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Legislative Assembly for the ACT: 1997 Week 11 Hansard (5 November) . . Page.. 3651 ..

MRS CARNELL (continuing):

The approval I have given consents to increasing the current financing limit with the CBA from $16m to $20m. The CBA has also agreed to extend the repayment date to 30 June 2002. The amended facility also provides for a new debt reduction schedule over this period and more cost-effective loan arrangements than those embodied in the original facility.

The amended facility also follows lengthy negotiations with the Government's private sector partner on measures to strengthen Harcourt Hill's financial position. This has included substantial restructuring to change the scope of the original project. The original intention to develop an international standard hotel resort cannot be fulfilled, given the lack of demand for a facility of that nature at Harcourt Hill. It also involves the transfer of ownership of the golf course estate at Harcourt Hill to public ownership in return for the Government accepting responsibility for $2.75m of debt. Costs of $8.5m incurred on the development of the golf course were written off in the financial statements of Harcourt Hill in respect of 1996-97.

The new facility is based on a revised project plan of Harcourt Hill that extends the completion of the residential development to the year 2005. The project has been subject to an independent due diligence and the Government is satisfied of its viability under the new arrangements. I should emphasise that the approval I have given does not increase the Government's exposure to this project. It recognises the debt position of the project and places the debt reduction required on an achievable basis. The Government's private sector partner has provided personal guarantees for half the increase in the CBA debt facility. This represents a significantly greater sharing of risk by the private sector partner than that embodied in the original agreement entered into by the previous Government. The new finance facility and other restructuring measures have enabled work on land development to recommence and protect the Government's considerable commitment to this project.

MRS CARNELL (Chief Minister and Minister for Business and Employment) (3.52): Mr Speaker, for the information of members, I present the Government's response to Report No. 27 of the Standing Committee on Public Accounts which was entitled "Report on the ACT Government Draft Asset Management Strategy" and which was presented to the Assembly on 28 August 1997. I move:

That the Assembly takes note of the paper.

I am pleased to table the Government's response to the report by the Standing Committee on Public Accounts on the ACT Government draft asset management strategy. The Government appreciates the work of the committee. The committee's findings will assist in developing better asset management practices for the Territory. Like the committee, the Government believes that recognition of environmental, heritage and non-financial issues is an important component in recognising the value of an asset to the Territory.

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