Department of the Legislative Assembly, Northern Territory Government

2012-11-29

Mini-Budget –
Effect on Public Service Jobs

Ms LAWRIE to CHIEF MINISTER

Two days before the election in a Sky News debate twice you said, ‘No public service jobs will go’. A week later you started sacking public servants. Will you guarantee no public servants will lose their jobs as a result of your mini-budget on Tuesday?

ANSWER

Madam Speaker, the position which was clearly presented to the Territory community was there is a need to manage our affairs well but, at the same time, to show support for our hard-working public service.

No frontline public servant has any concern from this government. Our objective is to ensure there is a clean line of sight from the CE’s position to the quality of service delivery.

There are a number of contract positions that, as the opportunity comes for reconsideration of renewal through continuation of funding - whether it be sourced from the Commonwealth or we can make internal arrangements - provides us with the opportunity either to continue if that will strengthen frontline service, or not. To not continue could mean the non-renewal of a contract; it is as simple as that.

If that contract position is not renewed, it is not a reflection on whether that person has made a quality contribution or not. We recognise there is quality contribution and will do all we can to provide opportunity for that person to continue service.

Permanent public servants have nothing to be concerned about. We have provided moves to permanency as far as we possibly can. You full well know - and your predecessor well knew but was never able to make the difficult decisions to ensure we provided well-resourced, strong leadership and focus to the public service.

Consequently, the reality is some contracts will not be renewed because there was no forward provision of funding. Some of the funding streams cease because they come from Commonwealth programs and provide us the opportunity and circumstances where difficult decisions have to be made.

Nhulunbuy and Gove Peninsula –
Future of

Mr STYLES to CHIEF MINISTER

The people of Nhulunbuy and the Gove Peninsula are extremely concerned about the future of their town which, as everyone knows, is dependent upon Pacific Aluminium and the bauxite resource. Can you please provide an update to the House on the government’s efforts to secure a reliable gas supply to Nhulunbuy?

ANSWER

Madam Speaker, I thank the member for Sanderson. I take this opportunity to advise members of this House, and those who have an interest in securing energy for the long-term future of the Northern Territory - in particular East Arnhem, specifically to Nhulunbuy and Gove – of the opportunities that would flow from there. As I have said on the record a number of times, I leave no stone unturned in achieving that objective. The project involves three very different elements and involves a number of parties.

In order, the first one is the corridor which has been largely cleared. There is still work to be done on the final clearing of that corridor and, in preparation for that, meetings with the NLC have been conducted.

The second aspect of this is a pipeline and the underwriting of the construction of a pipeline along that corridor. I commend the Commonwealth government for its recognition of the necessity of providing security for the construction of a pipeline. My meetings with Martin Ferguson and minister Crean were very positive on that front. I also raised that matter in a conversation I had with Prime Minister Gillard about the Commonwealth’s role in providing the underlying support for the construction of a pipeline; that is an essential part of it.

However, none of this could work unless there is gas upon which a deal could be struck. Now there is a demand for gas, the focus is on the supply of gas. The position is that no amount of gas from one supplier can meet the requirement. Therefore, there needs to be an aggregated supply which comes, in the first instance, from three places: Eni Blacktip, Santos in the Mereenie field, and, potentially another area, and from the Northern Territory government through its secured reserves.

The focus has been in working in that commercial space. Not much can be said about it at this stage because we are working with the assistance of the line going from Rio in London to Pacific Aluminium here, regular contact with Duncan Hedditch here, and Sandeep Biswas – wherever he is; either Toronto or Brisbane. We have the support in the negotiations on that front with a team working in the Territory with a new person, Dr Ted Campbell, assisting us with a high-level negotiation and analysis of the technical and commercial aspects of this. We remain hopeful we will be able to secure this deal and ensure we not only keep Nhulunbuy going, but we open up immense possibilities for the supply of gas now that there is strong demand for domestic gas in the Territory ...

Ms Walker: Gove people want to see you out there. You can go to China, you can go to New Zealand, but you will not go to ...

Madam SPEAKER: Order! Order!

Mr MILLS: Excuse me? I have spoken to you about what was happening on that front ...

Members interjecting.

Madam SPEAKER: Order!
Public Sector Jobs – Security of

Ms LAWRIE to CHIEF MINISTER

This is the flyer you were handing out in front of public sector workplaces in the days before the Territory election which clearly says, ‘Your job is safe’. Will you be handing them out next Wednesday after your mini-budget, or is this just another torn up commitment?

ANSWER

You are not asking, former Treasurer, ‘How on earth will you manage that terrible debt burden I have left you?’ You do not want to go anywhere near that. You do not want to talk about the renewal management report. You do not want to talk about the issues.

You are directly responsible for a serious situation which a serious government is setting to work to fix.

Ms Lawrie: Not at all. It is your con job.

