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Legislative Assembly for the ACT: 2011 Week 08 Hansard (Thursday, 18 August 2011) . . Page.. 3568 ..


(2) When were those investments made.

(3) What was their original cost.

(4) When and by what method were they last valued.

(5) What is their current value.

(6) How is ACTEW Corporation accounting for any capital losses or gains on the original cost of the investments.

(7) What is ACTEW Corporation’s assessment of the financial risk associated with these investments.

(8) What strategies does ACTEW Corporation have in place to mitigate that risk.

(9) What assessment has ACTEW Corporation made of the impact of the Commonwealth’s national broadband network project on the financial risk of these investments.

Mr Barr: The answer to the member’s question is as follows:

(1) (a) refer to note 34 page 41 and (b) note 32 page 40 of ACTEW Corporation’s (ACTEW) 2009 10 Annual Report.

(2) I am advised by ACTEW that the majority of its investment in TransACT was made between 2000 and 2002. In 2006, ACTEW invested $1.25 million in TransACT as part of a capital raising conducted by TransACT.

(3) Refer to note 34 page 41 of ACTEW’s 2009 10 Annual Report.

(4) As above.

(5) As above.

(6) I am advised by ACTEW that it has recognised the capital losses on the investment as an impairment provision on the investment value. Any gains on the revaluation of the investment are accounted for as a reversal of any previous impairment. If ACTEW were to sell its shareholding, any gains or losses would be realised for tax purposes.

(7) I am advised by ACTEW that the performance of TransACT has improved in recent years. On the basis that this improved performance is maintained, ACTEW considers that the current valuation is appropriate.

The repayment of the debt facility ranks before any shareholder distribution, therefore ACTEW is confident that this facility will be repaid to the bank.

(8) I am advised by ACTEW that to mitigate the risk of its investment in TransACT, two of its directors have been appointed to the Board of TransACT, one of whom is the Chair of TransACT.

The management team of ACTEW also actively monitors the performance of TransACT. As stated above, the conditions of the debt facility require that it be repaid


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