2011-05-03
Budget 2011-12 – Return to Surplus
Mr MILLS to CHIEF MINISTER
This is a budget of debt, deficit, and deceit. Can you explain why you have broken your promise to the people of the Northern Territory by not returning the budget to surplus in forward estimates?
ANSWER
Madam Speaker, this budget provides for jobs, businesses and families across this Northern Territory. As the head of government, I make no apology that this budget has gone into deficit for the first time in nine years.
What the Leader of the Opposition navely does not understand is that, two years ago, we had a massive, significant and unprecedented global financial crisis. This financial crisis has hit Australia as it has hit other nations. Our nation responded well, but we are still suffering the consequences.
The main reason this budget is in deficit, as announced by the Treasurer today, is to do one thing and one thing only: protect jobs in the Northern Territory. The GST national pool has been cut significantly. We had a choice to make in framing this budget. We either slashed our own budget - which would have meant slashing infrastructure expenditure across the Northern Territory, our A Working Future towns, our regional towns, our capital city of Darwin - or sack thousands of public servants who provide services to Territorians. We are not going to do that.
The Leader of the Opposition will have an opportunity tomorrow to say, if he does not believe we should have a $295m deficit as a result of this budget, where he is going to find $295m-worth of savings. What infrastructure projects would he cut and how many thousands of public servants would he sack to bring the budget into surplus?
This is a budget about jobs and for families across the Northern Territory. At the budget lunch we have just attended hosted by the Chamber of Commerce, Senior Economist at National Australia Bank, David de Garis, an independent, well-respected commentator, in his evaluation of the budget said: ‘The NT has it right with the balance between economic and social objectives’. He pointed to our financial position and ’our responsible, modest cash deficit’. It is responsible because it protects jobs and families. It is a responsible cash deficit.
Madam Speaker, we have taken a very deliberate decision as a result of a significant reduction in GST revenues to the Territory.
Budget 2011-12 - Key Features
Ms WALKER to TREASURER
Can the Treasurer please update the House on the key features of Budget 2011-12?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. This budget is about helping families get ahead and deal with cost-of-living pressures. It has the most generous concessions in the nation embedded in it.
Importantly, it builds on our economic opportunities to position the Territory for the next phase of our economic growth. It delivers better hospitals, better schools, better roads, and more housing. It drives our economy with that critically important $1.5bn infrastructure investment to support 3000 jobs. The payroll tax cuts will save Territory businesses $6.6m a year to support those all-important jobs in small- and medium-sized enterprises. We maintain our position of being the lowest-taxing jurisdiction in the nation for small and medium businesses, a record we are justifiably proud of.
It delivers BuildBonus, a $10 000 grant to buy or build a new home, stimulating the building industry and helping Territory families buy a home. Homestart NT is expanded to help our low- to middle-income buyers.
There is a $633m investment in infrastructure to support A Working Future across the bush; a $530m infrastructure investment in housing, including fast-tracking land release; and $75m for new and upgraded urban public housing.
We are delivering quality and affordable education and health services with record budgets. There is a record police budget with 400 more police on the beat. We deliver on important reforms - the alcohol reforms, child protection service improvements, and that new era in Corrections.
Budget 2011-12 is a responsible budget. It is also a budget responsive to the needs and challenges of the Territory now, both economically and socially. We have made a deliberate decision to go into deficit to fund our infrastructure budget to protect and create jobs in an environment of reducing GST revenue. We know this is the responsible thing to do.
Listen to the economic commentators and the response from this budget. Everyone except the CLP understands where the Territory is in its economic and social cycle, and how this government is ensuring we have the economic and social drivers right in the budget outcomes. The budget is worth $5.3bn. It is financially responsible and sustainable. It supports families to get ahead, and it builds on our economic opportunities.
Budget 2011-12 – Return to Surplus
Mr MILLS to CHIEF MINISTER
Your Treasurer told the media she would today tell Territorians when the budget would be returned to surplus. Today, your Treasurer revealed nothing, instead delivering a budget of deceit, deficit, and debt. When will the budget be back in surplus to give Territorians certainty about the Territory’s economic future?
ANSWER
Madam Speaker, this is a budget that provides for jobs and businesses, and supports families across the Northern Territory. It does so responsibly with a deficit position the senior economist from National Australia Bank said today was a responsible and modest cash deficit. The budget paper very clearly shows a step-out path back to surplus in the out years. In the context of the global economy, the Australian economy, and the fact that we are so reliant on GST revenues, the step-out path is there in the forward estimates. Let us look at our plan that delivers for jobs, business …
Mr ELFERINK: A point of order, Madam Speaker! Standing Order 111. I ask him to answer the question: when will the budget be returned to surplus? What date?
Madam SPEAKER: Member for Port Darwin, resume your seat. Chief Minister, come to the point, please.
