Department of the Legislative Assembly, Northern Territory Government

Ms LAWRIE - 2012-10-30

You have railed, in terms of the Power and Water debt the government has - you say the cost of living is important and you are going to bring down the cost of living in the Territory. How are your plans to massively increase the prices of power, water and sewerage for Territorians compatible with the idea you are going to bring down the cost of living? I note that in the last three financial years of the previous CLP government they ripped more funding out of Power and Water than what they invested. Can you categorically rule out power, water and sewerage price increases above the CPI?

ANSWER

Madam Speaker, I thank the Leader of the Opposition for her question. Yes you did leave Power and Water in a terrible mess, thanks to your work as the former Treasurer of the former Labor government. Power and Water is now contributing to about 45% of the fiscal imbalance. Despite recommendations from the 2009 Reeves report, which she failed to implement - the former government decided that the Reeves report was not to their satisfaction and they failed to implement all recommendations. Had they done so we would not find ourselves in the situation we are in where Power and Water is trading at an almost unsustainable level.

As a new government it is important that the reform of Power and Water and making it run more efficiently is a huge priority. Tariffs have to be considered in that equation. You failed to increase tariffs sufficiently. You failed to put in the incremental rises every other state and jurisdiction in Australia put in place and in failing to do so you have put the whole of the Northern Territory’s financial position in a perilous situation.

In answer to the Leader of the Opposition’s question, we will do whatever we have to. Some decisions will be very difficult to make but we will do whatever we have to, to make Power and Water commercially sustainable for the future of the Northern Territory.
Last updated: 09 Aug 2016