THE man at the centre of the Bunbury siege — which ended peacefully after nearly 13 hours — has a history of mental illness and was allegedly on the run from a Perth psychiatric hostel.

The siege ended after nearly 13 hours — with several “non-lethal’’ shots fired at the hostage taker — who was then arrested and is in custody after releasing his victim.

Two “beanbag” shots were fired and the hostage-taker was on his knees with his hands above his head as heavily armed Tactical Response Group officers moved in and arrested him at 7am.

After negotiating with him via mobile phone, then over a megaphone, the male hostage was allowed to walk free and was bundled into a waiting ambulance just after 6.30am.

The hostage, who was randomly selected by the offender, reportedly stripped down to his underwear before walking to police with his hands in the air.

Local media outlets are reporting that police confirmed the hostage-taker was a customer at the victim’s nearby laundromat and took him from there.

Police confirmed two “non lethal rounds” were fired at the man, who stumbled and fell to the ground after being struck.

He got to his feet seconds later and was arrested. It is understood the man has been taken for pyschiatric assessment.

WA Police Commander Alf Fordham said the 52-year-old hostage had been returned unharmed to his family, but had endured a cold and traumatic night.

“I certainly wouldn’t want to go through what he went through last night,” Cdr Fordham said.

The arrested man was interviewed at Bunbury Police Station and will face Bunbury Magistrate’s Court on Friday afternoon regarding an unrelated warrant.

Cmr Fordham said the man was “fine” after being shot — action that was absolutely necessary.

Not only had he not suffered any injuries, he was “laughing and talking to my officers”, who had wrapped him in blankets to warm him up, Cdr Fordham said.

The senior policeman thanked the Bunbury community for its cooperation and commended officers on their handling of the situation.

Acting Mental Health Minister John Day said the Bunbury incident had been “distressing and my thoughts are with the innocent gentleman involved and his family.”

He said the man who absconded from Romily House in June 2014 was on approved overnight leave while under the care of the State Forensic Mental Health Service.

“WA Police were notified at the time and a warrant was issued for his arrest due to non-attendance at a court matter,” Mr Day said.

“I am advised it was considered appropriate at that time for him to be placed at Romily House for rehabilitation and accommodation.”

SIEGE MAN HAS ‘MENTAL ILLNESS’ HISTORY

It has been reported the man at the centre of the Bunbury siege is a missing mental health patient who has been on the run for a year and was awaiting sentence over a dramatic Kings Park stand-off in 2012.

It is reported the man is 53-year-old David Charles Batty, who has been missing since June 2014 while he was a patient at Graylands psychiatric hospital.

At the time he went missing, Batty was in the transition period of moving between the Grayland’s secure Frankland Centre and Romily House, a privately-run hostel for adults with chronic mental illness.

He was last seen at Claremont Quarter Shopping Centre the day after he escaped.

On CrimeStoppers’ missing persons website, it says that despite extensive inquiries by police that Mr Batty’s whereabouts remained unknown but they held serious concerns for his safety and welfare.

Mr Batty had been charged over a four-hour Kings Park siege in July 2012.

In March 2014 he pleaded guilty to the Kings Park siege charges of unlawful assault causing bodily harm, deprivation of liberty and attempting to cause an explosion likely to do serious damage to property.

The Perth District Court issued an arrest warrant on June 24 last year when Batty failed to show for his scheduled sentencing.

However Mr Batty was scheduled to appear before a Perth judge via video link from Bunbury Court on Friday afternoon over the three Kings Park siege charges.

South West District acting superintendent Geoff Stewart said police believed it was an isolated incident.

Supt Stewart said it was possible charges would be laid later Friday.

“We’re not going to rush, we’re going to make sure we have all the information we need to resolve any situation,” he said.

“We’re now assisting with the Major Crime Squad and the South West detectives will take the investigation forward to find out exactly what happened.

“It could have been a lot worse, but it wasn’t and we’re really thankful for that.”

WA Police thank community for cooperation with Bunbury hostage incident Inspector Geoff Stewart from WA Police speaks about the 13-hour Bunbury siege.

‘INSANE KILLER’ ON RUN FROM SAME HOSTEL

Another Graylands patient has been missing for nine months after failing to return to Romily House, the same psychiatric hostel where Batty was set to be living at before he went missing.

Paranoid schizophrenic Enoch Samuel Walsh went missing on October 5, 2014.

In 2005, Walsh killed his mother by slitting her throat during a psychotic episode. He was acquitted of her murder on the grounds of insanity.

Walsh, also known as Samuel Mark Walsh, had been allowed to live at the hostel and work in the community for eight hours a week after leaves of absences were granted by the Mentally Impaired Accused Review Board.

On Friday, a North Metropolitan Health Service spokesman said the search for Walsh was a police matter, but confirmed he had not been returned to the department’s care.

The spokesman also said the Health Department had assisted police when required over the past year in its hunt for Batty.

He was accused of threatening police with a gas bottle – similar to those used in barbecues – and a lighter. Before the police stand-off, Mr Batty had allegedly held his elderly father hostage in a car and bound his wrists with tape. His father managed to escape before police arrived.

The Kings Park siege ended when TRG officers fired non-lethal bean bag shots at Mr Batty - exactly the same outcome as what happened in Bunbury.

After his arrest in 2012, Perth Magistrates Court was told Mr Batty needed psychiatric care and was not fit to stand trial.

6.40AM: HOSTAGE FREED

About 20 minutes earlier there was a major breakthrough in the 13-hour stand-off, where the 53-year-old man who told police he was armed with explosives, freed his male hostage.

The hostage was released and walked towards police with his arms and shirt raised at 6.40am after being set free.

The victim was placed in an ambulance, presumably for treatment for exposure and hypothermia after a freezing night. Police confirmed a short time later the man is unhurt.

BUNBURY 13-HOUR SIEGE: HOW DRAMA UNFOLDED

Heavily armed Tactical Response Group officers remained at the scene throughout the night and much of the Koombana Bay area adjacent to the Bunbury CBD, 170km south of Perth, was cordoned off this morning.

The drama began about 6.20pm on Thursday and police officers have worked through a frigid night as negotiations continued to convince the man to free his hostage and give himself up.

The man has erected a handwritten sign demanding that a WA Crime and Corruption Commission report be released.

As dawn broke, lighting up the bizarre scene, the man and his hostage could be seen standing behind the banner.

At a 6am press conference in Perth, Police Commander Fordham said a 52-year-old man had randomly taken another man, who was not known to him, hostage.

He was not willing to confirm the man’s identity or reports he is armed with explosives.

Commander Fordham said he was also not prepared talk about the hostage-taker’s demands or motives.

But police are satisfied the man is acting alone and that the “situation is well-contained”.

“We’re treating this situation as a dangerous situation and we’re taking all the safety precautions,” he said.

At the scene, a police negotiator named the offender as “David” and his hostage as “Peter”.

The negotiator told David “the media are here” and said “they have seen your banner” shortly after 4.30am Friday, more than 10 hours after the drama began.

She urged him to let Peter go, saying he had a family to go home to.

“Ask Peter. Ask Peter how he feels right now. Peter, tell him how you feel. How about we end it peacefully now,” she could be heard saying.

David shouted demands back to police but he could not be heard clearly from outside the cordoned off zone.

Police have sent a robot closer to the hostage taker. It has a device police want to use to communicate with him.

Whatever the demands were, the police negotiator said “that’s not going to happen”.

Other parts of the discussion could not be heard because of the distance and a strong wind.

While negotiations were continuing, a police armoured vehicle moved within about 100m of the man and his hostage.

Police have confirmed they are aware of the identity of the man at the centre of the hostage drama and that “concerns are held for the safety of all persons”.

WA Police spokesman Samuel Dinnison said police sealed off the area on Thursday evening and “members of the Tactical Response Group (TRG) are on the site and they are dealing with the situation”.

Two armoured police Bearcat vehicles have also been used in the operation, while firefighters and ambulance paramedics are at the scene on standby.

At 4.30am Friday, the offender and his hostage were sitting on a grassed area off Koombana Drive next to the handwritten banner, and they have only moved about 30 metres in 10 hours since the incident began.

One man is wearing a black jacket and the other is in a T-shirt.

Three marked police cars and one unmarked police car have been parked a short distance away for much of the night.

Initial media reports suggested the man may have explosives strapped to his body, but Mr Dinnison would not confirm if explosives or other substances were involved.

“We have concerns for one person in the vicinity of this man, who we are trying to negotiate with,” he said.

“We still have no confirmation on the reports of explosives … We have not confirmed if there is an explosive or something else.”

Mr Dinnison said it is unclear what sparked the hostage situation.

The public has been asked to avoid the area until further notice and morning traffic coming into the CBD is likely to be thrown into chaos if the situation continues.

TRG using a TV camera to get a closer look at the hostage situation in Bunbury #9newscomau {pic: @Katrin_Long } pic.twitter.com/brWDRtg2f6 — Nine News Perth (@9NewsPerth) July 16, 2015

Bunbury grandmother Sue Lawson and her grandson Kodie emerged from a screening at Grand Cinema late Thursday to find the streets cordoned off and a sea of police.

“It’s scary. I live just up the road. We came out to find a hostage drama going on,” she said.

“It looks like the Swat Team,” her grandson added, pointing out the TRG squad.

Other bystanders braved the chilly temperatures to watch the drama unfold during the night.

“You don’t see something like this very often in Bunbury,” said Thomas Knight, as he stopped to find out what was happening on his way home after a late-night coffee.

3. Police are well trained and equipped and are using all resources in an effort to resolve this situation peacefully. — WA Police (@WA_Police) July 16, 2015

Police are enforcing a large exclusion zone covering the Koombana Bay precinct, which is a popular family and tourist spot in the South-West city joining the Leschenault Inlet and the ocean.

A caravan park, hotel and apartments are near the parkland surrounding the bay.

Social media is abuzz as Bunbury residents begin to wake up to news of the continuing siege drama, with some speculating about the man’s reason for taking a hostage and others lamented the blocked streets and expected traffic snarls.

WA Police have scheduled a 6am press conference in Perth to shed more light on the incident.

Police have moved the crowd back. Lots of people trying to find out what's happening #bunbury #BunburySiege pic.twitter.com/PMiOZBCcFf — HOT FM WA (@hotfmwa) July 16, 2015

Bunbury incident: Please avoid Koombana Bay foreshore area. Police responding to volatile situation. — WA Police (@WA_Police) July 16, 2015

The sign at the #Bunbury hostage scene, what is it about? pic.twitter.com/rnJivsibUG — HelpRefugeesOZ (@HelpRefugeesOZ) July 16, 2015