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APPROPRIATION BILL 2004-2005
(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)
Bill presented and read a first time.
Mr STIRLING (Treasurer): Madam Speaker, I move that the bill be read a second time, and I table the 2004-05 Appropriation Bill and related budget papers.
Budget 2004 keeps the Territory moving ahead. This budget delivers less tax, more jobs and a great lifestyle. It is pro-business, pro-jobs, and pro-growth. It delivers record tax cuts and the highest ever cash spend on infrastructure and jobs. This budget builds on the Territory’s great lifestyle, at the same time delivering record health, education and police budgets. Budget 2004 tax reforms by the Martin Labor government are the most significant ever delivered by any Territory government; they will stimulate economic growth and keep the Territory moving ahead.
Budget 2004 provides record tax cuts worth $6.7m in 2004-05, rising to over $16m in 2005-06. The payroll tax threshold will increase to $1m over the next 14 months. From 1 July 2004, the threshold will increase from its current $600 000 to $800 000. From 1 July 2005, locally-based Territory businesses with a payroll of less than $1m will be exempt from payroll tax. This will make the Territory’s payroll tax amongst the lowest for small business in Australia - 162 businesses will not pay payroll tax from 1 July 2005, and 83 of those will be exempt from 1 July 2004. Of these 162 businesses, 127 are locally-based Territory businesses. Over 1400 businesses will be better off, the biggest winners being locally-based Territory businesses with an average saving of $20 500 per year. This gives business a greater capacity to grow and expand; it means more jobs, more production - a great result for the Territory.
The government will abolish the HIH levy immediately. This will save, for over 6600 private sector employers, $2.7m each year. From 1 July 2005, the Territory will also abolish debits tax, saving Territory business and the community $6.2m per year.
These are record tax cuts. The Territory will have the lowest taxes for small business anywhere in Australia. For a business with about 20 staff, recurrent taxes will be reduced to approximately $6830 per year, from 1 July 2004. This compares with $31 940 in New South Wales, $32 144 in Victoria, and $11 444 in Western Australia. Territory small business will pay less recurrent tax than interstate counterparts and will enjoy the most competitive business environment in Australia.
Tax cuts are not the only stimulus that Budget 2004 provides. This budget provides the highest ever spending on infrastructure: $441m will be spent on capital works, minor new works and repairs and maintenance. This will sustain around 4000 jobs in the construction industry and, indirectly, underwrite thousands more in support industry. In Budget 2004, the government’s record infrastructure program is targeted at tourism, roads and strategic development projects.
Tourism will receive an infrastructure boost of more than $60m over the next three years. This excludes expenditure on the waterfront. Combined with the additional $27.5m announced by the government late last year, tourism will be the focus of around $90m of additional expenditure. Over 950 jobs are anticipated to flow directly from the $27.5m injection, most of these in small business. Even more jobs will directly result from the investment in tourism infrastructure.
Roads are another big winner in the infrastructure budget. Funds will be directed at roads that lift economic growth and generate jobs. In 2004-05, roads to capital works total $70m including the Mereenie and Litchfield loops. In addition, expenditure on roads maintenance has been increased in 2003-04 and will be further increased in 2004-05 to almost $30m.
The third element of the government’s infrastructure program is strategic development projects. Funds totalling $52m will be spent on the East Arm Port completing the AustralAsia trade route, the Desert Knowledge Precinct, the Darwin waterfront, and other strategic development projects.
This government is proud of the Territory’s great lifestyle - the best in Australia. Budget 2004 will make it better. With more support for sporting and community events, arts and culture, enjoying our parks and fishing. This year, the budget will support the strongest ever program of major events in the Territory’s history. The good news does not stop there. The government continues to provide record budgets in the key areas of health, education and police. In 2004-05, there is a record health budget of $635.4m, an increase of $23.7m. The education budget is a record $540.6m, an increase of $13.2m when one-off items are removed from 2003-04. The police budget, another record, $172.4m, is up $8.6m. The Martin government’s commitment to a healthier Territory, better educational outcomes and safer communities is well and truly reinforced by Budget 2004.
I turn now to the Territory economy. The onshore economy continued to strengthen in 2003-04, with state final demand increasing by an estimated 4.4%; a good result. Investment was boosted by the start of construction of the LNG plant, and private consumption maintained solid growth. However, a greater than expected fall in offshore oil production means the Territory growth state product is estimated to increase by 0.3% in 2003-04. Population growth in 2003-04 is positive, though lower than we would like. Departures have remained constant, but arrivals are lower than average. Employment growth started to pick up late in 2003-04. The latest figures show the level of unemployment has dropped each month for the past 11 months.
Dwelling investment and property markets continue to strengthen. Darwin’s annual inflation rate is estimated at 1.5%, below the national rate of 1.8%. Treasury forecasts GST growth to strengthen to 5.8% in 2004-05. The major influence has been strong employment growth, increased construction and tourism-related activity, and population growth.
