35 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 one additional known or suspected contaminated site to DEC. The additional site has been classified as report not substantiated. The PTA is unable to assess the outcome of the classification process 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.
Litigation in progress
A third party has commenced one Supreme Court action against the PTA relating to a claim to provide a Railway Crossing pursuant to Section 102 of the Public Works Act. The PTA has denied all liability and is defending the action. It is not possible to estimate the amount of any eventual payments in relation to this claim at balance sheet date.