2004-05-18
Budget 2004-05 – Economic Growth
Mr MILLS to CHIEF MINISTER
Economic growth at the end of the 2000-01 period was 6%. The first Labor budget forecast an economic growth rate of 4.8% when you achieved an actual growth rate of 2.2%. The second Labor budget forecast an economic growth rate of 3.7%, and you achieved an actual growth rate of minus-0.8%. The last budget forecast an economic growth rate of 3.4%, but you achieved an actual growth rate of 0.3%. Today, you forecast an economic growth rate of 5.8%. Here we have the forecast and the actual growth rate. This is the third full-year budget in which you promised to build a better Territory. How can Territorians have any confidence in this forecast based upon your appalling track record?
ANSWER
Madam Speaker, this is an important question and I hope the Opposition Leader understands he is talking about gross state product. Do you understand this - gross state product? We are talking about the Country Liberal Party in government, 1999-2000, which predicted a 12% growth for the year and came in at zero. That was a tragic year for the Territory. It indicated that we had had no growth. The actual figure of zero was revised to 0.01% …
Mr DUNHAM: A point of order, Madam Speaker! That is actually inaccurate according to your own budget papers.
Madam SPEAKER: Member for Drysdale, resume your seat.
Mr Dunham: Stay with your own budget papers.
Madam SPEAKER: Order, order!
Ms MARTIN: Madam Speaker, 1999-2000 was a year of no growth, and my memory is that the budget papers predicted, and the CLP said, it was going to be 12%. That is just a figure to set some of the parameters from the past.
The figure for gross state product this year is very low: 0.3%. We could say that is of great concern. However, when you look at why that figure has happened, and at the offshore factors and offshore investment, you understand why that figure is low. It is nice that the Opposition Leader wants to hold his graph up, because you should understand a little about what we are talking about.
As we have said through the mid-year report and in this House previously, offshore investment has declined, particularly when you come to a platform like Laminaria/Corallina. It has gone from its height of production of about 180 000 barrels a day to 35 000 barrels a day now, and that has had a significant impact on our GSP. If you put that together with the figures of what we have seen in state final demand, which has grown - the onshore activity - then what you have to read is factors outside the Territory, which do have an impact, which change the gross state product figures. It is very significant. We also had delays with some of the Bayu-Undan investment on the platform and they also impacted on our gross state product.
If we look at the figures for gross state product for next year in this budget, some of those major large investments are going to be happening in this 2004-05 year. I must say, with all due respect to Treasury - and we have the Under Treasurer here - that the Treasury figures are always on the conservative side. Therefore, we are looking at gross state product growing by about 5.8% next year, and we will be monitoring that very closely. When you look at some of the investments that we are certain of having this year, I believe those figures are very achievable. If you put that together with the state final demand figure, which is the onshore activity, you have almost 2% of onshore activity and growth.
Therefore, figures for the Territory as we stand here in May 2004 are looking good. And what do we get from the opposition? Talking down the Territory; talking down a terrific budget, the Territory and our economic growth. We have seen the figures for the Territory decline since 1997, in trend terms, and we are finally seeing those figures turning around. If the opposition was out there talking to business they would hear that. Let us bring in the step of Territory businesses. There is much greater optimism. Retail figures and new car sales are looking good, the tax cuts have been warmly embraced by our business community and warmly embraced in this budget - less tax, more jobs a great lifestyle. The only ones who do not agree: the opposition.
Budget 2004-05 –
Impact on Economic Development
Impact on Economic Development
Mr KIELY to TREASURER
Can the Treasurer please advise the House of the likely impact of Budget 2004 on the Territory’s economic development?
ANSWER
I thank the member for Sanderson for his question, Madam Speaker, because I know, as the local member, he has a deep interest in these matters because he relays them back to his constituents, unlike some members opposite, who we never hear or see in here, or in their electorate either. So it is a great question and I thank him for it.
Less tax, more jobs and support for the great Territory lifestyle; that is what this budget is all about, and that will definitely be the impact that it has out in the Northern Territory abroad, because this budget contains record tax cuts to business right across the Territory. We will be the lowest taxing business jurisdiction in Australia for small business. For a medium-sized business of 40 staff and a payroll of approximately $1.6m, the effect will be to save $29 000 in tax payments to the government, an outstanding result.
The infrastructure spend of $441m will generate and sustain 4000 jobs directly in the construction industry. More importantly than the figure itself, we have packaged this infrastructure to leverage more private investment and even greater growth in jobs and economic activity. For example, the Mereenie Loop Road has $38m over the next three years, something the turkeys over here could have done. They had 26 years to do it - never touched it. That will generate millions of dollars in tourism inflow into Central Australia once it is completed over the next three years.
The Litchfield loop, again, is not even a big job - $15m over three years, something they could have done at any time if they were serious about promoting the tourism sector, which they always bleated about it, but never did anything about. They could have done that at any time, but they did not have the dough for a start and they did not have the brains to think about how important it is.
