Ms MARTIN - 1999-10-19
As he is aware, I and the Labor opposition are strong supporters of the development of the railway, a major national project. Like other Territorians, we would like an update on the results of his recent negotiations. Will he advise us how much government funding the consortium believes is required to build this railway? And, following his discussions with Premier Olsen, how do the Chief Minister and the Premier intend to go about getting the Prime Minister to pay up all the extra money needed to get this national project under way?
ANSWER
Mr Speaker, I thank the Leader of the Opposition for her question because it gives me the opportunity to bring the House up to date on where we are with the railway and also to correct some comments that have been put in the media of late by her, the opposition leader in South Australia, Mr Rann, and also her leader federally, Mr Beazley.
I can advise the House at this stage that, as I’ve said in recent days, I am hopeful of contract closure on the railway with the successful consortium prior to Christmas. Negotiations are on track to achieve that objective.
I have made no secret of the fact that the project requires further funding. It’s an issue of how that additional funding will be met by the 3 government partners in the project - the Northern Territory government, the South Australian government and the Commonwealth government. That’s the issue that concerns us at the moment and that issue will be resolved in the coming weeks.
With regard to who should pay, we should remember that this is a project which at the moment is shared equally by those 3 governments with a commitment of $100m each. Also, Territorians should note that from the Territory’s perspective we have also paid $20m to clear the corridor and the best part of $100m for the construction of our new port - essential in our view to ensure that the railway operates in conjunction with the new port to achieve its objective as a transport hub for trade in and out of Australia through Darwin. And there will be further funding required for that port to bring its next stage to completion.
The project to my mind has been shared equitably to date, and I am hopeful that that sort of arrangement in general terms is maintained in the future as the project is completed. But we should bear in mind the concerns of some that this is essentially a Northern Territory project. In that regard there are some harder negotiations from the Northern Territory government’s perspective to extract any additional funding from the other partners apart from the $100m committed so far.
The Labor opposition leader makes big of the fact that there is strong bipartisan support for this railway, from herself, the South Australian leader and also from Mr Beazley. She also makes big of the fact that the Labor Party, through Mr Beazley, promised $300m for this project. We should not attempt to rewrite history. Territorians should be very clear on this point. Mr Beazley when he was running for the 1998 federal election said that a federal Labor government would commit $100m to the project - he made that very clear - and later on in 2001 and 2002, if required (and if they were in government), they would provide up to $300m.
It is not 2001 now. It is October 1999. At this stage we would have achieved only $100m from a federal Labor government. And then if required in 2001 and 2002, perhaps they might look at additional funding. There is no project in the world that would be bankrolled on that sort of promise. So let’s not make too much of the claim that somehow the Labor Party would commit $300m to this project.
And let’s not forget that the Labor Party federally run the show. What the Labor Party of the Northern Territory say is essentially irrelevant. We have seen that in native title. We have seen the Labor opposition leader here stand up and back the Territory’s legislation, and then we have it overturned by federal Labor senators.
Let’s not rewrite history when it comes to the railway. Territorians should be very clear on this point: This railway process was scuttled by the Hawke Labor government. It was scuttled completely under the Hawke Labor government by the 1983-84 report by David Hill which showed that the project was economically unviable. I will quote from a public document issued by a consultant to the Northern Territory, because it’s instructive:
Hopes were dashed when the Commonwealth Labor government appointed Mr David ...
Mr STIRLING: A point of order, Mr Speaker! The Chief Minister has answered the question. He is now delving into the dim recesses of history.
Mr SPEAKER: I think that until I hear what the Chief Minister has to say it’s very difficult to rule that it’s not relevant to the question. I would appreciate hearing the Chief Minister’s answer in reasonable silence.
Mr BURKE: It’s instructive in the context of media releases put out by the Labor opposition referring to what a Labor government would do. My comments are in response to what a Labor government has done with regard to the railway, and that’s where you gain facts from. I quote from this report:
Hopes were dashed when the Commonwealth appointed Mr David Hill to inquire into the viability of the line. As expected, his 1984 report concentrated on domestic freight, paid little heed to national resources, and found a negative ...
