Tower pays up, and the state shares where the money goes
TOWER Holdings' "rental situation" regarding Great Keppel Island has now been rectified.
A spokesperson for Tower Holdings confirmed early yesterday that the $250,000 in outstanding rental payments to the State Government had now been paid.
The company had been in rental arrears for over a year, with the department issuing formal "notices of intent to forfeit" last month which revealed the company had until April 28 to make payments.
Tower has made the payments well within that time frame.
Tower Holdings hit back at the state earlier this week, and said the company had "honoured" all of its State Government lease payments on GKI since its ownership.
At the time a spokesman for Tower said they were advised by The Department of Natural Resources and Mines (DNRM) only two weeks ago that additional time would not be provided.
They were also critical the $1.2 million, now $1.45 million, they have paid in lease payments had not been spent by the State Government on improving infrastructure on the island.
Questions regarding the expenditure of lease funds and any potential obligations to GKI infrastructure were posed to State Development and Minister for Natural Resources and Mines, Dr Anthony Lynham's office via Keppel MP Brittany Lauga's office yesterday.
"Rental payments for leases such as the one over Great Keppel Island are provided as consolidated revenue to Treasury, who then make decisions as part of their normal budgetary processes as to where the revenue is allocated such as health and education," the statement read.
"The government governs for the whole state and spending of revenue is decided on a balance between available funds, demands, priorities and needs."