Mr MILLS: Extraordinary! As I said in response to the first question from the Leader of the Opposition who is finding it difficult, perhaps, to hear or chooses not to grasp, we and I have said - and it is clear - that no public servant earning under $110 000 a year would be dismissed. I have made the clarification with regard to contract positions. A contract is a contract. You have a contract with the people. We have a contract with the people. Contracts are contracts; this is different. I honour that promise.
The fact is - and you know full well - the fiscal position has been so seriously compromised that this is the underlying reality which we cannot turn away from. You choose to blithely ignore it and run your political smear and scare campaign irresponsibly.

You can garner some political point scoring at this time but Territorians will know the truth. In their gut they know the truth. They know they have a serious government which has the best interest of the Territory at heart.

We are dealing with the dreadful inefficiencies and appalling level of support you provided, and the legacy you have left for the Northern Territory. It is disgraceful! You know exactly the nature of the problem you have left us to deal with. They are not easy matters to deal with, but we deal with them because of our love and commitment for the Northern Territory. These are difficult decisions but we will do it.

You know quite well some senior executives were dismissed. That was plainly presented and explained, and was in compliance with the position which was put before the Territory community.

I wonder whether you will raise the ire, this genuine concern you have about the security of public servant positions, with Julia Gillard about the operation which is being conducted in Canberra. Are you so outraged at what is happening with your own colleagues in other places? Are you so outraged with what is happening here, but you would not reflect on your colleagues? I doubt it! You do not have the courage.
Sports Voucher Promise –
Update

Ms FINOCCHIARO to MINISTER for SPORT and RECREATION

Can you please update the House on the $75 sports vouchers you promised during the election campaign to help Territory families?

ANSWER

Madam Speaker, it is great to see some interest in the sports voucher which will assist all Territory families. As we know, Territorians love their sport; there are not secrets there. We have been a very sporting jurisdiction for a long time.

The $75 sports voucher was an election commitment made by this government and one we are determined to deliver on. I am pleased to say the scheme is currently being implemented and Territory schoolchildren will be able to use the vouchers from the start of next year.
This is what it will look like. Every student in the Northern Territory will receive one of these in the mail. Parents and guardians of the students enrolled in regions registered with sporting clubs will receive a voucher and a letter outlining the sports voucher scheme in January 2013. The scheme will kick in from 1 February. All students from preschool to Year 12 will receive the voucher which will be redeemed at registered sporting clubs.

The vouchers can be used to offset registration, insurance, equipment, or uniform purchases required to undertake sport. All government and non-government schoolchildren will be eligible for the voucher whether they are in cities, towns, communities or the bush. If students are enrolled in a region with few or no local sporting associations ...

Mr GUNNER: A point of order, Madam Speaker! Relevance. Could the minister explain how the $75 sports voucher will cover the $2000 Power and Water debt?

Mr ELFERINK: A point of order, Madam Speaker! That was a frivolous point of order.

Madam SPEAKER: That is not a point of order. Please be seated. Minister, you have the call.

Mr CONLAN: It is great to hide behind a frivolous point of order. You need to ask a question yourself. None of them want to ask the question.

If a student is enrolled in a region with few or no local sporting …

Members interjecting.

Madam SPEAKER: Order!

Mr CONLAN: I see, hiding behind interjections. Why do you not ask the question? The worst Treasurer in the history of the Northern Territory is hiding behind interjections. That is all she can do ...

Ms LAWRIE: A point of order, Madam Speaker! I am always one to accept an invitation. So, you never called any point of orders in Question Time in opposition?

Madam SPEAKER: Opposition Leader, please be seated, that is not a point of order. Minister, you have the call.

Mr CONLAN: Thank you, Madam Speaker. I called a number of points of order because there were a number to be called. They were all relevant and succinct to what you were talking about. There were no frivolous points of order from us.

If a student is enrolled in a region with few or no local sporting associations, the $75 voucher will be allocated to their school to support a school council-endorsed sporting initiative program.

This is a wonderful opportunity for the children of the Northern Territory to get involved into sport. That is what it is about. Sport plays a vital role in our community in the NT. It will be rolled out. It meets our 100-day election commitment and will start from 2013.
Motor Vehicle Registration –
Increasing Cost

Ms LAWRIE to CHIEF MINISTER

The cost of petrol in the Northern Territory is much higher than the national average. Do you agree that attempting to justify a car registration price hike based on national averages would be completely out of touch with the reality of Territory families already struggling to pay their bills?

ANSWER

You will be able to advise us of all the strong action you took with petrol prices. What sort of achievements did you rack up in your time as the Treasurer, other than racking up colossal, monstrous, and obscene debt that crushes the capacity of the Territory to take advantage of the opportunities that obviously are there ...

Ms LAWRIE: A point of order, Madam Speaker! Relevance, that is not massive or obscene debt when you look at the G20 countries.

Madam SPEAKER: Opposition Leader, there is no point of order, please be seated. The Chief Minister has the call.

Mr MILLS: If you are going to hold up that graph - could I ask you to table that graph, please? You are comparing the debt levels of the Northern Territory, which has 230 000 people, to Greece and Spain. Table it!

Madam SPEAKER: Opposition Leader, do you wish to table that document?

