2009-05-05
Budget 2009-10 –
Impact on Delivery of Services
Impact on Delivery of Services
Mr MILLS to CHIEF MINISTER
In 2004, nett debt plus employee liabilities equalled $2.8bn. This figure is projected to blow out to $6bn in the next few years. That equates to over $100 000 …
Dr BURNS: A point of order, Madam Speaker! Standing Order 112(2) in relation to questions - should not contain statements, unduly long statements, arguments. I believe the member for Blain …
Members interjecting.
Madam SPEAKER: Order!
Dr BURNS: No, Madam Speaker, this is a very important point of order because last week we had in this place a whole range of questions which I believe contravened Standing Order 112. Members of the opposition should keep their questions in accordance with orders of this House. I ask you to consider this point of order I am raising today.
Mr ELFERINK: Speaking to the point of order, Madam Speaker! This process of framing up the structure around the question is well established in this parliament, and has been around for a very long time. Asking a question without any sort of background to the question would often render the question nonsensical. It is important to create a background upon which the question reflects.
Madam SPEAKER: Leader of the Opposition, I will allow you to continue, bearing in mind the standing orders. Last week there were some questions which were particularly long. I will allow latitude in this matter. You may continue, Leader of the Opposition.
Mr MILLS: Madam Speaker, it only has four sentences. Chief Minister, in 2004 …
Ms Lawrie: Why do you not ask the Treasurer?
Ms Purick: Oh, wait your turn.
Madam SPEAKER: Order!
Mr MILLS: I am asking the questions here.
Madam SPEAKER: Order! The Leader of the Opposition has the call.
Mr MILLS: In 2004, nett debt plus employee liabilities equalled $2.8bn. This figure is projected to blow out to $6bn in the next few years. That equates to over $100 000 for the average Territory family. Do you admit that this will harshly and adversely impact on the delivery of services to Territorians now and well into the future?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. Budget 2009-10 is about protecting Territory jobs. That is the fundamental framework that this budget has been cast in. At a time when we have a global financial crisis impacting on every developed economy in the world to an extent not been seen for 75 years and that has seen Australia move into recession, this 2009-10 Budget is about protecting Territory jobs.
After six surpluses in a row where, cumulatively over those surpluses, $380m-worth of surpluses, this government has delivered, we have taken the very deliberate decision to go into temporary deficit to fund a $1.3bn infrastructure program to protect Territory jobs, and to protect Territory businesses. That is what this government is all about.
The Leader of the Opposition can come here with some equations that he has cobbled together that I am sure my colleague, the Treasurer, will demolish in terms of the accuracy of his assertions. Fundamentally, the Territory government budget is very much like a household budget. Most Territorians understand that you do have to borrow money for significant investments. That is what we have done in this budget. In the same way that mums and dads borrow money to build a house, that is what we are doing.
It is about your capacity to repay. Do we have the capacity to repay the borrowings? Yes we do. Let us look at where we are today since 2001, over eight years of Labor government. We have turned the economy of the Northern Territory around. We have grown thousands of jobs in the Territory. We have run economic growth throughout our term of government, ahead of the rest of the nation. We have had population growth, ahead of the long-term averages, ahead of the rest of the nation. We have done that as well as retiring debt.
If we look at this chart, which is nett debt to revenue, this is about the amount of money coming in and the capacity to pay the debt as a percentage of that. In 2001, when we came to government, even with the last two CLP budgets that were in extraordinary deficits, the CLP could not run surplus budgets in good economic times. The rest of Australia was in an economic growth phase and the CLP ran deficit budgets.
In 2001, nett debt was 61% of revenue. That is what we inherited when we came to government. Today the forecast for nett debt in terms of percentage of revenue is 28%. We have significantly improved the fiscal books of the Northern Territory government.
We have done it at a time when we have also seen thousands of jobs in the Northern Territory, the strongest population growth for 20 years, economic growth, and private sector investment outstripping the rest of the nation. This budget is about protecting Territory jobs in what is the most difficult economic time that this country has faced in over 70 years.
Budget 2009-10 – Objectives and Challenges
Mr GUNNER to TREASURER
Can you please outline to the House the key objectives and components of Budget 2009-10 and the challenges you faced preparing it?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. There is no doubt the Henderson Labor government is acting now to protect Territory jobs and build the Territory. This is an unprecedented budget for unprecedented times. We are in a global recession and we face a savage collapse of GST revenue of $211m in the 2009-10 financial year.
Even though the Territory has so far stood firm against the economic downturn we are seeing nationally and globally, in Budget 2009-10 the Henderson government is investing a record $1.3bn in Territory infrastructure, an increase of 47%. This investment will create over 2500 jobs for Territorians. After six surpluses in a row, the government has made a deliberate decision to increase infrastructure investment and to boost our frontline services. To do that, Budget 2009-10 also contains record budgets for the Health, Education and Police portfolios.
To support businesses and households, Budget 2009-10 contains no new taxes or tax increases. To achieve these goals means going into a temporary deficit. To blindly attempt to maintain a surplus, even after six surpluses in a row, would cost jobs and damage the economy. Through stringent financial management, the government has mapped a clear return to surplus and a reduction in debt levels. I note that our nett debt ratio, as the Chief Minister said, in 2009-10 is forecast to be 28%. That is less than half the 61% we inherited in 2001 from the CLP.
