2001-10-17
- Madam SPEAKER: I remind honourable members that I have given permission for the media to record sound and vision during Question Time today.
Northern Territory Economy
Mr BURKE to CHIEF MINISTER
The Territory economy, like all others, feels the effects of issues outside its direct control that nonetheless require responses from governments. You are faced with falling job opportunities, weak consumer confidence, slowdowns in all major sectors and ongoing difficulties in bringing gas onshore. With the exception of your summit next month, what action have you actually taken to address these economic issues?
ANSWER
I thank the Opposition Leader for his question. Very sadly, the economy that this new government inherited was one that had been carefully nurtured by the previous administration. Unfortunately, that careful nurturing had included one year of no growth. No growth at all, and shocking figures where we saw unemployment grow during that time. We saw the work force also shrink. We saw the construction industry right across the Territory - again, nurtured by the previous CLP administration - on its knees. You can say words like the construction sector was on its knees, but the saddest part of that was, it was Territorians out of work. For the first time in sometimes 20 and 30 years, we had Territorians out of work. We have the hide of the now Opposition Leader coming into this parliament and saying: ‘What are you doing?’ What are you doing? Two-and-a-half years as Chief Minister and he now comes in with a smirk and a self-satisfied look on his face and says: ‘What are you doing?’.
First of all, let me tell the opposition, the first shock we had - and unfortunately it came way before 11 September - was the shock of the fraud that was perpetrated on Territorians, the absolute fraud that was perpetrated on Territorians from the budget papers delivered by this former administration in May - the absolute fraud.
We, as the new administration, are dealing with this fraud because we are determined to bring the Territory budget back to a sustainable position, while introducing the plans and the initiatives that we went to the election with, and we are determined that will come in place in the timeframe that we set, through our very carefully Access-costed documents. We are on track, we are working hard for Territorians, even though we have the Opposition Leader saying: ‘Oh, the Economic Development Summit - a talkfest. It is just a talkfest’. Has the Opposition Leader spoken to business about this talkfest? They are very excited about it. They are enthusiastic about being able to contribute to our mini-budget process and also contribute to the long-term strategy.
We are also very proud, and recognise the work done by the previous administration in the railway. $1.3m - I outlined the benefits we are already seeing through the railway. Three hundred jobs are created. In the member for Katherine’s area, 40 jobs created in the sleeper factory and 40 jobs ongoing. Katherine businesses have work. Yes, activity is happening, and we are working very hard to turn around the legacy - not only of the last two and a half years - but the legacy of many years that this CLP administration, who sat here on these government benches, on these Treasury benches, and said: ‘Aren’t we great economic managers?’ Now all Territorians know the truth.
Proposed Sale of NT Fleet
Mr KIELY to CHIEF MINISTER
Chief Minister, in your ministerial report this morning on the Allan report, you mentioned that Treasury had advised that the sale of the NT Fleet as proposed by the former government should not proceed. What were the reasons?
ANSWER
I thank the member for Sanderson for his question. When we came to government, the Under Treasurer advised that, in the light of the emerging budget situation - and we know what that emerging budget situation was - this year’s budget included the sale of at least the light vehicle component of NT Fleet. That is something like 2200 vehicles. The Under Treasurer also advised that its inclusion in the budget was a last minute matter. It was something that the then Treasurer said: ‘How can we do something about the deficit? I do not like it. We are running up to an election. What do I do about it?’ He and his back pocket pulled the sale of the NT Fleet - the sale of the fleet, and the details had only been investigated after the budget. Now, this is great budget management. We put initiatives into the budget, then after we have put them in and proudly stood on this side of the House and said what a great initiative it is, then we go: ‘Whoops! Does it work?’ Well, let me say that whoops was, it did not work. Conditions have changed since other governments went down the leasing path.
Mr Burke: So you won’t sell it?
Ms MARTIN: I would like the Leader of the Opposition to listen because its important. Obviously you did not understand at the time. So you do not listen to your mate, or you just did not understand. So, let me tell you.
Conditions have changed since three years ago when the previous administration actually looked at the sale of NT Fleet. These factors are – do you know about the GST? - the introduction of the GST, which removed the public sector’s advantage through the previous sales tax exemption; a change in the tax treatment for replacement assets – I am sure the then Treasurer spelt it out to you; lower company tax rates so that lessors no longer get the same tax advantage from deductability of interest and depreciation; a reduction in prevailing interest rates, further lowering the tax saving available to lessors; and increasing use of finance leases rather than operating leases which are treated as debt of the lessee. A whole range of factors, and yet none of them considered before the announcement was made of the sale of NT Fleet in the last budget.
Fundamentally, the decision to include the sale in the budget was premature, it was ill-conceived and, I would add, deceitful. The decision had more to do with the precious government’s deceitful budget processes. The Treasurer picked a budget bottom-line and sent Treasury away to publish the results, making whatever adjustments were necessary along the way. There was no assessment of whether the measures involved made sense or were in the Territory’s long-term interest. It was simply a ploy to get through the election and it was another CLP fraud on Territorians.
Capital Works – Counter Cyclical Program
Mr REED to MINISTER for TRANSPORT and INFRASTRUCTURE DEVELOPMENT
Madam Speaker, Labor has said it will adopt a counter cyclical capital works program. I would like the minister to advise the Chamber what he thinks this is and how it will work, and how will the minister predict the cycles and how then, in turn, will he respond to them?
