Northern Territory Second Reading Speeches

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APPROPRIATION BILL 1998-1999

(This is an uncorrected proof of the daily report. It is made available on the condition it is recognised as such.)

Bill presented and read a first time.

Mr REED (Treasurer): Madam Speaker, I move that the bill be now read a second time.

I have pleasure today in bringing down the Northern Territory's 21st budget. This is a significant landmark in the history of the Territory. Under the Country Liberal Party, the Territory has been provided with sound economic foundations. After years of responsible and pro-active government, the Territory is now on the verge of its most dynamic period in history. This budget will help Territorians capture a slice of the exciting opportunities that lie ahead, with a range of programs designed to create more jobs and investment. Enormous effort has gone into attracting billions of dollars worth of potential new projects to the Territory. It is vital that the Territory now positions itself to help ensure they go ahead.

This budget provides unequivocal support for these projects. At the same time, it delivers funding to allow Territorians to continue to enjoy Australia's best lifestyle. This is a budget which is extremely responsible. It establishes a further commitment to retiring debt that will provide a sound basis for the future. However, the Asian currency crisis is of concern. There has also been an extraordinary period of fiscal demand in recent times. The Katherine flood, Alice Springs to Darwin Railway and many other significant capital projects have placed great demands on the budget. Population growth, whilst a positive outcome, places extra demand on current expenditure through increased levels of service. Part of responsible government is to ensure there is sufficient revenue to cover this important expenditure and prevent an escalation of debt. This budget addresses that need with a limited range of equitable revenue raising measures.

I am proud to be delivering my third budget as Treasurer. It is tough, but fair; dynamic, but responsible. This is a budget which will deliver prosperity to future generations of Territorians.

THE ECONOMY

The Northern Territory has continued its impressive economic performance. In 1997, the Territory population grew by 2.2% to almost 190 000 - a faster growth rate than any state or territory, and almost double the national rate. The growing economy and another large contingent of defence personnel will ensure that population growth remains high.

The Territory's economy is estimated to grow by 4.7% in 1997-98, well above the national average of 3% and faster than any state or territory. The Territory continues to enjoy a trade surplus, largely as a result of its substantial mining industry. In 1997-98, exports were almost double the value of imports. On a per capita basis, Territory exports are second only to Western Australia, and well above the national average. However, exports are expected to fall slightly, partly due to the Asian currency crisis. In 1997-98 South-East Asia accounted for 16% of total exports. The value of food and live animal exports is estimated at $134m in 1997-98, a fall of 34% on the previous year. Exports of live cattle to Indonesia have fallen by some 60% over the same period.

The speed and strength of any recovery in food and live animal exports is very much dependent on an improvement in the economies of South-East Asia and access to other markets such as China, now possible following quarantine protocols finalised by the Minister for Primary Industry and Fisheries last week. However, increased exports of commodities to other regions, particularly North America, have largely offset the decline in exports to Asia.

Turning to the individual industry sectors, the mining industry is the most significant contributor to Gross State Product in the Territory, and has had a difficult year. The value of mineral production is expected to decline by 10.5% in 1997-98 as a result of lower production and commodity prices. The fall in gold prices had the most significant effect on production and contributed to the closure of the Mt Todd Gold Mine in November 1997. The value of energy production also fell in 1997-98 due to dwindling reserves in existing Timor Sea oilfields.

The strong growth in the tourism industry in recent years declined slightly during 1997, with the number of visitors to the Territory falling by 3.9%. Expenditure by tourists also fell by 3.2%.

On a more positive note, the Territory's rural industries and fisheries had another prosperous year in 1997. Even with the decline in the live cattle trade, overall production is estimated to have increased by 12% over the previous year. Aquaculture increased by 29% and mango production by 34%.

Dwelling construction activity has continued at a high rate throughout 1997-98. Much of the activity has taken place in the suburbs of Palmerston and Darwin City.

The development of the Territory's transport infrastructure has taken important steps forward in the past year. Stage 1 of Darwin's new East Arm Port is scheduled to be officially opened in August 1998.

