Northern Territory Second Reading Speeches

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APPROPRIATION BILL 2001-2002

Mr Speaker, I move that the bill be now read a second time. I table the 2001-2002 Northern Territory Budget Papers.

This is the Northern Territory’s 24th Budget and my sixth as Treasurer. This Budget is economically responsible and fiscally sustainable. There are no increases in taxes and charges. There is a further reduction in the rate of pay-roll tax. Financial institutions duty and stamp duty on quoted marketable securities are to be abolished on 1 July 2001. The Territory’s 1.1 cents per litre fuel subsidy will be retained.

The Budget provides for increases in the key areas of health, education and police, which are fundamental to making the Territory a better place to work and live.

Mr Speaker, this Budget has been framed in the knowledge that the Territory is on the verge of a period of major development. This will have a dramatic and prolonged impact on the Territory economy and its social fabric. After years of effort and enthusiasm, construction of the railway has commenced. This $1.3 billion project will result in a major expansion in construction and service industries in regional centres along the Stuart Highway. The linking of the AustralAsia Railway with the expanded East Arm Port will provide Australia’s first planned, fully integrated land bridge with the capacity to transform trade links to and from Australia.

Bigger still are the prospective developments once Timor Sea gas comes on shore. The timing is yet to be finalised but is likely to be sooner rather than later. As well as having a dramatic effect on the economy, the gas developments will require substantial government investment in social services and infrastructure.

As a result of these large but as yet unquantified requirements, government has resisted the temptation to have a big spending election year budget. This budget is one of consolidation rather than expansion. It will position us to do what has to be done once the railway and gas projects are fully underway. It would have been easy for the government to bring down a budget which included spending initiatives of a political nature. Rather, the budget that I deliver today has been developed in an atmosphere of constraint and sound economic management, positioning us for the Territory’s future infrastructure requirements.

The budget strategy had regard for the expansion in private sector projects, many of which have been made possible by this government’s initiative and encouragement. The railway would not have proceeded if not for this government’s drive, persistence and financial commitment. The Territory will now reap the benefits of this $1.3bn world class project due to its $165m direct investment in the railway and the $200m investment in the East Arm Port. The government’s support for gas industries has been a significant contributor to the decisions to locate these major industries in the Territory.

The government’s decision to cooperate with the private sector in providing a new police station and administration centre in central Darwin was the catalyst for the go ahead of a major $50m development. The Quickstart program will generate up to $20m in housing construction activity at a cost to government of less than $1m. Similarly, the government’s $8m contribution to the Alice Springs Convention Centre will result in an expansion of hotel services as well as providing a much needed convention facility in Central Australia that will continue to attract business and leisure travellers for many years to come.

The program of IT outsourcing will result in a significantly expanded private sector in this important and growing industry sector.

These are just a few examples of this government’s jobs strategy and support for business. We make it happen through commitments to assist private developments to proceed, together with major public projects.

THE TERRITORY ECONOMY

Economic growth in the Territory is forecast to be 5.9% in 2001-02. Growth will initially be driven by the impetus associated with the construction of the $1.3bn Darwin to Alice Springs railway. Stronger growth will also reflect a pick up in dwellings investment and household consumption expenditure. The railway work and the likely commencement of several onshore gas-related projects in 2002, will dramatically increase capital expenditure.

Major private building developments in the Darwin CBD, valued at more than $300m have already been announced with some to commence construction soon. The role played by government in supporting the construction industry during the building downturn of the early 1990s is now being filled by these private sector developments, a tangible sign of a maturing economy. These developments help bolster the construction industry, providing a timely boost to activity as the residential construction cycle begins to pick up. The activity related to those projects will provide the catalyst for a turnaround in Territory business and consumer confidence during 2001-02. This, in conjunction with low interest rates, is expected to lift consumer spending. As a result, growth in private consumption expenditure is forecast to recover over the course of 2001-02, and further strengthen in the years to follow. Over the medium term, the Territory will enter another major phase of economic development due to the flow-on effects of the construction phases of onshore gas projects.

The Territory economy is forecast to grow by an average annual rate of 6.7% over the next five years. Growth will be substantially higher than other jurisdictions, and almost double the national rate. The strong period of employment growth in the Territory peaked in 1999 in line with strong economic growth. The unemployment rate fell from around 8% in 1991 to 4% in 1999. Inevitably after such a strong growth phase, employment growth fell back and the unemployment rate began to rise. However, employment growth is beginning to pick up and will continue to be boosted as construction of the railway proceeds and economic activity in the Territory recovers. Employment growth will be further strengthened as construction commences on Timor Sea oil and on-shore gas projects. Continued growth in the rural, mining and tourism industries will also generate additional employment in the Territory.

Access Economics projects the Territory’s employment growth over the next five years to be 3.5% per annum which is the highest in Australia. Over the past five years, the Territory equalled Queensland in achieving the fastest population growth of all jurisdictions at an average growth rate of 1.7% per annum. While there were estimated interstate migration losses, these were partially offset by increases in overseas migration. The major driving force behind Territory population growth over this period was the continued movement of Australian defence force units to the Territory. Following this Defence-related boost, population subsequently moderated, increasing by 1.3% in 2000-01. The Territory's population is expected to increase by around 1.7% in 2001-02. Further out, population growth is likely to strengthen, rising to rates of around 2.0% as construction activity related to onshore gas developments drives growth in employment and boosts interstate migration.

Darwin's CPI is estimated to have increased by 4.5% in 2000-01, compared with 5.5% nationally. Inflation for 2001-02 is forecast to be between 2.0% and 2.5%. Following growth of 4.6% in 1999-2000, Northern Territory average weekly ordinary time earnings is estimated to have grown by 3.4% in 2000-01, with average weekly earnings estimated at $810 in the December quarter 2000, higher than the national average of $803.
The value of Territory merchandise exports increased by 7.4% during 2000-01, due almost entirely to an increase in oil exports. The outlook for Territory exports is very strong due to the weak Australian dollar, high production levels of oil, and high oil prices. The outlook for energy developments in the Territory is very positive. The value of energy production is estimated to have doubled to $3.2bn, boosted by the first full year of oil production from Laminaria/Corallina. Oil production will continue to dominate in the short to medium term, while gas extraction and gas-based manufacturing are expected to dominate in the medium to long term. The construction cost of prospective onshore and offshore gas projects is estimated to be worth more than $13bn. This level of investment inevitably leads to further exploration and ongoing industry expansion.

Delivery to Darwin of the first gas is expected around the middle of the decade. The development of oil and gas fields in the Timor Sea, in conjunction with the piping of gas onshore for processing by manufacturing plants, will see Darwin transform into a major regional manufacturing centre for various energy products. The resulting benefits to the Territory economy from such projects are significant. Around 600 permanent jobs and $300m worth of direct operational expenditure are expected in the first full year of operations. The vast majority of direct and indirect flow-on benefits will be retained in the Territory. With the potential of gas to be used both as a feedstock and as a cheaper energy source, a gas-based manufacturing industry would significantly broaden the Territory's economic base.

The outlook for the Territory’s rural and fisheries industries is for steady growth. The long term outlook for fishing is promising, with domestic consumption of seafood increasing steadily. Further out, the impact of the Ord River Irrigation Project is expected to see the value of field crop production increase markedly.

Growth in tourism demand will continue to be a key driver of the Territory economy. Tourism contributes more to Territory GSP and employment than in any other jurisdiction. There was a major boost to visitor numbers in 1999-2000 associated with the East Timor relief effort. Even so, total visitor numbers to the Territory are estimated to have increased by 5% in 2000-01, to 1.4 m. Although petrol prices may be affecting the ‘drive market’, the weak dollar is encouraging Australians to take domestic holidays in preference to overseas holidays. The impact of the low Australian dollar and the ongoing benefits from the Sydney 2000 Olympic Games will continue to boost international tourism in the short term, countering the global effects of the slowdown in US growth.

Lower interest rates will contribute to a pick up in retail trade over 2001-02 and stronger population and employment growth will drive another phase of retail trade growth.

Following strong growth in the mid 1990s, Territory dwelling and non-residential building slowed markedly. In 1999-2000 the industry was 5.6% of Territory GSP, its lowest contribution to GSP in the 1990s, and the only year of the 1990s when it was below the national level. Residential construction is forecast to strengthen over 2001-02 following weak activity in 2000-01. Stronger underlying demand, driven by population growth, will absorb the oversupply of dwellings leading to another strong growth phase. Non-residential building construction is forecast to increase in 2001-02. Private sector developments totalling more than $300m have been announced.

Engineering construction is forecast to grow very strongly over the next three years, primarily as a result of the Darwin to Alice Springs railway and Timor Sea related oil and gas activity.

The railway is the largest infrastructure project ever undertaken in the Territory, and is one of Australia's largest transport infrastructure projects. While the railway’s construction will have an immediate economic impact, the operating phase has the potential to create a more robust and competitive Territory economy. Benefits will accrue to Katherine, as a hub for regional produce, and Tennant Creek, as it emerges as a modal interchange for east-west freight traffic.

The railway is expected to provide a greater impetus for Darwin to become a major multi-modal transport hub for the region, increasing the land to sea international freight task coming from southern cities. Construction of the railway is scheduled for completion in early 2004, in conjunction with stage two of the East Arm Port.

The future outlook for the Northern Territory economy is strong with significant and sustained growth related to the world class transport and gas developments and the future development of existing industries.

POSITIONING OF THE 2001-02 BUDGET

The 2001 budget has been framed in an environment of major prospective growth in the economy with consequential and significant future budget requirements. The full extent and nature of these requirements is uncertain but will be substantial. The Territory has to be in a position to respond when required. Accordingly, the government’s deliberate strategy has been to exercise restraint at this point to ensure capacity is available to meet the needs as they emerge over the next one to five years.

Future budget impacts of the rail and gas developments will be direct and indirect and involve capital and operational expenditure. Direct expenditure will be required to provide economic infrastructure and services for the gas related industries. The government has already earmarked land at Gunn Point and Middle Arm for future gas industries and substantial costs will be incurred in preparing that land for occupation. In addition, the port facilities which are already being expanded for the railway will need further enhancements to cater for the export of downstream gas products.

Direct expenditure requirements for government infrastructure projects currently under consideration total around $340m. This includes roads, water, electricity and port facilities. The indirect budget requirements could be just as large. The Territory economy will be so dramatically changed it is difficult to project at this time all of what must be done. More industry of the scale we are expecting means more of everything, roads and essential services in particular. Social infrastructure will be a special need. As always, the Territory delivers schools, hospitals, police stations and the like when required, and required it will be.

The community will benefit from the direct investment and job opportunities that will flow from these projects. As important, the Territory will be a more vibrant and exciting place providing greater opportunities for Territorians and their children across a broad range of areas like the arts, the range of education facilities including an expanded Northern Territory University, improved recreational facilities and lifestyle pursuits.

Economic growth will be more sustained and predictable. Existing industry sectors will benefit from increased activity in the economy. The Territory population will become more stable. Community services and recreational facilities will expand. There will be more grandparents for grandchildren. The government has to make sure it has the resources to do what has to be done for this to occur.

While financial resources are important, expertise, co-operation and confidence of the community are also essential. Government itself will need to review its interaction with the business community to ensure that the legislative and other frameworks the government provides, for both existing and emerging industries, meet the needs of the time. Amongst these is the Territory’s own tax system. While the growing economy will mean higher own source revenue, we have to ensure that the Territory’s tax system is fair and simple.

The Territory’s economic regulation framework within which business operates needs to promote efficiency and encourage competition. Electricity has been a major area of reform and industry is already seeing benefits. Electricity costs for some larger users have fallen by around 15% as a result of competition. Regulations on industry are being reviewed to remove unnecessary impediments and to ensure the rules are unambiguous and even handed.

DEVELOPMENT OUTLOOK

The construction of the Alice Springs to Darwin railway and the development of a gas industry will forever change the Territory. Unprecedented opportunities will emerge over the next decade. Based on estimates of likely development levels, around $15bn will be invested in the industry, more than six times the total of today’s Northern Territory government budgeted expenditure and double the Territory’s annual gross state product.

As a means of informing the Territory community of the significant developments ahead, this year a special budget book has been prepared dealing with the development outlook. The development outlook highlights the importance of the two major projects that will transform the Territory economy. This publication will be useful to prospective investors as well as the Territory business community in its demonstration of the activity that will occur in the Northern Territory over the next decade.

