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Submission on potential divestment of HMAS Penguin

Published on 04 May 2026

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Below is a copy of the submission to the Senate Standing Committee on Foreign Affairs, Defence and Trade regarding the potential divestment of HMAS Penguin. 

Dear Senator Collins

Thank you for the opportunity to make a submission to the Senate Standing Committee’s inquiry into the Management of Defence estate assets.

This submission presents the views and concerns I have received from community members within the state electorate of North Shore, which is home to HMAS Penguin.

The proposed partial divestment of HMAS Penguin has generated significant community interest and engagement. Residents have expressed overwhelming opposition to the proposed partial divestment, with many seeking me out to share their perspectives.

This strong opposition from residents is because the divestment is seen as a threat to the natural environment, the heritage value of the site, the significant local military history of which HMAS Penguin is part, and Australia’s strategic defence capabilities.

The announcement of the proposed divestment of HMAS Penguin lacked detail and transparency, with only the unintended release of a map identifying to our community what might be sold off. The community values and supports HMAS Penguin and has a strong interest in the irreplaceable military history and ancient angophora forest, and rightly expects to have access to information and form part of open and transparent consultation before any decision is reached.

I note many local community groups have provided submissions to this inquiry to emphasise the opposition my community has to this proposed partial divestment. I welcome the contributions made by these groups and individuals and provide this submission for consideration alongside their insights.

MILITARY HISTORY

Since World War II, HMAS Penguin, then Balmoral Naval Depot, has been in continuous operation and has been an integral part of the landscape, defence estate and local community. 

But the role of Middle Head in the security and safety of Sydney and Australia dates from the earliest days of our colonial history, when in 1801 the first gun emplacement was installed at Middle Head in response to the Napoleonic Wars. The 1801 Fort, built by convicts to guard Sydney Harbour, remains accessible in the adjacent Sydney Harbour National Park as part of the rich and continuous military heritage of Middle Head.

In the first half of the 19th century, the Gordon Scheme identified the defence potential of Sydney’s headlands after the harbour had been deemed ‘defenceless’ and in the following decades, gun emplacements were installed along Middle Head and Georges Heights. The Middle Head Fortifications have been a critical aspect of Australia’s defence establishment. For generations, these fortifications protected Sydney.

In the 20th and 21st centuries. significant investment of taxpayer funds has been made to preserve and protect these assets across National Park and Harbour Trust lands to ensure this heritage is retained for the people of Australia. Since the decommissioning of gun emplacements, extensive efforts have been made to protect Middle Head and HMAS Penguin from sale led by the local community, notably the Headland Preservation Group (HPG) and Mosman Parks and Bushland Association.

Generations of naval officers and sailors have been educated and trained at HMAS Penguin, helping to safeguard Sydney and Australia from external threats. Many have gone on to serve in overseas conflicts, drawing on the skills and experience developed during their time at the base.

After more than two centuries as a key military and defence site, the community wants the site preserved and retained within the Royal Australian Navy, ensuring its legacy endures.

HERITAGE

The heritage value of the HMAS Penguin site (beyond the broader role of Middle Head) is recognised and listed on the Commonwealth Heritage List because it is substantial and significant. Community concerns reflect the risk that divestment poses to the ongoing listing and protection of this site.

As one of 129 sites listed across NSW, this important recognition for HMAS Penguin demonstrates the “significant heritage value” HMAS Penguin has as it showcases rarity with a purpose-built naval training and hospitalisation complex and its consistent architecture in the Inter War Stripped Classical Style.

There have been two attempts to sell this site in 1988 and in 1996, prompting extensive public opposition to protect this site. Unifying all sides of federal and state politicians, opponents of the sales included John Howard and Tony Abbott, alongside former Deputy Labor Leader Tom Uren and Trade Unionist Jack Mundey. Key to the broad and united opposition to these sale attempts was the view that this is Australia’s heritage, not just that of the local community. Jack Mundey stated that the site belonged “to the people, not only of Mosman, of Sydney, but the nation as a whole. It is our land.”

Most recently, former Prime Minister Paul Keating, voiced his opposition to the latest attempt to divest HMAS Penguin, declaring the proposal would “vandalise the national estate”.

ENVIRONMENT

Efforts over the generations to protect Middle Head have ensured that natural environment has been preserved along the predominantly developed Sydney Harbour foreshore. Sydney Harbour National Park abuts HMAS Penguin with a natural environment where people travel internationally to visit and enjoy. Protecting this site’s natural beauty and diverse ecosystems is not just for community members and Sydneysiders; it is for all.

This is particularly crucial with the inclusion within the HMAS Penguin boundaries - and the maps of the proposed divestment site - of the ancient Angophora Forest.

