2014-11-25
TIO – Sale
Ms LAWRIE to CHIEF MINISTER
You have sold out Territorians. You have refused to listen to Territorians who have told you not to sell TIO. The utter contempt for their views is an affront to democracy. It is a failure to represent the will of the people. Without a mandate, you are selling our public insurer, which provides affordable insurance safety nets to vulnerable households and businesses, to a global insurer that participated in catastrophic market failure in Queensland. There are no legal guarantees for TIO products ongoing. It will not be Territorian as promised; it will be owned by a German global insurer. Why did you put profit before people?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for her question and refute that it is profit before people.
We have put TIO ahead of the game and ahead of future cost of living pressures for TIO. I have explained it publicly many times, but I am happy to do it again as we did in parliament last time.
TIO was facing a change in its risk analysis with its insurance business model. Fundamentally, there would be location-based rather than community-based insurance policy risk analysis. This means places like Katherine – I know the member for Katherine has a significant concern – where 24% of the community is currently in a flood zone – 24% looked like receiving premium increases of up to 200% in May 2015.
People in Rapid Creek, in the member for Johnson’s electorate, were to receive significant insurance premium increases under TIO, potentially making some homes uninsurable in the future, which would completely devalue their houses.
We are also aware of the level of risk government faces in the Northern Territory, particularly with cyclones, with reinsurance only around $700m on TIO’s book balance. It is not fully insured, and we know a significant catastrophic event in the Northern Territory would cost well over $700m. This would mean the NT government would have to foot the bill because it is government guaranteed.
On top of that, government also guarantees and self-insures its own assets such as schools, hospitals, roads, bridges and any other infrastructure the government has. The risk to the government was quite challenging.
Companies competing with TIO on a more competitive basis – around a dozen – are able to provide lower-level premiums in lower-risk areas, which means TIO’s market share in places like Alice Springs, for example, would decrease. However, where they subsidised premiums in place like Katherine and Rapid Creek they would have lower premiums protecting higher-risk areas. This means TIO’s business model was unsustainable in the future.
There has been a range of commentary about TIO’s long-term future. On the information I had, I could not see TIO surviving beyond five to seven years; there was that much of a challenge.
We have now spread that risk by partnering with a global organisation. The largest general insurer is now able to provide a lower level of reinsurance risk by spreading TIO around the world, while at the same time keeping TIO local the way it was yesterday and the day before, and will be tomorrow.
TIO – Guarantees from New Owner
Mr BARRETT to CHIEF MINISTER
Can you please update the Assembly on guarantees provided by the new owners of TIO which should ease concerns about the company’s sale among some insurance customers?
ANSWER
Madam Speaker, I thank the member of Blain for his question. I have spoken to the member for Blain about the situation in his electorate and some of the comments he has received from constituents. Obviously some concerns have been raised with the member for Blain, as well as some positive comments about the direction we are taking.
I answered the last question but will continue with this one in a similar vein, as they are similar.
We told the market and the general public that TIO is emotionally protected by Territorians. It has been around since 1979 – 35 years in the Northern Territory. The organisation provides jobs for 259 people, give or take one or two either way at any point in time. It provides many thousands of policies across the Northern Territory. It is seeing a reduction in market share across the range of products it offers, whether that is workers compensation, or motor vehicle or home and contents insurance. With the market being more competitive these days, its market share was under significant challenge. We wanted to protect the brand, jobs and customers.
Out of this partnership with Allianz, TIO branches will stay TIO forever. Every employee has their job guaranteed, whether they are currently with TIO or transferring to People’s Choice Credit Union. Every policy stays exactly the same. With regard to policies, flood insurance has now been mandated, as opposed to being optional in the past. That is a good outcome.
I understand the emotional issues around TIO, and I have heard the commentary in the public. I have heard the positive and the negative, and fully understand, but it would be negligent of us to do nothing.
This was first raised with the former Labor government in 2002, and in 2006 it was formally raised. Bruce Carter, now the chair, was engaged by the former government to produce a report and make recommendations. He recommended that TIO go to the private market to protect it at that point in time …
Ms Lawrie: We did not agree.
Mr GILES: You said no because you did not want to make a hard decision. Instead, you put him on the board, made him chair and challenged him to sell it. We, as a government, have been presented with these issues and have stood up to the task. It is not easy politically, but to protect TIO and Territorians we had to make a decision.
TIO – Sale
Ms LAWRIE to CHIEF MINISTER
You are arrogantly pushing ahead to sell TIO with no mandate. The public is saying it does not want its TIO sold. You have no mandate …
Madam SPEAKER: Put it down, Opposition Leader.
Ms LAWRIE: … and you were not even honest with the sale price. Your media release lauded a $424m sale price, but that is not the real deal. In fact, $140m of this is a drawdown from the Motor Accidents Compensation Scheme, so it is not a part of the sale price at all. You could have not sold TIO and changed legislation to give effect to a drawdown from MAC.
The sale of TIO has yielded $275m, taking into account the $9m in fees your government will pay. Why can you not be honest with Territorians? If it is such a good deal, why did you inflate the price with a $130m drawdown?
ANSWER
Madam Speaker, there are two questions there. One is about the front page of today’s paper, ‘RIP TIO’. I am not talking about the NT News, but what the paper says damages the TIO brand. Throughout this debate on TIO there are a number of things we, as a government, have not and will not speak about because is tarnishes the brand, and we have to be very careful not to do that. The front page of today’s paper, in my opinion, tarnishes the important TIO brand and puts loss of faith into people’s minds, when in fact TIO yesterday, and last Friday, is exactly the same as TIO today and tomorrow. It is not ‘Rest in Peace’. In fact, it has been given an injection of new life and opportunity which means TIO can grow.
We will be removing the government guarantee, which means TIO can go across borders. It means where 30% of each premium in the Northern Territory currently goes to reinsurance, it can now move to a model where it is 6% or 8%, putting downward pressures on price premiums ...
Ms Lawrie: Hike up insurance premiums.
Mr GILES: You talk about that, Leader of the Opposition, but you have to be fair to Territorians. You know that in May next year, under TIO ownership, prices have the potential to increase by 200% ...
Ms Lawrie: Under your policy.
Mr GILES: This is under TIO’s current model from its board. These changes present an opportunity to keep them lower.
In regard to the pricing structure, we engaged a financial consultant – which is part of the expense – named Nomura. It estimated of the three products provided, insurance, banking and finance …
Ms LAWRIE: A point of order, Madam Speaker! Standing Order 113: relevance. Why could you not be straight with Territorians? Why did you inflate the sale price by $140m?
Madam SPEAKER: That is not a point of order. Sit down.
Mr GILES: Nomura estimated on the insurance, the banking and finance, and the MAC Scheme, the value – to be specific – was $609m for the three assets if we sold them now. Many jurisdictions around the country have sold their motor accidents compensation scheme. The South Australian Labor government right now is selling its MAC scheme. We agreed as a Cabinet not to sell the MAC Scheme. We did not know how that would operate so we thought it was best to keep it.
You could say the government has sold two-thirds and kept one-third ownership, including the TIO building ...
Ms LAWRIE: A point of order, Madam Speaker! Standing Order 113: relevance. With 15 seconds to go, why did you inflate the sale price by $140m?
Madam SPEAKER: Opposition Leader, that is not a point of order. Sit down!
Mr GILES: If you break it down it is $236m for insurance, $48m for banking and finance and $140m for an overcapitalised MAC Scheme. If we sold the other part of the MAC Scheme we estimate the total cost would have been a little more ...
Madam SPEAKER: Chief Minister, your time has expired.
TIO – Banking Transfer to People’s Choice Credit Union
Mr BARRETT to CHIEF MINISTER
Could you please update the Assembly on the good news for TIO home loan customers when the banking business is transferred to People’s Choice Credit Union?
ANSWER
Madam Speaker, I thank the member for Blain for his question. I am sure he knows People’s Choice Credit Union currently provides services to more than 33 000 Territorians. It is a great Territory asset which has been around for many a long year. It changed its name, changed its incorporation and so forth through different ownership, but still provides a great service to Territorians.
It is taking on board the banking and finance model of TIO with the passage of legislation. I was very pleased to read an announcement this morning from the People’s Choice Credit Union about interest rates under the new arrangements. This morning People’s Choice confirmed the vast majority of TIO customers will be better off as a result of the transaction. Let me quote People’s Choice’s Managing Director, Peter Evers who said:
- Cost of living pressures can be acute, which is why we have introduced a range of measures to ensure that all TIO Bank’s home lending customers and investors will be better off, and that the majority of transactions and credit card customers will save money ...
Running through some of the banking benefits, TIO customers on a variable home loan rate will receive lower interest rates and/or lower ongoing fees, and TIO banking customers who are currently on a fixed rate home loan will revert to the lower People’s Choice pricing at maturity, meaning an average saving of 0.1% compared to TIO’s current rates. That is a huge bonus from this new ownership arrangement and will help ease cost of living pressures for those customers. I am sure the member for Katherine knows there are 100 or so people in Katherine who have a home loan through TIO right now. Also, credit card customers will enjoy a lower interest rate, more interest free days and may qualify for annual fees to be waived. That is all great news.
I take the opportunity to again reassure TIO banking customers that besides the drop in the interest rate early next year, nothing changes. I have full confidence in People’s Choice, a company that has been doing business in the Territory for more than 40 years, boasting 33 000 NT customers. People’s Choice has also promised to provide a new banking service in Coolalinga – in your electorate, Madam Speaker – within two years; maintain banking services at Maningrida in the member for Arafura’s electorate, increase its significant community support in the Northern Territory, which already exceeds $230 000 a year to more than 50 community groups; and sponsor three young Territorians in traineeships each year. They are great Territory corporate citizens and TIO customers will be in great hands.
Madam Speaker, I table a copy of this morning’s People’s Choice Credit Union interest rate announcement.
TIO – Sale
Mr McCARTHY to CHIEF MINISTER
This year’s TIO annual report records operational profitability for the past five years at $305m but you have sold TIO for $275m, which is less than the last five years operating profit. On ABC radio on 8 October TIO CEO, Richard Harding said TIO was in a very sound financial position.
Chief Minister, your government took a $10m dividend payment from TIO this year so why are you selling Territorians’ profitable asset that underpins the significant insurance needs of Territorians affected by flood, storm surge and cyclones?
Chief Minister, why are you selling this Territory asset at a rock bottom, bargain basement price of $275m?
ANSWER
Madam Speaker, I recently asked Cabinet, the parliamentary wing and staff in my office what Labor would do. The first thing would be target the price and say it has been sold for bottom dollar. You have gone there in your third question.
However, it is important to look at the last 35 years of TIO if you want to be fair. Look at 2002 when the bank was against the wall and a $20m injection had to go in, from government, to prop up the insurance component of the business. Look at the capital injections that have gone in from government to prop up TIO for the last 35 years. Yes, there was a $10m dividend last year, I am not disputing that, but with all the dividends provided by TIO against all the government contributions to subsidise premiums and the business over the last 35 years, you will see government has been propping up a private business for many a long year.
We were advised early in 2013 that we were moving to an uncompetitive model; it was happening then. We had advice between the start of 2013 to early this year, and Cabinet had to consider the information and make a decision. We have now made a decision. It would be easy to cruise until Christmas and do nothing, but we have taken the tough decision to provide protection for TIO customers, taxpayers and constituents …
Mr McCARTHY: A point of order, Madam Speaker! Standing Order 113: relevance. Is that why the Chief Minister sold our TIO cheap?
Madam SPEAKER: There is no point or order, member for Barkly. Member for Barkly, you are on a warning. I have warned members before about the misuse of standing orders. Chief Minister, you have the call.
Mr GILES: I am happy to give you the advice from financial and other consultants we have used on the value of TIO and the sale cost we achieved. We went through a probity process to make sure we received advice that the offers were right, fair market value and so forth. A range of offers came in and we have taken that advice and believe it to be fair market value. I have explained what the fair market value was in regard to the $609m, the breakdown and those costs, and I am happy to explain that again.
Madam SPEAKER: Chief Minister, you time has expired.
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Visitors
Visitors
Madam SPEAKER: Honourable members, I advise of the presence in the gallery of another Year 10 class from Palmerston Senior College, accompanied by Daniel Kubski, Charmain Scoggins, Vanessa Cuttriss, Peter Blundell and Beverly Crawford. On behalf of honourable members, welcome to Parliament House.
Madam SPEAKER: Hear, hear!
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China – Free Trade Agreement
Benefits to the Territory
Benefits to the Territory
Mr TOLLNER to CHIEF MINISTER
Recently the Australian Prime Minister, Tony Abbott, and China’s President Xi Jinping announced a free trade deal between Australia and China. Many commentators have labelled this deal visionary, and many have said it is the biggest economic decision that will weigh on Australia since Paul Keating floated the dollar and deregulated the banking industry. Can you outline what benefits this deal will present for Territory businesses, and how the will deal assist in developing north Australia?
