A grandmother accused of deliberately lighting 29 fires in an arson spree that caused $2.5 million worth of damage, may burn down her own house if released on bail, a court has been told.
Dianne Quarrell, 55, has been charged with lighting or trying to light, 29 fires in the Rosebud area after she was forced to resign from her job at a hospital earlier this year.
Police allege she tried to burn down a co-worker's home after the woman made a complaint about Ms Quarrell drinking from bottles of methadone while working at Rosebud Rehabilitation Hospital.
The fires, which occurred between January and May, destroyed a $2 million community centre and damaged several properties in the area.
Ms Quarrell denies lighting any of the fires, which were started deliberately using a range of branches, newspapers and some accelerants.
Police found leaves of the same species as those found in Ms Quarrell's garden, which are awaiting tests by a botanist, the court has heard.
Senior Detective Peter Butland told the court Ms Quarrell was grabbed by a security guard, who saw her crouched over a fire at a boatshed in Rosebud.
Sen-Det Butland said Ms Quarrell was dressed in black and was carrying a bumbag containing three cigarette lighters, a burned woolen glove and the lid of a kerosene bottle.
Branches, rubbish and scorched gloves, which had been purchased as a two-pack along with a bottle of kerosene at a local supermarket, were found in a carry bag found at the scene.
The court heard a matching pair of gloves were found at her house.
Sen-Det Butland said Ms Quarrell claimed she had been walking past and was about to put the fire out when she was grabbed.
She also denied the carry bag was hers and said she did not know how the kerosene cap got inher bumbag.
Sen-Det Butland opposed bail, saying staff at the hospital were fearful for themselves and their patients. He suggested Ms Quarrell may try to burn her own home down, as it was frozen by the court and now worthless to her.
Psychologist David Ball said he had found no mental health issues in his assessment of her.
The bail hearing has been adjourned until September, pending a psychiatric report.
