Mr BURKE - 2005-02-15
Regarding the waterfront development, as a major joint venture partner - as your government is - can you confirm that the taxpayers’ exposure in contributing to the waterfront development would increase substantially if a replacement partner is required for the Henry Walker Eltin work that needs to be done?
ANSWER
Madam Speaker, at this stage, we do not know what the future of Henry Walker Eltin is. I will update the House on what the current status is with that firm - a proud Territory firm that has grown very large. It was only on the last day of January that the Board of Henry Walker Eltin announced the appointment of the voluntary administrator. Initially, that appointment was with Ernst & Young. There was a potential conflict of interest identified and the administrator was replaced with McGrath Nicol & Partners - Anthony McGrath, Scott Kershaw, Joseph Hayes and Shaun Fraser. The appointment was made after Swiss commodities trader, Glencore Finance, decided not to proceed with the proposed re-capitalisation of $100m which they announced in December just before Christmas.
The company, Henry Walker Eltin, has had difficulties securing long-term funding arrangements. The voluntary administrator has indicated that it would be some three months before the exact position is known. He is looking at a number of options in relation to the future of Henry Walker Eltin including an option which may see the Territory business of Henry Walker Eltin taken over by another major Australian contracting firm. This option, if it proves acceptable to all parties, could occur within weeks. Darwin Cove Consortium is working through a strategy to finalise an acceptable outcome. As you know, Darwin Cove Consortium is a very strong team of international, national and Territory firms. As members of this House would expect, this government will be monitoring the situation and will ensure that the consortium continues to deliver on their commitments.
Madam Speaker, whatever the outcome of the process that I have just outlined, there may be some delay in achieving financial close, although at this stage we expect it to not be significant. I am sure everyone in this House wishes Henry Walker Eltin a strong future, and would all like to see them continue to be a strong, active and profitable part of the Darwin Cove Consortium.
ANSWER
Madam Speaker, at this stage, we do not know what the future of Henry Walker Eltin is. I will update the House on what the current status is with that firm - a proud Territory firm that has grown very large. It was only on the last day of January that the Board of Henry Walker Eltin announced the appointment of the voluntary administrator. Initially, that appointment was with Ernst & Young. There was a potential conflict of interest identified and the administrator was replaced with McGrath Nicol & Partners - Anthony McGrath, Scott Kershaw, Joseph Hayes and Shaun Fraser. The appointment was made after Swiss commodities trader, Glencore Finance, decided not to proceed with the proposed re-capitalisation of $100m which they announced in December just before Christmas.
The company, Henry Walker Eltin, has had difficulties securing long-term funding arrangements. The voluntary administrator has indicated that it would be some three months before the exact position is known. He is looking at a number of options in relation to the future of Henry Walker Eltin including an option which may see the Territory business of Henry Walker Eltin taken over by another major Australian contracting firm. This option, if it proves acceptable to all parties, could occur within weeks. Darwin Cove Consortium is working through a strategy to finalise an acceptable outcome. As you know, Darwin Cove Consortium is a very strong team of international, national and Territory firms. As members of this House would expect, this government will be monitoring the situation and will ensure that the consortium continues to deliver on their commitments.
Madam Speaker, whatever the outcome of the process that I have just outlined, there may be some delay in achieving financial close, although at this stage we expect it to not be significant. I am sure everyone in this House wishes Henry Walker Eltin a strong future, and would all like to see them continue to be a strong, active and profitable part of the Darwin Cove Consortium.
Last updated: 09 Aug 2016