Fremantle film studio plan on ice as construction cost blows out in WA

An artist's impression of what the film studios in Fremantle at Victoria Quay could have looked like. (Supplied)

A $100-million film studio that was an election commitment from the WA government is looking unlikely to go ahead after the Premier conceded the waterfront site in Fremantle had problems.

In the lead up to the election last year, Premier Mark McGowan said the project would create 2,800 ongoing jobs in production and hospitality.

It was to be a "world-class" film studio at Victoria Quay.

At the same time, Mr McGowan promised to invest $20 million in a screen production fund to attract national and international projects to WA.

Today, the Premier conceded the project, which he said was a "market-led proposal", had hit a road block and alternative sites were being considered.

"It's currently going through negotiation with the proponents, but the Victoria Quay site has a range of problems that weren't originally identified and obviously the cost of construction has gone up significantly in the last year or so," he said.

Mark McGowan had expected the studios to provide 2,800 ongoing hospitality and production jobs.  (Supplied)

WA's construction industry is facing COVID-related supply chain issues.

Demand also jumped after the WA and federal governments introduced incentives for new builds.

The issue is compounded by a labour shortage in the state that has been linked to the hard border.

All of these issues have driven up the cost of building and blown out construction project timelines.

Mr McGowan did not specify the problems with the Victoria Quay site, but said it was brownfield rather than greenfield – which means it was on previously used, sometimes potentially contaminated, land.

"We want to make sure that industry has a strong future in WA, indeed as it does in New South Wales and Victoria," Mr McGowan said.

"The government remains committed to it, it remains a great project.

"We're looking at alternative sites as part of the project."

WA Liberal Party leader David Honey said it was a blow for the local film industry.

"It's disappointing to see that deal fall over given the promise it had for Western Australia," he said.

"They [the government] were promoting, it, they were saying this was a done deal … and yet the whole thing falls over, clearly the whole thing hadn't been thought through.

"It seems as though this was an election stunt rather than a meaningful commitment to a new industry in Western Australia."