2009-04-28
Election Promises – Electricity Charges
Mr MILLS to CHIEF MINISTER
During the 2008 election campaign, the Labor Party’s electricity and energy policy promised to aim to achieve a reduction in the real cost of energy in the Territory. With your 25% power price shock it is now clear Labor is aiming to tax the budget of every household in the Territory. As a former Minister for Essential Services, you would have known your election promise to reduce electricity prices was a fiscal fantasy. Will you apologise for your disgraceful deception of Territorians at that last election?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. This has been a very significant and complex issue to work through in regard to the reliability and the financial sustainability of our power and water infrastructure in the Northern Territory.
We commissioned an expert to conduct a thorough financial audit of Power and Water, and the expert said that we had to increase prices by 40%. That was an independent …
Mr MILLS: A point of order, Madam Speaker! This is all very interesting and irrelevant. The deception was conducted prior to the last Territory election. This chap being referred to by the Chief Minister was brought in after the election. The nub of the question is about the deception and the need for an apology.
Madam SPEAKER: Leader of the Opposition, there is no point of order. Chief Minister, if you can keep the answer as close as possible to the question asked.
Mr HENDERSON: Thank you, Madam Speaker. The flights of fancy of the Leader of the Opposition, as opposed to the reality in regard to Power and Water and the reliability of the services provided to Territorians, and the financial sustainability of Power and Water …
Mr Mills: To reduce the cost of power. You deceived Territorians.
Madam SPEAKER: Order! Leader of the Opposition, I ask you to withdraw those comments.
Mr Mills: Deception? Deceived?
Madam SPEAKER: Yes, thank you.
Mr Mills: Madam Speaker, I withdraw ‘deceived Territorians’. You can’t use ‘lie’.
Madam SPEAKER: Thank you.
Mr HENDERSON: Madam Speaker, the Leader of the Opposition is too smart by half.
A couple of months after the Northern Territory election – and I am sure the Leader of the Opposition remembers this, because it was with much glee he pursued the issue – there was a significant and major failure of the Casuarina Zone Substation. As a result of that significant failure, the government commissioned an independent audit into the power infrastructure and the maintenance issues in regard to the Northern Territory.
Mr ELFERINK: A point of order, Madam Speaker! None of this is relevant to the question that has been asked. The question asked was in relation to the pre-election promise to achieve a reduction in the real cost of energy in the Northern Territory. None of this is relevant.
Madam SPEAKER: Member for Port Darwin, resume your seat. Chief Minister, if you can keep your comments as close as possible to the question that has been asked.
Mr HENDERSON: Thank you, Madam Speaker. It is entirely relevant to the power price increase that we had to announce last week …
Mr Mills: But where is your apology?
Mr HENDERSON: … entirely relevant. The election commitment was to strive to find reductions. After the election, we had a significant failure …
Members interjecting.
Mr HENDERSON: Madam Speaker, the opposition members ask questions. I can take an hour to answer this question if they like, or they can be quiet and listen to the answer.
Members interjecting.
Madam SPEAKER: Order! Opposition members, I remind you of Standing Order 51.
Mr HENDERSON: Some two months after the election, we had the significant failure of the Casuarina Zone Substation - a failure that saw significant inconvenience to many thousands of Territorians, myself amongst them. Territorians were very angry with the failure of Power and Water in regard to the reliability of supply. We commissioned independent experts to undertake a thorough maintenance review of infrastructure across the Northern Territory. A very significant report was placed before government that showed there had to be a significant increase in expenditure to upgrade Power and Water infrastructure across the Northern Territory. We then conducted an independent review into Power and Water’s capacity to actually fund those increases and be a financially sustainable organisation. All of that has happened within the last eight months or so.
The independent experts - not government people, not Treasury people - said we had to increase prices by 40%. We have refused to do that to Territory families. We absolutely understood that we could not increase power prices by 40% even though we were being called on to do so by independent experts. Instead, we decided that we will continue to subsidise the average home across the Northern Territory $750 a year to keep the pressure down on price increases.
When you are a government, as opposed to opposition, you actually have to deal with the cards that are dealt to you. No one could have foreseen - you have to deal with the cards that are dealt to you …
Mr Mills: Look at the cards you dealt before the election. Where is the apology?
Madam SPEAKER: Order!
Mr HENDERSON: … as opposed to the flights of fancy of the Leader of the Opposition, who just thinks that bad things do not happen and you should not plan, prepare or respond to bad things that happen. We had to respond. We are determined to lift the reliability of the power system across the Northern Territory, and build the infrastructure to cater for a growing economy and population.
Those issues were not brought to light in regard to the fundamental lack of maintenance that has occurred for many years in the Northern Territory under previous governments - and I certainly account for the first six years of this government – a significant underinvestment in Power and Water. Now, that underinvestment ceases. There was over $1bn invested in the capital repairs and maintenance - a significant investment, and brought down by the fact of two independent reports in the last eight months that have come to light that government has to act on.
We cannot be like the opposition and sit there with the blindfold on and pretend that bad things have not happened, that independent advice has not been sought, that government should not respond to reports that very clearly say there has been a systemic underinvestment for many years.
Unlike the CLP, which ripped the guts out of Power and Water and slashed funds when they were in government - they were going to sell it off when they were in government - we are going to build Power and Water and improve its reliability. The independent experts said a 40% increase was what was required. We said no, and took the tough decision, by way of the budget, to subsidise electricity prices for the average family in the Northern Territory by $750 a year.
