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Legislative Assembly for the ACT: 2002 Week 10 Hansard (29 August) . . Page.. 3128 ..

(2) Please note that the $52.095m referred to in the question is the estimated position at the end of 2002-03. The audited results for 2001-02 show total equity of $48.299m as at 30 June 2002.

(a) There are currently no initiatives identified for use of any equity funds from the home loans portfolio.

The portfolio assets also include those from ACT Government funded home loan scheme, not subject to the CSHA.

The Portfolio was closed to new loans in 1996 due to increasing financial risks associated with the loan schemes, as well as inadequate provisions being held to cover the risks. Expert commercial advice to the Government indicated that the home loans portfolio (being designed for low income earners) required provisions well above normal commercial standards.

Access to any surplus equity funds from the portfolio needs to be considered in the context of the risks associated with the balance of outstanding loans, and the appropriateness and adequacy of provisions in the light of the future risks to the portfolio.

A review of the portfolio is to be undertaken over the next year to update the risk profile and to review and reassess the levels of provisions required.

(b) Once the review mentioned in (a) is completed, the Government will then be in a position to determine the use of any surplus equity funds. This will take account of any requirements under the CSHA.

(c) At 31 August 2002, there were 1,130 borrowers.

(3) (a) These investments are long term investments that will mature beyond 12 months from 30 June 2002, and are made in line with the Government's investment strategy.

(b) Yes, these funds are invested with the Central Financing Unit within ACT Treasury. A summary of investments and interest for the financial years 2000-01 and 2001-02 and for the period January to June 2002 is set out below.

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