36 Contingent liabilities and contingent assets

Contingent liabilities

The following contingent liabilities are additional to the liabilities included in the financial statements:

Contaminated sites

Under the Contaminated Sites Act 2003, the PTA is required to report known and suspected contaminated sites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifies these sites on the basis of the risk to human health, the environment and environmental values. Where sites are classified as contaminated - remediation required or possibly contaminated - investigation required, the PTA may have a liability in respect of investigation or remediation expenses.

During the year, the PTA reported 4 known or suspected contaminated sites to DEC (a total of 61 sites). Eight sites previously reported have been classified contaminated - remediation required, three sites as contaminated - restricted use, 14 sites as possibly contaminated - investigation required, and three sites as remediated for restricted use. A provision has been recognised to cover the cost of investigation and remediation of the 29 sites. The PTA is unable to assess the outcome of the classification process for the remaining 32 sites, and accordingly, it is not practicable to estimate the potential financial effect or to identify the uncertainties relating to the amount or timing of any outflows. Whilst there is no possibility of reimbursement of any future expenses that may be incurred in the remediation of these sites, the PTA may apply for funding from the Contaminated Sites Management Account to undertake further investigative work or to meet remediation costs that may be required.