The 16.64-hectare HMAS Penguin site includes several hectares of the pristine ancient Angophora Forest, which runs from the ridge line of Middle Head to Balmoral Beach. The Angophora costata (Sydney red gum) is increasingly rare along Sydney Harbour, which provides important habitat, biodiversity, and landscape character. In previous attempts to sell the site, it was highlighted that some trees within this Angophora Forest on HMAS Penguin lands remain from when Governor Phillip and the First Fleet arrived in Port Jackson.

The community has expressed concerns that the partial divestment of the site is due to the lack of commitment to protect the Angophora Forest. This proposed divestment threatens the community’s ambition to have a natural environment and Angophora forest for all to enjoy. There is widespread concern that this Forest will not retain environmental protections in a sale and will be decimated for the highest and best use land value of private owners, rather than being protected for the future.

Community groups like HPG were formed in response to the previous attempt to divest the bushland near HMAS Penguin and protect it for future generations. Together with the Mosman Parks and Bushland Association, they opposed any efforts to sell the Angophora Forest, and these combined efforts later led to the formation of the Harbour Trust in 2001.

Both groups have once again opposed this latest attempt to partially divest the site. The Mosman Parks and Bushland Association have warned that the well-maintained Angophora Forest will be at risk, and HPG stated that the natural environment and forest around Sydney’s natural and remaining forests are part of Sydney’s “lungs”, and the threat of increasing urbanisation will harm our city.

STRATEGIC DEFENCE CAPABILITY

The community has voiced their concerns that the partial divestment of the land and facilities of HMAS Penguin would have a direct impact on Australia’s strategic defence and national security capabilities. As mentioned, this site has played an important military role historically protecting both Sydney and Australia from foreign naval and sea power because of its position near waterways, which current geopolitical realities demonstrate remain crucial in protecting Australia’s national security.

Following WWI, Mosman Council allowed the land surrounding the site to be developed into a golf course, which was later requisitioned by the military in WWII for Barracks to be constructed to house married officers and later prisoners of war. If future defence use of the area were needed, this would be harder to reacquire if the site had been sold for example to residential development.

Constituents have raised with me how this partial divestment puts not only our community at risk, but also Australia. One resident expressed concern that this sale would leave Australia “defenceless”. Defence experts like Professor Peter Leahy AC and Peter Jennings have both warned about the importance of maintaining and strengthening our defence capabilities, especially in uncertain times.

The HMAS Penguin site has been home to many naval capabilities since its founding: today, that includes the ADF Diving School, the RAN Hydrographic School and the RAN Medical School. The Government has stated that critical capabilities will be retained, including clearance diver training and an underwater medicine unit, but community members are concerned about this reduction in services at HMAS Penguin and its impact on our defence force.

The overall naval work at the site scheduled for use will be reduced or downgraded. Community members aren’t confident with the Government’s assurances, with one community member stating, “if we sell it”, this will impact future opportunities for our naval forces to train and work at this location.

Locals and defence experts have highlighted the importance of the strategic positioning of HMAS Penguin near the Port Jackson heads, which has prompted questions about what impact it would have on the ongoing defence and security of Australia.

HMAS PENGUIN AND OUR LOCAL COMMUNITY

The local community has long regarded HMAS Penguin as far more than a defence site; it is a significant landmark that defines the character and identity of the Royal Australian Navy in our community. Residents, community groups, and local organisations have consistently voiced their support for its continued operation, recognising that its presence contributes not only to national security but to the cultural and historic fabric of our community.

For generations, the Commanders of HMAS Penguin have worked with all levels of Government to integrate with our community. This has included supporting or hosting a range of community events, including the Balmoral Swim for Cancer, Mosman Festival, Cancer Council Relay for Life Manly and the Balmoral Burn in support of the Humpty Dumpty Foundation. Their contribution has been invaluable, and any loss of community involvement would be felt deeply.

HMAS Penguin recently joined in the Exercise Kakadu Fleet Review, which celebrated 125 years of the Royal Australian Navy and had the largest gathering of warships on Sydney Harbour in more than a decade. The community turned up in support of the Navy. This was in significant part due to the decades of fostering relations with our local community. This support can’t be taken for granted, which a partial divestment risks.

CONCLUSION

I recommend that the Senate Standing Committee on Foreign Affairs, Defence and Trade listen to the views of my community, which I have facilitated in this submission and the other submissions by local community groups, and reject any sale or reduction of utilisation of HMAS Penguin. Any divestment of this site risks permanently diminishing an irreplaceable part of Australia's national estate and threatens our military and environmental heritage. I respectfully call on the Committee to recommend against the partial divestment of HMAS Penguin and to ensure that this remarkable site remains protected for future generations of Australians.