HPG opposes the proposed sale of HMAS Penguin
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Introduction
The Headland Preservation Group (HPG) was formed in 1996 in response to the Howard Government’s proposed sale of former Defence land at Middle Head for housing.
Following strong community advocacy and political pressure — notably from Jack Mundey and Bob Carr — the Howard Government in 2001 returned the land to the people of Australia as a gift marking 100 years of Federation. The Sydney Harbour Federation Trust (Harbour Trust) was established to manage these lands and to conserve, preserve and interpret their cultural, heritage and environmental values for present and future generations.
This wonderful parkland on Middle Head, now an invaluable public asset, is evidence of the Harbour Trust’s preservation of its extraordinary natural, cultural, and heritage values.
Defence has recently announced a further sell-off at Middle Head — this time by the Albanese Government. It is deeply ironic that the Labor Party, which once helped protect this land, is now proposing to divest part of Middle Head, one of our most precious heritage landscapes.
Federal Government Proposal
The Federal Government plans to sell 67 Defence sites nationally, aiming to unlock $3 billion (after relocation and remediation costs, an estimated $1.8 billion) to address critical capability gaps and to redirect investment towards northern bases and infrastructure supporting the AUKUS program. It is suggested that the proposed sale would also save up to $100m per year in maintenance costs.
It is understood that many sites are proposed for sale, being underutilised, non-critical assets that are expensive to maintain and which are a drain on resources. However, among those included for divestment are also high-profile and heritage significant properties which include HMAS Penguin and Victoria Barracks.
The Proposal for HMAS Penguin
The Federal Government has confirmed the partial divestment of HMAS Penguin, a site of 16.64 hectares at Middle Head, Mosman.
The portion of the site to be divested includes part of the built environment and approximately 4 hectares of ancient and pristine Angophora / Sydney Redgum Forest.
HMAS Penguin is a fully operational base and is also Commonwealth Heritage listed. However, it has been determined that although critical capabilities are to be retained (including clearance diver training and underwater medicine unit), other portions of the historical site are to be sold to private interests.
The exact boundaries of the land proposed for sale are unclear, “with the exact portions to be finalised through the divestment process” (Department of Finance).
Repeat by Defence
Today we are seeing a repeat by Defence of previous attempts to sell off parts of Middle Head to private interests, most likely to developers for housing. After all, we now know that the developers have been circling since 2023 and Landcom has actually made an offer for sites including HMAS Penguin.
It is also unlikely that a developer will buy the Angophora forest for a parkland when the returns are greater if it is sold for luxury housing.
In 1988/89 the Hawke Government proposed the sale of the Angophora forest being part of HMAS Penguin.
The ancient angophora forest was to be ripped up and destroyed for the private development of 30 luxury houses.
The result being that this land would be forever lost to the Australian people.
Tom Uren and Mosman Mayor at the time Barry O’Keefe, spoke against this ludicrous plan, thousands protested and they saved the day. The forest remains untouched today.
Then again in 1996 when the Howard government proposed the sale of land at Middle Head / Georges Heights for 180 housing sites. It was community and political pressure, the latter from Jack Mundey and Bob Carr in particular, that resulted in the Government in 2001 giving the site back to the people of Australia.
In both instances the backlash from the community was fierce.
NOW A FURTHER SELL OFF has been announced - this time by the Albanese Government.
The importance of this issue is that the proposed sale will severely impact our environment and our national heritage. It should transcend politics and party political lines.
Recently Former Prime Minister, Paul Keating has publicly condemned the sale of military assets, saying that the Department of Defence has no right to sell such significant public assets. ‘Defence holds them in virtual trust on behalf of the nation.’
He said that “former military assets of this quality and historic importance should be removed by the government from any sale program – Defence-sponsored or otherwise”.
Why is HMAS Penguin Important?
HMAS Penguin located on Middle Head is part of the historic defence installations of the Headlands dating back to the early Convict Fort of 1801. The area that HMAS Penguin occupies was dedicated for defence purposes by 1870 as part of the strategic defence of Sydney Harbour.
Constructed in 1940-45, HMAS Penguin bookends the story of the military heritage of the Headland.
The heritage of Middle Head is unequalled anywhere else in the Nation. The Gai-mariagal people occupied the site for at least 4,000 years, it is the site of military occupation for over 200 years and it boasts extraordinary natural beauty.
HMAS Penguin is Commonwealth Heritage Listed. The Commonwealth Heritage Listing refers to HMAS Penguin as a place of exceptional interest in that:
It illustrates the design of a purpose-built Naval training and hospitalisation complex erected during WWII.
The aesthetic characteristics of the buildings display a consistent theme influenced by nautical features and united by similar brickwork and green terracotta tile roofs described as Inter-War Stripped Classical Style.
The buildings are important visual elements in the landscape and are landmark features in their own right, in a landscape in which trees, gardens and topography contribute to a significant cultural landscape.
The Naval base opened in 1942 as the Balmoral Naval Depot. It later went on to host submarine squadrons, operate the Balmoral Naval Hospital, and later evolve into a specialist training centre. HMAS Penguin remains an active Royal Australian Navy facility, home to the ADF Diving School, the RAN Hydrological School and the RAN Medical School.