ANSWER
I welcome the question from the former Treasurer and now the shadow spokesman. What we have is a question that the shadow minister is asking of a government and a minister who has been in for some six weeks. Nevertheless, the capital works program we have inherited, as you understand - and we have made it quite clear to you that when we start balancing the books, the books that were handed over to us by your previous government …
Mr REED: A point of order, Madam Speaker! The point of order is that it has nothing to do with the capital works program per se as it currently exists. The question was related specifically and directly to the fact that Labor had a policy of a counter cyclical program for their capital works programs in the future, and would the minister be able to explain what that policy is, how it will work and how he is going to predict the future as to how it will be applied.
Madam SPEAKER: We know the question. Minister, would you please address the question.
Mr AH KIT: Madam Speaker, I am addressing the question in the sense that the question relates to the budget deficit that we have inherited. The budget deficit that we have inherited, for capital works, as our election promises …
Mr REED: A point of order, Madam Speaker. It has nothing to do with budget deficits or capital works programs. It has to do with Labor policy.
Madam SPEAKER: That is not a point of order.
Mr AH KIT: The capital works program, as we promised, will continue. We have inherited a budget deficit. The cycle is there in place. We are reviewing the operations of the previous government and when we do that, we will have in place a program that will work, and work effectively. We have inherited a lot of headaches from the previous CLP government, and there are a lot of rules that they applied that are no longer relevant. We have, in the previous six weeks, had to go back and have a look at many of those. What we are doing is, we will put together a proper capital works program that can be funded accordingly. At the moment, we have a budget deficit problem that we have to get on top of.
Mr REED: A supplementary question, Madam Speaker.
Madam SPEAKER: What is your supplementary question?
Mr REED: The answer that has been provided by the minister has nothing to do with what happened in the past. It is all to do with Labor’s policy that they took to the election and could we have it explained.
Madam SPEAKER: We know that. Do you have another question? No - no supplementary question.
Inherited Financial Liabilities
Mr McADAM to CHIEF MINISTER
Why are the high levels of financial liabilities the Territory government has inherited such a problem?
ANSWER
Madam Speaker, as the question was asked, I thought of the words of the now Opposition Leader which were, ‘spend, spend, spend’. I hope as you fall asleep at night you think about ‘spend, spend, spend’ because what you have left for Territorians is a debt now at $500 000 in interest that we pay every single day, and a debt that, under the previous administration and his Chief Ministership, was a deficit that was never an honest one. It was always massively understated, year after year.
Let us talk about the liabilities. As I outlined in my report this morning, Professor Percy Allan found that net debt and unfunded employee liabilities of the Territory were set to grow …
Mr Burke: What do you think? We have all heard about Percy, what do you think?
Ms MARTIN: I think this is important that the opposition listens to this - were set to grow to $3.3bn by June 2005, or 146% of estimated total revenue.
Of course, these liabilities do not have to be paid up in a single year, and I am not saying they are. But the ongoing costs in terms of interest and superannuation payments do have to be paid each year. Or didn’t Mike tell you? In 2000-01, these combined costs were $212m, and this amount is set to rise in the coming years. This is around half the annual health budget. So, the liabilities of those two is half the annual health budget and 60% of the education budget. Alternatively, it is about 70% more than we spend on police protection every year. The more we spend servicing debt or paying out the entitlements of our employees, the less we can spend on what Territorians really want, and that is on job creation, better health and education.
Not only did this CLP government, under the member for Brennan, utilise the Bankcard, it has taken it to the Territory’s absolute limit. The Under Treasurer’s own words were: ‘We have an unsustainable budget situation’. There is no reserve in emergencies, and there are fewer options for dealing with the collapse of things like Ansett, or the decline in tourist numbers. It took 23 years to get to this point and a new government, very sadly, cannot reverse it in a day. But we are determined to do it.
The next government of the Territory will have an open and transparent fiscal framework, something to work with – sadly, something we did not inherit after 26 years of the CLP.
Madam SPEAKER: Before we do continue I just remind members, including the Chief Minister, that you do not refer to people in this House by name, you refer to them as the member for whatever electorate. It may have been a slip, but I do not want you to start getting into that sloppy habit already.
Capital Works - Sealing of Mereenie Loop Road
Mr ELFERINK to MINISTER for TRANSPORT and INFRASTRUCTURE DEVELOPMENT
My question pertains to a commitment in the current budget of $8.472m to seal the Mereenie loop road from Hermannsburg to Kings Canyon. Can the minister give an unequivocal, unqualified undertaking that that money will be spent on that road and that project this year?
ANSWER
I welcome the question from the member for Macdonnell. We are conducting a review in regards to the work that is to be done on the Mereenie loop road. You have to understand the over-commitment that your government gave in regards to approving of capital works, and not putting the dollars alongside those in the program. So, what we have is a situation where we are working towards ensuring that the funding for the Mereenie loop road will be available. At the moment, the situation is one where it comes back to the budgetary situation and the deficit that we have inherited. Of course, we need to ensure that our budget is in place, and in place properly. That will allow us to continue to fund the capital works program.
Mr Elferink: A supplementary, Madam Speaker.
Madam SPEAKER: No supplementary. I think he has answered the question.
