Lands Minister David Smith dismissed rumours that a secure psychiatric unit would be constructed at the Lakes Hospital site in Murdoch.

Smith was responding to questions from Melville City Council, which had sought information after the State Government announced that a juvenile remand centre would be constructed on the site.

Residents and the council were concerned the proposed facility had been located at Murdoch without consultation and that council planning requirements would be bypassed.

The council requested details about traffic impacts, environmental management, social impact studies and parking. It also sought information about a possible ancillary health services earmarked by the WA Health Department for part of the site.

Smith said the Health Department had advised that the proposed development was still at a very early stage and its purpose had not been determined. Possibilities being investigated included a mental health facility, a food-processing service or an extension of the existing Hospital Laundry and Linen Service.

Smith said there was no basis for rumours that a secure psychiatric unit was planned.

Construction of the juvenile remand centre was proposed to begin later in 1991, with completion during 1993. The estimated $50 million private hospital planned for the site was expected to be completed over the following few years, subject to agreement between the State Government and St John of God Hospital.