Adelaide Zoo gets government bail out
Adelaide Zoo has received a massive bail out package, with the state government increasing its funding and striking a deal with banking-giant Westpac over debts.
"When the government first became aware of the zoo's financial plight earlier this year it began working with both Westpac and Zoos SA and it is pleasing to see these negotiations completed," Premier Jay Weatherill said.
Under the negotiations, the government will increase its funding to the zoo from $3.126 million to $4.5 million.
In addition to the funding increase, the government will also loan Zoos SA $2.6 million to form part of a settlement over debts the zoos hold with Westpac.
In return, Westpac has also negotiated a sponsorship deal with both Adelaide and Monarto zoos, slashing Zoos SA's debt from $25 million to $7.5 million.
South Australian Treasurer, Jack Snelling, said Zoos SA will now receive
"Zoos SA's annual grant had not been increased for some time and has fallen in real terms, so it was important that i be increased to assist the zoo to meet its day-to-day operating costs, but it was also important that South Australian taxpayers were not bailing out a financial instituion," Mr Snelling said.
