Department of the Legislative Assembly, Northern Territory Government

Mr WOOD - 2012-05-03

On the ABC Country Hour on 30 March, you said the NT government will contribute a multimillion dollar assistance package toward the development of an abattoir in Darwin’s rural area. On 2 May, on the ABC Country Hour, it was reported the minister had walked away from the multimillion dollar package promised for the proposed Darwin abattoir. Could you please advise what has been promised by the government? Is the statement by Stu Cruden from AAco, that the government promise was an empty gesture, true?

ANSWER

Madam Speaker, I thank the member for his question. It gives us the opportunity to make clear what we said at the time. AAco proposed to put a commercial abattoir in the Northern Territory. AAco said it required some assistance on our part, which we discussed with them. One was a redirection of the Stuart Highway for safety reasons. However, as you are well aware, the Stuart Highway comes under Commonwealth jurisdiction and the money spent on the highway is Commonwealth money. We lobbied on their behalf to the federal government that should this abattoir go ahead, money should be reprioritised to divert the Stuart Highway for safety reasons.

AAco sources said it would like a hardstand and power points in the port. If it goes ahead, it will have to have refrigerated containers. We also said if it decides to build the abattoir here the Port Corporation will put hardstands and power outlets in, and we would have to negotiate, on a commercial basis, a user pay facility. The same applies with Power and Water. The total estimate for those facilities was about $9m. Money is not going to be given to any private industry. As infrastructure has to be put in place for the abattoir to be up and running, it will require these facilities. However, the abattoir, or any industry using these facilities, has to pay like any other private business. It is not fair for the government to subsidise private business in the Territory. Why AAco’s abattoir and not Joe Blow’s abattoir or something else? These commercial arrangements happen elsewhere in Australia.

Should the board of directors of AAco decide to build the abattoir, the government is prepared to put infrastructure in place to facilitate the development of the abattoir, but there has to be a negotiation of commercial terms with Power and Water and the Port Corporation. Is it clear now?
Last updated: 09 Aug 2016