Production from Bayu-Undan is expected to more than offset falling oil production from Laminaria/Corallina. Engineering work for Bayu-Undan Stage 2 will be the key driver of Territory investment in 2004-05. With capital investment of around $2.8m, the Bayu-Undan Stage 2 LNG plant and pipeline is the largest project ever undertaken in the Northern Territory. It will take almost three years to complete, and will employ around 1200 people at its peak.
Employment is forecast to increase by 2.9% in 2004-05, supported by construction of the LNG plant, increased residential and non-residential building and a strengthening tourism sector. Further Defence development will also contribute to growth in 2004-05. Annual inflation in Darwin is forecast to increase to 2.2%.
I now move to the fiscal projections in the budget. When we were finalising the Territory budget just a week ago, 2003-04 was on target for a $2m deficit consistent with the mid-year report. The Commonwealth budget handed down last Tuesday included an increase in national GST collections, of which the Territory receives $36m in 2003-04 and $28m in 2004-05. The additional GST revenue means a surplus of $34m for 2003-04. Spending has increased by $73m during 2003-04. Operating payments have increased by $60m, with major boosts in the priority areas of tourism, police, jobs and training, corrections, justice and child protection.
Grants from the Commonwealth are up by $115m, $23m of this is new and expanded specific purpose payments, which carry related expenditure obligations. GST grants have increased by $92m. Territory tax receipts have increased by $8m. The significant variations are an additional $14m in stamp duty receipts due to increased economic activity and large, one-off transactions, offset by a reduction in payroll tax of $9m due, in part, to waivers and refunds.
A number of commitments have been bought forward to 2003-04. These include: $2m to relocate the Palmerston Magpies to the Palmerston Campus of the Charles Darwin University; $500 000 to the Katherine Town Council for improved sporting facilities, a promise we made to the people of Katherine during the by-election and one we have delivered on immediately; $3m to Charles Darwin University consisting of $500 000 to assist with the merger with Centralian College and $2.5m to match Commonwealth funding for a new higher education facility in Central Australia; $3.8m to extend electricity to Dundee Beach; $4m for indigenous essential services; and $1m for research grants recommended by the Territory’s new Research and Development Council. This is a new and exciting policy direction by the Martin government aimed at supporting Territory innovation.
Sound financial management over the past two-and-a-half years and improved GST revenue has resulted in the Territory making good progress in achieving the fiscal targets established in the 2001 mini-budget . Three challenges arose during 2003-04 leading to a revision of the fiscal strategy. First, the government made a decision to provide additional support and stimulus for economic growth, both by increasing spending and by further reducing taxes in the 2004-05 budget. Second, the Commonwealth Grants Commission 2004 review resulted in a $48m reduction in the Territory’s GST revenue; the largest reduction to any state or territory. Third, the government decided to boost spending in priority service areas of police, health, tourism, education, jobs and training and correctional services.
This government continues to increase spending in key areas long neglected by our predecessors. As a result of the government’s response to these challenges, the targets for the 2004-05 Budget and forward estimates have been revised. The general government deficit is projected to plateau in 2005-06, and then improve in line with the government’s commitment to achieving a balanced budget.
I turn to the projections for the 2004-05 Budget. As seen in recent years, the volatility in GST revenue can significantly affect the Territory’s outcome. The general government sector is expected to be in balance in 2004-05 because of additional GST revenue. It is expected the budget will return to a deficit of $16m in 2005-06, based on current GST projections.
In 2004-05, general government operating receipts are unchanged from 2003-04. Territory tax receipts are estimated to increase slightly by $2m, reflecting increased economic activity, offset by the tax cuts within this budget. Other receipts, predominantly dividends, are to fall by $6m in 2004-05. Commonwealth grants, the Territory’s major revenue source, will increase by just $4m because of the reduction in the Territory’s relativity. GST revenues would normally increase by at least $50m. Operating payments are estimated to increase by $51m, reflecting the effect of expended programs. Interest payments are expected to decline by $14m in 2004-05 as a result of lower interest rates achieved through refinancing. Public sector infrastructure spending is a record $441m in 2004-05. Lower general government sector capital payments are offset by increased spending in housing and port-related infrastructure.
I turn now to the detail of the budget initiatives. Budget 2004 delivers less tax, more jobs and a great lifestyle. Budget initiatives are focussed on the priority areas of business - particularly small business - creating jobs, enhancing our lifestyle, safer communities, better educational outcomes and a healthier community.
We have listened to business, and this is a pro-business budget. Record tax cuts will act as a major stimulus for business activity which will impact across all business sectors. Small business, medium business and larger business all reap a benefit from these initiatives.
Earlier in this speech, I outlined the impact of the tax cuts in this budget on small business and the comparison of interstate competitors. Now let me provide details of the impact on a medium size business. For a business with around 40 staff and a payroll of $1.6m, the effect of this budget will be to reduce recurrent tax to $48 320 from 1 July 2005. This will be a tax reduction of $29 000 compared to their tax bill today. I will repeat that: as a result of this government’s tax initiatives, a medium size business with 40 staff will be saving $29 000 each year from 1 July 2005, a drop from $77 348 to $48 320 – an outstanding result for business. These changes will also make the Territory the lowest taxing jurisdiction for medium sized business. Compare this with the same size business in New South Wales. Their recurrent tax bill is $104 615, a difference of over $56 300. It is $110 835 in Victoria, and $53 945 in the ACT. Territory business will be in the best competitive position against their interstate counterparts ever.
The removal of the HIH levy adds to the business savings from this budget. Small business with around 20 staff will save, on average, $800 per annum from this measure. Business with around 40 staff will save around $1600 per annum. Overall, the HIH levy liability has gone from the original estimate of $50m to around $22m. The government will now absorb the full cost of outstanding claims left after the collapse of HIH.
In addition to record tax cuts, the government will also improve its administrative processes. An independent taxation and mineral royalty administrative appeals tribunal will be established. This will provide taxpayers with an inexpensive alternative to appeal decisions of a tax or royalty assessment.
The Martin Labor government will also reform the public liability insurance requirement for businesses supplying to government. The current requirement of $10m for public liability insurance will be reduced to $500 000 for the supply and delivery of goods off the shelf and for items with a manufacturer’s warranty.
As of 1 July 2004, the government implements its policy of mandatory payment of undisputed accounts within 30 days. Businesses that have not been paid on time will be able to apply for interest penalty payments.
To further stimulate business, the government is directing significant resources into tourism infrastructure, including: $38m to seal the Mereenie Loop Road over the next three years; $15m to seal the Litchfield loop road over the next three years; $2.5m for a new cruise ship terminal at Fort Hill Wharf; $500 000 for headworks for the Katherine Cultural Precinct; $1.1m for Gregory and Limmen National Parks; $1m to upgrade visitor facilities in Territory parks; $280 000 for the Battery Hill facility in Tennant Creek; and $390 000 to upgrade the Territory Wildlife Park and Alice Springs Desert Park.
With this expenditure, tourism will receive an additional $90m over the next couple of years, an acknowledgment by this government of the importance of tourism to our economy. Tourism impacts across all business, from small to large.
Roads funding is focussed on those strategic roads that will boost economic growth and development. This include: a further $1m towards sealing the Tanami Road; almost $30m on national highways and roads of national importance; $4.8m on Stage 1 to improve access to Borroloola; and $1m will be spent on the beef roads, Dorisvale, Oolloo, Fleming and Cadell. Almost $30m will be spent on repairs and maintenance of Territory roads, a $4m increase since the 2003-04 budget.
Funds for strategic development projects include $25m at East Arm Port, including $5.7m to complete Stage 2A; $10.3m for oil pipelines and associated equipment for bulk fuel liquids to enable the removal of oil tanks from Stuart Park; $7m for a bulk loading facility and $2m for a new incinerator.
The Desert Knowledge Precinct in Alice Springs will be constructed at a cost of almost $30m over two to three years. This will have a significant impact on the construction industry in Alice Springs. It will also impact on the long-term future of the town’s economy, as we focus on the smart economy, providing Australia and the rest of world with our desert knowledge and innovation.
$8m is allocated for the Darwin city waterfront. This project will change the face of Darwin. It will provide our capital city with a signature. This project will provide significant stimulus to the construction industry and, in the long term, add enormously to Darwin’s appeal.
$1.53m is provided for indigenous economic development strategies; the on-line Territory Business Channel will be expanded at a cost of $800 000 over two years; the business and skilled migration strategy will be implemented at a cost of $350 000; and Making It In the Territory, the Territory’s manufacturing industry strategy, will be implemented in 2004-05 in partnership with industry and unions.
Creating jobs and providing training to Territorians is a key commitment of this government. We believe that we must get training right for the future of the Territory. The government has placed a great emphasis on jobs since we took office in August 2001. Last November, I announced the first ever Jobs Plan - more than $160m focussed on training over the next three years. Under the Jobs Plan, the government will train, prepare and support up to 7000 apprentices and trainees over three years. During 2004-05, about 2400 apprentices and trainees will be employed across 180 discrete qualifications in 16 industry sectors, with $11.75m provided for training purposes. To date, this government has lifted the number of trainees and apprentices by 30% but, more importantly, we have focussed effort on meeting the needs of the Territory work force now and into the future.
The government will build on the Jobs Plan by allocating $38m to registered training organisations to deliver a broad range of vocational education and training programs and courses in both urban and remote settings; $12.39m to support and train apprentices and trainees across the Territory; $1.2m over the next three years for prevocational training programs which aim to better prepare Territorians for apprenticeships and traineeships; a further $830 000 to a total of $1.58m in 2004-05 for the introduction of the new labor market programs; $980 000 per annum over the next three years for an additional 200 public sector trainees; $390 000 to Footprints Forward to assist indigenous youth in Alice Springs; and $1m ongoing for the remote work force development strategy.