Mr HENDERSON: Madam Speaker, the step-out plan is very clear in the budget papers. Explicit dates in regard to returning to surplus will depend on the size of the national GST pull, and the fact that we have a modest cash deficit. When we look at the charts of various countries around the world and their financial positions, we are very well placed.
If we look to the opposition and their opportunity to respond tomorrow, last year in the Leader of the Opposition’s budget response, he said they would save $4.8bn over four years. Apart from sacking 800 public servants, he did not outline how they were going to do that, so he has to do that tomorrow. Since that time, they have made funding commitments in media releases of over $400m, with recurrent costs of more than $3m a year, without indicating at all how they would pay for that. It is very easy to be in opposition and to be critical, but you actually have to put forward an alternative, Leader of the Opposition. You have to put forward an alternative, not a magic pudding of ideas.
The challenge you have tomorrow, Leader of the Opposition, is to say what you would cut; what infrastructure projects would not proceed; which services to Territorians would be cut; and what subsidies would you cut in regard to the electricity budget. Maybe we could save - how much has that paid for, $70m a year?
Ms Lawrie: It is $820 per household.
Mr HENDERSON: Yes, $820 per household. Perhaps you would cut that budget. We know you would cut expenditure in the bush.
This is a responsible budget which protects jobs between major projects. It is a budget that is being applauded by business. The Leader of the Opposition, and the opposition, has no alternatives …
Madam SPEAKER: Chief Minister, your time has expired.
Budget 2011-12 – Helping Territory Families
Ms SCRYMGOUR to CHIEF MINISTER
Budget 2011-12 is good for Territory families. Can you please advise the House on how Budget 2011-12 helps Territory families get ahead?
ANSWER
Madam Speaker, I thank the member for Arafura. In government, we recognise the cost of living pressures on Territory families. The subsidies and concessions in this budget are significant, and the most extensive in the nation. We are providing concessions across health, education and training. Our subsidies to offset childcare and electricity costs, and to support senior Territorians and carers, are far above anything provided elsewhere in the country. This year, we will provide $61.3m to deliver an average saving of $820 per household on the cost of electricity.
We know the Leader of the Opposition has that in his sights in his savings plan. He and the opposition - certainly in their announcements to date - would not provide that $820 per household to ease the cost of electricity.
The $4.3m for the childcare subsidy saves over $1000 a year for a child in full-time care for the average family. That is very significant. Maybe the Leader of the Opposition wants to target the childcare subsidy.
The pensioner concession scheme - the most generous pensioner concession scheme in the nation by a country mile - has been increased this year by $1.2m to $16m per year. Maybe the Leader of the Opposition wants to hit the pensioners and take their concessions off them.
The homebuyer assistance, particularly the one-off grant of $10 000 for homebuyers who want to build or purchase off the plan - maybe he would not go ahead with that and save money.
We also have a range of schemes. Maybe he would introduce an entrance fee to Leanyer water park or the water park in Palmerston. Maybe he would increase the cost of motor vehicle registration significantly across the Territory, or introduce a land tax. They were considering introducing a land tax a couple of years ago to bring the budget back into surplus …
Mr Mills: That is not true.
Mr ELFERINK: A point of order, Madam Speaker! It is incumbent upon the Chief Minister to tell the truth in this House, and he is not telling the truth.
Madam SPEAKER: Member for Port Darwin, that is not a point or order.
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: I was pointing out that this budget delivers support for Territory families. To support Territory families, you have to dig into the coffers in a modest and responsible way, as we have done with this budget. The most important thing in supporting Territory families is to provide infrastructure spending and jobs – 12 000 jobs that exist in this economy today as a result of going into deficit, understanding you have to fund the deficit to support Territory jobs whilst we are between major projects.
This budget is supporting jobs, business, and Territory families. The Leader of the Opposition and the opposition have no alternatives.
Budget 2011-12 – Predicted Surpluses
Mr MILLS to CHIEF MINISTER
In 2008, you said we needed to enter into deficit to ward off the impact of the global financial crisis on the Territory. In your 2008-09 mid-year review you predicted surpluses for the 2009-10 budget and for future budgets. Today, in 2011, and through to 2015, it is a sea of red. What integrity can Territorians place on your budget process when you get it so wrong?
ANSWER
Madam Speaker, what the Leader of the Opposition does not understand is that our budget is substantially reliant on the GST pool and the collections of GST nationally. Regarding the budget papers, they are forecast with the best information we have at the time from the Commonwealth of GST collections that, ultimately, flow through to the states. When the Commonwealth alters those numbers, the collections and payments to the Northern Territory change as a result. It is very simple: if the GST pool goes down, the amount of money we receive in the Northern Territory also reduces, Leader of the Opposition. That has occurred principally as a result of the global financial crisis.
If we want to talk about debt, let us talk about the debt we inherited when we came to government, in the debt to revenue ratio. Under the CLP, it was 61%. In this budget, it is 32%. It is half of what we inherited. Regarding the modesty of the debt in the budget papers presented today, if we look at nett debt as a percentage of GDP - Australia, the Northern Territory, and there is the rest of the world. This is very modest and affordable, and it protects Territory jobs and supports Territory families.
Look at the estimated cash deficits for 2011-12 in the states of Queensland, New South Wales, Victoria, Western Australia, and South Australia - very affordable, very modest for the Northern Territory. I make no apologies for protecting jobs. I make no apologies for supporting Territory families. I make no apologies for providing tax cuts for small businesses in the Northern Territory to support them maintaining their workforce.
The challenge for the opposition tomorrow is to come in here and say what they would do differently. It is obvious they need to find $295m in cuts across the budget, so let them say what infrastructure projects they will not proceed with. There were 800 public servants in the gun last time. How many public servants would they sack? What tax cuts would they reverse, or what taxes would they increase to avoid going into deficit? That is the difference between sitting in opposition being critical and the government being out in the community responding to community concerns, and listening to business, families, and non-government organisations that are supporting families who are in crisis and understanding the needs of this community.
This budget provides for jobs, provides support to families, and provides support to small businesses. As the Chief Minister, I am very proud of the budget handed down today by the Treasurer.
Budget 2011-12 – Aged-care Facilities in the Rural Area
Mr WOOD to TREASURER
In the Northern Territory Economy Budget Paper, you say between 2001 and 2006 4457 people over the age of 55 have left the Territory. Notwithstanding the figures used are outdated, it seems many people are not retiring in the Territory. Could this be that many of these people are from the rural area and are leaving because the government has not provided aged-care facilities in the rural area, or made land available for private retirement facilities’ investment; for example, in the Humpty Doo district centre? Why are there not any aged-care facilities in the rural area in this year’s budget? Are rural older people destined to retire down south or, even worse, disappear into the suburbs of Darwin and Palmerston?
ANSWER
Madam Speaker, I welcome senior Territorians coming into the northern suburbs of Darwin and Palmerston, because there is nothing wrong with getting closer to where the services are. That is actually a demographic norm when it comes to the movement of seniors in their retirement years and where they choose to retire in the private investment marketplace.
If you look at those opportunities, it has been under a Labor government, doing good work with the Masons at Tiwi and the Catholics at Fannie Bay, which has ensured they have the land to invest in private retirement villages. That did not occur previously; it has blossomed under Labor. There is no doubt there is a good cohort of seniors in the rural area who are choosing to live there at some distance to the core service delivery areas, and also some distance to our major health infrastructure such as the hospital. That is a choice they make.
Through the Seniors portfolio held by a colleague of mine, we have been looking at the viability of private retirement in the rural area. That viability, as you know, is not yet there. That being said, what the government invests in is ensuring, if we get an environment where a private investment opportunity arises, we will look at the land component. We have a track record of doing this with both the Masons in Tiwi and the Catholics in Fannie Bay. We have been sending that message clearly to the private retirement sector of land availability opportunities for the rural area, when it becomes an economically viable situation. Until then, we will continue to invest in the public seniors housing scenario, which is what a government should do.
This budget contains funding for the Bellamack seniors village construction. Equally, for those in Alice Springs, it contains that all-important Larapinta seniors village. We have a planning document that looks at opportunities for growth around those rural nodes. I do not see why growth around rural nodes should exclude the opportunity for a private retirement village.
When the economics stacks up, the private sector goes in. What we have currently is tightly constrained credit markets as a result of the global financial crisis, so private investment is not there. They are not stumping up because of the constrained credit markets. That is why the government is supporting the economic drivers through this budget’s high infrastructure spend, recognising the reality of the market is the credit constraints are still in place in private sector investment.
Budget 2011-12 – Economic Opportunities
Mr GUNNER to TREASURER
Can the Treasurer please update the House on how Budget 2011-12 builds on our economic opportunities and supports Territory jobs?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. The budget forecasts our economy to grow by 3.2% in 2011-12 on the back of increased construction, new major projects, and mineral and gas exports. This is slightly more conservative than the Deloitte Access Economics predictions. They predict the Territory’s economic growth to outstrip the rest of the nation in 2011-12 to grow at 5%.
The Territory emerged from the global financial crisis better than most economies. However, private sector investment has not yet returned to pre-global financial crisis levels. That is why our $1.5bn infrastructure spend is so important to maintaining a strong economy. Our record infrastructure spending has paid off, saving and creating jobs and fuelling our growth with those 12 000 new jobs created across the Territory since the global financial crisis. We have had the lowest unemployment in the country for the last 18 months.
