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provision of finance. The ACT government is under no financial obligation in relation to the arrangements that have been entered into to deliver land rent for young Canberra families.
The ACT government’s interest, and the nature of an understanding or arrangements between the ACT government and CPS, goes essentially to those issues, as you would expect that they would, that would need to be resolved in the event of a foreclosure. To the extent that this product has been considered by APRA, the Australian Prudential Regulation Authority, part of the reason for the delay, which has been of great interest to people, is that CPS has, over the last couple of months, been seeking assurances or comfort from the Australian Prudential Regulation Authority that a loan, a mortgage, under land rent would actually fit the definition of a standard mortgage product; that the CPS is not exposing itself to unnecessary risk and that it will be appropriately capitalised in relation to loans.
Of course, this issue of the level and nature of the risk in an environment that is unusual, that is unique, has required the development of an understanding between the ACT government and the CPS in relation to the nature of the arrangements that would apply in the very unlikely event that there is the need to foreclose, in the event that a mortgagee does not maintain their mortgage. Of course, in circumstances where the first call on the land would be by the ACT government but the first call on the house, secured by a crown lease over the land, would be a major interest for CPS, then, yes, there are arrangements.
The ACT is not indemnifying; the ACT is not financing; the ACT is not involved in the selection of people that will be financed. But the ACT is, of course, concerned about the nature of the arrangements that would apply in the event of a foreclosure, understanding that in the last 15 years, CPS has, on only two occasions in 15 years, ever sought to foreclose.
MS HUNTER: My question is to the Minister for Community Services and it concerns concessions for energy. In their report No 3 of 2009 the Independent Competition and Regulatory Commission recommended an increase in electricity concessions. Will the ACT government increase concessions on electricity as of July 2009?
Mr Corbell: As Minister for Energy, I am better placed to answer that. I am sorry, but I missed the last part of Ms Hunter’s question. Could I just ask her to repeat it, please?
MS HUNTER: In their report No 3 of 2009 the ICRC recommended an increase in electricity concessions. Will the ACT government increase concessions on electricity as of July 2009?
MR CORBELL: There is no provision in the budget for an increase in concessions for electricity from July 2009—it will not occur from that date—but the ACT government is very conscious of the issues raised by the ICRC in relation to concessions for all utility services, including, particularly, electricity. The government