2012-05-01
QUESTIONS – Tuesday 1 May 2012
STATEMENT BY SPEAKER
Adherence to Standing Orders
Madam SPEAKER: Honourable members, I remind you of the advice I gave in the previous sittings relating to members observing standing orders which relate to questions. Those matters are still in force today.
Mr MILLS to CHIEF MINISTER
In the last budget, your government said the deficit would be $387m but it has turned out to be $491m. That is a $104m increase. How could your government make such a big mistake of a $104m increase in just one year?
ANSWER
Madam Speaker, it is obvious the Leader of the Opposition was not listening to the budget speech presented by the Treasurer at 11 am this morning. There is a very simple answer to that question. Since the budget was handed down last year, there has been a $3.1bn contraction in the GST pool. Without the hindsight of a crystal ball we could not project what was going to happen to the GST pool over the 12 months since the last budget was handed down, we took a responsible decision, as a government, to protect jobs and businesses. We did this in light of the Territory approaching the most significant growth phase in its history, maintaining the capacity of businesses, and keeping jobs for Territorians in the Territory.
We could easily have returned the budget to surplus for the sake of a cheap political headline. By slashing the capital works budget by 40% we could have had no deficit this year. We have not done that because we respect the 1000 Territorians who would have lost their jobs and the dozens of businesses across the Territory that would have gone out of business if we had taken the artificial path to a surplus.
The deficit is responsible. It is about ensuring the Territory has the capacity to capitalise on the fantastic array of projects coming to the Northern Territory. It is about ensuring our businesses have the capacity to step up to the plate, to accommodate the opportunities coming, and to ensure we keep the workforce in the Northern Territory - the tradies were not losing their jobs and going down south, which would have made it even harder to bring them back to the Northern Territory.
The real challenge for the Opposition Leader tomorrow is to explain to Territorians how he would deliver a surplus. There are only two ways to deliver a surplus, Leader of the Opposition, or a combination of two. One is to slash spending; the other is to increase taxes. There is no magic pudding to bring the budget back into surplus. The challenge for you tomorrow, Leader of the Opposition, with your credibility on the line, is to explain to Territorians how you would bring the budget back to surplus without throwing people on to dole queues or increasing taxes.
Ms SCRYMGOUR to TREASURER
Can you please update the House on the key features of Budget 2012-13?
ANSWER
Madam Speaker, I thank the member for Arafura for her question. Budget 2012-13 is absolutely about …
Mr ELFERINK: A point of order, Madam Speaker! Surely this would qualify as anticipation of debate?
Madam SPEAKER: That is a frivolous point of order, member for Port Darwin ...
Mr Elferink: It is not, Madam Speaker, it is …
Madam SPEAKER: I ask you to withdraw from the Chamber for one hour pursuant to Standing Order 240A.
Mr Elferink: You are joking?
Members interjecting.
Madam SPEAKER: Order!
Mr ELFERINK: A point of order, Madam Speaker! It was a legitimate point of order.
Madam SPEAKER: Order! Are you going to leave the Chamber, member for Port Darwin?
Mr Elferink: I can tell you, Madam Speaker, that close.
Ms LAWRIE: Thank you, Madam Speaker. It is no surprise to Territorians that government is asked questions on the budget every single Question Time on …
Mr Tollner: That is disgusting.
Ms LAWRIE: … every single budget day, and that has occurred …
Madam SPEAKER: You are on a warning, member for Fong Lim!
Ms LAWRIE: … for every budget in the Territory’s history.
Budget 2012-13 is gearing up for growth and supporting Territory families. With the Territory entering the most significant phase of economic growth in its history, Budget 2012-13 is focused by ensuring all Territorians can benefit from that growth. Budget 2012-13 delivers more housing and land release, boosts our health system, hospitals, better schools and better roads. It delivers a strong $1.3bn infrastructure spend to support 2600 jobs in a managed step-down of our infrastructure spend as those major projects and private investment ramp up.
There are no new taxes and no land tax. We retain our record of being the lowest taxing jurisdiction for small- and medium-sized enterprises in the nation - a record we are proud of. It delivers the best homebuyer assistance package in the nation, with BuildBonus, HOMESTART NT and continued stamp duty concessions. It maintains generous concessions and subsidies to support Territory families.
Importantly, there is a $433m infrastructure spend for our remote communities to support our policy of A Working Future, and a $50m three-year jobs package in our shires. There is $539m for housing, including fast-tracked land release, and $75m for new and upgraded urban public housing.
It delivers record funding for education and health to improve services and respond to demand in growth.
There is a record police budget, with more than 400 extra police on the beat funded by the Henderson government. It continues our effort to tackle alcohol-related crime, to improve child protection services, and our all-important new era in Corrections.
It is a tight but responsible budget; a deliberate decision to go into deficit to support Territory jobs and keep Territory business doors open to gear them up for the growth with the very bright economic future we have after securing the Ichthys project.
Mr MILLS to CHIEF MINISTER
If you take all government’s debts and liabilities projected for 2015–16, under your management every Territorian - man, woman and child - will owe $35 000. To put it into something concrete, the equivalent value of your debt is a Holden Commodore for every Territorian. Can you advise the date Territorians will finish paying for the car they did not buy and cannot drive?
ANSWER
Madam Speaker, I will put the Leader of the Opposition straight. The government owns the debt and the debt is affordable and responsible. The debt is keeping people in work and keeping businesses open at a time where the global financial crisis has seen banks tighten up lending and not fund business and development growth.
Let us put this into context. The budget this year is worth $5.3bn. In this context, the deficits are manageable. Our debt servicing costs are predicted to remain at below 8% of revenue over the forward estimates.
Virtually every Territory household has a level of debt. Most Territory households would have a mortgage, most Territorians would have credit cards, and it is totally appropriate if you have the capacity to repay that debt, and the Territory government does. We are about to enter the most significant period of economic growth in this Territory’s history as a result of our government’s head-on approach to securing the Ichthys project for the Northern Territory, the positioning of Darwin as the service and supply capital for the gas industry in the Northern Territory and, working with our federal colleagues, to see more money going into remote parts of the Northern Territory than ever before. This debt is responsible; it is keeping people in jobs and keeping the Territory moving ahead.
Tomorrow the Opposition Leader has his opportunity to explain to Territorians how many thousands of jobs will be lost to the Territory economy, or what tax increases he would impose on Territorians in pursuit of a surplus for a headline only, not any economic imperative for the Northern Territory. I will quote Bernie Fraser, previous head of the Reserve Bank, who said:
We have responsibilities to have great hospitals, to have clinical specialists and nurses, teachers in our schools, police officers across the Northern Territory keeping people safe, and to build infrastructure across the Northern Territory like the Marine Supply Base which will leverage private sector investment.
A pursuit of a surplus at this time for a political headline would have seen thousands of Territorians lose their jobs and dozens of Territory businesses close their doors. This is a responsible budget and it delivers for Territorians.
Ms WALKER to CHIEF MINISTER
How does Budget 2012-13 deliver for Territory families?
Mr TOLLNER: A point of order, Madam Speaker! Madam Speaker, I refer you to Standing Order 68, Anticipation of Subject:
Madam Speaker, this subject appears on the Notice Paper and the question should be ruled out of order.
Dr BURNS: Speaking to the point of order, Madam Speaker. The Opposition Leader has been asking questions about the budget and there will probably be further questions. In the 11 years I have been here, certainly on budget day, it is quite in order for questions to be asked on the budget by both sides ...
Mr Tollner: Are you suggesting this was not a frivolous point of order?
A member: It happens in the federal parliament as well.
Mr Tollner: Yes, that is right, but they do not get kicked out of parliament for making points of order like that, especially on budget day …
Members interjecting.
Madam SPEAKER: Order! It is a long-standing practice both here and in the House of Representatives. The Chief Minister has the call.
ANSWER
Madam Speaker, I am very happy to take the question from the member for Nhulunbuy. We are committed to gearing for growth and supporting families. Of course, Territory families are vitally important in building our great Northern Territory, and wherever you live in the Northern Territory this budget supports Territory families. We have worked hard to attract the major projects which will provide Territorians with jobs and families with increased income. Access Economics has said the average growth rate of the Territory is going to be more than 4% over the next five years, providing real jobs and business opportunities for Territorians. We are doing everything we can to position our businesses to take advantage of that growth.
In supporting Territory families, we will continue to provide record spending for core services like health, $1.2bn; education, nearly $1bn - $955m; and a range of concessions and subsidies for Territorians unmatched by other jurisdictions. We will continue to provide Power and Water with $63.1m to subsidise the cost of power and water for Territory families.
Maybe this is where the Leader of the Opposition can find some of his $490m he needs to find tomorrow to bring the budget into surplus. You could save $63m and add $800 to every Territorian’s power bill. That is part of your path back to surplus, Leader of the Opposition ...
Mr Tollner: No, it is not!
Mr HENDERSON: There is $3.3m for our Back to School Payment Scheme of $75 …
Mr TOLLNER: A point of order, Madam Speaker! The Chief Minister was misleading the House and I ask you to ask him to withdraw that.
Ms Lawrie: No, he was not!
Mr TOLLNER: Yes, he was. He is verballing the Leader of the Opposition, Madam Speaker. Surely, he cannot do that?
Madam SPEAKER: Member for Fong Lim, I certainly did not hear that.
Dr BURNS: A point of order, Madam Speaker! He was asking a rhetorical question.
Mr TOLLNER: To sit there and say the Leader of the Opposition is going to – what a load of nonsense.
Madam SPEAKER: Order! The Chief Minister has the call.
Mr Tollner: He makes it up as he goes.
Mr HENDERSON: Madam Speaker, I was pointing out to the Leader of the Opposition where he could find savings in his headlong pursuit to explain in his budget response tomorrow.
There is $3.3m for the Back to School Payment Scheme. I know that $75 for every child going back to school in February is really welcomed by Territorians. There is $6.5m for free school dental care schemes across the Northern Territory assisting our kids and families. There is $4.3m for childcare subsidies. We are the only jurisdiction in this nation to provide subsidies for childcare, and $14.5m for free student, pensioner and senior bus concessions.
Leader of the Opposition, there are opportunities here to do away with all these subsidies and concessions in your headlong pursuit to an artificial surplus, but this government is committed to supporting Territory families and tackling the cost of living - that is what this budget does.
Ms PURICK to TREASURER
In Budget Paper No 2, you announced you will be breaking your promise to remove stamp duty on non-real estate transactions. Why have you broken your promise? Does this mean you cannot be trusted by Territorians when you say you are going to relieve their cost of living burdens?
ANSWER
Madam Speaker, I welcome the question. The stamp duty commitment remains. We have literally deferred it. It is worth $8.7m ...
Members interjecting.
A member: Deferred it to the next term of government.
Madam SPEAKER: Order! Order!
Ms LAWRIE: They are a rabble. You might want to talk to Newman in Queensland; he is doing exactly the same thing. Liberal governments around the nation are doing exactly the same thing.
The final remaining stamp duty concession is worth $8.7m in revenue. If you want to strip it out, I will look forward to that in the budget response tomorrow by the Leader of the Opposition – lost revenue of $8.7m ...
Mr Tollner: You are the one who committed to it.
Madam SPEAKER: Order!
Ms LAWRIE: As I have already pointed out, that was part of a range of stamp duty transactional taxes to be removed as part of the GST coming in agreement. When the GST collections have dropped by $3.1bn in the 2011-12 financial year from projections back in the May federal budget of last year, it is appropriate to hold back that revenue cut. The GST is well below the guaranteed minimum agreement struck between the Commonwealth government and the states and territories at the time we agreed to give up those transactional taxes. We have one remaining transactional tax on stamp duty. It is worth $8.7m in revenue. It is not a handbrake on industry and business, and there has been broad acceptance of the budget today by business and industry - they get it.
You do not give up $8.7m of revenue when your GST revenue collections are down because of the slowness in the national economy, the conservative consumer as a result of the global financial crisis, and now the sovereign debt risk occurring across Europe which is compounding it. You also have the manufacturing sector being impacted upon in the eastern states, which is having a dampening effect on the national recovery.
You do not irresponsibly give up $8.7m in revenue when your GST revenue is down by $3.1bn. We have not moved away from the commitment, we have deferred it. I said in my budget speech that we have deferred it until we reach an appropriate time for the budget to meet that commitment. The commitment remains, we have deferred it. We are not the only jurisdiction to defer it. In fact, I stand to be corrected, but I believe at this stage only Victoria has proceeded with it.
Mr WOOD to MINISTER for PRIMARY INDUSTRY, FISHERIES and RESOURCES
Over the last week or so, it has been announced there may be two agricultural companies vying for the whole of Ord River Stage 2; one wanting to grow sugar and the other cotton. This would mean one company will miss out unless there is more land available. Is there anything in this budget which would expedite Stage 3 - which is in the Northern Territory - of the Ord River development so there would be enough land available for the company which does not get Stage 2?
ANSWER
Madam Speaker, my understanding is the Western Australian government called for expressions of interest from companies, national and international, and four companies are bidding. One company is bidding for the developed area in Western Australia. However, even in Western Australia, the Ord area to be developed first is an infill area from Stage 1, and potentially Stage 2, because there are many issues with Stage 2, such as what kind of industry will develop there, which will dictate the infrastructure to be put in place.
Despite what you might have read in the newspaper, there was no discussion with my department, or the government, from any of the proponents in Western Australia …
Mr MILLS: A point of order, Madam Speaker! I seek clarification. The shadow Treasurer, on your decision, has been asked to leave the Chamber. In looking at the point of order raised by the member for Fong Lim it, effectively, is the same as that raised by the shadow Treasurer which was deemed to be frivolous.
Notwithstanding the judgment was it is long-standing practice that questions related to the budget may continue, I ask for clarification. The shadow Treasurer raised a point of order which was deemed to be frivolous, but another colleague raised the same point of order, prefixing it by a number, and was allowed to have that point of order judged and allowed to remain in the Chamber?
Dr BURNS: Speaking to the point of order, Madam Speaker, the Leader of the Opposition is correct. In contrast to the member for Port Darwin, the member for Fong Lim stated the standing order number, and also waited a little longer for someone to get into the question before he raised a point of order.
Madam Speaker, it was a frivolous point of order.
Members interjecting.
Mr Tollner: That is a good tactic, guys, I love it. Kick out the shadow Treasurer on budget day. That is a new one ...
Madam SPEAKER: Order! Member for Fong Lim!
Having discussed it with the Clerk, I believe the ruling I made in relation to the member for Port Darwin was correct. His attitude towards the Chair, his general behaviour - he knew perfectly well questions are asked every budget in relation to the budget. This has happened for the 11 years I have been in this Chamber, in fact, since self-government. It was a frivolous point of order.
Leader of the Opposition, you had been asking questions about the budget, so he is undermining you as Leader of the Opposition.
My position is it was a frivolous point of order and also showed defiance to the Chair. In addition, when you are asked by the Chair to leave the Chamber you are not allowed to yell as you leave. I was within my rights to ask him to leave because he was not attempting to leave. Leader of the Opposition, it is a frivolous point of order.
Ms PURICK to TREASURER
You announced your department will save $20.6m each year in discretionary costs, particularly in the area of government advertising. If you can save that much on advertising, why will you not stop government advertising before the election in August this year?
Ms Lawrie: Did you say which department?
Madam SPEAKER: I am sorry, which department was it for?
Ms PURICK: To the Treasurer.
Madam SPEAKER: Yes, but which department?
Ms PURICK: All departments, Madam Speaker.
ANSWER
Madam Speaker, I am happy to answer in the broadest possible way because the question was broad. It did not go to the agency …
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: Calm down, member for Fong Lim. I know you are excited.
Mr Tollner: Oh, you drop kick.
Ms SCRYMGOUR: A point of order, Madam Speaker! I ask ...
Madam SPEAKER: Member for Fong Lim, I ask you to withdraw that, please.
Mr TOLLNER: I withdraw.
Madam SPEAKER: Thank you. Treasurer.
Ms LAWRIE: What I assume the member for Goyder is talking about is the efficiency dividend measures in place across government budgets. We make no apology for that. That has achieved cumulative savings of $300m since we put those ramped up measures in place in Budget 2010-11. We also put in place a staffing cap. We have increased the efficiency dividend - I mentioned that in the budget speech - across the agencies to 3%. That will create cumulative savings of about $150m ongoing; we have been upfront about that.
I advised media this morning the way the efficiency dividend applies is most agencies apply it to their travel budgets, their consultancies, using IT for meetings rather than getting on a plane, and really focusing on their corporate services areas, if you like, the backroom areas, not the frontline services of agency budgets. They have met, year-on-year, our requirements for efficiency dividends.
That being said, efficiency dividends do not apply across the board evenly. We quarantine and cut by half the efficiency dividend to those core service areas of health, education and police, and the Corrections part of the Department of Justice, because we recognise they have real staffing ratio issues in service delivery. There is a ratio of nurses to patients, for example; a ratio of teachers to students; equally, a ratio of prisoner officers within the prison system.
Broadly speaking, there is a 3% efficiency dividend in place. Broadly speaking, each agency determines how they meet that efficiency dividend within the agency in consultation with their minister.
As I said, those key service delivery agencies of health, education, police and corrections are quarantined from the full 3% and attract an efficiency dividend of 1.5%. It is about smarter, better government maintaining and improving core service delivery across the Territory, while also being prudent and tightening the belt in tough economic conditions with a dramatic reduction in GST revenue. An amount of $770m has been lost in GST revenue since the global financial crisis hit. We are predicting another $480m loss in GST revenue across the forward estimates. Of course, people expect government to tighten its belt. The most effective and efficient way to do that is through efficiency dividends where departments can generally look at their spending behaviour and patterns. It is largely on travel and consultancies and we make no apology for that.
Mr GUNNER to TREASURER
Can you please update the House on how Budget 2012-13 keeps the Territory gearing up for growth and supporting Territory families?
ANSWER
Madam Speaker, I welcome the question from the member for Fannie Bay. We are gearing up for growth, supporting Territory families, and are forecasting our economy in 2012-13 to grow by 3.9% as we enter the most significant phase of growth in our history. Deloitte Access Economics predicts the Territory will have the second-fastest growing economy over the next five years, averaging 4.4% economic growth.
There is no doubt the 2011-12 year has been turbulent for the global economy. The European debt crisis has been reverberating around the world. While Australian fundamentals are among the best in the developed world, consumer confidence has been rocked. Nationally, private investment has been largely withdrawn and those cautious consumers are changing their spending patterns to spend on GST-free items like health, food and education. Since the start of this GFC, we have lost more than $770m in GST revenue. We are forecasting a further $480m loss in GST revenue across the forward estimates.
An inexperienced government might be spooked by this and make drastic cuts to pursue a surplus. We made a deliberate and responsible decision to support the economy and protect jobs through record infrastructure program spending until private sector investment picks up.
To achieve a surplus, we would have cut infrastructure by 40%, 1000 Territorians would have been unemployed, there would have been a handbrake on our economic growth, and businesses would have closed their doors.
Our continued infrastructure stimulus across our budgets has paid off, with nearly 13 000 jobs created in the Territory since the global financial crisis hit. We have maintained low unemployment. We have kept our skilled workforce in the Territory. There is an article in The Australian today where Tony Abbott is throwing his support behind Coalition-held states - those southern Liberal states are pushing for the GST revenue to be split on a per capita basis. We have Tony Abbott, the Liberal in Canberra, lining up with his Liberal mates, the premiers of the Liberal states, to try to rip $2.4bn out of Territory revenue.
Leader of the Opposition, explain where you are with your mates in Canberra, your Liberal mates, and your mate, Barry O’Farrell, who you brought here to launch your campaign? Do you want to stand by them and see $2.4bn ripped out of Territory revenue …
Mr MILLS: A point of order, Madam Speaker! Though I cannot prefix this by a number, I ask the honourable member direct her comments through the Chair. It is quite intimidating.
Members interjecting.
Madam SPEAKER: Order! Treasurer, can you …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: I call on the Leader of the Opposition to say whether he supports Tony Abbott trying to rip $2.4bn out of Territory revenue.
Mr WOOD to MINISTER for PRIMARY INDUSTRY, FISHERIES and RESOURCES
Following on from my previous question, my understanding after listening to the Country Hour on Monday is there will not be enough land for those companies wanting to grow crops in the Ord Stage 2 area, and it is likely the crops grown will be either GM sugar or GM cotton, as is most cotton grown in Australia. So we do not end up with an Angela Pamela debacle, which occurred in Alice Springs when the government said no to mining after the company started exploring, will you allow agricultural companies to grow GM sugar cane and GM cotton in Ord River Stage 3?
ANSWER
Madam Speaker, there must be a long way to go for Ord Stage 3, because nothing has been done for a long time in the Territory. Let me remind the opposition …
Members interjecting.
Madam SPEAKER: Order!
Mr VATSKALIS: Some of them were probably not here - I was not here when Lake Argyle was built in 1967 and Ord Stage 1 was developed in Western Australia. The CLP came to power in 1978, and until 2001 had done nothing about the Ord in the Territory. There was no negotiation with Indigenous people, no planning - there was nothing. Our government put an observer …
Mr WOOD: A point of order, Madam Speaker! Relevance. I asked whether the government would allow GM sugar cane and GM cotton to be grown in Ord River Stage 3.
