Contingent liabilities — unquantifiable
Agriculture, Fisheries and Forestry
Compensation claims arising from Equine Influenza (EI) Outbreak
The Australian Government may become liable for compensation actions should the Department of Agriculture, Fisheries and Forestry be found negligent in relation to the recent outbreak of EI. At this stage any potential liability resulting from the EI outbreak cannot be quantified. An independent inquiry is being conducted into the entry and spread of EI in Australia.
Defence
HMAS Melbourne and HMAS Voyager damages claims
Former crew members of HMAS Melbourne have instituted legal proceedings against the Australian Government claiming damages for injuries allegedly caused by the HMAS Voyager/HMAS Melbourne collision on 10 February 1964. As at 24 September 2007 fifty three claims remain current and nine of the current claims are statute barred under applicable state laws. In those cases, the plaintiffs will require an extension of time prior to progressing their claims for damages. Further claims are likely to be made in connection with the collision.
Finance and Administration
ASC Pty Ltd (ASC) — Directors' indemnities
The Australian Government has indemnified the ASC Directors for any claim made against them as a result of complying with ASC's obligations under the Process Agreement between the Electric Boat Corporation (EBC), the Australian Government and ASC.
The Australian Government has indemnified Board members of the ASC for any claim against them as a result of complying with ASC's obligations under the Service Agreement between ASC, the Department of Defence, EBC and Electric Boat Australia.
The Australian Government has indemnified Board members of ASC for any claim and legal costs arising from the result of the Directors' acting in accordance with the Board's Tasks and Responsibilities, as defined under the indemnity.
Telstra 3 BPAY Biller Agreement — indemnities
The Australian Government has entered into a mutual indemnity arrangement under a BPAY Biller Agreement with the Commonwealth Bank of Australia (CBA) to facilitate the use of BPAY for the Telstra 3 retail application settlement. The Australian Government has issued an indemnity in the CBA's favour against any harm or losses that the CBA may suffer as a result of any negligence, misrepresentation, fraud or misuse of BPAY marks committed by the Australian Government in respect of its obligations under the Agreement, including as a result of any claims. Likewise, the CBA has provided the Australian Government with a reciprocal indemnity.
Tuggeranong Office Park (TOP) Sinking Fund approved expenses
As part of the current work on the TOP completion strategy, the Department of Finance and Administration has received revised advice that under the Commonwealth Conditional Indemnity relating to the TOP sinking fund a potential tax liability and sale costs may become payable. The extent of this liability will not be known until the completion process is further advanced.
Transport and Regional Services
Assumed residual liabilities of the Australian National Railways Commission
The Australian Government under Schedule 3 of the Australian National Railways Commission Sale Act 1997 assumed the residual liabilities of the Australian National Railways Commission. A writ of summons was filed in the High Court of Australia on 20 August 2004 by a single plaintiff and a statement of claim on behalf of 24 other plaintiffs was filed in the District Court of South Australia on 22 September 2005. The High Court and District Court proceedings were consolidated into a joint action involving 25 plaintiffs by the District Court at a directions hearing on 5 June 2007. The plaintiffs' consolidated statement of claim seeks unspecified damages for personal injuries as a result of exposure to lead and other particles from trains carrying lead and zinc ore at Broken Hill, which were operated by the Australian National Railways Commission between 1983 and 1998.
Tripartite deeds relating to the sale of federal leased airports
Tripartite deeds apply to 12 federal leased airports (Adelaide, Alice Springs, Bankstown, Brisbane, Canberra, Gold Coast, Darwin, Launceston, Melbourne, Perth, Sydney and Townsville). The tripartite deeds between the Australian Government, the airport lessee company and financiers provide for limited step-in-rights for the financiers in circumstances when the airport lease is terminated to enable the financiers to correct the circumstances that triggered such a termination event. These contingent liabilities are considered to be unquantifiable and remote.