A West Australian council says its decision to spend $1.43 million buying their tiny town’s only supermarket was made with the community in mind.

The Shire of Dundas, which covers more than 93,000 square kilometres in the state south-east, has been battling a shrinking population and dwindling ratepayer income for years.

The shire’s population of less than 700 is spread between Norseman, the remote border post of Eucla and multiple remote pastoral stations and mine sites.

The council purchased the Norseman IGA earlier this year in a bid to create a new income stream.

The deal included a house valued at $185,000 and the post office.

The council took ownership at the start of September.

‘Going to work out alright’

The most recent financial statements published by the shire show the Norseman IGA had turnover of $517,543 and posted a profit of $251,540 for September.

Shire president Laurene Bonza said profits would be sunk back into community projects once the council replenished its cash reserves, which funded the purchase.

“We didn’t borrow any money — we took it out of our reserves … and then you get the first month’s figures and you think, ‘Well, I think this is going to work out alright,'” she said.

Ms Bonza said the council’s long-term vision was to replace the 75-year-old supermarket building as part of a plan to revitalise the town centre.

‘Barrage of personal attacks’

The shire’s workforce has gone from about 35 to 60 since the acquisition, but the purchase attracted some controversy. 

The ownership changeover has also occurred against the backdrop of a public dispute with Norseman’s long-serving GP Graham Rowlands, who had requested up to $300,000 to fund additional locum support as he neared retirement.

Shire chief executive Peter Fitchat wrote in a report to council on November 28 that residents were being misled that the supermarket deal was the reason the council knocked back the doctor’s request.

“Dr Rowlands himself stood outside the IGA supermarket and encouraged community members not to support the shire in their effort to purchase that business, as that was the reason the shire couldn’t pay the doctor,” Mr Fitchat wrote.

“Among the general attacks on the shire, the CEO and the shire president, particularly, have experienced a barrage of personal attacks and harassment on social media platforms, which have been distressing and unacceptable.”

‘We’re getting good stuff’

Betty Batty, a Norseman resident for more than 30 years, said she thought the food selection had improved under the council’s ownership.

“We’re getting good stuff — I’m happy with it,” she said.

“They’ve got more variety, more choice.

“[The shire] feel they’re doing the right thing … hopefully we get cheaper rates out of it.” 

Norseman pharmacist Adam Hawwari said he was surprised the council had turned such a profit in such a short period.

“I think the staffing is better and it looks like it’s more organised,” he said.

“I think they’re handling the business well,” he said.  

“It affects us because it’s a small town.

‘Doing it tough’

Pensioner Richard Kliendiest has lived in Norseman since 1980 and says locals are struggling with the cost of living.

“Prices have gone up, but they’ve gone up everywhere, so it’s pretty well the same,” he said.

“I haven’t got any real complaints … but if they are making that much they could give a little bit back to the community because I’m on a pension and doing it tough at the moment.

Mr Kleindiest said the council should focus on improving amenities in Norseman rather than rebuild the supermarket.

“I don’t think it really requires it — the shop services us quite well, so why go wasting money building another building?” he said.

“They’d be better off doing more around town so it doesn’t look so derelict … I think they would better off doing something like that.”