Mr Stirling: Madam Speaker, I just point out this is the Legislative Assembly of the Northern Territory, not the Senate in Canberra where I think these members have lost the plot on supplementary ...
Madam SPEAKER: I think I have ruled on that. There is no supplementary because I think the minister answered the question.
Mr Burke: This is questioning on your ruling.
Madam SPEAKER: No he was not, he was asking a supplementary.
Comments of Former CLP Senator
Ms LAWRIE to TREASURER
Is the Treasurer aware of comments made by former CLP Treasurer, Senator Grant Tambling, at the Darwin Press Club recently?
Mr Burke: Treasurer? When was he ever Treasurer? Was he Treasurer?
ANSWER
I don’t know, Grant is many things, but he is no longer a member of the CLP, I suspect.
Members interjecting.
Ms MARTIN: He had a few kind things to say about you. I thought we would have a look at some of the comments that Grant Tambling had to make about the previous administration, and exactly what he thought of you. I think some of you were there when Grant Tambling addressed the Press Club on 11 October. He said, about your financial management: ‘Four years ago the CLP had a balanced budget, money in the bank, railway reserves and glowing economic prospects.’ So, for a moment, Grant was on your side, going well.
He went on to say: ‘We now have an unbalanced budget … Hey, an unbalanced budget! ‘… an unbalanced budget requiring dramatic surgery, no money in the bank and prospects shot to hell’. The truth is that the previous government left the budget in tatters. The budget has got a hole in it bigger than Burke’s backyard. These are Grant Tambling’s own words - an insider, a long term member of the CLP. He said: ‘The previous Treasurer and Chief Minister oversaw the deficit and dissipation of the Conditions of Service Trust amount to hundreds of millions of dollars’. He said, and rightly so: ‘It left the Northern Territory no fall back position, no cash and no insurance against the loss of jobs from unforeseen circumstances’, and he mentioned the Ansett collapse and the 11 September disaster.
That is a solid condemnation from the mouth of one of the opposition’s own. They have to wear it, and it must hurt, and we are seeing the squirming that takes place. Evidence that the opposition created a budget black hole when they were in government is contained in Professor Percy Allan’s report, and now given a tick by one of your own. It is recommended reading for all Territorians, and I thoroughly recommend it to the opposition. It is very sad that the Opposition Leader would not take the opportunity to have a briefing. At any time you want that briefing, Professor Percy Allan is available, because this is an independent and very expert assessment of how the Territory budget was left by you, bequeathed to Territorians.
It really is a shame that the Opposition Leader would not take that briefing, because I believe he would have learned a lot from it. He would have learned what Territorians now know, that there is a huge hole in the last budget, and it is as big a hole as is the one in the opposition’s credibility.
Mr Burke: You claimed that it was twice as big at the budget reply long before the elections. So do not show surprise now. Go to the Hansard and read your own words.
Madam SPEAKER: Order, order!
Ms MARTIN: $12m was the forward estimate that you put in the budget papers.
Mr Burke: What did you claimed $153m in the budget reply.
Ms MARTIN: Oh, it was just a joke, was it? Perpetrate a little joke on Territorians: ‘Whoops, did we give you the wrong figure?’. It is defrauding Territorians, it is a misrepresentation. It is a black hole, it is what you bequeathed to Territorians. I table a copy of Senator Tambling’s speech notes. I think they will make very interesting reading for the opposition.
Capital Works - Spending
Dr LIM to CHIEF MINISTER
I was going to direct this question to the Minister for Transport and Infrastructure Development but, based on a couple of answers he has given, I should direct this to the Chief Minister and allow her to assist her minister.
Businesses out there are facing bleak times, difficult times. There is a slowdown of business, and business people are saying that the Labor government is sitting on its collective hands, that the government is blaming everyone - blaming the former government - instead of getting on with the job of governing and encouraging business development. Just in case the Chief Minister has not noticed, local businesses out there are battling, doing it hard. In the face of these bleak times, can you confirm that the government’s capital works spending is proceeding in a business-as-usual fashion and that it is not affected by Labor’s mini-budget processes, both in terms of timing of projects and the money budgeted?
Mr STIRLING: A point of order, Madam Speaker!
Madam SPEAKER: I think he has asked the question. That was your concern?
Mr STIRLING: I wanted to point out that ministers have been very sharp and quick in their responses. This question is as long as any answer any minister has given this afternoon.
Dr Lim: This question is very precise. Why don’t you sit down and let the question be answered.
Mr STIRLING: We are prepared to give short, sharp answers to questions. At least get your questions right.
Madam SPEAKER: Leader of Government Business, resume your seat.
Dr Lim: Shall I repeat my question?
Madam SPEAKER: No, I think we have heard enough from you.
ANSWER
The longest question for this sitting so far. The capital works - if I take a step back. When we went to the last election we said: ‘We will honour all capital works commitment made by the previous administration’. That is what we are doing, that is very much what we are doing.
We have some major capital works projects that are currently underway, and I am sure you are all aware of them - the Darwin Hospital, the Alice Springs Hospital and the second stage of the port. The tenders have been let. Make no mistake, the dollars are out there; the dollars are working for Territorians and they are working for all those in construction. Very sadly, each time we turn another page over from the record of the previous administration, we are finding, increasingly, projects that have no cash against them, and this is a real indictment. I warn the opposition, you will be hearing more about this, because that again is another fraud that has been perpetrated on Territorians.
To respond to another point that the member for Greatorex made - business is very enthusiastic about our development summit. Business has said: ‘This is what we want. We want a chance to be engaged by government. We had the cloth ears for too long, who never listened to us. This is an important event; this is moving business forward and it is certainly moving the Territory forward’.
Proposed Soccer Stadium at Marrara Sporting Complex
Mr BONSON to MINISTER for SPORT and RECREATION
Minister, the previous government promised a soccer stadium at Marrara with a price tag of $4.5m. Was this just another CLP hollow promise?
ANSWER
I thank the member for Millner for his question. Indeed, what was this promise based on? We saw loud announcements made during the election. We saw $4.5m pledged to the soccer bodies in the Northern Territory. They were very excited about it, they actually believed you. Then, when we went looking around the budget, where you were going to get the money from - where were they going to get the money from? From the bottom of the black hole, probably. What we have now is a whole code of sport in the Northern Territory, who have a whole lot of expectations that have crashed to the ground. Now, you guys have got form on this. You guys have got form on this broken promises lark.
Let us have a look at the stinger-free beach episodes that you foisted on the Territory public for so long. Here we go - 1993, ‘safe beach for Darwin, $1m plan’. That was Max Ortmann shortly before he took up his career as the Darwin strangler. In 1997, again, ‘$50 000 stinger net plan for Cullen Bay’. That was Fred before he got out, had the good sense to get out before you guys crashed to the ground. Then 1999, ‘city beach at top of town plan list’. So here we go again. Yet again, ‘$15m plan for a no-nasties beach’. Why would anyone believe you people when you make the sort of promises you did in the last election?
What we have out there is a code of sport, right down to junior soccer players, who have been led round the garden path by the CLP. They were made promises, they based their plans on promises. All the volunteers who have kept that sport going for years - we have had to tell them there is no money, no funded area that we can deliver on that promise. What we can deliver on, though - we are going to get them out of that rat-infested donga that they have been carrying out their administration from for the last however many years. We will get them into Sports House, we will give them decent office accommodation to run their sport from. We will help them in practical ways to get in with other codes around the Territory. We will help them with their internal youth development programs. That is what we can deliver. That is what we have the money for, not for these broken promises from the other side.
East Arm Port Facility Tender
Ms CARTER to MINISTER for TRANSPORT and INFRASTRUCTURE DEVELOPMENT
Madam Speaker, can the minister explain why a tender for stage 2A of East Arm Port, worth more than $30m, has not been let, despite the tender closing on the 5th of last month? For the minister’s information, I am referring to tender number T011525 for the construction of a 110 m wharf extension and bulk liquids birth, and not the tender awarded by the previous government for the other stage 2 work on 30 July.
I seek leave to table documents relating to this project obtained from the government’s own web site that shows this tender has not yet been let.
Leave granted.
ANSWER
Madam Speaker, the response to tenders for this project, as I understand, are currently being evaluated. I thank the member for her question.
The question is not asking me, I hope, to circumvent the requirements to have tenders evaluated thoroughly and fairly. Those kind of practices may have occurred under the former administration, but I can assure the member that nothing like this has changed …
Mr BURKE: A point of order, Madam Speaker! The allegation the minister starts off his comments with is that tenders were not decided and assessed fairly.
Madam SPEAKER: What is your point of order?
Mr BURKE: Well, the point is it is an unfair allegation. If he wants to make a comment in that regard - he is talking about fraud, aided and abetted by government – let him do it as a substantive motion.
Madam SPEAKER: I do not think that was the intent of his comments. Perhaps the minister would explain again exactly what he is saying in his answer to the question. Give him a little bit of leeway, being a new minister.
Mr AH KIT: I would appreciate that, Madam Speaker, because they are jumping up too quick and not awaiting the answer that I wish to give.
Stage 2 of the East Arm Port development consists of two major projects. The first of these is the construction of the container terminal and railway embankment …
Mr Dunham: Yes.
Mr AH KIT: … and I am glad the member for Drysdale agrees. Work on this component of Stage 2 of the new port development is well underway and is due for completion at the end of October 2002.
The second component of Stage 2 of the new port development relates to a further extension of the wharf by 110 m and construction of a bulk liquids berth. As I stated at the outset, the tenders for this stage of the port development are currently being evaluated by the department, as I understand it.
I would like to comment briefly on the whole issue of capital works funding and its mismanagement by the former CLP government. NT Treasury have recently advised the government that the extent of underfunding of the capital works repairs and maintenance budgets announced in this year’s CLP budget is as high as $45m. This is equal to underfunding of an additional $39m on top of the deficit revealed in the earlier analysis of the CLP’s last budget, compiled by Treasury and Professor Allan. This is just one more consequence of the black hole left by the former CLP government. The government is working to repair the damage done by successive years of reckless Country Liberal Party financial mismanagement, but this situation cannot be turned around overnight.
Northern Territory Response to Terrorist Attacks
Mr KIELY to CHIEF MINISTER
In light of the recent attacks on the World Trade Centre in New York and the suspected biological anthrax attacks occurring in various parts of the United States, what steps has the NT government taken to prevent or limit the incidence of such an occurrence here, and how well equipped are we to deal with a terrorist attack in the Northern Territory?
