PM Transcripts

FOR PRESS P. M. No. 31/ 1967
SOUTH AUSTRALIAN GAS PIPELINE FINANCING SCHEME
Statement by the Prime Minister, Mr. Harold Holt
As a result of discussions that have been going on for some
time between the Commonwealth and the Government of South Australia,
followed by a decision at the Loan Council meeting today, agreement has
been reached between the Commonwealth and South Australia on a scheme
to finance the construction of a pipeline to carry natural gas from Gidgealpa
in the North-East of SQ~ th Australia to Adelaide.
On present estimates, the amount of finance required for
the project is $ 35 million spread over a period extending to mid-1972.
Expenditure will be heavily concentrated in the financial years 1967-68
and 1968-69. South Australia is to arrange semi -governmental borrowings
for the purpose of the pipeline authority which is to be established up to a
total of $ 20 million. The Loan Council agreed today to a special addition of
million being made to the semi -governmental borrowing programme of
South Australia for the period to 1971 -72. The purpose of this is to cover
the proposed borrowings for the pipeline authority.
Over the same period the Commonwealth will make loans
to South Australia to an amount of $ 15 million.
These loans will be repaid by South Australia over the
years 1972-73 to 1979-80G. It is expected that for this purpose finance
will be sought by way of further semi -governmental borrowings by the
pipeline authority.
CANBERRA, 16th February, 1967.