NT Cabinet has approved the sale of TIO for $424 million to Allianz and People’s Choice Credit Union

THE Northern Territory will make $424 million from the sale of TIO.

Chief Minister Adam Giles has announced cabinet’s agreement to sell TIO for $424 million.

THE Northern Territory will make $424 million from the sale of TIO.

The NT News revealed exclusively that Cabinet had approved a deal last night for the Government-backed insurer to be split and sold.

German multinational Allianz will buy the company’s insurance arm, while People’s Choice Credit Union has agreed to purchase TIO’s banking arm.

Chief Minister Adam Giles said the NT Government had turned down an additional $185 million it could have made by selling the Motor Accidents Compensation scheme, which will remain in public hands.

The Government will set up an infrastructure development fund with $215 million from the sale.

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More details of the sale will be published as they become available.

An NT News poll last week found 89 per cent of people were against privatisation. Seven per cent were in favour and four unsure.

The Chief Minister has offered a considerable sweetener. Residents of Rapid Creek and Katherine would benefit from $50 million in flood mitigation work, paid for by money from the TIO sale.

Mr Giles said the work was long overdue, but it would not go ahead unless the insurer was privatised. The flood works would consume about 10 per cent of the estimated $500 million sale price Mr Giles has previously said TIO would attract.

Opposition Leader Delia Lawrie had said the announcement of the flood works amounted to a tacit admission that a sale of TIO would be “disastrous” for Territorians’ ability to secure flood and cyclone cover.

“They shouldn’t sell TIO and they should be funding flood mitigation works from the $33 million a year in funding that has been allocated to the Chief Minister’s department,” she said.