Tourism infrastructure, roads and strategic development projects are the focus of the expenditure in this infrastructure budget. It is a focus that will lift the jobs effort and fuel economic growth over, not just this year, but the tax cuts into 2005-06 will continue to do that.
The Territory’s great lifestyle gets even better. We are supporting more major events than ever before. I talked this morning, from the cricket to the BassintheGrass. I wish Prime Minister Howard would get his head out of it. Now we have Muralitharan, the greatest wicket taker in the history of the game, saying he will not come because the Prime Minister has the insensitivity to call him a chucker. He is likely to deny Territorians the spectacle of witnessing the greatest ever bowler in the history of the game turning the ball out at Marrara. The member for Nelson agrees. He knows that the Prime Minister should have shut his mouth when he does not know what he is talking about.
I spoke with the Sri Lankan Ambassador at a lunch here with the Foreign Minister just over a week ago and I said: ‘Will you please ask Mr Muralitharan to come to Australia for this next test series because we in Darwin are looking forward to seeing the greatest bowler on our home turf?’. He said: ‘I speak to Murali on a regular basis and I will pass that on’. That was prior to this turkey of a Prime Minister getting out there and calling him a chucker. I hope that damage can be undone. That is what we are bringing to Darwin: test cricket in the form of Sri Lanka and the world’s greatest ever wicket taker.
BassintheGrass, Arafura Games, netball, hockey, Masters Games, AFL, Western Bulldogs up here a bit later this year, more basketball, great racing carnivals – we have just seen that in Pine Creek and Alice Springs, with more to come with Darwin in August - arts festivals across the Territory - the list is as long as your arm. Sports grants are up 10% in this budget, something they did not do for a long time, a great outcome for sports groups and organisations.
There is delivery for ethnic Territorians of a new $500 000 facilities grants program. That brings the grants in this area to a 300% increase since we came to government in August 2001.
Record health, education and police budgets see the government continue its very strong emphasis on building a safer and healthier community, with improving education outcomes. It is a budget that will keep the Territory moving ahead, an achievement of which we are particularly proud.
Budget 2004-05 – Small Business
Mr MILLS to TREASURER
This is a too-late-for-business budget. Is it not true that your business minister has recently been briefed by financial experts who advised him that presently, under Labor, 72% of Territory or Darwin businesses are technically insolvent?
ANSWER
Madam Speaker, I thank the Opposition Leader for his question. He is talking down local business, and I do have the question. He is talking down both the capability and the capacity out there, and the Territory economy overall. He ought to have been at the Chamber of Commerce lunch, where I spoke about a range of initiatives in this budget. Every one of these had come to either myself, the Chief Minister, or the minister for business - in fact, all three of us at different times - when we are either at Chief Minister’s Round Table for Business, at Community Cabinet, or either the Palmerston or Darwin Business Association, where a number of issues were put to us.
One question was in relation to payroll tax, and whether you adjust the rate - because it was no secret that we had money set aside in the forward estimates for this year to alter payroll tax - to come down or whether you should look at the threshold. I was particularly taken with a small business person who spoke at the Palmerston Business Association dinner one night, who talked about the bracket creep. When the $600 000 payroll tax ceiling was established, those businesses have grown with the increases, CPI and wages increases over time. Some businesses have crept into that net, and the original intention would be that they ought not have been in there. I was particularly taken with the argument and the personal effect that was having on that business. Therefore, this year, rather than adjust the rate, which we have done in the last two budgets, we upped the threshold - bold and brave - from $600 000 to $800 000 this year; $800 000 to $1m next year. The Chamber of Commerce was particularly taken with that.
They were also taken with the abolition, with effect today, of the HIH levy. We had continued representation on that point - gone today.
The other two areas, both of which came to us from a number of sources, including the Chamber of Commerce, was the case where a business dealing with government had to carry $10m public liability. That was whether they were digging a hole in Mitchell Street, which you would expect would carry a certain amount of public liability risk, or delivering photocopy paper to government agencies, which does not carry anything like the same level of public liability risk. It was a case of one size not fitting all. We listened to the Chamber of Commerce and to business, and we adjusted that so that, where they are supplying an off-the-shelf item, or an item that comes with the manufacturer’s recommendation, the required public liability cover is simply $500 000, and not the $10m that it was. Business was saying, and it has been saying to me today: ‘You listened. We spoke, you listened, and you have put that in your budget’.
The other one that came, again, on a number of fronts, was the appeals process where a business had objected to an assessment by the Northern Territory Taxation Office. The process was that they needed to appeal back through the taxation appeals area within Treasury. Despite the fact that that was totally professional, totally objective, and an essential and strong process, there were those who thought that it lacked objectivity and independence. We have now moved to an independent tribunal, for both mining royalties and tax assessment objections. They could still go to Treasury. If they are dissatisfied with the Treasury ruling, they can take themselves off to the independent tribunal. If they still do not get satisfaction there, they can resume where they would normally originally have gone, and gone on to the Supreme Court. So, again, businesses are absolutely delighted with those measures. They are non-financial, but they are initiatives that were put to us very strongly by business, and we have accepted them.