The planning for the Adelaide to Darwin railway continues with 3 consortia having been short-listed. This budget provides for the Territory's $100m contribution to this important project. The railway and port will together provide the necessary infrastructure and linkages to enable Darwin to develop its role as a strategic transport hub.

A strong economy directly benefits the lives of Territorians. Favourable conditions continue to prevail in the Territory labour market. The Territory's unemployment rate for 1997-98 is expected to average 4.9%. This is the lowest in Australia and is considerably lower than the national average of 8.5%. Employment in the Territory has increased by 2 100 or 2.5% over the past year. The strongest growth has occurred in the retail, tourism and construction industries.

Falls in housing interest rates and moderate wage rises contributed to a further reduction in inflation in 1997. Australia recorded its lowest inflation rate since 1962. The Consumer Price Index actually recorded deflation in 1997 in all capitals except Brisbane. Prices fell by 0.7% in Darwin, compared to the 0.2% fall recorded nationally.

Average weekly earnings in the Territory grew at a slower rate than the national average, reflecting changes in the composition of the Territory economy. Employment growth in the Territory has been more rapid in service industries which have lower wages and frequently shorter hours. This diversification of the Territory economy represents a broadening of the Territory's economic base. As a result, average weekly earnings in the Territory are now close to the Australian average.

The Territory economy is sound and strong. More importantly, the prospects for the future are even better. The Territory has five major projects ready to start:

the Laminaria-Corallina field will produce a tenfold
increase in oil production in the Territory when
production commences in 1999-2000. This field will
utilise the world's largest floating production storage
and offtake vessel;

two different consortia are currently considering
utilising natural gas from the Timor Sea for LNG plants
and domestic reticulation;

construction of the Jabiluka uranium mine is expected to
commence this year; and

the railway is expected to commence in 1999.

All are projects of national significance. The Territory's economy is robust and will continue to be the envy of the nation.

OUTCOME FOR 1997-98

I will now turn to the 1997-98 financial year. At the time the 1997-98 budget was introduced, an increase in net debt of $25m was expected, reflecting a period of growth. Capital expenditures were at high levels. Furthermore, current outlays most influenced by growth in demand such as health, education and law and order, increased significantly.

It became apparent during the year that even these increases were insufficient to meet demand and additional funding has had to be provided. On top of that the Katherine floods are estimated to have added a further $68m to government outlays in 1997-98, the emerging costs of superannuation have increased by $16m, the revenue replacement arrangements put in place following the High Court's decision on business franchise fees resulted in a $10m loss in 1997-98, and close to $30m of expenditure was carried forward from 1996-97 into 1997-98. The flood-related expenditure will be partly offset by receipts from the Commonwealth under National Disaster Relief Arrangements.

As a result of all these influences, net debt in 1997-98 is projected to rise by $146m. However, the end-year result will be better due to the usual carry forward into the next financial year. Fortunately, the Katherine flood expenditure should not recur. Nevertheless, the government has taken action to ensure debt is maintained at manageable levels in 1998-99 and future years.

FISCAL STRATEGY

The objective of ensuring the long-term financial viability of the Territory remains the driving force in determining the overall framework of the budget. At the same time, the government is committed to providing standards of service and infrastructure appropriate for our growing population and economy. The government will ensure that over time the public sector will live within its means but, when needs emerge as they have in the last two years, they will be met.

The fiscal strategy, which has guided the government for the last few years, has been revised and simplified in this budget. Comparing the new with the previous strategy, the essential message is unchanged. In particular, the government has retained the target that recurrent outlays will not rise in real per capita terms. It is clear this element of the strategy will not be met in 1997-98 due to special circumstances, but it remains an appropriate target over time. Achieving it requires constant improvement in efficiency and effectiveness to ensure service standards are maintained.

Budget Paper 3 contains a comprehensive analysis of the outcomes against the previous targets and the rationale for the new targets.