Ms Martin You’re editing it!
Mr SPEAKER: Order!
Mr BURKE: It’s instructive to the Leader of the Opposition as to when and how you might wish to rewrite history ...
Members interjecting.
Mr SPEAKER: Order!
Mr Stirling interjecting.
Mr SPEAKER: Order! I will give the member for Nhulunbuy only one more chance. Then he’s on notice.
Mr BURKE: In response to the member for Nhulunbuy, in 1983 I was defending my country, not scuttling national infrastructure as the Labor government was at that time.
… paid little heed to national resource savings and found a negative cost-benefit of $340m over the life of the line.
Canadian Pacific Consulting Services was then engaged by the Northern Territory government to perform an independent analysis of all the market material placed before Hill. They found that the project produced a positive return of at least $54m. In fact, they demonstrated that fuel savings alone in comparison with the road alternative would pay for the line.
Hill’s report to the Labor government became the definitive work and set back any early chance of Commonwealth sponsorship.
Mrs HICKEY: A point of order, Mr Speaker! We have now heard the Chief Minister for some time and he is delving into history. What we’re interested in, and I’m sure what Territorians are interested in, is what the Prime Minister of today intends to do about this.
Mr SPEAKER: I ask the Chief Minister to wind up his comments as quickly as possible. But I don’t dispute that at this stage they are still relevant to the question that the Leader of the Opposition asked, seeking advice on the current situation. This relates to what has led up to the current situation.
Mr BURKE: Hill’s report scuttled the project. The Northern Territory government then, using that Canadian report, got some life back into the project. The Keating Labor government then commissioned the Wran report and it scuttled the project once again.
It has taken the deliberate and tireless efforts of the Northern Territory government to get this project back into the consciousness of the South Australians and the consciousness of the federal government, and it has taken a federal Coalition government to give it life by committing $100m to the project.
We are close to contract close. We will achieve, in my mind, this project. It will come because of the tireless efforts of Territorians in previous Territory governments over many, many years. It will not come through the efforts of the Labor opposition, and it certainly would not have come through the efforts of a Beazley government or any Labor government that preceded it.
ANSWER
Mr Speaker, I thank the Leader of the Opposition for her question because it gives me the opportunity to bring the House up to date on where we are with the railway and also to correct some comments that have been put in the media of late by her, the opposition leader in South Australia, Mr Rann, and also her leader federally, Mr Beazley.
I can advise the House at this stage that, as I’ve said in recent days, I am hopeful of contract closure on the railway with the successful consortium prior to Christmas. Negotiations are on track to achieve that objective.
I have made no secret of the fact that the project requires further funding. It’s an issue of how that additional funding will be met by the 3 government partners in the project - the Northern Territory government, the South Australian government and the Commonwealth government. That’s the issue that concerns us at the moment and that issue will be resolved in the coming weeks.
With regard to who should pay, we should remember that this is a project which at the moment is shared equally by those 3 governments with a commitment of $100m each. Also, Territorians should note that from the Territory’s perspective we have also paid $20m to clear the corridor and the best part of $100m for the construction of our new port - essential in our view to ensure that the railway operates in conjunction with the new port to achieve its objective as a transport hub for trade in and out of Australia through Darwin. And there will be further funding required for that port to bring its next stage to completion.
The project to my mind has been shared equitably to date, and I am hopeful that that sort of arrangement in general terms is maintained in the future as the project is completed. But we should bear in mind the concerns of some that this is essentially a Northern Territory project. In that regard there are some harder negotiations from the Northern Territory government’s perspective to extract any additional funding from the other partners apart from the $100m committed so far.
The Labor opposition leader makes big of the fact that there is strong bipartisan support for this railway, from herself, the South Australian leader and also from Mr Beazley. She also makes big of the fact that the Labor Party, through Mr Beazley, promised $300m for this project. We should not attempt to rewrite history. Territorians should be very clear on this point. Mr Beazley when he was running for the 1998 federal election said that a federal Labor government would commit $100m to the project - he made that very clear - and later on in 2001 and 2002, if required (and if they were in government), they would provide up to $300m.
