❓ Minister Brown addresses the difficulties at Albany Spinning Mills, detailing past government support and the reasons for its impending closure despite efforts. The company has requested assistance with the final loan conversion to support employees.
AnsweredQoN 145Legislative Assembly
QuestionView source ↗
ALBANY SPINNING MILLS
What has the minister been advised about the difficulties being experienced at Albany Spinning Mills in Albany? Mr BROWN
What has the minister been advised about the difficulties being experienced at Albany Spinning Mills in Albany? Mr BROWN
AnswerView source ↗
I thank the member for Albany for the question and for his concern for the Albany Spinning Mills. Mr Speaker, as you know, Albany Spinning Mills has been in operation for many years. It needed assistance from the former Government, which provided an incentive support package to Nobel Investments Pty Ltd to purchase the mill in 1996. The package provided $1.81 million in the form of a loan to Albany Spinning Mills convertible to a grant upon the company meeting specific milestones. In 1998 the previous Government made some changes to the conditions, and the loan to grant conversion was agreed to be made over three equal instalments. The package also included reimbursement of payroll tax for five years and the provision of regional head-works funding to connect the factory to sewerage. The first and second loan grant conversions have been made, with the company satisfying the requirements under the agreement, which included such issues as staff numbers. The last loan to grant conversion of $605 000 is due in August of this year. It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr BROWN replied: I thank the member for Albany for the question and for his concern for the Albany Spinning Mills. Mr Speaker, as you know, Albany Spinning Mills has been in operation for many years. It needed assistance from the former Government, which provided an incentive support package to Nobel Investments Pty Ltd to purchase the mill in 1996. The package provided $1.81 million in the form of a loan to Albany Spinning Mills convertible to a grant upon the company meeting specific milestones. In 1998 the previous Government made some changes to the conditions, and the loan to grant conversion was agreed to be made over three equal instalments. The package also included reimbursement of payroll tax for five years and the provision of regional head-works funding to connect the factory to sewerage. The first and second loan grant conversions have been made, with the company satisfying the requirements under the agreement, which included such issues as staff numbers. The last loan to grant conversion of $605 000 is due in August of this year. It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
I thank the member for Albany for the question and for his concern for the Albany Spinning Mills. Mr Speaker, as you know, Albany Spinning Mills has been in operation for many years. It needed assistance from the former Government, which provided an incentive support package to Nobel Investments Pty Ltd to purchase the mill in 1996. The package provided $1.81 million in the form of a loan to Albany Spinning Mills convertible to a grant upon the company meeting specific milestones. In 1998 the previous Government made some changes to the conditions, and the loan to grant conversion was agreed to be made over three equal instalments. The package also included reimbursement of payroll tax for five years and the provision of regional head-works funding to connect the factory to sewerage. The first and second loan grant conversions have been made, with the company satisfying the requirements under the agreement, which included such issues as staff numbers. The last loan to grant conversion of $605 000 is due in August of this year. It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr BROWN replied: I thank the member for Albany for the question and for his concern for the Albany Spinning Mills. Mr Speaker, as you know, Albany Spinning Mills has been in operation for many years. It needed assistance from the former Government, which provided an incentive support package to Nobel Investments Pty Ltd to purchase the mill in 1996. The package provided $1.81 million in the form of a loan to Albany Spinning Mills convertible to a grant upon the company meeting specific milestones. In 1998 the previous Government made some changes to the conditions, and the loan to grant conversion was agreed to be made over three equal instalments. The package also included reimbursement of payroll tax for five years and the provision of regional head-works funding to connect the factory to sewerage. The first and second loan grant conversions have been made, with the company satisfying the requirements under the agreement, which included such issues as staff numbers. The last loan to grant conversion of $605 000 is due in August of this year. It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
I thank the member for Albany for the question and for his concern for the Albany Spinning Mills. Mr Speaker, as you know, Albany Spinning Mills has been in operation for many years. It needed assistance from the former Government, which provided an incentive support package to Nobel Investments Pty Ltd to purchase the mill in 1996. The package provided $1.81 million in the form of a loan to Albany Spinning Mills convertible to a grant upon the company meeting specific milestones. In 1998 the previous Government made some changes to the conditions, and the loan to grant conversion was agreed to be made over three equal instalments. The package also included reimbursement of payroll tax for five years and the provision of regional head-works funding to connect the factory to sewerage. The first and second loan grant conversions have been made, with the company satisfying the requirements under the agreement, which included such issues as staff numbers. The last loan to grant conversion of $605 000 is due in August of this year. It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
It is with sadness that I inform the House that despite the best efforts - having met with the company representatives, I believe they have made significant efforts to keep the company going - Albany Spinning Mills is to close. On 25 May it was forced to reduce staff numbers, and on 15 June the company notified us that it had stood down its entire work force. From correspondence I have just received from the proprietors it now appears that the company will close. There is a range of reasons for the company’s situation, which includes the Asian economic crisis, the increasing cost of transport, the goods and services tax, the slump in the housing market, the collapse of HIH Insurance Ltd, which has slowed the industry, the increase in the price of scoured wool, and strong competition from alternative floor coverings such as hardwood floors. Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr House: Have they asked you for any help? Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
Mr BROWN: The company’s representatives have asked for assistance with the final loan to grant conversion. That assistance is not to enable the company to keep going but rather to cater for the interests of existing employees. We received the request yesterday, and it is being considered with some urgency. I regret that this has come about. The Government would have liked to see Albany Spinning Mills continue with its operation, but unfortunately, because of matters beyond the control of the proprietors, it seems that it is not to be.
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