Budget 2011-12 forecasts jobs growth at 2.8%. It forecast inflation at 2.8% in 2010-11, moderating to 2.3% in 2011-12. I indicated we would expect to see a spike regarding the food costs coming out of the flood and cyclone events in Queensland. We are forecasting increased private sector investment as the economy strengthens, and increased trade surplus reflecting higher exports. Central to a strengthened economy is a continued high public infrastructure investment to protect and create jobs. Ask a family whether they want a surplus or a job. I know the answer that family will give you. They will say: ‘We need the job to keep the roof over our head and feed our family’.
Our $1.5bn infrastructure program will support 3000 jobs. Our tax cuts will save business $6.6m and support more jobs. Housing stimulus through BuildBonus will support jobs across the building industry.
Budget 2011-12 is responsible, recognising the need for the Territory government to shoulder the stimulus in the economy ahead of the major projects on the horizon to meet the social needs of Territory families. It meets the needs of business through those payroll tax reductions through the BuildBonus stimulus, and we are building on the economic opportunities.
Budget 2011-12 – Increased Borrowings
Mr MILLS to CHIEF MINISTER
You have increased borrowings this year by a whopping $400m, from $2.5bn to $2.9bn. This is straight out maxing of the Territory credit card to help your re-election bid at next year’s Territory election. Will you admit you are mortgaging the financial interests and the future of Territorians to prop up your failing government?
ANSWER
Dear oh dear, Madam Speaker. As I have been saying when answering every question, the deficit we are in is there for one reason and one reason only: to protect jobs and, in protecting jobs, also supporting Territory families. I do not resile for one moment from taking the account into ‘a responsible modest cash deficit’ as described today by Senior Economist in national and international markets at the National Australia Bank, Mr David de Garis …
Mr Mills: ‘As far as I can tell with the little time that I have had to assess the budget’. Tell the whole story.
Mr HENDERSON: The Leader of the Opposition can say the sky is falling and the world is going to come to an end. The reality is this is about protecting jobs, supporting families, and a responsible and modest cash deficit.
I have held up the charts to show our position vis--vis the other states, the economies of Spain, Germany, the collection of G20 countries, the United States, the United Kingdom, Ireland, France, Portugal, Italy, Japan and Greece. Any of those major nations would love to be in the financial and fiscal position we are in, in the Northern Territory. There have been 12 000 jobs created since the GFC that would not have been created if the opposition had their hands on the fiscal levers.
In last year’s budget reply one new policy was announced by the Leader of the Opposition. Hopefully, he will have more than one tomorrow. It was a public housing super ghetto in the northern suburbs of Darwin adjacent to Marrara Christian College. It was the only announcement in last year’s budget from the Leader of the Opposition. It was absolutely caned by the community sector. Even the old Svengali of the CLP, Peter Murphy, called it an absolute joke. We have not heard hide nor hair of that particular policy announcement since then.
The Leader of the Opposition can run around saying the sky is falling, the world is coming to an end, but he has to put alternatives on the table. He has to demonstrate he has a plan. All we have is criticism, talking down the Northern Territory, and negativity from the Leader of the Opposition. No wonder so many people on his side are negative about his leadership.
This budget is about protecting jobs. As the Leader of government leading the Labor Party, I believe jobs are absolutely critical to every family in the Northern Territory. We have created 12 000 jobs since the GFC. This budget will protect another 3000 jobs and support small business to keep people employed in the Territory ...
Madam SPEAKER: Chief Minister, your time has expired.
Budget 2011-12 – Budget Commitment to Police, Fire and Emergency Services
Ms WALKER to MINISTER for POLICE, FIRE and EMERGENCY SERVICES
Can you please outline for the House the extent of the government’s commitment to Police, Fire and Emergency services in Budget 2011-12?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. This is a record budget for Police - an increase of 140% in the Police budget since Labor took office in 2001. This is about providing a safer community and giving the police the tools they need to do their job.
I have an idea for the Leader of the Opposition. A previous savings measure so beloved of four CLP budgets in the early 1990s was not to recruit one single police officer. You can find some money there. You can slash the Police budget and freeze expenditure on police, because you have done that before. Maybe that will be in the speech tomorrow: freeze the Police budget for four years, do not recruit one extra police officer. I am sure you can find some savings if you were to do that.
We have had an extra 400 police in our police force since 2002. In the budget this year, the forensic science branch will be boosted by $2.5m, with an extra $1.2m to expand the laboratories. We will fund the Police Beats to a tune of $7.37m a year. There are some savings for the Leader of the Opposition. We know he has a policy to close the Police Beats in Alice Springs, Casuarina, Palmerston, Parap, Nightcliff, and the northern suburbs. There is an additional $1.75m to maintain CCTV in Darwin, Casuarina, Palmerston and Alice Springs, and to expand monitoring of those. Significant initiatives in the budget include $1.5m for implementation of the police bans under the alcohol reform package, and $800 000 for nursing staff to be stationed at police watch-houses to provide an increased level of health screening for people in custody.
