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Legislative Assembly for the ACT: 2000 Week 3 Hansard (9 March) . . Page.. 774 ..

Dear Mr Stanhope

Attached is the response to the Legislative Assembly Question Without Notice Taken on Notice asked by you on Tuesday 1 March 2000 regarding the Heads of Agreement with each of the major hirers.

Should you have any queries regarding the above please do not hesitate to contact me.

Yours sincerely

Kate Carnell MLA

Chief Minister

Please note that page 5 of the Raiders' Head of Agreement is not the original. This page was reproduced from the unsigned version sent to the Raiders for signature.

Mr Stanhope - Asked the Chief Minister on 1 March 2000:

Can the Chief Minister now tell the Assembly which clauses were changed, and how? And will she table the Heads of Agreement that was signed by the Government and the Raiders and to which she referred to in her answer?

Ms Carnell - The answer to the Member's question is as follows:

Attached are the Heads of Agreement that were signed by the Territory and each of the relevant codes. I have also attached a summary of the final hiring agreements for the three codes detailing the hiring arrangements in relation to First Term Capital Revenues, Recurrent Receipts and the Hirers Recurrent Receipts, in order that you can make comparisons with the Heads of Agreement.

The major difference between the Heads of Agreement and the final negotiated Hiring Agreements is the operation of the revenue assurance. The revenue assurance contained in the Heads of Agreement was performance based. It was conditional upon the code achieving their sales targets, which were driven by crowd numbers. Accordingly, it was not a guaranteed income stream payable by the Stadium regardless of how many patrons they attracted to their home games.

The revenue assurance however that was contained in the final negotiated Hiring Agreement provides a minimum revenue base and the codes' share is driven by the number of games and the revenue that each generates. It is also worth noting that the amount of the revenue assurance was substantially reduced between the signing of Heads of Agreement and the Hiring Agreements.

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