Page 4232 - Week 14 - Tuesday, 29 November 1994
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That decision was to return land development in the ACT to the Government, to the people of Canberra. That was a significant decision, Mr De Domenico, and it was taken in the way that we carry out our actions here. It was done in a measured, steady and sensible way. If it had been a Kate Carnell type of decision, it would have been stop, start, go, disaster. But that is not the sort of decision that I take.
The Government is pleased to be involved with that Harcourt Hill project. It is already a great asset to our local economy. It will provide a top quality local facility and will enhance our standing as an international tourist destination. It will return considerable money to ACT residents. We entered into the joint venture - another of our joint ventures; not the only one, can I emphasise - after a long and exhaustive process, with full understanding of its commitments. There is no suggestion that the Government will be underwriting the losses of a private company, if any. As the development proceeds, the assets associated with the investment are offset against borrowings. In the unlikely event of any failure of the joint venture, all assets are returned to the Government.
It is important to understand the rigorous process followed by the Government since the late 1980s, when the selection of a joint venture partner for this project was initiated. During 1990 expressions of interest were sought nationwide for consortiums to be involved with government to provide an international standard tourist resort in Canberra. From this process, a practical and financially sound proposal was accepted as a basis on which to proceed to a detailed investigation stage. The successful consortium, Cygnet Corporation, was required, at their own cost, to undertake concept designs and detailed project feasibilities to demonstrate the viability of the project before the Government entered into a joint venture agreement. No government funding was provided for this work, and it is mischievous to suggest that any government funds were provided to Cygnet for the process.
Obviously, a project of this significance requires substantial investment funding. Cygnet was required to contribute non-refundable equity, and a loan facility was negotiated with the Commonwealth Bank. The undertaking provided to the bank related only to the moneys owing at the end of the fifth year of development, at which time it is expected that the loan will be extinguished. If this does not eventuate, an extension of the facility could be negotiated, given that the assets invested at that stage will make the project an attractive proposition to lenders. The Government agreed to the guarantee after rigorous scrutiny, and it is absolutely appropriate.
The Harcourt Hill development is an important project and is proceeding very well. The first stage of the project, which includes both residential land and an international standard golf course, is nearing completion. It is apparent that this development will provide a new lifestyle opportunity for the residents of Canberra, as well as being a major tourist attraction. It is a very good investment on behalf of the people of the ACT.
MR LAMONT (Minister for Urban Services, Minister for Housing and Community Services, Minister for Industrial Relations and Minister for Sport) (5.51): Madam Speaker, I suppose that this debate can be summed up as somewhat of a fairytale. On the one hand, we have eeny, weeny and meany fighting Blynken and Nod about what Blynken and Nod have said. That really is what it comes down to. We have seen today an argument put forward by - - -
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