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15. Contingent Liabilities and Contingent Assets
ASC PTY LTD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -CONTINUED
For the year ended 30 June 2019
The consolidated entity has arranged for the issuance of a bank guarantee in favour of Return to Work Corporation of South Australia for the purpose of self insurance under the Return to Work Regulations 2015, a bank guarantee in favour of the Department of Defence for the purpose of a performance security deed for the Training School contract, a bank guarantee in favour of Luerssen Australia Pty Ltd for the mobilisation of the construction of the Offshore Patrol Vessels, a bank guarantee in favour of Westim Pty Ltd for the warehouse lease and a bank guarantee in favour of Defence Projects Pty Ltd for the AWD Systems Centre lease. The total value of the bank guarantees arranged by the consolidated entity is$9.2m (2018: $10.4m). No liability has been recognised by the consolidated entity in relation to these guarantees as the fair value of the guarantees as at 30 June 2019 and 30 June 2018 is immaterial.
In addition to the above, the consolidated entity has provided guarantees and indemnities for the following:
- to Australian Naval Infrastructure Pty Ltd in relation to ASC AWD Shipbuilder Pty Ltd's obligation
- to Australian Naval Infrastructure Pty Ltd in connection with the Common User Facility;
- to Bath Iron Works Australia Corporation in relation to ASC AWD Shipbuilder Pty Ltd's obligations to Bath Iron Works Australia Corporation in connection with the strategic capability service agreements; and
- to the Commonwealth of Australia in relation to ASC AWD Shipbuilder Pty Ltd's obligations to the Commonwealth of Australia in connection with the Hobart Class Air Warfare Destroyer program.
No losses are expected in relation to these guarantee arrangements.