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TASCORP – Letters of Comfort

Cassy O'Connor MP  -  Tuesday, 30 November 2021

Tags: TasPorts, TT-Line, Treasury, TASCORP

Ms O'CONNOR - Can I ask just a final question? Thanks, Chair. Treasurer, has TASCORP requested a letter of comfort from you for any borrowing since the last GBE scrutiny session? If so, are you able to go into details of any of that lending?

Mr GUTWEIN - I'll explain. We actually took a different approach during COVID 19. There was quite a bit of discussion last year at the Estimates for TASCORP in relation to that. Under normal circumstances, with our government businesses, a letter of comfort would be issued if TASCORP felt that the borrowings were outside the bounds of what they felt comfortable with, but probably more importantly, the letter of comfort was a way to signal to both current and past treasurers that TASCORP had a view on a particular business.

The decision that we made during COVID-19 was to put in place a guarantee and a limit across all our businesses to enable them to respond quickly, should they need to, due to the extraordinary circumstances that we are in.

Mr Ferrall might be able to provide some further advice on that.

Mr FERRALL - There are two entities that I am aware of that are currently being considered for further support from the Treasurer. That's the TT Line and TasPorts. The TT Line is associated with the vessel replacement, and TasPorts is associated with their expansion for port facilities.