POLICY INITIATIVES

This budget contains a number of significant policy initiatives which will provide a sound platform for future fiscal management. The Northern Territory government's $100m contribution for the Adelaide to Darwin railway is included in this budget. It will be paid for by the revenue from the sale of the Territory's share in the Ayers Rock Resort. Three consortia are presently preparing final submissions which are to be lodged in October. After the submissions are evaluated, it is expected that an appointment will be made in early 1999. Thus, access to the Territory's contribution is required in 1998-99. The Territory government has given a clear commitment to the project by setting the $100m aside in a special trust, pending ultimate payment to the successful railway consortia. This will ensure that, regardless of the timing of the payment to the railway consortia, provision will be made in the 1998-99 budget.

Even though the precise timing is unclear, it is appropriate to include the Territory's substantial commitment to what will be the largest national project in this budget. The $100m balance of the proceeds of the sale of Ayers Rock Resort are also expected in 1998-99. As a result, net debt will be unaffected by these 2 large transactions.

Prices for electricity, water and sewerage are to increase. This is necessary to enable the Power and Water Authority to increase its maintenance effort and to meet rising operating costs. These measures will raise an additional $13m.

There has been a substantial increase in funding for maintenance of assets. The Territory has a comprehensive asset management system under which the maintenance needs of all major assets are reviewed each year against criteria such as health and safety needs. The combined influences of an increasing, but ageing $8000m asset base, require greater expenditure to preserve the Territory's investment. The government will embark on a comprehensive examination of public sector functions and associated outlays and receipts. It will be conducted jointly by myself and the relevant portfolio ministers, and will report to Cabinet.

The objective is for the budget to have sufficient capacity in future years to respond to demands in growth without taking on an unsustainable debt burden. Territorians will have access to services at appropriate standards while ensuring fiscally sustainable budget growth. Measures such as the budget framework, incentive structures, priorities, standards of services and efficiency measures will be examined. Work will commence in May and be finalised prior to the consideration of forward estimates by Cabinet in November.

Yesterday, my colleague, the Minister for Housing, announced a range of public housing reforms. This is a major initiative which will materially improve the structure of public housing and increase home ownership in the Northern Territory. The government has decided to raise housing rents to near market rents. People in need will be largely unaffected because of the rental rebate policy. However, those on high incomes will have the choice of moving into the private sector market, purchasing their Housing Commission dwelling, or paying the higher rent. It is expected that a significant proportion will buy their existing dwelling. Much of this additional demand for finance will be sourced from banks and building societies.

The budget includes $10m additional revenue from this source in 1998-99. These funds will be used to commence a new construction program to build 343 one-bedroom and 563 two-bedroom dwellings over the next five years. The building program will peak in 2000-01 when an additional $20.6m will be spent. More appropriate stock will result which will reduce waiting times, predominantly for pensioners.

DEBT REDUCTION STRATEGY

Members will recall that the government announced in last year's budget, a 3-year strategy to reduce gross debt to below $2000m by the end of 1998-99. This target will be reached in 1997-98, a year early. The government is also committed to continuing this strategy for the next 3 years and has nominated further reductions in gross debt of $10m in each of 1998-99 and 1999-2000 and a $20m reduction in 2000-01.

While the capacity to reduce gross debt will need to be reviewed in the light of emerging needs for capital expenditure, the targets should be achievable. The government has already announced that the TAB will be sold. Proceeds from the sale have not been included in the budget so that future negotiations are not compromised in any way. The Housing Commission sale program will also release cash for debt retirement.

The essential element in the debt reduction strategy is that, while this is an opportune time to sell assets, the government will not do so unless there is a benefit to Territorians. The proceeds will not be used to prop up current expenditure. They will only be used to either retire debt or to invest in economic infrastructure which would not otherwise be undertaken and produces an appropriate economic return.

As a result of a combination of lower interest rates and the reduced levels of debt, the Territory's interest bill is budgeted at $177m in 1998-99 and $173m in 2001-02. This compares with the peak of $223m in 1992-93 and $184m in 1997-98.