ANSWER
Madam Speaker, I thank the member for Fong Lim for his question. He rang me salivating after the speech made by the Australian Prime Minister and China’s President regarding the free trade agreement and what it means for the Northern Territory and northern Australia. He knows – as does Cabinet and the parliamentary wing – we are all passionate supporters of northern Australia and we all want to see job growth and prosperity for everybody.
The FTA complements the other negotiated agreements around at the moment, most notably the recent Japanese FTA, and it recognises the work going on with the TPP, the Trans-Pacific Partnership Agreement, but says China wants to be a partner with northern Australia.
It was specifically outlined in the speech and recognised that northern Australia was the growth area of Australia. It recognises the importance of the Northern Territory in leading the northern Australia debate. What that means for us, in regard to the question, business, and jobs, is there will be business and job growth so our kids and grandkids can have a future in the Northern Territory.
A range of things were raised in the FTA and I will go through a couple of them. It included, in benefits for the Northern Territory at this stage but this is not an exhaustive list: removal of tariffs of 12% to 25% on beef over the next nine years; removal of tariffs on live animal exports of 10% within four years; removal of tariffs on all horticultural products ranging up to 30%, most within four years; removal of tariffs on seafood over four years; and removal of tariffs of 5% to 14% on hides, skins and leather over two to seven years.
This is an opportunity for business development in the Northern Territory, not just in our urban areas, but our regional and remote areas. It means there will be business investment coming from China and partnerships with business in the Northern Territory and in northern Australia. It will mean the creation of jobs, a greater level of diversity and it will be working with our partners, friends and neighbours in China and Asia. This is the growth part of the world, and there is no time like the present to be forming partnerships with countries such as China.
I say to the Prime Minister of Australia and the President of China, well done. Congratulations from the Country Liberals government of the Northern Territory. This is visionary and provides a level of investment we keep talking about so we have an economic future for the Northern Territory.
TIO – Public Representation
Ms FYLES to CHIEF MINISTER
Your arrogance is on display. Against strong public sentiment you are pushing ahead with the fire sale of TIO. The NT News front page today reflects the betrayal Territorians feel. Over 4300 Territorians have signed a petition in about two weeks, 300 people a day, Chief Minister, but you have ignored them. We polled in eight CLP-held seats and the response was staggering: 80% opposition to the sale. You ignored them. The NT News had over 90% opposition to the sale and you ignored them. The Mix 104.9 poll had over 80% opposition, but you ignored it.
How can Territorians trust anything you say when it is clear you do not listen to the people you were elected to represent? Why will you not listen to Territorians?
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. There is an important point in the question about how we listen and the message that has come from it.
Yes, we know many people see this as unpopular. Yes, we know the message is coming from a vast number of areas in the Northern Territory – electorates, media outlets and so forth. Do you think we would be making this decision if it was just a popularity contest, or do you think we have had to analyse everything to do with TIO? The market conditions in insurance, the future opportunities for TIO and the increases coming for customers – we have taken this seriously.
When you come to government you have to make decisions in the best interests of Territorians. If it was that simple to do nothing we would be happy to sit on our hands. Do you think we want a political fight? No, but we want to make the decisions necessary to protect TIO. I have said to colleagues on this side that there is a lot of public commentary. People are not happy with this change, I understand that. That is not missed, but I have said to people on this side of the Chamber – and we all agree – we are not taking a backward step and rolling our shoulders ...
Ms Fyles: Take it to a committee
Ms Lawrie interjecting.
Mr GILES: Would you listen? If you ask a question I will give you an answer. I have told people on this side of the Chamber not to take a backward step. We are doing the right thing for TIO and the Northern Territory. We are putting money into Katherine for flood immunity – $25m, which has never been done. If we did not do this Katherine would still flood. We will put $25m into Rapid Creek, otherwise Rapid Creek would still suffer from storm surge, still flood and still have the run-off from the airport.