Swine Influenza – Preparations
Mr GUNNER to MINISTER for HEALTH
Over the past two days, there have been reports about the spread of swine flu in Mexico, United States and Canada. Can you please inform the House how the Northern Territory is prepared for this potential health risk?
ANSWER
Madam Speaker, I thank the member for his important question. Two days ago, the Australian authorities were notified that a new strain of influenza had appeared in Mexico. I have recently been advised that more than 1700 cases have been diagnosed in Mexico, with 150 deaths. The influenza appears to have spread to the United States, with five states confirming 20 cases, and 100 other probable cases. In New Zealand, 23 schoolchildren and teachers have been isolated. We have some other cases in Spain, Asian and European countries, and the United Kingdom.
In Australia, a small number of people have been investigated: seven in New South Wales, eight in Queensland, one in Victoria, four in South Australia, and one in the Australian Capital Territory.
I have also been advised that the World Health Organisation has now raised the level of influenza pandemic alert from the current phase three to phase four. That indicates that the likelihood of pandemic has now increased but it does not indicate that it is inevitable. Obviously, the situation is critical. We have been watching very carefully what is happening around the world and we are working very closely with the Australian authorities.
I want to assure all Territorians that no case of swine influenza has been identified in the Northern Territory. We are well prepared to detect and treat any case if it appears. The Chief Health Officer, Dr Barbara Paterson and Dr Vicki Krause from the Centre for Disease Control are working with international authorities to deliver public health advice and coordinate a response immediately.
We have notified all GPs in the Territory, and all emergency departments in the Territory, that should a person appear with symptoms of swine influenza to immediately notify the Centre for Disease Control. In addition to that, we have now placed notification in all backpacker’s accommodation asking if any person has visited Mexico or the Americas in the past seven days and has flu-like symptoms to immediately contact a GP or the emergency department, or the appropriate authorities.
We have looked at anti-viral drugs in Royal Darwin Hospital and other hospitals in the Territory. We have enough doses to treat people should the need arise. I have to say that we are very well prepared.
It is not a pandemic. We are not alarmed. We are alert. We are prepared to respond very quickly. The Australian authorities have now put in place procedures at the airports, especially if the flights are arriving directly from America. I suppose we are lucky that we do not have any direct flights from America here. That provides some comfort to us.
We are very carefully watching the significant influx of people for the Arafura Games, which start on 9 May. There is no reason for us to proceed with the cancellation of the games because we have checked the people who are coming and none of them are coming from South America or the Americas.
However, I would like to warn everyone that the situation may change radically over the next few days. We will act accordingly and follow expert advice.
Power and Water Corporation –
Cost of Power Crisis
Cost of Power Crisis
Mr ELFERINK to MINISTER for ESSENTIAL SERVICES
You have just heard the Chief Minister blame the Casuarina Zone Substation failure on the increased power prices. Last year, I asked you if power prices would rise as a result of the crisis in the electricity network that crippled Darwin’s power supply in October last year. Your answer to that question was plain. You told this Chamber:
- They will not go up because of this power crisis …
Who has not told the truth, you or the Chief Minister?
ANSWER
Madam Speaker, I think the people who are not telling the truth are on the other side of the Chamber. To be totally honest with Territorians, the genesis of the problems with both the operational side of Power and Water that we have seen recently with the Casuarina Zone Substation, and the financial problems of Power and Water, go back many decades.
Members interjecting.
Madam SPEAKER: Order!
Mr KNIGHT: Madam Speaker, do not rely on my interpretation of this; rely on the experts. Mervyn Davies and countless other experts have seen the genesis of this problem coming from when the CLP government commissioned a report into the financial sustainability …
Mr ELFERINK: A point of order, Madam Speaker! The question is quite simple. The question was that we have heard two completely versions from this government.
Members interjecting.
Madam SPEAKER: Order! Member for Port Darwin, there is no point of order. Resume your seat. Minister, you have the call.
Mr KNIGHT: Obviously, Madam Speaker, he does not like to hear the truth.
The genesis of this goes back decades. It was in a report commissioned by the CLP government in 1998, the Merrill Lynch report. That recommended to government to sell Power and Water. The CLP government acted on that report and, at the time, prepared Power and Water for sale. One hundred and thirty jobs, some of our best Power and Water staff left the organisation because it was being prepared for sale. Mervyn Davies, an expert in the electricity industry nationally, made the observation that the economic rationalists had got to power networks right across Australia, and Power and Water was one of them. It was a CLP government which stripped this organisation out, and that is where the personnel and maintenance problems came from.
Mr ELFERINK: A point of order, Madam Speaker! It goes to relevance. The question is quite simple: one of these two gentlemen has lied. I would like to know which one it is.
Madam SPEAKER: Member for Port Darwin, I ask you to withdraw those comments, bearing in mind ...
Mr ELFERINK: Speaking to the point of order …
Madam SPEAKER: I beg your pardon. Under Standing Order 62(1), you are not allowed to imply that a member has lied, except by substantive motion.
Mr ELFERINK: Madam Speaker, I withdraw.
Madam SPEAKER: Thank you. Minister, please continue.
Mr KNIGHT: Thank you, Madam Speaker. They are the facts of the matter. We had an operational culture which evolved in Power and Water because of that massive exodus of people and that involves …
Members interjecting.
