Mr GUNNER - 2009-04-30
The Prime Minister has stated that this year’s federal budget is the hardest to frame in living memory. Is the Northern Territory facing similar issues? What will the Henderson government concentrate on in Budget 2009-10?
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. As members are aware, this is a budget that is being framed in extraordinarily difficult times. The global financial crisis has devastated economies right around the globe. It has had enormous impact on the national economy and, as a result, we are seeing, really, the first global recession in some 70 years. This makes Budget 2009-10 the toughest budget to frame in the history of budgets since self-government.
The Henderson Labor government has a key priority for Budget 2009-10, and that is protecting jobs. We will boost the infrastructure investment to protect jobs for Territorians in the toughest economic times faced by our nation. We need to keep our economy strong, and to also position the Territory to capitalise the moment the world economy starts to turn around. Inevitably, that means going into a temporary deficit. It also means closely scrutinising all aspects of government revenue and expenditure to ensure they are achieving our goals.
In Australia, the crisis has had a massive impact on GST revenues. Retail spending and consumer confidence at the national level has suffered unprecedented falls. Unemployment nationally is forecast to reach 9%, and may even go into double digits. The Northern Territory, so far, has stood firm against the significant economic decline we are seeing in the southern states. Our employment, retail spending, and growth rates are all performing much better than the national average. However, as I have consistently said, we are not immune.
The most immediate impact will be on our share of the GST. Because the total GST pool has severely contracted, our share of revenue will significantly suffer an equally steep decline. While Access Economics states the Territory’s long-term prospects remain magnificent, we cannot afford to be complacent or blindly attempt to achieve a surplus that would cost jobs. We need to act now in Budget 2009-10 to do everything we can to protect the jobs of hard-working Territorians.
ANSWER
Madam Speaker, I thank the member for Fannie Bay for his question. As members are aware, this is a budget that is being framed in extraordinarily difficult times. The global financial crisis has devastated economies right around the globe. It has had enormous impact on the national economy and, as a result, we are seeing, really, the first global recession in some 70 years. This makes Budget 2009-10 the toughest budget to frame in the history of budgets since self-government.
The Henderson Labor government has a key priority for Budget 2009-10, and that is protecting jobs. We will boost the infrastructure investment to protect jobs for Territorians in the toughest economic times faced by our nation. We need to keep our economy strong, and to also position the Territory to capitalise the moment the world economy starts to turn around. Inevitably, that means going into a temporary deficit. It also means closely scrutinising all aspects of government revenue and expenditure to ensure they are achieving our goals.
In Australia, the crisis has had a massive impact on GST revenues. Retail spending and consumer confidence at the national level has suffered unprecedented falls. Unemployment nationally is forecast to reach 9%, and may even go into double digits. The Northern Territory, so far, has stood firm against the significant economic decline we are seeing in the southern states. Our employment, retail spending, and growth rates are all performing much better than the national average. However, as I have consistently said, we are not immune.
The most immediate impact will be on our share of the GST. Because the total GST pool has severely contracted, our share of revenue will significantly suffer an equally steep decline. While Access Economics states the Territory’s long-term prospects remain magnificent, we cannot afford to be complacent or blindly attempt to achieve a surplus that would cost jobs. We need to act now in Budget 2009-10 to do everything we can to protect the jobs of hard-working Territorians.
Last updated: 09 Aug 2016