ANSWER
Madam Speaker, sadly, a very relevant question. I think we have all watched or listened over the last few days to the scares about anthrax right around the world. As we are all aware, the hideous terrorist attack on the World Trade Centre on 11 September has changed the world’s security environment. All honourable members would have seen reports in the last several days on suspicious mail and packages received in Australia and which, of course, are associated with the US anthrax scare. I want to inform honourable members of the Territory’s response to the potential mail- and packages-borne threat.
In terms of the national response, the Prime Minister and others, of his ministers, have stated that the threat to Australia is low but that vigilance is required. We have all seen the dramatic footage of the hazardous materials response units at work in Sydney and Melbourne, and other places as well. Happily not one mail or package item to date has proved an actual hazard.
Here in the Territory there has been suspicious mail from the Middle East received in Katherine, Tennant Creek and Alice Springs. All of those letters have been inspected and, once again, thankfully, all harmless.
Our police have issued a public statement - which they did late on Monday - about the suspicious mail, and they did that for two reasons. Firstly, to alert Territorians that we were not immune to letter- or package-borne terrorist acts; and secondly, to advise the public that the threat is low, and that while people handling letters and packages should be vigilant, there was no need to be overly concerned or frightened. I can only repeat those sentiments.
The police have also advised the public of letter or package features, which the public should watch out for, and how to treat a suspicious item. The advice is not to open the item, to seal it securely in two plastic bags and then take it to the nearest police station. In terms of our public sector, detailed procedures were issued late yesterday to all staff. The Territory has the capability to respond to the various scenarios presented by mail- or package-borne hazardous substances, with the fire service obviously dealing with any larger incidents such as a significant chemical or gas hazard.
In any unlikely event of an anthrax attack in the Territory, our health services are well equipped. Anthrax is easily treated with antibiotics. Even the more severe infection through inhalation rather than skin contact can be treated effectively if picked up early enough. We saw a greater level of preparedness in Australia before the Olympics last year, and we certainly have a much better capacity to respond to biological attacks.
I must reiterate, the threat to the Territory is low, thankfully, but vigilance must be exercised and the Territory has the capability to respond to mail- or package-borne threats.
Capital Works – Education Sector
Mr MILLS to MINISTER for TRANSPORT and INFRASTRUCTURE DEVELOPMENT
My question arises out of concerns that have been expressed in the education sector. Can the minister deny that funding for capital works, minor new works, to schools and other assets has been cut? While the minister is explaining what these cuts are, can he also inform honourable members what other cuts have been made to minor capital works in other government agencies?
ANSWER
Madam Speaker, the capital works program in regards to the education budget, as I understand the question - I have not got the details on me. I will take that question on notice and I can come back to the member later on this afternoon.
Members interjecting.
Madam SPEAKER: Order!
Mr AH KIT: When questions are put in detail, looking for detailed answers, then, as the minister, I want to ensure that I give those answers to the proponent of the question. I will get back to the member later on this afternoon with a response.
Madam SPEAKER: New ministers need to be aware that if you do not have that information there, you can do just what that minister has done and get back to the Assembly later with your answer.
Ansett Collapse
Dr BURNS to MINISTER for TOURISM
Can the minister advise the Assembly of measures taken by the government to overcome the collapse of Ansett?
ANSWER
I thank the member for Johnston for his question, Madam Speaker. This collapse of Ansett occurred in the early hours of Friday, 14 September. I think at about 3.30 am they made that announcement. It came, of course, following the Tuesday horrific terrorist attacks on both New York and Washington.
I certainly felt the pinch immediately, as Minister for Tourism, because we saw, right from the beginning of that Friday, the loss in the first place with 147 Ansett staff here in the Northern Territory simply stood down. Some of the ways these stand-downs were handled by this company was simply abysmal. Ansett staff required to overnight away from their home locations were delivered notices under their door by hotel staff. I think that is unforgivable for an Australian company to treat their staff in that fashion. Other staff returning to home base late at night or in the early hours of the morning were told by baggage handlers as they came off that plane: ‘That is the last time you will get back on that plane’. Again, an unforgivable way for an Australian company to advise its long-serving and loyal employees that not only had they lost their job that morning, it was unlikely that they would be getting it back. Along with the 147 Territory staff immediately stood down, we lost about 43% of our interstate airline capacity.
Early that morning, this government formed an Aviation Task Force consisting of senior officials from Transport and Works, Chief Minister’s, Department of Industries and Business, and Tourism. The immediate charter for that group was to pick up the blockages where people and freight were stuck and could not get out, and get that moving. That certainly took a lot of focus over those first few days.
They then looked to the analysis of what the capacity that was being utilised into the Territory, based on last year, and what we needed to get back to reasonably cover the Territory’s needs in the weeks ahead. Of course, one of the difficulties was the collapse in the numbers of people travelling. Just in the case of - if we take a look at America alone, because we can all appreciate that the United States is entering a period of insularity, and no one can blame them for that. They were responsible, North Americans, for some 14% of our international visitation to the Northern Territory, and with the strength of the US dollar considerably more, in the impact overall of some $900m that flowed to the Territory economy last financial year through tourism.
When we look at last year’s traffic figures, they can only give a really rough guide in terms of what the need will be in the future. It has been difficult getting the certainty back in to the scheduling, certain enough to allow the public to have the comfort to know that not only are they going to get to their destination, they are going to be able to get back whence they came, when they want to.