Dr BURNS: A point of order, Madam Speaker! Standing Order 51. The opposition asks a question, and when it is being given, they continually interrupt. I ask them to have the courtesy to allow the minister to respond. I am very interested in what the minister is saying, because he is talking about the genesis of this problem and who is telling the truth.
Mr Mills: It is not the answer to the question, however, and that is unfortunate.
Madam SPEAKER: Order, order! I will remind you of Standing Order 51:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
Minister, you have the call.
Mr KNIGHT: Thank you, Madam Speaker. So that everyone understands, the operational side of this organisation came to fruition with what we saw at Casuarina Zone Substation. That came from the rundown of the organisation. That was addressed. The Blanch Report, which was commissioned by this government in 2006, identified massive capital shortfalls in the organisation, …
Mr ELFERINK: A point of order, Madam Speaker! This has nothing to do with the question. It goes to relevance. The question is very straightforward. All he has to do is answer it.
Madam SPEAKER: Member for Port Darwin, resume your seat. Minister, if you can answer the question as closely as possible to the question asked.
Mr KNIGHT: I am getting there, Madam Speaker. Every time I go to answer it, they keep jumping in. In 2006, $1bn was allocated from a report that we commissioned to sort out the backlog of infrastructure. So, that was the operational side.
Now, after what happened at Casuarina, and obviously some failures within the organisation, it was prudent to look deeper into the organisation, to look into the financial situation of Power and Water. That is why the Reeves Report was commissioned by this government: to have experts with that experience, both nationally and locally, look into the organisation. They came up with an independent recommendation: a 40% increase, which this government did not pass on to Territorians. That is a very prudent step to take, to look at the financial side of the equation, and we have, and to look at the operational side. That is the difference. The cost …
Mr Elferink: Well, explain it to him, because he clearly does not understand it.
Mr KNIGHT: You clearly do not understand it. You did not do anything about it when you were in government, and we are doing something about it.
Members interjecting.
Madam SPEAKER: Order, order!
Mr KNIGHT: Now we have a credible, viable, organisation, and it has taken this government to do it.
Alleged Asylum Seekers – Fire on Vessel
Mr GUNNER to CHIEF MINISTER
On 16 April 2009, we became aware of the explosion and subsequent fire on board a vessel under escort by the Royal Australian Navy in the vicinity of Ashmore Reef. Can you please inform the House of the Northern Territory’s role in responding to this tragedy?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. This has been a tragedy. On Thursday, 16 April, following reports of an explosion onboard a vessel at Ashmore Reef, the Australian Mass Casualty Burn Disaster Plan and the Commonwealth Government Disaster Response Plan were activated. At the local level, I received a phone call and was advised that Northern Territory Police, Fire and Emergency Services had activated the Emergency Operations Centre to coordinate what has been a very impressive multi-agency response. At Royal Darwin Hospital, the National Critical Care and Trauma Response Centre was activated.
Under section 6 of the Commonwealth Ashmore and Cartier Islands Acceptance Act, the laws of the Northern Territory apply to this area, thus the NT Police role as lead agency into the investigation. RDH very quickly sent a team of 15 health professionals to Truscott, including nine critical care nurses, and doctors, and aero-retrieval staff. The NT Health team took command of the triage and overall operation, and coordinated the dispatch of patients to Royal Darwin Hospital. It was a very impressive performance at a time when there really was chaos all around and events where unfolding. Those staff took control and took command of the situation in a very professional way.
Northern Territory Police coordinated the reception of all passengers arriving in Darwin via aircraft and ADF vessels, including three deceased persons coming to Darwin. Seven of the total patients stabilised in Darwin were sent on to Royal Brisbane Hospital because their burns exceeded 30%. Six of the injured passengers remain in Royal Darwin Hospital, whilst others have been released and they are now the responsibility of the Department of Immigration and Citizenship. Files on the five deceased people will be prepared by NT Police on behalf of the Coroner. The Northern Territory Coroner has released the autopsy results from three deceased people who were brought to Darwin. The provisional cause of the deaths is drowning, subject to toxicology and other forensic pathology tests.
Following a significant political debate at a national level, and considerable speculation surrounding the cause of the explosion, and accusations, deplorable as they are, of a cover up, a media release was issued by NT Police on Monday, 20 April at 12.26 pm, followed by a media conference by Acting Commander Bravos, Crime Command, to refute such speculation and claims. Acting Commander Bravos said, ‘Speculation and claims of a cover up are disappointing’. He said: ‘Northern Territory Police are committed to finding all the answers surrounding this tragedy and will not be responding to, or influenced by, rumour. Our job is to investigate, not speculate’.
I take this opportunity to acknowledge the efforts of Northern Command and the ADF personnel who were present at the incident for their outstanding rescue efforts in traumatic circumstances. Similarly, the response team from Royal Darwin Hospital, aided by St John Ambulance, and Darwin Private Hospital which cared for the injured, has been commendable and something that all Territorians should be proud of.
I visited the hospital on 21 April, where I spoke to and thanked many of the people who responded to and cared for these people in very traumatic circumstances. I said to all of them that, as Territorians, we are all very proud of Royal Darwin Hospital, their response, and the care and dedication of their people. As Len Notaras explained to me, it is not just the clinical care at Royal Darwin Hospital; the whole hospital swings in at a time of crisis. This is the fifth time Royal Darwin Hospital has been called on in such circumstances.