Madam SPEAKER: Minister, could you please come to the point.
Mr VATSKALIS: Madam Speaker, as I explained, it is a long way before Ord Stage 3 is developed. The question of whether we allow the growing of GM cotton and GM sugar cane in the Territory is a rhetorical one. It took Western Australia 20 to 30 years to develop the Ord. For me to answer a question about something that might happen or might not happen by any government in 30 years time is unreasonable.
Ms PURICK to TREASURER
In 2001, the ALP government, your government, described the debt to revenue ratio of 61% as unsustainable and reckless. You are now intending to put Territorians into debt at a ratio of 74% of revenue. If 61% in 2001 was unsustainable, how would you describe 74% now?
ANSWER
Madam Speaker, it is great to compare and contrast ...
Members interjecting.
Madam SPEAKER: Order! Member for Arafura!
Ms LAWRIE: Look at how much the economy is growing now. It was flatlining at 0% when the CLP was last in charge; flatlining at 0% economic growth in 2001. We have landed the major project of Ichthys, and we are gearing up our construction sector to be able to deliver the jobs, through the Territory businesses, for that all-important major project as well as our own project which is critical to the economy, the Marine Supply Base, and another big construction project with Territory workers on it right now, the Darwin Correctional facility.
If you look in the out years at the nett debt to revenue ratio of 74% for that 2015-16, if you strip out the loss of $1.2bn in GST revenue - about 30% - the effect would be a 44% nett debt to revenue ratio, not a 74% nett debt to revenue ratio. So, through no action of our own, an effect of the global financial crisis, we have lost 30% across that period into our revenue, which is obviously affecting us.
We delivered eight budget surpluses in a row. We retired $582m in debt. There was no global financial crisis in 2000-01 ...
Mr Mills: There was no GST in 2000.
Ms LAWRIE: I will pick up on that interjection; they said there was no GST either. There was a distribution of money through the Commonwealth Grants Commission. We are under that guaranteed minimum agreement right now. The GST has collapsed; a $3.1bn contraction in the 2011-12 financial year alone. There was no global financial crisis in 2000-01, governments did not have to step up and double the public infrastructure spend to keep people in jobs. If we listen to the opposition, thousands of Territorians would be on the dole queues and businesses would have closed their doors in droves.
Surplus in this environment is irresponsible. The public spend is critical to gearing up for growth. It is critical to ensuring that, whilst revenues are being effective on the one hand, whilst the private sector investment is weak, we sustain Territorians in jobs through that all-important capital spend. We will carefully manage a step-down into deficit, going out to a deficit in 2015-16 of $285m. We will not throw Territorians onto the dole queues because of a political headline for a surplus at any cost.
Ms SCRYMGOUR to MINISTER for PUBLIC and AFFORDABLE HOUSING
Can you please inform the House how Budget 2012-13 is supporting Territory families with continued investment in housing?
ANSWER
Madam Speaker, I thank the member for her question. As a government, we make no apologies whatsoever for investing in gearing up for growth, for investing in supporting Territory families, and land release is one of those. In Budget 2012-13, there is $16m for headworks for the new suburbs of Zuccoli and Johnston. There are 1400 new lots in Zuccoli and 490 new lots in Johnston. In Alice Springs, there is $3.5m to continue developing the suburb of Kilgariff, containing 1200 residential lots in total.
We have also made a commitment that 15% of our land releases will be for social and affordable housing. In that context, we have supported the formation of Venture Housing, an affordable rental housing company in the Territory. As the Treasurer alluded to in her speech earlier today, 35 units at Wirrina are coming on-stream in just a month or so.
We are also investing $50m in 140 affordable units, with rental properties in Johnston, Zuccoli and Maluka Drive, to be rented at 20% below the market value.
Since 2004, there has been a continuation of our support for HOMESTART NT. Fifteen hundred low- to middle-income earners are gaining a foothold in the market, gaining a place to live in the Northern Territory. It is a very reasonable approach to take to continue to support this. We have revised the purchase limits for Katherine and Tennant Creek; they are up by $30 000 and $15 000 respectively. We have concessions on stamp duty, but what do we have opposite? The member for Brennan made a public statement saying they would scrap any programs which support Territory families in accessing the housing market in such a fashion. It will be interesting to hear the Leader of the Opposition tomorrow and what he puts forward in his budget speech.
There is $60m for urban public housing, including $22m set aside to repair and refurbish dwellings; $6.3m to build new Territory housing properties; and $10.6m, jointly funded with the Commonwealth government, to build new properties for families who are homeless and facing homelessness.
I could go on. The National Partnership on Remote Indigenous Housing is certainly entering new phases. This government will continue to invest with the Commonwealth and support the Commonwealth in that.
Madam Speaker, we are poised for massive growth and expansion. We are a government that is supporting families and the economy, and we make no apologies for going into deficit to do so.
Ms PURICK to TREASURER
In 2010, you told Territorians that the nett debt of the Territory would be $1.68bn by 2013-14. You are now telling Territorians by that time the figure will be $3.1bn of nett debt. That is nearly twice as much as you said it would be two years ago. If you get it that wrong in just two years, why should Territorians have any faith or confidence in your ability as a Treasurer now and into the near future?
ANSWER
Madam Speaker, it seems I am somewhat on the repeat, but I will keep stepping through it so the opposition might just understand it.
From the Commonwealth handing down the May budget in 2011-12, just last year obviously, the GST pool has contracted by $3.1bn. The loss in GST revenue to the Territory has been $770m, and we are forecasting a further $480m loss in GST. That is because, month on month, the pool has been revised downwards, so our main source of revenue has been contracting and being revised downwards month on month.
Obviously, budget figures are predictions. They are forecast based on the latest data available. The data my Treasury and the Territory relies on for that forecast is Commonwealth data. It is probably no surprise to anyone who understands what is happening regarding the global financial crisis and the impact it is having, not just on the consumer sentiment I have talked about in relation to the GST, but also the high cost of credit and the difficulty of getting finance for projects and the dampening effect it is having on private investment. It has been no surprise that not only our revenue is being hit, but the Commonwealth revenues are being hit as well in regard to its tax basis. Whilst going into the early post-global financial crisis period when everyone was doing their estimates and their forecasts, we were doing it off best data available at the time.
Since then we have seen the rebounding and greater impacting effects flowing through. We have not seen a recovery to the strength that people back then - not me as Treasurer - but all the Commonwealth data and the Territory picking up that Commonwealth data analysis – just listen to economic commentators. The GFC impacts are still lingering and being felt longer than people predicted. Equally, we have the European sovereign debt crisis. That is a whole new wave of impact coming through, suppressing investment in the private sector, reducing revenues and bringing a further dampening down on consumer confidence.
I have talked about the impact with regard to job losses, particularly in that manufacturing sector across the eastern seaboard. They all have flow-through effects on our figures. I look forward to being in the Chamber in a future budget announcing a stronger recovery. However, at this stage, we have to go off data provided to us out of the Commonwealth Treasury. We are giving you an accurate assessment: a $3.1bn reduction in the national GST collection in the 2011-12 year alone.
Ms WALKER to MINISTER for POLICE, FIRE and EMERGENCY SERVICES
Could you please explain what Budget 2012-13 means for the safety of Territory families?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. It is a record budget for Police, Fire and Emergency Services. I put on the record this afternoon my personal thanks to everybody who serves in uniform across the Northern Territory keeping families safe. They do an incredible job.
This year the budget is $343m, an increase of $14.7m. A large part of that is as a result of negotiations that concluded a $49m deal with the Commonwealth for 94 extra police for the Darwin Immigration Centre. That was a long and complex negotiation with the Commonwealth. Those extra police, when they are not deployed for incidents at the immigration centre, will be available to provide an extra presence around Darwin and Palmerston, and also additional capacity to relieve throughout the Northern Territory. It is a very significant expansion of our police force.
Also in the budget this year is extra funding for firefighters and a new fire station at Berrimah to support the incredible industrial growth happening at the East Arm precinct. This is in addition to more than 400 extra police since 2003.
This government has had a very proud track record of having extra police throughout the Northern Territory, also in partnership with the Commonwealth government to see extra police in our remote communities, keeping people safe, and we have rebuilt our police force after the years of neglect by CLP governments.
Importantly, Budget 2012-13 also includes continuation of funding for the most comprehensive alcohol reforms in this nation. As I have said many times, if you are not tackling alcohol, you are not tackling crime. In this budget, across the forward estimates, we have provided $71.5m for our Enough is Enough program, which includes spending for the SMART Court and the Alcohol and Other Drugs Tribunal to deal with banned drinkers. There is also increased funding for withdrawal support and community-based outreach remote alcohol and drug rehabilitation options.
Compare that with what little CLP policy there is, verbally, out there. Nothing is written. They say they would scrap the Banned Drinker Register, which would see 2500 extra people back on the grog throughout the Northern Territory. Our police force has said, at very senior levels, that this is the most important tool they have ever had to tackle violence and crime across the Northern Territory. When you look at the tragedy, particularly of domestic violence, to put alcohol back into those homes would be the most outrageous and irresponsible thing a CLP government could do.
Ms PURICK to TREASURER
In the budget papers released today, your income for 2011–12 has increased by almost $200m overall. Nevertheless, your deficit has actually increased by $100m to $491m. Why is it that your spending increases have continued to outstrip your income increases?
ANSWER
Madam Speaker, it is attributed to the infrastructure spend. We are keeping our operating expenses below our revenue. As I said in the budget speech, there is a genuine meeting of that fiscal strategy to keep the operating expenses below the revenue coming in. The impact of deficit is all capital spend. It is building the assets in the Territory to ensure we have better hospitals, better health clinics, better schools and better roads. That is a build right across the Territory. If you look at that $1.3bn, we have a $433m asset build in the bush alone. It is critical infrastructure. It is legacy. None of the deficit is coming off the operational spend, it is the capital spend embedded in there.
We have explained, again through the budget speech, we averaged $550m or thereabouts in an average capital spend prior to the global financial crisis hitting. As a result of the global financial crisis and private sector investment drying up we doubled our capital spend. We took it up to $1.7bn in 2010-11. It is at $1.6bn for 2011–12, stepping down to $1.3bn estimated for 2012-13. The deficit is out of assets out of the capital spend.
As I said previously, we have kept our operating expenses below our revenue. It is the capital infrastructure spend that is driving the deficit and adding to debt. They are genuine assets being delivered to improve the life of Territorians. Through that spend, we are gearing Territory businesses up for growth. Through that spend, we have delivered 13 000 jobs already, and the $1.3bn equates to another 2600 jobs.
In simple terms, we could slash the capital spend by 40%; that would equate to 1000 jobs lost. That would be Territory businesses closing the door in droves, just at the time in economic growth when they need to be gearing up to deliver the benefits of the economic opportunities of landing the major Ichthys project.
We will start to run countercyclical. We will start to step-down our capital spend as the private sector investment ramps up. However, there is a way to go and if you do not believe me talk to industry. There is a way to go before the full effect of the private investment spend starts to flow through to Territory businesses.
Yes, we have had some great tenders let already to Territory businesses, but the bulk of the spend is not going to be in the 2012-13 period. We need to maintain that $1.3bn strong capital spend to keep businesses open, to keep Territorians in jobs, and to create 2600 jobs off the back of the 13 000 jobs we have already created ...
Madam SPEAKER: Treasurer, your time has expired.
Mr GUNNER to MINISTER for LANDS and PLANNING
The Territory is entering a period of sustained economic growth, with our economy tipped to be the second-fastest growing in Australia over the next five years. Can you please explain how Budget 2012-13 supports that growth?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. I have been part of an incredible team effort with Budget 2012-13. We are talking about $1.3bn for the infrastructure component of the budget. It has been really interesting to see what the Henderson government has been doing over successive budgets. It is not only investing heavily in infrastructure to create and save jobs to leave a legacy of public infrastructure to grow the Territory, not just in the capital city but across the Northern Territory, but, in parallel, it is about being on the hunt for global projects as well. These global projects have arrived on our shore and now they are stepping up to create that incredible economic activity in the lands, construction and infrastructure areas. That is a real credit. That is great planning and a great strategy.
I learned something from the Treasurer very early in my term about how the global financial sector recognises if you want to stimulate an economy, you invest in the construction and infrastructure sector because you benefit twice. Not only do you put bread on the table - keep people employed and create further jobs - but you also leave an incredible legacy of infrastructure to grow your community and society.
I will talk about a couple of specifics because Budget 2012-13 has very strategic investment, such as the $111m to continue upgrading Territory hospitals. We are not only talking about the Royal Darwin Hospital, we are talking about Katherine, Tennant Creek, Nhulunbuy and Alice Springs, and that is the big picture from this government.
Of course, there is $260m on roads. When we talk about roads, it is strategic investment in strengthening, widening, providing flood immunity and road safety improvements across the network. I also relish the opportunities in education provided by the Henderson government. There has been $17m on school upgrades and new infrastructure off the back of the Building the Education Revolution something, historically in Territory terms, never seen before.
In regard to land release, there is $15.9m to continue headworks for the new suburbs of Johnston and Zuccoli; $3.5m to continue the development of Kilgariff; and $15.5m for a trunk water mains supply to Middle Arm which will open a whole new industrial precinct. That is strategic investment, targeted investment, and investment that builds the Territory.
Ms PURICK to TREASURER
If you spend the same this year as last on infrastructure your budget deficit would be nearly $900m. Why are your budget deficit blow-outs being used to prop up recurrent expenditure?
ANSWER
I do not know who is giving you these questions, member for Goyder, but seriously, you want to have a chat to them afterwards. That was strange ...
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: No, I will step back through it. I had just mentioned in my previous answer that we have a step-down in the capital spend, despite your question indicating the opposite. In 2010-11, $1.7bn in capital; in 2011-12, $1.6bn; in 2012-13, $1.3bn. There is very clearly a step-down in the capital spend. Your question was the complete opposite, although it was a little convoluted to follow.
There is no increase. It is a step-down in the capital spend and we have been up-front with the business sector around that. We have explained what we are doing. Across the forward estimates, we will continue to step-down that capital spend. We will run countercyclical to the upswing in the private investment. There is something like $6.3bn extra private investment flowing through the economy predicted in the 2012-13 year. That is obviously coming out of those exciting major projects.
We all talk about Ichthys, but there are some very other big spends occurring across the private sector through the mines. Anyone who was at the Chamber of Commerce heard me list a series of oil and gas projects, onshore mining projects, as well as the government’s own major project spend in the all-important Marine Supply Base and the Darwin Correctional centre. As we all know, there is certainly a very strong pipeline of mining exploration in the Territory.
To keep it simple, the deficit is a result of the capital spend. We are stepping down the capital spend across the forward estimates as we are stepping down in the deficit, so predicting a deficit in 2012-13 of $449m, stepping out across the forward estimates to a deficit of $285m in 2015-16.
Wrapping up, the scaremongering is adding to the debt and making the debt out of control. You heard the Chief Minister explain the budget is worth $5.3bn. In this context, the deficits are absolutely manageable. Our debt servicing costs are predicted to remain below 8% of revenue over the forward estimates ...
Mrs Lambley interjecting.
Ms LAWRIE: Again, I heard the member for Araluen say: ‘Well, that is Labor’. When you have a former Governor of the Reserve Bank of Australia saying governments are not like households, they are not like businesses; they have responsibilities that go beyond that. To listen to the Coalition spokespeople I hear echoes of Republicans and the more extreme Tea Party Republicans - all this nonsense about governments have to live within their means, deficits are bad, deficits are bad. Member for Araluen, education, health, law and order, infrastructure spending and growth in the child protection budget are not bad things, they are responsible governance ...
Madam SPEAKER: Treasurer, your time has expired.
Mr GUNNER to CHIEF MINISTER
Today, federal Opposition Leader, Tony Abbott, announced he backs a call to cut GST payments to the Territory. What impact would that have on the Territory’s funding and our GST split?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. I am outraged at the comments from Tony Abbott at 1.41 pm this afternoon, which are the most outrageous ...
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: ... and dangerous attack on the Northern Territory since self-government. That is how significant this is. Tony Abbott ...
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: ... has backed a call ...
Madam SPEAKER: Order!
Mr HENDERSON: Tony Abbott has backed a call for GST revenues to be split on a per capita basis.
Madam Speaker, what does that mean for the Northern Territory? That means, out of a $5.3bn budget, a whopping $2.4bn axed from our budget. That would destroy Territory hospitals and schools, it would destroy all of the work we are doing in the bush, and it would throw thousands of people out of work across the Northern Territory. It would devastate services to families, it would devastate our economy. I am absolutely outraged that somebody who stands there saying ‘elect me as the Prime Minister of Australia’ would destroy the principles our federation has been built on. The principles are ...
Members interjecting.
Madam SPEAKER: Order! Order! Order!
Mr HENDERSON: ... wherever you live in this great nation, you should expect a comparable level of services, and $2.4bn - around 40% of our budget - gone as a result of this outrageous policy.
If the Leader of the Opposition cannot stand up to his own party, how could he stand up to Tony Abbott in Canberra? How could he stand up to Colin Barnett, the Premier of Western Australia? How could he stand up to his mate, Barry O’Farrell from New South Wales? They all want to get their hands on $2.4bn of Territory money? The Leader of the Opposition said this is the unified position of the Coalition premiers and it makes sense. Here we have a unified position, which includes the Leader of the Opposition and his mate Barry O’Farrell, who opened his campaign here, which would rip $2.4bn out of our coffers.
We know the Leader of the Opposition has no authority in his own party. He has no authority, no say on his candidate …
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: ... he has been rolled on policy. He has been rolled on Angela Pamela …
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: ... he has been rolled on climate change and rolled on statehood. He has been rolled on these policies by the member for Fong Lim. He cannot stand up to the member for Fong Lim. He has no authority in his party, and he would not be able to stand up to Tony Abbott or the Liberal premiers against ripping $2.4bn out of our budget …
Madam SPEAKER: Chief Minister, your time has expired.
Members interjecting.
Madam SPEAKER: Honourable members, I remind you that when you are referring to either the Prime Minister or a Premier of another state, or the federal Leader of the Opposition, that is, in fact, who they are. There were so many people calling out different names I decided to wait until the end of the answer.
Mr WOOD to MINISTER for JUSTICE and ATTORNEY-GENERAL
The member for Barkly was talking about jobs and how important they are. My question is relevant to that as well. On 6 April in the Northern Territory News, there was an article about possible loss of jobs due to the new asbestos removal laws. Could you please say what the licensing requirements were for an asbestos removal supervisor before 2 January 2012, and what the requirements are now? Are there any people in the Northern Territory who can be asbestos removal supervisors under the new regulations, or do people have to be brought in from interstate to do the job? What is the government doing to fix the problem?
ANSWER
Madam Speaker, I thank the member for his question. The arrangements for the removal of asbestos in the Northern Territory have changed from the commencement of the new Work Health and Safety (National Uniform Legislation) Act which came into effect in January this year.
One immediate change is the removal of asbestos must be supervised by persons who have sufficient experience and qualification. Naturally enough, people would expect that. This change is required in order to improve the safety standards and meet the national industry standards. I heard on the radio this morning about the children and grandchildren of staff members who worked in the CSR plant.
The health and safety of workers, and others, must remain the key focus of safety standards and must not be lowered. This change, as with most changes resulting in model laws, has had some transition arrangements in the Northern Territory. The transition arrangements require a supervisor to have held an NT licence for the last 12 months. Unfortunately, some removalists have been licensed for only a short time and, in the interim, must engage suitably experienced supervisors for the removal.
With respect to how this is all communicated to the business community, all NT licensed asbestos removalists were invited to workshops in 2011 regarding national uniform legislation. All NT licence holders were also contacted earlier this year to inform them of the commencement of the laws, and also the transition arrangements and options to meet these new safety obligations.
Work must now be supervised by a person who has sufficient experience, is over the age of 18, has completed the national units of competency, and is also assessed for qualification as a supervisor.
Member for Nelson, a person can supervise their own work, but the competency as a supervisor requires proof of experience for Class A licences for three years and Class B licences for 12 months. There are currently 210 licensed asbestos removalists, of which 69 licences were issued as recently as 2011.
There are transitional arrangements. These laws were put in place, naturally enough, to improve the safety standard of the industry and the safety of removalists as well.
I believe it is good law. We understand the issues and are working towards resolving those transitional arrangements.
Dr BURNS (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
STATEMENT BY SPEAKER
Adherence to Standing Orders
Madam SPEAKER: Honourable members, I remind you of the advice I gave in the previous sittings relating to members observing standing orders which relate to questions. Those matters are still in force today.
Budget 2012-13 – Deficit Forecast Error in Previous Year
Mr MILLS to CHIEF MINISTER
In the last budget, your government said the deficit would be $387m but it has turned out to be $491m. That is a $104m increase. How could your government make such a big mistake of a $104m increase in just one year?
ANSWER
Madam Speaker, it is obvious the Leader of the Opposition was not listening to the budget speech presented by the Treasurer at 11 am this morning. There is a very simple answer to that question. Since the budget was handed down last year, there has been a $3.1bn contraction in the GST pool. Without the hindsight of a crystal ball we could not project what was going to happen to the GST pool over the 12 months since the last budget was handed down, we took a responsible decision, as a government, to protect jobs and businesses. We did this in light of the Territory approaching the most significant growth phase in its history, maintaining the capacity of businesses, and keeping jobs for Territorians in the Territory.
We could easily have returned the budget to surplus for the sake of a cheap political headline. By slashing the capital works budget by 40% we could have had no deficit this year. We have not done that because we respect the 1000 Territorians who would have lost their jobs and the dozens of businesses across the Territory that would have gone out of business if we had taken the artificial path to a surplus.
The deficit is responsible. It is about ensuring the Territory has the capacity to capitalise on the fantastic array of projects coming to the Northern Territory. It is about ensuring our businesses have the capacity to step up to the plate, to accommodate the opportunities coming, and to ensure we keep the workforce in the Northern Territory - the tradies were not losing their jobs and going down south, which would have made it even harder to bring them back to the Northern Territory.
The real challenge for the Opposition Leader tomorrow is to explain to Territorians how he would deliver a surplus. There are only two ways to deliver a surplus, Leader of the Opposition, or a combination of two. One is to slash spending; the other is to increase taxes. There is no magic pudding to bring the budget back into surplus. The challenge for you tomorrow, Leader of the Opposition, with your credibility on the line, is to explain to Territorians how you would bring the budget back to surplus without throwing people on to dole queues or increasing taxes.
Budget 2012-13 – Key Features
Ms SCRYMGOUR to TREASURER
Can you please update the House on the key features of Budget 2012-13?
ANSWER
Madam Speaker, I thank the member for Arafura for her question. Budget 2012-13 is absolutely about …
Mr ELFERINK: A point of order, Madam Speaker! Surely this would qualify as anticipation of debate?
__________________
Suspension of Member
Member for Port Darwin
Member for Port Darwin
Madam SPEAKER: That is a frivolous point of order, member for Port Darwin ...
Mr Elferink: It is not, Madam Speaker, it is …
Madam SPEAKER: I ask you to withdraw from the Chamber for one hour pursuant to Standing Order 240A.
Mr Elferink: You are joking?
Members interjecting.
Madam SPEAKER: Order!
Mr ELFERINK: A point of order, Madam Speaker! It was a legitimate point of order.
Madam SPEAKER: Order! Are you going to leave the Chamber, member for Port Darwin?
Mr Elferink: I can tell you, Madam Speaker, that close.
__________________
Ms LAWRIE: Thank you, Madam Speaker. It is no surprise to Territorians that government is asked questions on the budget every single Question Time on …
Mr Tollner: That is disgusting.
Ms LAWRIE: … every single budget day, and that has occurred …
Madam SPEAKER: You are on a warning, member for Fong Lim!
Ms LAWRIE: … for every budget in the Territory’s history.
Budget 2012-13 is gearing up for growth and supporting Territory families. With the Territory entering the most significant phase of economic growth in its history, Budget 2012-13 is focused by ensuring all Territorians can benefit from that growth. Budget 2012-13 delivers more housing and land release, boosts our health system, hospitals, better schools and better roads. It delivers a strong $1.3bn infrastructure spend to support 2600 jobs in a managed step-down of our infrastructure spend as those major projects and private investment ramp up.
There are no new taxes and no land tax. We retain our record of being the lowest taxing jurisdiction for small- and medium-sized enterprises in the nation - a record we are proud of. It delivers the best homebuyer assistance package in the nation, with BuildBonus, HOMESTART NT and continued stamp duty concessions. It maintains generous concessions and subsidies to support Territory families.
Importantly, there is a $433m infrastructure spend for our remote communities to support our policy of A Working Future, and a $50m three-year jobs package in our shires. There is $539m for housing, including fast-tracked land release, and $75m for new and upgraded urban public housing.
It delivers record funding for education and health to improve services and respond to demand in growth.
There is a record police budget, with more than 400 extra police on the beat funded by the Henderson government. It continues our effort to tackle alcohol-related crime, to improve child protection services, and our all-important new era in Corrections.
It is a tight but responsible budget; a deliberate decision to go into deficit to support Territory jobs and keep Territory business doors open to gear them up for the growth with the very bright economic future we have after securing the Ichthys project.
Budget 2012-13 – Government Debt and Liabilities
Mr MILLS to CHIEF MINISTER
If you take all government’s debts and liabilities projected for 2015–16, under your management every Territorian - man, woman and child - will owe $35 000. To put it into something concrete, the equivalent value of your debt is a Holden Commodore for every Territorian. Can you advise the date Territorians will finish paying for the car they did not buy and cannot drive?
ANSWER
Madam Speaker, I will put the Leader of the Opposition straight. The government owns the debt and the debt is affordable and responsible. The debt is keeping people in work and keeping businesses open at a time where the global financial crisis has seen banks tighten up lending and not fund business and development growth.
Let us put this into context. The budget this year is worth $5.3bn. In this context, the deficits are manageable. Our debt servicing costs are predicted to remain at below 8% of revenue over the forward estimates.
Virtually every Territory household has a level of debt. Most Territory households would have a mortgage, most Territorians would have credit cards, and it is totally appropriate if you have the capacity to repay that debt, and the Territory government does. We are about to enter the most significant period of economic growth in this Territory’s history as a result of our government’s head-on approach to securing the Ichthys project for the Northern Territory, the positioning of Darwin as the service and supply capital for the gas industry in the Northern Territory and, working with our federal colleagues, to see more money going into remote parts of the Northern Territory than ever before. This debt is responsible; it is keeping people in jobs and keeping the Territory moving ahead.
Tomorrow the Opposition Leader has his opportunity to explain to Territorians how many thousands of jobs will be lost to the Territory economy, or what tax increases he would impose on Territorians in pursuit of a surplus for a headline only, not any economic imperative for the Northern Territory. I will quote Bernie Fraser, previous head of the Reserve Bank, who said:
- ... governments are not like households, they’re not like businesses, they have responsibilities that go beyond that.
We have responsibilities to have great hospitals, to have clinical specialists and nurses, teachers in our schools, police officers across the Northern Territory keeping people safe, and to build infrastructure across the Northern Territory like the Marine Supply Base which will leverage private sector investment.
A pursuit of a surplus at this time for a political headline would have seen thousands of Territorians lose their jobs and dozens of Territory businesses close their doors. This is a responsible budget and it delivers for Territorians.
Budget 2012-13 – Delivering for Territory Families
Ms WALKER to CHIEF MINISTER
How does Budget 2012-13 deliver for Territory families?
Mr TOLLNER: A point of order, Madam Speaker! Madam Speaker, I refer you to Standing Order 68, Anticipation of Subject:
- No Member shall anticipate the discussion of any subject which appears on the Notice Paper ...
Madam Speaker, this subject appears on the Notice Paper and the question should be ruled out of order.
Dr BURNS: Speaking to the point of order, Madam Speaker. The Opposition Leader has been asking questions about the budget and there will probably be further questions. In the 11 years I have been here, certainly on budget day, it is quite in order for questions to be asked on the budget by both sides ...
Mr Tollner: Are you suggesting this was not a frivolous point of order?
A member: It happens in the federal parliament as well.
Mr Tollner: Yes, that is right, but they do not get kicked out of parliament for making points of order like that, especially on budget day …
Members interjecting.
Madam SPEAKER: Order! It is a long-standing practice both here and in the House of Representatives. The Chief Minister has the call.
ANSWER
Madam Speaker, I am very happy to take the question from the member for Nhulunbuy. We are committed to gearing for growth and supporting families. Of course, Territory families are vitally important in building our great Northern Territory, and wherever you live in the Northern Territory this budget supports Territory families. We have worked hard to attract the major projects which will provide Territorians with jobs and families with increased income. Access Economics has said the average growth rate of the Territory is going to be more than 4% over the next five years, providing real jobs and business opportunities for Territorians. We are doing everything we can to position our businesses to take advantage of that growth.
In supporting Territory families, we will continue to provide record spending for core services like health, $1.2bn; education, nearly $1bn - $955m; and a range of concessions and subsidies for Territorians unmatched by other jurisdictions. We will continue to provide Power and Water with $63.1m to subsidise the cost of power and water for Territory families.
Maybe this is where the Leader of the Opposition can find some of his $490m he needs to find tomorrow to bring the budget into surplus. You could save $63m and add $800 to every Territorian’s power bill. That is part of your path back to surplus, Leader of the Opposition ...
Mr Tollner: No, it is not!
Mr HENDERSON: There is $3.3m for our Back to School Payment Scheme of $75 …
Mr TOLLNER: A point of order, Madam Speaker! The Chief Minister was misleading the House and I ask you to ask him to withdraw that.
Ms Lawrie: No, he was not!
Mr TOLLNER: Yes, he was. He is verballing the Leader of the Opposition, Madam Speaker. Surely, he cannot do that?
Madam SPEAKER: Member for Fong Lim, I certainly did not hear that.
Dr BURNS: A point of order, Madam Speaker! He was asking a rhetorical question.
Mr TOLLNER: To sit there and say the Leader of the Opposition is going to – what a load of nonsense.
Madam SPEAKER: Order! The Chief Minister has the call.
Mr Tollner: He makes it up as he goes.
Mr HENDERSON: Madam Speaker, I was pointing out to the Leader of the Opposition where he could find savings in his headlong pursuit to explain in his budget response tomorrow.
There is $3.3m for the Back to School Payment Scheme. I know that $75 for every child going back to school in February is really welcomed by Territorians. There is $6.5m for free school dental care schemes across the Northern Territory assisting our kids and families. There is $4.3m for childcare subsidies. We are the only jurisdiction in this nation to provide subsidies for childcare, and $14.5m for free student, pensioner and senior bus concessions.
Leader of the Opposition, there are opportunities here to do away with all these subsidies and concessions in your headlong pursuit to an artificial surplus, but this government is committed to supporting Territory families and tackling the cost of living - that is what this budget does.
Budget 2012-13 - Stamp Duty on Non-Real Estate Transactions
Ms PURICK to TREASURER
In Budget Paper No 2, you announced you will be breaking your promise to remove stamp duty on non-real estate transactions. Why have you broken your promise? Does this mean you cannot be trusted by Territorians when you say you are going to relieve their cost of living burdens?
ANSWER
Madam Speaker, I welcome the question. The stamp duty commitment remains. We have literally deferred it. It is worth $8.7m ...
Members interjecting.
A member: Deferred it to the next term of government.
Madam SPEAKER: Order! Order!
Ms LAWRIE: They are a rabble. You might want to talk to Newman in Queensland; he is doing exactly the same thing. Liberal governments around the nation are doing exactly the same thing.
The final remaining stamp duty concession is worth $8.7m in revenue. If you want to strip it out, I will look forward to that in the budget response tomorrow by the Leader of the Opposition – lost revenue of $8.7m ...
Mr Tollner: You are the one who committed to it.
Madam SPEAKER: Order!
Ms LAWRIE: As I have already pointed out, that was part of a range of stamp duty transactional taxes to be removed as part of the GST coming in agreement. When the GST collections have dropped by $3.1bn in the 2011-12 financial year from projections back in the May federal budget of last year, it is appropriate to hold back that revenue cut. The GST is well below the guaranteed minimum agreement struck between the Commonwealth government and the states and territories at the time we agreed to give up those transactional taxes. We have one remaining transactional tax on stamp duty. It is worth $8.7m in revenue. It is not a handbrake on industry and business, and there has been broad acceptance of the budget today by business and industry - they get it.
You do not give up $8.7m of revenue when your GST revenue collections are down because of the slowness in the national economy, the conservative consumer as a result of the global financial crisis, and now the sovereign debt risk occurring across Europe which is compounding it. You also have the manufacturing sector being impacted upon in the eastern states, which is having a dampening effect on the national recovery.
You do not irresponsibly give up $8.7m in revenue when your GST revenue is down by $3.1bn. We have not moved away from the commitment, we have deferred it. I said in my budget speech that we have deferred it until we reach an appropriate time for the budget to meet that commitment. The commitment remains, we have deferred it. We are not the only jurisdiction to defer it. In fact, I stand to be corrected, but I believe at this stage only Victoria has proceeded with it.
Budget 2012-13 – Ord River Development Stage 3
Mr WOOD to MINISTER for PRIMARY INDUSTRY, FISHERIES and RESOURCES
Over the last week or so, it has been announced there may be two agricultural companies vying for the whole of Ord River Stage 2; one wanting to grow sugar and the other cotton. This would mean one company will miss out unless there is more land available. Is there anything in this budget which would expedite Stage 3 - which is in the Northern Territory - of the Ord River development so there would be enough land available for the company which does not get Stage 2?
ANSWER
Madam Speaker, my understanding is the Western Australian government called for expressions of interest from companies, national and international, and four companies are bidding. One company is bidding for the developed area in Western Australia. However, even in Western Australia, the Ord area to be developed first is an infill area from Stage 1, and potentially Stage 2, because there are many issues with Stage 2, such as what kind of industry will develop there, which will dictate the infrastructure to be put in place.
Despite what you might have read in the newspaper, there was no discussion with my department, or the government, from any of the proponents in Western Australia …
Mr MILLS: A point of order, Madam Speaker! I seek clarification. The shadow Treasurer, on your decision, has been asked to leave the Chamber. In looking at the point of order raised by the member for Fong Lim it, effectively, is the same as that raised by the shadow Treasurer which was deemed to be frivolous.
Notwithstanding the judgment was it is long-standing practice that questions related to the budget may continue, I ask for clarification. The shadow Treasurer raised a point of order which was deemed to be frivolous, but another colleague raised the same point of order, prefixing it by a number, and was allowed to have that point of order judged and allowed to remain in the Chamber?
Dr BURNS: Speaking to the point of order, Madam Speaker, the Leader of the Opposition is correct. In contrast to the member for Port Darwin, the member for Fong Lim stated the standing order number, and also waited a little longer for someone to get into the question before he raised a point of order.
Madam Speaker, it was a frivolous point of order.
Members interjecting.
Mr Tollner: That is a good tactic, guys, I love it. Kick out the shadow Treasurer on budget day. That is a new one ...
Madam SPEAKER: Order! Member for Fong Lim!
Having discussed it with the Clerk, I believe the ruling I made in relation to the member for Port Darwin was correct. His attitude towards the Chair, his general behaviour - he knew perfectly well questions are asked every budget in relation to the budget. This has happened for the 11 years I have been in this Chamber, in fact, since self-government. It was a frivolous point of order.
Leader of the Opposition, you had been asking questions about the budget, so he is undermining you as Leader of the Opposition.
My position is it was a frivolous point of order and also showed defiance to the Chair. In addition, when you are asked by the Chair to leave the Chamber you are not allowed to yell as you leave. I was within my rights to ask him to leave because he was not attempting to leave. Leader of the Opposition, it is a frivolous point of order.
Budget 2012-13 – Savings in Advertising
Ms PURICK to TREASURER
You announced your department will save $20.6m each year in discretionary costs, particularly in the area of government advertising. If you can save that much on advertising, why will you not stop government advertising before the election in August this year?
Ms Lawrie: Did you say which department?
Madam SPEAKER: I am sorry, which department was it for?
Ms PURICK: To the Treasurer.
Madam SPEAKER: Yes, but which department?
Ms PURICK: All departments, Madam Speaker.
ANSWER
Madam Speaker, I am happy to answer in the broadest possible way because the question was broad. It did not go to the agency …
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: Calm down, member for Fong Lim. I know you are excited.
Mr Tollner: Oh, you drop kick.
Ms SCRYMGOUR: A point of order, Madam Speaker! I ask ...
Madam SPEAKER: Member for Fong Lim, I ask you to withdraw that, please.
Mr TOLLNER: I withdraw.
Madam SPEAKER: Thank you. Treasurer.
Ms LAWRIE: What I assume the member for Goyder is talking about is the efficiency dividend measures in place across government budgets. We make no apology for that. That has achieved cumulative savings of $300m since we put those ramped up measures in place in Budget 2010-11. We also put in place a staffing cap. We have increased the efficiency dividend - I mentioned that in the budget speech - across the agencies to 3%. That will create cumulative savings of about $150m ongoing; we have been upfront about that.
I advised media this morning the way the efficiency dividend applies is most agencies apply it to their travel budgets, their consultancies, using IT for meetings rather than getting on a plane, and really focusing on their corporate services areas, if you like, the backroom areas, not the frontline services of agency budgets. They have met, year-on-year, our requirements for efficiency dividends.
That being said, efficiency dividends do not apply across the board evenly. We quarantine and cut by half the efficiency dividend to those core service areas of health, education and police, and the Corrections part of the Department of Justice, because we recognise they have real staffing ratio issues in service delivery. There is a ratio of nurses to patients, for example; a ratio of teachers to students; equally, a ratio of prisoner officers within the prison system.
Broadly speaking, there is a 3% efficiency dividend in place. Broadly speaking, each agency determines how they meet that efficiency dividend within the agency in consultation with their minister.
As I said, those key service delivery agencies of health, education, police and corrections are quarantined from the full 3% and attract an efficiency dividend of 1.5%. It is about smarter, better government maintaining and improving core service delivery across the Territory, while also being prudent and tightening the belt in tough economic conditions with a dramatic reduction in GST revenue. An amount of $770m has been lost in GST revenue since the global financial crisis hit. We are predicting another $480m loss in GST revenue across the forward estimates. Of course, people expect government to tighten its belt. The most effective and efficient way to do that is through efficiency dividends where departments can generally look at their spending behaviour and patterns. It is largely on travel and consultancies and we make no apology for that.
Budget 2012-13 – Gearing up for Growth and Supporting Territory Families
Mr GUNNER to TREASURER
Can you please update the House on how Budget 2012-13 keeps the Territory gearing up for growth and supporting Territory families?
ANSWER
Madam Speaker, I welcome the question from the member for Fannie Bay. We are gearing up for growth, supporting Territory families, and are forecasting our economy in 2012-13 to grow by 3.9% as we enter the most significant phase of growth in our history. Deloitte Access Economics predicts the Territory will have the second-fastest growing economy over the next five years, averaging 4.4% economic growth.
There is no doubt the 2011-12 year has been turbulent for the global economy. The European debt crisis has been reverberating around the world. While Australian fundamentals are among the best in the developed world, consumer confidence has been rocked. Nationally, private investment has been largely withdrawn and those cautious consumers are changing their spending patterns to spend on GST-free items like health, food and education. Since the start of this GFC, we have lost more than $770m in GST revenue. We are forecasting a further $480m loss in GST revenue across the forward estimates.
An inexperienced government might be spooked by this and make drastic cuts to pursue a surplus. We made a deliberate and responsible decision to support the economy and protect jobs through record infrastructure program spending until private sector investment picks up.
To achieve a surplus, we would have cut infrastructure by 40%, 1000 Territorians would have been unemployed, there would have been a handbrake on our economic growth, and businesses would have closed their doors.
Our continued infrastructure stimulus across our budgets has paid off, with nearly 13 000 jobs created in the Territory since the global financial crisis hit. We have maintained low unemployment. We have kept our skilled workforce in the Territory. There is an article in The Australian today where Tony Abbott is throwing his support behind Coalition-held states - those southern Liberal states are pushing for the GST revenue to be split on a per capita basis. We have Tony Abbott, the Liberal in Canberra, lining up with his Liberal mates, the premiers of the Liberal states, to try to rip $2.4bn out of Territory revenue.
Leader of the Opposition, explain where you are with your mates in Canberra, your Liberal mates, and your mate, Barry O’Farrell, who you brought here to launch your campaign? Do you want to stand by them and see $2.4bn ripped out of Territory revenue …
Mr MILLS: A point of order, Madam Speaker! Though I cannot prefix this by a number, I ask the honourable member direct her comments through the Chair. It is quite intimidating.
Members interjecting.
Madam SPEAKER: Order! Treasurer, can you …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: I call on the Leader of the Opposition to say whether he supports Tony Abbott trying to rip $2.4bn out of Territory revenue.
Ord River Stage 3- Land for Crop Production
Mr WOOD to MINISTER for PRIMARY INDUSTRY, FISHERIES and RESOURCES
Following on from my previous question, my understanding after listening to the Country Hour on Monday is there will not be enough land for those companies wanting to grow crops in the Ord Stage 2 area, and it is likely the crops grown will be either GM sugar or GM cotton, as is most cotton grown in Australia. So we do not end up with an Angela Pamela debacle, which occurred in Alice Springs when the government said no to mining after the company started exploring, will you allow agricultural companies to grow GM sugar cane and GM cotton in Ord River Stage 3?
ANSWER
Madam Speaker, there must be a long way to go for Ord Stage 3, because nothing has been done for a long time in the Territory. Let me remind the opposition …
Members interjecting.
Madam SPEAKER: Order!
