Mrs PRICE - 2012-11-01
Now you have received the RMB progress report, what steps will you take to reduce the fiscal imbalance this year?
ANSWER
Madam Speaker, I thank the member for Stuart for her very important question. I hope those few members of the Northern Territory community who sit on the other side, who are desperately trying to defend their sad legacy, will listen to this because the Territory will note what is to come and know it is in their best interests.
Before I begin, I table the Renewable Management Board Progress Report. It is there for all to see, even the former Treasurer.
While this government has spoken directly about the need for fiscal restraint and a plan to bring the budget into balance by the end of this term – 2016 - it is apparent, from the preliminary work of the Renewable Management Board, that the starting point for the 2012-13 budget and the 2012-13 deficit is much worse than we were led to expect. In the last week I have spoken about the real fiscal deficit ...
Members interjecting.
Mr MILLS: This is not about you, former Treasurer. These matters need to be properly understood. In the last week, we have spoken about the real fiscal deficit which could exceed $900m this year. I am informed the pressure on this year’s budget comes from right across the departments.
The House has already heard of the previous government’s decision to employ workers in additional positions without any budget. I am advised instructions were given in the last months of the former government to ignore budget constraints and recruit over 90 additional staff and incur substantial increases in operational costs just in one agency. The understated staffing and substantial operational costs together result in an estimated black hole of $35m in one agency budget alone.
Another example is in Correctional Services, which is experiencing high growth in prisoner numbers driven by the approach of the previous government and the failure of the fundamental premise of the system, which is to change behaviour. An additional expenditure need of over $25m in total to 2015-16 in Alice Springs and Darwin has been identified by the agency.
It is not just a blowout in employment costs, it is reported general asset maintenance that could require large additional unbudgeted and yet to be assessed amounts in the forward estimates period to 2015-16.
One area we have had some numbers on is police infrastructure, which is reported to be in need of major repairs and maintenance across the Territory, including Berrimah headquarters. Major costs will be involved to remedy this if it is confirmed by further investigation, but the shortfall in repairs and maintenance assessed by the agency across the forward estimates period is stated as $48m.
The mini-budget to be handed down on 4 December 2012 will outline the real state of the Territory finances and what is achievable in keeping a lid on the growth of the previous government’s debt.
ANSWER
Madam Speaker, I thank the member for Stuart for her very important question. I hope those few members of the Northern Territory community who sit on the other side, who are desperately trying to defend their sad legacy, will listen to this because the Territory will note what is to come and know it is in their best interests.
Before I begin, I table the Renewable Management Board Progress Report. It is there for all to see, even the former Treasurer.
While this government has spoken directly about the need for fiscal restraint and a plan to bring the budget into balance by the end of this term – 2016 - it is apparent, from the preliminary work of the Renewable Management Board, that the starting point for the 2012-13 budget and the 2012-13 deficit is much worse than we were led to expect. In the last week I have spoken about the real fiscal deficit ...
Members interjecting.
Mr MILLS: This is not about you, former Treasurer. These matters need to be properly understood. In the last week, we have spoken about the real fiscal deficit which could exceed $900m this year. I am informed the pressure on this year’s budget comes from right across the departments.
The House has already heard of the previous government’s decision to employ workers in additional positions without any budget. I am advised instructions were given in the last months of the former government to ignore budget constraints and recruit over 90 additional staff and incur substantial increases in operational costs just in one agency. The understated staffing and substantial operational costs together result in an estimated black hole of $35m in one agency budget alone.
Another example is in Correctional Services, which is experiencing high growth in prisoner numbers driven by the approach of the previous government and the failure of the fundamental premise of the system, which is to change behaviour. An additional expenditure need of over $25m in total to 2015-16 in Alice Springs and Darwin has been identified by the agency.
It is not just a blowout in employment costs, it is reported general asset maintenance that could require large additional unbudgeted and yet to be assessed amounts in the forward estimates period to 2015-16.
One area we have had some numbers on is police infrastructure, which is reported to be in need of major repairs and maintenance across the Territory, including Berrimah headquarters. Major costs will be involved to remedy this if it is confirmed by further investigation, but the shortfall in repairs and maintenance assessed by the agency across the forward estimates period is stated as $48m.
The mini-budget to be handed down on 4 December 2012 will outline the real state of the Territory finances and what is achievable in keeping a lid on the growth of the previous government’s debt.
Last updated: 09 Aug 2016