Bills Digest no. 34 1976
Airline Equipment (Loan Guarantee) Bill
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
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Airline Equipment (Loan
Guarantee) Bill 1976
Date introduced: 2 November
House: House of Representatives
Commencement: On the day of Royal Assent
The purpose of this Bill is to seek
authority for the Treasurer to guarantee, on behalf of the
Commonwealth, the repayment of loans raised by Ansett Transport
Industries (Operations) Proprietory Limited to finance the purchase
of its seventh Boeing 727-200 series aircraft and related equipment
and spare parts.
The proposed Government guarantee
will be limited to an amount of US$8 million or its equivalent
(sub-clause 4 (2)). The airline will also be required to satisfy
the Treasurer that the terms and conditions on which the moneys are
borrowed are reasonable (sub-clause 5 (a)), and that various other
conditions have been met (sub-clauses. 5 (b) 5 (e)).
The figure of US$8 million or its
equivalent represents 80% of the total cost of the aircraft and
associated equipment. The aircraft presently under consideration is
planned for delivery in December 1976.
The Bill follows the enactment of
earlier legislation (Loans (Australian National Airlines
Commission) Act 1976) under which the Commonwealth sought approval
to borrow US$9.3 million on behalf of Ansett s competitor, the
Australian National Airlines Commission (TAA) to enable TAA to
purchase its seventh Boeing 727-200 series aircraft and related
equipment and spare parts.
Finance, Industries, Trade and Development
9 November 1976
Bills Digest Service
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