The government recognises that we will have to make savings and do things differently and concentrate on core business. We definitely will not be slashing public sector jobs, unlike the CLP opposition. Their proposals would translate to a loss of 80 teachers, 170 doctors and nurses, and 40 police in the last year alone.
Mr Mills: Absolute nonsense. No one believes you. That is just not true.
Madam SPEAKER: Order!
Ms LAWRIE: These are the toughest economic times in generations. The Henderson government has acted now to protect Territory jobs, and is in a position to ensure that we capitalise when a global economic recovery occurs.
Reduction in GST Revenue –
Warning by Treasury
Warning by Treasury
Mr ELFERINK to the TREASURER
In 2004, Treasury warned you that GST revenues posed, and I quote: ‘A significant risk to the Territory’s budget position’. This warning has been repeatedly issued by Treasury again and again and again. You have chosen to ignore it in favour of squandering the billions of additional revenue. Do you acknowledge …
Dr BURNS: A point of order, Madam Speaker!
Members interjecting.
Madam SPEAKER: Order, order!
Dr BURNS: … Standing Order 112(2), so there are imputations and inferences and arguments within the member’s question. I believe it is not in concert with Standing Order 112.
Mr ELFERINK: Speaking to the point of order, Madam Speaker! I return to the comments I made before. If I ask this question in the absence of any background comment, the question would be nonsensical. You have to be able to frame a question.
Madam SPEAKER: I will seek some advice here.
Members interjecting.
Madam SPEAKER: Order! Member for Port Darwin, you may continue.
Mr ELFERINK: Thank you, Madam Speaker. Treasurer, do you now acknowledge that Treasury warnings are ignored, not at your peril, but at the peril of all Territorians? Isn’t it a fact that Territorians are paying for your foolish decisions in ignoring your own Treasury’s advice?
ANSWER
Madam Speaker, I welcome the ridiculous question from the shadow Treasurer because he simply and clearly does not understand the budgets.
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: If he turns to Budget Paper No 2, what he will see is significant increases in Special Purpose Payments and National Partnership payments to the Northern Territory. Why would that be? Because …
Mr ELFERINK: A point of order, Madam Speaker! The matter goes to relevance and we are talking about GST not NPs or SPPs.
Madam SPEAKER: Member for Port Darwin, the Treasurer has the call and is still on her feet answering the question.
Ms LAWRIE: Madam Speaker, why would that be? Because, historically, the Northern Territory has always been reliant for about 80%, if you look at GST slice of that last financial year it was 67%, but if you combine all the Commonwealth payments together, be they GST or specific purpose payments, we have always historically relied on about 80% of our budget coming from Commonwealth revenue. Clearly that means volatility in our reliance on the GST revenue coming from the Commonwealth. Every Treasury and every fiscal statement is going to point out the volatility of the Territory’s reliance on the Commonwealth.
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: They do not want to hear the answer. That being the case, Treasury must point out this volatility on the reliance on GST revenue, and what are we seeing? We see the collapse in GST revenue as a result of the global financial crisis, as a result of the economic downturn. What has this Territory government done in the last few years? We have increased our special purpose payments and national partnership agreement payments coming from the Commonwealth so we are far less reliant on the GST today than we were previously.
An example of this is that in the 2009-10 Budget GST revenue from the Commonwealth is dropping from 67% to 55%. An example of this in the figures I announced today is that the collapse in GST revenue is going to equate to about $986m in GST revenue losses to the Territory. But what will we do in that time? We will absorb a deficit to increase spending on infrastructure; $1.3bn to protect Territory jobs, to stimulate the economy which will be positive economic growth across all the forward years when the rest of the nation is lucky to find any positive growth whatsoever.
We are spending more in Territory investment and infrastructure than the Commonwealth is, through our own sources. We have a very small revenue base; it is about 20% of the total revenue from the Territory. As a result, we will always be volatile to the Commonwealth revenue fluctuations and changes, which is what we have seen. However, we have secured those long-term five-year agreements and special purpose payments - increases across all those special purpose payments – and we have also secured national partnership agreements across the forward years.
Budget 2009-10 – Emphasis on Jobs
Ms WALKER to CHIEF MINISTER
The Treasurer has said that Budget 2009-10 is a tough budget for tough times focused on protecting Territory jobs. Can you explain why the government has emphasised jobs in the budget?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question.
Members interjecting.
Madam SPEAKER: Order!
Mr HENDERSON: The Leader of the Opposition obviously thinks that protecting Territory jobs is some sort of a joke, and something that government should …
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: He sits there inanely chortling away as if this whole budget process is some sort of joke ...
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: That is the level of importance the Leader of the Opposition places on this particular process. Budget 2009-10 is about protecting Territory jobs - Territory jobs today, tomorrow, and into the future. There is nothing more important to Territorians than protecting their jobs.
We have had to frame this budget in the toughest of economic circumstances. Members opposite must be living in a cave if they do not understand this: economic circumstances have never been tougher in over 70 years in terms of economic collapse …
Mr Mills: You made it worse.
Mr Tollner: You made it worse; you have compounded the problem.
Mr HENDERSON: I will pick up the interjection from the Leader of the Opposition and the shadow Business minister. I will not repeat it because it just goes to show how little they understand.
