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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2010-07-20 Daily Xml
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TREASURER'S REMARKS

The Hon. I.F. EVANS (Davenport) (14:32): My question is to the Treasurer. When the Treasurer came back into the house on 27 May and made a ministerial statement to clarify his answers in relation to questions about the SACA debt, why did the Treasurer fail to mention the up to $800,000 interest subsidy being paid to SACA?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Federal/State Relations, Minister for Defence Industries) (14:32): The shadow treasurer is correct: I did give a statement to the house where I was quite up front that the government has provided a $30 million bank guarantee to the Westpac Bank in respect of its loan to SACA for the current Western Stand under construction. Should the new development not go ahead the guarantee will convert to a full commercial loan that mirrors the full commercial loan facility provided by Westpac, which is at a commercial interest bearing rate and principal repayment.

The Hon. I.F. Evans interjecting:

The SPEAKER: Order! You have asked your question.

Mr Marshall interjecting:

The Hon. K.O. FOLEY: The member for Norwood. Every time he gets mentioned as an up-and-coming star—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: He flew into the media this morning, but I do understand that I am somewhat of a role model of his. I did hear that he is modelling his style on mine. Imitation is the greatest form of flattery, even if it does come from someone on the other side. The issue of the interest payments has been well known and well circulated.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: The opposition wants to micro-scrutinise every aspect—

Members interjecting:

The SPEAKER: Order!

Members interjecting:

The SPEAKER: Order! If we don't have some quiet, we will disband question time.

The Hon. K.O. FOLEY: —of an arrangement that the government has disclosed more information about this project than any government project I can recall before it has even begun; before it has even begun we have been upfront. For the benefit of the house and given that the member, Rob Lucas in another place, is always saying how he has close sources to the whole project, I have written a letter to both Rod Payze, President of the SANFL—which I am sure has been broadly and widely distributed, certainly amongst the SMA—and Ian McLachlan, President of SACA, outlining the terms of the government's offer. It states:

In terms of the government's support...were broadly as follows: stage 1: an initial grant of up to $5 million to the SACA and SANFL joint-venture vehicle, Adelaide Oval SMA Ltd, for designing and costing the Adelaide Oval redevelopment. A treasurer's guarantee, capped at $30 million, of Westpac's loan to SACA for the Western Stand development. And Treasurer meets SACA's interest costs on up to $30 million of SACA's loan from Westpac.

Boom! It goes on:

Second stage: a loan of up to $85 million to SACA on commercial terms for the Western Stand development and discharge of the treasurer's guarantee. If an agreement for the Adelaide Oval redevelopment is entered into between SACA and the SANFL by 1 July 2010. Interest on the loan will accrue and is capitalised and will only be payable by SACA should the Adelaide Oval redevelopment not proceed. This is designed to address the risk the redevelopment may still not proceed for some reason even though SACA and the SANFL have signed a legally binding agreement. If an agreement is not reached only any unspent funds of the initial grant of $5 million would be repaid and the treasurer's guarantee would effectively terminate and convert to a $30 million commercial loan from the treasurer in reduction of Westpac's loan by the same amount.

Third stage: if construction of the Adelaide Oval redevelopment commences, a grant of up to $445 million to SACA and the SMA from December 2011 or the estimated start date of the Adelaide Oval redevelopment to refinance second stage funding and balance to the Adelaide Oval redevelopment.

Now that, Madam Speaker, was in a letter of offer sent to many people, quite up front, exactly what I have said or not said publicly. It cannot be argued that the fact that the government is meeting in the first instance those interest payments has been a commonly known fact and has been—

The Hon. I.F. Evans: Why didn't you tell the house?

The Hon. K.O. FOLEY: I have made it clear to the house that we had a loan facility. We have made it known—

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: We have made it known to all—

Mr Williams: Caught out!

The Hon. K.O. FOLEY: Caught out. For goodness sake, Madam Speaker, the opposition is on one mission and one mission alone: to destroy the Adelaide Oval redevelopment, because the opposition does not support football being returned to Adelaide, it does not support football being played in Adelaide.

Members interjecting:

The SPEAKER: Order!

The Hon. K.O. FOLEY: Madam Speaker, I say to the opposition that, at some point—you can do all you can to attempt to damage me—that's fine, that's politics—but ultimately the opposition have to decide—

Members interjecting:

The SPEAKER: Order!

Mr Williams: We decided well before you did.

The SPEAKER: Order, the deputy leader will be quiet!

The Hon. K.O. FOLEY: —why they will not support football coming back to the centre of the city.

The Hon. I.F. Evans: Football don't want it and you know it.

Members interjecting:

The SPEAKER: Order! There will be no quarrels across the floor.

The Hon. A. Koutsantonis: Back it up!

The SPEAKER: Order!

The Hon. A. Koutsantonis: Back it up!

Members interjecting:

The SPEAKER: Order! The Minister for Industry and Trade will be quiet, too.

Members interjecting:

The SPEAKER: Order! If you want to have a discussion, go outside and have it, not in here. The member for Reynell.

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