Department of the Legislative Assembly, Northern Territory Government

Mr STYLES - 2012-10-24

Minister, can you please advise the House of the challenges the new prison will place on the budget?

ANSWER

Madam Speaker, I thank the honourable member for his question because the operations of the prison and law and order issues are at the front of his mind. He raises those issues with me on a very regular basis.

The first thing I did when becoming Minister for Correctional Services was to examine the contracts to see how tightly locked down they were. The former government did one thing right; it had the contracts locked down tight. They are tighter than a frog’s bottom, and that is watertight.

The former government promised the whole thing would only cost us $495m. Hogwash! The fact is, it will cost us …

Ms Lawrie: Construction costs.

Mr ELFERINK: I hear the interjection: ‘it is only the construction cost’. I am talking about the construction cost. It will cost more than $495m and the ongoing liabilities the Northern Territory government is exposed to in this area will mean we will have to pay between $600m and $700m for those liabilities we carry for the next 30 years. Moreover, let us examine what that means when you reach that 30 year point and look backwards. You will suddenly realise the government will have parted with somewhere around $1.8bn to $2bn to …

Ms Lawrie: The Auditor-General does not agree with you.

Madam SPEAKER: Order!

Mr ELFERINK: They do not like this and I am not at all surprised they are embarrassed because that is how much Territory taxpayers will have to part with. What is worse, the day this prison opens, if things keep going the way they are, it will be filled to its gunnels. That means I, or whoever the Correctional Services minister is into the future, will be in the horrible position of having to say to Cabinet colleagues, ‘Look, I need some more money to keep Berrimah Prison open’.

That is the quality of mismanagement we have seen from the Labor Party in the Northern Territory. This is the quality of mismanagement we have to correct. The impact on this budget, the next budget, and budgets for the next 30 years will be felt and resonate all that way through. I am not at all surprised members opposite are now embarrassed into silence, because it is a shocking legacy they have left the people of the Northern Territory. I am grateful for an opportunity to try to help the Treasurer adjust this into the future.
Last updated: 09 Aug 2016