Mr MILLS - 2009-05-05
In 2004, nett debt plus employee liabilities equalled $2.8bn. This figure is projected to blow out to $6bn in the next few years. That equates to over $100 000 …
Dr BURNS: A point of order, Madam Speaker! Standing Order 112(2) in relation to questions - should not contain statements, unduly long statements, arguments. I believe the member for Blain …
Members interjecting.
Madam SPEAKER: Order!
Dr BURNS: No, Madam Speaker, this is a very important point of order because last week we had in this place a whole range of questions which I believe contravened Standing Order 112. Members of the opposition should keep their questions in accordance with orders of this House. I ask you to consider this point of order I am raising today.
Mr ELFERINK: Speaking to the point of order, Madam Speaker! This process of framing up the structure around the question is well established in this parliament, and has been around for a very long time. Asking a question without any sort of background to the question would often render the question nonsensical. It is important to create a background upon which the question reflects.
Madam SPEAKER: Leader of the Opposition, I will allow you to continue, bearing in mind the standing orders. Last week there were some questions which were particularly long. I will allow latitude in this matter. You may continue, Leader of the Opposition.
Mr MILLS: Madam Speaker, it only has four sentences. Chief Minister, in 2004 …
Ms Lawrie: Why do you not ask the Treasurer?
Ms Purick: Oh, wait your turn.
Madam SPEAKER: Order!
Mr MILLS: I am asking the questions here.
Madam SPEAKER: Order! The Leader of the Opposition has the call.
Mr MILLS: In 2004, nett debt plus employee liabilities equalled $2.8bn. This figure is projected to blow out to $6bn in the next few years. That equates to over $100 000 for the average Territory family. Do you admit that this will harshly and adversely impact on the delivery of services to Territorians now and well into the future?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. Budget 2009-10 is about protecting Territory jobs. That is the fundamental framework that this budget has been cast in. At a time when we have a global financial crisis impacting on every developed economy in the world to an extent not been seen for 75 years and that has seen Australia move into recession, this 2009-10 Budget is about protecting Territory jobs.
After six surpluses in a row where, cumulatively over those surpluses, $380m-worth of surpluses, this government has delivered, we have taken the very deliberate decision to go into temporary deficit to fund a $1.3bn infrastructure program to protect Territory jobs, and to protect Territory businesses. That is what this government is all about.
The Leader of the Opposition can come here with some equations that he has cobbled together that I am sure my colleague, the Treasurer, will demolish in terms of the accuracy of his assertions. Fundamentally, the Territory government budget is very much like a household budget. Most Territorians understand that you do have to borrow money for significant investments. That is what we have done in this budget. In the same way that mums and dads borrow money to build a house, that is what we are doing.
It is about your capacity to repay. Do we have the capacity to repay the borrowings? Yes we do. Let us look at where we are today since 2001, over eight years of Labor government. We have turned the economy of the Northern Territory around. We have grown thousands of jobs in the Territory. We have run economic growth throughout our term of government, ahead of the rest of the nation. We have had population growth, ahead of the long-term averages, ahead of the rest of the nation. We have done that as well as retiring debt.
If we look at this chart, which is nett debt to revenue, this is about the amount of money coming in and the capacity to pay the debt as a percentage of that. In 2001, when we came to government, even with the last two CLP budgets that were in extraordinary deficits, the CLP could not run surplus budgets in good economic times. The rest of Australia was in an economic growth phase and the CLP ran deficit budgets.
In 2001, nett debt was 61% of revenue. That is what we inherited when we came to government. Today the forecast for nett debt in terms of percentage of revenue is 28%. We have significantly improved the fiscal books of the Northern Territory government.
We have done it at a time when we have also seen thousands of jobs in the Northern Territory, the strongest population growth for 20 years, economic growth, and private sector investment outstripping the rest of the nation. This budget is about protecting Territory jobs in what is the most difficult economic time that this country has faced in over 70 years.
