Mr POOLE (Asian Relations, Trade and Industry): - 1996-08-21
Mr POOLE (Asian Relations, Trade and Industry): Mr Speaker, I wish to provide some additional information that came to hand on my response to a question that I was asked by the member for Wanguri in relation to Modular Medical Products on Tuesday.
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The government's involvement with Modular Medical Products dates back to 1987 when it provided $150 000 in initial equity capital towards the formation of the company. In 1989, the government provided a further $400 000 by way of a loan to fund the research, development and commercialisation of the System I wheelchair. The company recorded losses in the 1989, 1990 and 1991 financial years which, I should add, is not inconsistent with a company that is involved in research, development and commercialisation of a new product. In April 1991, the government provided a further $50 000 to assist the company through to the end of that financial year.
On 19 July 1991, the government converted its loans to Modular Medical Products - $450 000 plus $95 000 accrued interest, a total of $545 000 - to equity capital. The total financial contribution to the company, excluding interest, was $600 000. Following conversion of the loans in July 1991, no further funding assistance was provided to that company.
It is a matter of the public record - and I table a document supporting this - that Territory Surgical Supplies was not registered until 18 September 1991. The company attracted 3 new shareholders who contributed a total of $72 000 in new equity capital. This was a logical and commercially expedient step for the company to take at that time. In addition, I am advised that the 4 original directors contributed a further $50 000 to purchase additional equity capital. A total of $122 000 of shareholders' personal funds contributed to the diversification of the company. In addition, the directors have advised my department that they obtained commercial borrowings of a further $150 000, secured against their own personal assets and family homes.
As the member pointed out, Territory Surgical Supplies is a registered business name of Modular Medical Products Ltd and, as such, the 2 entities cannot be separated. However, I repeat that the government's previous assistance to Modular Medical Products was converted to equity prior to the registration of the business name Territory Surgical Supplies. Not a cent of government funding has been provided since that business came into being. As I stated previously, the company continues to trade today as a result of the commitment and personal financial support of the various private-sector directors and shareholders who have contributed significant amounts of personal funds to ensure its survival.
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Page 1535
The government's involvement with Modular Medical Products dates back to 1987 when it provided $150 000 in initial equity capital towards the formation of the company. In 1989, the government provided a further $400 000 by way of a loan to fund the research, development and commercialisation of the System I wheelchair. The company recorded losses in the 1989, 1990 and 1991 financial years which, I should add, is not inconsistent with a company that is involved in research, development and commercialisation of a new product. In April 1991, the government provided a further $50 000 to assist the company through to the end of that financial year.
On 19 July 1991, the government converted its loans to Modular Medical Products - $450 000 plus $95 000 accrued interest, a total of $545 000 - to equity capital. The total financial contribution to the company, excluding interest, was $600 000. Following conversion of the loans in July 1991, no further funding assistance was provided to that company.
It is a matter of the public record - and I table a document supporting this - that Territory Surgical Supplies was not registered until 18 September 1991. The company attracted 3 new shareholders who contributed a total of $72 000 in new equity capital. This was a logical and commercially expedient step for the company to take at that time. In addition, I am advised that the 4 original directors contributed a further $50 000 to purchase additional equity capital. A total of $122 000 of shareholders' personal funds contributed to the diversification of the company. In addition, the directors have advised my department that they obtained commercial borrowings of a further $150 000, secured against their own personal assets and family homes.
As the member pointed out, Territory Surgical Supplies is a registered business name of Modular Medical Products Ltd and, as such, the 2 entities cannot be separated. However, I repeat that the government's previous assistance to Modular Medical Products was converted to equity prior to the registration of the business name Territory Surgical Supplies. Not a cent of government funding has been provided since that business came into being. As I stated previously, the company continues to trade today as a result of the commitment and personal financial support of the various private-sector directors and shareholders who have contributed significant amounts of personal funds to ensure its survival.
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Last updated: 09 Aug 2016