Mr BAYLEY - Treasurer, I am trying to piece together some of the details regarding UTAS's refinancing of TASCORP borrowings and the selection of an alternative lender for their southern infrastructure project. As I understand it, UTAS has a borrowing facility of $125 million, as well as $75 million of overnight working capital. This $200 million was covered by COVID-19 lending state guarantee. As I understand it, this has subsequently been refinanced.
Am I correct that the COVID-19 lending guarantee only applies to TASCORP borrowings? Can you confirm that this refinance debt facility is no longer covered by government guarantee?
Mr FERGUSON - It is a bit outside of today's scrutiny hearing, if I may say that. I am happy to answer the question, but I don't wish to start answering questions about things that are outside the role of TASCORP because the university is not borrowing from TASCORP right now. I can say that the Government doesn't guarantee university borrowings, but I play a role - not in this role as shareholder minister, but as Treasurer - in approving borrowing limits. I invite the Chairman to say more, but we are not going to be able to say too much more about university borrowings.
Mr FERRALL - UTAS hasn't borrowed from TASCORP for approximately 18 months. We have no current limit for UTAS and we have no borrowings from UTAS. Obviously, UTAS can borrow from parties other than TASCORP, which they have chosen to do.
Mr BAYLEY - A range of RTI correspondence was released relatively recently, and there was a letter from 8 June 2021, where the university through Vice Chancellor, Rufus Black, seemed to be asking the then premier, Mr Gutwein, to ask TASCORP to alter some of its security requirements for the proposed additional $200 debt facility. And then, subsequently, it seemed that UTAS and TASCORP came to an agreement. Was that to do away with any lending arrangements? The RTI was heavily redacted, so, it is hard to read between the lines and seek clarity here.
Mr FERRALL - I can't comment on the RTI. I don't have it in front of me. The university and TASCORP had been working together for some time in terms of a future borrowing requirement at that point in time for UTAS. UTAS had proposed a range of securities, a security package that TASCORP found acceptable. At the time, October 2021, UTAS advised TASCORP that it had decided to explore other debt and capital loan markets directly. Their advice to TASCORP at the time was that it was in part because of perceived pricing differentials; they perceived they could get a better price than they were getting through TASCORP, and UTAS was also experiencing some internal challenges in providing or offering up the security that they had previously offered to TASCORP.
Mr BAYLEY - So just to confirm, there's no borrowing facility between UTAS and TASCORP as of now?
Mr FERRALL - No.
