Mr BONSON - 2006-10-11
The construction industry is an important economic driver in the Territory which has been bucking national trends. Can Territorians be confident that the construction industry will be sustained over the medium term, or is it a boom/bust cycle?
ANSWER
Madam Speaker, traditionally, the Territory has had a history of boom and bust cycles, however we should have every confidence that the current fairly robust construction industry will be sustained for some time, certainly into the medium future.
We have evidence for that, both in work in progress and work in the pipeline. If we look across the Territory, in Alice Springs, the government’s commitment to the Alice Springs Hospital; associated health buildings; the Mereenie Loop; the Desert Knowledge Precinct; private investment in projects such as the Yeperenye Shopping Centre; residential allotments; extensions to Old Timers; and additional serviced apartments. From around September onwards, we would anticipate, in public sector infrastructure alone, a roll-out of around $30m in addition to that work. Alice Springs and nearby will be cranking up across the construction industry.
In the Katherine district, with expenditure on the Victoria Highway, a large bill looming. There are healthy prospects in construction over the coming 12 months from Northern Territory government spending. There are healthy prospects from proposed spending by Defence as well. Next year, enormous expansions of RAAF Base at Tindal, my old base, alone are valued at around $80m.
In Darwin and Palmerston, the education projects around creating the middle schools program; expenditure on roads; the work on the ship loader; the Marrara home of soccer; and the fire station will keep builders, subcontractors and developers pretty happy looking forward. In addition, investment by the private sector in the economy in projects will go well into the future and also drive construction and employment.
The Darwin Waterfront and Convention Centre, a joint public and private project, is likely to sustain construction up to the next 10 to 15 years. The development of projects such as the condensate facility; the construction of the Darwin Business Park; Synergy, at around $30m; Chinatown, at around $100m; the Pandanus Outrigger 26-storey is a $50m project. All are there to sustain the industry over the next few years.
Residential building has moderated in growth but is still at high levels. Dwelling commencements are up around 1.1% in 2005-06; that is off the back of a record year in 2004-05. So if there is some moderation in the growth rate, that is not surprising given the record high levels that we have been seeing. Housing finance for owner occupation is growing at a rate of 22.3% compared to a national average of 12.2%. Our continued commitment to those very high levels of cash in the infrastructure means that the construction industry can have, and should have, confidence of continuing government support over the next few years and beyond.
We looked at the rule of thumb: every $110 000 spent in infrastructure by the government drives one job in the construction industry. On that basis, the Martin government’s construction budget probably holds up 4500 to 5000 jobs directly in construction. Yes, the construction industry is an important engine in the economy, an important driver of growth and, on those figures and projects alone, there is growth there to be sustained for some years to come.
ANSWER
Madam Speaker, traditionally, the Territory has had a history of boom and bust cycles, however we should have every confidence that the current fairly robust construction industry will be sustained for some time, certainly into the medium future.
We have evidence for that, both in work in progress and work in the pipeline. If we look across the Territory, in Alice Springs, the government’s commitment to the Alice Springs Hospital; associated health buildings; the Mereenie Loop; the Desert Knowledge Precinct; private investment in projects such as the Yeperenye Shopping Centre; residential allotments; extensions to Old Timers; and additional serviced apartments. From around September onwards, we would anticipate, in public sector infrastructure alone, a roll-out of around $30m in addition to that work. Alice Springs and nearby will be cranking up across the construction industry.
In the Katherine district, with expenditure on the Victoria Highway, a large bill looming. There are healthy prospects in construction over the coming 12 months from Northern Territory government spending. There are healthy prospects from proposed spending by Defence as well. Next year, enormous expansions of RAAF Base at Tindal, my old base, alone are valued at around $80m.
In Darwin and Palmerston, the education projects around creating the middle schools program; expenditure on roads; the work on the ship loader; the Marrara home of soccer; and the fire station will keep builders, subcontractors and developers pretty happy looking forward. In addition, investment by the private sector in the economy in projects will go well into the future and also drive construction and employment.
The Darwin Waterfront and Convention Centre, a joint public and private project, is likely to sustain construction up to the next 10 to 15 years. The development of projects such as the condensate facility; the construction of the Darwin Business Park; Synergy, at around $30m; Chinatown, at around $100m; the Pandanus Outrigger 26-storey is a $50m project. All are there to sustain the industry over the next few years.
Residential building has moderated in growth but is still at high levels. Dwelling commencements are up around 1.1% in 2005-06; that is off the back of a record year in 2004-05. So if there is some moderation in the growth rate, that is not surprising given the record high levels that we have been seeing. Housing finance for owner occupation is growing at a rate of 22.3% compared to a national average of 12.2%. Our continued commitment to those very high levels of cash in the infrastructure means that the construction industry can have, and should have, confidence of continuing government support over the next few years and beyond.
We looked at the rule of thumb: every $110 000 spent in infrastructure by the government drives one job in the construction industry. On that basis, the Martin government’s construction budget probably holds up 4500 to 5000 jobs directly in construction. Yes, the construction industry is an important engine in the economy, an important driver of growth and, on those figures and projects alone, there is growth there to be sustained for some years to come.
Last updated: 09 Aug 2016