Let us look at the spending in the bush: $15m to continue works on the Gapuwiyak and Ramingining Police Stations as part of A Working Future; $9.4m for the Alparra Police Station in Central Australia; as well as funding of $12.3m for the construction of the new Berrimah fire centre.
This is about keeping people safe across the Northern Territory. It is about giving our police the tools they need to do the job. It is about improving the police presence across the Northern Territory with new police stations, and giving our fire services the new fire station they need to support Palmerston and the East Arm port.
In government you have to make responsible decisions. This is a very modest deficit; it is a deficit that is affordable. We have chosen to go into deficit in part to continue to fund new issues, new services for our police, on the back of eight surplus budgets in a row.
Tomorrow, the Leader of the Opposition will have an opportunity to provide his plan and, hopefully, it will be more than just a super ghetto for public housing in the northern suburbs of Darwin ...
Madam SPEAKER: Chief Minister, your time has expired.
Budget 2011-12 - Return to Surplus Date
Mr WESTRA van HOLTHE to TREASURER
In this morning’s newspaper, you said you would reveal when the budget would return to surplus. Today you have refused to make that announcement. Even the Commonwealth has put a date on when its budget will be back in surplus. Will you set a date for the next budget surplus and, if you cannot, why not?
ANSWER
Madam Speaker, that is simply a repeat of the question the Leader of the Opposition asked the Chief Minister as the first question. They will not really let the shadow Treasurer off the leash. We know there is a great cloud hanging over his head. The man lacks ethics and integrity. There are a whole lot of answers we are waiting to hear in that Ombudsman’s report.
I made it very clear to the media at the pre-briefing yesterday I would not state figures. I made it clear to them that the budget would show …
Mr Mills: All will be revealed tomorrow.
Ms LAWRIE: You were not in the room, Leader of the Opposition. You are showing your arrogance.
Mr Mills: I read the paper.
Madam SPEAKER: Order!
Ms LAWRIE: Yesterday, I made it very clear to the media in the room the budget would show we would be in a deficit position across the forward years of the budget. There are significant impacts in reductions in GST occurring - a $2.1bn write down by the Commonwealth in the GST pool for 2010-11.
The opposition has its head buried in the sand regarding the effects of the global financial crisis: significant soft consumption across our nation. We have a declining revenue position with the GST.
We also have to, at the same time, increase our infrastructure spend. That is where you get the combination of the two creating the deficit. I will show the real effect of the global financial crisis. It hits there; we step up into dramatically and significantly high infrastructure spends. Why? Because credit constraint has meant private investment is absent in the marketplace. When private investment peels off, even the International Monetary Fund says to step up public sector spending significantly and stimulate your economy. That is exactly what we have been doing through the high infrastructure spends.
The opposition would rather see Territorians go onto the unemployment scrapheap. You could shave the deficit tomorrow by simply shaving the top off your infrastructure spend, but that would be irresponsible. Business needs this infrastructure spend to keep people in jobs and keep construction activity high ahead of the major projects on the horizon. Business understands the importance of this infrastructure spend underpinning …
Mr TOLLNER: A point of order, Madam Speaker! If the Treasurer is not prepared to answer the question, maybe she might just want to sit down, and we can get on with questions.
Madam SPEAKER: Treasurer, if you can come to the point?
Ms LAWRIE: That is his normal leadership challenge; it happens every Question Time. At some stage in Question Time, the loneliest backbencher in the world gets up and makes an interjection to let his team know he is still there and still after Terry Mills’ job, because this guy is a leader with the time clock ticking.
The reality is, GST revenue is down, Infrastructure spend is up. I made it clear we would be in deficit through the forward estimates …
Madam SPEAKER: Minister, your time has expired.
Budget 2011-12 – Remote Indigenous Housing
Mr WOOD to MINISTER for PUBLIC and AFFORDABLE HOUSING
On page 110 of the budget papers, you state there is $216.4m in Commonwealth funding under the National Partnership Agreement on Remote Indigenous Housing. That funding is for new houses. What is going to happen to those people who do not live in growth towns? Is there any money for new houses in these non-growth town communities? What are you going to tell the people who live in places like Nauiyu, Peppimenarti, Milikapiti, Pirlangimpi and Palumpa? What is their future in relation to this budget and in relation to new housing?
ANSWER
Madam Speaker, was the member for Nelson referring to page 112?
Mr Wood: Page 110.
Dr BURNS: There is an explanation on page 112 for the key variations around the budget. I am not sure I caught all your question, but my response would be there is significant spending still going on through SIHIP, and you have witnessed that yourself. I believe it is a substantial investment. Yes, we could always do more. I believe we are doing what we can within our resources in collaboration with the Commonwealth. We will work with the Commonwealth through the next phase of the National Partnership Agreement. We will be delivering on our 750 new houses across the bush ...