I am sure I speak on behalf of all members of this House, on behalf of all Territorians, to once again commend all the staff at RDH, staff at St John Ambulance, our police who are leading the investigation, and all Territorians who, once again, have stood up when this country has called upon them to stand up.
Members: Hear, hear!
Provision of Services – Impact of
Increased Electricity Charges
Increased Electricity Charges
Mr MILLS to CHIEF MINISTER
We have used a fair amount of time in the first couple of questions, so this might get us a bit of time back because it should require a straight yes or no answer.
Will you guarantee that hospital services will not be reduced further as a result of the electricity and water price increases? Further, will you guarantee that services provided by local councils will not be cut as a result of your electricity and water price increases? Will you guarantee that school services will not be cut as a result of your electricity and water price increases?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his absolutely nonsensical question. All government agencies and departments get allocated budgets, and set budgets, and move budgets around every year. In fact, budgets in large organisations move around every day.
What I can guarantee the Leader of the Opposition is that we will provide record funding for Health in the budget the Treasurer will hand down next week. I can say to Territorians that Education will receive a record allocation in the Budget to be handed down next week. I can absolutely give a guarantee that there will be record budget allocations handed down.
At a time when this country is going through the toughest economic period for many decades, we will do everything we can to keep essential services running at a high level, increasing those services wherever possible - and certainly no forced redundancies.
In answer to the Leader of the Opposition’s nonsensical question, those agencies will receive record funding allocations in the budget being handed down next week.
Territory 2030 - Fresh Ideas, Real Results – Next Step in Development
Ms WALKER to CHIEF MINISTER
Yesterday, you launched the Territory 2030 Steering Committee’s draft strategy, an important stage in the drafting of the final Territory 2030 plan. Can you advise the House of the next step in engaging Territorians in developing a plan for the future of our community?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. I know the member has been keeping a very strong focus on the 2030 plan as it rolls out, and has been engaging people in her electorate to have input into the plan.
Early in this term of government, I said that we, as the Territory government, would adopt a fresh approach to governing in the Northern Territory; that we would be engaging in far greater planning right across all areas of government. We made an absolute commitment. I made an absolute commitment to include Territorians and their contributions to the planning process in the Northern Territory. We announced a range of short-, medium- and long-term plans to improve the planning for the delivery of all services in building the Northern Territory economy. The long-term plan is the Territory 2030 Fresh Ideas, Real Results plan.
This is the first time since self-government that a government has taken on a long-term, strategic approach to planning for the future of the Northern Territory. Many hundreds of Territorians have had input into this plan to date. When the plan is finally delivered and adopted by government it will found the cornerstone of our future development - not only economic development of the Northern Territory but social development as well. At a time of global financial crisis, and with all of the pressures and responsibilities on governments in dealing with the day-to-day issues, it is very important that we look to the future, plan for the future, and set real targets for the future.
I appointed a committee made up of leaders from within our community and, in the case of Bill Moss from Macquarie Bank, from outside of the Northern Territory, to head up this committee. They have worked really hard. We have reached out to all parts of the Northern Territory. I commend the committee for their work and the draft strategy that was launched yesterday.
Over 77 discrete written submissions were made to the committee, and there were face-to-face discussions with over 300 people across the Northern Territory. The draft strategy will now be taken up and down the track, throughout the Territory for further consultation. Territorians can access the draft plan on the Internet, and there is an online capacity for Territorians to provide their comments on the development of the plan to date and make further contributions.
A final plan will be released in July. I am pleased to see that the committee has identified that the core of future development of the Northern Territory is education – education, not only in its classroom delivery form, but whole-of-life education for Territorians. Education relates to all of the health and environmental issues that face the Northern Territory, to raising awareness of all the issues that contribute to the challenges of developing this wonderful place we call home, and also so that we can seize opportunities for the Territory.
It is a significant body of work. I urge all members of this House to read the report and make submissions. This is not yet a government report. This report belongs to the committee. It has been contributed to, and edited and produced by, Territorians. It is Territorians’ ideas that have come to government. I commend the committee on their work to date and look forward to releasing the final report in July.
Power and Water Corporation –
Increased Costs
Increased Costs
Mr MILLS to CHIEF MINISTER
I refer to comments made by Power and Water’s General Manager of Strategy and Corporate Affairs, who said it was likely the price rise would be passed on to the corporation’s contestable customers, large businesses and government organisations. That means schools, hospitals and local councils, just to name a few.
Will you guarantee that your electricity and water price increases will not be passed directly on to schools, hospitals and local councils? Will you guarantee that the additional funds you have referred to in the last answer will be provided to specifically offset the massive rises in electricity and costs for hospitals, local councils and schools to ensure there is no reduction in the service delivery to Territorians? Will increases that you have spoken of be proportional to the increased electricity costs?
ANSWER
Madam Speaker, I will respond to the Leader of the Opposition’s thesis - it really was not a question. I said before, in regard to health budgets, education budgets, school budgets, that local government set their own budgets as they receive grants from the government. With government agencies, those agencies will accommodate and deal with the price increase within their own budgets, but their own budgets will be increased. There are going to be increases to all key agencies in the budget next week. We will deliver a record health budget and a record education budget. As to improvement of services, we will drive improvement to education and health services across the Northern Territory, and we will fund increases for those services.
