Mr BURKE - 2002-10-08
Minister, in reference to the Arafura Sports and Community Club, and I refer to the due diligence I am sure you have been involved in with this club, we know that there was a long-term mortgage loan of $234 000 that was not required to be paid until 2011, and the interest on this loan was being adequately serviced from trading profits of the club. You gave a statement this morning where you gave details of the remaining debt which we know includes a loan from the Darwin Football Club of $40 000. Minister, can you confirm that the loan was received by the Arafura Club?
ANSWER
The information that was provided this morning in the House in the ministerial report was the information directly provided to us by Ernst and Young, who were both the organisation brought in to assess the situation of the club and subsequently to offer judicial management. Those were the figures on which Ernst and Young based its assessment. I am not a professional accountant, and Ernst and Young personnel are. They have sought the information and the financial impact of each of the financial arrangements that the club found itself in. They have assessed the overall impact on the club’s viability and they have recommended to us, as a professional organisation, that the club was no longer viable. End of story.
ANSWER
The information that was provided this morning in the House in the ministerial report was the information directly provided to us by Ernst and Young, who were both the organisation brought in to assess the situation of the club and subsequently to offer judicial management. Those were the figures on which Ernst and Young based its assessment. I am not a professional accountant, and Ernst and Young personnel are. They have sought the information and the financial impact of each of the financial arrangements that the club found itself in. They have assessed the overall impact on the club’s viability and they have recommended to us, as a professional organisation, that the club was no longer viable. End of story.
Last updated: 09 Aug 2016