Education is another key priority of the Martin Labor government. This year, a record education budget includes $256.3m for early childhood and primary education in government schools; $125.2m for government secondary schools; and $72m for assistance for non-government schools. This year, we will meet our commitment to employ 100 additional teachers. We will also continue the student bursary scheme, alternative education provision, and the employment of eight school attendance officers. These have been very successful Labor government initiatives, and will cost an additional $3.5m in 2004-05.
$1.25m has been approved to expand the accelerated literacy program from the current trials in Lighthouse schools. The results of this program are outstanding. Young students are learning at the rate of 1.75 years for each year. They are catching up with their classmates, and improving their chances of a full and meaningful future.
Funding of $1.2m in 2004-05, rising to $2.56m ongoing, will continue the Aboriginal Islander Education Workers program after withdrawal of Commonwealth funding.
Information technology infrastructure in schools will be improved with an extra $2m. A further $250 000 is provided for increasing band width by 15%. $5m will be spent over the next four years to provide every classroom teacher in government schools with a laptop computer.
$750 000 is provided in 2004-05 to replace and upgrade domestic furniture in remote teacher housing. This follows $1m provided for this purpose in February.
Increased funding of $500 000 is provided to upgrade capital equipment in government schools and community education centres and, again, supplements the additional $1m provided in February this year.
A new $300 000 school grants program will commence in 2004-05 for government schools in need. Financial assistance to non-government schools under the capital assistance and interest subsidy scheme increases by $500 000.
This year, around $64m is programmed for new and ongoing capital works, minor new works and repairs and maintenance including $1m each for Stage 1 redevelopments at Nakara and Alawa Primary Schools; $2m for Stage 3 of the Remote School Upgrade Program; $220 000 for a disabled access lift at Casuarina Secondary College; $250 000 to complete the airconditioning upgrade at Gillen Primary School; and ongoing works at Darwin High, Parap Primary and a number of bush schools including secondary facilities and Kalkarindji, Minyerri, and an upgrade at Maningrida. There is an enormous backlog of work to be done on our schools across the Territory. We have committed, and will continue to commit, significant funds to address this backlog.
Community safety is an issue of importance to Territorians and to this government. We have taken a whole-of-government approach that is delivering results. We have put our money where our mouth is on this issue. Again, this year, crime prevention and community safety receives a major boost in the budget. The O’Sullivan Report continues to roll out in 2004-05. A further $6.7m has been provided, increasing to a total of $27.9m ongoing by 2006-07. A further $200 000 in 2004-05 and 2005-06 is provided to support the recruitment of Territorians into the police force. $1m over three years has been approved to build on the Northern Territory’s counter-terrorism capability. A total of $2.9m in 2004-05, and $2.6m ongoing, has been allocated for patrol boat replacement and other equipment.
Additional funding of $560 000 is included, to a total of $1.49m ongoing, to meet the government’s commitment to employ an extra 16 fire officers. $210 000 will establish a new Arnhem Land fire control region, and an additional $260 000 is provided for Volunteer Bush Fire Brigades.
$2.7m will be allocated to continue the success so far of the community harmony strategy addressing itinerancy and antisocial behaviour. Funding of $3.06m will be provided in 2004-05 to implement the recommendations of the review of adult custodial services, including rehabilitation programs and staffing. The Office of Court Administration will receive an additional $1.3m to meet increased demand, with a further $110 000 for the Office of the Director of Public Prosecutions. Significant capital projects for community safety include $8m for a new low security section at the Darwin gaol; $1m for a police post at Numbulwar; and $680 000 to upgrade police cells at Batchelor, Maranboy and Ti Tree.
Again, this is a record health budget. Health funding will receive a further boost in the 2004-05 budget, as it has in every budget introduced by the Martin government. The budget of $635.4m is an increase of $23.7m and includes: $357.9m for acute care services; $109m for community health services; $80.8m for aged, disability and mental health services; $44.8m for family and children’s services; a further $2.6m for improved mental health services; additional recurrent funding of $2m for an expanded intensive care high dependency unit at the Alice Springs hospital; and $2m will expand the HIV/AIDS treatment and prevention program. Last year, the government announced that funding for child protection services over the next five years will increase by 10% per annum. The increase in Budget 2004 is $1.8m. $1.2m extra is provided for expanded disability services. Dental health programs will receive an additional $600 000. Significant health capital projects for 2004-05 include: $2.5m for the Darwin birthing centre; $1.5m for a new health centre at Kalkarindji, $900 000 for Stage 2 community-based renal facilities; and fire safety upgrades costing $900 000 at Alice Springs Hospital and $750 000 at Tennant Creek Hospital.
