By ANNA USHER

Warringah MP Zali Steggall has taken the fight for HMAS Penguin to Canberra – pressing Finance Minister Katy Gallagher to guarantee the Middle Head site delivers affordable housing and not luxury apartments when the sell-off moves ahead.

The two met on Wednesday, with Steggall pushing for community consultation, environmental safeguards and a commitment that any land identified for divestment would be set aside for genuine community use.

“The HMAS Penguin site has been held by Defence on behalf of the Australian people,” Steggall told the minister. “It is not simply an asset to be sold off in a fire sale.”

Approximately two-thirds of the 16.64-hectare base could be sold off as part of a broader national Defence divestment program, first revealed by Mosman Collective last month.

Steggall was blunt about what chasing top dollar would mean.

“If the government seeks top market value, the site will inevitably be acquired by developers for luxury apartments,” she said. “That outcome would be at odds with both the site’s environmental value and the urgent need for affordable housing in our community.”

With rental prices on the lower north shore among the highest in the country, she said the sale is too good an opportunity to squander. “Essential workers such as teachers and nurses are increasingly unable to live near where they work. This is a rare opportunity to address that.”

She also pressed hard on the angophora forest – the stands of Sydney red gum locals know well – warning that only a small percentage of remnant bushland remains along this particular stretch of the harbour.

The government acknowledged the site is “complex and constrained,” with Commonwealth heritage listing and federal environmental law obligations covering its bushland. HMAS Penguin will not be in the first wave of sell-offs but is expected to feature in a later, second tranche, with a consultation process (including local MPs and communities) promised before any decisions are made.

Steggall was also assured that decisions would not be driven solely by achieving the highest price, and that broader government priorities, including housing, would factor into any outcome.

“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.

Mosman Mayor Ann Marie Kimber, in regular contact with Steggall on the issue, backed the call for transparency.

“Decisions about its future must not be made behind closed doors or driven by short-term interests,” Mayor Kimber said. “Genuine community consultation must be at the centre of any decision-making process. We need a transparent, inclusive process that properly considers community needs.”

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