Tuesday, 29 December 2015

Gunns' liquidator talks tough?

The Mercury reported here that Gunns’ liquidator, PPB Advisory,” has summonsed auditors Leigh Franklin and David Lumley of KPMG’s Hobart office to a public examination under the Corporations Act in the Supreme Court of Victoria early next year.”


“............PPB Advisory liquidator Daniel Bryant wants to examine KPMG about its review of Gunns’ 2008 financial statements, the audit of Auspine to June 2009 and all financial models relating to the audits of Gunns group’s financial statements between June 30, 2009, and June 30, 2011.

Liquidators have asked for documents about the $2.5 billion Bell Bay pulp mill, land valuations, biological assets and receivables in relation to the managed investment schemes.

The 2011 documents sought include the Bell Bay pulp mill project financial model dated June 2011, pulp mill cost summary dated May 31 and the pulp mill capitalised cost summary.

A public examination is an investigative process used by liquidators to search for assets, inquire into potential claims, discover any offences and provide some sense of resolution to creditors.”

At issue is trying to determine the date of insolvency.

Tuesday, 22 December 2015

Poker machines: Super profits or a new way?

(An abridged version of this blog was published in The Mercury here)
The odds on Federal Hotels retaining an exclusive license to conduct gaming operations in Tasmania after 2023 lengthened considerably after the Tasmanian Hospitality Association (THA) publicly aired a rift with its hitherto close ally and largest member.

It was reported here that THA members wanted a bigger share of the spoils from gaming losses that currently go mainly to the exclusive license holder.

What exactly are the spoils up for grabs?

Sunday, 6 December 2015

Will Minister Harriss outlast FT?

Resources Minister Paul Harriss’ performance at Forestry Tasmania’s scrutiny hearing last Friday will do little to muffle  calls for his removal.

It was a shocker.

A bad day was assured when Mr Harris’ opening address referred to 470,000 tonnes of peelers being supplied to Ta Ann for 2014/15.


The actual figure was 144,000 tonnes just below the contracted amount.

How could a Minister get it so wrong? How could a Minister with the lightest load in Cabinet make such a mistake reading from a prepared statement?

The Minister again talked about the massive turn around in ‘comprehensive income’ from a loss of $43 million in 2013/14 to a profit of $31.7 million, shown elsewhere to be a mirage.

 A few minutes later Chairman Annells corrected the record:

It shows a remarkable turnaround........ from the board's point of view, it is interesting,....... but does it have any real significance?  None whatsoever.”

Wednesday, 2 December 2015

Federal Hotels nonsense

Greg Farrell is at pains to emphasise Federal Group's contribution to the Tasmanian economy.

His desperation is starting to show.

He was reported as telling staff at a recent Xmas function that “overall, payments from our company account for eight percent of all State Government revenue. These payments have allowed Tasmanian Governments over that period to invest in major services for the Tasmanian community such as hospitals, schools and roads.”

When you’ve got a captive audience and you’re supplying free grog, you can get away with anything.

The figure’s not 8%. It’s closer to 1%.