Territorians enjoy a great lifestyle. This budget will make it even better. This year, the government will support the most extensive program of major community and sporting events the Territory has ever seen - events as diverse as international cricket and the International Guitar Festival. From arts festivals to Aussie rules, Territorians will have a feast of national and international quality events at their fingertips. Budget 2004 provides over $6m in support to major events. The Territory’s great lifestyle is supported by a $19m budget for sport; $32m for arts, museums and libraries; over $90m for parks, the environment and heritage; and $142m for housing. $300 000 is provided for the BassintheGrass concerts to be staged annually in Darwin and Alice Springs. These concerts were spectacular successes when the Martin government introduced them last year.
Ethnic community groups will be able to access a new $500 000 capital facilities grants program. This is the second major ethnic grants program introduced by this government.
$270 000 is provided in each of the next two years to stage AFL matches in Darwin and Alice Springs, and fund camps for players and coaches in the Territory. Grants to sports organisations will be increased by $500 000 to a total of $5.58m in 2004-05.
There will be an additional $350 000 per annum to support the Festival of Darwin, the Alice Springs Desert Song, the Garma Festival, and the International Guitar Festival.
Budget 2004 provides $2.7m to stage the Masters Games in Alice Springs later this year, and the Arafura Games in Darwin next year.
$370 000 in 2004-05 and $120 000 ongoing has been provided for the first ever Darwin Harbour Management Plan. To continue our commitment to the environment, a $200 000 Environment Protection Grant Program has been established to provide funding to community-based environmental organisations. $330 000 per anum for three years will fund the government’s litter abatement strategy.
Significant capital projects to enhance the Territory lifestyle include: $1m to upgrade the Hidden Valley Raceway; $2.3m for headworks for the Palmerston recreation centre and Katherine Cultural Precinct; $500 000 for headworks for the home of Territory soccer at Marrara; $1.7m as the last stage of a $5m upgrade of Traeger Park, $3m for the urban enhancement and heritage program; $3m for the continuation of undergrounding of powerlines in Darwin; $500 000 to improve access and facilities for recreational fishing; $160 000 for AFANT; and $10 000 in small grants to fishing associations.
Housing amenity plays an important role in our lifestyle. The 2004-05 budget includes: $5.4m for the new seniors village at Kurringal site; $2.3m for security screens for public housing; $4.3m for community renewal of urban public housing; $1.8m for short-term accommodation projects as part of the Community Harmony Program; and $1m for new public housing in Alice Springs.
Building Stronger Territory Regions receives continued emphasis in the 2004-05 budget. $360 000 will be provided to the Chief Minister’s Priority Task Force Program, initially at Wadeye. Funding of $220 000 in 2004-05 has been approved for a regional coordinator at Groote Eylandt. In both of these communities, the need to coordinate the delivery of services by Commonwealth and Territory governments and to invest in their future development is evident. The work being done in these programs will provide both immediate and long-term benefits for the Territory community as a whole.
Significant capital projects for regional housing include $3m for land servicing in remote communities, and $22.6m for construction and upgrade of government employee housing in regional and remote areas.
Budget 2004 keeps the Territory moving ahead. It delivers record tax cuts, the highest ever cash spend on infrastructure, and it supports our lifestyle: less tax, more jobs, great lifestyle. It provides business with the most competitive environment in Australia, and positions us well to expand and grow. More jobs for Territorians will result from both our tax reform and the infrastructure spending. We have focussed on supporting sport, major events, fishing and the great Territory lifestyle.
Budget 2004 continues to provide record funding for the key priorities of education and training, health and police. I am proud to place before you Budget 2004.
Debate adjourned.
Continued from 19 May 2004.
Dr TOYNE (Justice and Attorney-General): Madam Acting Deputy Speaker, Budget 2004 keeps the Territory moving ahead with a record tax cut, more jobs, and a great lifestyle. It is a budget that is economically responsible, supporting small business, and expanding opportunities for growth in jobs. It provides the highest ever cash spend on infrastructure, while delivering record health, education and police budgets. It builds on a unique Territory lifestyle.
With regards to my health portfolio, this budget is my first as Minister for Health, and I am proud to be able to deliver a record health budget for Territorians; a budget that will build on the progress that we have already made towards creating a genuinely sustainable, responsive and effective health system.
We know that across the western world, health budgets are facing the challenges of escalating costs, new technologies, increased demand and higher expectations. In the Northern Territory, these challenges have been compounded by years of neglect, and underfunding. When this government came to office, we inherited a system facing massive financial and management difficulties. The Department of Health and Community Service, despite numerous reviews and the work of its many dedicated staff, had been failing to live within its means for around a decade. Desperately needed reform began with the Bansemer Report released in early 2003. Since then, the department has undergone a substantial restructure to improve accountability, and build a sustainable budget footing.