Ms LAWRIE: I will get my office to bring down a copy for him. He has seen it before.

Madam SPEAKER: Do you seek leave to table the document, Opposition Leader?

Ms LAWRIE: No I do not, he will get a copy. I will keep using this because it shows you ...

Mr Mills: No, I want that one.

Madam SPEAKER: Opposition Leader, please be seated. Chief Minister, you have the call.

Mr MILLS: Thank you. I accept there are pressures on Territory families, without a doubt ...

Ms Lawrie: Motor vehicle rego.

Mr MILLS: Wait for the mini-budget and you will see it all in context.

The context in which these decisions are being made is the context of dealing with a very serious problem, a problem that has been left with us …

Ms LAWRIE: A point of order, Madam Speaker! Relevance. The question was specific: do you agree that attempting to justify a car registration price hike based on the national averages is completely out of touch?

Madam SPEAKER: Chief Minister, you have the call.

Mr MILLS: Thank you, Madam Speaker. If the honourable member wants to raise such a point of order she should also raise the point of order about the other parts of the question, including the graph which she is very reluctant to table.

There are many aspects to the question. What I am establishing is a response to your question; that is, the context in which these decisions have to be made. We have to deal with a legacy that has been provided by your poor handling of the Territory ...

Ms LAWRIE: A point of order, Madam Speaker! Relevance. It goes to a question on national averages in a hike in the motor vehicle registration because of the cost of petrol in the Territory.

Madam SPEAKER: Opposition Leader, please be seated. Chief Minister, you have the call.

Mr MILLS: This is getting stranger and stranger, Madam Speaker. You cannot have it three ways with three specific points of order that are quite different in relevance. What is relevant is this former Treasurer is ignoring what everyone knows: everyone is being caused some pain but she caused it ...

Madam SPEAKER: Chief Minister, your time has expired.

Indigenous Advancement

Ms LEE to MINISTER for INDIGENOUS ADVANCEMENT

In your Address-in-Reply to the Administrator you mentioned that our Dreaming had become a nightmare. Could you expand on this?

ANSWER

Madam Speaker, I thank my colleague for the question; I know she is passionate. We often have these talks in the lobby with our colleagues about how we have become passive. As Indigenous people we grew up watching our grandparents and parents working as butchers, bakers, woodchoppers, and furniture makers. We have been pacified by thinking that Labor - the opposition sitting across there - were our friends, would just throw money at us, that they would solve the problem. They gave us bad housing, education and health, and their federal counterparts are doing exactly the same thing.

Passiveness is not a way of moving people forward, it is about partnership. It is about making sure you realise what has happened in the past, picking up the good things and bringing them forward to our people. We are a people today who are disabled. We have been disabled by you. We are permanently on crutches because we are uneducated, unhealthy, we live the poorest life. That is because you opposite thought you were our great friends and just kept throwing all this money out to programs that were not working; programs that did not help us and that you never did in partnership with us. You ought to be ashamed of the results you have as our friends, and that is zero: zero in education, health, poverty and in living the way we do.

Aboriginal people want to be like any other Australian. We do not want to live in passive welfare and wait for our sit-down money every fortnight without having real jobs. You have not created any real jobs for remote Aboriginal people.

You have the audacity, Opposition Leader, to worry about jobs being cut by us in the public service when you failed to create any real jobs for remote Aboriginal people.

You have failed and that is why Aboriginal people have put you where you deserve to be, in opposition. You will always sit in opposition because Aboriginal people have gladly put you across there. You deserve to be there because we are sick and tired of passive welfare, of not being educated, and not being healthy.
It is so good and we are so pleased that Aboriginal people have put you, including you, member for Nhulunbuy, in opposition ...

Madam SPEAKER: Minister, your time has expired.
Foster Carers and Child Protection –
Increase in Funding

Ms FYLES to TREASURER

Your only achievement in child protection so far is to remove all independent scrutiny. You are sweeping child abuse back under the carpet. In opposition you promised to increase foster care payments. Do you guarantee in your mini-budget next week you will increase the funding for all foster carers to accommodate additional Power and Water charges, and do you promise to continue funding for SAF,T, which provides vital child protection services in the bush?

ANSWER

Madam Speaker, I thank the member for Nightcliff for her question. Yes, we have been in government for 14 weeks now and we have made some changes to the way we manage the business of child protection in the Northern Territory. We have merged Education and Children and Family Services into one agency and we are very proud of this. We see great potential outcomes from this integration of the two services.

I remember last year the former Labor government made a monumental decision to increase foster care payments for Northern Territory foster carers. They had not received a pay increase for many years. So, to hear the member for Nightcliff talk about foster care payments …

Ms LAWRIE: A point of order, Madam Speaker! You have not answered the question. Go to the question about whether foster care payments will rise in the mini-budget and will you continue to fund SAF,T!

Madam SPEAKER: Opposition Leader, please be seated.

Mr ELFERINK: A point of order, Madam Speaker! The points of order being called are precisely the ones you warned the House about. I ask you to remind members of your warning.

Madam SPEAKER: Minister, you have the call.