We have just delivered Budget 2009-10. We are going to have economic growth come in at around 4% - 4%, 4.1% - when the rest of the nation is heading to a collapse in their economies and negative numbers in GDP growth. We are also forecasting - and these are just not Treasury forecasts, Northern Territory government forecasts, but Access Economics forecasts - economic growth around 2% next year when the rest of the world will be: Japan, minus-6%, all of the European countries minus-4%, and Australia minus-1.5%. We still have a plus number in front of our economic forecast. That is what this government has delivered through strong fiscal management.
What does the CLP want? The CLP is arguing against going into deficit. They are arguing against going into deficit, so if we look at what the CLP want, they want higher taxes and slashing jobs. They absolutely cannot have it both ways. The CLP stands for high taxes and job cuts. That is exactly what they stand for. We have seen GST revenues collapse in the rest of Australia as a result of a collapse in consumer confidence.
That has not occurred here in the Territory. We are still seeing consumer confidence relatively high, and this budget will give Territorians confidence in the future; specifically the next financial year. There is nothing more important than a secure job. All of those public servants out there, who the CLP would have an axe hanging over their heads, slashing public services –17 000 public servants can be confident that, under this government, we will protect their jobs and value the work that they do.
Members interjecting.
Madam SPEAKER: Order! Order!
Refusing to accept, as the CLP does, the need for debt in the context of a global recession, will lead to economic catastrophe. Their policy of absolutely refusing to accept the need for debt will lead to economic catastrophe. They would also devastate government services. Arguing against the deficit, as they are doing in this current economic climate, is arguing for higher unemployment and for business failures. That is what the CLP stands for – high unemployment, business failures.
Members interjecting.
Madam SPEAKER: Order! Order!
That is what they stand for. That is what we inherited when we came to government. When we came to government, we actually had the Australian economy growing and we had 0.0% growth in the Northern Territory, with people leaving in droves and an enormous budget deficit. That is what they would take us back to. They have the runs on the board, they would do it again.
Members interjecting.
Madam SPEAKER: Order! Order!
Mr HENDERSON: We stand here proudly for Territory jobs – this will be a temporary deficit. The Treasurer has outlined in the Budget Papers a climb out path and we are absolutely committed to that. At the Chamber of Commerce lunch today, I walked around and spoke with many of the leaders in our business community, as I know we all did. Everyone I spoke to said this is the right budget in a really tough time. I commend the budget to the House.
Madam SPEAKER: Before I call you, member for Port Darwin, I remind honourable members of Standing Order 51:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
Budget 2009-10 - Debt and Liability
to Income Ratio
to Income Ratio
Mr ELFERINK to TREASURER
In 2001, the debt and liabilities to income ratio of 131% was described by Labor as being unsustainable and economic vandalism. What then do you have to say about the predicted debt and liabilities income ratio of 130% delivered in your budget?
ANSWER
Madam Speaker, I welcome the question from the member opposite.
Members interjecting.
Madam SPEAKER: Order! Order!
Ms LAWRIE: What they fail to get a grasp on is the severe and swift economic downturn that has gone across the globe and across our nation. This is my prediction: what we will see is Treasurer after Treasurer stand in their parliaments, handing down their budgets and taking their jurisdiction into increased debt. And why? Because now is not the time to cut government spending. With the contraction in private investments, jobs need to be saved by government spending, particularly in areas of infrastructure. Now is not the time to pull back.
In terms of the changes in liabilities, very clearly we have had a debate, and I am happy to have it as many times as they need, because they simply do not understand. We have had actuarial adjustments in superannuation liability which makes up a significant component of the liability increases sitting in those figures. The other thing we have impacting on us at the moment, and I have mentioned this, is the bond rating of those liabilities. It is as low as 4% at the moment. Normally, you look at your long-term bond rates around 5.7%. Those liabilities do not really come to fruition until about 2012, 2013 and 2014 in terms of when you start to see those liabilities peaking and they drop down the other side.
What those figures represent today will not be what they represent when those liabilities are coming to fruition and would be called upon, because those bond rates dramatically affect those liability figures. If you were to look at the bond rate and the long-term bond rate of 5.7%, I can tell you that those liabilities would be a lot healthier.
It is a nonsense debate being pursued by a shadow Treasurer who simply does not understand that the truest measure you can take of this, and the measure that all governments take, is your total financial liabilities and looking at what your nett debt to revenue ratio is: can you afford, in terms of your revenue coming in, to pay off your debt? Where is the Territory? Today we are predicting a 28% nett debt to revenue ratio in 2009-10. We are saying it will increase to 33% nett debt to revenue ratio over the period of the forward estimates, less than half of what the CLP left the Territory in with a nett debt to revenue ratio of 61%.
Under the CLP, their answer would be to slash jobs, to slash the budget, to stay in surplus - they never actually achieved surpluses in the last years of the CLP when the economy nationally was strong.
This economy is flat lining. Through spending, particularly in infrastructure, Territory Labor governments brought health back into the local economy through infrastructure, record upon record capital works expenditure. What do we have in this Budget 2009-10? $1.3bn in capital investment in housing, in schools, in roads, equating to about some 2500 jobs. What happens in harsh economic downturns is that unemployment increases.
Mr MILLS: A point of order, Madam Speaker! It is just balancing the equation. The Leader of Government Business is quite distressed about the length of my four sentence question. I would assume that is the same that you would apply to the length of the answers.
Madam SPEAKER: As you know there is no limit on answers. The Treasurer has the call.