The AustralAsia Railway and expanded East Arm Port facilities will change the way trade to and from Australia is managed. It will provide increased opportunities throughout the Territory in the construction and the operational phase.

The opening up of the highly prospective Timor Sea region will bring considerable benefits to East Timor, Australia and the Northern Territory. For the East Timorese, the benefits will be far greater than the revenue flows from the fields and will enable the growth of partnerships and opportunities between the Territory and East Timor that would not otherwise exist. The Territory will be doing all in its power to foster these partnerships.

Mr Speaker, I table the first edition of the development outlook.

FINANCIAL REFORMS

The government has commenced a significant reform program within the public sector. Working for Outcomes will introduce an accrual output based performance framework from 2002-03.

The 2001-02 budget is a transitional year where the first round of output and outcome based information has been included for all agencies. While the Working for Outcomes framework has many component parts and will require new skills, particularly as a result of the adoption of accrual accounting, by far the most important element of this reform is the focus on outputs. Accordingly, the output information included in Budget Paper No 2 is the first, very important step in this process.

Outputs have been specified by all agencies and potential performance measures for quantity, quality and timeliness have been described. Substantial work will be undertaken throughout 2001-02 to refine these outputs. It is planned that the 2002-03 budget will be developed and presented in the new accrual output based format. Outcomes are to be specified for all outputs. This is a means by which the government sets achievement targets for all services. By way of example, I have set for Treasury’s Territory revenue output an outcome of ‘a simple but fair tax system for Territorians’. This is a clear statement which sets out unambiguously the Territory government’s intent in this important area. To support the achievement of this outcome, I will be establishing a consultative group which includes senior Territory business representatives to advise me on our progress and success in meeting this outcome.

Budget management will expand its focus under the accrual output based framework to encompass greater emphasis on performance as well as expenditure. This system will be trialed by the government business divisions during 2001-02.

Another preparatory arrangement for Working for Outcomes is to establish a central holding authority which will manage and account for those Territory assets and liabilities that are not agency specific such as investments and past superannuation obligations. The Territory’s medium term investments are held in the Conditions of Service Trust. The Conditions of Service Trust is a major asset of the Territory which has been built up over time through payments from the public account, sale proceeds of the Territory’s share in the Ayers Rock Resort and interest on these investments. Part of this asset has recently been realised to fund the Territory’s contribution to the railway.

As part of the preparations for Working for Outcomes, the Conditions of Service Trust will be brought into the public account in 2000-01. To do this at least cost and to ensure transparency and clarity in the transaction, a minor amendment to the Financial Management Act is proposed which I will introduce this week for passage in these sittings.

At the commencement of this financial year Conditions of Service Trust investments totalled $311m, and were reported in the 1999-2000 Treasurer’s Annual Financial Report. Of these investments, $165m has been liquidated for the Territory’s railway contribution. The remaining amount, currently estimated to be $150m, will be brought into the Public Account in 2000-01, and will contribute to a reduction in Budget Sector debt in 2000-01.

REVENUE INITIATIVES AND REFORMS

The budget contains a number of key revenue measures. The most important of these is a further achievable reduction in the payroll tax rate from 6.6% to 6.5%. This follows reductions for the last two years. The cost of this reduction is $1.4 m in 2001-02 and $1.5 m in a full year.

As part of the national tax reform changes, financial institutions duty and stamp duty on the transfer of quoted marketable securities are to be abolished from 1 July 2001.

There is also simplification of the grouping provisions for payroll tax which will promote efficiency and easy compliance in this complex area. The requirement for persons to be grouped for payroll tax where they hold equal interests in business has been relaxed so that grouping only applies when a greater than 50% interest is held. This has been proved necessary following consultation with industry and joint ventures associated with the railway project.

There are also a range of simplicity, efficiency and integrity measures for stamp duty and payroll tax arrangements. These are explained in detail in Budget Paper No. 3, Chapter 13.

The budget also includes revenue from the sale of NT Fleet assets. It is considered that this significant investment can be put to better use. The assets will be sold and will provide a one-off benefit of around $50m in 2001-02. No other change is proposed in the operation of NT Fleet. The management and staffing arrangements will remain as they are. In future, vehicle assets will be leased rather than purchased.