The real challenge now is for the member for Johnston – who will have $25m spent around Rapid Creek – as to whether he supports this work. In the former government he was an adviser to a senior Cabinet minister who had the opportunity to fix Rapid Creek and did nothing. He sat back, as did the former Labor government. We are acting and putting $25m into Rapid Creek to help residents, particularly the 68, but also the people who cannot get to RDH in times of a cyclone, flood or storm surge. We are putting the investment in. This is not a fire sale; this is protection for all Territorians.
Madam SPEAKER: Chief Minister, you time has expired.
RU486 and Medical Services Act
Mrs FINOCCHIARO to MINISTER for HEALTH
Recently there has been a lot of discussion around women’s health, RU486 and the Medical Services Act. Can you please advise the House on the government’s position on these issues?
ANSWER
Madam Speaker …
Ms Walker: Tell us why you were not at the forum yesterday, Robyn.
Mrs LAMBLEY: … I thank the member …
Madam SPEAKER: Minister, please pause. Member for Nhulunbuy, I spoke at the last sittings about yelling across the floor, which is very unparliamentary. You are on a warning. Minister for Health, you have the call.
Mrs LAMBLEY: … for Drysdale for her question; she is a great advocate for women’s health. There has been a lot of discussion in the media of late around the use of the termination of pregnancy drug RU486. I would like to clarify some issues for the people of the Northern Territory.
This topic is highly controversial and divides people. Not everyone agrees with the means of terminating pregnancies. Our parliamentary wing is somewhat divided around the right to life lobby versus the right for women to have a choice.
We will be presiding over legislative changes to the Medical Services Act pertaining to termination of pregnancies. I will clarify today that the drug RU486, which stimulates the termination of a pregnancy, is technically legal in the Northern Territory.
In the Territory we have very strict laws around the practice of terminating pregnancies, and we are restricted to only carry out terminations of pregnancies within designated hospitals. Therefore, the drug RU486, which has very strict criteria around its use, is limited to use within a hospital. If a doctor is qualified and trained in the use of RU486, their only option is to admit the patient into a designated hospital and keep her there until the doctor is satisfied the termination of her pregnancy has been completed. This is not ideal.
Legislation has been in place in the Northern Territory for approximately 20 years legalising abortion. The former Labor government, in 11 years, did not amend that legislation, so I find it rather hypocritical that members of the Labor opposition cast judgment and put pressure on me to amend this highly controversial legislation. We will be discussing amendments to the Medical Services Act around termination of pregnancies in the Northern Territory because it requires updating. However, we will not be pressured; we will do it in our own time and make sure it becomes a contemporary piece of legislation.
TIO – Sale
Mr WOOD to CHIEF MINISTER
You said today TIO will be in good condition for the next five years or more, something mentioned in this annual report. If that is the case, what is the hurry to sell TIO? Why did you not take time, if you believe you had a good case to sell TIO, to have a two-way conversation with the people who own TIO, rather than tell people what the government has decided? Is the strong public objection to the selling of TIO not proof there has not been proper consultation?
ANSWER
Madam Speaker, I thank the member for Nelson for his question. It is not rushed. TIO has been a matter of public debate since about 2002, when it was in dire financial circumstances. The former …
Ms Lawrie interjecting.
Madam SPEAKER: Order!
Mr GILES: The Leader of the Opposition would know the challenges it faced when she was Treasurer and the shareholding minister of TIO. I said before that every Treasurer and Chief Minister has been given advice about the challenges TIO faces. It has been a matter of public debate for a number of years; the level of debate has gone up and down. I explained before that in February 2013 we were presented with the challenges, and we have looked at the whole process.
In the last few months we have raised the level of debate to the utmost extreme. During the October parliamentary sittings we made sure we spoke about TIO every day. Since then we have spoken about it trying to get as much information out as possible. The traditional rule of politics is to talk about three messages – keep running three messages and you will convince people. We did not go for that approach. We have tried to provide every bit, and it is a confusing message, I do not doubt that.
We talked about the risk in Katherine, the risk in Rapid Creek, the 68 homes and the 25 which are more concerning, the storm surge, retention ponds, all of it. I have spoken at length about that, and it is a significantly concerning message. When you talk about reinsurance, how it works on a global market and how it is becoming localised, it is a challenge. We have been trying to talk about that.
The message has been mixed, diluted and has not been core with the three messages …
Mr Wood interjecting.
Mr GILES: … because we did not run a political message, member for Nelson.