Ms LAWRIE: We made a deliberate decision - I said it in the Budget Speech, and I will say it again - this government made a deliberate decision to go into deficit. We have seen collapsing GST revenues, but we have made a deliberate decision to go into deficit to protect Territory jobs. What we also have in the budget papers, through the forward estimates, articulated in the fiscal strategy, is a clear step out plan to return the budget to surplus in five years.
Budget 2009-10 – Infrastructure Spending
Mr GUNNER to TREASURER
Can you please inform the House why the level of infrastructure spending delivered to the Territory in Budget 2009-10 is so important?
ANSWER
Madam Speaker, I know the opposition does not want to hear this but for those Territorians who want to know that there is a job out there for them, who want to be able to put food on their table and pay their mortgages, this is a critically important issue.
Against the backdrop of a global recession and collapsing GST revenue, Budget 2009-10 is the most important and toughest to frame in our history. These are tough economic times that Australia faces. They are the toughest we have faced in generations - the first global recession in 75 years.
Budget 2009-10 focuses on protecting jobs, but also building the Territory against the global financial crisis. This unprecedented infrastructure investment of $1.3bn will support 2500 jobs across the construction and related sectors, broadening into the wider economy. We are seeing in Budget 2009-10, the Territory’s first ever more than $1bn infrastructure spend. This record breaking infrastructure spend represents a 47% increase on last year’s - that is this financial year’s - record infrastructure budget; $414m more than 2008-09, bringing the total infrastructure spend since 2001 to $5.6bn. That is how you drive economic growth in the Territory: by investing in infrastructure.
There is $322m for roads; $19m for community beef and mining roads to improve the Buntine, Plenty, Tanami Highways, Maryvale Road and the Wollogorang Bridge, which I am sure will be very welcome in the Gulf country; $89m for the Tiger Brennan Drive extension, an extra $6m to duplicate Tiger Brennan Drive between Dinah Beach and Woolner Road which will be very welcome for those traffic flows.
Mr Giles: Let us talk about some more federal money in this $1bn package.
Ms LAWRIE: Highlights across our national highways - there is $5m for road safety initiatives on the Stuart, Victoria, Barkly; $5m for overtaking lanes between Katherine and Darwin …
Mr Giles: Barkly, Katherine, SIHIP, not a house built.
Madam SPEAKER: Order! Member for Braitling, cease interjecting.
Mr Tollner: This is all federal money …
Madam SPEAKER: Order! Member for Fong Lim, cease interjecting.
Ms LAWRIE: Madam Speaker, in housing infrastructure we will see a $390.3m investment in this budget, a 92% increase on previous budgets. This is record infrastructure spending to rebuild Territory schools, with $118.9m and to commence a $300 000 upgrade program across every primary and large group school.
Infrastructure investment is the best way to not only protect jobs now, but to build the Territory for the future.
Budget 2009-10 – Cost of Living
Mr ELFERINK to TREASURER
Territorians woke up this morning to a burden of $26 000 debt for every man, woman and child as a result of your handling of the Territory’s finances. That debt comes on top of a 25% power price shock, a 70% water tax and the highest rents and dearest groceries in the country.
You are now also adding to the financial burden of Territorians by making petrol, already the most expensive in the country, even dearer still by offering ...
Dr BURNS: A point of order, Madam Speaker!
Members interjecting.
Madam SPEAKER: Order, Order!
Members interjecting.
Madam SPEAKER: Please pause. Order! Member for Port Darwin, resume your seat.
Dr BURNS: … pretty patient and given the member quite a lot of latitude. I refer again to Standing Order 112. Just reading from parliamentary practice …
Members interjecting.
Madam SPEAKER: Order!
Dr BURNS: … it says the questions may not become lengthy speeches. This is what we have from the member for Port Darwin. I think he has been given quite a lot of latitude.
Members interjecting.
Madam SPEAKER: Order! I will just seek some advice. Member for Port Darwin, can you simply ask the question.
Mr ELFERINK: Yes, Madam Speaker. That debt comes on top of the 25% power price shock, a 70% water tax and the highest rents and dearest groceries in the country. You are now also adding to the financial burden of Territorians by making petrol, already the dearest in the country, even more expensive still …
Madam SPEAKER: This is a very long question, member for Port Darwin.
Mr ELFERINK: … by 1.1 per litre petrol subsidy. Why are you and your government so determined to make living in the Territory so expensive?
Madam SPEAKER: Treasurer, before you take on the question. Member for Port Darwin, that is a really a very long question. I refer you to Standing Order 112 in relation to questions. While I always allow a level of latitude, that really was far too long.
ANSWER
Madam Speaker, there is nothing more vitally important to Territorians than having a job. Try managing the cost of living when you do not have a job. Try managing the cost of living when you are on the unemployment scrap heap, where the CLP would have put you by slashing jobs across the public sector and by refusing to accept what every government around this nation recognises it must do to protect jobs in their economies, which is to go into temporary deficit and have a clear path to climb out of that temporary deficit.
The CLP would ensure that Territorians in their thousands would be put on the unemployment scrap heap. This government will not do that.
Mr Bohlin interjecting.
Madam SPEAKER: Order, member for Drysdale!
Ms LAWRIE: We are about protecting jobs. The CLP could not even manage in the good times and this is what they do in the bad times - they make people unemployed. Thousands of jobs would go.
In stark contrast, this government is about ensuring that we are protecting the jobs of Territorians by putting a record infrastructure budget, $1.3bn out there; dollars into the private sector to ensure that we are seeing those subbies, the contractors, in employment because we know there is contraction in private investment. We are also promising the security of our public service, and we are not going to go cutting and slashing like the CLP would have us do. There is a raft of initiatives in this budget to support families living in the Territory and the cost of living in the Territory.
