Independent Warringah MP Zali Steggall met with Finance Minister Katy Gallagher on 25 March to discuss the future of HMAS Penguin and the government’s proposed divestment process.
Ms Steggall conveyed to Minister Gallagher the strong community concerns about what parts of the site may be divested and whether any land identified for sale would be set aside for genuine community use.
“The HMAS Penguin site has been held by Defence on behalf of the Australian people. It is not simply an asset to be sold off in a fire sale,” Ms Steggall said.
Ms Steggall emphasised the importance of preserving the site’s bushland, including a pristine angophora forest, noting that only a small percentage of remnant bushland remains across parts of Sydney Harbour’s north shore.
She also urged Minister Gallagher to ensure that any divestment involving existing buildings would prioritise social and affordable housing.
“If the government seeks top market value, the site will inevitably be acquired by developers for luxury apartments. That outcome would be at odds with both the site’s environmental value and the urgent need for affordable housing in our community,” she said.
“With rental prices among the highest in the country, essential workers such as teachers and nurses are increasingly unable to live near where they work. This is a rare opportunity to address that.”
Ms Steggall was informed that HMAS Penguin was expected to be included in a later, second tranche of Defence sites identified for full or partial divestment and a consultation process would be undertaken for each site, with local MPs and communities to be involved.
Proceeds from any divestment were to contribute to the Defence budget but decisions would not be driven solely by achieving the highest sale price and must align with broader government priorities, including housing. No final decisions had been made and the divestment process remained at an early stage.
Ms Steggall welcomed the commitment to community consultation but reiterated the need for transparency and strong safeguards.
“I will continue to advocate to ensure this site remains in public hands where possible, that its environmental value is protected, and that we seize this opportunity to deliver much-needed affordable housing for our community,” she said.
Ms Steggall is in regular communication with Mosman Mayor Ann Marie Kimber, and seeks to ensure all levels of government remain informed about HMAS Penguin. Mayor Kimber said the site was a unique and valuable public asset that must remain in public hands.