Page 4053 - Week 13 - Thursday, 10 November 1994
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MADAM SPEAKER: Members, I have to inform you that, it now being 2.30 pm, the resumption of debate on the motion to take note of the report of the Select Committee on Community Initiated Referendums is set down as an order of the day for a later hour this day.
Mr Wood: They are not sure about it. I do not think they want it.
MADAM SPEAKER: That is my advice. We will sort that out later, members; but that is my advice to this moment.
QUESTIONS WITHOUT NOTICE
Harcourt Hill Development
MRS CARNELL: Madam Speaker, my question without notice is to the Minister for the Environment, Land and Planning. Is it true that the Government, through the Department of the Environment, Land and Planning, had to provide the Commonwealth Bank with an unconditional guarantee of $25m before the bank would agree to provide finance to Harcourt Hill Pty Ltd, in which the Government is a joint venturer? Why was this guarantee needed, Minister?
MR WOOD: Madam Speaker, in the process of drawing up that arrangement, in the discussions on the joint venture, we did agree to provide a guarantee - a guarantee of assets over which we have complete control. It was a satisfactory arrangement and one that I entered into. The department, of course, signed, as I recall, on my behalf. The question is an interesting one. The Opposition, across the road there, has been rather reluctant to acknowledge the worth of the joint ventures that we are undertaking. Those joint ventures are an important step as we come back into land development. It is, I believe, the right of the Territory Government to run land development on behalf of people in the Territory. I did not believe that we had been receiving a sufficient return from our land resources over the years from the private sector development that had been carried on. Nor do I believe that in every instance we have achieved the very best planning results. An important step in returning to that, to bring full benefit to the people of the Territory, has been our joint ventures. It is an interim measure, although they will probably always continue in certain circumstances. Eventually - very soon with North Watson - we will get back to doing land development ourselves. I am disappointed that the Liberals have some concerns about that. Harcourt Hill is an important and large joint venture which is going to reap good rewards for the people of Canberra.
MRS CARNELL: I have a supplementary question. Madam Speaker, the Minister did not answer my question on why the guarantee was necessary and whether it is regular practice for the ACT Government to provide financial guarantees to property developers.
MR WOOD: Madam Speaker, joint ventures are relatively new in this Territory. They go back just a few years. We are establishing precedents with joint ventures. There is nothing unusual about that. The Commonwealth Bank required it as part of their commercial practice. We examined the situation most carefully and we accepted it.
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