We have been trying to consult as much as possible and have heard the community feedback. We have had meetings with the Motor Trades Association, and I know you have spent time with the MTA. The Chamber of Commerce said it surveyed members. We said to the Chamber of Commerce, ‘Let’s look at how many people in the Chamber of Commerce, as members, insure with TIO’. The level of support for TIO versus the number of people with policies is not the same. Approximately 15% of businesses in the Northern Territory have workers compensation with TIO. It was 100% in 1979 when TIO first started, which is why it started. Now it is 15%, so 85% of businesses are going elsewhere. The competitive issue is a challenge. That stark statistic shows the challenges TIO faces.
This was not a rushed process; it has been around for years. We have tried to get as much information out as possible, and to consult with as many people as possible. If you have another question I am happy to provide further information about the speediness of the process at the end ...
Madam SPEAKER: Chief Minister, your time has expired.
Chief Minister’s Awards for Excellence in the Public Sector
Mr KURRUPUWU to CHIEF MINISTER
Can you update the Assembly on the Chief Minister’s Awards for Excellence in the Public Sector and the recent positive announcement by the government on working conditions for public servants? How have the awards and the reform package been received?
ANSWER
Madam Speaker, I think the member for Arafura has an ulterior motive in asking that question because he knows the Tiwi Islands project around economic reform on the Tiwi Islands was one of the winners of a public service award recently. It was not won by the Tiwi Islands; it was won by certain members across a range of government departments who are working together, whether it be DCM, Land Resource Management, Lands and Planning, the work Transport is doing or building the barge landings on the Tiwi Islands.
It is all about economic reform, and the member for Arafura supports economic reform and getting jobs for Tiwi Islanders. I know he is excited, but we are all excited on this side of the Chamber.
The public service awards are a good thing to attend. I went last year, when they were held at the Holiday Inn on the Esplanade in a smaller room. There were probably about 150 people, and I was amazed with the awards themselves and thought they were a good opportunity for government to say thank you to public servants for the hard work they do.
In my opinion they were not big enough, not recognised enough, so we expanded them this year. We had 600 people attend the public service awards and had to turn 150 people away. It was a fantastic night. Across nine awards categories we recognised the hard work of the public service.
We also had an opportunity to announce some reforms to the public service, and I will run through a few. The changes we announced included provision for more flexible work hours so staff can negotiate to start and finish early or start and finish late depending on their personal circumstances; the ability for non-essential staff to accrue leave over the Christmas shutdown period – which will start next year – from 25 December to 1 January, bringing the Territory in line with other jurisdictions across the country; new training guarantees for public servants at the A02 to A05 level to assist employees with their professional development; the ability for staff to have their HECS fees reimbursed if they study an Asian language as part of our commitment to north Australia development; and simplification of the recruitment process to make it easier to apply for government jobs. They are some of the announcements made, which were warmly welcomed by public servants on the night and have been warmly welcomed by many across the public service to date.
I understand the public sector union is a firm supporter of the work we have done. It has said, ‘Thanks very much. It is amazing Labor was in government for eleven-and-a-half years and didn’t bring some of these reforms in.’
We are mindful of the level of work many in the public service are doing to support the north, the hard work they have done on TIO and a range of other things to reform the agenda and support development of the Northern Territory into the future.
I say thank you and I look forward to announcing more reforms in the future.
Madam SPEAKER: Chief Minister, your time has expired.
TIO – Sale
Ms LAWRIE to CHIEF MINISTER
Against overwhelming public sentiment you are pushing ahead with your arrogant and foolish plan to sell TIO. Pivot North made recommendations for the development of northern Australia which lauded the TIO model as a public insurer. Yet, deceitfully, you based your case on risk when TIO is a sound and profitable business. You had no mandate to sell, failed to consult with Territorians, then you lied about the sale price …
Madam SPEAKER: Opposition Leader, please withdraw that.
SUSPENSION OF STANDING ORDERS
Move Motion of Censure
Move Motion of Censure
Ms LAWRIE (Opposition Leader): Madam Speaker, I move that so much of standing orders be suspended as would prevent this Assembly censuring the Chief Minister for failing to obtain a mandate from Territorians to support the sale of TIO.
Mr ELFERINK (Leader of Government Business): Madam Speaker, the government will not be accepting this censure motion. We can go back to Question Time.
Madam SPEAKER: Honourable members, the government, under Standing Order 95, has declined to accept the censure. Opposition Leader, are you asking that there be debate on the motion to suspend the standing orders?