It is not 2001 now. It is October 1999. At this stage we would have achieved only $100m from a federal Labor government. And then if required in 2001 and 2002, perhaps they might look at additional funding. There is no project in the world that would be bankrolled on that sort of promise. So let’s not make too much of the claim that somehow the Labor Party would commit $300m to this project.
And let’s not forget that the Labor Party federally run the show. What the Labor Party of the Northern Territory say is essentially irrelevant. We have seen that in native title. We have seen the Labor opposition leader here stand up and back the Territory’s legislation, and then we have it overturned by federal Labor senators.
Let’s not rewrite history when it comes to the railway. Territorians should be very clear on this point: This railway process was scuttled by the Hawke Labor government. It was scuttled completely under the Hawke Labor government by the 1983-84 report by David Hill which showed that the project was economically unviable. I will quote from a public document issued by a consultant to the Northern Territory, because it’s instructive:
Hopes were dashed when the Commonwealth Labor government appointed Mr David ...
Mr STIRLING: A point of order, Mr Speaker! The Chief Minister has answered the question. He is now delving into the dim recesses of history.
Mr SPEAKER: I think that until I hear what the Chief Minister has to say it’s very difficult to rule that it’s not relevant to the question. I would appreciate hearing the Chief Minister’s answer in reasonable silence.
Mr BURKE: It’s instructive in the context of media releases put out by the Labor opposition referring to what a Labor government would do. My comments are in response to what a Labor government has done with regard to the railway, and that’s where you gain facts from. I quote from this report:
Hopes were dashed when the Commonwealth appointed Mr David Hill to inquire into the viability of the line. As expected, his 1984 report concentrated on domestic freight, paid little heed to national resources, and found a negative ...
Ms Martin You’re editing it!
Mr SPEAKER: Order!
Mr BURKE: It’s instructive to the Leader of the Opposition as to when and how you might wish to rewrite history ...
Members interjecting.
Mr SPEAKER: Order!
Mr Stirling interjecting.
Mr SPEAKER: Order! I will give the member for Nhulunbuy only one more chance. Then he’s on notice.
Mr BURKE: In response to the member for Nhulunbuy, in 1983 I was defending my country, not scuttling national infrastructure as the Labor government was at that time.
… paid little heed to national resource savings and found a negative cost-benefit of $340m over the life of the line.
Canadian Pacific Consulting Services was then engaged by the Northern Territory government to perform an independent analysis of all the market material placed before Hill. They found that the project produced a positive return of at least $54m. In fact, they demonstrated that fuel savings alone in comparison with the road alternative would pay for the line.
Hill’s report to the Labor government became the definitive work and set back any early chance of Commonwealth sponsorship.
Mrs HICKEY: A point of order, Mr Speaker! We have now heard the Chief Minister for some time and he is delving into history. What we’re interested in, and I’m sure what Territorians are interested in, is what the Prime Minister of today intends to do about this.
Mr SPEAKER: I ask the Chief Minister to wind up his comments as quickly as possible. But I don’t dispute that at this stage they are still relevant to the question that the Leader of the Opposition asked, seeking advice on the current situation. This relates to what has led up to the current situation.
Mr BURKE: Hill’s report scuttled the project. The Northern Territory government then, using that Canadian report, got some life back into the project. The Keating Labor government then commissioned the Wran report and it scuttled the project once again.
It has taken the deliberate and tireless efforts of the Northern Territory government to get this project back into the consciousness of the South Australians and the consciousness of the federal government, and it has taken a federal Coalition government to give it life by committing $100m to the project.
We are close to contract close. We will achieve, in my mind, this project. It will come because of the tireless efforts of Territorians in previous Territory governments over many, many years. It will not come through the efforts of the Labor opposition, and it certainly would not have come through the efforts of a Beazley government or any Labor government that preceded it.
Last updated: 09 Aug 2016