REFORM PROCESSES

The government remains at the forefront of implementing reforms which improve accountability and enable the Territory to provide more services at lower cost. It is appropriate that I highlight some of the key areas of progress and these include:

The comprehensive examination of public sector functions
mentioned earlier.

The reform of government business divisions which is
progressing well with appropriate pricing structures and
performance measures in place. Developments this year
will enhance the commercial environment in which they
operate.

There will be a comprehensive review of all aspects of
the Power and Water Authority commencing in 1998-99.
This will include PAWA's future direction, its assets and
associated replacement and maintenance programs,
accounting and costing functions, separation of
regulatory and commercial functions and the development
of access regimes in accordance with National Competition
Policy requirements.

Opportunities for outsourcing of government services will
be investigated. A decision has already been taken that
litigation, commercial and legal services of the
Attorney-General's Department will be outsourced. As a
result, there will be greater competition in the legal
sector and agencies will be better placed to assess the
costs and benefits of legal advice.

The TAB will be sold during 1998-99.

Public housing will be reformed as I have already
outlined.

Administrative improvements include the publication of
forward estimates of outlays and receipts for the general
government sector for the next three years, and accrual
budgeting for the Power and Water Authority has been
introduced in this commercial organisation to assist
improved financial management.

1998-99 BUDGET

As in past years, the budget is presented in both gross and net terms. The amounts in the Appropriation Bill are on a gross basis and are more meaningful for individual agencies as they indicate the level of resources that are the responsibility of each individual minister. The net figures provide a better analysis of the overall budget position as they allow a view of how the government impacts upon the non-government sector.

On a gross basis, total outlays for 1998-99 are projected to be $2846m, a 3.4% decrease from the expected high outcome for 1997-98, while the estimate for total receipts is $2837m, an increase of 3.5%.

On a net basis, total expenditure is $1847m, a decrease of 4.1%. Current expenditures at $1602m decrease by 1.1% over 1997-98, well within the fiscal strategy target.

Expenditures on capital works are projected to decline by $53m or 18.5% while repairs and maintenance will increase by $28m or 31%.

Own source revenue and Commonwealth grants are budgeted to increase by 2.4% and 3.3% respectively. As a consequence, net debt is budgeted to increase by $12m.

REVENUE MEASURES

There are 2 major revenue initiatives in this budget, Power and Water Authority charges and housing rents and sales. A number of other revenue related issues warrant comment.

Despite increasing cost pressures, and the relatively high costs of service delivery throughout the Northern Territory, this government has managed to keep electricity tariffs at a constant level for 6 years. This is an outstanding achievement. In real terms, prices have actually dropped by approximately 10% over that time, to the benefit of all Territorians but, at the same time, the cost of gas used for electricity production has risen by 40%. The point has now been reached where tariffs must be adjusted.

Domestic electricity tariffs will increase by 0.87½ per kilowatt-hour to 12.9½. Commercial tariffs will rise by 0.11½ to 16½ per kilowatt-hour. The difference in the increase between the sectors is because commercial tariffs are close to recovering costs. In line with the election commitment, the time of use tariff arrangements have been extended for commercial customers from 8 hours to 12 hours. The minister responsible will provide details of these changes. Following these increases, electricity charges will not rise for 4 years.

Water charges will be increased by 7½ from 53½ to 60½ per kilolitre for both commercial and domestic users. In addition, a daily fee of 25½ per standard connection will apply. Even with these increases, the charges remain well below the levels in the states and are insufficient to cover the cost of providing the service.

Finally, sewerage charges will be increased by $7 per year.

A total of $13.1m will be raised from these measures, $4.9m from electricity, $7.8m from water and $0.4m from sewerage. The new rates will commence from 1 July 1998. For the average household, this will mean an increase of less than $4 per week.

The pensioner concession scheme will be amended so that pensioners will be substantially unaffected by the increases.

As a result of the housing reforms, it is expected that total rental receipts will decline as more tenants purchase their homes but there will be an additional $10m from increased housing sales.

