Department of the Legislative Assembly, Northern Territory Government

Mr HATTON - 2000-05-18

In the budget debate, the Leader of the Opposition said she can’t find one job in the Territory budget, this despite some $3bn worth of expenditure and a very large work program. Could the minister please tell this House how much money the Darwin to Alice railway project will eject into the Northern Territory economy and what impact that would have in terms of jobs within the Northern Territory.

ANSWER

Mr Speaker, the answer is that $400m will be spent directly in the Northern Territory economy. In total, more than $200m will be spent on the project in the coming financial year, inclusive of mobilisation, design and other fees with direct construction costs. This will include $3m in Darwin, $30m in Katherine, $52m in Tennant Creek and $6m in Alice Springs.

The Leader of the Opposition makes much about jobs, but we have to understand where they come from. This is the faded dream. The faded dream of the Labor Party will be a reality in the Northern Territory. There will be jobs for everyone. There will even be a job for the member for Arnhem. You are going to be one of the sleepers, and we are even going to use taxpayers money. You have a job, you are going to be one of the sleepers, because that is the most appropriate place for you.

In terms of information that will be provided, a newsletter and facts sheets have been produced - and I will table that - and are being distributed throughout the Northern Territory this week, to explain the progress of the project and answer questions about issues such as jobs, training, business opportunities, and regional development.

The AustralAsia Railway project is one of the biggest construction developments ever in the Northern Territory. We expect final documents to be signed next month and a construction headquarters will be established in Darwin shortly, incorporating a procurement office. A design team is being assembled now and in the next couple of months we will see a lot of preliminary survey and design work beginning on the railway project.

As we get closer to the start of construction, the Northern Territory government will work with the consortium to ensure information is passed to local businesses that explains the complexity of the project, how contracts are being parceled, and the latest developments on the project. Information will particularly focus on the work of the Northern Territory government’s Department of Industries and Business, which is working with the Northern Territory Industry Search and Opportunities Office to maximise business opportunities that arise from the project.

Once contracts are signed, the consortium will release detailed information on its construction program and potential contracts. The corporation will work through the Northern Territory Industry Search and Opportunities Office to establish which Territory businesses have the capabilities to provide goods and services. The consortium, through the NTISO, will provide the advanced notice on tenders which may be available to Territory companies.

A local industries participation plan will ensure 70% of the $1.2bn project funding is spent in the Northern Territory and in South Australia. Also, within the context of the Northern Territory budget, this government has announced the formation of a Major Project Support Unit within the Industries and Business department. This unit will maximise business opportunities from the railway. The unit formalises the former rail group, which has operated for some time in DIB. The Major Project Support Unit is under the direct management of the new Deputy Secretary of DIB, John Carroll. I can also advise members that once the contracts are signed the consortium will again conduct information seminars in all centres where railway work will occur. A series of workshops for NT businesses were held up and down the track earlier this year.

Further, all Territory expos this year in Alice Springs, Tennant Creek, Katherine and Darwin will have dedicated railway information. The Alice Expo has already occurred with very positive feedback. It’s worth noting that this government has further assisted to ensure the consortium’s design and construction headquarters is located in Darwin.

The Major Project Support Unit is working in partnership with the Northern Territory Chamber of Commerce and Industry, the Northern Territory Business Council, Territory Construction Authority and other business organisations and their regional offices on the project, because we are about maximising job opportunities.

Notwithstanding the sort of garbage the opposition comes out with, this is a difficult project to bring to fruition. We have to recall that it was only some months ago, last September, that this was still a dream. Certainly not a faded dream, but a dream. We finally got the agreement of the Commonwealth government to make its increased contribution which made the project a reality, and since that time we have been working to finalise the contractual and financial arrangements with the consortium.

Anyone would understand that tenders come after all of that, but we have now underwritten the design work. It will occur in Darwin. That detailed design work will lead to specifications being produced for all of the work, and those specifications will lead to tenderers being let. The major tender period is shortly to commence and Territorians will see what a great project this is.
Last updated: 09 Aug 2016