2000-01 BUDGET OUTCOME

The total expenditure estimated for 2000-01 is $2002m. Total revenue is $2003 m.

When the budget was brought down in May last year, the increase in net debt was estimated to be $45m. This increased through the year by $104m to an increase in net debt of $149m. However, the $150m payment from the Conditions of Service Trust more than offsets this increase so that the final position for 2000-01 is estimated to be a decline in net debt of $1m.

The outcome in 2000-01 was due almost entirely to non-discretionary influences. The first and most important is the $43m for the Darwin to Katherine Transmission Line litigation settlement. In effect, the Territory has replaced a financial asset with a physical asset that will earn more than its cost over its life.

Own source revenues declined by $20m as a result of slowing economic activity.

$21m is attributed to non-discretionary additional allocation to the Crimes (Victims Assistance) Scheme and increased superannuation payments. There has been $13m of flood-related expenditure and $7m for a number of small discretionary increases across the range of agencies.

The additional receipt of $150m from the Conditions of Service Trust more than offset these items.

THE 2001-02 BUDGET

Total expenditure for 2001-02 is estimated to be $2 111m, which is a conservative 1.3% underlying increase after removing one-off effects.

Expenditure on new fixed assets is $244m, an increase of 3% over 2000-01. This is direct expenditure by the Northern Territory government on capital works excluding the railway. Territory expenditure on new fixed assets including the railway is $409m, the benefits of which are already emerging in Katherine and Tennant Creek.

Total revenue is expected to be $2099m or 4.8% greater than in 2000-01. Most of the growth is due to the increase in Commonwealth grants. However, much of this increase is due to tax reform which reflects changing responsibilities. This year financial institutions duty and stamp duty on quoted marketable securities will be abolished and replaced with larger Commonwealth grants. The underlying growth in fiscal capacity from Commonwealth grants is 4.6%.

These revenue measures will save Territorians more than $12m per annum.

The increase in net debt next financial year is estimated to be $12m.

FISCAL STRATEGY

The Territory remains committed to the fiscal strategy, although reduced revenue and increasing pressure on expenditure has made the task difficult. However, I’m pleased to report that for 2000-01 and 2001-02 we anticipate that all elements of the strategy will be met.

I turn now to the expenditure initiatives in the budget.

HEALTH AND COMMUNITY SERVICES

Territory Health Services Budget will increase in real terms this year. The major redevelopment programs continue at Royal Darwin and Alice Springs hospitals with expenditure of $6.3m and $15.4m respectively in 2001-02.

The Preventable Chronic Disease Strategy was launched in 1999 as an innovative approach to reducing the projected increase in people with chronic diseases and to reduce the likely financial and community impact. $1.4m has been approved for chronic disease programs for remote areas to minimise the subsequent need for hospital care.

There is $1m to relocate the Darwin Dental Clinic to the Casuarina retail precinct to better suit client needs in line with appropriate health standards. The current Mitchell Street site will be sold providing further development opportunities in Darwin’s CBD.
$1m has been approved for school therapy services and additional funding for non-government agencies.

From 1 July this year syringes are to be provided free of charge to diabetes sufferers and other syringe users with a medical condition in recognition of their ongoing needs.

Amounts of $0.6 m for a new health clinic at Barunga and $0.45m for stage 1 of flood mitigation at Alice Springs hospital have been approved.

An additional $0.5m will be provided to the Menzies School of Health Research to enhance the Territory’s research capacity.

EDUCATION

Education continues to be one of this government’s priorities with an increasing budget again this year. The Education budget has increased to $355m including an increase of $6m in base funding. The expanded information technology services in schools, the Learning and Technology in Schools Program, known as LATIS, is currently underway, as part of the Territory’s IT outsourcing program. The LATIS program is allocated $7.8m in 2001-02. This will achieve the government’s commitment to providing one computer for every 10 students in all schools including the non-government sector.

An amount of $5.3m has been approved for school facilities works:

Approval has been given for the development of a student administration system to record student data-enrolments, attendance and academic achievement to improve planning and educational outcomes.

In recognition of the strong contribution the Northern Territory University makes to the Territory and to ameliorate difficulties resulting from reductions in Commonwealth funding, the government has extended financial support to the University for another year making the contribution $12.5m over four years.

