Department of the Legislative Assembly, Northern Territory Government

Mr ADAMSON - 1994-06-28

Mr Speaker, I refer to the ongoing negotiations between the Territory government and the major fuel companies over the oil tank farm facility. Have there been any further developments in those negotiations? When does the minister expect to begin seeing some of the oil tanks moved?

ANSWER

This project has been on the Northern Territory government's books for the last 10 years probably. When I was first Minister for Lands in 1985, we were approaching the oil companies about relocating the oil tanks.

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Mr Bailey: Here we go - 'Tank farm moving' will appear on the front page of the newspaper again!

Mr HATTON: Will you ask the whinger to shut up, Mr Speaker?

Mr SPEAKER: Order! The member for Wanguri.

Mr HATTON: At that stage, we were approaching the oil companies about relocating the oil tanks. That has been a consistent goal of the Northern Territory government for well over a decade. We gained some support for this project from the federal government when we convinced Hon Brian Howe to include the relocation of the oil tank farm in the Building Better Cities project. That attracted $7.5m of Commonwealth assistance based on a dollar-for-dollar contribution from the Northern Territory government, making a total government contribution of $15m. We have had intense negotiations with the oil companies for more than 12 months. Anybody who has negotiated with the oil industry, which includes some of the largest companies in the world, will know that it has very hard negotiators.

I am very pleased to advise the House that we achieved a breakthrough in the negotiations with the oil companies last week when we reached agreement in principle to relocate the oil tanks to East Arm. They will be relocated in a 2-stage process close to the new port that is under construction. In stage 1, the Shell depot and the BP depot near the city will be closed and a joint user facility operated initially through the BP depot in Stuart Park. That will release for development by 1996 some 8.5 ha of land from the city down to Dinah Beach Road. The companies have agreed to operate from that premise for some years. The agreement provides for the relocation of the tanks to East Arm to be completed within 8 years. Thus, the first stage will release 8.5 ha of that strategically-located inner city land which will be cleared and rehabilitated ready for development by 1996. When completed, stage 2 will release a further 14 ha for development. This land will be principally for medium-density housing construction on the other side of Dinah Beach Road.

In anticipation of questions about One-Mile Dam, we have given undertakings already that One-Mile Dam will be relocated. Earlier this year, I had discussions with Bernie Valadian. We intend to work closely with his organisation to ensure that its utilisation of that site is not, if one likes, a wart on the development but fits comfortably into the overall scheme. That association is keen to work towards that objective. Obviously, it will be a residential development as it is at the moment.

The release of that 8.5 ha of land will expand our central business district down towards Dinah Beach Road at Frances Bay with a mix of commercial and, I imagine, high-rise residential developments in the area. That very significant development will enhance Darwin dramatically, provide for significant urban consolidation and beautification and remove a potential health, safety and traffic hazard. The first stage will remove the necessity for oil road trains to move about close to and around the CBD, which is a current problem. It will also improve the public's health, safety and amenity by removing a hazardous land use and provide a more consolidated urban form through the redevelopment of strategically-located inner city land, thereby improving public transport, reducing the reliance on private vehicles and delaying pressures for new urban development at the city's fringes. It will provide for the expansion of housing options by producing alternative, high-density dwellings and more affordable housing on inner city sites. Finally, it will revitalise the CBD with significant new trading, recreational, entertainment, cultural and tourism opportunities

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which will be underpinned by a significantly increased CBD and permanent inner suburban residential population. The planning and development will be well coordinated with ample public consultation and attention to conservation values and environmental impact.

The answer to the member's question is that I expect the actual dismantling of the tanks to be well under way in early 1995. I believe every Territorian will welcome that. It demonstrates the professional way in which our CLP government is able to bring real change and benefit to the Northern Territory community.

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Last updated: 09 Aug 2016