Parliamentary record : Part I debates (27 February 1985)
Debates for 4th Assembly 1983 - 1987; ParliamentNT; Parliamentary Record; 4th Assembly 1983 - 1987
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Northern Territory Legislative Assembly
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Legislative Assembly of the Northern Territory
DEBATES - Wednesday 27 February 1985 regulations anywhere. The government has every confidence that the newoperato~ Diamond Leisure, has the marketing and managerial expertise to enable the Darwin and Alice Springs hotel casinos to reach their full potential. Mr Speaker, the government had proposed financing the $49.5m due to Federal Hotels after the purchase had been agreed with funds from the following sources: NTDC $2.5m and trust $47m. The trust was to fund its $47m as follows: equity $23m and borrowings from the Australian Bank $24m. After the federal government had interfered through FIRB powers ahd it was obvious that these arrangements could not be maintained, the trust arranged interim funding in the following way: a loan from the NTDC $21m and borrowings from the Australian Bank $26m. Funds to allow the NTDC to make this loan to the trust were obtained in turn through a loan from the Treasury at the same rate the Treasury would have earned in the market. An available alternative to the trust in seeking these funds was to extend the Australian Bank loan but this provided a more expensive route to all the parties to the agreement. The transactions were both legal and proper and I have written to the Leader of the Opposition on this point. Mr Speaker, in addition to the equity in the trust, I can confirm that the trust is now fully subscribed. The trust has repaid the NTDC with interest and the NTDC has similarly reimbursed the government. This loan was, therefore, an interim arrangement through which the government is not out of pocket. To 31 January 1985, the government had spent $1.38m in directly attributable costs on the casinos procedures. That was made up of: legal fees - $83 017.61; valuation costs - $204 361.59; travel and accommodation for ministers and officials $157 675.74; consultants fees and costs, including travel and accommodation $146 066.25; administration and general costs - $190.60; and Federal Hotels' mortgages leases plus interest - $788 774.47. That gives a total of $1 380 086.26. Mr Speaker, I turn to Myilly Point and Alice Springs. As they peruse the documents that have been tabled today, honourable members will notice that there is a requirement by the government to encourage the establishment of additional tourist infrastructure in Darwin and Alice Springs to complement the casinos' activities. There is also a requirement in the agreement between the operators and the government for the operators to take up additional gambling space in the new development on the old Darwin hospital site which will provide additional hotel infrastructure for visitors. The operators must pay rent on the space as soon as it is constructed. As the first steps in this direction, the government instructed the NTDC to arrange for preliminary developmental studies to be instigated. In tandem with this, the NTDC or the government has commenced the acquisition of land in both Darwin and Alice Springs to enable these developments to proceed. Whilst the original concepts that have been proposed may not necessarily represent the final developments in both Darwin and Alice Springs, there is no doubt that major developments in both Darwin and Alice Springs will take place on the old hospital site and Myilly Point and the golf course estate in Alice Springs. The government believes that these developments together will ultimately be larger than Yulara in both development and financial terms. To 31 January 1985, the government had met directly attributable costs on the projects, including payments to consultants etc as follows: legal fees $99 292.48; travel and accommodation for ministers and officials - $2555.28; consultants fees and costs including travel and accommodation - $696 739.62 and administration and general costs $2763.85. That totals $801 351.23. Land acquisition costs were: in Alice Springs - $1.417m plus legal expenses and interest; in Darwin - $0.4m which has been paid; and a further $0.53m which is committed in Darwin but has not been paid. That totals $2.347m. We believe 23
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