On financiers not signing up — 4 June 2009

Grech’s planned question: “Is it not the case that for OzCar to be viable, it needs to have finance providers sign up to participate? How many financers have signed up?”

Actual question by Abetz: “My next question is how many financiers need to sign up, and we have been through that and the amounts involved. So no financiers have signed up.”

On consequences of the OzCar SPV ending in 12 months — 4 June 2009

Grech’s planned question: “What is to happen to Ford Credit – and its dealers – in 12 months time when OzCar comes to an end?”

Actual question by Abetz: “What is going to happen, then, without saying too much as to what commercial dealings are happening with Ford Credit. As I understand it, OzCar was for a 12-month period?”

On car dealer financing vehicle not being activated 4 June 2009

Grech’s planned answer: “The answer is no; OzCar has not been activated”

Actual answer by Grech: “None. OzCar has not yet been activated”

On cost to taxpayer — 4 June 2009

Grech’s planned answer: “Yes it is very likely to lose money, especially if it is only about $400 million in size.”

Actual answer by Grech: “if the facility is anywhere south of $350 to $400 million and if the facility operates for 12 months the probability of loss will exceed 50 per cent.”

On supporting financiers, not dealers — 4 June 2009

Grech’s planned answer: “OzCar is now being used to prop up what would otherwise be a departing financier – rather than supporting the dealerships of those dealers who have said they will depart”

Actual answer by Grech: “With the decision to accommodate Ford Credit, the parameters have indeed changed a little, so that you are effectively now supporting a financier that would otherwise leave, leaving stranded dealerships”

On Treasury modelling — 4 June 2009

Grech’s planned question: “What does this say about the reliability of the forecasts of the Prime Minister, Treasurer and Treasury? The thing was initially expected to be a $2 billion facility”

Actual question by Abetz: “Did Treasury do any of this modelling that you do not want to get into, Mr Grech, very wisely, but this figure of $2 billion was announced as a sizeable sum and it was all part of taking decisive action”

On size of vehicle — 4 June 2009

Grech’s planned questions: “How large is OzCar expected to be? The Treasurer has said recently…that OzCar is expected to be around $850 million?” AND “This thing was initially expected to be a $2 billion facility; then it was revised down to $1.3 billion; then $850 million and now, less than a month after the Budget – only $400 million”

Actual question by Abetz: “As I understand it, OzCar, or the structure, was initially set up as a $2 billion mechanism, if I can call it that, and now it is going to be considerably less, about a third, a quarter of the size?”

On representations from Treasurer’s office re Bartons and Ipswich motors — 4 June 2009

Grech’s planned question: “Do the names Barton City Holden and John Grant from Ipswich Motors mean anything to you?”

Actual question from Abetz: “Did the Treasurer make representations on behalf of Bartons City Holden and John Grant Motors from Ipswich?”