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| Note 19. Contingent Assets and Liabilities |
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Guarantees
Melbourne City Council and the State Government of Victoria have indemnified, in equal shares, Regent Management Company Pty Ltd against any liability, loss or expense incurred or suffered by the company. Over the financial year, no calls on this indemnity were made.
Melbourne City Council, as a once-off arrangement, agrees to act as guarantor for Fencing Victoria's loan of $250,000 for their capital contribution towards the State High Performance Centre, which will be completed as part of the Arden Street redevelopment. Over the financial year, no calls on this indemnity were made.
At 30 June 2009 there are no outstanding Melbourne City Council bank guarantees. |
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| a) Melbourne Wholesale Fish Market |
| In the financial year ending June 2007, the Melbourne Wholesale Fish Market Pty Ltd had offered the business for sale through a tender process from a short-listed Expression of Interest Registrants. The tender process was terminated. The Fish Market tenants were advised of the outcome of the process and the company intended to close the Market for business by no later than 31 March 2009. The company has extended the closure to 30 September 2009.
Concurrently, the company is continuing its negotiations with VicTrack for the sale of the site, subject to a number of conditions including vacant possession. |
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| b) Contributed assets |
| During 2009 total contributed assets of $18.8 million was received. This was comprised of assets from Docklands including first time recognition of land under roads acquired from 1 July 2008 and assets from the Commonwealth Games Village site. |
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| c) Kensington and North Melbourne |
| Legislation to transfer the municipal responsibility for the Kensington and North Melbourne precinct to Melbourne City Council received Royal Assent on the 11 December 2007. The transfer occurred on 1 July 2008. A receivable of $46.5 million was recognised at 30 June 2008 representing the value of assets received on that date. This amount has since been transferred to assets.
An amount of $46.5 million has been taken to account in the profit and loss as contributed assets in relation to the transfer for the year ended 30 June 2008. |
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