In relation to the other part, I do not know if I should get too deep into this, because I am not quite sure where the information of the Leader of the Opposition is coming from in relation to these businesses being on the edge or over the edge. However, if he wants to make statements like that, I call on him to drop the evidence, table it now, tell us where he got it from, and give us a copy.
Budget 2004-05 – Business Reaction to
Payroll Tax Announcements
Payroll Tax Announcements
Mrs AAGAARD to TREASURER
Can you please advise the House what the business reaction has been to the payroll tax announcements made earlier today.
ANSWER
Madam Speaker, I thank the member for Nightcliff for her question. She came from a business background, so she understands better than the turkeys opposite the effect this will have on business and industry across the Northern Territory. I have to say, pretty pleased would be the way I would sum up the reaction from business. Business understands what a huge shift this will be. Eighty-three businesses will not have to pay payroll tax after 1 July 2004; 162 in total will not have to pay payroll tax after 1 July 2005. Of these, 127 will be locally-based Territory businesses, and these will be the big winners: $20 500 taken off their tax burden. If I was a local business person out there with that sum lifted off my shoulders, I would be pretty pleased too.
One thousand four hundred businesses receive a benefit from these decisions, with each and every one of them having more money in their pocket. However, more importantly, not only does it allow them to spend more on goods and services, it allows them to employ more people. We do not know what the disincentive effect might have been, if business is about to go into the payroll tax threshold, and says: ‘Oh, will we be able to employ that extra person or two - or four or five people?’. They now have room to move. If they are in or around the $600 000 payroll, they do not have to worry about it until they get to an $800 000 payroll and, next year, they do not have to worry about it until they get to $1m.
Therefore, it is an absolute pro-growth and pro-business move by government. It will mean more jobs, extra production, and it is an outstanding result for Territory business.
Budget 2004-05 – Population Growth
Mr WOOD to TREASURER
Regardless of the fact the Litchfield Shire has the second fastest growth in population in the Territory because it is a great place to live, according to the NT Economy Book, this is the third consecutive year that Territory population growth is estimated to be below the national growth rate, and the first annual decrease recorded in the NT since 1974-75. Treasurer, can you tell us what is in the budget which will stem this decline and attract more people to the Territory?
ANSWER
Madam Speaker, I have, in part, answered it in the last couple of questions. It is pro-business and growing the Territory, pro-growth, pro-development, infrastructure spend, more jobs, construction industry up, tourism industry developing - every one of those initiatives will result in more people coming to the Territory. Population growth has, in fact, been positive for the last two quarters …
Mr Dunham: Yes, little babies this big. Not workers, mate.
Dr Lim: Babies born, yes.
Mr STIRLING: As an old teacher, Madam Speaker, I am patient.
Population growth has been positive for the last two quarters, and we are predicting 0.3% growth in 2003-04 - lower than we would have liked, but at least it is positive - 0.3% expected again in 2004-05, and then about 0.5% year on year thereafter. Others have more robust predictions around growth than that but, as the Chief Minister said, Treasury do have a conservative view on many things, and we do appreciate it, because it tends not to get us into trouble.
Nett interstate migration has been negative since the late 1980s in the Northern Territory, except for that period of Defence build-up, from the time of 2 Cavalry coming in the early 1990s, and the massive infrastructure and housing development program around that. We saw that right through to the late 1990s, 1997-98. In other words, population increase and growth in the Northern Territory has really, historically, been sustained by natural increases. At the moment, the numbers of departures is about stable, and roughly what it has been for a number of years, but the numbers of arrivals have slowed because conditions around the rest of Australia have been pretty good and it is more difficult to detach people and get them here. That gap widened, as I said, except for the last two quarters. Therefore, with booming conditions interstate, people do not tend to move so much. The recession really brought about by the CLP’s incompetence in the last 1990s …
Mr Dunham: Oh, give it up!
Mr STIRLING: Well, you rode the back of Defence infrastructure build-up for years. You did not do it all yourselves. You did not do a thing yourselves. When that folded, when they said: ‘Whoa, all the soldiers that we are ever going to bring to Darwin are now here’ - ‘Oh, what are we going to do now?’ It was a bit late. The old construction industry plummeted downwards, capital works decreased, the economy shrank. Remember the press release of the former Chief Minister? ‘Hey, honey, I’ve shrunk the economy. What do I do now?’. It was a beauty.
The major projects are back. The government spending on infrastructure is at record highs again. The economy is picking up. This means the population will pick up. We are conservative. We put it at a very low growth figure, but we are also about addressing the issues substantially. We are training our own, we are putting a great deal of effort and money into our Jobs Plan. We are making sure the skills we have here are kept here for the long run.
