Tough financial times hit WA forensic lab ChemCentre The WA government ChemCentre analysis and forensic science unit says it is rethinking its structure and business model after a $3 million reversal of fortunes in 2012/13. Picture: Kerris Berrington Source: PerthNow THE WA government's chemical analysis and forensic science unit says it is rethinking its structure and business model after a $3 million reversal of fortunes in 2012/13. ChemCentre, which adjoins Curtin University in Waterford, provides a wide array of services including helping police assess the hazards of clandestine drug labs and potentially explosive substances when they are discovered. But its mainstay is often not as headline-grabbing, providing analytical services and advice to government clients including the Water Corporation, and drug testing for the resources sector. The past financial year has proved tough, with all state government departments ordered to cut costs while the mining and energy industries have cooled considerably. ChemCentre has booked a $1.6 million full year net loss, compared to a $1.5 million net profit for the previous financial year. Revenue fell after the conclusion of a major state government project to clean up Esperance, where lead carbonate and nickel sulphide dust had escaped from the port during ship loading over several years. And there was less call for sample analysis for WaterCorp's ground water recharge project, which involves reinjecting treated wastewater into aquifers. This financial year, a review of the Chemistry Centre (WA) Act 2007 will be delivered, addressing issues including the unit's fundamental purpose and state funding. This will have a direct impact on ChemCentre's future priorities and management, chief executive Peter Millington said. In its recently tabled annual report, ChemCentre identified its financial risks as vulnerability to changing market conditions due to its fee-for-service model for commercial clients, and loose agreements with other government agencies, namely memoranda of understanding rather than contracts. ``Further, changes in priorities and reallocation of funding to other programs within the public sector has resulted in decreased revenue from fee-for-service work from public sector clients," it said.