$317 million Ayers Rock Resort purchase 'inexplicable'

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$317 million Ayers Rock Resort purchase ‘inexplicable’

November 23, 2013

The new Chief Executive of the Indigenous Land Corporation (ILC) says he cannot understand why the previous board bought the Ayers Rock resort for $317 million.

Michael Dillon has told a Federal Senate estimates committee hearing on Friday that the previous ILC board had borrowed almost $200 million to make the purchase of the Northern Territory property in October 2010.

Dillon said write-downs on the value of the resort have already led to $109 million in losses, stating "how the former board made this decision is inexplicable and perhaps inexcusable."

Dillon said that former Federal Finance Minister Penny Wong and Indigenous Affairs Minister Jenny Macklin had written letters to the ILC strongly advising against the purchase.

Dillon added "Ministers Wong and Macklin wrote separately and strongly worded letters expressing reservations and concerns about the purchase.

"These letters were among the strongest worded letters, indeed were the strongest letters, I have ever seen from a minister to a statutory corporation in my 30 years of public sector experience."

21st November 2013 - INDIGENOUS LAND CORPORATION INTRODUCES SWEEPING CHANGES AT AYERS ROCK RESORT

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