader out is major. This is not a shire that’s going to be able to support that and that’s only the start of what you need to do out there,” he said.

The resolution also ensures community access to the jetty and boat ramps will be protected, and that the shire will retain a seat at the table for future trade talks.

Mr Gooding made this point several times to reassure residents that this wasn’t a rushed handover and that any deal with the Kimberley Ports Authority would come back to council before being signed.

“This negotiation is the start of a process, not the end of one,” he said.

“If we can negotiate a firm agreement that satisfies the needs of this community — and those needs are very clear — I’m inclined to sign it. If we can’t, we won’t.

“We’re not walking away from the community. We’re walking away from unsustainable liabilities.”

Former shire president Peter McCumstie backed the handover “in principle” but called for final negotiations to be left to an incoming elected council after the October local government elections.

“First and foremost, I’d like to make it clear that I am in agreement with the direction and purpose of the report and the recommendations,” he said.

“I respectfully submit that any such final negotiation and agreement should . . . be the role of an elected council and chief executive officer who would reflect more significantly the community that they will have been elected to represent.”

Mr Gooding did not commit to delaying the process until after the election but said the request would be considered when the matter returns to council.