It is also an effort to minimise the boom/bust of the past years of our predecessors, and there is an important statistic. I will put this on the record for the member for Nelson. At the moment, Australia puts about 170 000 people in the work force every year. In the decade 2020 to 2030, the total number of new entries into the work force nationally over that decade will be about 170 000. The only place where there will be an increase in 15 to 19-year-olds is in the Territory, and 80% of those kids, at a natural increase, are going to be indigenous. That is why we are working so hard to get literacy, numeracy and education outcomes right now with the indigenous population because they are the work force of the future in the Northern Territory.
In addition, we well know - and the former Treasurer stood in this House time and time again and regaled us, with some irony now when the roles are reversed - about the difficulties ABS have in getting a firm estimate …
Mr Dunham interjecting.
Mr STIRLING: The member for Drysdale laughs. The former Treasurer, Mike Reed, the member for Katherine, stood here regularly and told us about the methodology of ABS; how they measure people moving from one jurisdiction to another and how they measure movement back out. It is very easy to measure them moving back out of the Northern Territory; not so easy to measure them moving back in. That is why Queensland shows record growth in population week in, week out, year in, year out, because they capture it all. Not so easy in the Northern Territory, and not quite so credible when they tell us there are 1100 people at Wadeye in the last census. Anyone who has ever been to Wadeye would not believe that.
We have a commitment, as of last year, and I raised this at the Treasurers’ Conference with the federal Treasurer, Peter Costello. He said this assurance: ‘Minister, we are not trying to rob you. If you think it is crook, we are going to have a look at this, but we are not trying to rob you of your population and your rightful revenue. If you think it is crook, we will put ABS people at your disposal to work with Treasury’. We have had meetings with high level senior officers in ABS, and our Treasury will be continuing to work with them.
Population growth is weak, in answer to the question from the member for Nelson. We acknowledge that, we accept that, we are doing what we can with it. However, at the same time, we do not accept that ABS counts are accurate.
Budget 2004-05 – Vehicle Registration
Mr MILLS to CHIEF MINISTER
I was going to ask the Treasurer this question, but on account of the filibustering I will ask the Chief Minister this question.
Madam SPEAKER: Before you go on, I ask that member to make sure that phone is off. Better still, take it out of the Chamber. All members should not bring their phones into the Chamber. Who is your question to?
Mr MILLS: My question is to the Chief Minister. It will now cost the average Territory family an extra $100 to register their motor vehicles. Why has this budget done nothing to reduce the cost of living to Territory families?
Madam SPEAKER: Chief Minister, it is an important question, but I would like shorter answers. It was not you filibustering.
ANSWER
Madam Speaker, I am happy to answer the Opposition Leader’s question. I will give him some details to indicate just where we are when it comes to registering cars in the Territory. The Opposition Leader’s question is premised by ‘you have done nothing for Territory families in this budget’.
I do not want to go on for too long. I hope he was listening to the budget speech this morning, because everything we did in this budget speech was for Territory families. It is to grow the opportunities for Territory families, it is to grow education in the Territory. Is that not an important issues for Territory families?
Building Healthier Communities, is that not something that Territory families want? What about community safety? There is $26.7m for community safety issues in this budget alone. Put that together with an additional $13m into schools, and an $16m additional into health. What about into lifestyle and environmental issues generally - $10m!
The Opposition Leader comes in here and says: ‘What are you doing for Territory families?’ Everything that we are doing in this budget - and I do exhort you to read the budget papers - in business, in tourism infrastructure, is all to assist Territory families to want to stay here, to get their kids well educated, to be healthy, to enjoy our great lifestyle, and for businesses to be able to employ more. Why do you think we are dealing with payroll tax? Why do you think we have removed the HIH levy? So the impost on business is less. What can they do? Employ more young Territorians who come from Territory families. Families feature in every aspect of this budget.
In terms of the cost of registering a car, let us give a comparison here: if you look at what it costs to register a car in the Territory, it is not the highest in the nation by a long way. It is an average. Part of registering a car is compulsory third party insurance and, of course, that is important. Are you walking away from MACA? I hope not.
Let us look at what impact the Opposition Leader is talking about. Let us go to Western Australia, where the average cost ...
Members interjecting.
Madam SPEAKER: Order, thank you!
Ms MARTIN: Since the Opposition Leader asked the question, I could deal with it quickly if they were quiet.
A member interjecting.
Ms MARTIN: If we look at the cost of registering a car around Australia, an average - say a Holden Commodore - is $2200 in the west, in New South Wales it is $1645, and in the Territory it is $1546, and we have a no-fault insurance scheme.
There are great benefits for Territory families in that scheme, and that is the major component different in the registration of that Holden Commodore. I am proud to stand here and say I am standing up for MACA and for Territory families. While the opposition would like to live in fantasy land and say it does not cost to register a car, it does. We are not the most expensive in Australia.
Budget 2004-05 - Tourism
Ms LAWRIE to CHIEF MINISTER
What measures are contained in today’s budget to boost tourism over the coming years?