Electricity costs make up one line item. If you think of, for example, Royal Darwin Hospital’s budget, goodness knows how many line items there are in their budget, I would think there are probably some thousands. Every organisation has the capacity to move money around within their budgets as required and still deliver excellent services to Territorians.
The Leader of the Opposition’s question is an absolute nonsense. He must think that ministers sit in Cabinet and decide how much Royal Darwin Hospital is going to get for electricity this year; how much it is going to get for water this year; how much it is going to get for sewerage this year; how much the Wulagi School Council is going to get for those particular services this year. It does not work like that. If the Leader of the Opposition thinks it does work like that, well, heaven help if he was ever a Chief Minister or Treasurer. He would never get a budget out the door because he would be weighed down in so much detail.
In government, you have to take the tough decisions. You can sit there in opposition with your blindfold on, disregard the fact that the Territory is growing at a rapid rate and we need to fund massive investment in infrastructure, in power and water; disregard the fact that there has been decades of under-investment in maintenance in our facilities that need a significant catch up; and disregard the fact that the costs of power have been going up in similar amounts in all jurisdictions in Australia. Disregard all of those facts, sit there with your blindfold on, in your cocoon of silence, and just say that government should not have to deal with any of these issues and everything should stay the same for ever.
Well, the real world is not like that. We have to deal with the tough issues. We have dealt with the tough issues. Our independent expert said 40% - we said no to 40% and increased the subsidy: $750 per household being paid through the taxpayer funds to keep the pressure off power prices throughout the Northern Territory.
We will continue to do the right thing, the prudent thing, and make the tough decisions that governments are elected to make. Not sit there with the blindfolds on, in a cocoon of silence, as the world washes by the Leader of the Opposition, and not expecting that you actually have to respond to issues as they arise, do the right thing, make the tough decisions. That is what we have done.
Economic Stimulus Package –
Territory Highway Improvements
Territory Highway Improvements
Ms WALKER to MINISTER for INFRASTRUCTURE
The federal government stimulus package provided $12m for Territory roads. Can you update the House on the progress of rolling out this important funding to further improve Territory highways?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. Whilst the opposition scoff, regional members in this House know the importance of additional road funding flowing into the Territory from the Rudd government’s stimulus package. We received $12m for road projects, above our per capita cut, if you like, so we punched above our weight in receiving those dollars. That equates to 23 projects that we are fast-tracking across the Territory to deliver …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: … extra roadworks across our national highways. This is being spent on the Stuart, the Barkly and the Victoria Highways, delivering significant …
Members interjecting.
Madam SPEAKER: Order! Standing Order 51:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
Minister, you have the call.
Ms LAWRIE: Thank you, Madam Speaker. This is being spent on the Stuart, the Barkly and the Victoria Highways …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: … delivering significant upgrades with resealing, regravelling, drainage works, and, importantly for our national highways, shoulder reconstruction.
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: The Territory roads package will flow across the Territory and it supports Territory jobs.
Mr Tollner: You will try to cover up your own incompetence.
Madam SPEAKER: Order! Member for Fong Lim, cease interjecting.
Ms LAWRIE: The $12m additional funding will deliver $1.4m for projects on the Stuart Highway in Darwin; $3.72m for the Stuart and Victoria Highways in the Katherine region; $3.99m for the Stuart and Barkly Highways in the Tennant Creek region; and $1.42m for projects on the Stuart Highway near Alice Springs. These 23 projects were bundled into 11 contracts to more efficiently deliver the works. The first contract was awarded on 26 March; one contract is still out to tender, it closes next week; and one is soon to be released for tender. Work has already commenced. The Territory is meeting the time lines for ensuring these projects stimulate our economy.
Territory contractors are already benefiting from this extra funding, as are our national highways with a boost to repairs and maintenance. Contractors across the Territory delivering projects include …
Mr TOLLNER: A point of order, Madam Speaker! The Treasurer well knows that this money is a responsibility of the federal government. It was coming to the Territory any way. The Treasurer should own up and say the work should have been done under the agreement …
Madam SPEAKER: Member for Fong Lim, there is no point of order. Resume your seat.
Mr Tollner: Under the agreement …
Madam SPEAKER: Resume your seat.
Mr Mills: No Tiger Brennan.
Madam SPEAKER: Order! Minister, you have the call.
Mr Tollner: Just twisting the facts, goodness me.
Madam SPEAKER: Order!
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: There spoke the failed former member for Solomon who failed to deliver important and critical federal funding for roads; who failed to deliver the Tiger Brennan Drive project that is under construction. It took Damian Hale, the member for Solomon to deliver for the Territory. …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: $32m for Tiger Brennan that has just dropped into our pockets from the Commonwealth, thank you, Damian Hale. You failed to deliver for Territorians.
Contractors across the Territory …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: This is jobs for contractors, critically important work for our contractors, across the Territory delivering projects. These contractors include D & C Dehne Excavations; Craven Diesel Services; EDI Downer Works; Ostojic Group; and H & K Earthmoving.
We know the Leader of the Opposition and his rabble did not support the Rudd stimulus package. The Henderson government, on the other hand, supports the package because we know it supports Territory jobs and it builds critically important Territory infrastructure.
