Government Guarantee
TASCORP Government Guarantee
Tasmania is a member of the Federation of six States and two Territories which comprise the Commonwealth of Australia.
Since Federation, government in Tasmania has been exercised at three levels:
1. the Federal (Commonwealth) Government with authority based on the Australian Constitution and centred in Canberra;
2. the State Government, with residual powers and centred in Hobart; and
3. local government for the six cities & 23 municipalities, with authority derived from Acts of the State Parliament.
2. the State Government, with residual powers and centred in Hobart; and
3. local government for the six cities & 23 municipalities, with authority derived from Acts of the State Parliament.
Tasmania follows the Westminster style of government, having power formally vested in a Governor and Parliament. Executive power is determined by the ministers in Cabinet meeting under the chairmanship of the Premier.
Having regard to the above, all of TASCORP's borrowings are guaranteed by the sovereign State of Tasmania through section 15(1) of the Tasmanian Public Finance Corporation Act 1985 which states:
"Liabilities incurred or assumed by the Corporation in pursuance of this Act are guaranteed by the State, and any liability of the Crown arising by virtue of this subsection shall be a charge on the Consolidated Fund, and shall be payable out of the Consolidated Fund without further appropriation than this section."
From 23 May 1995, by reason of an amendment to the Tasmanian Public Finance Corporation Act 1985, the Corporation is no longer a prescribed authority for the purposes of the Public Authorities (Overseas Borrowing) Act 1979.
Outstanding overseas borrowings prior to 22 May 1995 continue to benefit from the Public Authorities (Overseas Borrowing) Act for the full program term up to the aggregate approval limit of the authorised borrowings at any one time. Accordingly, the guarantee for these borrowings is provided under section 7 of the Public Authorities (Overseas Borrowing) Act, which states:
"Where any loan to which this Act applies is made to a prescribed public authority, the due payment of any amount payable by the authority to the lender in respect of the loan is a charge on the income and revenue of the authority from whatever source arising and is guaranteed by the Treasurer, and, where any agreement to which the Treasurer is a party specifies any terms or conditions on any subject to which the due payment of those amounts is so guaranteed, the due payment of those amounts is so guaranteed on or subject to those terms and conditions."
For all overseas borrowings since 23 May 1995, the guarantee available under Section 15(1) of the Tasmanian Public Finance Corporation Act 1985 is applicable and remains in force.