Mr VATSKALIS: Some of them were probably not here - I was not here when Lake Argyle was built in 1967 and Ord Stage 1 was developed in Western Australia. The CLP came to power in 1978, and until 2001 had done nothing about the Ord in the Territory. There was no negotiation with Indigenous people, no planning - there was nothing. Our government put an observer …
Mr WOOD: A point of order, Madam Speaker! Relevance. I asked whether the government would allow GM sugar cane and GM cotton to be grown in Ord River Stage 3.
Madam SPEAKER: Minister, could you please come to the point.
Mr VATSKALIS: Madam Speaker, as I explained, it is a long way before Ord Stage 3 is developed. The question of whether we allow the growing of GM cotton and GM sugar cane in the Territory is a rhetorical one. It took Western Australia 20 to 30 years to develop the Ord. For me to answer a question about something that might happen or might not happen by any government in 30 years time is unreasonable.
Debt to Revenue Ratio
Ms PURICK to TREASURER
In 2001, the ALP government, your government, described the debt to revenue ratio of 61% as unsustainable and reckless. You are now intending to put Territorians into debt at a ratio of 74% of revenue. If 61% in 2001 was unsustainable, how would you describe 74% now?
ANSWER
Madam Speaker, it is great to compare and contrast ...
Members interjecting.
Madam SPEAKER: Order! Member for Arafura!
Ms LAWRIE: Look at how much the economy is growing now. It was flatlining at 0% when the CLP was last in charge; flatlining at 0% economic growth in 2001. We have landed the major project of Ichthys, and we are gearing up our construction sector to be able to deliver the jobs, through the Territory businesses, for that all-important major project as well as our own project which is critical to the economy, the Marine Supply Base, and another big construction project with Territory workers on it right now, the Darwin Correctional facility.
If you look in the out years at the nett debt to revenue ratio of 74% for that 2015-16, if you strip out the loss of $1.2bn in GST revenue - about 30% - the effect would be a 44% nett debt to revenue ratio, not a 74% nett debt to revenue ratio. So, through no action of our own, an effect of the global financial crisis, we have lost 30% across that period into our revenue, which is obviously affecting us.
We delivered eight budget surpluses in a row. We retired $582m in debt. There was no global financial crisis in 2000-01 ...
Mr Mills: There was no GST in 2000.
Ms LAWRIE: I will pick up on that interjection; they said there was no GST either. There was a distribution of money through the Commonwealth Grants Commission. We are under that guaranteed minimum agreement right now. The GST has collapsed; a $3.1bn contraction in the 2011-12 financial year alone. There was no global financial crisis in 2000-01, governments did not have to step up and double the public infrastructure spend to keep people in jobs. If we listen to the opposition, thousands of Territorians would be on the dole queues and businesses would have closed their doors in droves.
Surplus in this environment is irresponsible. The public spend is critical to gearing up for growth. It is critical to ensuring that, whilst revenues are being effective on the one hand, whilst the private sector investment is weak, we sustain Territorians in jobs through that all-important capital spend. We will carefully manage a step-down into deficit, going out to a deficit in 2015-16 of $285m. We will not throw Territorians onto the dole queues because of a political headline for a surplus at any cost.
Budget 2012-13 – Supporting Territory Families with Housing
Ms SCRYMGOUR to MINISTER for PUBLIC and AFFORDABLE HOUSING
Can you please inform the House how Budget 2012-13 is supporting Territory families with continued investment in housing?
ANSWER
Madam Speaker, I thank the member for her question. As a government, we make no apologies whatsoever for investing in gearing up for growth, for investing in supporting Territory families, and land release is one of those. In Budget 2012-13, there is $16m for headworks for the new suburbs of Zuccoli and Johnston. There are 1400 new lots in Zuccoli and 490 new lots in Johnston. In Alice Springs, there is $3.5m to continue developing the suburb of Kilgariff, containing 1200 residential lots in total.
We have also made a commitment that 15% of our land releases will be for social and affordable housing. In that context, we have supported the formation of Venture Housing, an affordable rental housing company in the Territory. As the Treasurer alluded to in her speech earlier today, 35 units at Wirrina are coming on-stream in just a month or so.
We are also investing $50m in 140 affordable units, with rental properties in Johnston, Zuccoli and Maluka Drive, to be rented at 20% below the market value.
Since 2004, there has been a continuation of our support for HOMESTART NT. Fifteen hundred low- to middle-income earners are gaining a foothold in the market, gaining a place to live in the Northern Territory. It is a very reasonable approach to take to continue to support this. We have revised the purchase limits for Katherine and Tennant Creek; they are up by $30 000 and $15 000 respectively. We have concessions on stamp duty, but what do we have opposite? The member for Brennan made a public statement saying they would scrap any programs which support Territory families in accessing the housing market in such a fashion. It will be interesting to hear the Leader of the Opposition tomorrow and what he puts forward in his budget speech.
There is $60m for urban public housing, including $22m set aside to repair and refurbish dwellings; $6.3m to build new Territory housing properties; and $10.6m, jointly funded with the Commonwealth government, to build new properties for families who are homeless and facing homelessness.
I could go on. The National Partnership on Remote Indigenous Housing is certainly entering new phases. This government will continue to invest with the Commonwealth and support the Commonwealth in that.
Madam Speaker, we are poised for massive growth and expansion. We are a government that is supporting families and the economy, and we make no apologies for going into deficit to do so.
Budget 2012-13 – Territory Confidence in Treasurer
Ms PURICK to TREASURER
In 2010, you told Territorians that the nett debt of the Territory would be $1.68bn by 2013-14. You are now telling Territorians by that time the figure will be $3.1bn of nett debt. That is nearly twice as much as you said it would be two years ago. If you get it that wrong in just two years, why should Territorians have any faith or confidence in your ability as a Treasurer now and into the near future?
ANSWER
Madam Speaker, it seems I am somewhat on the repeat, but I will keep stepping through it so the opposition might just understand it.
From the Commonwealth handing down the May budget in 2011-12, just last year obviously, the GST pool has contracted by $3.1bn. The loss in GST revenue to the Territory has been $770m, and we are forecasting a further $480m loss in GST. That is because, month on month, the pool has been revised downwards, so our main source of revenue has been contracting and being revised downwards month on month.
Obviously, budget figures are predictions. They are forecast based on the latest data available. The data my Treasury and the Territory relies on for that forecast is Commonwealth data. It is probably no surprise to anyone who understands what is happening regarding the global financial crisis and the impact it is having, not just on the consumer sentiment I have talked about in relation to the GST, but also the high cost of credit and the difficulty of getting finance for projects and the dampening effect it is having on private investment. It has been no surprise that not only our revenue is being hit, but the Commonwealth revenues are being hit as well in regard to its tax basis. Whilst going into the early post-global financial crisis period when everyone was doing their estimates and their forecasts, we were doing it off best data available at the time.
Since then we have seen the rebounding and greater impacting effects flowing through. We have not seen a recovery to the strength that people back then - not me as Treasurer - but all the Commonwealth data and the Territory picking up that Commonwealth data analysis – just listen to economic commentators. The GFC impacts are still lingering and being felt longer than people predicted. Equally, we have the European sovereign debt crisis. That is a whole new wave of impact coming through, suppressing investment in the private sector, reducing revenues and bringing a further dampening down on consumer confidence.
I have talked about the impact with regard to job losses, particularly in that manufacturing sector across the eastern seaboard. They all have flow-through effects on our figures. I look forward to being in the Chamber in a future budget announcing a stronger recovery. However, at this stage, we have to go off data provided to us out of the Commonwealth Treasury. We are giving you an accurate assessment: a $3.1bn reduction in the national GST collection in the 2011-12 year alone.
Budget 2012-13 – Safety of Territory Families
Ms WALKER to MINISTER for POLICE, FIRE and EMERGENCY SERVICES
Could you please explain what Budget 2012-13 means for the safety of Territory families?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. It is a record budget for Police, Fire and Emergency Services. I put on the record this afternoon my personal thanks to everybody who serves in uniform across the Northern Territory keeping families safe. They do an incredible job.
This year the budget is $343m, an increase of $14.7m. A large part of that is as a result of negotiations that concluded a $49m deal with the Commonwealth for 94 extra police for the Darwin Immigration Centre. That was a long and complex negotiation with the Commonwealth. Those extra police, when they are not deployed for incidents at the immigration centre, will be available to provide an extra presence around Darwin and Palmerston, and also additional capacity to relieve throughout the Northern Territory. It is a very significant expansion of our police force.
Also in the budget this year is extra funding for firefighters and a new fire station at Berrimah to support the incredible industrial growth happening at the East Arm precinct. This is in addition to more than 400 extra police since 2003.
This government has had a very proud track record of having extra police throughout the Northern Territory, also in partnership with the Commonwealth government to see extra police in our remote communities, keeping people safe, and we have rebuilt our police force after the years of neglect by CLP governments.
Importantly, Budget 2012-13 also includes continuation of funding for the most comprehensive alcohol reforms in this nation. As I have said many times, if you are not tackling alcohol, you are not tackling crime. In this budget, across the forward estimates, we have provided $71.5m for our Enough is Enough program, which includes spending for the SMART Court and the Alcohol and Other Drugs Tribunal to deal with banned drinkers. There is also increased funding for withdrawal support and community-based outreach remote alcohol and drug rehabilitation options.
Compare that with what little CLP policy there is, verbally, out there. Nothing is written. They say they would scrap the Banned Drinker Register, which would see 2500 extra people back on the grog throughout the Northern Territory. Our police force has said, at very senior levels, that this is the most important tool they have ever had to tackle violence and crime across the Northern Territory. When you look at the tragedy, particularly of domestic violence, to put alcohol back into those homes would be the most outrageous and irresponsible thing a CLP government could do.
Budget 2012-13 – Income and Spending Increases
Ms PURICK to TREASURER
In the budget papers released today, your income for 2011–12 has increased by almost $200m overall. Nevertheless, your deficit has actually increased by $100m to $491m. Why is it that your spending increases have continued to outstrip your income increases?
ANSWER
Madam Speaker, it is attributed to the infrastructure spend. We are keeping our operating expenses below our revenue. As I said in the budget speech, there is a genuine meeting of that fiscal strategy to keep the operating expenses below the revenue coming in. The impact of deficit is all capital spend. It is building the assets in the Territory to ensure we have better hospitals, better health clinics, better schools and better roads. That is a build right across the Territory. If you look at that $1.3bn, we have a $433m asset build in the bush alone. It is critical infrastructure. It is legacy. None of the deficit is coming off the operational spend, it is the capital spend embedded in there.
We have explained, again through the budget speech, we averaged $550m or thereabouts in an average capital spend prior to the global financial crisis hitting. As a result of the global financial crisis and private sector investment drying up we doubled our capital spend. We took it up to $1.7bn in 2010-11. It is at $1.6bn for 2011–12, stepping down to $1.3bn estimated for 2012-13. The deficit is out of assets out of the capital spend.