In order to assist mines in remote locations, it has also been decided to reduce the rate applying to the Energy Resource Consumption Levy to zero. Revenue will decline by $0.5m.

Bus fares for non-concessional travellers will rise by 20½ per trip. Non-pensioner concessional trips will rise by 10½. There will be no increase for pensioners. The new fares will apply from 1 July and raise an additional $0.3m.

BUDGET EXPENDITURE

Katherine Region Flood

As foreshadowed when the Special Appropriation Bill was introduced, a comprehensive report has been provided on the Katherine Floods expenditure. Budget Paper No 2 contains detailed information by agency as well as summary data.

The total cost to the Northern Territory Government arising from the Katherine Region flooding is estimated to be $68m in 1997-98 and $17m in 1998-99.

Following negotiations with the Commonwealth, it is expected there will be reimbursement of $41m under the Natural Disaster Relief Arrangements provided in 1997-98 and 1998-99.

Payments to individuals for personal hardship and distress, counselling services and to reinstate or replace health facilities and equipment have been estimated at $17m.

$45m will be required for the restoration of public assets which include schools, hospital, courthouse and clinics. $8m has been provided for concessional housing and business loans and $1.2m provided as an advance to Katherine Town Council.

The government is also contributing $3.3m to the Katherine Business Redevelopment Package.

SERVICES FOR TERRITORIANS

Health

Health remains one of the Territory government's highest priorities. It is also an area of concern because costs in hospitals in particular, have been rising rapidly in the last 2 years. There are a number of initiatives in this budget.

The government has allocated an additional $2.6m per annum to broaden the range of specialist services offered in the Territory. Enhanced services will be provided at the Alice Springs Hospital. Projects costing $10.9m to be undertaken this year include the construction of new facilities for people with mental illness, extensions and major improvements to out-patient specialist services, the admissions area, pharmacy, radiology, operating theatre and day surgery unit.

An additional $2m has been allocated to provide new medical and diagnostic equipment in Territory hospitals.

The requirement for dialysis continues to escalate, and a further $3.3m has also been committed to increase renal dialysis services.

A new Health Centre at Mataranka will be constructed at a cost of $645 000.

One of this government's most successful strategies, the Strong Women, Strong Babies, Strong Culture program has been expanded to remote communities in central Australia, and in the Top End, at an additional cost of $568 000.

An independent Health and Community Services Complaints Commission has been established within the Office of the Northern Territory Ombudsman. The Commission's jurisdiction extends to both public and private health sectors. $387 000 has been provided in 1998-99.

Following an approach to the Prime Minister by the Chief Minister at the Premiers Conference, the Commonwealth has agreed to provide $10m for health related infrastructure projects on remote communities. The budget includes a variety of projects such as roadworks for dust suppression, water, sewerage and health infrastructure.

The Office of Youth Affairs will be organising Alcohol and Drug-Free Entertainment for youth around the Territory. Also a Peer Development and Youth Leadership Program and a Role Modelling Program for young Territorians will be developed.

Education

Education remains a high priority for a young and growing community.

A Learning Information Centre will be constructed at the Palmerston campus of the Northern Territory University at a cost of $5m.

The Stuart Park Primary School Council will receive approximately $2.2m to construct a new library, and canteen and to upgrade the early childhood block.

In various remote locations, the program to replace the old 'silver bullets' will continue with a further $1.9m provided in 1998-99.

The Katherine School of the Air will be extended at a cost of approximately $993 000.

A number of projects will be undertaken in remote locations. A new homeland centre school will be built at an estimated cost of $235 000 at Yalakun near Gapuwiyak and the St Francis Xavier school at Daly River will receive a new preschool estimated to cost $298 000. Belyuen school will have a new classroom, administration area and library, at a cost of $415 000, and there are funds for a replacement classrooms and related facilities at Barunga costing $570 000.

A new library, special education unit and additional classrooms will be built at Berry Springs estimated to cost just over $1m.