Power and Water Increases -
Pensioner Concessions
Pensioner Concessions
Mr STYLES to CHIEF MINISTER referred to TREASURER
I refer to the Treasurer’s media release of 7 April 2009, in which you commit your government to maintaining the current value of pensioner concessions for electricity. Is it not the case that pensioners will not be quarantined from your government’s 25% power price shock and 70% water tax and instead see the value of their concession payments eroded? Will you guarantee that pensioners will be fully compensated for the 25% power price shock and 70% water tax?
ANSWER
Madam Speaker, I thank the member for Sanderson for his question, even if he got some of the facts wrong. Certainly, a couple of percent is a couple of percent, but he got them wrong.
I can guarantee that we will protect our pensioners from these price increases. In regard to the technicalities as to how we will do that, I will hand over to the Treasurer who has the detail.
Ms LAWRIE (Treasurer): Madam Speaker, it is almost a dorothy dixer from the member for Sanderson. I sincerely thank him for the question.
This government recognises that power increases affect Territorians, and the last thing we wanted to do was hurt the most vulnerable in our community. We recognise that pensioners and carers are significantly vulnerable to any price movement, which is why we are currently paying a Community Service Obligation payment of millions of dollars to Power and Water to already provide a subsidy for pensioners and carers. What this government did, very sensibly and reasonably, in going through the Reeves Report and the recommendations in terms of the power price increases, and the water and sewerage increases, is look at how we could further protect pensioners and carers in terms of those proposed tariff increases.
The government made a Cabinet decision, absolutely rock solid Cabinet decision, that those tariff increases which will come into effect as of 1 July will not be passed on to pensioners and carers as they exist in the system at the moment with the concessions. A formula was devised between Power and Water and Treasury to look at how that could be put into effect. The original formula did not satisfy the true Cabinet intent of no pass-on of tariff increases. As a formula could not be arrived at that the government wanted, Power and Water are going through their system and manually freezing the tariff rates for all pensioners and carers.
Pensioners and carers will not see a price rise in their utilities bill unless their consumption increases. Of course, we cannot affect a person’s individual consumption, but what we can do is freeze the tariffs for pensioners and carers, as this government has done.
Budget 2009-10 – Extra Nurses
Mr GUNNER to MINISTER for HEALTH
Can you please update the House on the extra nurses who will be employed as part of Budget 2009-10?
ANSWER
Madam Speaker, I thank the member very much for his question. I am very happy to inform the House about the nurses, but I would like to respond to an allegation made by the Leader of the Opposition about cutting health services in the Territory.
Let me tell you how we cut services in the Territory. Since 2001, the Royal Darwin Hospital budget has increased by 101%. In 2008-09, the budget was $225m; next year it will be $245m. Is that cutting services? We have an extra 247 nursing positions at RDH; we now have 839 positions at RDH. What the CLP did was cut 200 nursing positions in the last decade.
Members interjecting
Madam SPEAKER: Order, order! Member for Port Darwin, cease interjecting.
Mr VATSKALIS: Our government reopened Ward 3D with 30 beds; that was the ward the CLP had closed. We opened up the Rapid Admission Unit with 24 beds in RDH. We opened the Palmerston Super Clinic urgent care after hours service …
Members interjecting.
Madam SPEAKER: Order!
Mr VATSKALIS: … that the previous member for Solomon could not deliver. We opened the discharge lounge at RDH, and we expanded Hospital in the Home. But not only at RDH. Cutting services as they say, we have 12 new fully-staffed beds in Alice Springs Hospital; a discharge lounge; and Hospital in the Home is increasing to seven days per week. So if this was cutting down services, then someone has it wrong - it certainly was not us.
Let us talk about the nurses. A few days ago, I announced that our government will spend $182m to pay for 1900 nurses in the Territory. This money will include 95 new nurse positions in the Territory. So, since we came to power, we will have an extra 578 nurse positions in the Territory.
The member for Port Darwin this morning said the rate of spending money is not an outcome. Well, if you do not spend money, how are you going to employ nurses? If you do not spend $182m, how are you going to employ 1900 nurses to provide services to Territorians in the Territory?
Mr Elferink: Where are the health outcomes?
Mr VATSKALIS: Well, 1900 nurses providing care to Territorians who are sick – it is a health outcome, isn’t it?
Members interjecting.
Madam SPEAKER: Order, order! Member for Port Darwin, cease interjecting. Minister, you have the call.
Mr VATSKALIS: Thank you, Madam Speaker ...
Mr Elferink: Spending money is not an outcome.
Madam SPEAKER: Member for Port Darwin, you are on a warning. Minister, you have the call.
Mr VATSKALIS: Thank you, Madam Speaker. The CLP obviously has a problem with health professionals in the Territory - always attacking the nurses, the doctors, and our health system. They do not want the Oncology Unit. What is the point?
Members interjecting.
Madam SPEAKER: Order, order!
Mr VATSKALIS: They do not understand. We have the member for Greatorex arguing that Territorians from Alice Springs should go to Adelaide when he knows very well that unless every Territorian who has cancer is treated in the Territory, the Oncology Unit will not survive and it will close down. He prefers to close the Oncology Unit in Darwin for his own political purpose. Well, we are not going to allow it.
As I said before, we have an extra 95 nurses in the Territory. They do a fantastic job. We know it is a very tough profession, and we know very well that not all the nurses stay in the Territory. However, this time we have nursing stability at record levels – 80%. That means four out of five nurses who worked for us last year are still working with us - four out of five nurses who choose to stay and work in the Territory. I travelled around - I went to Alice Springs, Nhulunbuy and Katherine. I have seen people working and doing a great job. What I hear from management is that the nursing stability at the moment across the Territory is at record levels. They not only choose to stay here, but when they go, they come back, or they talk to their friends about working in the Territory.
