Mr MITCHELL - 2000-10-11
Members opposite seem to continually talk down the Territory economy but I believe there are a number of infrastructure developments underway or coming online in the near future. Can the minister outline some of the projects that may be underway or coming online?
ANSWER
I thank the honourable member for Millner for his question, Mr Speaker. As the Chief Minister has alluded to and the Treasurer also referred to, this government has recognised that there is a downturn in the building industry in the Northern Territory and largely attributable to forces outside of the control of this government. But in recognising that, this government has taken the initiative to bring on a number of capital works programs to help the construction industry, which forms a very important part of the Northern Territory economy, through this slower period.
The total value of new constructions arranged for the first quarter of this financial year was $33.812m. That is up from $21.904m last year. Taking into account the CPI rises and the GST component it is a real increase of something like 38%. In the building sector itself activity is up from $5.407m to $15.973m. That is an increase in the building sector of government-funded projects over the first quarter of the last financial year through to this year of 264%. This government has recognised the problems in the building industry and is doing its best to ensure that those people, those Territorians employed in that industry, are able to maintain that employment and look forward to the future with some increased confidence.
Across the regions, the activity in Alice Springs rose from $3.568m to $5.823m; Darwin from $12.592m to $18.134m; East Arnhem from $0.488m to $1.334m; Katherine from $4.384m to $5.422m; and Tennant Creek from $0.873m to $2.145m. So, it is not only just Darwin that we have recognised as undergoing this slowdown but right across the Territory and we have taken the necessary actions to ensure that the government contracts let reflect a regional concern for each of those regions and we are not just concentrating our efforts in Darwin.
At Alice Springs Hospital, to date, we have let 29 contracts worth $6.44m and 24 of them have gone to local contractors and those 24 have a value of $6.08m. It is estimated a further $12m of trade contracts will be let in the next three months. Royal Darwin Hospital, we estimate this financial year, that there will be an expenditure of that redevelopment project of $10m. The Palmerston Health Precinct, all contracts bar the furniture and external paving have been let. That is due for completion on 24 December. That is a project of some $6m.
We have called for expressions of interest in the East Arm Port on the liquids bulk solid terminal. That is a contract value of something in the order of $25m. Much of that will be fabricated trestles that will lead to work for Darwin engineering companies.
The Girraween school – we have let tenders for the commencement of earth works at Girraween school. Value - $1m in that alone, total project value $9m. The forensic science laboratory, we have called for tenders for that job - $5.5m.
The Capital Works budget has been increased to $382m. The Capital Works program, I should say, and it is a real indication that this government is getting on with developing the Territory and providing the necessary and important social infrastructure that is required by a growing economy, and at the same time recognising that we are undergoing a short-term slow down. In recognising that, we have brought these projects on to provide a fillip to the construction industry, which I am sure in the near future, with the projects on line that this government is progressing, along with the private sector, will quickly return to boom times.
ANSWER
I thank the honourable member for Millner for his question, Mr Speaker. As the Chief Minister has alluded to and the Treasurer also referred to, this government has recognised that there is a downturn in the building industry in the Northern Territory and largely attributable to forces outside of the control of this government. But in recognising that, this government has taken the initiative to bring on a number of capital works programs to help the construction industry, which forms a very important part of the Northern Territory economy, through this slower period.
The total value of new constructions arranged for the first quarter of this financial year was $33.812m. That is up from $21.904m last year. Taking into account the CPI rises and the GST component it is a real increase of something like 38%. In the building sector itself activity is up from $5.407m to $15.973m. That is an increase in the building sector of government-funded projects over the first quarter of the last financial year through to this year of 264%. This government has recognised the problems in the building industry and is doing its best to ensure that those people, those Territorians employed in that industry, are able to maintain that employment and look forward to the future with some increased confidence.
Across the regions, the activity in Alice Springs rose from $3.568m to $5.823m; Darwin from $12.592m to $18.134m; East Arnhem from $0.488m to $1.334m; Katherine from $4.384m to $5.422m; and Tennant Creek from $0.873m to $2.145m. So, it is not only just Darwin that we have recognised as undergoing this slowdown but right across the Territory and we have taken the necessary actions to ensure that the government contracts let reflect a regional concern for each of those regions and we are not just concentrating our efforts in Darwin.
At Alice Springs Hospital, to date, we have let 29 contracts worth $6.44m and 24 of them have gone to local contractors and those 24 have a value of $6.08m. It is estimated a further $12m of trade contracts will be let in the next three months. Royal Darwin Hospital, we estimate this financial year, that there will be an expenditure of that redevelopment project of $10m. The Palmerston Health Precinct, all contracts bar the furniture and external paving have been let. That is due for completion on 24 December. That is a project of some $6m.
We have called for expressions of interest in the East Arm Port on the liquids bulk solid terminal. That is a contract value of something in the order of $25m. Much of that will be fabricated trestles that will lead to work for Darwin engineering companies.
The Girraween school – we have let tenders for the commencement of earth works at Girraween school. Value - $1m in that alone, total project value $9m. The forensic science laboratory, we have called for tenders for that job - $5.5m.
The Capital Works budget has been increased to $382m. The Capital Works program, I should say, and it is a real indication that this government is getting on with developing the Territory and providing the necessary and important social infrastructure that is required by a growing economy, and at the same time recognising that we are undergoing a short-term slow down. In recognising that, we have brought these projects on to provide a fillip to the construction industry, which I am sure in the near future, with the projects on line that this government is progressing, along with the private sector, will quickly return to boom times.
Last updated: 09 Aug 2016