The new structure focussed on program delivery, came into effect on the 1 July last year, and the results of that restructure are now paying off. The results of 2003-04 represents the first budget in a decade where the Department of Health and Community Services expected to deliver a budget outcome in line with predictions contrary to the outlandish claims of the current Leader of the Opposition, who should learn to read the budget papers. This is no small achievement and, in fact, Madam Acting Deputy Speaker herself has had a lot to do with that, both in the recent history of the Territory, and compared with other states around Australia.
I thank the staff of the department for their continued hard work during what has been, for some, a challenging period. In the health and community services portfolio, we have long term plans that put the Territory first. We now have a health system underpinned by sound financial management and proper accountability, and we are moving ahead competently to build better health services for all Territorians.
With this foundation laid, in February of this year, my colleague, the Minister for Family and Community Services, and I launched Building Healthier Communities, this government’s framework for the health and wellbeing of Territorians over the next five years.
The 2004-05 Budget provides funding for priority areas identified in the Building Healthier Communities framework. Building on the $100m boost already provided to the Territory’s health and family and community services, this budget sees an additional $23.7m, bringing the total health and community services budget for the Territory to $635.4m for 2004-05.
I am pleased to announce that this injection of funds into our health system will see the creation of additional 71 new nurse positions, 65 of them for our hospital system, during the 2004-05 financial year. With the 48 new nurse positions already created by the Martin government to date in our hospitals, we are on track to well exceed our election commitment of the additional 75 hospital nursing positions during the first term of this government.
It is interesting that in the face of our announcements about increasing nurse positions, the Leader of the Opposition continues to claim that we are doing nothing to reduce their workload. As usual, his rhetoric simply does not match the facts; he just keeps getting it wrong.
Our hospitals across the Territory provide a top class level of service for Territorians, and the Martin government is determined to make them even better. Our hospitals and other acute care services will receive an estimated $18.6m increase in the next financial year, with total funding of $357.9m.
It gives me particular pleasure to advise the House that the Alice Springs Hospital will receive an $11m injection of funds over the next four years to develop a fully integrated intensive care and high dependency unit, which will be expanded to carry eight beds. This is good news for Central Australia. It will reduce the need to transfer critically ill patients to Darwin or interstate, and will provide an improved professional environment, strengthening the recruitment of specialists and other staff to Alice Springs Hospital.
The additional funds will be used to employ a specialist intensivist and 36 other additional nursing and support staff, including a dietician, physiotherapist and pathologists. This will improve the quality of hospital care for Central Australia, and represents a major investment by our government in the future of Alice Springs. $2.9m over this financial year and next is also included in the capital works program for Alice Springs Hospital to upgrade fire safety and improve the air-conditioning system for the comfort of patients, staff and visitors.
Meanwhile, Royal Darwin Hospital will receive additional funding of $2.5m to complete the commissioning of critical care services. Those funds will allow three additional beds to be opened in the high dependency unit, three additional beds in the coronary care unit, and 10 short-stay beds in the emergency department itself. That means that RDH emergency department and critical care services now have 62 beds compared to 23 when this government was elected. This initiative builds further on the emergency department at RDH, which has been recently described as world class by the President of the AMA, Dr Bill Glasson.
Two other major projects will be under way in Royal Darwin Hospital during 2004-05. The first of these is the construction of a 12-bed stand alone hospice, which is due for completion by the end of the next financial year at a cost of $3.6m, delivering on our election promise. The hospice is a new service for the Territory, and will be integrated with the existing community-based palliative care team’s activities. It will provide care to those with terminal illnesses and those requiring respite care or pain relief in a less formal setting than a hospital ward. $900 000 has been included in the 2004-05 Budget to fund the recruitment and training of staff in preparation for the opening of the facility, together with an additional $1.36m in 2005-06 for the final fitout and ongoing staff costs.
The other major item in Royal Darwin Hospital is $2.5m for the establishment of a birthing centre. Two new home-style birth rooms for women who are assessed as having minimal risk of complications are to be built, together with an upgrade of the existing four birth rooms and complete refurbishment of the entire 6th floor maternity ward. $326 000 per year will be provided in 2005-06 to employ an extra four nurses in the birthing centre, and a new midwifery-led model of care will be implemented across the birthing service, including a dedicated midwifery nurse to work with patients from remote areas. This model provides the best care to the most number of women, and the additional funding provides greater choice of birth options for Territory women.
These are significant additions to our Territory hospital services, with 33 new hospital beds being provided over the next two years. It shows how out of touch the current Leader of the Opposition is when he claims that this government is closing hospital beds. He is wrong, again.
Our regional hospitals in Katherine, Gove and Tennant Creek will also benefit from this budget with funding increased by $1m to $39.7m. This will allow those hospitals to improve their range of services so more patients can be treated locally rather than having to transfer to larger hospitals or interstate. Over $750 000 in new capital equipment is currently being purchased for these hospitals, ranging from video conferencing facilities in Gove and Katherine, to defribulator units in Tennant Creek.