WOMEN IN THE BUDGET

Women in the Budget is one of the Territory’s Budget and Future Outlook Papers. It is an important accountability mechanism for the Territory which sets an example both nationally and internationally. The Women in the Budget Paper delivers a range of important initiatives for women under the umbrella of the government’s new action plan setting out Territory women’s priorities.

In line with the new Financial Management Reporting system that is being implemented I determined that this year’s agency reporting in the Women in the Budget Paper was to be more comprehensive and accountable.

I am pleased with the result including the expanded agency reporting in relation to Women and Leadership. Significantly, $0.3m has been earmarked to strengthen leadership initiatives through the Office of Women’s Policy budget allocation.

Public and private safety also continues to be a priority and $1.1m has been allocated this year to build on initiatives under the new five-year agenda of the Domestic Violence Strategy.

LAW, ORDER AND PUBLIC SAFETY

Having honoured the election commitment to provide 150 additional police in this parliamentary term, with police establishment now at an all-time high of 940, and exceeding the target of 929, expenditure continues on upgrading equipment for Territory police and for community crime prevention. Additional expenditure of $0.5m on NTsafe to continue support of community participation in developing crime prevention programs will increase the total program to $5.9m.

There is $0.35m to continue purchase of equipment to improve police officer safety, including bullet proof vests, kevlar safety screens for police cars and various restraint measures. A further $0.3m has been approved for the upgrading of police cells in Tennant Creek as part of the NT government's continuing commitment to implement the recommendations of the Royal Commission into Aboriginal Deaths in Custody.

$2.3m is provided to communications for police and other law enforcement and public safety agencies. There are two main elements to the upgrade - the first is the network upgrade, and the second element is the purchase of digital radios to provide more secure police communications.

$0.4m over the next 3 years has been approved to continue the implementation of the Crimtrac national database to record and verify fingerprints of persons in custody and under investigation.

The $5.1m program to replace major fire fighting appliances continues. To date, 11 vehicles have been purchased, at a cost of $3.6m. A further $400 000 has been approved to replace two more vehicles, one each in Yulara and Alice Springs, providing upgraded equipment and services in these areas.

The Bushfires Council will receive $0.15m for replacement equipment.

HOUSING

A total expenditure of $26m has been approved on housing. This includes the construction and upgrading of public housing and government employee housing throughout the Territory. The budget provides for a further 40 one- and two-bedroom public housing units.

An initiative in this budget is the commencement of a program to replace 61 government employee dwellings in remote locations for nurses, teachers and police. There is provision for 18 dwellings to be replaced in 2001-02. $1.4m has been approved for upgrades of existing staff housing.

With the redevelopment of Kurringal flats site in Darwin underway, a similar program is to commence in Alice Springs. Old two-story accommodation in Cawood Crescent is to be demolished, costing $0.7m as the first stage, to make way for redevelopment of the site in accordance with adjoining R1 residential zoning.

LIFESTYLE AND ENVIRONMENT

$5.3m has been approved for grants to sport and recreation organisations.

As already announced by the Chief Minister, $3m will be provided from the community benefit fund towards the cost of a $4.3m redevelopment and expansion of the Spectrum Centre basketball stadium at Marrara, with the Darwin Basketball Association providing the balance. This will provide a fully air-conditioned sporting complex, with three full size courts with sprung timber floors to accommodate basketball and netball in Darwin to meet national standards.

$67 000 has been approved for a rugby union coach at the Northern Territory Institute of Sport to develop players to national level performance. This brings the number of elite coaches at the Northern Territory Institute of Sport to seven.

A separate policy unit in the department of lands planning and environment has been established to oversight the Northern Territory's implementation of the National Greenhouse Strategy.

$1m has been approved to further combat and to control saltwater intrusion in the Mary River wetlands.

There is $2.5m for urban enhancement and heritage projects throughout the Territory. This ongoing program ensures that Territory urban centres have an enhanced range and standard of community amenity to make the Territory a great place to live.

Notwithstanding ongoing campaigns conducted by government, local government and community organisations, litter continues to spoil the appearance and amenity of too many Territory communities , towns and natural attractions.

This budget provides $100 000 through the Department of Lands Planning and Environment to enable Keep Australia Beautiful and Landcare NT to jointly undertake a community assessment of container deposit legislation.