Mr WOOD: A point of order, Madam Speaker! The main part of the question was what is the future in relation to new houses for those communities that are not growth towns?
Dr BURNS: I believe I have answered it, Madam Speaker. There is a schedule of works through SIHIP with ongoing works in various communities. I suppose it comes down to negotiation with the Commonwealth because the arrears in Indigenous housing - and I have said this a number of times on the public record - is much more than the budgetary capacity of the Northern Territory. We need to do this in partnership with the Commonwealth.
It is true that within the budget there is ongoing spending of the $50m for 150 new public housing dwellings, but they are in our major urban centres. It is a balance. There is great housing demand and also housing waiting lists, as you are aware, within our major centres. My focus as minister is to replenish that stock. I will continue that conversation within our Budget Cabinet and with my Cabinet colleagues. That is the way we have to go regarding the bush and, as I said, it has to be in negotiation with the Commonwealth.
Budget 2011-12 – Infrastructure
Ms SCRYMGOUR to MINISTER for CONSTRUCTION
Can you please detail the government’s Infrastructure budget for 2011 and the strategy to deliver key infrastructure?
ANSWER
Madam Speaker, I thank the member for her question. Let us start with the facts. Budget 2011-12 continues the Territory’s strong record of infrastructure spending. That has been outlined by the Chief Minister and the Treasurer in this House today. For a little statistical analysis, there has been a 300% increase since 2001 – 300%. It is all about building the Territory.
In this year’s budget as outlined by the Treasurer, there is $1.5bn to build the Territory’s opportunities - a massive spend. It is not only a massive spend, a strategic spend to deliver the real opportunities that are coming our way. When I say coming our way, it is about jobs and positioning our economy to get the best benefit out of our economic growth. We have been told by the Chief Minister and the Treasurer there will be 3000 jobs by upgrading key infrastructure, by strategic spending to leverage that private sector investment, and preparing the Territory for the opportunities that are coming with major projects in the private sector.
We are ensuring the Territory will get a benefit from that. Looking at some of the statistics about what we are doing, just this financial year, the Department of Construction and Infrastructure has managed a total of 2786 projects. That is a lot of cash and a lot of work. One of the stories that came out of last year’s budget was how you best protect jobs and feed an economy. If you feed the infrastructure budget, you feed the construction industry. The opposition continues to talk this down. However, that was outlined last year with a record infrastructure budget; this year, with a budget of $1.5bn.
If we look at the newspapers, as have been quoted on the other side, Deloitte Access Economics tips the Territory to be one of the fastest-growing economies in the nation over the next five years. This budget, positioning the Northern Territory to maximise those outcomes, does not happen by accident; it comes from hard work, planning, and a team effort on this side.
I highlight some of the important budget infrastructure commitments: $307m for roads - a 213% increase since 2001; $539m for housing; $143m to upgrade hospitals; $110m for education infrastructure; and $24m for land release.
An eminent economist mentioned today the balance between social and economic outcomes, strategic investment, a real plan - a plan I am proud of, as minister, and we are proud of …
Madam SPEAKER: Minister, your time has expired.
Budget 2011-12 – Nett Debt Increase
Mr WESTRA van HOLTHE to TREASURER
This year, on your non-financial sector balance sheet, nett debt is a shade over $2bn. By 2014-15, that will have nearly doubled to $3.85bn. Is it not a betrayal of Territorians to promise surpluses and lower debt, but deliver us debt to the tune of nearly $4bn?
ANSWER
Madam Speaker, I welcome the almost dorothy dixer from the shadow Treasurer, the member for Katherine. I will give you the tip: the clock is ticking on that shadow Treasurer.
Latest figures show the ACT has announced a cash deficit of $144m for 2010-11 and, for 2011-12, a cash deficit of $339m. The opposition still does not get it. They still do not get that jurisdictions across Australia have declining revenue: the GST pool dramatic contraction. They still do not get that jurisdictions across Australia have to spend to support their economy in those all-important economic drivers. They do not get that.
What you need to understand, when it comes to your deficit position and what it is doing to your debt position - whether it is your general public sector or your entire financial liabilities the shadow Treasurer is quoting – is it takes in your Power and Water Corporation debt, for example. You need to understand your ability to service that debt. We are predicting, for 2011-12, a nett financial liability to revenue ratio of 115%. That is less than the 131% we inherited from the CLP.
We are managing our way through a record investment. When you talk about nett financial liabilities, by capturing in the Power and Water Corporation record investment we are literally doing about a $1.8bn build across our power, water and sewerage system.