For example, this Labor government pays $62m in power subsidies for households and small businesses, pensioners’ and carers’ concessions. That equates to $750 subsidy per connection. This government had the initiative of the back-to-school payment, and ask any family what that back-to-school payment means to them when it comes to enrolling their kids at school, how much of an enormous help it is to them. We took it from $55 to $75 each year to assist each child enrolled at school.
We have the most generous pensioner and carer concession scheme in Australia; concessions across utilities, rates, public transport, spectacles, motor vehicle registration, driver’s licensing and seniors interstate and overseas travel. Budget 2009-10 delivers an increase in those concessions up from $104 per annum to $150 per annum per pensioner. Free bus travel for students, pensioners and carers, the only jurisdiction in the nation doing that; free entry to great recreation facilities like Leanyer Recreation Park.
Making living bearable for families, this budget delivers $5m for a water park in Palmerston – very welcome out there. We paid $3.5m …
Members interjecting.
Madam SPEAKER: Order!
Ms LAWRIE: … to subsidise childcare. We are the only state or territory jurisdiction that takes the burden off families for childcare, and try looking at the cost of a full-time place. We are the lowest taxing jurisdiction for small- and medium-sized businesses in the nation, and we remain that way. Cumulative tax savings for households and businesses amount to over $230m since 2001; that is dollars back in their pockets; it is not dollars in government revenue - $230m since 2001 in tax savings.
The 1.1 per litre fuel subsidy that we are redirecting into roads and public transport - when it was removed in Victoria and Tasmania there was no increase in the price of fuel. The Parry report looked into the price of fuel in the Territory and said there were two key factors in the price of fuel at the bowser in the Territory. One is volume - we are small population, a small volume; the second is the lack of competition in the marketplace ...
Mr ELFERINK: A point of order, Madam Speaker! Whilst I appreciate the appropriation speech of this morning, there is no requirement to go through it all over again. She has now strayed way off the subject. The issue of relevance is ...
Madam SPEAKER: Member for Port Darwin, there is no point of order. The Treasurer has the call.
Ms LAWRIE: I know they do not want to hear the fact that they are simply making up furphies because this is a strong budget to protect Territorians. They are making up …
Mr ELFERINK: A point of order, Madam Speaker! You will not allow ‘deceit’ and you will certainly not allow the use of the word ‘lie’. I ask that ‘furphies’ and those sorts of similar words be cast into the same mould.
Dr BURNS: Speaking to the point of order, Madam Speaker! That is a completely preposterous proposal put by the member for Port Darwin. What is hurting him is that the Treasurer is actually turning to the nub of his question and demonstrating to all Territorians the work that this government has done in supporting Territorians in their jobs and in their houses. The member for Port Darwin does not like it.
Madam SPEAKER: There is no point of order. Treasurer, if you could come to the point fairly soon, thank you.
Ms LAWRIE: Madam Speaker, I am about to finish. The shadow Treasurer jumped as I was about to sit down. I will repeat: this budget is about protecting the jobs of Territorians in the harshest economic conditions seen in generations where, for the first time in 75 years, there is a global recession. Every responsible government will spend because we have private sector contraction to save the jobs of Territorians.
Budget 2009-10 – Housing Roll-out
Ms WALKER to MINISTER for HOUSING
A total of $390m has been committed to housing in Budget 2009-10, almost double last year’s allocation. How will you ensure that this housing investment is rolled out quickly to protect Territory …
Members interjecting.
Madam SPEAKER: Order! Member for Nhulunbuy, could you please start again as I was unable to hear the question.
Ms WALKER: Minister, $390m has been committed to housing in Budget 2009-10, almost double last year’s allocation. How will you ensure that this housing investment is rolled out quickly …
Mr ELFERINK: A point of order, Madam Speaker! The question is awfully long.
Madam SPEAKER: This is not awfully long, member for Port Darwin.
Ms WALKER: How will you ensure that this housing investment is rolled out quickly to protect Territory jobs and support families?
ANSWER
Madam Speaker, I congratulate the Treasurer on a fine budget. I also attended the Chamber of Commerce lunch, and the people around my table were also very complimentary, as were other members who were there. The Leader of the Opposition came very late into the proceedings. At least, this year he actually turned up to the Chamber of Commerce lunch, which is encouraging for the business community in a little way, but he did come very late. The members for Fong Lim and Braitling could not even get organised to get a ticket ...
Mr WOOD: A point of order, Madam Speaker! The question was about housing, not the menu.
Madam SPEAKER: Minister, if you can get to the point of the question.
Mr KNIGHT: It seems to be a problem today, Madam Speaker. It is a great budget, it does …
Mr Tollner: He cannot answer this question. He has no idea how to build a house.
Madam SPEAKER: Order! Member for Fong Lim, cease interjecting.
Mr KNIGHT: I just wonder where he went for lunch, because he did not go to the one ...
Mr ELFERINK: A point of order, Madam Speaker! Sorry, but this is twice that we have now heard the same sort of allegation from that side of the House. We have been through this; it is just a stupid allegation to make. It gets trotted out that all parliamentarians have been on the booze at lunch, and it is bad. Madam Speaker, as far as I am concerned they should be ashamed of themselves.
Madam SPEAKER: There is no point of order, member for Port Darwin, they are referring to lunch.
