Hon. Tom Stephens questions the government's potential equity stake in the convention centre project, specifically regarding profit sharing, liabilities, and expected return on investment. The Minister's response confirms consideration of equity but defers specifics pending negotiations with Multiplex.

AnsweredQoN 85Legislative Council
Asked
17 August 2000
Portfolio
Tourism

QuestionView source ↗

I refer to the claims by the Deputy Leader of the Liberal Party yesterday that the Government is not handing over public funds to private companies with regard to the convention centre, and that the State will hold an equity in the convention centre. (1) Will the minister confirm that the Government will hold an equity in the convention centre; and if so, what form will that equity take? (2) Does this mean that the Government will be open to a share of the profits from the centre, as well as any liabilities? (3) What return does the Government expect to get on its investment? Hon N.F. MOORE

AnswerView source ↗

(1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.
(1) Will the minister confirm that the Government will hold an equity in the convention centre; and if so, what form will that equity take? (2) Does this mean that the Government will be open to a share of the profits from the centre, as well as any liabilities? (3) What return does the Government expect to get on its investment? Hon N.F. MOORE replied: (1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.
(2) Does this mean that the Government will be open to a share of the profits from the centre, as well as any liabilities? (3) What return does the Government expect to get on its investment? Hon N.F. MOORE replied: (1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.
(3) What return does the Government expect to get on its investment? Hon N.F. MOORE replied: (1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.
Hon N.F. MOORE replied: (1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.
(1)-(3) It is correct that the Government is considering taking an equity position in the convention and exhibition centre. As members know, the Government has made a contribution of $110m to this project, of which $100m is for the convention and exhibition centre. The decision on whether the Government takes equity will depend upon negotiations with the Multiplex consortium. Should the Government take an equity position, it would not be involved in the day-to-day operations of the centre. The profits and liabilities are a matter for negotiation between the Government and Multiplex. That matter has not yet been determined and is being contemplated by the task force which is negotiating the final contract with Multiplex. It is a matter for consideration and negotiation.

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