Fast Ships calls for fast lease

Fast Ships Chairman Mr Alf Salter has expressed concern about delays in signing the lease agreement with Gosford Council for facilities at Ettalong.

"This is incredibly frustrating," Mr Salter said.

"The executing of the lease agreements with the council is a condition of the development consent on which council insisted back in 2000.

"It was the council's way of ensuring that the company moved forward with the project.

"We spent many months and thousands of dollars negotiating and preparing the lease which is subject to stringent conditions and now we want to sign the document as is required under the consent," Mr Salter said.

"The company has been in a position to sign the document for the last six months and yet council continually defers the matter with requests for yet more information and guarantees.

"The council continually raises the issue of the finance for the project: Has the company got the money?

"The commercial reality is that the potential project funders will only agree to the finance if security of tenure is in place.

"In other words, they want to know that the lease for the land and sea-based infrastructure has been signed so that they have an asset on which to rely," Mr Salter said.

"It's like applying to the bank for a home loan.

"They will only give you the money as long as they have the title deeds to the property.

"In simple terms, that is where Fast Ships is at the moment."

Mr Salter said that the company was very concerned that council's decision was fettering the company's ability to meet the terms of the development consent.

He said he believed the council action was placing the project in jeopardy.

"Gosford councillors keep saying they want the project to proceed yet their actions are actually impeding progress.

"Negotiating loans for infrastructure operations like this are very complicated and unfortunately takes time.

"Lending institutions are always nervous with projects that do not have comparables on which they can be judged," said Mr Salter.

"But one thing all lenders want is the security over the asset.

"In the case of Fast Ships, the asset is the executed leases which we have been trying to sign since the beginning of the year.

"The documents have been prepared in accordance with the council's terms and conditions.

"The company has given all the guarantees it reasonably can.

"All we want to do is get it signed and move forward."

Mr Salter said that comments made by Peninsula resident Mr Michael Gillian at last month's council meeting showed a complete lack of understanding of the project.

"Clearly Mr Gillian has little knowledge of the history of the negotiations between council and the company otherwise he would have known that the information sought by council has already been provided many times and that the lease documents have been negotiated accordingly," said Mr Salter.

Press release, September 8

Alf Salter, Fast Ships Limited