Members interjecting.
Madam SPEAKER: Order! Minister, resume your seat. I refer honourable members to Standing Order 69 in addition to Standing Order 51:
- No Member may interrupt another Member speaking unless –
It does not appear that many of those things have been happening recently. Minister, I call you again.
Mr KNIGHT: Thank you, Madam Speaker. The fundamental focus of this budget is about protecting jobs in these toughest times. It is a very serious matter. We are facing the biggest challenge, economically, that the Territory has ever faced. I commend the Treasurer, and Treasury, for delivering an excellent budget which does everything to protect jobs.
Members interjecting.
Mr KNIGHT: This budget, as has been said, delivers a $1.3bn infrastructure spend, and as the Housing Minister, I am very proud that within that $1.3bn spend is a record spending …
Members interjecting.
Dr BURNS: A point of order, Madam Speaker! Standing Order 51. The member for Braitling steadfastly ignores what you have to say and just has a continual undercurrent of interjection. I cannot hear what the member for Daly is saying.
Mr Tollner interjecting.
Madam SPEAKER: Member for Fong Lim, cease interjecting. I am not aware that the member for Braitling in particular has been interjecting any more than other members. Honourable members, I remind you of Standing Order 69, and also Standing Order 51, and would appreciate some cooperation in Question Time.
Mr KNIGHT: Thank you, Madam Speaker. As I was saying, within that $1.3bn infrastructure spend is $390m-worth of investment in housing projects. That is up 92% from last financial year.
Mr Tollner interjecting.
Madam SPEAKER: Order! Member for Fong Lim!
Mr KNIGHT: Madam Speaker, these housing projects will deliver roughly 355 jobs across the Territory. This is about building the Territory, and it is also about protecting jobs.
Members interjecting.
Ms LAWRIE: A point of order, Madam Speaker! The members are consistently interjecting and it is getting more and more difficult to hear the answers. Standing Order 51.
Madam SPEAKER: Standing Order 51 - indeed, it seems to be so well worn:
- No Member may converse aloud or make any noise or disturbance which in the opinion of the Speaker is designed to interrupt or has the effect of interrupting a Member speaking.
There have certainly been many interruptions. I will be putting members on warnings from now on. Minister, you have the call.
Mr KNIGHT: Thank you, Madam Speaker. As I alluded to this morning, this government is doing everything it can. It has that infrastructure spend. It has the new Homestart NT program which allows young families, low to middle income earners, to buy their own home. With that new program we have allocated $28m in Budget 2009-10. It is an excellent initiative. I learned this morning that we have had 18 expressions of interest in the last week. I think that will no doubt increase. In addition to that, this government has the $7000 First Home Owner Grant, the first homeowner concession, and $20m has also been allocated for the Palmerston East headworks.
With all those programs – we have the Nation Building project, the $4.1bn going to upgrade 175 public housing properties across the Territory. Also, we have tenders being called for 22 new properties in Darwin, Alice Springs and Tennant Creek. We have the $7.1m second stage of the stimulus package of which $6.2m will be in the 2009-10 Budget.
This is an excellent budget. It delivers in the housing sector. I know it is needed. I know the investment that is going into Palmerston - the $10m for a new 44 unit seniors village which is much needed by that sector. I look forward to working within the public housing sector to get all those things delivered. We also have the redevelopment of Parap Gateway, a significant investment by this government in getting that started. Work has already begun.
Madam Speaker, as the Housing Minister, I commend the Treasurer and I commend my colleagues on this side of the House on prioritising housing as a significant part of this budget: $390m will protect jobs, and it will deliver for Territorians.
Budget 2009-10 – Fee and Charge Levels
Mr ELFERINK to TREASURER
You have just delivered a speech in which you state: ‘The government will update fee and charge levels and introduce an indexation mechanism’. Which fees and charges are you going to update, and by how much, before you introduce your indexation mechanism?
ANSWER
Madam Speaker, I thank the member for his question. Fees and charges across the Territory have not really been increasing in real terms for years now. All the small fees and charges that are set across all areas of government have not been up dated for years and they have fallen behind the real cost of service delivery; the real cost to government of that service delivery.
Officials will look at what is a real term increase for those fees and charges, and they will also index them to ensure that they are going forward and keeping pace with real costs. We have clearly flagged that we will be doing the same for penalty units.
This is nothing new. This is nothing that any other jurisdiction is not doing all the time. We will not be going as far as Queensland; they looked at a 30% hike in fees and charges. We will not be going any where near that. We will be making adjustments to fees and charges to bring them in line with where they should be in real terms today, and ensure they are indexed for the future.
Mr Elferink: Which ones and how much?
Ms LAWRIE: … If you use the services you pay for the services …
Mr Mills: Why do you not answer the question?
Members interjecting.
Madam SPEAKER: Order, order!
Ms LAWRIE: … to businesses, in an environment where we have been saving businesses and households hundreds of millions of dollars in taxes cumulatively since Labor came to government and started slashing taxes. There are fees and charges increases, but they are modest and they will be indexed going forward.
Mr ELFERINK: A point of order, Madam Speaker! It goes to relevance. The question was quite simply: which ones and how much?
Madam SPEAKER: I believe the Treasurer has already completed her answer. Is that correct, Treasurer?
Ms LAWRIE: Yes, Madam Speaker.
Budget 2009-10 – Health Services
Mr GUNNER to MINISTER for HEALTH
How will Budget 2009-10 improve health services for Territorians?