ANSWER
Madam Speaker, a key component of this budget - and we heard the Treasurer speak glowingly about this aspect before, so I will keep my answer to the point – is that tourism is the Territory’s second largest industry. It supports 15% of our work force, either directly or indirectly, and we have seen what happens to the Territory economy when tourism is affected, particularly as it has been over the last two-and-a-half years.
In formulating this budget, what we looked at was how we could make strategic, taxpayer-funded investment into infrastructure that could then lever private sector investment into tourism. That is what this is about. It is not a hotchpotch of initiatives; this is very strategic for growing our tourism industry, growing tourism jobs and growing opportunities for Territory families - not only through employment and greater economic activity in the Territory, but more things for Territory families to do here as well.
This is an important initiative in our budget, which is about driving growth in tourism. The announcements we have made across a whole range of tourism areas is funding that key infrastructure: a sum of $60m over the next three years. The Mereenie Loop Road will be sealed.
It was fascinating to hear the member for Greatorex say: ‘We promised to do that!’ We are still waiting for him to produce the media release that says: ‘We promised to do that’. Every time we do something, the former government says: ‘We promised to do that. We had 27 years, but we did promise. We just forgot to deliver’.
Funding for sealing the Mereenie Loop Road is $38m over three years.
Mr Elferink interjecting.
Ms MARTIN: It is interesting to hear the member for Macdonnell bag that initiative. Is that what you are saying, member for Macdonnell? That is in your electorate, isn’t it? I would have thought you would have claimed it.
Mr Elferink: You made that promise two years ago. Where is it?
Ms MARTIN: $15m, Madam Speaker. Three years ago, we said we would have a 10-year program to seal the Mereenie Loop Road. We realised it was not fast enough; it had to be faster. We are doing it in three. I was delighted to stand in Central Australia and be cheered by the tourism industry for doing it. I thank the tourism industry, the lobbying from CATIA and others in the industry, who said: ‘If you want to do one thing for tourism in Central Australia, seal the Mereenie Loop’. We will do it; it will be done in three years.
The Litchfield loop, another key component of tourism infrastructure, and yet 44 km of that is still unsealed. We will seal that with $15m in the next three years. The opportunities for Litchfield are there to grow tourism capacity. We are also working closely with the federal government, through Parks North, to give greater strategic marketing to Kakadu, that other key component of tourism in the Top End.
Other initiatives in this budget include $2.5m to support the cruise ship industry. We have seen the benefits of cruise ships coming to Darwin over the last few months. Unfortunately, the cruise ship facility is on the wrong wharf. We need a new one for Fort Hill, and we will build that this year at a cost of $2.5m.
Another key initiative in this budget through tourism infrastructure is $1m - together with money coming from DIPE as well - into upgrading our roadside stops, the wayside inns and their public amenities. We will be actively working with the commercial operators to lift the amenity of what we have along our roadsides, looking at the signage and the public amenities at those roadside stops. That is an important, key component of attracting the drive market.
There is $500 000 to enhance the Gregory National Park and $575 000 for the Limmen National Park. The Territory Wildlife Park and the Alice Springs Desert Park have not been forgotten - upgrading of facilities there at nearly $400 000 - and goes to other various aspects of the tourism industry.
I would have thought that the opposition would have applauded what we are doing in tourism. The additional $27.5m for marketing - part last year, and for the next two years - really means that we can have bangs for our buck in tourism. Infrastructure and marketing is happening. We will grow the Territory economy. We will build tourism.
Budget 2004-05 – Payroll Tax
Mr DUNHAM to TREASURER
Your changes to payroll taxes are long overdue. Territorians have suffered for long enough under your high taxing government. How do you explain to Territorians that, despite these cuts for 83 businesses in the next financial year, your overall payroll tax revenue will increase by almost $6m in the same year? Is this not just a pea and thimble trick, where you are still taking more in payroll tax than you are giving back?
ANSWER
Madam Speaker, we had this last year, to an extent, from the opposition. They said: ‘highest taxing Territory government of all time’. Well, well, well. Wages have gone up 7% in the last year, CPI is trickling around 2% to 2.1%, and yet they do not think revenue goes up every year. They do not think there is a greater level of economic activity going on out there. They do not think more properties have been bought and sold, and stamp duties might go up.
When revenues go up in the budget, when government has reduced tax levels, it means greater economic activity. It means more things are happening out there, more things attracting taxation, more things dropping into the revenue bucket. I recall, distinctly, the former Leader of the Opposition last year, booing me about, ‘the highest taxing Northern Territory government of all time’.
Well, look at every budget that was ever handed down by the CLP and, if there was ever a year when revenue did not increase from year to year, I will go he. It is the same with the Commonwealth government, but we do not have the federal opposition running around saying - oh, we do because, in fact, they are the highest taxing government of all time, and not just through natural revenue increase.
However, it is bizarre for a man, who sits there and cops a little pay rise year in, year out, into his own pocket, not to expect that other things go up as well: petrol, and all the things around us that continue to go up. Yet, the minute own source revenue moves above what you got the year before, despite the fact that you are running at about 2% CPI, you are the highest taxing government of all time, or it is the pea and thimble trick.