The assessment will determine the level of public awareness, acceptance and understanding of the cost of implementing container deposit legislation, together with preferences for possible implementation, including operational procedures for collection, container return and administration.

The community assessment is expected to take about six months and form the basis of a report to government on community attitudes to the introduction of container deposit legislation. Should the report demonstrate strong community support, it may be expected that government could proceed to the introduction of container deposit legislation in the Territory.

INDUSTRY AND INFRASTRUCTURE

Sustainable business development requires solid infrastructure. This government has ensured good roads, telecommunications, airports, and a business-friendly environment that will allow Territory businesses to grow and attract new capabilities to the territory.

$37m will be spent on the East Arm Port in 2001-02. This includes work underway, and a start on the new bulk liquid berth. A further $1.35m is provided for maintenance at Stokes Hill Wharf to prevent corrosion of pylons.

Road and service works will open up Middle Arm and Wickham Point for development. $4.7m is in the program for the Middle Point Road to provide access to the Phillips LNG site and proposals for essential services are being developed. Industrial estate planning for Middle Arm and Glyde Point will proceed with appropriate securing of land for service easements to connect these locations and the East Arm Port.

The Territory is contributing $1m towards the construction of expanded research laboratory facilities for the Centre for Tropical Excellence in Horticulture at the CSIRO’s Berrimah site. This will enable the Territory to be positioned as a centre of research and academic excellence in South East Asia, as well as benefiting the growing horticultural industry.

$0.9m over three years will be provided for pastoral water conservation to assist in enhancing stock, water and land management to further enhance the Territory's cattle industry.

There will be further duplication of the Stuart Highway between Arnhem highway and Cox Peninsula road, which is the principal regional corridor for the expanding rural residential and horticultural areas. To improve community safety $1.7m is provided for upgrading intersections with the Arnhem highway and sealing of associated service roads, as well as $1m for the intersection with Cox Peninsula road.

There is $11m for progressive reconstruction and widening of sections of the Stuart, Victoria and Barkly highways and strengthening of bridges to ensure the maintenance of national highways to a high standard. Expenditure of $1m is approved for ongoing resurfacing and reconstruction works for Darwin’s urban arterial roads including Amy Johnson Avenue, Bagot Road, Chung Wah Terrace, McMillans Road and the Stuart Highway.

There is $2m for rural arterial roads, including the pavement reconstruction of significant sections of the Arnhem Highway and $1m for rehabilitation of various sealed sections of the local road network including isolated sections along Bing Bong road and Litchfield park road.

There is $0.4m to complete the seal on Fox Road in the Venn horticultural subdivision in Katherine, $250 000 for the Dry River/Gorrie Link Road on the Sturt Plateau and $0.7m for the Douglas Daly to Katherine road to increase land availability and improve access for horticultural and field crop expansion.

$1m has been approved to further improve the pedestrian and traffic safety on Temple Terrace adjacent to the Palmerston city centre.

$10.5m is approved for power and water facilities and services in Aboriginal communities throughout the Territory.

This is the third full year of operation of the $16m exploration initiative announced in 1999 to stimulate exploration interest in the Territory’s mineral potential, and $8.8m has been allocated for geoscience.

$230 000 has been allocated to process exploration licence applications to meet the onerous requirements of the right-to-negotiate process of the Commonwealth Native Title Act.

In April, the Minister for Resource Development announced a Commonwealth-funded renewable energy rebate program. The scheme provides up to 50% rebates on renewable energy installations and is valued at around $38m over the next five years and will have its first full year of operation in 2001-02.

TOURISM AND PARKS

$2m is approved for further gravelling and sealing of the Alice Springs to Kings Canyon tourist loop linking the popular tourist attractions of Alice Springs, West Macdonnell ranges, Kings Canyon and Uluru.

To maximise the tourism potential of the railway, $0.1m has been provided for a study to determine passenger terminal needs, in cooperation with the AustralAsia Railway and Great Southern Rail, the operators of the Ghan passenger train service. It is estimated that passenger train arrivals into the Territory will increase from the present 50 000 per annum to 85 000 per annum within a few years of the service extending through to Darwin. The study will also include tourist service needs to enhance tourism industry benefits at sites to be serviced by the passenger train.

