State set to pay owners

The Department of Housing says the owners of two homes in Secret Harbour that are sinking and falling apart should receive their one-off payments before the end of the month.

Acting general manager of business and commercial operations Stewart Kestel said while the department was not responsible for the situation, it had agreed to buy the properties at market value in recognition of the hardships the owners were facing.

Mr Kestel said the department was waiting for the owners’ settlement agents to finish arrangements so the transactions could be finalised, and it was anticipated this process would be completed before June 30.

Warnbro MLA Paul Papalia, who campaigned f o r t h e homeowners, said he was disappointed with the payment amount (of $370,000) as he believed it was below market value, but was relieved they were finally getting something.

A spokeswoman for Housing Minister Troy Buswell said Mr Buswell had asked that the Building Commission come up with a long-term solution for homeowners caught in similar situations in the future.

‘‘Such a solution may include, but not be limited t o , the introduction of a modest levy through the building approvals process to specifically provide funding for these types of events or perhaps assessing the capacity to alter compulsory insurance contracts that householders must enter into,’’ the spokeswoman said.

She said it was important to note the department was buying the properties, not providing compensation to the owners, as the department had not developed the land or constructed either of the dwellings.

‘‘As the minister pointed out in Parliament, this is a complicated matter which has so far been dealt with in an ad hoc manner.’’

‘‘He has asked for advice from the Building Commission in order to implement a consistent mechanism to deal with these kinds of cases.’’