Go and tell Carole Frost of the Chamber of Commerce that it is a pea and thimble trick. Go and ask those employers and businesses with wage payrolls of around $640 000, $720 00 or $780 000, whether they think it is the pea and thimble trick. Ask them on 1 July next year whether it was better in 2004-05 from a payroll tax point of view than it was in 2003-04, or all of those years under the CLP? If you are honest and get their answer, you will come back and say: ‘You are right, Syd’.
Budget 2004-05 - Creation of Jobs
Mr BONSON to MINISTER for TRANSPORT and INFRASTRUCTURE
Budget 2004 contains a record cash allocation for capital works and repairs and maintenance. Can the minister please advise the House how the record spending on capital works will create jobs for Territorians?
ANSWER
Madam Speaker, I thank the member for his question. This is a record capital works budget, and I only have to direct members to page 1 of Budget Paper No 4 which shows cash spending in the 2004 infrastructure program as a total of $441m, another record spend.
Over the years, we have increased our cash allocated for capital works by nearly 60%, compared to the budgets delivered by the former CLP government. I have a graph here which will be of some interest later on. Not only are we doing that, we are delivering on our election commitments, as well as delivering economic growth and jobs for Territorians.
We estimate that this infrastructure budget will support some 4000 jobs in construction projects, design and engineering, civil works, and repairs and maintenance. As the Chief Minister has already outlined, it is fantastic news for tourism. We have talked about the Mereenie, Macdonnell and Litchfield loop roads, and that is going to be a fantastic boost for the tourism industry.
There is another $8.2m for the redevelopment of the Darwin City Waterfront. I happened to notice last week, the three short-listed proponents walking along Mitchell Street, bringing all their tender documents into the building, and they looked very keen. There is a lot of competition and interest around this project. It is going to be a fantastic boost to the economy and to Darwin, and is great.
As the Chief Minister said, $2.5m also goes to the cruise ship terminal. Also, very significantly, $1.5m is to support improved roadside and roadhouse facilities for the self-drive market, which we all know is increasing.
There is $20m to do with the port, very important projects there. There is the pipeline project which will facilitate the shift of the bulk liquid handling facility from Stuart Park to the other side. There are also proposals for other bulk liquids to be involved in that. There will be an incinerator, very important for quarantine and for the normal operations of the port. There is also the bulk loading facility which is being proposed in regard to Bootu Creek. These are all important and significant projects for the development of the Northern Territory.
Significantly, the budget also contains a massive injection of over $41m – I will say it again – over $41m in urban and remote housing. This is good news for housing clients, the housing industry sector, and for all those contractors who build those houses all over the Territory.
$56m goes to improved community services, including the $14m program for the Desert Knowledge - there is a lot of excitement about that - $17m for new and improved schools, and $11m for remote health centres. Royal Darwin Hospital will receive $6m for the hospice and the birth centre. In addition, the budget provides $167m cash for repairs and maintenance across government.
It is good for jobs, small business, and for industry.
In closing, I had a radio debate about a week ago with the new shadow minister for Infrastructure and Transport, the member for Brennan, and one of the issues that he raised was about revote. He seemed to be intimating in the interview, and the debate, that we were somehow drowning in our revote; that revote under this government had got out of control. Well, here is a very interesting graph. I went back through the figures. This is the CLP government, the cash is represented by the dark lines, the revote is in - you cannot really see it there - the clear bits. Significantly, you can see here, this is our cash up here, the revote right down here - quite manageable. We decreased it from the CLP level. When he was Chief Minister, the revote actually exceeded the cash, and this member had the gall to try to tackle me on this government’s revote.
Well, it is under control, we are putting in 60% more cash. The only downside of the budget that I can see, as Infrastructure and Transport minister, is that I have the responsibility of getting those projects in there, out there, and done. It is a wait, but it is a very pleasant wait. I will be trying my best for this government, the Territory, and all those contractors who will rely on this great cash outcome in our budget.
Budget 2004-05 – Capital Works Budget
Mr BURKE to MINISTER for TRANSPORT and INFRASTRUCTURE
Madam Speaker, with the minister’s deference, I will have the gall and audacity to ask him another question. You stated in the answer you gave that, in your current budget 2004-05, the cash allocation was $441m; a massive infrastructure spend, you say. Last year’s budget, in your own Budget Paper No 4, page 7, states that the budget allocation cash was $438m. Minister, $438m from $441 is $3m. The CPI inflation rate of the Northern Territory, on your own budget figures, was 2.2%. Will you admit that the capital works infrastructure budget has, in fact, in real terms, been cut?
ANSWER
I will put the graph down, but everyone would have seen when I put it up there, record capital works spend and cash. I need say no more, Madam Speaker. I was speaking to people in the architecture building design industry the other day. The only question they had for me was: is cash spending going to keep on going at the same levels, and are we going to get at least the same amount of work in the next year? I said, yes, they will get that, they will get more, it is an increase. Stop carping!