As I said previously, we have kept our operating expenses below our revenue. It is the capital infrastructure spend that is driving the deficit and adding to debt. They are genuine assets being delivered to improve the life of Territorians. Through that spend, we are gearing Territory businesses up for growth. Through that spend, we have delivered 13 000 jobs already, and the $1.3bn equates to another 2600 jobs.
In simple terms, we could slash the capital spend by 40%; that would equate to 1000 jobs lost. That would be Territory businesses closing the door in droves, just at the time in economic growth when they need to be gearing up to deliver the benefits of the economic opportunities of landing the major Ichthys project.
We will start to run countercyclical. We will start to step-down our capital spend as the private sector investment ramps up. However, there is a way to go and if you do not believe me talk to industry. There is a way to go before the full effect of the private investment spend starts to flow through to Territory businesses.
Yes, we have had some great tenders let already to Territory businesses, but the bulk of the spend is not going to be in the 2012-13 period. We need to maintain that $1.3bn strong capital spend to keep businesses open, to keep Territorians in jobs, and to create 2600 jobs off the back of the 13 000 jobs we have already created ...
Madam SPEAKER: Treasurer, your time has expired.
Budget 2012-13 – Supporting Economic Growth
Mr GUNNER to MINISTER for LANDS and PLANNING
The Territory is entering a period of sustained economic growth, with our economy tipped to be the second-fastest growing in Australia over the next five years. Can you please explain how Budget 2012-13 supports that growth?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. I have been part of an incredible team effort with Budget 2012-13. We are talking about $1.3bn for the infrastructure component of the budget. It has been really interesting to see what the Henderson government has been doing over successive budgets. It is not only investing heavily in infrastructure to create and save jobs to leave a legacy of public infrastructure to grow the Territory, not just in the capital city but across the Northern Territory, but, in parallel, it is about being on the hunt for global projects as well. These global projects have arrived on our shore and now they are stepping up to create that incredible economic activity in the lands, construction and infrastructure areas. That is a real credit. That is great planning and a great strategy.
I learned something from the Treasurer very early in my term about how the global financial sector recognises if you want to stimulate an economy, you invest in the construction and infrastructure sector because you benefit twice. Not only do you put bread on the table - keep people employed and create further jobs - but you also leave an incredible legacy of infrastructure to grow your community and society.
I will talk about a couple of specifics because Budget 2012-13 has very strategic investment, such as the $111m to continue upgrading Territory hospitals. We are not only talking about the Royal Darwin Hospital, we are talking about Katherine, Tennant Creek, Nhulunbuy and Alice Springs, and that is the big picture from this government.
Of course, there is $260m on roads. When we talk about roads, it is strategic investment in strengthening, widening, providing flood immunity and road safety improvements across the network. I also relish the opportunities in education provided by the Henderson government. There has been $17m on school upgrades and new infrastructure off the back of the Building the Education Revolution something, historically in Territory terms, never seen before.
In regard to land release, there is $15.9m to continue headworks for the new suburbs of Johnston and Zuccoli; $3.5m to continue the development of Kilgariff; and $15.5m for a trunk water mains supply to Middle Arm which will open a whole new industrial precinct. That is strategic investment, targeted investment, and investment that builds the Territory.
Budget 2012-13 – Deficit Blow-outs
Ms PURICK to TREASURER
If you spend the same this year as last on infrastructure your budget deficit would be nearly $900m. Why are your budget deficit blow-outs being used to prop up recurrent expenditure?
ANSWER
I do not know who is giving you these questions, member for Goyder, but seriously, you want to have a chat to them afterwards. That was strange ...
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: No, I will step back through it. I had just mentioned in my previous answer that we have a step-down in the capital spend, despite your question indicating the opposite. In 2010-11, $1.7bn in capital; in 2011-12, $1.6bn; in 2012-13, $1.3bn. There is very clearly a step-down in the capital spend. Your question was the complete opposite, although it was a little convoluted to follow.
There is no increase. It is a step-down in the capital spend and we have been up-front with the business sector around that. We have explained what we are doing. Across the forward estimates, we will continue to step-down that capital spend. We will run countercyclical to the upswing in the private investment. There is something like $6.3bn extra private investment flowing through the economy predicted in the 2012-13 year. That is obviously coming out of those exciting major projects.
We all talk about Ichthys, but there are some very other big spends occurring across the private sector through the mines. Anyone who was at the Chamber of Commerce heard me list a series of oil and gas projects, onshore mining projects, as well as the government’s own major project spend in the all-important Marine Supply Base and the Darwin Correctional centre. As we all know, there is certainly a very strong pipeline of mining exploration in the Territory.
To keep it simple, the deficit is a result of the capital spend. We are stepping down the capital spend across the forward estimates as we are stepping down in the deficit, so predicting a deficit in 2012-13 of $449m, stepping out across the forward estimates to a deficit of $285m in 2015-16.
Wrapping up, the scaremongering is adding to the debt and making the debt out of control. You heard the Chief Minister explain the budget is worth $5.3bn. In this context, the deficits are absolutely manageable. Our debt servicing costs are predicted to remain below 8% of revenue over the forward estimates ...
Mrs Lambley interjecting.
Ms LAWRIE: Again, I heard the member for Araluen say: ‘Well, that is Labor’. When you have a former Governor of the Reserve Bank of Australia saying governments are not like households, they are not like businesses; they have responsibilities that go beyond that. To listen to the Coalition spokespeople I hear echoes of Republicans and the more extreme Tea Party Republicans - all this nonsense about governments have to live within their means, deficits are bad, deficits are bad. Member for Araluen, education, health, law and order, infrastructure spending and growth in the child protection budget are not bad things, they are responsible governance ...
Madam SPEAKER: Treasurer, your time has expired.
GST Cuts to Territory - Impact
Mr GUNNER to CHIEF MINISTER
Today, federal Opposition Leader, Tony Abbott, announced he backs a call to cut GST payments to the Territory. What impact would that have on the Territory’s funding and our GST split?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. I am outraged at the comments from Tony Abbott at 1.41 pm this afternoon, which are the most outrageous ...
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: ... and dangerous attack on the Northern Territory since self-government. That is how significant this is. Tony Abbott ...
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: ... has backed a call ...
Madam SPEAKER: Order!
Mr HENDERSON: Tony Abbott has backed a call for GST revenues to be split on a per capita basis.
Madam Speaker, what does that mean for the Northern Territory? That means, out of a $5.3bn budget, a whopping $2.4bn axed from our budget. That would destroy Territory hospitals and schools, it would destroy all of the work we are doing in the bush, and it would throw thousands of people out of work across the Northern Territory. It would devastate services to families, it would devastate our economy. I am absolutely outraged that somebody who stands there saying ‘elect me as the Prime Minister of Australia’ would destroy the principles our federation has been built on. The principles are ...
Members interjecting.
Madam SPEAKER: Order! Order! Order!
Mr HENDERSON: ... wherever you live in this great nation, you should expect a comparable level of services, and $2.4bn - around 40% of our budget - gone as a result of this outrageous policy.
If the Leader of the Opposition cannot stand up to his own party, how could he stand up to Tony Abbott in Canberra? How could he stand up to Colin Barnett, the Premier of Western Australia? How could he stand up to his mate, Barry O’Farrell from New South Wales? They all want to get their hands on $2.4bn of Territory money? The Leader of the Opposition said this is the unified position of the Coalition premiers and it makes sense. Here we have a unified position, which includes the Leader of the Opposition and his mate Barry O’Farrell, who opened his campaign here, which would rip $2.4bn out of our coffers.
We know the Leader of the Opposition has no authority in his own party. He has no authority, no say on his candidate …
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: ... he has been rolled on policy. He has been rolled on Angela Pamela …
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: ... he has been rolled on climate change and rolled on statehood. He has been rolled on these policies by the member for Fong Lim. He cannot stand up to the member for Fong Lim. He has no authority in his party, and he would not be able to stand up to Tony Abbott or the Liberal premiers against ripping $2.4bn out of our budget …
Madam SPEAKER: Chief Minister, your time has expired.
Members interjecting.
Madam SPEAKER: Honourable members, I remind you that when you are referring to either the Prime Minister or a Premier of another state, or the federal Leader of the Opposition, that is, in fact, who they are. There were so many people calling out different names I decided to wait until the end of the answer.
Asbestos Removal – Requirements for Supervisors
Mr WOOD to MINISTER for JUSTICE and ATTORNEY-GENERAL
The member for Barkly was talking about jobs and how important they are. My question is relevant to that as well. On 6 April in the Northern Territory News, there was an article about possible loss of jobs due to the new asbestos removal laws. Could you please say what the licensing requirements were for an asbestos removal supervisor before 2 January 2012, and what the requirements are now? Are there any people in the Northern Territory who can be asbestos removal supervisors under the new regulations, or do people have to be brought in from interstate to do the job? What is the government doing to fix the problem?
ANSWER
Madam Speaker, I thank the member for his question. The arrangements for the removal of asbestos in the Northern Territory have changed from the commencement of the new Work Health and Safety (National Uniform Legislation) Act which came into effect in January this year.
One immediate change is the removal of asbestos must be supervised by persons who have sufficient experience and qualification. Naturally enough, people would expect that. This change is required in order to improve the safety standards and meet the national industry standards. I heard on the radio this morning about the children and grandchildren of staff members who worked in the CSR plant.
The health and safety of workers, and others, must remain the key focus of safety standards and must not be lowered. This change, as with most changes resulting in model laws, has had some transition arrangements in the Northern Territory. The transition arrangements require a supervisor to have held an NT licence for the last 12 months. Unfortunately, some removalists have been licensed for only a short time and, in the interim, must engage suitably experienced supervisors for the removal.
With respect to how this is all communicated to the business community, all NT licensed asbestos removalists were invited to workshops in 2011 regarding national uniform legislation. All NT licence holders were also contacted earlier this year to inform them of the commencement of the laws, and also the transition arrangements and options to meet these new safety obligations.
Work must now be supervised by a person who has sufficient experience, is over the age of 18, has completed the national units of competency, and is also assessed for qualification as a supervisor.
Member for Nelson, a person can supervise their own work, but the competency as a supervisor requires proof of experience for Class A licences for three years and Class B licences for 12 months. There are currently 210 licensed asbestos removalists, of which 69 licences were issued as recently as 2011.
There are transitional arrangements. These laws were put in place, naturally enough, to improve the safety standard of the industry and the safety of removalists as well.
I believe it is good law. We understand the issues and are working towards resolving those transitional arrangements.
Dr BURNS (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
Last updated: 09 Aug 2016