Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The ACT Government Loan Bill underpins the government's decision to provide a concessional loan to the ACT government of up to $1 billion to undertake a loose-fill asbestos remediation program.

The ACT government faces significant challenges in dealing with the remediation of loose-fill asbestos across the territory.

The one-off size and cost of dealing with this issue represents about a fifth of the Australian Capital Territory's annual budget.

Without the Commonwealth's assistance, the ACT's capacity to deal with this issue would have been significantly curtailed and put at threat its own credit rating.

The loan will ensure that the ACT government is in a position to deliver a well-structured remediation program in the coming years.

The bill provides authority for the Commonwealth to enter into a loan agreement with the ACT for an amount that must not exceed $1 billion.

The terms and conditions of the loan will be set out in the loan agreement. The minister administering the Australian Capital Territory (Self-Government) Act 1988 may enter into the loan agreement on behalf of the Commonwealth. The Ministers for Infrastructure and Regional Development has responsibility for that act.

The bill also appropriates $750 million from the Consolidated Revenue Fund in 2014-15 for the purposes of making payments under the loan agreement. The appropriation will be brought into existence on the day after it receives royal assent. The remaining $250 million will be appropriated through the 2015-16 budget.

A portfolio supplementary estimates statement will be tabled in the parliament.

Debate adjourned.