The Government announced its decision to sell the Printing Authority of Tasmania, the Southern Regional Cemetery Trust and the Hobart International Airport Pty Ltd in the 2007-08 State Budget Speech on 7 June 2007.

The Government believes that private ownership of these businesses will improve their commercial viability, remove operational constraints and enhance their growth potential.

The Government’s key objectives in the sale are to ensure:

• a maximum price is achieved;
• the continued operation and growth of the business; and
• the fair and equitable treatment of current employees.

Treasury has engaged sale advisers to provide strategic, financial, transaction and business valuation advice; one for the Hobart International Airport and one for the other two businesses. Both advisers were selected following an open competitive tender involving both local and interstate parties.

Lazard Carnegie Wylie has been appointed as lead adviser for the sale of Hobart International Airport. Lazard Carnegie Wylie’s team has extensive Government business sale experience, having been principal advisers to Australian Governments on more than $90 billion of privatisation transactions over the past 15 years.

Deloitte has been appointed as the lead adviser for the sale of the Southern Regional Cemetery Trust and the Printing Authority of Tasmania.

It is the Government’s intention to sell each business as a going concern through a competitive bid process. An independent probity adviser, RSM Bird Cameron, has been appointed to oversee the sale process to ensure that the sale process is conducted openly and fairly.

The sale of these businesses will enable the Government to reinvest the proceeds into new social and economic infrastructure that is vital to Tasmania’s future. Priority projects to be funded include the Brighton Transport Hub, planning associated with the new Royal Hobart Hospital and water irrigation systems across the state.

The Government expects to proceed quickly with the sale of these businesses and intends to sell them within the next six to nine months.

Any parties interested in the purchase of these government businesses should contact the relevant sale adviser:

For Hobart International Airport Pty Ltd – Mr Andrew Leyden, Managing Director, Lazard Carnegie Wylie, Phone +61 3 9657 8400.

For The Printing Authority of Tasmania and Southern Regional Cemetery Trust – Mr Simon Lester, Partner, Deloitte, Phone 61 3 6237 7066.

The Printing Authority of Tasmania (PAT)

The printing industry is going through a period of rapid change and the PAT is facing increased competition from private sector printers. The Government believes that sale of the PAT will provide the business with enhanced growth potential due to the removal of constraints imposed on the business as a result of Government ownership. For example, it will have improved access to capital and the ability to compete for private sector print work.

The Southern Regional Cemetery Trust (SRCT)

These services are not exclusive to the SRCT and most are also undertaken by local government and churches in southern Tasmania. Some services, such as cremation services, are also provided by the private sector. Competition in these markets means that divestment is not expected to reduce services or increase prices.

The Trust’s operating environment is going through a period of rapid change as privately owned funeral directors increasingly seek to build and operate their own crematoria. This is putting increasing pressure on the future financial viability of the business. The Government believes that the sale of the Trust will provide the business with enhanced growth potential.

The new owner of the SRCT will be subject to the provisions of the Burial and Cremation Act 2002 just like any other cemetery manager, whether in public or private ownership. The Burial and Cremation Act imposes obligations on cemetery operators for the long-term maintenance of cemeteries and requires a cemetery manager to provide access to any person, free of charge, at any reasonable time to visit monuments and graves.

The Government believes that the sale of the SRCT will provide the best opportunity for the business to remain commercially sustainable over the longer term.

Hobart International Airport Pty Ltd (HIAPL)

The Government has decided to sell HIAPL in order to release Government equity which will be directed towards Government’s core economic and infrastructure programs. The divestment will be undertaken at a time of strong market interest in infrastructure sales.

The Government’s decision to sell HIAPL is consistent with that of other State and Commonwealth Governments. HIAPL is the only capital city airport that remains in full public ownership in Australia.

It is not expected that the sale of HIAPL will affect air transport services to or from Hobart. Each airline carrier makes its own commercial decisions regarding the number of flights it wishes to schedule on routes in and out of Hobart, based on customer demand for its services.

The Government believes the sale of HIAPL will, over the longer term, enhance the provision of air transport services to southern Tasmania due to an increased ability for HIAPL to diversify and grow its products and services under private ownership.

Websites:

The Printing Authority of Tasmania (PAT)

The Southern Regional Cemetery Trust (SRCT)

Hobart International Airport Pty Ltd (HIAPL)