Darwin News
NT House Sell Off Raises Questions
The Territory Opposition says the recent listing of NT House on the open market for $40 million by TIO raises some troubling questions.
"It’s the privatisation of public assets by stealth," says John Elferink, Shadow Treasurer of the CLP, known for it's staunch historical opposition to all forms of privatisation ... not.
"After the Government had a failure of nerve regarding its decision to privatise TIO in 2005, we are now seeing TIO privatised by asset stripping.
"I’m also concerned about the timing of the decision to sell NT House.
"With the world financial system in crisis and equity markets absorbing deep losses it doesn’t appear a sensible time to sell this public asset.
"A sale now suggests that TIO might be suffering from the international drought in credit and that recent changes have contributed to the problems.
"In 2007 the TIO sold its home loan portfolio to a company called Cuscal Pty Ltd for $224 million.
"Recent advice that I have received suggests that Cuscal has joined the list of credit providers who have stopped providing credit to its customers, including TIO.
"If NT House is being sold due to credit difficulties it amounts to a fire sale in the middle of a world financial crisis.
"The serious questions raised by this sale must be addressed by the Treasurer.
"At the very beginning of the credit squeeze the Treasurer was quick to point out that there was little exposure to the credit crisis in the Territory. Her recent silence has been deafening.
"I have asked for Treasury briefings and placed questions on notice to seek more information as to how the Territory is positioned with regard to the international financial crisis.
"I’m still waiting for a reply."
Most Alice Springs residents questioned on this matter replied along the lines of: "That's Darwin stuff, who cares?".
2008-10-24
