BUSINESSMAN PLEDGES TO GUARANTEE DRUG HOSTEL

THE first $100,000 payment for George O'Neil's heroin rehabilitation hostel
in Northam has been guaranteed.

WA home builder Dale Alcock kick-started a savings fund yesterday with a
$10,000 donation and pledged the balance if fundraising efforts for the
$100,000 fell short.

Dr O'Neil must pay the sum by March 27 to meet the deadline for the first
payment on the old Northam hospital which his company, Australian Medical
Procedures Research Foundation, bought for $350,000 in March last year.

Northam residents and the Labor Party have expressed concern that the
hostel may not be run properly because of a shortage of money.

Dr O'Neil said yesterday that $50,000 of the $350,000 cost had been paid
and he was confident other business people would follow Mr Alcock's lead
and donate money for the project.

The State Government announced this week that it would contribute $80,000
to pay the wages of the hostel's first employees, he said.Planning Minister
Graham Kierath overruled the Northam Town Council to allow the
rehabilitation centre to be set up in the face of overwhelming community
opposition. It will be in the centre of town and 200m from a school,

Mr Kierath based his decision on the grounds that the hostel was in line
with the building's former use. But, because of the community's fears, he
allowed it only on a temporary basis.

Dr O'Neil said the planning appeal proceedings had delayed fundraising. Mr
Alcock said he hoped his donation would spur other businesses to dig deep.

Mr Alcock, who has three young daughters, said a family member of a close
business associate died recently from a drug overdose.

"We have got to be realistic and accept that pressures relating to drugs
are almost inevitable," Mr Alcock said.

Dr O'Neil's company will be required to pay the outstanding $200,000 cost
of the building in a year.