Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Brisbane cruise port terminal shortlisted under federal tax scheme.



Download WordDownload Word

image

Media Release

 

John Anderson

Minister for Transport, and Regional Services

 

BRISBANE CRUISE PORT TERMINAL SHORTLISTED UNDER FEDERAL TAX SCHEME

A26/99

9th March 1999

 

A cruise ship terminal for Brisbane was today short-listed under the Federal Government’ s Infrastructure Borrowings Tax Offset Scheme, with construction expected to proceed shortly.

 

The cruise terminal will receive a $10.1 million tax rebate over five years, subject to satisfactory environmental assessment and the scrutiny of the Australian Taxation Office, the Minister for Transport and Regional Services, John Anderson, said today.

 

“This is great news for Brisbane and the Australian cruise industry,” Mr Anderson said. “The terminal will provide the infrastructure necessary to allow Brisbane to play a greater role in the itineraries of cruise operators.”

 

“Cruise shipping is the fastest growing segment of international shipping but Australia’s share of that market is small, with the lack of port infrastructure of a suitable standard being a major factor.

 

“This development will make a big difference and it is important to note that without the Government’s rebate the project would probably have not gone ahead because the financiers of the project had underwritten their offer subject to receiving the rebate.”

 

Development of the terminal is also a prerequisite for a $170 million development including a 280 room hotel, and tourism facilities including an aquarium, large screen theatre and simulated movie rides. The integrated development will generate 2500 construction jobs over 18 months and 1200 permanent jobs thereafter.

 

The terminal will complement other cruise port facilities in Sydney and Cairns. Cruise operators seek to develop itineraries within close sailing distances. Port calls are the focus of the majority of cruise tours, and the success of itineraries including Sydney and Cairns is influenced by the development of adequate infrastructure at other ports.

 

The project follows four projects worth $900 million that were announced in January as qualifying for assistance under the IBTOS. The IBTOS offers tax rebates for private sector construction of publicly accessible infrastructure. The IBTOS provides a tax rebate to project lenders on the interest income obtained from approved projects. The benefits are passed on to the project borrower in the form of lower financing costs.

 

Media contact: Paul Chamberlin 02 62777680 / 0419 233989

 

Backgrounder

 

BRISBANE CRUISE PORT TERMINAL

 

Woodsands Pty Ltd is leaseholder and preferred developer for t he project. A condition of the lease is that construction of the terminal must commence no later than 1 July 1999 and be completed by no later than April 2001.

 

State Government approval for the integrated development is conditional on construction of the terminal proceeding. The terminal incorporates the development of a cruise ship berth, arrivals and departure hall, retail and commercial office space, and a small craft boat harbour, and is expected to attract visitors.

 

The viability of the integrated development is not reliant upon demand for the cruise ship terminal by cruise ship operators (although it will enhance performance). The feasibility is reliant upon demand for the hotel, retail, commercial and tourist facilities from tourism generally (predominantly arriving by air) and local residents.

 

The project meets the Commonwealth’s National Action Plan (1998) for tourism and the Commonwealth’s National Cruise Shipping Strategy 1995 (the Strategy) identification of the relatively basic standard of port infrastructure for cruise shipping in Australia as an inhibiting factor in the development of the cruise industry.

 

The Strategy also identifies that the high cost of establishing terminal facilities weighed against likely income generation must be considered in the light of the overall approach of attracting cruise vessels to a particular port. The Strategy highlights terminals can meet multifunctional objectives, as is this case with this project, such as shopping malls, conferences and functions.

 

 

rw