Air freight capacity was similarly affected, particularly perishable produce. Australian Air Express now advise that all freight is cleared within that 12- to 24-hour period. The government also moved to work with the federal government because of the cabotage restrictions on Royal Brunei and Malaysia Airlines, to enable them to pick up domestic passengers and cargo through Darwin enroute to Cairns and Brisbane, to take some of the pressure off where seats were short. Whilst we put that pressure on early - and our predecessors certainly tried many times with the federal government to get that lifted - even given the situation with the collapse of Ansett, it still took a considerable amount of time for the federal government to lift those cabotage requirements and allow those foreign carriers to pick up domestic passengers. Even then, they gave us, initially, a few weeks which they later extended to 31 December, even though it was obviously required.
In relation to Groote Eylandt which lost its service overnight as well, this government, in conjunction with the federal government, facilitated Air North within a couple of days. More recently, we have looked at the Gove situation and assisted Air North to pick up a Brazilia and run a Cairns, Gove, Darwin, Broome route, four days a week initially. I would expect that if that is well utilised and used favourably, that that could move to a daily service.
The only other point in that was our approach to the administrator of Ansett: given that we had Ansett staff still without jobs, was it possible to get Ansett planes flying through the Northern Territory to pick up those people and get them back in work - on a similar basis to the package that was developed and agreed to with Virgin. It was flatly rejected by the Ansett administrator.
We will continue to work with all airlines, all approaches, all options, we are open. As they come across the desk we will try to tick them off, bearing in mind we have a busy period coming up with the Christmas flights and, of course, bringing people back to employment.
Repairs and Maintenance Contracts
Mr MALEY to MINISTER for TRANSPORT and INFRASTRUCTURE
Can the minister guarantee that no period contracts or ongoing contractual arrangements for repairs and maintenance of government assets have been modified. If he cannot give such a guarantee, can the minister advise honourable members what period or repairs and maintenance contracts have been changed?
ANSWER
Madam Speaker, another detailed question and I do not have those details in front of me. I can find those out for the member.
Members interjecting.
Mr AH KIT: I do not have those details in front of me. I will have to, as you did in the past, contact the Chief Executive Officer of the department with questions like that. In your time, you did have ministers who took questions on notice. In this particular case, I do not have the details of that. I have been in the position for five or six weeks and, unlike some of you, like the former Treasurer who was in the job for 12 years, I am not an expert, such as yourself. There are a few of us on some learning curves here. I am not embarrassed to say that. I will take your question on notice and get the detailed response back from my department as soon as possible.
Regional Bushfires
Mr McADAM to MINISTER for PRIMARY INDUSTRY and FISHERIES
The minister will be aware of the bushfires that are occurring in the Barkly and the central region. Can he inform the House what the government has done in relation to this very serious problem?
ANSWER
I thank the member for Barkly for his question. Indeed, it is a very serious matter. I think most people in this Chamber would be aware of the serious levels of bushfires we have had this season. I have taken a very strong personal interest in this. I have probably flown over or driven past and through more bushfires in the last several months than most people in this Chamber would have.
The situation, according to my department and certainly the pastoralists, is essentially that it is a very heavy fire season with about the same number of fires as normal but with a much higher fuel load. Because of this we are getting much more severe fires and much more widespread fires. That is what has made this year particularly different.
Before I go on into what we have actually done about it, I would like to pay tribute to the fantastic work that has been done by emergency services, the Bushfires Council, the pastoralists themselves and Aboriginal communities, in combating these fires. It has been all hands on deck, and there have been some quite heroic things done in terms of combating individual fires, whether they are out on the pastoral properties or whether they are around the urban centres, such as the severe fires we had threatening Alice Springs a few weekends ago.
We have taken a multifaceted action on trying to combat the particular problems we are having now. We cannot change the seasons; we cannot change the climate, although I will claim that I did make it rain in Alice Springs the day after we had the bushfire meeting, and it has rained ever since. So, at least we have some receding of the threat around that area. On 1 October, partly at the instigation of the member for Braitling - and I thank her for that - we called together a meeting of the relevant agencies in Alice Springs: the Bushfires Council; the fire services; the police; and the Cattlemen’s Association. The member for Barkly attended by phone and the member for Braitling attended as an observer at the meeting, although she had a lot to say, which was quite welcome.
The outcomes of that meeting were that we confirmed that we do need a public campaign on the mediation of these bushfires. In fact, for the people who are lighting fires - for example, Aboriginal people who are traditionally burning off country, tourists letting fires get away from them – it is really a matter of public awareness. We have to get the general public, particularly in the towns, to clear up around their properties and be a lot more careful about fire when we have the conditions of high wind and high fuel load and very hot, dry conditions. For the people out bush, Aboriginal people have certainly been approached, community by community, to try and slow down or be a lot more careful about the fire lighting. A lot of the fires have been lit along access roads to communities, so it is the sort of thing that is happening as people are coming to and from town. There needs to be a lot more awareness by all people - whether they are Aboriginal people in remote communities or urban dwellers, particularly around the fringe areas around our main urban centres - that these are particularly bad fire conditions at the moment and we are more than likely to get it again next year if we get another big Wet.