We provide a fantastic working experience and a fantastic environment. There are things that they would never see anywhere else in Australia, I admit that. However, at the same time, our government is committed, and will be committed to provide the best health system in Australia.
Power and Water Increases - Inflationary Impact on Groceries and Petrol
Ms PURICK to CHIEF MINISTER
It is well documented that Territorians pay the highest price in the nation for groceries and petrol. Common items such as milk, cheese, bread, oranges, bananas, potatoes, tomatoes, and petrol are just a sample of the goods that are more expensive in the Territory than anywhere else in the country. Many of the outlets where Territorians buy their already very expensive food and fuel from now on will be hit with your 25% power price shock and 70% water tax. The 25% power shock and 70% water tax will now be embedded in the price of fuel sold by these small businesses, as they will not be able to absorb them and will need to pass them on. Will you guarantee that there will be no inflationary impact on grocery and petrol prices as a result of your 25% power price shock and 70% water tax?
ANSWER
Madam Speaker, again, the rhetoric from members asking questions bears little similarity to reality. We all know that for many items that make up the cost of living it is more expensive in the Northern Territory, and there is a very clear reason for that. Most of the stuff we consume is freighted here from somewhere else, and the cost of that freight …
Members interjecting.
Madam SPEAKER: Order! I remind honourable members of Standing Order 51. Chief Minister, you have the call.
Mr HENDERSON: Thank you, Madam Speaker. The cost of that freight is reflected in the prices. That is why we, as a government, have made a conscious decision to do everything we can to reduce taxes in the Northern Territory. Since we came to government, we have reduced taxes to business right across the business spectrum, to the fact that we are now the lowest-taxing jurisdiction for small business anywhere in the country. That is a deliberate policy position and, even in really tight financial times, we aim to meet that requirement.
There are more than just electricity costs going into the cost of running a business. We do not have a fire duty levy or a land tax in the Northern Territory. We have slashed payroll tax across the Northern Territory and many companies that used to pay payroll tax do not now.
Unfortunately, this is an increase that has had to be passed on, but we are not passing it on in full. This year, the government will continue to provide $62m to subsidise the cost of power and water to all consumers including small business. That is $62m deliberately subsiding those companies and Territorians. Of course, in looking at the impact of the proposed price rise - and we walked away from 40%, we said, no, we are not going to do 40% - we will have to absorb some of that in our budget, and we have.
We did commission Deloitte to do some economic modelling on the impact on business in the Northern Territory. Deloitte came to the conclusion that the increases will have a minimum impact on business, jobs and CPI. From the latest CPI figures, the annual inflation in Darwin was 2.8% in the March quarter, down from 3.7% in the December quarter; and below 3% for the first time since the December quarter in 2007.
Madam Speaker, yes, of course we took that into consideration. We had independent modelling conducted to determine the impact on the economy. The independent modelling has come back to say a minimum impact on business, jobs and CPI because electricity costs, power and water costs are a component of the costs of running a business in the Northern Territory, and they are offset by the fact that, under this government, we are the lowest-taxing jurisdiction for small business.
Garuda Indonesia Air Services –
Darwin Flights
Darwin Flights
Mr GUNNER to MINISTER for TOURISM
As you are aware, there have recently been reports in the media regarding Garuda Indonesia services to Darwin. Can you please advise the House what steps this government is taking to address the situation?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his important question. Garuda has supplied the service to Territorians, a very important link to Indonesia, for nearly 30 years now. As everyone knows, there is a very vibrant Indonesian community in Darwin, and the link supplies not only a link for those people and the travelling public, but also important business links, and many Territorians use that particular flight for those purposes.
It is the last full service airline operating on an international route. Moreover, it is very important that we maintain competition on our routes, whether they are within Australia, or externally internationally. Government is very pleased that Jetstar is hubbing out of Darwin. The government has been involved with and has an agreement with Jetstar over the next five years. There will be a significant increase in the number of aircraft that Jetstar bases here and, of course, the number of services that it provides for Territorians. One of the offshoots of that, particularly in the world economic climate that we have now, is that other competing airlines, such as Garuda, do have difficultly competing, particularly in hard economic times like this.
I received quite a number of calls from people asking about this. I immediately became involved and I met with the Indonesian Consul here, Mr Harbangan Napitupulu, as well as the local Garuda agent, Mr Syahrul Tahir, and discussed this issue with them and sought their advice. Their advice was that I should write immediately to the relevant authorities in Garuda, the CEO of Garuda, Mr Emirsyah Satar, which I did. Mr Napitupulu undertook to place those letters strategically within various ministries in Indonesia.
Subsequently, I made direct contact with the Minister for State Owned Enterprises, Prof Dr Sofyan Djalil, and I had a conversation with him about the issue. In that telephone conversation, he assured me that this was a temporary suspension of the Garuda flight, and that, basically, the final decision had not been made.
I know there has been quite a lot of lobbying going on. I understand the Leader of the Opposition has also made representations, together with many people in the Territory community. I welcome that, because we need to be working together and making as many representations as we can on this issue. I understand also from media reports from Indonesia that this has become an issue in Indonesia itself, so that is important.