ANSWER
Madam Speaker, our government recognises that health is a key priority for Territorians, and we are very proud of our record in health. As has been widely reported, this is the first time that the Territory’s Health budget is in excess of $1bn. It is the most difficult budget in the Territory’s history. I thank the Treasurer and my Cabinet colleagues who, despite the decline in revenue, decided unanimously that health is too important and the Health budget should not be slashed, and that the Health budget should increase.
Building up health services is an important component of building the Territory. It is a $1bn budget which directly protects jobs for hundreds of doctors, nurses, and allied health professionals. It means more frontline people – people we need at the coalface - in Alice Springs, Gove, Tennant Creek, Darwin, everywhere in the community. We make no apologies for boosting the number of doctors and nurses. This year’s budget will mean 95 extra nurses in the Territory, bringing the total number of nurses to 578 more nurses since 2001. This year’s budget will support an extra 17 doctors; 184 more doctors since 2001.
This budget paper shows that $1.05bn dollars will be spent on the Department of Health and Families. I am pretty sure that at the end of the year, financially, you will find out that that figure will be further exceeded because there will be more money coming from the Commonwealth and the government is prepared to put more money into the Health budget. It is going to be in excess of $1.05bn dollars. The important thing is that $600m of this money will go towards Indigenous related health. That is very important.
Last week the members for Goyder and Greatorex criticised the government because we had a record expenditure for the Royal Darwin Hospital. If we had done what the CLP wanted and put a freeze on staff numbers in the hospital to 2007 numbers it would have meant 233 fewer nurses in our system. We are not going to do that.
We are committed to support health. We are committed to build a health system equal to the health system in other states in Australia, and we put the money in to do it.
Budget 2009-10 – Public Sector Numbers
Mr ELFERINK to the MINISTER for PUBLIC EMPLOYMENT
I refer to the minister’s repeated claim that most of the public sector employees are on the front line of service delivery. Today’s budget papers show that there are 555 new positions in the department of Health, yet you say in the newspaper today that there are only 170 doctors and nurses on the front line as a result of growth in Health last year. That means there are some 350-plus people unaccounted for. Are you really suggesting that the tea ladies are delivering health services in the Department of Health?
Dr BURNS: A point of order, Madam Speaker! Once again, Standing Order 112 – an argument, an inference, an imputation. Once again the member for Port Darwin is abusing his rights at Question Time …
Madam SPEAKER: Leader of Government Business, resume your seat.
Mr ELFERINK: I accept the criticism, Madam Speaker. I withdraw the question.
Minister, are you honestly attempting to convince Territorians that there are public servants with powers to diagnose illness, prescribe or administer medication? If not, why did you say that most of these public servants are on the front line?
ANSWER
Madam Speaker, last week during the sittings, on a number occasions, different members of the opposition attacked the public service.
Members interjecting
Madam SPEAKER: Order! Order!
Mr KNIGHT: This is a very serious matter. Last week they attacked their credibility. This week they are attacking the individual jobs. What we have heard today in the budget is that the opposition would not go into deficit, in the biggest economic crisis in 75 years …
Mr ELFERINK: A point of order, Madam Speaker! Of the 170 announced doctors, I just want to know, and it goes to relevance. There are 550 new public servants in Health, 170 are doctors and nurses. Where are the rest?
Madam SPEAKER: Member for Port Darwin, that is not a point of order. Minister, you have the call. Minister, have you completed your answer?
Members interjecting.
Madam SPEAKER: Order! Order!
Mr KNIGHT: Madam Speaker, what we heard today was that they would not go into deficit. Now, that is fine, but what that means is that the nurses, the doctors, the teachers, the child protection workers, the police, would not be there. They would not be there.
Mr Mills: Rubbish!
Mr KNIGHT: It is all right. If you do not want to go into deficit, that is fine. In the biggest economic crisis facing the world in 75 years this government has chosen deliberately to go into deficit to fund these key positions. We have an exit strategy with these deficits.
Members interjecting.
Madam SPEAKER: Order!
Mr KNIGHT: We make no apologies for employing those people, no apologies whatsoever. We need those frontline workers. I was sitting next to a lady from Flinders University the other day …
Mr ELFERINK: A point of order, Madam Speaker! It goes to relevance. The question is quite specific - 555 new public servants in Health, only 170 are doctors and nurses …
Madam SPEAKER: Member for Port Darwin, resume your seat.
Dr BURNS: Speaking to the point of order …
Madam SPEAKER: There is no point of order, Leader of Government Business. Minister, would you come to your conclusion fairly soon, please.
Mr KNIGHT: Madam Speaker, I will just make two last points. One, I was sitting next to a lady who was doing study in the health area. She says the Territory’s health needs are equivalent to one million people because the health needs are so severe. We do not make any apologies for employing new ward clerks, new child protection workers, new patient assistants, and new allied health professionals. They are key positions. Every single one of them does a valuable job. We make no apologies and we will keep employing those people. The opposition would sack every single one of them.
Budget 2009-10 – Boosting
Capacity of Police Force
Capacity of Police Force
Ms WALKER to MINISTER for POLICE, FIRE and EMERGENCY SERVICES
Can you please inform the House whether Budget 2009-10 will boost the capacity and capabilities of the police force?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her question. Budget 2009-10 further builds the capacity of our police force to tackle crime and make our suburbs safer across the Northern Territory. It delivers a budget of $279m to Police, Fire and Emergency Services, which is an increase of 104% from when we came to government in 2001. It will deliver more police on the beat, patrolling our suburbs and this need is well acknowledged by Territorians.