We are looking at continuing a Bushfires Council/CLC-funded video publicity campaign. I will certainly ask my department to extend the screening of those videos so that we are continuing to work on public awareness. The police have visited the pastoral properties that have been most affected by the fires. Alkedra is probably the worst that we have come across so far. There were stock losses and almost a total loss of groundcover over large areas of that pastoral lease. We will be working with the Cattlemen’s Association now to look at whether some relief payments are required for the loss of income, and we will follow up with the pastoralists, generally, on the practical needs they have coming out of this setback they have just had.
To deal with the last category of fire lighting, the fire bugs. There are certainly fire bugs operating around the urban centres. They need to be caught, wherever we can, and they need to be prosecuted. We will make sure that the police get on to that.
We are doing as much as we can. We are certainly very aware that this is a problem that is not going to go away. We are going to have to be as vigilant next season, probably, as we should be this season.
Capital Works – Berrimah Prison
Ms CARNEY to MINISTER for TRANSPORT and INFRASTRUCTURE DEVELOPMENT
If the government is to be believed in its claim that the current capital works program is to be honoured, can the minister explain why there has been no progress on constructing a new low-security facility at the Berrimah Prison? For the minister’s information, when the tender process initiated by the previous government closed on 22 August, the new government had received 12 offers to construct this facility. I seek leave to table this document showing that there were 12 offers.
Leave granted.
Ms CARNEY: When will this government get on with this project and create jobs for Territorians?
ANSWER
Madam Speaker, this is a classic example of what I was alluding to earlier in my answers. The previous government put projects on the program but did not allocate any cash to those projects. We have a situation here, might I tell the member for Araluen, that there has been no cash allocated for that building project. They - your colleagues - are the culprits to blame for that, because they were in government. They put it on there, like many other projects, and did not allocate the cash alongside those programs. That is why we have this predicament we are in. They continually promised Territorians projects, big and small …
Mr REED: A point of order, Madam Speaker! Government cannot tender jobs unless the money is ready to be spent. The money was ready to be spent because the item was tendered, and the question was, ‘When will the tender, which is now closed, be announced’?
Madam SPEAKER: The minister is answering the question as well as he can. There is no point of order. Minister, please address the question.
Mr Burke: Are you going to say your are not going to do it now?
Mr Reed: The money had to be there, it could be tendered. That is fraud on behalf of government.
Madam SPEAKER: Order!
Mr AH KIT: That is a bit rich coming from the ex-Treasurer, aided by some of his ex-Cabinet colleagues, in that this is fraud. This is not about fraud, this is about having an open, honest, accountable government for Territorians. That is what our election promises were about, that is what Territorians went to the polls about, and that is why Territorians brought a change about, because they have had enough of your arrogance and your fiddling with the cooking of the books.
Let me return to responding to the question about the capital works program. We have had a commitment by a Chief Minister, we have had an election promise. When the capital works projects have been approved, they will be delivered on, where the cash has been allocated for those projects, big or small. That is the commitment that we have - where the cash has been allocated to the program. We cannot continue to run up with the credit card.
One of the projects we have on the capital works budget is the Girraween Primary School, which is well underway …
Mr Burke: We did all that.
Mr AH KIT: ‘We did all that’. Of course, you did it all. You did the mess - you went with the Bankcard, the debts. Your continual promises …
Mr Burke: We let a tender and then we got a contractor and we started building it.
Madam SPEAKER: Order! Come on, there is too much backchat across the Chamber. The minister is on his feet, let him speak.
Mr AH KIT: Obviously, the Leader of the Opposition knows it all, because he did not take up the briefing about the financial concerns that our government is burdened with.
It is important for business and industry to be reassured that the government will honour our commitments. It is also important to recognise that the overall economy is down for a range of reasons, but the government has indicated it wishes to remain fiscally responsible, and seek to move its efforts across the financial cycle. The financial mess the previous CLP government left the Territory Treasury in needs to be addressed. We are considering every avenue to responsibly expand the funding for capital works in the current economic climate.
Members interjecting.
Madam SPEAKER: Order! Before we continue, there is a little too much backchat across from this side and that side, so shall we please control yourselves a little.
Law and Order Issues
Dr BURNS to ATTORNEY-GENERAL
Will the Attorney-General tell the Assembly what approach the new government will be taking in relation to offenders who trash homes?
Mr Stirling: There will be room for them too, don’t worry.
Madam SPEAKER: Leader of Government Business, I have just spoken to you about the cross-chat. Just behave.
ANSWER
Madam Speaker, I thank the honourable member for his question. With all the rhetoric that has flowed through this House regarding who is toughest about crime, it gives me great pleasure today to talk about legislation that is in train that will deal with crime in the way that the householders in the Northern Territory see crime.
Crime dealt with under the mandatory sentencing was so ill-defined that it came to someone picking up a can of drink from a park bench, to picking up a towel in the back yard, to who knows what. It became increasingly obvious that the previous legislation, and the way that it was working, was not picking up the key things that the householders and the business people in the Northern Territory were worried about. They are worried about people going into their homes and their businesses and trashing the place. Whether that is their business or home, whether it is the car sitting in the driveway or the car in the carpark of the business premises, it all amounts to the same thing. People are getting sick and tired of seeing their vehicles and homes trashed, and seeing their homes trashed around the times that their family - including their kids - might still be in that home as it is under attack.
