Territory Stories

Questions Day 2 - Wednesday 26 February 1992

Details:

Title

Questions Day 2 - Wednesday 26 February 1992

Other title

Parliamentary Record 8

Collection

Questions for 6th Assembly 1990 - 1994; ParliamentNT; Parliamentary Record; 6th Assembly 1990 - 1994

Date

1992-02-26

Notes

Made available by the Legislative Assembly of the Northern Territory

Language

English

Subject

Questions

Publisher name

Legislative Assembly of the Northern Territory

Place of publication

Darwin

File type

application/pdf

Use

Attribution International 4.0 (CC BY 4.0)

Copyright owner

Legislative Assembly of the Northern Territory

License

https://creativecommons.org/licenses/by/4.0/

Parent handle

https://hdl.handle.net/10070/279844

Citation address

https://hdl.handle.net/10070/418394

Page content

QUESTIONS - Wednesday 26 February 1992 Sheraton. In order to calculate Oxley's eventual fee, the minister must have calculated a notional government loss against which Oxley's performance is to be judged. Will the minister tell the House what the notional government loss is on the Darwin Sheraton? ANSWER Mr Speaker, the financial arrangements with the range of bankers include penalty provisions for early repayment. If the arrangements are collapsed at our insistence prior to the expiry date in 1996, the early repayment penalty provisions fix the upper limit on what we would have to pay to the financiers to sever the arrangement. One might say that anything below that figure is, nominally, a saving in collapsing the financing arrangements. What we can succeed in negotiating, by agreement with the bankers and financiers and as a settlement figure in relation to the early wind-up of those financing arrangements, constitutes the amount of that saving. $37-5m is the amount of debt that is shown against us at the moment. I understand that, under the contract, an early, forced wind-up of those financial arrangements would involve a penalty cost of $42m. Clearly, we will seek to negotiate to reduce that amount by as much as possible. In relation to what was referred to by the member for Millner as some kind of tax-avoidance scheme and all the imputations he places on that, I might say that he should note that the total scheme was discussed with and agreed to by the Australian Tax Office prior to its implementation. Any suggestion that it was improper or otherwise inappropriate should be discarded absolutely. The fee that is paid to Oxley will be based on what it saves us in relation to the negotiations with the bankers over the existing contractual obligations for an early close to the lease agreement. Mr Ede: It is not related to the standard of future losses? Mr HATTON: No, it is based on an early collapse of the lease purchase arrangement. Mr Ede: The penalties on the loan? Mr HATTON: Ves, penalty costs for an early close of the loan. X-rated Video Industry Mr COLLINS to ATTORNEY-GENERAL During early January, an item in the paper reported that the people involved with the X-rated video industry in Canberra were considering moving to the Territory because of high levels of taxation. Is the Attorney-General aware of this and will he make any moves to prevent it with the legislation he promised last November to bring into this House? ANSWER Mr Speaker, I thought the member for Greatorex would be fully aware that I have no control - nor would I want to - in relation to people travelling across state borders. However, for the last 4 or 5 years, there has been discussion about the industry moving from Canberra to the Territory. 683


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