Mr STIRLING - 2000-11-29
The Treasurer’s statement yesterday said that the Territory had an obligation to buy this transmission line prior to 1998. If there was an obligation to buy the line as you claim, why was this obligation to buy never reported in your Treasurer’s Annual Financial Statements? What confidence can Territorians have in continued CLP financial management when, for 10 years, you deliberately withheld information from taxpayers as to their financial exposure in this matter?
ANSWER
Mr Speaker, for the third time in two days I will table the paper that says it all. it is but one of many references since 1998 where the contingent liability was recorded. This is part 5, Contingent Liabilities at 30 June 1998, page 84:
In support of obligations of the Power and Water Authority, the Territory has indemnified the financier of this project against the failure of the Power and Water Authority to meet its obligations.
At 30 June 1998, 21 half-yearly payments, each of approximately $2.6m, equating to $35.7m in net present value terms [I explained NPV yesterday to them], remain to be paid.
Under the current status of the Power and Water Authority the prospect of this undertaking being called upon is considered to be negligible.
I table that again.
I again refer honourable members to the statement I made yesterday. There was additional detail in relation to that particular matter that I provided to them. They chose to ignore it, of course, and that gets to the very reason why they did not want a briefing. They did not want a briefing on this matter because they knew that it they went and had a briefing they would have found out the facts. They would have found the truth and it would have eliminated their opportunity to muckrake. It would have eliminated their opportunity to scare Territorians. That is why they did not want a briefing, because when they go and have a look at what the actual facts are and go through them in absolute detail themselves, they will have to walk away and say this was a good deal for Territorians. They do not want a briefing for that very reason.
It is quite clear; they are up to politics. They are not up to providing good infrastructure for Territorians. They are not up to ensuring that Territorians have an electricity distribution system that will meet the new regulatory regime, provide for new generators of electricity as they come on stream with additional ones to NT Power and the Power and Water Authority do so; and ensure that there are maximised opportunities for the people of Katherine and down the length of the transmission line to be able to have a more reliable electricity.
They do not have the interest of Territorians at heart. They do not have an interest in any of the electricity consumers who gain their supply from this particular system which extends in a north-south direction from Darwin to Larrimah and has brought enormous efficiencies and benefits to the overall Top End electricity reticulation system. The particular line of $43m is going to save $10m at least over the next 10 years and, in terms of that, in addition we have an asset that has 30 or 40 years life in it, which is a pretty good deal to me.
ANSWER
Mr Speaker, for the third time in two days I will table the paper that says it all. it is but one of many references since 1998 where the contingent liability was recorded. This is part 5, Contingent Liabilities at 30 June 1998, page 84:
In support of obligations of the Power and Water Authority, the Territory has indemnified the financier of this project against the failure of the Power and Water Authority to meet its obligations.
At 30 June 1998, 21 half-yearly payments, each of approximately $2.6m, equating to $35.7m in net present value terms [I explained NPV yesterday to them], remain to be paid.
Under the current status of the Power and Water Authority the prospect of this undertaking being called upon is considered to be negligible.
I table that again.
I again refer honourable members to the statement I made yesterday. There was additional detail in relation to that particular matter that I provided to them. They chose to ignore it, of course, and that gets to the very reason why they did not want a briefing. They did not want a briefing on this matter because they knew that it they went and had a briefing they would have found out the facts. They would have found the truth and it would have eliminated their opportunity to muckrake. It would have eliminated their opportunity to scare Territorians. That is why they did not want a briefing, because when they go and have a look at what the actual facts are and go through them in absolute detail themselves, they will have to walk away and say this was a good deal for Territorians. They do not want a briefing for that very reason.
It is quite clear; they are up to politics. They are not up to providing good infrastructure for Territorians. They are not up to ensuring that Territorians have an electricity distribution system that will meet the new regulatory regime, provide for new generators of electricity as they come on stream with additional ones to NT Power and the Power and Water Authority do so; and ensure that there are maximised opportunities for the people of Katherine and down the length of the transmission line to be able to have a more reliable electricity.
They do not have the interest of Territorians at heart. They do not have an interest in any of the electricity consumers who gain their supply from this particular system which extends in a north-south direction from Darwin to Larrimah and has brought enormous efficiencies and benefits to the overall Top End electricity reticulation system. The particular line of $43m is going to save $10m at least over the next 10 years and, in terms of that, in addition we have an asset that has 30 or 40 years life in it, which is a pretty good deal to me.
Last updated: 09 Aug 2016