In providing further support for regional tourist associations the Tourist Commission will fund the installation of touch screen information kiosks in visitor centres in Alice Springs, Tennant Creek, Katherine and Darwin as well as selected interstate backpacker lodges; together with an upgrade of the Outback Centre in Darling Harbour to cost a total of $0.12m. To specifically address a decline in tourist numbers in some regional centres, $175 000 will be directed towards investigating initiatives to improve tourism in regional centres outside Darwin and Alice Springs. $0.9m is provided to increase visitor facilities at Kings Canyon in the Watarrka National Park, offering greater diversity for recreation and tourism. The Alice Springs Desert Park entry station is to be upgraded at a cost of $0.3m. Funds have been approved for the completion of the Tabletop Walk at Litchfield Park. The 50 km long track will link Florence Falls, Green Ant Creek, Wangi Falls and Walker Creek, improving visitor access and usage of the parks walking tracks.

RECREATIONAL FISHING

In 1988, this government embarked on a program to dedicate our major river systems to recreational fishing in recognition of fishing’s importance for our lifestyle and tourism industry. Building on the success of this program, which has gained national recognition and elevated the Territory to Australia’s best recreational fishing destination, the government is to close the McArthur River to commercial barramundi fishing. The closure will take effect after the end of the commercial fishing season this year and include the McArthur River, Carrington and Davies Channels, all the tributaries of those waters, much of the coastal delta and more than 50 km of coastline.

To avoid the transfer of commercial fishing effort to other localities, funding has been allocated for the buy-back of a commercial fishing licence. This closure will see the recovery of fish stocks in the McArthur River system, enhance fishing for Borroloola residents, Territorians and tourists and maintain the Territory’s reputation as having the best fishing and lifestyle in Australia.

CONCLUSION

This budget increases funding to those areas of government afforded a high priority by Territorians and maintains funding levels to sustain levels of service and amenities in other areas. It consolidates the government’s financial position in readiness to meet the emerging needs over the coming years. It is important to recognise that whilst the majority of gas industry developments will be in the Darwin area, the benefits derived from it will flow to all Territorians. An expanded and stronger economy and access to long term cheaper gas supplies will, over time, see reduced electricity costs delivering benefits to householders, business and industry across the Territory.

Businesses across the Territory will be more competitive with interstate counterparts through the combined effects of reduced electricity costs, competition in the freight industry, and with the advent of the railway, a stronger economy and higher population base.

In positioning ourselves for these changes it is important that the support for the traditional drivers of the economy, the mining, tourism, pastoral and horticultural industries and defence forces continue to receive support and assistance. Mr Speaker, these important components of our economy will continue to play an essential role in developing and maintaining a diverse economy, broad employment prospects and effective utilisation of the Territory’s resources and 'can do' attitude.

Similarly, it is essential that development is not achieved at the expense of our lifestyle. Just as this budget positions us to achieve new industrial development, it also continues our strong emphasis on expanding the quality of our lifestyle, sporting and recreational pursuits. These are non-negotiable imperatives in moving forward to achieve industrial and economic development.

This budget, in consolidating our financial position, will strategically position the Territory to plan and respond to emerging needs of an era of new industrial development. We face a decade of unprecedented growth. The government has positioned itself to maximise investment and employment opportunities for Territorians whilst still embracing the best lifestyle in Australia.

The consolidated, planned approach of this budget is specifically designed to achieve maximum benefit for Territorians from the Railway and gas industry projects which lie before us. The necessary result will not just happen. It will be hard work, it will need to be won, and it will need to be fought for. Most especially, it will require a government that can perform and deliver. This government has the experience, drive and commitment to the Territory to convert the new gas industry opportunities for economic growth, jobs and prosperity into reality.

But this parliamentary term is about to end and Territorians will be exercising their democratic right. They will have a clear choice when they cast their vote and a very important one. Territorians can see it through with an experienced team or they can put their faith in an alternative that has no track record. Now is not the time for experimentation. Now is not the time to leave the management of what lies ahead to an untested and unknown quantity. This government has the vision and ability to guide the Territory through the challenges ahead.

Mr Speaker, I commend the bill to honourable members.

Debate adjourned.

 

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