Page 4501 - Week 14 - Thursday, 1 December 1994
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
Based on the operating results for the prior two years ACTTAB may have difficulty in meeting its financial obligations.
Why did the Auditor-General say that? On page 64 he goes on to say:
The financial statements of ACTTAB were certified by its Chairman on 26 September 1994. An unqualified audit opinion was provided to the Minister for Sport on 11 October 1994. The Board's annual report, which includes the audited financial statements, had not been tabled in the Legislative Assembly at the date of finalising this report.
The Auditor-General goes on to say that the total cost of the VITAB fiasco - he does not use the word "fiasco" - was $3.501m. He says:
Based on the operating results of the prior two years it appears that ACTTAB will have difficulty in meeting its financial obligations as a result of its debt commitments to the Government.
He goes on and talks about liquidity. He expresses concern about the liquidity of ACTTAB. Mr Berry, I suggest that you listen, because this is all your doing. The Auditor-General goes on to say, under "Viability" - and this is very important, Mr Berry:
Based on current rates of interest the annual payments related to the VITAB loan will be approximately $600,000 per year. If profits remain at their current level it is unlikely that cash generated from operations will be sufficient to meet repayments of the loan and other financing arrangements may need to be made.
Mr Lamont: What is the relevance?
MR DE DOMENICO: I will tell you what the relevance is, Mr Minister, Mr Moore and Ms Szuty. The relevance is that the Auditor-General's concern for the future viability of ACTTAB is very disconcerting to all members of this Assembly. Is it any wonder that the racing bodies have said, "Let us enshrine in legislation that, notwithstanding what happens in terms of ACTTAB, we continue to get at least our existing percentage return from whatever the turnover is before they need the extra cash to pay off $600,000 per year"? We know that for the past two years, before the VITAB fiasco, ACTTAB was operating at a loss anyway. On top of that existing loss, it now has $3.5m to repay. Once again, it is very important that we read very carefully what the Auditor-General said under the heading "Viability".
Mr Lamont: Madam Speaker, on a point of order: I go to the question of relevance.
MR DE DOMENICO: Madam Speaker, with the greatest respect, the Auditor-General of this Territory talks about the viability of the TAB. We are discussing legislation, which the Minister wants, which will make disallowance impossible. For the Minister to suggest that there is no relevance, to me, is beyond comprehension.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .