Benny Wu denies breaching Double Island lease conditions as Land Court hearing looms

Double Island lessee Benny Wu has revealed one big reason he has been allegedly unable to comply with lease conditions and have day facilities operating. Find out what it is.

Lawyers for Hong Kong investor Benny Wu have vociferously argued his company should not be stripped of lease its of defunct Double Island, saying it was “impossible” to sort out issues because of a lack of barge access.

Last October, Resources Minister Scott Stewart’s department applied to the Land Court to strip Mr Wu’s Fortune Island Holding Company of the lease he acquired for $5.68m in 2012.

“Lessees on government property are required to meet the conditions on their leases,” Mr Stewart said.

BennyWu, who has held the lease to neglected Double Island since 2012, has argued he should not be stripped of the lease, saying there were no breaches of conditions, and if there were, “regularisation of such breaches is imminent”. PICTURE: ANNA ROGERS

Provision of day use facilities including amenities was a condition of the lease.

Last year the government issued a March 31 deadline to fix things.

Fortune Island Holding Company legal representatives have responded to the government’s moves to strip Mr Wu’s company of the Double Island lease in a nine page document filed with the Land Court.

The document said the company did not admit the department or Cairns Regional Council had received any, let alone numerous, complaints about the use and management of the land because it did not know if that was true.

Up-market Williams Esplanade at Palm Cove overlooks Double Island, which has ‘no trespassing’ signs on it although a condition of the lease is that day facilities are in place. Picture: Brendan Radke

The company said that in compliance with conditions of its lease, it had prepared bushfire and facilities management plan, a disaster management plan, and a waste management plan, all of which were now approved.

It said to the extent it had not complied with any condition of the lease, that was because it was unable to secure a barge to take infrastructure, equipment, and personnel to sort those issues out.

“Without reliable and regular barge access to the island improved compliance with the conditions of the lease has proved, and has been as a matter of fact, impossible,” the document argued.

Double Island lessee Benny Wu failed to meet a March 31, 2023, deadline to have day use facilities for the public open and for the resort to be operational. Picture: Supplied

The company said it had bought a new generator, solar and sewerage infrastructure but was unable to move them or workers to the island, and power could only be restored once there was reliable barge transport.

Fortune Island also said it had signed a contract with RA Building and Services for the removal and replacement of the jetty, sewerage system, and a new generator, and the builder had a charter agreement with North Coast Maritime for a tug, a 24m barge, an 18m barge and a workboat.

The Cairns Post sought to visit Double Island to inspect the state of facilities but was advised it would be trespassing. The resort once hosted A-listers. Picture: Supplied

There was a signed memorandum of understanding with the Kunggandji Kimuy Tribal Aboriginal Corporation for a “partnership in land and sea management … to conduct cultural activities on the island for the benefit of the cairns community and in particular Aboriginal and Torres Strait Islander people”, the document said.

The company agreed in March 2021, the department asked about compliance with the lease, and Mr Wu’s company responded that May, providing a weed management plan and a plan for sewerage and evidence of insurance.

“The respondent denies that the response to the information notice was inadequate because that is untrue as a matter of fact,” the document stated.

Millionaire Hong Kong businessman Benny Wu has owned Double Island Resort, off the coast of Palm Cove in Far North Queensland, since 2012. He has allowed the facilities to fall into a state of neglect and disrepair, in breach of his lease conditions set out by the Queensland Government. Picture: Brendan Radke

Fortune Island Holding Company said it had “acted to ensure compliance with the remaining conditions of the lease can and will be regularised within a reasonable period”.

It said it did not admit conclusions in the department’s August 2022 report were “accurate or complete or represent the state of things at the island” because it did not know if it was true.

The company denied breaching lease conditions, whether longstanding, ongoing or otherwise, and added if there were breaches then “regularisation of such breaches is imminent”.

Double Island lessee Benny Wu stated in a document submitted to the Land Court if there were breaches of the conditions of his lease, “regularisation was imminent”. Picture: Supplied

It disagreed with the department’s assertion that this was unlikely, and disagreed there had been a lengthy history of enforcement activity.

The most recent council report said the site was in no condition to provide any sort of facility for tourism, general and construction waste was accumulating, there was coastal erosion, the mooring had deteriorated and could not be used and there were no working effluent systems.

Originally published as Benny Wu denies breaching Double Island lease conditions as Land Court hearing looms