HMAS Penguin is highly valued by the Mosman community for its symbolic, cultural and social associations.
HMAS Penguin includes a pristine, ancient angophora forest, a remnant of the vegetation that was once found on the Cumberland Plain. This scarce and highly valued resource is of national importance.
Why HMAS Penguin should not be sold
HPG understands that many of the 67 sites identified by Defence for sale are underutilised, unnecessary or with facilities beyond repair and draining resources. HMAS Penguin however is of such national significance that it should never be sold.
If HMAS Penguin is sold, the existing heritage and environment protection of the Commonwealth Heritage Listing will no longer apply. If the site is transferred to the State or a private owner, responsibility for protecting heritage values shifts to the relevant State jurisdiction’s legislative and planning frameworks.
Although the Government has an obligation to protect the Commonwealth Heritage value of the property sold there is no guarantee that this will take place. The divested site may be vulnerable to new uses, private ownership or proposed development that may not conserve or complement the site’s heritage and environmental values.If the divested part of the built heritage of the site is sold, potential development of that site may also impact the heritage values of the remaining site retained by Defence. The most important criteria of the Commonwealth heritage listing,being the consistent architectural theme of the site, would most likely be compromised.
If there is a partial divestment of the site then the Sydney Harbour Federation Trust, a Federal Government Agency, would be an appropriate body to manage these assets. The protections provided by the EPBC Act and the Sydney Harbour Federation Trust Act would provide strong heritage and environmental protections.
Money raised from the sale of HMAS Penguin would have a minor impact on Defence’s annual budget. The annual defence budget is $59 billion with the exact cost of AUKUS yet to be determined. The net amount from the sale of Defence sites including the two most valuable sites of Victoria Barracks and HMAS Penguin is $1.8 billion. This is a drop in the ocean, irrelevant to defence’s budget pressures, and far outstripped by the irreplaceable heritage and cultural loss if these sites are sold.
The Importance of Retaining HMAS Penguin
Much has been written about how customs, traditions and military history play a central role in the creation of our armed forces. Reservists that may sign up are attracted by these traditions. Victoria Barracks and HMAS Penguin located in the heart of Sydney provide such a connection. It has been said that the oath that a service man/woman takes is as much to our past service men/women as it is to the nation.
The emotional connection to place is not just reserved for the military, civilians too are proud and comforted by the outward trappings of these significant heritage sites.
The military heritage of this site belongs to all Australians. Richard Marles agrees when he says, “The heritage value of these properties does not belong to… the Australian Defence Force. It belongs to the people of Australia.”
It is ironic that he says this when the government intends to sell parts of the site to private interests, most likely developers who will take it out of the public domain.If the divested area comprises the Angophora forest, the monetary gains from selling to developers will be huge. It is unlikely the forest will be retained as public parkland.
Don’t be misled either in thinking that developers will put up affordable housing – the location and views are such that it is most likely that luxury housing will be built.The Angophora forest is spectacular and it dominates the natural landscape from Middle Harbour across the Middle Head ridgeline to Sydney Harbour. Apart from its extraordinary beauty and highly significant environmental values, it is on the 80km Bondi to Manly walk and visited by thousands each year. This land should be retained as parkland as it provides an IMPORTANT PUBLIC BENEFIT.
The natural headlands of Sydney Harbour, including the Angophora forest of Middle Head and HMAS Penguin are the lungs of Sydney, providing respite from the highly urbanised city. This natural environment should not be compromised by increased urban development.
Sydney Harbour is perhaps Australia’s greatest tourist destination. It not only defines Sydney but also defines the nation and Australia internationally.
Middle Head has been described as the jewel in the crown of Sydney Harbour – let’s not sell off the ‘Crown jewels’
HPG’s Position
Two Options
1 HMAS Penguin should continue in Defence ownership, with its heritage values, strategic position and past significant use for Naval purposes being a key part of its cultural significance.
2 If Defence has no further use for part of the site, the part to be divested must be retained by the Federal Government and held in perpetuity for the benefit of all Australians
In these circumstances the appropriate trustees of the site would be the Sydney Harbour Federation Trust (Harbour Trust) an existing statutory body with an operational structure, that already manages nine former defence sites around Sydney Harbour, including sites directly adjacent to HMAS Penguin at Middle Head..
The Harbour Trust is required by statute to protect, conserve and interpret the heritage and environmental values of its sites for the future generations of Australians. The sites could be appropriately adaptively re-used enabling retention of heritage and environmental values. Adaptive re-use may include accommodation or other appropriate commercial uses and opening the precinct to the public.
The Angophora forest contained within the precinct is a precious and irreplaceable asset and should remain in public ownership for public use.
Conclusion
All sides of politics should be appalled at the proposal to sell off parts of HMAS Penguin as it is likely to impact the heritage and environmental values of this highly prized site. It would be a great loss to the nation. It will not solve the housing affordability crisis as it is likely the site will be sold for luxury housing.
Jill L’Estrange
President
Headland Preservation Group Inc.
2 April 2026