Mrs LAMBLEY: Madam Speaker, the former Labor government did not increase foster payments for many years. Off the top of my head, six years rings a bell. It is extremely hypocritical that the member for Nightcliff would even raise this issue in parliament. It was an extreme embarrassment to the former Labor government at that time.

I will answer the question the member for Nightcliff has raised. We do not intend to cut funding to SAF,T. We have looked at the funding given to non-government organisations by the Office of Children and Families. The exact nature of their funding arrangements beyond the mini-budget will be made public next week. However, we do not intend to cease funding to SAF,T. We never said that and do not intend to do that.

Foster care payments were increased last year - the first increase for many years. We have not considered, 14 weeks into government, the option of increasing foster payments. It has not been put to us again because they recently had an increase. If Foster Care NT presents an argument that its payments be increased we will consider that at the time.
Indigenous Students –
School Outcomes

Mrs PRICE to MINISTER for INDIGENOUS ADVANCEMENT

Please provide information on progress made over the last years in increasing school outcomes?

ANSWER

Madam Speaker, I thank the member for Stuart for her question. I know she is passionate about Aboriginal education.

This is the saddest question to get in this House because we are talking about the next two generations of Aboriginal kids. These are the generations that will be around in the Northern Territory when we are long gone.

It is disgraceful to see NAPLAN is still showing these results. I quote:
    The latest NAPLAN results for Year 3 students show that pass rates for reading by Indigenous students in the Northern Territory are 47%; and for numeracy 32%.

That means over half of eight-year-olds cannot do sums and two-thirds cannot read. That is a shame. We should be ashamed, not just as politicians sitting in this House, but as Territorians. You opposite should be ashamed of yourselves. You had 10 years where you stood on this side of the House and bragged about how you were starting to get results.

Yesterday’s hero sitting at the back, your mentor, who does not have a portfolio, who held this portfolio, used to brag …

Ms LAWRIE: A point of order, Madam Speaker! What additional funds will be in the mini-budget for Indigenous education? Cut to the chase!

Madam SPEAKER: Leader of the Opposition, please be seated. Minister, you have the call.

Ms ANDERSON: Thank you, Madam Speaker. It is an insult to have continuous interjections by the Opposition Leader when we are talking about the most vulnerable people in the Northern Territory. As I said, you always have the racist connotations underneath your questions ...

Ms LAWRIE: A point of order, Madam Speaker! That is grossly offensive and she needs to withdraw.

Madam SPEAKER: Minister, please withdraw your comment regarding racism.

Ms ANDERSON: I hope you are offended by that. Madam Speaker, I withdraw it.

We are talking about the most vulnerable kids. There are two generations of Territorians who will be uneducated, unable to equip themselves to live in this society, not just in the Northern Territory but across Australia. You should be ashamed! I am so glad their mothers and fathers voted against you and put you on the other side.
Non-Government Schools –
Subsidies

Mr WOOD to CHIEF MINISTER

It is interesting in light of the fact there has just been an announcement for school vouchers for both government and non-government schools.

Yesterday, your Treasurer announced independent non-government schools would not receive the 15% subsidy to help lessen the impact of increased tariffs for essential services but it would be received by government schools. The Treasurer said these schools are privately run and, like any private business, these tariff increases will have to be absorbed into the business plans.

As ex-principal of Palmerston Christian School, do you agree with the views of your Treasurer? If you believe these non-government schools are private businesses and will be treated differently than government schools, do you intend to require children attending these private businesses to pay a daily fee for travelling on the usually free government buses, or will your government treat all schools, parents, and children as equal Territorians and allow the same subsidies for all schools?

ANSWER

Madam Speaker, I thank the member for Nelson for his very important question. Of course, choice in education is vital and respected by the Country Liberal Party, as respected by the previous government. The Country Liberal Party has a proud tradition of supporting choice in education.

With regard to the question which arises from comments made yesterday, then runs wildly without being thoroughly assessed or able to be weighed in the context of a mini-budget announcement next week, I do not intend to go any further in making commentary. I ask you to wait until the mini-budget has been announced because it would be improper for announcements to be made and details around the thrust …

Mr WOOD: A point of order, Madam Speaker! Relevance. The question was: do you agree with the Treasurer’s statement that the schools are private businesses and do you agree those non-government schools should pay a different tariff than government schools?

Madam SPEAKER: Chief Minister, you have the call.

Mr MILLS: I understand when a school community, a body of parents, supports an independent school they also support that independent school through the payment of school fees. That is acknowledged, and it is a significant contribution to the delivery of education in the Northern Territory.

The context of the response made by the Minister for Education was not directly attributing to the nature and quality of independent education, but more a thrust of the question which was asked by the member for Fannie Bay.

The details of this will be outlined in the mini-budget. Of course we recognise the value of independent education, the role that parents play, and the support of parents who are involved in supporting private education …

Mr WOOD: A point of order, Madam Speaker! Relevance. The question is: does the minister agree that non-government schools should not have the subsidy government schools are receiving? That is the simple question.

