EXPLANATORY STATEMENT
1982 No.215
Minute No. 13 of 1982 - Minister for National Development and Energy
Subject: Snowy Mountains Hydro-electric Power (S.M.H.A. Stock) Regulations
In 1979 the Snowy Mountains Hydro-electric Power Act 1949 was amended to provide the Snowy Mountains Hydro-electric Authority with the power to borrow funds otherwise than from the Commonwealth for the purpose of financing capital assets required for the continuing operations and maintenance of the Snowy Mountains Scheme. However, it has been found, in the light of increasing competition for loan finance, that the existing arrangements are not sufficiently flexible. It is now proposed in view of difficulties that the Authority has been experiencing in obtaining access to loan finance from its bankers that Regulations should be made to enable it to borrow against the issue of inscribed stock. The issue of inscribed stock has a number of advantages over the present arrangements as far as lenders are concerned.
The issue of inscribed stock has become standard practice in a number of other Commonwealth Statutory authorities such as Telecom, the Pipeline Authority and the A.C.T. Electricity Authority and the present proposal has been endorsed by the Departments of Finance and the Treasury.