Dear Minister

15. ontingent liabilities and assets

The ILC has agreed to provide a guarantee for Voyages corporate credit card facility with Westpac Banking Corporation. The ILC and Voyages have provided cross guarantees for obligations under the sale agreement for the purchase of Ayers Rock Resort which includes a cross guarantee for deferred payment arrangements to the vendor.

The ILC has guaranteed payment of an uplift payment to the vendors of Ayers Rock Resort which will be calculated in accordance with the sale agreement and will take into account the increase in value of Ayers Rock Resort less any capital development undertaken. The minimum amount payable to the vendor is $17 million. The present value of the payment has been included in other payables. Any amount in excess of the minimum $17 million payment is considered to be an unquantifiable contingent liability.

15. Contingent liabilities and assets (cont..)

Consolidated	Guarantees	Claims for damages/costs	Other	Total
	2011	2010	2011	2010	2011	2010	2011	2010
	$,000	$,000	$,000	$,000	$,000	$,000	$,000	$,000
CONTINGENT LIABILITIES
Balance from previous period	63	763	–	–	–	–	63	763
New	–	–	–	–	–	–	–	–
Re-measurement	–	–	–	–	–	–	–	–
Liabilities crystalised	–	–	–	–	–	–	–	–
Obligations expired	(63)	(700)	–	–	–	–	(63)	(700)
Total contingent liabilities	–	63	–	–	–	–	–	63
CONTINGENT ASSETS
Balance from previous period	–	–	–	–	–	–	–	–
New	–	–	–	–	–	–	–	–
Re-measurement	–	–	–	–	–	–	–	–
Assets crystalised	–	–	–	–	–	–	–	–
Obligations expired	–	–	–	–	–	–	–	–
Total contingent assets	–	–	–	–	–	–	–	–
Net contingent liabilities	–	63	–	–	–	–	–	63

15. Contingent liabilities and assets (cont..)

ILC	Guarantees	Claims for damages/costs	Other	Total
	2011	2010	2011	2010	2011	2010	2011	2010
	$,000	$,000	$,000	$,000	$,000	$,000	$,000	$,000
CONTINGENT LIABILITIES
Balance from previous period	63	763	–	–	–	–	63	763
New	400	–	–	–	–	–	400	–
Re-measurement	–	–	–	–	–	–	–	–
Liabilities crystalised	–	–	–	–	–	–	–	–
Obligations expired	(63)	(700)	–	–	–	–	(63)	(700)
Total contingent liabilities	400	63	–	–	–	–	400	63
CONTINGENT ASSETS
Balance from previous period	–	–	–	–	–	–	–	–
New	–	–	–	–	–	–	–	–
Re-measurement	–	–	–	–	–	–	–	–
Assets crystalised	–	–	–	–	–	–	–	–
Obligations expired	–	–	–	–	–	–	–	–
Total contingent assets	–	–	–	–	–	–	–	–
Net contingent liabilities	400	63	–	–	–	–	400	63

16A. Unquantifiable Contingencies

The ILC has guaranteed payment of an uplift payment to the vendors of Ayers Rock Resort which will be calculated in accordance with the sale agreement and will take into account the increase in value of Ayers Rock Resort less any capital development undertaken. The minimum amount payable to the vendor is $17 million. The present value of the payment has been included in other payables. Any amount in excess of the minimum $17 million payment is considered to be an unquantifiable contingent liability.

16B. Significant Remote Contingencies

The Corporation had no significant remote contingencies as at reporting date.

17. Transactions with wholly owned entity

The ILC is the ultimate parent entity in the wholly-owned group comprising itself and its wholly-owned subsidiaries LEA, NIPE, NCIE and Voyages.

The ILC provided grant funding to its subsidiaries as follows:
NIPE – $7,752,353 (2010: $6,835,428)

The ILC provided loan funding to its subsidiaries as follows: 
NCIE – $1,986,242 (2010: $1,464,199)

Voyages – $306,305,403 (2010: $Nil)

18. Remuneration of Directors

	Consol 2011 $	Consol 2010 $	ILC 2011 $	ILC 2010 $
Remuneration received or due and receivable by Directors	578,478	574,962	520,854	514,994
The number of Directors of the Corporation included in these figures are shown below in the relevant remuneration bands.
	Consol 2011	Consol 2010	ILC 2011	ILC 2010
Less than $14,999	4	4	–	–
$15,000 – $29,999	2	–	–	–
$30,000 – $44,999	4	6	4	4
$45,000 – $59,999	1	1	1	1
$75,000 – $89,999	1	1	1	1
$240,000 – $254,999	1	–	1	–
$255,000 – $269,999	–	1	–	1
	13	13	7	7

19. Related party disclosure

For the purposes of related party disclosures, the following were Directors of ILC during or since the end of the financial year:

Ms Shirley McPherson (Chairperson) – appointed 9 August 2001

Mr William Jeffries (Deputy Chairperson) – appointed 31 August 2004

Mr Kevin Driscoll – appointed 10 February 1998

Mr David Baffsky – appointed 9 August 1999

Mr Ian Trust – appointed 17 October 2005

Mr Maxwell Gorringe – appointed 17 October 2005

Ms Evonne Goolagong-Cawley – appointed 20 September 2007

For the purposes of related party disclosures, the following were Directors of NCIE Ltd during or since the end of the financial year:

Mr Ian Ferrier, appointed 17 December 2008

Mr William Jeffries, appointed 9 October 2008

Ms Evonne Goolagong-Cawley, appointed 9 October 2008

Professor Peter Shergold, appointed 17 December 2008

Mr Richard Longes, appointed 9 October 2008

Mr Sol Bellear, appointed 9 October 2008

Professor Ronald Penny, appointed 9 October 2008

Ms Roslyn Morgan, appointed 24 December 2009

For the purposes of related party disclosures, the following were Directors of Voyages during or since the end of the financial year:

Mr David Baffsky appointed 30 September 2010

Mr David Galvin, appointed 30 September 2010

Mr Jacobus Klein, appointed 3 June 2011

The aggregate remuneration of Directors is disclosed in Note 18.

The amount of aggregate superannuation contributions paid on behalf of Directors for 2011 was $58,655 (2010: $65,490).

No Director has received or became entitled to receive during or since the end of the financial year, a benefit due to any contract or contracts made by the ILC or its subsidiaries other than those disclosed in Note 20.