Williamsdale Quarry - Auditor General Questions Viability
3 October 2001
Significant doubts about the future operation of the Williamsdale Quarry have emerged in an independent audit report into the joint venture which has just been released, Labor Shadow Employment Minister Wayne Berry said today.
Mr Berry’s comment follows the release of the Totalcare Annual Report 2001 which contains a “Special Purpose Financial Report” for the Williamsdale joint venture. The joint venture was approved by the then Attorney General and Treasurer Gary Humphries as a principal shareholder without reference to the ACT Legislative Assembly for approval and scrutiny.
"The first signs of trouble appear in the Totalcare Chairman’s report where he says:
‘The company will need to review the investment in the Williamsdale Quarry"..’
and from there on it gets worse with the Auditor General stating:
‘I disclaim any assumption of responsibility for any reliance on this report".’
And further:
‘".there is significant uncertainty whether the Williamsdale Quarry Joint Venture will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.’
Copy of Auditor General’s Report follows
"It has taken till the last 3 weeks of the Humphries Government’s term for the facts to come out about the Williamsdale Quarry and it’s all bad news.
"I have spent months asking questions of Gary Humphries about the quarry, questions which he has not answered. I have sought information under the Freedom of Information Act which was refused. Now only 16 days out from the Assembly election some light is thrown on the operations of the Williamsdale Quarry.
"Labor is a supporter of bringing the quarry to full production as forecast in the original business case which led to the establishment of the quarry by Totalcare. Regrettably this possibility looks to be remote because of the government’s mismanagement.
"The business case predicted revenue of $5.2 million in 2001 growing by 3% per annum forecast to reach net profits of $5.5 million over the first 5 years. According to the Statement of Cashflows (page 43) receipts from operations totalled $308,000 " almost $5 million short of predictions.
Williamsdale Quarry joins the Bruce Stadium, the ‘Feel the Power’ Campaign, the secret Hall-Kinlyside land deal and the tragic hospital implosion as hallmarks of the ACT Liberal Government’s mismanagement of ACT assets," Mr Berry concluded