As our Building Healthier Communities five year framework highlighted, one of the greatest challenges we face in the Territory continues to be kidney disease. Haemodialysis treatments are growing at approximately 6% per year, with around 2370 treatments per month. We will be tackling this through the continued implementation of our Preventable Chronic Diseases Strategy and through increasing the resourcing of treatment facilities. An extra $1.5m will be spent on renal dialysis services across the Territory in 2004-05, including further expansion of renal dialysis services in Tennant Creek. An additional $900 000 will be spent to construct and install facilities to support remote renal services, subject to community agreement.
I am particularly proud to announce a considerable boost to health care in remote communities. $1.4m is to be provided in 2004-05 to commence a four year program to phase out the 18 single nurse posts in the Northern Territory. Four clinics will gain additional staff this year - Kings Canyon, Titjakala, Robinson River and Minjilang. Pending the construction of suitable housing, a further four single nurse posts will be phased out in 2005-06. In the interim, two additional Alice Springs-based nurses will be employed to provide additional support and relief staffing for the remaining posts. This program will result in healthier communities and better working conditions for remote-based nurses. The delivery of health services in remote areas is underpinned by appropriate, safe and good quality infrastructure.
Two new health centres will be constructed in 2004-05 at Kalkarindji and at Yuendumu, where the Northern Territory government is contributing half of the required costs. The completion of these centres will ensure a better working environment for staff and better services for clients.
In 2004-05, the Territory will also be contributing an additional $2m for expanded HIV/AIDS treatment and prevention programs. This was an area of need identified in the Bansemer review.
Finally, I would like to highlight funding for research of $4.6m in 2004-05. Research from the Menzies School of Health Research and CRC for Aboriginal Health, and our own in-house research conducted by the Health Gains Unit, make a valuable contribution to the evidence base of our health policies and services. Just last week, a major article by the Health Gains Unit has been published in the Medical Journal of Australia, which shows that, dollar for dollar, without taking into account aspects such as distance and isolation, the Territory is almost 20% underfunded in Commonwealth grants, based on the incidence and severity of illness, mainly to Aboriginal Territorians. We will therefore continue to push the Commonwealth to meet its funding commitments to the Northern Territory. We will also continue to promote, at the maximum practicable level, community control and involvement in the delivery of primary health care to Aboriginal communities.
These budget highlights show the depth of this government’s commitment to moving forward to provide the best possible health and community services to Territorians. We have reviewed the department and its operations, and we are delivering on the recommendations of that review, rather than allowing it to gather dust. We have long term plans, as outlined in our priorities for building healthier communities over the next five years, and we are beginning the process of delivering on them. We are moving ahead to deliver better outcomes for Territorians, and it is an achievement of which our government is proud.
Turning now to my Justice portfolio: Budget 2004 supports our focus on building safer communities by providing the first significant injections of funds into the Territory’s prison system for many years. $26.5m additional funding is to be provided over the next four years to implement the 71 recommendations of the Correctional Services Review, A Path to Good Corrections. With this government’s $75m investment in building our police force and delivering 200 extra police officers on the ground by the end of 2008, our government has already taken significant steps to tackle crime and to build a safer community. This $26.5m funding injection into our prison system will see us turn our prisons and prison officers into a second crime fighting force, building on the law enforcement work of our police force.
The major focus of these prison reforms will be to fight crime by reducing re-offending by up to 50%. Targeted work and education programs aimed directly at preventing re-offending will be introduced into our prisons. Specialist programs targeting specific offending behaviour, including sex offender and ‘criminogenic’ programs will be delivered.
An important element of building a safer community will be tightening security in our prisons by improving the readiness of prison officers and other staff to respond to a crisis. More prison officers will be recruited, and training will be increased to ensure ongoing skills and professionalism, as well as greater opportunities to contribute to reducing re-offending through rehabilitation programs. The government’s tough on crime approach with more police on the streets is working with better clear-up rates and tougher sentencing, and our corrections system is seeing the results: more criminals going to gaol for longer.
To cope with the increased prisoner numbers, construction will start immediately on an $8m low-security area at Darwin prison in 2004-05 to provide an additional 100 beds. This budget also provides a significant increase to core funding for prisons of $2.6m ongoing to cover the rising costs from increasing prison numbers and longer sentences. These reforms will ensure that our prison system is secure and effective, is able to cope with prison numbers, and is effectively using the more than 320 prison officers currently employed in our prison system, to fight crime by reducing re-offending.
I move now to the other budget highlights from the Justice portfolio. With the reform of the Associations Act last year, the government recognised a need to provide resources for training, capacity building and administration of the new legislation, given the large number of associations in the Territory, and the range of community, sporting and other important Territory interests that they represent. To that end, the government has committed a further $265 000 to training to assist the office holders in the many associations around the Territory to understand the requirements of the act, and to build the skills and knowledge necessary to run a successful association. Education and training workshops have also already started and will be held in a wide range of regional centres and communities throughout the Territory during 2004-05.
