THE ABC is reporting that the ACT Government is being offered a billion dollar loan by the Federales to sort out the Mr Fluffy asbestos insulation crisis.
The $1 billion loan will operate as a line of credit and have no impact on the federal budget’s bottom line.
Once the homes have been demolished, the ACT Government is expected to use the proceeds from the sale of some of the vacant blocks to repay up to 70 per cent of the loan.
Some of the loan will be set aside to safely dispose of the asbestos. Fixing the problem is likely to cost the territory government about $300 million in total.
ACT Chief Minister Katy Gallagher and the Federal Government minister responsible, Eric Abetz, will meet soon to discuss the Commonwealth’s offer.
A spokesman for Senator Abetz refused to comment on the Cabinet decision.
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