Mr MILLS: What I am trying to tell you, respectfully, is that when a school chooses to be independent, it then takes additional responsibilities for the decision is has made - decisions which are carried out at the family level and have to be played out in managing that school environment in fees that are set and being managed ...

Mr WOOD: A point of order, Madam Speaker! The question is not being answered. We have run out of time and that was deliberate.

Mr MILLS: No, it was not deliberate.

Madam SPEAKER: Time has expired.
Non-Government Schools –
Subsidies

Mr GUNNER to TREASURER

It appears there may be a difference of opinion between the Chief Minister and the Treasurer about whether schools are private enterprises. Yesterday, you justified not subsidising not-for-profit schools for your price hikes because they are private enterprises. That is what you described them as. Sometimes the only school in a community is a non-government school; for example, the only school in Wadeye is a not-for-profit non-government school. Why are you unfairly targeting the Wadeye community because you consider their only school to be a private enterprise?

ANSWER

Madam Speaker, I thank the member for Fannie Bay for his question. Yesterday I answered the question very succinctly and probably did not give an adequate explanation.

Like the former Labor government in 2009, we implemented a tariff. We have offered a subsidy for government schools that will be affected by these tariff increases from 1 January next year. It is exactly what they did; it is the same level of support Labor provided to schools when they increased electricity and water charges in 2009.

They did not provide any other subsidy for any other school beyond government-owned schools. We have gone down that track. We have clearly articulated that subsidy will be in place ...

Ms LAWRIE: A point of order, Madam Speaker! We did not hike up power by 30%.

Mr Westra van Holthe: You are a grub!

Madam SPEAKER: Member for Katherine! I overheard that remark. Minister, you have the call.

Mrs LAMBLEY: What the Chief Minister was talking about earlier was that there is a difference between government and non-government schools. When groups of people decide to set up a non-government school they take that risk into account - that there will be different expenses, different forms of revenue coming in, different circumstances, and it is run on a private regime as opposed to a public regime.

In answer to the question of whether we will provide subsidies to non-government schools, we are looking into it as we speak to try to provide some extra assistance. We realise it will be tough. The answer to the question the member for Fannie Bay has asked this morning will be announced next week in the mini-budget.
Darwin Correctional Facility –
Cost

Mr HIGGINS to MINISTER for CORRECTIONAL SERVICES

Labor’s budget papers are now only a few months old and quickly becoming reclassified in the fiction section in public libraries as a result of the scrutiny being applied by this incoming government. The budget papers identified a project called the Darwin correctional facility at a cost of $495m. Can the minister confirm this cost and expand on the benefits which are expected to come from entering into a PPP for this project?

ANSWER

Madam Speaker, the starting point for this answer is that the justification for going down this path was that it would cost Territorians less. I will put it into terms so average people like me can understand it more readily. What they said is, ‘We want a house built and will spend $495 000 on it rather than spend $51 000 more on building this house because it would cost us more to do’. That seems fine, on the face of it, and an attractive proposition, and that is what they brought to the people of the Northern Territory.

However, when they went into the partnership with the organisation that was going to build their house for them, what they did not make public about that partnership was that the cost blowout would reach, according to the Auditor-General of the Northern Territory, $521 000. When you scratch below the surface, arranging the contracts doing the administration and all of the work to enable this to occur would make the house cost $621 000.

If you follow that logic then you find yourself in a situation where you are asking yourself why we are paying $60 000 a year in repayments for a $621 000 house? The reason I placed it in those terms is so people can say, ‘Hang on, that does not sound right’.
Change thousands into millions and we are talking about a $495m prison which, according to the Auditor-General, will cost $521m and, in reality, when you add on all of the other associated non-construction costs, will cost $621m and we will be paying back $60m a year for the next 30 years.

The next seven governments of the Northern Territory will be paying this back. That is the enormity of the trap they have fallen into. This is not a good arrangement for the people of the Northern Territory. The only difference with this house they have built is the promise of the people they are borrowing the money from to come and sweep the driveway, change the light bulbs, and put a lick of paint on it from time to time, that is it. The fact is, the end result of this arrangement is the house will end up costing $1.8m. That translates into the cost of the prison to $1.8bn. So, for a prison of $495m, we are paying $1.8bn ...

Madam SPEAKER: Your time has expired, minister.
Warruwi Police Station –
Closure

Mr VATSKALIS to MINISTER for POLICE, FIRE and EMERGENCY SERVICES

We have been informed that the police station at Warruwi has been closed. Is it true? What are the policing plans for this community and have you, as Police minister, made the local member aware of them? What are the police cuts under the mini-budget?

ANSWER

I will take the first part of that on notice, but the second part of it, I think you may ...

Ms Lawrie: No, it is shut.

Madam SPEAKER: Opposition Leader, you are on a warning.

Mr MILLS: Regarding the second part of the question, you must have been out of the Territory when there was an election campaign on because we made a very clear commitment to the Territory community that because of the declining levels of community safety we would increase the number of police to provide frontline service protection for the Territory community because it was required. The details of that, shadow minister, will be provided in the mini-budget.
Darwin Correctional Facility –
Cost

Mr HIGGINS to MINISTER for CORRECTIONAL SERVICES

The minister has told us that the $495m cost for the Darwin correctional facility in the last budget papers is wrong by $126m. We have been told the quarterly instalments of $15.1m, or $60.4m a year, will have to be paid for the next 30 years commencing in October 2014. Does this deal also stand up to scrutiny as being in the best interests of Territorians?

ANSWER

Madam Speaker, I am grateful to the member for Daly for pursuing this matter with me because he takes an interest in public expenditure. Where I finished off in my last answer was that this was a $1.8bn project in today’s dollar terms.

The part that strikes me as being interesting is: why would we be paying $60m a year on a $621m arrangement? When you start to dig into these arrangements you can figure out what our repayments and the interest rate on those repayments are. In the normal marketplace - I checked this morning on the Commonwealth Bank website - you can get a house loan at a fixed interest rate of less than 6%. If you are a government going into the marketplace borrowing a large amount of money you can probably scrape some interest away at maybe 4% or 4.5%.

The question I have for the former Treasurer and the former minister for Corrections is: why are we paying 8.5% on this arrangement? What sort of arrangement do we have in place …

Ms LAWRIE: A point of order, Madam Speaker! The Auditor-General’s most recent report goes through this.

Madam SPEAKER: Please be seated. There is no point of order.

Mr ELFERINK: Thank you, Madam Speaker. We are now paying 8.5% on this arrangement. In the current marketplace, why on earth would we be paying that much? What has gone wrong with the arrangements around this prison? How else could we get from a promise of …

Ms LAWRIE: A point of order, Madam Speaker!

Madam SPEAKER: Please be seated, it will not be a point of order.

Mr ELFERINK: How else can we get from $495m to $1.8bn in today’s dollar terms? Because we are paying a bucket load in interest.
I refer members to my response to the last question I received, ‘We were trying to save $51m’. Well, hell, this is the dumbest way I have ever seen of saving $51m.
Free Bus Travel for Students and Seniors

Mr McCARTHY to CHIEF MINISTER

The previous government made bus travel free for students and seniors in the Northern Territory. Do you guarantee this will continue next year?

ANSWER

I guarantee you the mini-budget will make it all known to you, but remember the mini-budget is set in a context you would be fully aware of. I would be ashamed if I heard what I just heard and was sitting in your position. In terms of ...

Mr McCARTHY: A point of order, Madam Speaker! Relevance. I will ask the Chief Minister once again. Will you answer the question, will there be free travel for students and seniors next year?

Madam SPEAKER: Chief Minister, if you could get to the point.

Mr MILLS: That is a matter which will be presented for your satisfaction in the mini-budget next week ...

Mr McCARTHY: A point of order, Madam Speaker! I thank the minister for the question and he can sit down.

Madam SPEAKER: Member for Barkly, you are on a warning.
Ord River Irrigation Scheme Stage 3

Mr WOOD to CHIEF MINISTER

The Australia, on 24 November, reported that you have announced approval of agricultural expansion into the Ord River Irrigation Scheme Stage 3. I have been a long-time supporter of the Ord expansion too, but The Australian says you will be fast-tracking this development. Could you explain how you will fast-track Ord Stage 3, considering Stage 2 took many years before Western Australian approval was achieved? How will you fast-track the many environmental, native title, pastoral, geographical, infrastructure and national parks issues which will need to be addressed? How much will the Territory have to contribute? Considering we are in a period of financial discipline, where will that money come from?


ANSWER

Madam Speaker, I thank the member for his question. I acknowledge you have been a long-time supporter of this. Perhaps you would have liked to have been at this event which showed an extraordinary level of cooperation which has never been seen on the Western Australian side of the border from our predecessors who now sit on the other side. They were exclusively focused on the northern suburbs and not concerned about the growth and development of the Northern Territory.

Yes, there was an agreement signed - an in-principle agreement that we will take our share of the load in preparation for the extraordinary opportunities presented with Ord Stages 2 and 3. That means, member for Nelson, we take it seriously and recognise the first task is dealing with native title issues.

It is extraordinary the former Labor government, which traded off its special connection to Aboriginal people, paid no effort at all to engaging Aboriginal people to have the opportunity to access something that is providing lasting and monumental significance to the people on the other side of the border. The only difference is there is a different government on the other side of the border, now there is a different government on this side of the border, and we are working with traditional people on both sides of the border to clear that important matter before we can make any progress.

How it is going to work, member for Nelson, is there will be a high level of coordination. The Chief Minister will ensure there is a full coordination and a focus of this government on achieving these objectives.

The second part is to maintain strong connections between the Commonwealth, Western Australia and the Northern Territory - a special unit is to be actively involved in all the discussions and negotiations to demonstrate we are taking this seriously.

In relation to cost, recognise that our commitment is to grow the Northern Territory economy and that is why this has special importance to the people in that region, and it will have benefits right across the top of the Territory.

In relation to focusing of those resources, there will be assistance required from the Commonwealth. We would not get that assistance if we did not take our own financial affairs seriously, as we are, so we can stand up as an equal in the Commonwealth and argue for the support that would come from the Commonwealth. By presenting ourselves as we did the other day we demonstrated we are serious, we are acting like a state, we are developing strong plans which could be properly supported, and are serious about the long-term future of the Northern Territory.
Correctional Services –
Consequences of Labor Policy

Mr STYLES to MINISTER for CORRECTIONAL SERVICES

Can you please explain to the House the consequences of the former government’s new era policy in corrections?

ANSWER

Madam Speaker, I thank the member for his question. I listened carefully to the minister for Corrections when I was in opposition as the shadow minister for Corrections. He would bang on about the new era in corrections. However, short of building a massively overpriced gaol, what more came out of the new era in corrections? I cannot say it was a great deal.

The Barkly Work Camp was a good idea but not much to crow about - the expenditure of $5m to house some prisoners in Barkly. Lost opportunity after lost opportunity is what the new era represented to the people of the Northern Territory.

The Stronger Futures program arrangements with the federal government, which deals with education, health and any number of other areas, passed the former minister by. Not a skerrick; not a shekel coming from the Stronger Futures arrangement into our corrections system. Why not? Why would you not go to Stronger Futures and say, ‘We have an opportunity to educate and get people jobs through a captive audience which is, unfortunately, about 90% Aboriginal’. We did not go down that path because the former minister was asleep at the wheel.

The other thing that struck me when I took a tour of the prisons once I became the Corrections minister in the Northern Territory was, for all of the talk about work and effort the member for Barkly made, and the rhetoric when he was on this side of the House, I did not see a great deal of movement. There was not a great deal of work being done in prisons. As far as we, on this side of the House, and I am concerned as the Corrections minister, we have a source of labour in those prisons …

Mr McCARTHY: A point of order, Madam Speaker! I have given the minister two minutes and have listened to his answer. He has denied Territorians the fact of community corrections ...

Madam SPEAKER: Members, I said at the beginning of Question Time I will enforce the ruling of one member on their feet at a time - government, opposition and Independent. There is no point of order. Minister, you have the call.

Mr ELFERINK: Thank you, Madam Speaker. With the loss of so much time to answer the question, I will say this: unfortunately, the former government failed. It failed in so many areas and in so many opportunities because of the lack of competent management from a minister who was prepared to read out anything that was shoved in his hand rather than drive corrections ...

Madam SPEAKER: Minister, your time has expired.
Power and Water Tariff Increases –
Impact on Families

Mr VATSKALIS to CHIEF MINISTER

For a Territory family that likes to spend the weekend getting away fishing and then having a family meal at the Palmerston Tavern, which one do you think they should cancel to pay for your power price hikes, the fishing trip or the meal at the tavern in Palmerston?

ANSWER

Madam Speaker, I ask if you could rule on this because it is getting a bit silly. This is asking me for an opinion. I can provide you with an opinion but you are obviously blind to the context in which any difficult decisions are taken. The difficult decisions being made are courtesy of the very poor legacy you have left us to deal with ...

Ms Walker: With your broken promises Territorians are having to make difficult decisions.

Madam SPEAKER: Member for Nhulunbuy! Opposition Leader, put that down.

Mr MILLS: You could still table that, you know.

Ms Lawrie: Yes, when we get a copy we will bring it down.

Mr MILLS: That is why I am concerned about you; why you will not table that particular one.

I will not provide commentary or my opinion on a hypothetical such as that. It is a silly question. The situation is that despite the discomfort and that no one wants to pay more and that it will be extremely difficult, people understand the greatest impact they have to deal with on a daily basis is rents and mortgages. You do not talk about that, and for good reason, because they are the colossal weights that bears down due to your failure to get on top of land release. You could talk about all the great things that were going to happen in the Northern Territory, draw attention to yourselves, but pay no attention to the needs to grow, to plan, to be structured, to provide some leadership and get ahead of the game. You comprehensively failed and, on top of that, to add insult to injury you put a burden of debt on the top of Territorians. That is a very difficult situation.

Rather than describe this as a scenario that provides blame, it is an explanation of the context, a context we respond to responsibly and with courage.

We accept people will have some difficult consequences as a result of the difficult decisions we make, but we make those difficult decisions in the context of dealing with the appalling mess which has been left for us. We will not back away from making the necessary decisions in the long-term interests of the Northern Territory because we believe in the future of the Northern Territory. We are doing this for the right reason; that is, to strengthen and secure our Northern Territory and make it a far better and stronger place in the future, and increase the capacity for local families to enjoy revenue that flows into their community rather than interest rates that flow out and into the pockets of the banks and on credit cards. We will deal with that so we get more bang for buck and start to be a strong functioning community once again.
Ord River Irrigation Scheme Stage 3 and State of the Primary Industries Division

Ms LEE to MINISTER for PRIMARY INDUSTRY and FISHERIES

What was the state of the Primary Industries Division of the former Department of Resources, and how advanced were decisions around Ord Stage 3 when you took over as minister three months ago?

ANSWER

Madam Speaker, I thank the member for Arnhem for her very important question. It really highlights the lack of leadership shown by the former Labor government in those two areas: primary industry generally, and the Ord.

As a critical part of the three-hub economy, the department of Primary Industry should be as sharp as a tack and at the front end of working with industry, to drive industry as a major contributor to the Northern Territory economy. Instead, the department of Primary Industry was devoid of leadership at the ministerial level, it was consumed in a greater Department of Resources and it lacked identity.
Under the former Labor government, the general public service had grown some 25% in FTE since 2005, yet the Primary Industry department languished, with its number of FTEs having fallen by 16%, which is that little brown line there.

The efficiency dividends imposed by Labor saw the department sucked dry to the point that critical calls had to be made with respect to the delivery of core services. Under the stewardship of the former minister, the member for Casuarina, morale within the department had been devastated due to the lack of leadership I have already mentioned: falling staff numbers, increases in workload. Labor does not do Primary Industry very well, does it?

Likewise, the position around the progress of the Ord - there was a distinct lack of engagement at ministerial level and, even though I would like to blame wholly the former minister, in this case the blame can also be sheeted back to the former Treasurer - the worst Treasurer the Northern Territory has seen since self-government.

We all know those two hated each other and it is still evident on that side of the Chamber. They could not get much further apart as they sit in the Chamber. Whatever interest the minister had, he was completely hobbled by ...

Ms LAWRIE: A point of order, Madam Speaker! I risk being thrown out to say Kon and I are very dear, close friends and are very fond of each other. There is not a grain of truth to what you are saying.

Madam SPEAKER: Continue, minister.

Mr WESTRA van HOLTHE: How very sweet of the Treasurer to talk about her colleague in those terms.

The Western Australian government had made a significant investment: $300m I believe. Conversely, the Labor government here had not invested a single dollar into this nation building project. The only allocation of resources provided was in the form of a member of staff - unfunded mind you - after the Northern Australian Ministerial Forum decision forced them to put someone on a committee across the north.

Former ministers had to be dragged, kicking and screaming, to the Northern Australian Ministerial Forum because they lacked interest in developing this project and developing nation building projects across the north of Australia.
Minerals and Energy Division –
State of

Mrs PRICE to MINISTER for MINES and ENERGY

When you took office 12 weeks ago what was the state of the Minerals and Energy Division of the former Department of Resources?

ANSWER

Madam Speaker, I thank the member for Stuart for her question. Much as I would like to say the situation with Mines and Energy was better than that of Primary Industries, sadly I cannot.

Just like the other department, Mines and Energy lacked an identity and the status it deserved as a department that supports one of those sectors the Northern Territory relies on to build its economy.

The first thing this new government did was address the situation by separating Mines and Energy from Primary Industry and Fisheries. Two new departments, each driven by its own Chief Executive, means each can focus on its core business without the need to compete with each other with the limited resources within one budget allocation.

I like to give credit where credit is due. In the past, I have given credit to the former minister for some work he has done. Yet, to my dismay, I am now discovering the good he did was little more than a thin veneer. The former minister, heavy on rhetoric - we have all heard him - was thin on maintaining Mines and Energy as a dynamic, well-resourced, functioning unit.

While FTEs across government rose 25% in 2005 to 2012, Mines fell by 14%. I produce the same graph as before, Mines and Energy in the green, down in FTEs compared to the remainder of FTEs in the government.

Over the same period, real funding fell despite the increase in onshore petroleum and minerals activity in the Northern Territory. Mineral exploration has grown more than 400% since 2001. There is a nice graph that illustrates it.

MMPs have grown. That is the number of MMPs that have grown in the last four years. Petroleum exploration licences have grown significantly.

There are the maps that relate to it - 2001 to 2012 ...

Mr Vatskalis interjecting.

Mr WESTRA van HOLTHE: We are getting to it, former minister, do not worry.
Here are the minerals exploration maps 2001-12. It is all good.

Of course, since coming into government 14 weeks ago, I have learnt that Mines and Energy was lumbered with a legacy of around $1.7m of unfunded commitments, including the former minister’s flagship program of bringing forward discovery. That is reprehensible - unfunded. How serious was the former government about environmental regulation when Mines and Energy was unfunded to the tune of $4.45m for environment regulations ...

Ms LAWRIE: A point of order, Madam Speaker! I look forward to the announcements in the mini-budget next week.

Mr Tollner: Kick her out!
__________________

Suspension of Member
Member for Karama

Madam SPEAKER: Minister, please be seated. Member for Karama, you are suspended for one hour, pursuant to Standing Order 240A. Member for Fong Lim, your comments are not helpful. You are on a warning too. Continue, minister.
__________________

Mr WESTRA van HOLTHE: Thank you, Madam Speaker, I am about to run out of time, unfortunately.

Mr ELFERINK (Leader of Government Business): Madam Speaker, I ask that further questions be placed on the Written Question Paper.
Last updated: 09 Aug 2016