Budget 2004-05 – Benefits for Central Australians
Mr McADAM to MINISTER for CENTRAL AUSTRALIA
Can the minister please outline the benefits for Central Australians from Budget 2004.
ANSWER
Madam Speaker, it is a good question, and I cannot wait to get back to Central Australia and share the good news with people there as to what they are going to get out of this budget. I am pretty one-eyed about the place, and the budget is going to really fuel up a fantastic year in Central Australia of infrastructure development, creation of jobs, and the expansion of activities that are available to Central Australians, particularly in Alice Springs.
The top priority for people in Alice Springs is to get land out on to the market and be able to build private sector housing. We are putting $1m now into Mount John Valley as the second stage of the land release program in Alice Springs. We are not stopping with the Larapinta release. We are going straight into the negotiations, the engineering, and the headworks that are going to be needed to get more housing started in Mount John Valley. We would expect to see both of those housing developments well under way within 12 months. I believe we will be finding it hard to get enough subbies and skilled people in Alice Springs to keep up with the program.
It is great news for the construction industry generally. As well as the private sector developments, there is $25.6m for the Desert Knowledge Precinct, which is going to be a fantastic project; $2.4m for upgrades to the Alice Springs Hospital; $750 000 for Tennant Creek Hospital fire safety upgrades; a new $1.5m health centre for Kalkarindji; $1m for the development of a small seniors village in Kenna Court, Alice Springs; $250 000 to complete an airconditioning upgrade at Gillen Primary School; and a whole range of essential services out bush at places like Docker River, Nyirripi, Yuendumu, Hermannsburg and Imanpa. We are going to have a great year.
For tourism, as the Chief Minister said, $38m is going into the Mereenie loop development, and that is going to open up enormous amount of new activity into the future for Central Australia. For our general road network, counting the Barkly, $4.8m is to be spent on improving access to Borroloola; $1m for the Tanami Highway, my favourite road. I can remember Brian Ede coming here about 20 years ago asking for this to happen, and we have finally seen the black top going on the Tanami, which is fantastic to see. There is $0.5m for the Barkly Highway, and $2m on strengthening bridges and road widening on the Stuart Highway.
What about our sporting facilities? $1.7m is going into Traeger Park for a new grandstand and a whole heap of new facilities.
Mr Stirling: That is the end of it, Toynie. You are finished.
Dr TOYNE: No, I am after some more, Madam Speaker. We have not finished yet. We will be going in for another dip at this. There is $100 000 for the Desert Song; $500 000 for the Masters Games, and I hope every one is in training, because I will be there and I will take on all comers.
Budget 2004-05 – Commonwealth Funding for Roads
Mr BURKE to MINISTER for TRANSPORT and INFRASTRUCTURE
I refer you to Budget Paper No 4 at page 9. The government has made much about what they are going to spend on Territory roads. If you combine what is being spent on national highways and Territory roads, the government says it is going to spend $34.9m in this financial year. If one looks at the announcements by the Commonwealth, they gave the Northern Territory government $54.2m for national highways and local roads this financial year. If you exclude the $11m for unincorporated roads in those areas, the Commonwealth has, in fact, provided for the Northern Territory government $42.6m. Minister, why are you not even spending, on your own highways and local roads, the amount of money that the Commonwealth is giving you?
ANSWER
Madam Speaker, it is an interesting question. I like the way the shadow minister wants to exclude Roads to Recovery money out of the whole equation, because that comes right down to the complaint …
Mr BURKE: A point of order, Madam Speaker! It is very straightforward and he cannot filibuster. I have taken out the $11m that the Commonwealth provides for unincorporated local roads, and I have also taken out Black Spot money. Therefore, the money the Commonwealth has given you is $42.6m and, in your budget paper, you intend to spend $34.9m. Why are you not spending what the Commonwealth gives you?
Mr Stirling: That is the same question that we had last year.
Dr BURNS: Well, that is right, that is the point I am getting to. The same question was asked last year. The opposition excluded Black Spot and repairs and maintenance money. They are trying the same trick on here today …
Mr Burke: It is cash.
Dr BURNS: Well, if you want to talk about cash, as a government, we are putting in over $7m more cash into our roads in this budget than you did in your last CLP budget. We are pulling our weight in terms of roads. It is the Commonwealth that is not pulling its weight. The Commonwealth is not funding the Territory for all those 9000 km of unincorporated roads. We have missed out on $20m over four years because the Commonwealth wanted to shovel all their money into John Anderson’s electorate. The electorate of Gwydir got $42m over four years. The Territory got a total of $20m. Go and talk to your mates in Canberra! Tell them to pull their weight! We are pulling ours: an extra $7m in roads.
Members interjecting.
Mr Dunham: We know you are pulling yours!
Madam SPEAKER: I wonder how that went over the air. Not too well, I would imagine, that shouting match.