Ms LAWRIE: Yes. Speaking to my call to suspend standing orders …
Mr ELFERINK: I move that the motion be put, Madam Speaker.
Ms LAWRIE: I am seeking clarification; can you gag on a suspension motion?
Madam SPEAKER: Yes.
The Assembly divided:
- Ayes 13 Noes 10
- Mr Barrett Ms Anderson
Mr Chandler Ms Fyles
Mr Conlan Mr Gunner
Mr Elferink Ms Lawrie
Mrs Finocchiaro Ms Lee
Mr Giles Mr McCarthy
Mr Higgins Ms Manison
Mr Kurrupuwu Ms Moss
Mrs Lambley Mr Vowles
Mrs Price Ms Walker
Mr Styles
Mr Tollner
Mr Westra van Holthe
Motion agreed to.
Madam SPEAKER: The question is that so much of standing orders be suspended as would prevent this House from censuring the government.
The Assembly divided:
Ayes 11 Noes 13
Ms Anderson Mr Barrett
Ms Fyles Mr Chandler
Mr Gunner Mr Conlan
Ms Lawrie Mr Elferink
Ms Lee Mrs Finocchiaro
Mr McCarthy Mr Giles
Ms Manison Mr Higgins
Ms Moss Mr Kurrupuwu
Mr Vowles Mrs Lambley
Ms Walker Mrs Price
Mr Wood Mr Styles
Mr Tollner
Mr Westra van Holthe
Exports
Mr HIGGINS to MINISTER for PRIMARY INDUSTRY and FISHERIES
Can you update the House on recent developments across your portfolio that will boost Territory exports?
ANSWER
Madam Speaker, I thank the member for Daly for his question. He is a strong advocate for the primary industry sector across the Northern Territory, and I enjoy his support, as does the industry. I join in the Chief Minister’s call to congratulate our Prime Minister, Tony Abbott, and Chinese President Xi Jinping on reaching an historic free trade agreement which was recently signed between our two countries. This is an historic step in advancing opportunities for Australia and the Territory’s agriculture, food, fisheries, forestry, mining and energy sectors.
I point out that our major competitors, like the United States and the European Union, do not have free trade agreements with China. This free trade agreement gives Australia and the Territory a massive advantage in selling our products to the world’s largest economy. Currently Australia exports approximately $9bn worth of agricultural products to China with tariffs of up to 30%. The Territory’s share of that is relatively minor, but I assure you my aim is to grow that.
However, this agreement will eliminate tariffs on many key products, mostly within four to eight years, including beef, hides and skin, livestock and seafood, and there are also notable improvements for horticulture. These are areas of development for the Northern Territory economy. The beef trade to China may take a while to be fully established, but when it is it has the potential to be extremely lucrative for our pastoral industry. Furthermore, in regard to horticulture, the free trade agreement with China is a boost for Ti Tree’s mango winemaker.
The federal government says Australian mango wine exporters currently face a Chinese import tariff of up to 40%. Following the signing of the FTA with China, Australian mango winemakers will see tariffs disappear over four years, which is fantastic news for that small Territory industry. This means costs can come down and more products can be sold.
While I am talking about mangos, I advise the House that it was great to have the federal Minister for Agriculture in the Territory last week. Together we unveiled the mango industry export plan, which will see mango exports increase by 100% over the next three years. Australia currently exports between 4000 and 5000 tonnes of mangoes. Under the new export plan this will increase to between 8000 and 10 000 tonnes by the 2016-17 mango season.
This free trade agreement between Australia and China is not only historic, it will bring with it for years to come significant benefits to the Northern Territory’s agricultural sector. While this government has the reins, we will work to make sure our agricultural industries benefit as much as they can ...
Madam SPEAKER: Minister, your time has expired.
TIO – Sale
Ms LEE to CHIEF MINISTER
Can you explain to Territorians why it was necessary to sell TIO against the wishes of the people of the Northern Territory? Are you confident this is the right way to do it?
ANSWER
Madam Speaker, I thank the member for Arnhem for her question. I have probably gone over most of these things already. I am happy to go over them again, but I do not want to be repetitive.
Yes, I am sure this is the right way to do it. A better way to do it would have been if Labor had received a briefing and understood the full implications TIO faced into the future. The member for Nelson received a briefing, knew a little about it and has a broader understanding of the business model TIO faces.
