Mr BARRETT - 2014-10-28
Can you please update the Assembly on the latest positive economic outlook issues for the Territory reported by Deloitte Access Economics?
ANSWER
Madam Speaker, I thank the member for Blain for his question. He is the parliamentary secretary for business and is doing an outstanding job in that role. I thank him for travelling to Tennant Creek for an October Business Month function on Saturday night. I understand it was very well attended, and the Country Liberals government’s work in Tennant Creek is well accepted.
The member for Blain’s question refers to the latest Deloitte Access Economics report, which forecasts the Territory’s economic growth to average a very healthy 4.9% over the next five years until 2017-18, well ahead of the national average of 2.9%. The Territory had the highest economic growth figure in 2012-13, with Deloitte’s estimate that this was to be repeated in 2013-14 with a 5.5% growth aspect …
Mr Wood: Due to Ichthys.
Mr GILES: Sorry, member for Nelson?
Mr Wood: Due to Ichthys only; read the whole report.
Mr GILES: The analysis predicts job numbers will continue to grow by 2.6% each year for the next five years against the national average of 1.4%. That focus is in line with other information we are seeing such as the CommSec State of the States report, which shows the Northern Territory leading in five out of eight important criteria, and also reflects on the Sensis Business Index, which confirms a 33% surge in confidence amongst small- and medium-sized Territory businesses.
I note the comment made by the member for Nelson about INPEX and the reliance on that. Yes, there is no doubt when we came to government there was a one-shot-in-the-locker economy. We are working very hard to diversify the economy.
I do not have to look any further than to my right at the Minister for Tourism, and what is happening in the tourism industry with rebuilding tourist numbers. The Minister for Mines and Energy issued two hydrocarbon licences this year, the first in 38 years. We changed the Pastoral Act where you can now have agribusiness and horticulture. We are diversifying our economy in the way we are doing things. The Tiwi Islands is getting forestry up and running there. We are supporting the new port on the Tiwi Islands.
These are some of the areas where we are trying to diversify the economy so it is not a boom-and-bust cycle. We do not want to get to a time similar to when Bechtel came to Darwin with LNG and INPEX came with a big bump. We have to try to smooth that economic bounce out. That is what we are trying to do by diversifying our economy. We are trying to work on onshore natural gas development with the pipeline so we can get more continuity of development in the Northern Territory. It is a challenge.
That is what we mean when we talk about the potential proceeds of the sale of TIO being able to support local industry development through job creation and the establishment of a Territory future infrastructure fund to see a pipeline of projects coming here, so we maintain that continuity of employment and economic growth in the Territory. It is a challenge. It was a one shot-in-the-locker economy we inherited; we are diversifying and trying to grow it for the future.
ANSWER
Madam Speaker, I thank the member for Blain for his question. He is the parliamentary secretary for business and is doing an outstanding job in that role. I thank him for travelling to Tennant Creek for an October Business Month function on Saturday night. I understand it was very well attended, and the Country Liberals government’s work in Tennant Creek is well accepted.
The member for Blain’s question refers to the latest Deloitte Access Economics report, which forecasts the Territory’s economic growth to average a very healthy 4.9% over the next five years until 2017-18, well ahead of the national average of 2.9%. The Territory had the highest economic growth figure in 2012-13, with Deloitte’s estimate that this was to be repeated in 2013-14 with a 5.5% growth aspect …
Mr Wood: Due to Ichthys.
Mr GILES: Sorry, member for Nelson?
Mr Wood: Due to Ichthys only; read the whole report.
Mr GILES: The analysis predicts job numbers will continue to grow by 2.6% each year for the next five years against the national average of 1.4%. That focus is in line with other information we are seeing such as the CommSec State of the States report, which shows the Northern Territory leading in five out of eight important criteria, and also reflects on the Sensis Business Index, which confirms a 33% surge in confidence amongst small- and medium-sized Territory businesses.
I note the comment made by the member for Nelson about INPEX and the reliance on that. Yes, there is no doubt when we came to government there was a one-shot-in-the-locker economy. We are working very hard to diversify the economy.
I do not have to look any further than to my right at the Minister for Tourism, and what is happening in the tourism industry with rebuilding tourist numbers. The Minister for Mines and Energy issued two hydrocarbon licences this year, the first in 38 years. We changed the Pastoral Act where you can now have agribusiness and horticulture. We are diversifying our economy in the way we are doing things. The Tiwi Islands is getting forestry up and running there. We are supporting the new port on the Tiwi Islands.
These are some of the areas where we are trying to diversify the economy so it is not a boom-and-bust cycle. We do not want to get to a time similar to when Bechtel came to Darwin with LNG and INPEX came with a big bump. We have to try to smooth that economic bounce out. That is what we are trying to do by diversifying our economy. We are trying to work on onshore natural gas development with the pipeline so we can get more continuity of development in the Northern Territory. It is a challenge.
That is what we mean when we talk about the potential proceeds of the sale of TIO being able to support local industry development through job creation and the establishment of a Territory future infrastructure fund to see a pipeline of projects coming here, so we maintain that continuity of employment and economic growth in the Territory. It is a challenge. It was a one shot-in-the-locker economy we inherited; we are diversifying and trying to grow it for the future.
Last updated: 09 Aug 2016