Answers to Questions

LOAN WRITE-OFF

362 Dr McFETRIDGE (Morphett) (26 February 2008). What is the reason for the $101.3 million write-off from the balance of interest free loans in 2006-07?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): The Department of Trade and Economic Development (DTED) has provided the following information:

DTED did not write-off $101.3 million from the balance interest of free loans in 2006-07.

The write-off occurred in 2004-05 and related to a change of accounting policy statement 17, 'interest free loans' which requires 99 year interest free loans to be written back to zero. It should be noted that this is an accounting entry only and the loans were still considered recoverable.