Dr BURNS: A point of order, Madam Speaker! Standing Order 112(2) in relation to questions - should not contain statements, unduly long statements, arguments. I believe the member for Blain …
Members interjecting.
Madam SPEAKER: Order!
Dr BURNS: No, Madam Speaker, this is a very important point of order because last week we had in this place a whole range of questions which I believe contravened Standing Order 112. Members of the opposition should keep their questions in accordance with orders of this House. I ask you to consider this point of order I am raising today.
Mr ELFERINK: Speaking to the point of order, Madam Speaker! This process of framing up the structure around the question is well established in this parliament, and has been around for a very long time. Asking a question without any sort of background to the question would often render the question nonsensical. It is important to create a background upon which the question reflects.
Madam SPEAKER: Leader of the Opposition, I will allow you to continue, bearing in mind the standing orders. Last week there were some questions which were particularly long. I will allow latitude in this matter. You may continue, Leader of the Opposition.
Mr MILLS: Madam Speaker, it only has four sentences. Chief Minister, in 2004 …
Ms Lawrie: Why do you not ask the Treasurer?
Ms Purick: Oh, wait your turn.
Madam SPEAKER: Order!
Mr MILLS: I am asking the questions here.
Madam SPEAKER: Order! The Leader of the Opposition has the call.
Mr MILLS: In 2004, nett debt plus employee liabilities equalled $2.8bn. This figure is projected to blow out to $6bn in the next few years. That equates to over $100 000 for the average Territory family. Do you admit that this will harshly and adversely impact on the delivery of services to Territorians now and well into the future?
ANSWER
Madam Speaker, I thank the Leader of the Opposition for his question. Budget 2009-10 is about protecting Territory jobs. That is the fundamental framework that this budget has been cast in. At a time when we have a global financial crisis impacting on every developed economy in the world to an extent not been seen for 75 years and that has seen Australia move into recession, this 2009-10 Budget is about protecting Territory jobs.
After six surpluses in a row where, cumulatively over those surpluses, $380m-worth of surpluses, this government has delivered, we have taken the very deliberate decision to go into temporary deficit to fund a $1.3bn infrastructure program to protect Territory jobs, and to protect Territory businesses. That is what this government is all about.
The Leader of the Opposition can come here with some equations that he has cobbled together that I am sure my colleague, the Treasurer, will demolish in terms of the accuracy of his assertions. Fundamentally, the Territory government budget is very much like a household budget. Most Territorians understand that you do have to borrow money for significant investments. That is what we have done in this budget. In the same way that mums and dads borrow money to build a house, that is what we are doing.
It is about your capacity to repay. Do we have the capacity to repay the borrowings? Yes we do. Let us look at where we are today since 2001, over eight years of Labor government. We have turned the economy of the Northern Territory around. We have grown thousands of jobs in the Territory. We have run economic growth throughout our term of government, ahead of the rest of the nation. We have had population growth, ahead of the long-term averages, ahead of the rest of the nation. We have done that as well as retiring debt.
If we look at this chart, which is nett debt to revenue, this is about the amount of money coming in and the capacity to pay the debt as a percentage of that. In 2001, when we came to government, even with the last two CLP budgets that were in extraordinary deficits, the CLP could not run surplus budgets in good economic times. The rest of Australia was in an economic growth phase and the CLP ran deficit budgets.
In 2001, nett debt was 61% of revenue. That is what we inherited when we came to government. Today the forecast for nett debt in terms of percentage of revenue is 28%. We have significantly improved the fiscal books of the Northern Territory government.
We have done it at a time when we have also seen thousands of jobs in the Northern Territory, the strongest population growth for 20 years, economic growth, and private sector investment outstripping the rest of the nation. This budget is about protecting Territory jobs in what is the most difficult economic time that this country has faced in over 70 years.
Last updated: 09 Aug 2016