This government believes trashing is a serious offence. This government believes serious crime deserves serious time. Under our six-point plan for property crime, the legislation this government will introduce, for the first time in the Territory and Australia, gives appropriate recognition for the seriousness of this offence. Trashing is different to criminal damage. In fact, trashing is often not about the value of goods or amount of damage. It is about the invasion and the interference caused to individuals, whether they be businessmen or householders.
This discredited mandatory sentencing regime did not recognise trashing. It lumped serious offences in with trivial offences. Trashing is serious, and under this government it will have its own category of offence - home invasion - which will be considered an aggravated property offence. I commend the bills that I will be bringing forward to this House, and I hope we receive some support for them from the opposition.
Capital Works and Maintenance Program
Mr REED to CHIEF MINISTER
My question relates to the importance that the government’s capital works and maintenance program plays in the Territory economy in driving the economy and creating jobs. She has said that the capital works program already in place will be adhered to - and she said that many times in here and publicly - yet today we have heard from her minister that the $30m port project, stage 2A, tenders for which closed some six weeks ago, has not proceeded. We have heard that the Berrimah gaol contract that was tendered, and tenders closed eight weeks ago - nothing has happened. We have heard, of course, that the Mereenie loop road - notwithstanding the Chief Minister’s assertions that the capital works program is in place – is, in fact, under review and is not proceeding.
When will the Chief Minister get away from the nonsense about what happened in historic terms, and start creating jobs for Territorians by proceeding with the capital works programs, which she says are in place, which her minister on the other hand contradicts her and says are not in place, but under review or been scrapped?
ANSWER
I am surprised that the Deputy Opposition Leader can stand and ask a question like this, because he should be ashamed of himself, absolutely ashamed. Let me get down to some detail here. From the Deputy Opposition Leader’s mouth, let us go to that project for the Darwin gaol, for the low-security area. Tenders closed eight weeks ago. Tenders went out in the run-up to the last election, and this was typical of what the CLP did. In a frenzy of ‘anything will go if we can win this election’, an absolute frenzy of anything will go, tenders were called for. Tenders were called for and tenders closed eight weeks ago. But, in the fraud that is continually perpetrated by that previous administration on Territorians - and we saw it in their budget, and we are seeing it every time we lift another lid on the detail of what happened in that budget - there was no cash allocation against that.
There was no cash allocation - that is an absolute disgrace. Tenders were called for when there was no cash allocation. We have seen this over years. We have seen this over years, because what we have had happen - and we have seen it in previous years from the previous administration – is there were all these projects promised and was there a cash allocation against it? Not a skerrick! ‘Let us just make a big list. Let us just perpetrate a fraud on Territorians and particularly perpetrate a fraud on Territory businesses’.
We made it very clear that we will honour all commitments. We will honour all commitments, and I do believe that the then government read the Access Economics document that we went through extensive time and effort with - so that our promises were properly costed, unlike yours, which were the greatest lot of rubbish and we are just seeing it continually. Our commitment was that the capital works that had been committed would go ahead. An absolutely iron cast one. But we have seen a fraud from this administration, from the CLP, promises made without cash allocation.
The port will go ahead. The port will absolutely go ahead - a fundamental piece of our infrastructure – yes, it will. We have had the most hypocritical previous administration in this Country Liberal Party, who went to the last budget and said: ‘We have a forward estimate for this year of a $12m deficit’, and it was within seconds that that changed to $107m. The fraud perpetrated here is the one that this government is now dealing with. I am honestly taken aback at the hypocrisy that we would see the kind of questions asked that you are - talk about leading with your collective chins.
Mr DUNHAM: A point of order, Madam Speaker! The word fraud has been used frequently in this debate and I ask your guidance as to whether it is an acceptable word to be used in the Chamber.
Madam SPEAKER: I did hear that word fraud and I believe in the context of what it was used it may be acceptable. I would caution the Chief Minister not to use it too freely in the future.
Mr STIRLING (Leader of Government Business): Thank you, Madam Speaker. I would like to point out that the first Question Time under this government produced 17 questions. The hour has come and gone and I ask that further questions be placed on the Question Paper.
ANSWERS TO QUESTIONS
Capital Works - Education Sector
Capital Works - Education Sector
Mr AH KIT: Madam Speaker, I respond to the question that was asked by the member for Blain in regards to the Department of Education capital and minor new works. My answer is there will be no cuts to the Department of Education’s capital and minor new works programs. The program, as approved, is proceeding. It is interesting to note that since the budget was allocated a new item has been added to the program, Ramingining School, and part of the school has burnt down and it that will be rebuilt in time for the new school year 2002. $1.2m has been allocated. The tender has been let and work has commenced.
Capital Works – Counter Cyclical Program
Mr AH KIT: I also respond to the question that was asked by the member for Katherine in regards to the counter cyclical budgeting.
Mr Reed: Oh, you know what it is.
Mr AH KIT: I said I would get back to the members. Do you want to hear the answer or not? You have spent a lot of time putting the question together, I would think that you would like to hear the answer.
As we understand it, the budgeting means government is spending a lot more on capital works when the economy is flat. It is the boom and bust cycle that we all become accustomed to at one time or another, and this obviously fills in the pot holes in the private sector expenditure area. The current capital works program, as we said many times today, is on track. We are 30% through the year, we have spent 30% of the capital works budget.
Last updated: 09 Aug 2016