During my conversation with minister Djalil, I asked him whether it might be appropriate for me to meet with him some time after these sittings. He agreed with that - the challenge is finding a mutually acceptable time. I have also been in touch with the Australian Embassy in Indonesia on this issue, which is facilitating meetings not only with the appropriate ministers in Indonesia but also with senior management of Garuda. I am hopeful and fairly confident of being able to meet with the appropriate people after these sittings.
I will push the Territory’s case to maintain this very important link, not only for air travel, but there is another dimension here, which goes to our relationship with Indonesia and further building that relationship. They are our near neighbours and are very important to us. I will do all that I can to have this temporary suspension turned around and I will advocate strongly for the Northern Territory.
Ludmilla Creek Mangroves –
Legislative Support
Legislative Support
Mr WOOD to MINISTER for NATURAL RESOURCES, ENVIRONMENT and HERITAGE
In the draft Darwin Harbour Regional Management Strategic Framework 2009-13 it states:
- Areas designated as conservation zones and recreational zones are defined in Part 3 of the Northern Territory Planning Scheme in foreshore areas around creeks, rivers and wetlands should be retained to ensure availability of open space.
Creeks and rivers, wetlands, distinctive land form features and distinctive stands of natural vegetation including mangroves should be identified, retained and protected.
ANSWER
Madam Speaker, I thank the member for Nelson for his question. On the point of the Darwin Harbour committee, it is a draft plan that has gone out to ask questions on what they want to see in Darwin. The information we get back from the draft plan will inform the government.
It is vital for anyone in government, and I hope in the public, to think about our heritage as very important in the Northern Territory. It is about educating the future generations of young Territory children about the heritage of the Northern Territory. That is why we commit to heritage listing. It is very important that, as the government, we have taken this route.
I do not have a personal view on the proposal. My legislation requires me not to have a personal view on that, because it is a stringent environmental impact assessment that has to be done on this. I need to keep at arm’s length because of the legislation, and there will be a stringent environmental impact assessment done. Therefore it requires me not to have a personal view on this and it requires me to keep at arm’s length.
Small Business - Involvement in SIHIP
Ms WALKER to MINISTER for HOUSING
A landmark housing program is rolling out in Indigenous communities across the Northern Territory. What opportunities are there for Territory small businesses to get involved?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy her question and her particular interest in this area. The Strategic Indigenous Housing Infrastructure Program, or SIHIP, is a record spend in investment by the Australian government and the Territory government to improving housing and infrastructure on Indigenous communities in the Northern Territory.
Improving the housing standards is central to closing the gap of Indigenous disadvantage. SIHIP is a $672m program, over five years, to upgrade and construct new houses in 73 communities. Recently, I hosted four of the five industry forums held across the Northern Territory, in Darwin, Katherine, Alice Springs, Tennant Creek, and Nhulunbuy. It was quite a good function at Nhulunbuy, with the member for Nhulunbuy, in a very tight room, but everyone had a good time listening to the presentation.
As everyone would know, the Henderson government is absolutely committed, especially in these times of economic crises around the world, to protecting Territory jobs. Through the SIHIP program, we are going to do this. It is a record spend, and we have to ensure that that money stays local, not only in the work that gets done, but the supplies that come to build those houses.
It was a great set of forums. The Darwin forum was held at the new Convention Centre with 250 to 300 people attending. It was standing room only. I am sure people got a great deal out of it. We had three of the Alliance partners there to talk to those people. In Alice Springs, we had over 100 people; again, there was standing room only. In Tennant Creek, Katherine, and Nhulunbuy, we had well over 50 people at each forum, which is a good roll-out for those towns. I know, from my interaction with the business people there, they were very keen to be involved. These record investments do not come along all the time, and they want to get the most out of it. In Tennant Creek, we had New Future Alliance with Craig Rydquist and they are looking at adapting their tender processes to make sure locals get a lot more out of it.
We heard directly from local businesses what they needed to see in the tenders to actually get involved. We had representatives from the Northern Territory Industry Capability Network, which is a fundamental part of the SIHIP program - businesses registering with our NTICN. That is where the Alliance partners will be going to source materials or services. Garry Ross came to most of the bush forums we had, thanks very much to him for coming along. Everyone understands that NTICN is great for this program and great for normal businesses.
We have early work starting in the Tiwi Islands with Territory Alliance; Groote Eylandt with Earth Connect; and, in Tennant Creek with New Future Alliance, as I have said. We also have early package allocations for the second round of projects which will be happening at Galiwinku and Maningrida with Territory Alliance; Gunbalanya, with Earth Connect Alliance; and Wadeye and outlying areas with New Future Alliance.
One of the other main parts of this SIHIP program is about the long-term legacy of jobs and training, and that is absolutely fundamental. From early indications, we have 13 people already in Tennant Creek who have completed training modules in mining operations and steel constructions, and there will be another 12 starting in the very near future. On the Tiwi Islands, we have two initial training courses, one to get some further development in existing skills, and a second course in Certificate II in Backhoe and Skid Steer, and heavy truck driver’s licence. This program is rolling out. It is delivering the right outcomes, those long-term job outcomes.
I take the point from the member for Nelson, who spoke earlier today - mobility will be key for those people finding ongoing employment. That is certainly something we will be talking to them about, and it is something the Alliance partners are talking about with those employees, about coming with them and coming to other projects that they have. It is a great outcome and I look forward to updating the House.
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