What are we doing? We are expending the money to close the Larrakeyah sewage outfall into the harbour. We are putting two new generators into Channel Island this calendar year so we have the reliability and redundancy in the system to keep the power strength for both the demand and growth that is coming. By putting in two new generators at Channel Island we will be able to take the six 25-year-old generators off-line through a cycle of repair for a rebuild on those generators.
The clowns opposite do not understand Power and Water Corporation’s investment in the infrastructure in the financial liabilities section of the budget debt, and our investment in the general government sector, is literally creating jobs and supporting Territory businesses. Ask Ross Engineering in Alice Springs what the Owen Springs Power Station build has meant to their business.
Alice Springs Hospital – Continuing Care Ward
Ms ANDERSON to MINISTER for HEALTH
Serious complaints against the Continuing Care Ward in Alice Springs Hospital have been brought to my notice. An elderly patient recently sustained a broken leg when a hoist failed. Prior to this incident, the family had concerns about rough handling of the patient, a lower standard of hygiene, and a lower level of response when the patient requested assistance. What is being done to improve service delivery care in the Continuing Care Ward?
ANSWER
Madam Speaker, I thank the member for her very important question. I would like to hear the details of this incident because this is the first time I have heard of this happening in Alice Springs, or at any other hospital. I will ensure it is fully investigated to find out what happened, why it happened if it happened and, if someone is responsible, that person should be punished.
Budget 2011-12 – Mr David de Garis
Mr MILLS to CHIEF MINISTER
I am quite puzzled why you do not seem to be in the slightest bit troubled by a monstrous debt; seeming to not understand that debt needs to be repaid. You are just defending something that is indefensible - from anyone who is in the private sector. Nonetheless, that seems to be the wont of Labor governments. You have selectively quoted Mr David de Garis to support your love of debt. Can you advise the House the name of the famous Australian Prime Minister and Treasurer Mr David de Garis once worked for?
Madam SPEAKER: Chief Minister, resume your seat. The Chief Minister can be asked questions regarding his portfolio; that is not a question relating to his portfolio. Leader of the Opposition, do you have another question?
Mr MILLS: Well, credibility and his general knowledge.
Madam SPEAKER: Do you have another question, Leader of the Opposition, otherwise we will move to the government for a question. No?
Budget 2011-12 – Record Health Budget
Mr GUNNER to MINISTER for HEALTH
Can you please update the House on the record Health budget for 2011-12 and what this means for Territory families?
ANSWER
Madam Speaker, I am very proud to be the first minister in the Territory’s history to have a Health budget of more than $1bn. That was last year. This year it is even bigger - $1.12bn. We are delivering more for Territorians, whether they live in the city or in remote areas.
We have delivered more frontline workers for the health system than ever before. Since 2002, we have employed 677 nurses and 208 doctors. To give an example, from 1996 to 1999 the Country Liberal Party dismissed 200 nurses.
This government provides a record budget for our hospitals: $315m for RDH, up 181% since 2001; $143m for Alice Springs Hospital, up 165%; $31m for Katherine; $23m for Gove District Hospital; and $13.3m for Tennant Creek Hospital. We are providing $14.6m under the National Partnership Agreement on Hospital and Health Workforce Reform program to further reduce waiting times in emergency departments and for elective surgery. The money we spend is money well spent.
The member for Greatorex always talks about outcomes, and I would like to give him some outcomes. Because of the money we are investing in health, we have seen a three-year improvement in life expectancy of Aboriginal women. We have seen a drop in the Indigenous infant mortality rate by 35%, and a life expectancy for people on renal dialysis now equal to the national rate, an improvement to their life of seven years. That not only applies to Indigenous women, but also to women living in urban centres. For non-Indigenous women, the mortality rate from cervical cancer has fallen by 64%, and by 92% for Indigenous women.
We have delivered $172m for primary health care. For alcohol treatment options, we now deliver $5.2m. The most important investment is in mental health services with an extra $7.8m over three years for suicide prevention strategies and enhanced child and adolescent services. Territorians deserve a very good health service. They deserve to receive the same service they would receive if they lived in Perth, Adelaide, or Sydney. We ensure we invest in our health service to provide this health service ...
Mr Conlan interjecting.
Mr VATSKALIS: I know the opposition talks about deficit. I remind them, in 2001 in their budget books, they did not have any deficit. They presented to this parliament balanced books. When we investigated after we came to government, we found a deficit of $127m ...
Mr Elferink: You manufactured that when you got to government. You fibber!
Madam SPEAKER: Order! Member for Port Darwin!
Mr VATSKALIS: I remind the opposition that they had instructed …
Mr Elferink: This is just ...
Madam SPEAKER: Order!
Mr ELFERINK: A point of order, Madam Speaker! It is incumbent upon all ministers to tell the truth when they come to this place. That answer is not the truth.
Madam SPEAKER: Member for Port Darwin, resume your seat! That is not a point of order!
Mr Vatskalis: Madam Speaker ...
Madam SPEAKER: Minister, your time has expired.
Debt Burden for Territorians
Mr WESTRA van HOLTHE to TREASURER
Last year, your nett debt plus employee liabilities left each Territory family with a debt burden of $100 000. This year, that same family is now carrying a debt burden to the tune of $120 000, which comes on top of increasingly strained household budgets and personal debt liabilities. Why are you and your government so determined to burden Territory families with more debt and more financial stress long into the future?
ANSWER
Madam Speaker, the shadow Treasurer simply does not understand the management of liabilities going forward and what your debt revenue ratios ought to be in the management of the liabilities. He probably needs an A to Z explanation of that.
Ask a Territory family what life would be like if they did not have a job today. Essentially, that is what you are proposing. You are saying stay out of deficit altogether, against the advice of the International Monetary Fund that said of the global financial crisis: private sector is going to strip away, and public sector spending needs to occur. That is the reality of what has occurred around our nation. Not only us, but every single jurisdiction in this nation has increased its deficit position because it needs to spend to support jobs.
Increasing your deficit position increases your debt liabilities. Obviously, you need to keep a close eye on your nett debt to revenue ratios and your financial liabilities to revenue ratios to ensure you have the ability to pay off that debt and ensure you can manage that. That is exactly where we are tracking. Independent commentators are describing our position as moderate. If you look at where we sit in what the projected deficits were around our nation, clearly, we are very moderate.
I have the Liberal jurisdiction of Victoria’s budget figures today. For 2010-11, their deficit was $1.6bn; in 2011-12, their deficit is $1.3bn. We are not Robinson Crusoe in the Territory. We are very moderate. Can we manage our debt levels and our liabilities going forward? Yes, we can manage those liabilities going forward. To do that, you look at your ratios.
I talked about inheriting a 61% nett debt to revenue ratio from the CLP. Responsible economic managers as Labor is, we then created eight surpluses in a row to drive that debt position down. We were well positioned to withstand the global financial crisis and be able to support our economy through our high infrastructure spend.
I will show that to you in a graphic term so you can start to, hopefully, understand it. The GFC hit and we had to dramatically step up our infrastructure spend to support jobs. The financial liability to revenue we inherited from the CLP was 131%. We have driven that down. In Budget 2011-12, we are predicting 115% ...
Madam SPEAKER: Minister, your time has expired.
Budget 2011-12 - Education Initiatives
Ms WALKER to MINISTER for EDUCATION and TRAINING
Can you please advise the House on what education initiatives have been funded as part of Budget 2011-12?
ANSWER
Madam Speaker, in the coming financial year, there is a proposed record spend of $930m on education. That is up from $886m in the previous year. It is a substantial spend; however, I believe we have the policy settings and the directions correct, and we have the right people to deliver it. I acknowledge we have major challenges within education in the Northern Territory.
We employed 400 teaching staff since 2002. In this latest budget, we announced $1.2m for an additional 42 teacher aide positions for Transition classes. The Australian Education Union, through the EBA, identified the need for more resources in the early years, and this budget delivers that. Every school in the urban areas in Darwin, Palmerston, Tennant Creek, Katherine and Nhulunbuy, will receive a teacher’s aide to work in Transition classrooms. For the Assembly’s information, teacher’s aides are already working in remote classrooms. We have also invested $1.1m in 50 specialist teachers to keep our top teachers within the classroom.
Today, we are debating issues regarding attendance. The budget also underpins that, particularly our Every Child, Every Day strategy and policy. There is $6.2m in Budget 2011-12 for programs such as the Clontarf Academy which is incredibly successful; wraparound services as part of the Alice Springs Youth Action Plan; and enrolment and attendance initiatives under the Every Child, Every Day strategy.
Education is important. Government, together with the community, has identified that in our 2030 strategy. I welcome the debate we are having today about school attendance. I believe education should be front and centre of our endeavours, and it certainly is in our budget expenditure.
Budget 2011-12 – Parks and Wildlife
Mr WOOD to MINISTER for PARKS and WILDLIFE
In the Regional Highlights, on page 17 under Litchfield and Palmerston, and again under Lifestyle and Environment, it says there is $7.71m for the Territory Wildlife Park and $1.5m to improve park facilities at the Territory Wildlife Park. I cannot find it anywhere, but can you say what the $7.7m is for? Can you show me anywhere in Budget Papers Nos 3 and 4 where I can find - and I have looked - the total amount of $9.2m please?
ANSWER
Madam Speaker, I thank the member for Nelson for his question. I am happy to get back to you after Question Time. There are quite a few areas in the budget books I need to look through. I am happy to take that on board and get back to you before close of business today.
Dr BURNS (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
Last updated: 09 Aug 2016