Department of the Legislative Assembly, Northern Territory Government

Mr AH KIT - 1998-04-22

He must be aware that Katherine Town Council incurred huge expenses as a result of the flood. The estimated total is $3.4m. Why has the Country Liberal Party administration refused the council's plea for an injection of $1m, or a low-interest loan of $0.5m?

ANSWER

Madam Speaker, I am aware, as are the residents of Katherine and communities in the member for Arnhem's electorate, of the absence and silence of their member in representing them in relation to assistance they might have expected following the flood. He was hiding in his office in the northern suburbs of Darwin during the flood, and now he is trying to make up a bit of ground. However, he is in too deep already. He should not expect to be able to avail himself of the information ...

Mr Ah KIT interjecting.

Madam SPEAKER: Order! Member for Arnhem.

Mr REED: I understand, because he was hiding in his office in Darwin ...

Ms Martin interjecting.

Madam SPEAKER: Order! Member for Fannie Bay!

Mr REED: ... that he would not be aware of the circumstances in relation to Katherine Town Council. I take this opportunity to advise honourable members that, very early in the piece ...

Ms Martin interjecting.

Madam SPEAKER: Order! The member for Fannie Bay will allow the minister to answer.

Mr REED: It is amazing to see this sudden level of interest in the flood. Obviously, members opposite have received inquiries from constituents of the member for Arnhem, or from the party as a whole, as to why the opposition has not been showing the level of interest that might be expected in view of the plight that people found themselves in as a result of the flood. There have been many productive things that they could have done but, of

Page 188

course, they have been notable for their absence.

Very early in the piece, I met with the mayor and the town clerk to discuss the council's situation as a result of a major disaster. The government has to deal with costs in the order of $70m. Similarly, Katherine Town Council has to address the damage that has been done to its assets at a cost of about $3.4m. Mindful of the council's problem, I met with it early. It had a cash-flow difficulty in responding quickly to the need to repair essential services and facilities. As a result, the member for Victoria River and I took to Cabinet a proposal that the government provide an immediate advance of $0.2m to enable the council to proceed with essential works without delay. One of those involved the dump, which had to be expanded enormously to accommodate all the material that had to be disposed of. Subsequently, I met with the mayor and discussed with him the ongoing funding arrangements. Again, the member for Victoria River and I took a proposal to Cabinet whereby an additional $1m advance was provided to enable the cash-flow problems to be overcome. With a problem such as this ...

Ms Martin interjecting.

Mr REED: I would not expect the member for Fannie Bay to understand. She does not understand even the very basic principles of government. Therefore, she would not understand something as complex as funding arrangements. Under the natural disaster relief arrangements, costs incurred by state or territory governments and local governments are reimbursed to a certain percentage, based on a formula. In rough terms, that will be about 50%. Of the $3.4m costs incurred by Katherine Town Council, it could expect to receive from the Commonwealth in the order of $1.7m.

Ms Martin: And nothing from the Territory taxpayer.

Madam SPEAKER: Order! Member for Fannie Bay, allow the minister to continue.

Mr REED: There will be some delay in the receipt of Commonwealth funding by Katherine Town Council, and that is why we have advanced $1.2m to the council. The Territory government is in exactly the same position, but to a much larger degree. Our problem is that we have had unexpectedly to spend somewhere in the order of $70m to this time, and the figure will increase. In relation to our overall budget, that is a large slice of money. However, we will determine how to meet those costs. We have given an assurance to the people of Katherine that we will make good the damage that was done by the flood.

Ms Martin interjecting.

Mr REED: I know the member for Fannie Bay does not accept that anyone should have any responsibility for anything. It should be a lovely, pristine world in which, whenever anyone has a problem, they are able to go to someone else and request them to solve it. However, life ain't like that.

Members interjecting.

Mr REED: From the point of view ...

Members interjecting.

Madam SPEAKER: Order!

Mr MITCHELL: A point of order, Madam Speaker! People listening this morning to this broadcast ...

Mr Stirling: Sit down, you clown! Sit down, you goose!

Madam SPEAKER: Order!

Mr MITCHELL: They would like to hear the answers to the questions asked.

Madam SPEAKER: The member for Millner is quite right. There are far too many interjections. The Treasurer is trying to answer the question, and I presume the member for Arnhem wants to hear that answer. Members on my left, please refrain from interjecting. You are being very rabbly this morning. Treasurer, please finish your answer.

Mr REED: It is a fact of life that local government bodies, territory or state governments and, indeed, individuals have responsibilities. The responsibility of Katherine Town Council, as with the Northern Territory government, is to look after its assets. If it needs to repair them following a flood ...

Ms Martin: You total Scrooge!

Mr REED: Madam Speaker, the member for Fannie Bay says that I am a total Scrooge. Without delay and without hesitation, we have spent ...

Members interjecting.

Mr REED: Decisions were made in a matter of

Page 189

hours in relation to the expenditure of tens of millions of dollars. Houses are being handed back to the people of Katherine. They have been repaired. Schools have been rebuilt. Roads have been restored. The opposition has not been able to hold even one meeting to select a nominee for a Senate replacement since 6 February. That is how organised members opposite are. They are unable to meet that single responsibility - to hold a meeting to select a nominee for a Senate seat.

Mrs HICKEY: A point of order, Madam Speaker! The member for Katherine has been on his feet for some time. He has wasted half of Question Time debating issues concerning the Labor Party. I ask you to direct him to answer the question.

Mr REED: Madam Speaker, we are talking about responsibilities. Members opposite are unable even to recognise them, let alone meet them.

Members should recall - although those on the opposition benches may not because they do not pay attention - that the government also allocated $550 000 to assist sporting groups, not only in Katherine but across the flood-damaged region. Not once was it approached by the member for Arnhem on behalf of those communities in his electorate that were affected by flooding. The work had to be done by the member for Victoria River who inquired as to what communities might want assistance in the Arnhem electorate. The member for Arnhem was sitting in the comfort of his electorate office in the northern suburbs of Darwin. That shows the level of concern he has for his constituents. He would not even make a representation on their behalf.

Mr Ah Kit interjecting.

Mr REED: You sit in the comfort of your office, but you will not get away with it. The member for Victoria River is doing the work for you and so is the government. Stay in the comfort of your Darwin office. We will look after the flood victims in your electorate.

Katherine Town Council has been provided with assistance in the form of a $1.2m advance. In relation to its overall financial demands as a result of the flood, I sat down with the mayor and I have corresponded with the council. I have explained that the council has responsibilities. It may not want to go into debt but, in the face of the need to meet its costs, the council has the capacity to take out a loan. On advice from the council, it will not need to take out a loan to the extent of the costs that will not be met by the national disaster relief arrangements. It has some capacity, through good management, to meet some of its costs without using a loan.

In the fairyland of the members opposite, people put out their hands and expect a solution to be provided to them. We live in the real world, Madam Speaker. This government has committed $70m to correcting the problems in Katherine. We have met many of the costs that might otherwise have been met by Katherine Town Council in any event, in terms of the rehabilitation of some facilities. The government has provided assistance in that regard. The council has not received that assistance in cash but it has certainly received it in practical terms and in kind. The Territory government has done work that otherwise the council might well have been required to fund. I suggest to the member for Arnhem that he not make suggestions, from the comfort of his northern suburbs office, that this government has not assisted Katherine Town Council when he has not even assisted constituents in his own electorate.

Page 190
Last updated: 09 Aug 2016