Payout not a 'frivolous bet'

A SPOKESMAN for Launceston developer Josef Chromy has responded to a report of a $250,000 wager between Mr Chromy and fellow Launceston developer Errol Stewart.

Dean Cocker said he was disappointed at how the story of a deal between Mr Chromy and Mr Stewart had been "trivialised and sensationalised".

Mr Cocker said that the contractual agreement for the sale of Mr Chromy's half share in York Cove simply recognised that if the Tamar Valley pulp mill went ahead then the development would be worth more than if it did not go ahead.

"The pulp mill did not go ahead and so the value of York Cove was estimated to be worth $1 million less which meant Mr Chromy's half share was worth $500,000 less," Mr Cocker said.

"The $250,000 reimbursal to Mr Stewart was simply an adjustment payment to reflect the deterioration in the value of York Cove due to the pulp mill not going ahead within two years after the sale.

"Mr Chromy does not make frivolous wagers or bets."