Page 4058 - Week 13 - Thursday, 10 November 1994
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Harcourt Hill Development
MR KAINE: I address a question to Mr Wood, Minister for the Environment, Land and Planning. Mr Wood, as I understand it, under the unconditional, irrevocable undertaking that you have given to the Commonwealth Bank you have underwritten any debts owing by Harcourt Hill Pty Ltd through to, I think, 1998. If at any time before then the Sydney based partner fails to deliver on its undertaking to complete the international hotel and golf course, which are integral to this development, at a point at which there are, in terms of dollar value, less assets than it would require to meet this undertaking, where is the money going to come from to pay the Commonwealth Bank? What recourse, if any, do you have against anybody under this contract?
MR WOOD: Madam Speaker, the Liberals no doubt will be disappointed to learn that the sales of Harcourt Hill are going quite well, thank you.
Mr Connolly: That is good news; they will not like that.
MR WOOD: Exactly. It is good news. They do not like this joint venture arrangement. They seem to want to go back to the old system whereby the ACT taxpayers got much less return than they ought from their investments. Mr Kaine asks a question. The program has been carefully worked out and we have entered into an agreement which ensures that the guarantee is fully covered. Already the sales are indicating that that is the case. Mr Kaine might try to beat up an anxiety. That commitment was carefully examined, and there is no problem with meeting that commitment. It will never arise. If it should arise, the assets are clearly there.
MR KAINE: I have a supplementary question, Madam Speaker. The Minister is evading the question. Minister, given the projected downturn in housing in the ACT that everybody is talking about today, if you have been listening, what if this company decides to opt out of its undertaking tomorrow and you have a commitment to the Commonwealth Bank for $25m? Where does the money come from?
Mr Lamont: I take a point of order, Madam Speaker. Question time is a process of seeking factual responses. The question is hypothetical.
MR KAINE: I am seeking a factual response, Minister.
MADAM SPEAKER: Order! Mr Kaine has not completed his question. Mr Kaine, complete your question without the "what if" bit.
MR KAINE: I thank you, Madam Speaker, for protecting me from this assault by the Minister. He obviously believes that Mr Wood cannot account for himself. My question is: If they opt out tomorrow and there are obligations - - -
Mr Lamont: Madam Speaker - - -
MADAM SPEAKER: Mr Kaine, the "if" bit is the hypothetical bit. That is the problem.
MR KAINE: This is not a hypothetical question at all.
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