Page 960 - Week 03 - Thursday, 10 April 2014
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MR BARR: They received a two-year moratorium in that period. So they would only be paying fees for a smaller amount of time—in that instance, probably only one or two years of a three or four-year period, depending of course on when the land was purchased. There was a two-year moratorium. So no fees were accrued in that two-year moratorium period as a result of a stimulus measure associated with the global financial crisis. There would be benefits accruing in relation to, as I said, the multiples.
The way the previous fee system worked in year one, once you were past your time to complete your development, you paid a multiple of one times your rates, and that increased to two times in the subsequent year. One year plus two years equals three times. Then, in the third year, it was three. That meant six times cumulative. That cumulative impact has been removed and now those people who have accrued a debt will pay annually from now on and their debts will be reduced commensurate with the new policy.
MADAM SPEAKER: A supplementary question, Mr Smyth.
MR SMYTH: Minister, what extension of time fees would apply to leaseholders who bought land from the government between 2008 and 2012?
MR BARR: Can you repeat the first part of the question?
MR SMYTH: What extension of time fees will apply to leaseholders who bought land from the government between 2008 and 2012?
MR BARR: There is a fee scheme in place. There are a series of remissions, and there were a series of moratoriums. So depending on when the land was purchased, because it may well have been in a period where a moratorium was applied, no debts would accrue. That said, if you purchased the land in that period then you would be unlikely to have gone beyond now the four-year period for commence and complete under the original schemes. So now you only have a completion date and that would be in total eight years, in effect, from when you purchased the land to when construction would be required before a penalty would apply. So it is unlikely that anyone who bought in that time would be accruing significant fees at this time.
MADAM SPEAKER: Supplementary question, Mr Smyth.
MR SMYTH: Minister, what liability will be accruing to someone who purchased a block from the government in 2011-2012?
MR BARR: If they purchased a block from the government in 2011 and 2012, they would not be outside the four-year period. So they would not even be entering into the system at this point.
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DR BOURKE: My question is to the acting Chief Minister and Minister for Economic Development. Minister, can you inform the Assembly of recent
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