Members interjecting.
Madam SPEAKER: Order! Member for Fong Lim!
Mr HENDERSON: Thank you, Madam Speaker. The member for Fong Lim might not want more police in our police service. They would go back, as they did when they were last in government, slashing police numbers ...
Mr TOLLNER: A point of order, Madam Speaker! I say to the Chief Minister that he may well want to direct a few of those police into my electorate because ...
Madam SPEAKER: Member for Fong Lim, there is no point of order. Resume your seat.
Mr HENDERSON: Madam Speaker, I say to the member for Fong Lim that there are 339 more police in our police force today than there were when we came to government in 2001, when the CLP had run down our police force. The fisheries police could not put a boat in the water to go out and police our fisheries. The police could not apprehend any criminals because they did not have enough police in the police force. We had a recruitment freeze for four years when not one police officer was recruited under previous CLP governments ...
Members interjecting.
Madam SPEAKER: Order! Member for Drysdale!
Mr HENDERSON: Our commitment to our police force stands in contrast to the commitment of the CLP.
The Safer Streets initiative continues this year with a $5.1m allocation that will deliver a further 25 police officers dedicated to patrolling our suburbs. This is on top of the 35 additional last year. The 25 new positions to be delivered during 2009-10 will boost Palmerston police by 11 for a new 24/7 patrol in Palmerston. I was at Palmerston last week and met with police and talked to many business people. Alice Springs will receive an additional 10 police; an additional 24/7 patrol. Katherine will receive additional four police in the budget this year. The additional Safer Streets funding will also deliver 10 additional police auxiliaries to boost the resources of the joint Emergency Services Communications Centre to support the police on the front line.
In Budget 2009-10, we will continue to roll out our Police Beats, with $2.5m allocated to establish a Police Beat in Alice Springs and another two in Darwin. We know this is an initiative which would absolutely be under the guillotine of the CLP. They said they do not support the Police Beats; they think it is a waste of time and they would close them down. We know that the axe would fall on the Police Beat initiative that has reduced much of the antisocial behaviour and criminal activity in and around Casuarina shopping centre.
The police currently have a force of 1244 police. This is twice as many police per head of population than the Australian average. All of the work our police do is well regarded on this side of the House, whether it is Ngukurr or Numbulwar, in Central Australia at Mutitjulu, or over at Port Keats. In Darwin, Katherine, Tennant Creek and Gove they do a fantastic job on behalf of all Territorians.
There will be not only additional police, but additional equipment and infrastructure. The construction of the new Casuarina Police Station is nearly completed. When we came to government, I went through that police station. The roof was leaking; there were buckets on the floor. That was the type of infrastructure that we were bequeathed across the Northern Territory. Under the CLP the Casuarina Police Station was an absolute disgrace. It has been rebuilt and will open soon.
Budget 2009-10 also provides for $6m for a major upgrade of Alice Springs Police Station. It is not only a great result for the hard-working police officers in our expanded police force in Alice Springs, but $6m is a good contract for a local Alice Springs business to pick up. This budget is about protecting Territory jobs and that $6m in Alice Springs will go to protecting Territory construction jobs in Alice Springs.
There is $2m to convert the Numbulwar police post to a police station. I was at Numbulwar when the police post was opened - a fantastic facility. Again, not only great for our police, but $2m is a pretty good sized contract for a Territory company to pick up.
Madam Speaker, this budget provides for additional police to tackle crime and make our suburbs safer. Once again, it is a very clear demonstration of this government supporting Territorians in terms of community safety and supporting our police force.
Bicycle Path – Rural Area
Mr WOOD to TREASURER
This is a rural question. In the budget, you say you have now dropped the fuel road subsidy which enables the government to save $3.9m. You then say that your government will redirect that money into roads and public transport. Considering rural people use most of the fuel, or rely on that fuel that you are now taking that subsidy away from, why is your government not redirecting some of that money to the construction of a bicycle path along the North Australian Railway? This is something you promised to build in the last term of government, and something that rural people have been asking the government for since you were first elected.
ANSWER
Madam Speaker, I thank the member for Nelson for his question. This government will be investing in Top End rural area significantly. We have $1m to manage the Douglas Daly Research Farm and we have really paid particular attention …
Mr WOOD: A point of order, Madam Speaker! I believe the definition of rural is being taken to the widest possible definition by the minister. I asked about the North Australian Railway bicycle path. It was a specific question.
Madam SPEAKER: Member for Nelson, there is no point of order. Minister, you have the call but if you could answer the question as closely as possible.
Ms LAWRIE: One of the most significant areas of assistance in the Territory budget for the rural area will be the public transport park-and-ride facilities. They will be providing the opportunity for safe and secure park-and-ride locations for people in the rural area to get on a modern, clean and efficient public transport service to commute to work. We will have buses running through those bus interchanges as a result of this government’s $12m-plus investment in the public transport system. That investment in infrastructure in the rural area with facilities like the park-and-ride facilities were not previously provided for in the Northern Territory. It is an initiative of this Labor government. It is an initiative that Budget 2009-10 is delivering.
Mr Wood: It is a good initiative but we want a bicycle path.
Ms LAWRIE: In terms of the bicycle path, it is on the forward works program.
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