Budget 2004-05 – Dental Health in Schools
Mr WOOD to MINISTER for HEALTH
I should say I will see the Minister for Health at the Masters as well. Earlier this year, there was debate about the future of school dental clinics. One option would have meant that children would have to travel, in some cases, long distances to avail themselves of this service. Has the government made a decision about the future of dental services for schools? If so, how much would he be spending on school dental services? I tried to find it in the budget papers, but I came across this term ‘Oral Health Occasions of Service’. Is that government-speak for dental services?
ANSWER
Madam Speaker, I will not quibble with the terminology but, yes, we are talking about the school dental programs, if that is what it says in the paper. In the long, deep, dark, misty past, we commissioned A Review of NT Oral Health Services from AD Loan and Associates Consultancy in 1999. That report sat in the previous government’s hands for the whole of the last part of their term in government. We have picked up the recommendations of that report and considered a way forward.
What was brought to me when I took up the Health ministry was that we cannot sit around modelling, waiting and carrying on about which way to do the whole system any longer. There is equipment in those clinics that is not safe to use with kids, and which is well out of time in its facility for use in dental work. We are putting in $0.6m to start upgrading the most unsafe of those school equipment areas.
As to the final form of the school dental services, we will work on this as we go along, but we are not going to be waiting until we have a final model to work with. We will work on upgrading this equipment in the meantime.
Budget 2004-05 – Sporting Facilities
Mr KIELY to MINISTER for SPORT and RECREATION
We have a great lifestyle in the Territory, and the Martin Labor government has an outstanding record of delivering better sporting facilities for Territorians …
A member: Get to the question.
Mr KIELY: Well, go down to Marrara and have a look, instead of carping.
Madam SPEAKER: Member for Sanderson, your question.
Mr KIELY: Minister, can you please inform the House how you are moving the Territory ahead under Budget 2004 for Territory sports enthusiasts?
ANSWER
Madam Speaker, I thank the member for his question. This budget supports a number of new infrastructure developments that build on our hard work. Members may recall that I recently announced that we will see the commencement of works on a $5m government-owned home ground for soccer at Marrara. In addition, junior soccer players will enjoy an upgrade of their facilities across the Northern Territory. These works will include junior players in Borroloola having, for the first time, clubroom facilities. In Alice Springs, players will enjoy an upgrade of their playing surface at Blatherskite Park, whilst Darwin junior players will have, also for the first time, the use of a kiosk facility and installation of shade structures at Bagot Oval.
Mr Elferink: How come you have cut the budget of the department by $0.75m, Jack?
Mr AH KIT: Well, the opposition will continue to whinge and carp and whine, obviously, because …
Members interjecting.
Mr AH KIT: Madam Speaker, they will have their time to ask questions over the next few days, or at estimates.
We will continue to deliver on our promise for the final stage of our $5m upgrade of Traeger Park this financial year and, if the members for Macdonnell and Greatorex reckon that is not worthwhile, then they should go back to Alice Springs and tell the sporting community that they do not support those projects.
It has been good working with the Alice Springs Town Council master plan. Residents will witness the construction of a grandstand at Traeger Park, the completion of the infrastructure upgrade will enable another very successful AFL Wizard Cup Challenge Match to be played in the Centre during 2005.
We have also announced $500 000 for the upgrade of sporting infrastructure at the Katherine Sports Ground. The funding will see installation and upgrade of floodlighting to playing fields, basketball and netball court developments, construction of a mobile stage grandstand, improved signage, and the installation of pedestrian and security lighting. These have all been identified in the Katherine Town Council strategic plan. We have also made an offer of $140 000 to the Katherine Town Council to contribute to the construction of a skate park.
Members may also remember a recent announcement I made in terms of the provision of a home ground for the Palmerston Magpies Football Club. It is another reminder that this government takes its promises seriously. We have brokered a three-way partnership with both the Magpies …
Members interjecting.
Mr AH KIT: Well, if you do not want to listen, maybe the members for Brennan and Drysdale would like to listen, because this is something that interests them. You are not interested in Traeger Park in Central Australia.
Let the people who represent the Palmerston community understand what we have been able to broker by way of a $2m election commitment for the Palmerston Magpies and the sporting community at Palmerston. We have brokered a deal with Charles Darwin University and the Magpies, and we will see a win/win situation develop. That money will go to Charles Darwin University. They will, in turn, formalise an agreement with Palmerston Magpies on how that $2m is going to be spent on things like car parks, lengthening the oval, ablution facilities, etcetera. This development is not only for football, this will benefit the sporting community for other sports that would like to use facilities such as that complex once it is developed with a few million dollars.
I understand we are running out of time for Question Time and I will wrap it up there. Once again, I am proud to be associated with this budget. We are moving the Territory forward. We enjoy our lifestyle, and to have sports supported, once again, in the budget in a big way is something that we care a lot about, and we will continue to do that.
Mr HENDERSON (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
Last updated: 09 Aug 2016