Law, Order and Public Safety

Once again, the Northern Territory government has accorded high priority to these functions. The government has approved a $5m replacement program for major appliances which will modernise the front line fleet of the Fire and Rescue Service over the next 8 years. Six new vehicles will come on line in the 1998-99 year at a cost of $2m.

This budget includes $2.5m for the extension beyond Alice Springs of the Northern Territory Fire Alarm Monitoring System throughout the remainder of the Northern Territory. This system is considered to be at the forefront of fire alarm monitoring and replaces the outmoded Torrens fire alarm system.

As part of the capital works program for 1998-99, a new fire station is planned for Yulara at a cost of $970 000. A further $1m has been committed to the police cell upgrade program consistent with the recommendations of the Royal Commission into Aboriginal Deaths in Custody.

Recreation and Community Services

The effective use of land and water resources is of critical importance to the future of the Northern Territory, and involves the development of a partnership between government, the private sector and community interests.

In the regional areas of the Territory, $320 000 has been allocated to revise floodplain management strategies for Katherine and surrounding districts, including Beswick, Mataranka, Daly River, Barunga and Binjari. $500 000 has been allocated for saltwater intrusion control works at Mary River Wetlands.

The government has committed $2m for capital works on Territory parks and reserves, including the Alice Springs Desert Park and the Territory Wildlife Park where new exhibits will be provided and others upgraded.

Two further stages of the Larapinta Trail will be completed at a cost of $200 000.

$300 000 has been committed to the provision of additional visitor facilities in the proposed Mary River National Park area.

In addition, $650 000 has been provided for the Darwin Botanical Gardens nursery and workshop and for interpretative signs and upgrade of park entrances.

The Alice Springs Cultural Precinct at Araluen will commence in 1998-99 with over $1m allocated to this project.

In Darwin, government has approved over $1m for the construction of a natural science wet store at Bullocky Point Museum. The Maritime Museum at Bullocky Point will be given a $400 000 face lift and an assessment will be made of a proposal to establish a military museum at East Point.

The 1998-99 budget includes $2.3m funding contribution for 3 major events: round 9 of the Shell Australian Touring Car Championships, the seventh Honda Masters Games, and the Arafura Games.

The government will make available $17.6m in 1998-99 under the Housing Commission's HomeNorth/HomeStart shared equity scheme. This will ensure that home ownership remains an option for low to moderate income earners and entry costs are minimised. This scheme will provide funds for around 140 borrowers.

In addition to the expansion in the public housing construction program, this budget also includes $7m this year to construct and upgrade staff housing in remote localities. This is part of an expanded $10m program over 3 years.

ECONOMIC SERVICES

Services to Industry

As I have said, mining is the Territory's largest industry. To assist future exploration, the 1998-99 budget provides $1m for airborne geophysical surveys in the western Alice Springs and Victoria River regions.

The Tourist Commission's marketing budget has been increased by $1.5m. There will be specific funding for international and general destinational advertising.

$220 000 has been provided to facilitate research trials in cotton in the Katherine and Douglas Daly region.

The government's research will be complementary to that being undertaken with private sector funding in Katherine and could potentially lead to an expansion of agricultural development in the region.

Regional economic development committees will receive $250 000 for project investigation.

$50 000 has been provided to promote the Northern Territory as a leading location for the testing and proving of solar and alternative energy systems.

In keeping with the government's commitment to youth, the budget includes an allocation of $50 000 to assist young people in establishing businesses and developing their business skills.

So that development will not be impeded, significant resources will be allocated to the management of Aboriginal Land Rights Act and Native Title Act matters. Outstanding legal cases are likely to require approximately $1m and include the continuation of the native title claims over Darwin, Alice Springs and the town of Jabiru, as well as cases in relation to Devil's Marbles, land on the Gove Peninsula and several national parks.

Infrastructure

Key infrastructure initiatives in this budget are the further developments at East Arm Port. $3.5m has been allocated for capital works in land servicing, development and infrastructure to support the new port and the proposed railhead. It is anticipated that significant land sales can be achieved at East Arm, subject to native title considerations.