After all the huff and puff by the Leader of the Opposition and her merry men and women on that side of the Chamber, not once did they receive a briefing. At a media conference yesterday I said Labor had not received a briefing. For all their bravado, they did not have a briefing. Lo and behold, I went from the media conference to my office and spoke to my Chief of Staff, who said, ‘Delia’s office just rang, they want a briefing’. I said, ‘Oh hello!’ You would think the first thing the opposition – whoever your Treasury spokesperson is – would do is say, ‘Can you give me detail? How many policies, where are they, what is the risk rating, what is the reinsurance, where is the flood mitigation, how will you spend the proceeds, who are the partners, how many people applied for it, how many people were interested in the banking side of it, why did you not sell MAC?’ There was nothing.
Member for Arnhem, yes, there could have been a better way. You could have had a briefing. Any one of the opposition could have had a briefing. We could have stood united and fought for the future of TIO. Now we have 14 members of this Chamber …
Ms LEE: A point of order, Madam Speaker! Standing Order 113: relevance. There was an urgent meeting on Sunday where you passed a resolution. How can we get a briefing on a Monday?
Madam SPEAKER: It is not a point of order.
Mr GILES: We work on Mondays.
Ms Lee: So do we.
Mr GILES: You could have had a briefing yesterday, or on Friday or Saturday. We work seven days on this side of the Chamber, including Mondays. You could have had a briefing at any point in time. This has been up hill and down dale. I understand there is a level of community concern; however, as a Territory representative in a democracy I thought you would seek information on issues.
You did not seek any information and that is embarrassing. It is a reflection on you as individuals – happy to scream in the media but not prepared to make a phone call to say, ‘Chief, we know you have concerns. I do not agree, but can you give us a briefing?’ There was nothing.
The best thing would be if we all stood together and fought for TIO’s future, not just 14 members on this side of the Chamber ...
Madam SPEAKER: Chief Minister, your time has expired.
Infrastructure – Government Contribution
Mr KURRUPUWU to MINISTER for INFRASTRUCTURE
Can the minister update the House on how the Giles government has contributed to the ongoing development of the Northern Territory, especially in the last six months?
ANSWER
Madam Speaker, I thank the member for Arafura for his question. The member is very interested in what is happening in infrastructure, especially with regard to economic development on the Tiwi Islands. I congratulate the people on the Tiwi Islands who won public service awards for developing the Tiwi Islands.
I know the opposition does not like good news, but here comes more good news from the government. The people of the Northern Territory deserve a strong economy, and that is exactly why the Giles government is committed to delivering projects that will contribute to building the economy and take us into the future.
The Northern Territory government has awarded more than $268m in contracts over the past six months to build essential infrastructure in the Territory. More than 96% of our contracts have been awarded to local Territory companies in the past six months, providing more job opportunities for Territorians.
Also, $88m for the duplication of Tiger Brennan Drive and $37m towards police infrastructure in urban and remote locations are examples of contracts awarded to maintain and develop our vital infrastructure assets.
I advise the House that some of the projects under way include: $14.2m on Alpara and Yuendumu multipurpose police stations, in partnership with the Australian government; $22.1m for Royal Darwin Hospital’s expansion of the short-stay unit and operating theatres; $9m for a new police station in Alice Springs; $4.6m for expansion of Larrakeyah, Durack, Darwin Middle and Palmerston schools – more money going into education; $44.3m to the Darwin/Humpty Doo land development Zuccoli southern connector road and bridges – tenders for that are closed; Zuccoli west sewerage pump station and rising mains – tenders are closed with more work going to Territory families; $4.5m for the Victoria Highway bicentennial and Stuart Highway bicentennial road upgrades; $2m to Wurrumiyanga barge landing, another great advantage for development of the Tiwi Islands; and $1.5m for the Uluru road upgrade and seal.
Developing and building essential infrastructure for Territorians is part of this government’s plan to provide economic benefits and jobs in communities. The Giles government has a plan for growth and development of the Northern Territory. As a result of the sale of TIO we will see – which is saving TIO and of great benefit to the Territory – the infrastructure fund, another fantastic thing for the future of the Northern Territory. Infrastructure, roads and bridges are the economic enablers which will take the Territory forward and benefit all Territorians, including those sitting opposite.
Mr ELFERINK (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
Last updated: 09 Aug 2016