Tasmanian Development Amendment Bill 2024 (No 34)

Wednesday 14 August 2024

[11.30 a.m.]

Ms ARMITAGE (Launceston) - Mr President, I will not say too much about the bill. It has been covered quite well by the member for Murchison and the member for Apsley.

Ms Rattray - McIntyre.

Ms ARMITAGE - I have gone back in time.

Ms Rattray - It warms my heart, Mr President, that the member goes back in time.

Ms ARMITAGE - I was thinking, as I said it, 'is it Apsley?' It just came to mind.

I appreciate the amendments in this bill will make a difference for the work of the Tasmanian Development and Resources. First, it sets the new financial limits by increasing for the financial caps which are currently imposed on the TDR in undertaking its work.

Tasmanian Development and Resources focuses on the creation of investment‑associated employment through supporting the implementation of government policies. In other words, the TDR helps out organisations with money.

The Tasmanian Development Act 1983 sets specific areas of responsibility for the TDR board. I found online a number of plans and reports on activities and projects which the TDR has worked on. By way of example from the quarterly summary activity report from 31 March 2023, I found the instructive example of just what sort of work the TDR assists with.

The case study for supported affordable accommodation says: [TBC 11.32]

Supported Affordable Accommodation or SSA constructs specialised supported accommodation housing for vulnerable Tasmanians. In April 2021 SAA contact State Growth seeking financial assistance to help to progress the development of seven supported accommodation dwellings.

SAA was successful in obtaining an Australian government grant to construct the dwellings, however, requires short term financial assistance to alleviate cash flow constraints. TDR was able to assist SAA by approving a loan of up to $954,000 over an 18‑month term which provided sufficient working capital to allow SAA to successfully progress the project and deliver much needed support accommodation to vulnerable Tasmanians.

This line is an excellent example of TDR's ability to provide financial assistance to strategically important projects where normal financial markets may not be willing or able to assist for a variety of reasons.

SAA successfully repaid the TDR loan in January 2023.

This is a clear example of the work that is being done, often under the radar, as these sorts of financial assistance arrangements do not necessarily come with the flourish of a media event, announcement and ribbon cutting. It is just business as usual and is an excellent example of cohesive, coherent and smooth interaction of our different levels of government working together towards a common goal.

As we look towards the coming months and years and face the reality of the Tasmanian economy having challenges, it is all the more important we do have tools and resources to support projects like SAA and many others.

Importantly, this bill in the Tasmanian Development Act it amends has in place existing checks and balances, a robust governance structure and proper legal provisions.

I have said the nice things and now the concerns I have.

Ms Rattray - That was a really good initiative that was supported and the funds were repaid.

Ms ARMITAGE - Absolutely.

Ms Rattray - I am not saying there has not been some good things.

Ms ARMITAGE - No. They do some wonderful work.

Ms Rattray - Well done for raising that.

Ms ARMITAGE - I have real concerns of a five‑day consultation period. Very few people would be able to get themselves together in time to put submissions for consultation. Five days is a very short timeframe. In fact, I do not remember anything ever having a five‑day consultation period. It does not seem right.

Acquiring an interest in the business undertaking from $10 million to $35 million is a huge increase; a secured loan from $3 million to $15 million, five times, another massive increase. The one, as mentioned by other members, of unsecured loans from $250,000 to $500,000, where are the risk assessments? These are unsecured loans and $500,000 is the price of a house. I have real concerns there.

Also, discharging liabilities of $20,000 to $50,000. I accept if you do not have the money, you cannot get the blood out of the stone. If someone does not have the money and has gone broke, you are not getting that money back. I guess that is fairly difficult. Why it is important to have risk assessments? To do your very best.

This is public money. It does not matter who it is - whether it is council or a government - it is not their money. It is our money and our constituents' money. Would you spend your own money on that? Would I give somebody an unsecured loan up to $500,000? I am not sure that I would.

Ms Rattray - Maybe one of your boys.

Ms ARMITAGE - No, I do not think I would. I might put it in my name if I bought something, but I do not think I would be giving someone an unsecured loan, family or not; probably less likely to family. It is an awful lot of money for an unsecured loan. We do need to consider this money when we are spending it as it is like our own money.

I have some serious concerns there, as other members have mentioned, but I do accept the wonderful work done by TDR and how they help many in the community.

I will also listen to other members. I understand the reason and the need to expand TDR's scope, especially off the strength of previous success stories of organisations receiving vital assistance from them. They are opportunities which likely would not have been possible to capitalise on if not for the assistance of TDR. These are the sort of opportunities that will only become more difficult to seize if economic conditions deteriorate.

I see a bit of a balancing act and understand the need to increase. I am surprised at the level of increase, whether it is because you think if we come back once, we will not need to come back for another 10 years - if that is why it has increased so much. I know house prices, for example, have gone up, but they have not gone up five times. Our valuations on our land values might have, but apart from that.

Looking at this, I really am in a bit of a quandary. I would like to support it, but I would like some more answers.