Mr BONSON - 2002-06-20
Could you please inform the house of the latest information on consumer sentiment in the Territory?
ANSWER
Madam Speaker, I thank the member for Millner for his question. At least I am getting questions in relation to the economy and business from this side of the House. Since October, I have not had one question from the shadow minister for business in the Northern Territory. They say they are so interested in this community, but I cannot get a question from them.
The latest Territory economic review does indicate a welcome pick-up in consumer demand in the Northern Territory. This comes on top of a number of economic indicators that are starting to show the Territory economy picking up, but still acknowledging that many sectors of the economy are still doing it tough, and have been doing it very tough over the last two years. Of course, as government, we have to be wary of picking out individual economic indicators in isolation of the trend lines. We are starting to see those trend lines turn up, and this is another indicator that is starting to move skyward again, which is going to be pleasing for all members in this House.
I have been talking to businesses across the Northern Territory, in my role, in both a formal and informal way. As I have said, some businesses in the Northern Territory are doing very well, others are still struggling very badly. Another key indicator that came out recently was that business bankruptcies in the Northern Territory were the second lowest in the rest of Australia over the last quarter. That is not saying that people are not still doing it tough. We acknowledge that they are doing it tough, but those indicators are starting to trend forward.
When we asked questions about the economy and business over the previous two years, the members opposite flatly denied that there was a problem. However, it is important for the government to have a leadership role and to get out and promote the Northern Territory as being a great place for investment. Again, I would encourage the opposition to do this. You have another three-and-a-half to four years in opposition so, in terms of the political cycle, it is a very good time for a responsible opposition in the Northern Territory interested in investment and economic growth, to be actually looking at these indicators and understanding that, on the back of the railway and gas developments, the economy is picking up. They should be out there talking up investments in the Northern Territory, as opposed to talking it down, being so negative and rubbishing out, via fax streams, the type of drivel that they have been putting out. It is very irresponsible; showing no confidence in the Northern Territory economy.
Territory state final demand increased by 6.6% in the year to the March quarter 2002. Good news for Territory business. Consumption expenditure grew by 3.2%, and investment expenditure increased by 20.6%. So, we are seeing people starting to come back and invest. As I said, the major future projects, such as Bayu-Undan - and we have seen 300 delegates here at SEAAOC this week. There were 50 businesses represented at the Oil and Gas Expo. The future is looking bright, and that opportunity in the Timor Sea is starting to be turned into a reality; great news for Darwin and the Northern Territory.
They are some of the strengthening indicators; we have some weaknesses out there still. The latest figures for population growth show that it has been falling since 1997, particularly in response to the finalisation of the Defence Force relocation. We have seen a net migration loss from the Northern Territory. As I previously indicated, within the next month or two we will be releasing our population strategy to encourage migration and net population growth to the Northern Territory.
We have seen that new housing construction has also decreased in the Territory, as it would - if we do not have growth in population, we are not going to see growth in residential construction - and has nationally, with the effects of rising interest rates - they do not help - on the back of the GST. The QuickStart initiatives by this and the previous government were very good initiatives at a time of extraordinarily depressed economic and construction activity. What those types of initiatives do is bring forward demand and commitments, and that tends to leave a hole behind them. However, we had to do those things and respond with those initiatives, given the state of the construction industry at the time.
As the Chief Minister has earlier indicated, we see unemployment continuing to fall - a figure of 5.2%. We are starting to see a cautious pick-up in the economy, and I would encourage members opposite and all members to back the Northern Territory and the fact that the investment in infrastructure and in onshore oil and gas is really going to create a climate of good investment in the Territory. A good fiscal position by government is going to help that. I would urge members opposite to be a little more responsible and show a little more faith in the Territory economy and start encouraging people to invest.
ANSWER
Madam Speaker, I thank the member for Millner for his question. At least I am getting questions in relation to the economy and business from this side of the House. Since October, I have not had one question from the shadow minister for business in the Northern Territory. They say they are so interested in this community, but I cannot get a question from them.
The latest Territory economic review does indicate a welcome pick-up in consumer demand in the Northern Territory. This comes on top of a number of economic indicators that are starting to show the Territory economy picking up, but still acknowledging that many sectors of the economy are still doing it tough, and have been doing it very tough over the last two years. Of course, as government, we have to be wary of picking out individual economic indicators in isolation of the trend lines. We are starting to see those trend lines turn up, and this is another indicator that is starting to move skyward again, which is going to be pleasing for all members in this House.
I have been talking to businesses across the Northern Territory, in my role, in both a formal and informal way. As I have said, some businesses in the Northern Territory are doing very well, others are still struggling very badly. Another key indicator that came out recently was that business bankruptcies in the Northern Territory were the second lowest in the rest of Australia over the last quarter. That is not saying that people are not still doing it tough. We acknowledge that they are doing it tough, but those indicators are starting to trend forward.
When we asked questions about the economy and business over the previous two years, the members opposite flatly denied that there was a problem. However, it is important for the government to have a leadership role and to get out and promote the Northern Territory as being a great place for investment. Again, I would encourage the opposition to do this. You have another three-and-a-half to four years in opposition so, in terms of the political cycle, it is a very good time for a responsible opposition in the Northern Territory interested in investment and economic growth, to be actually looking at these indicators and understanding that, on the back of the railway and gas developments, the economy is picking up. They should be out there talking up investments in the Northern Territory, as opposed to talking it down, being so negative and rubbishing out, via fax streams, the type of drivel that they have been putting out. It is very irresponsible; showing no confidence in the Northern Territory economy.
Territory state final demand increased by 6.6% in the year to the March quarter 2002. Good news for Territory business. Consumption expenditure grew by 3.2%, and investment expenditure increased by 20.6%. So, we are seeing people starting to come back and invest. As I said, the major future projects, such as Bayu-Undan - and we have seen 300 delegates here at SEAAOC this week. There were 50 businesses represented at the Oil and Gas Expo. The future is looking bright, and that opportunity in the Timor Sea is starting to be turned into a reality; great news for Darwin and the Northern Territory.
They are some of the strengthening indicators; we have some weaknesses out there still. The latest figures for population growth show that it has been falling since 1997, particularly in response to the finalisation of the Defence Force relocation. We have seen a net migration loss from the Northern Territory. As I previously indicated, within the next month or two we will be releasing our population strategy to encourage migration and net population growth to the Northern Territory.
We have seen that new housing construction has also decreased in the Territory, as it would - if we do not have growth in population, we are not going to see growth in residential construction - and has nationally, with the effects of rising interest rates - they do not help - on the back of the GST. The QuickStart initiatives by this and the previous government were very good initiatives at a time of extraordinarily depressed economic and construction activity. What those types of initiatives do is bring forward demand and commitments, and that tends to leave a hole behind them. However, we had to do those things and respond with those initiatives, given the state of the construction industry at the time.
As the Chief Minister has earlier indicated, we see unemployment continuing to fall - a figure of 5.2%. We are starting to see a cautious pick-up in the economy, and I would encourage members opposite and all members to back the Northern Territory and the fact that the investment in infrastructure and in onshore oil and gas is really going to create a climate of good investment in the Territory. A good fiscal position by government is going to help that. I would urge members opposite to be a little more responsible and show a little more faith in the Territory economy and start encouraging people to invest.
Last updated: 09 Aug 2016