A further $1m is being provided for the planning and design for stage 2 of the East Arm Port development in preparation for the Adelaide to Darwin railway.

The upgrading of the existing wooden pile fendering at Stokes Hill Wharf will be undertaken in 1998-99 at a cost of $500 000. These works are being undertaken to meet the requirements of cruise ships. $1m will be spent on the removal and relocation of the existing cargo storage sheds and the provision of temporary storage facilities for shippers until commercial cargo operations are transferred to the East Arm Port.

$11m is allocated for the NT railway to finalise the acquisition of land, payment of compensation and the costs associated with tender bids. This is additional to the $100m Territory contribution to the project.

$2.7m is provided for the extension of Lambrick Avenue to connect with the Stuart Highway near the Howard Springs turnoff.

$300 000 has been provided for minor realignment, sealing and gravelling of the Fog Bay Road.

A further stage in the development of the 'Western Tourist Loop' to improve access to the West Macdonnells tourist area and complete the link to Ayers Rock will commence, at an estimated cost of $1m.

Consistent with the progressive upgrading of Tiger Brennan Drive, $1m is provided to enhance access to the central business district, to meet traffic growth demands and maintain levels of service for city access.

Landscaping projects will be undertaken on the Stuart Highway, Vanderlin Drive, McMillans Road, Trower Road, Temple Terrace and Chung Wah Terrace, at an estimated cost of $750 000.

In Alice Springs, there will be further landscaping and a footpath and cyclepath upgrade for $250 000.

Funding of $250 000 has been included to improve access and parking at the Berry Springs commercial precinct and Berry Springs Primary School.

Access to Flora River Nature Park, at a cost of $350 000, is part of an ongoing program to progressively improve access to parks and reserves.

$200 000 is included in the budget for the upgrade of the Lasseter Highway/Yulara Drive intersection. This will include road widening and delineation to provide for right and left turning lanes.

Upgrade of the Canteen Creek airstrip will improve access and medical evacuation services at a cost of $370 000.

In keeping with the importance of an adequate road network for Territorians a total of $66m will be spent on roads.

COMMUNICATIONS AND INFORMATION TECHNOLOGY

Communications and information technology again receives a major investment. A Year 2000 project team is in place to ensure that the business of government and private industry is unaffected by the millennium bug.

The budget provides $4m for the development of a Community Care Information System. This will cover family, youth and children's services, aged and disability services, mental health and community health services.

Through the Office of Women's Policy, an interactive home page will be constructed to link women with information and provide pathways to other web sites of particular relevance and interest.

The government has further committed $3.7m to replace the criminal history and property recording systems and the Police Computer Aided Dispatch System.

A new $2.8m records management system will be installed progressively throughout government agencies.

Installation of a fibre optic link in the Darwin central business district at a cost of $0.7m will improve communications and data transfer at a significantly lower cost.

CONCLUSION

This is a budget which will help ensure Territorians benefit from the exciting times that lie ahead. It provides funds for the railway. It recognises the high priority Territorians place on law and order and supports the fine work carried out by the emergency services. It addresses the enormous and growing demands being placed on the Territory's health system with initiatives such as new medical equipment and renal dialysis facilities.

There is more support to maintain the Territory lifestyle, including a vast array of recreational areas, the upgrade of parks, museums and assistance for major sporting events. The importance of the environment is recognised with substantial funds to help the fight to save the Mary River wetlands and for floodplain management strategies for the Katherine region.

The people of Katherine and surrounding areas devastated by flooding needed desperate help. This budget answers that call for help with an appropriate injection of funding. Importantly, it provides continuing support for businesses by limiting the burden of new taxes, fees or charges and providing additional funds for tourism and mining sectors.

The creation of jobs and investment are the top priorities of this government, and this budget responds in the most positive way, delivering benefits to all Territorians. This budget is both equitable and responsible and paves the way for continued sustainable growth as the Territory progresses towards statehood. In tabling the budget documents, I commend the bill to honourable members.

Debate adjourned.

 

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