TIGER AIRWAYS

323 Mr HAMILTON-SMITH (Waite) (23 August 2011) (First Session). With respect to 2011-12 Budget Paper 4—Volume 4, p51—

What are the details and total value of the Government's investment in Tiger Airways and what redemption provisions are there?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business): I am advised Tiger Airways (Tiger) received financial assistance of $2.25 million in order to secure an aircraft base in Adelaide.

Under the terms of the Deed of Conditions of Grant (Deed) dated 20 May 2009, Tiger has an obligation to maintain a base in Adelaide for a period of no less than three years commencing 1 March 2009.

The Deed requires Tiger to locate two aircraft in Adelaide for a minimum of three years (expiring on 29 February 2012), and to locate an additional third and fourth aircraft in Adelaide for a minimum of twelve months and six months respectively.

The recovery provisions contained in the Deed require the Treasurer to first engage in 'good faith' discussions with Tiger for the refund of such amount of the grant as the Treasurer deems reasonably appropriate.

Any obligation of Tiger to refund an amount determined by the Treasurer is guaranteed by the parent company, Tiger Aviation Pty Ltd.