Ferry agreement is recommended

Gosford Council officers have recommended that council proceed with an agreement with Fast Ships "to construct a wharf and ferry terminal at Ettalong", even though a ferry service may not be provided.

In a report to next Tuesday's council meeting, council staff have stated: "If Fast Ships builds the infrastructure and the project fails, council will have the asset of a wharf and terminal that could be used for the benefit of the public in providing alternative transport to the Sydney CBD."

Fast Ships has informed Gosford Council that it is prepared to execute documents relating to the construction of a wharf and ferry terminal at Ettalong, even though there is "nothing concrete to tell" at the moment, according to Fast Ships manager Mr Alf Salter.

Mr Salter said that Fast Ships was to meet with council in the near future regarding the issue, but he regarded executing the documents as a formality.

In the late 1990s, council considered proposals for the installation of infrastructure to allow a fast ferry service between the Central Coast and Circular Quay, according to the staff report to council.

Fast Ships was the successful party for the proposed ferry service.

Negotiations proceeded for about five years and during those negotiations approval was given for the construction of the wharf and terminal.

Council entered into negotiations with the Department of Lands and subsequently acquired a lease for the wharf site and compulsorily acquired the site for the terminal.

In 2002, council was advised of funding difficulties and negotiations were carried out with the State Government with respect to the Government providing $4.3 million towards the cost of the wharf and terminal.

Fast Ships were unable to provide a guarantee to provide the service as required by the State Government and the proposal for the council to construct the wharf and terminal with a grant did not proceed.

Fast Ships have since been negotiating privately seeking financial support, and now wished to proceed with the agreement that it would be responsible for the building of the wharf and terminal with costs being borne by Fast Ships.

The council report stated that lease documents had been prepared for the terminal and sub-lease documents for the wharf site.

A performance deed had also been prepared that requires agreement between council and the ferry operator.

The report stated that Fast Ships had not executed any documents, although there have been negotiations over a long period to get documents into a form satisfactory to the council and Fast Ships.

These documents had to be approved by the State Government because it was the owner of the land on which the wharf would be constructed.

"It is now up to the council to determine whether it wishes to proceed with the construction of the wharf and the ferry terminal," according to the report.

If council agrees that the proposal should proceed with Fast Ships, arrangements will be made for execution of the deed, lease and sub-lease.

Until these documents are executed, no work can be carried out on the site.

If council agrees that it wishes to proceed with the project, there is no financial impact for council as Fast Ships is responsible for the cost of the infrastructure.

Council agenda FS.81, June 28