Who's paying the Shiplift loan?
Katie Woolf spoke with Deputy Opposition Leader Lia Finocchiaro.
Katie sent an email this morning to the Treasurer's office to get some answers on the Shiplift and find out who is paying the loan back if Paspaley are to receive the profits from the Shiplift.
This was the Treasurer's Office reply:
Paspaley will provide the service on a commercial basis. They will also bare all the risk, maintenance, staff expenses. As operators, they will not be paid by Government, instead collecting revenue from users of the facility. The project/establishment of this industry will generate around $260 million worth of revenue into our economy each year.
Katie then asked, “to confirm is the loan going to be paid off by revenue generated by the shiplift? i.e. by Paspaley? Are Paspaley paying rent? Or is a portion of the revenue generated going back to service the loan? And also the $100mil from the Infrastructure Fund the government is investing?”
Reply from the Treasurer's Office:
The commercial agreement between paspaley/NTG is still being worked through so I can’t provide more exact detail on it. Yes local company paspaley will run it on a commercial basis, and get the returns from the services provided (they will also bare the cost of all the operating expenses)
But it’s the bigger picture of having the shiplift and marine servicing industry in Darwin that will be the benefit back to the NTG and the economy. For example without this project; it could mean that defence decide to home base offshore vessels in Cairns, the oil and gas industry will could choose to base their vessels and marine supplies in WA, rugs will continue to be serviced in Singapore, super yachts could choose another port further away for deep maintenance.
It’s the onflow impact of providing this service in Darwin that will drive significant economic benefit into the Territory, support jobs and grow the population – that’s where the NTG benefits.
Listen to Lia Finocchairo's reply here: