Department of the Legislative Assembly, Northern Territory Government

Mr MITCHELL - 2000-08-09

Yesterday during Question Time the Leader of the Opposition stated that construction was suffering because of a capital works program cut in the government’s budget by 50%. Can the Treasurer tell us if that is correct. Further could he also tell us what major capital works are coming on line?

Mr Toyne: Preferably in under 10 minutes.

ANSWER

If that is what you want, I am happy to accede to your request.

Mr Speaker, this is another important question that demonstrates the government’s response in providing activity in the construction industry. It is one I would have thought that honourable members opposite might have been a bit more interested in, rather than making flippant remarks.

The Leader of the Opposition has added to her list of priors in stating that there has been a 50% reduction in the capital works expenditure proposed for this year. Wrong. There has indeed been an 11% increase. It is a $382m capital works program for 2000-01, one that is designed, as was said when the budget was delivered, to provide support to the building and construction industry across the Northern Territory.

While some areas of construction are flat because we are coming off a high level of activity, particularly following the Defence build-up and the enormous injection of funds from the Commonwealth in terms of construction and building activity, we are as a government responding to that. Members may recall that earlier this year we made announcements about bringing forward the housing programs. That was in April or May. No doubt that assisted the building industry. While activity in that area is low, imagine what it would be had we not done that! The responses we have made in the last few months have been of assistance, and there is much more to come.

The housing industry in particular will benefit from the announcement made yesterday in relation to the improvements in the first-home buyers schemes. Indeed, the minister advised the Chief Minister and I this morning that at a meeting of industry members last night, which about 50 attended, there was a high level of confidence and enthusiasm in relation to the expanded HomeStart scheme. A number of industry members already have land/home packages developed and are out there today, as we speak I expect, constructively promoting the program so that it will do what the government wants - that is, enable Territorians to buy a home and of course generate activity in the building sector. If only the members opposite, the Labor Party, could generate some enthusiasm and some positive approaches, as does the industry, we would be a lot better off.

There are a number of major capital works programs that I must give notice of: for tender in August, $1.4m for the Palmerston Health Precinct headworks; for tender in September, $9.2m for Girraween Primary School, a significant capital works program; in November, $5.6m for the new Police forensic laboratory – again a sizeable lump - and $1.3m for residential headworks at Palmerston; at Maningrida for tender in January 2001, $2.2m for a health clinic; East Arm port stage 2, March 2001 tender date, $37m; Darwin Correctional Centre redevelopment, April tender date, $5.3m again; and the East Arm port petroleum delivery lines for tender in June, $3.2m. In all, about 50 government capital works projects are to be tendered over the next year or before the end of this financial year. They are but the major ones.

In addition to the Territory government work, there is of course $53m worth …

Ms Martin: You make lots of promises, Mike. You make lots of promises on capital works but they just don’t come to fruition.

Mr REED: … of construction work to be carried out by the Defence Force.

The Leader of the Opposition prattles on. She is not interested but that does not deter her from making the irresponsible misleading statements that she did yesterday.

Those major capital works projects will commence within the next month or so and then flow through over the next couple of years, and then of course will be complemented by additional works that the government will put in place in subsequent budgets.

The point is that the scope of these projects is in building small buildings – housing – and large buildings - the forensic lab and schools - and civil works, providing work for plumbers, electricians, painters, plasterers, tilers, bricklayers and the earthmoving industry. The whole range of building trades will find an enormous level of activity and opportunities to take advantage of in this capital works program which will now proceed.

I think there is some very bright news about what is actually happening, rather than what is portrayed to be happening in a negative sense by the ridiculous assertion yesterday by the shadow treasurer that there had been a 50% reduction in the capital works program. That is another untruth, more misleading information to put down the private sector and of course unsettle their confidence.

The Leader of the Opposition, I remind her again, holds a responsible position and she should act responsibly. Before opening mouth, engage brain.
Last updated: 09 Aug 2016