I am pleased to announce that the initial success of the Community Justice Centre pilot has led to a further commitment in this budget of $100 000 for that initiative. The Community Justice Centre opened its doors for business in June 2003 and, since then, has dealt with a wide range of issues such as neighbourhood disputes, conflicts between family members, workplace conflicts, consumer complaints, tenancy disputes, small claims, and other civil disputes. Mediators are now available to all major Territory centres, and I congratulate them on their ongoing work.
Together with the budget initiatives I have just outlined, the year ahead will see ongoing work on building a safer community through continued emphasis on crime prevention work across government and in community safety partnerships. I have already outlined how our police force and prisons will work at the coalface to tackle crime and reduce re-offending, but we will also attack the causes of crime through crime prevention partnerships with the community and through targeted actions based on community consultation and solid research.
This budget sees our Office of Crime Prevention funded for over $2.5m for the next financial year, allowing the office to continue across government and in partnership with local communities. In the next financial year, the Office of Crime Prevention will:
· encourage the ongoing involvement of the community in crime prevention and community safety activity at grassroots level;
· continue to support regional and indigenous crime prevention councils and encourage communities to establish new councils in their areas;
· publish crime and justice statistics providing Territorians, for the first time, with an accurate and independently verified source of information on recorded crime;
· participate in the development of a sexual assault prevention plan with the newly established Sexual Assault Taskforce;
· continue to administer the successful $400 000 Northern Territory crime prevention grants scheme which provides funding for local and targeted crime prevent initiatives; and
· develop a whole-of-government five year safer communities framework.
The government will continue to support victims, witnesses and their families through the allocation of $620 000 to the Witness Assistance Service attached to the Office of the Director of Public Prosecutions. The Office of the Director of Public Prosecutions will be further supported for the critical work it does in our criminal justice system, with an additional $100 000 to appoint another prosecutor to deal with the increased criminal case load.
Finally, I would like to mention our ongoing negotiations with the Commonwealth to secure funding for the juvenile diversion scheme. Members would be aware that funding for this important scheme was to cease in August this year. Following our negotiations with the Commonwealth, they have agreed to extend funding until the end of the next financial year. During that time we will be carefully considering the evaluation report recently completed by the Commonwealth and determining how the scheme might best be structured to continue to attract ongoing Commonwealth support. Budget 2004 lays the groundwork for an exciting year ahead in my justice portfolio with new initiatives funded to help build a safer community and support the fight against crime.
Turning to my home, Central Australia, this government has a commitment to a strong, vibrant Central Australia. We are driving its economic growth through a difficult time for its tourist industry. We are developing partnerships with Aboriginal people to ensure a stable, secure future. We are delivering on more nurses, more teachers and more police to Alice, the Barkly and the bush. We are investing in the great lifestyle that Central Australia has to offer. Central Australians want action on the release of land in Alice Springs for residential dwellings, new product for the tourist industry that will stimulate domestic and international interest, capital works that support the myriad of small businesses that rely on construction activity, decent roads, good health services and a high standard of education and training, safe communities and a healthy dose of sport, arts and cultural activities. We do not ask for much.
This budget has delivered on those priorities. Tourism is a key economic driver for the Centre. $38m will seal the Mereenie Loop Road over the next three years, and combined with a huge increase in marketing and development funds provided by the Northern Territory Tourist Commission will ensure the industry has the strongest backing possible for a recovery after the difficulties of the past few years. This year, over $0.5m will be spent specifically on marketing Central Australian destinations: Alice Springs itself, the Barkly and Uluru/Kata Tjuta. This is in addition to the normal marketing and public relations dollars spent on promoting the Centre. We are also spending $280 000 on a significant upgrade of the Battery Hill Mining Centre.
One of the Martin government’s key achievements for Alice Springs this year was the release of land for urban housing after a decade without significant land releases. We all recognise that 85 blocks is only a start and the government’s commitment to more land releases in negotiation with native title holders is indicated by the $1m allocated to headworks for Mt John Valley. The construction of the Desert Knowledge Precinct is receiving $25.6m over the next two years. This is not only a strategic project for the future economic development of Alice Springs but will provide a welcome boost to the construction industry.
The construction industry will also welcome $2.9m to be spent on upgrading fire safety and airconditioning at Alice Springs Hospital over this and the next financial year; $750 000 for fire safety at the Tennant Creek Hospital; $2.5m from this year’s budget towards the construction of the CDU campus in Alice Springs; and a $1m senior’s village of six units in Gillen in Alice Springs. $1.7m for the next stage of Traeger Park upgrade will allow a new grandstand to be built as well as other facilities. With the considerable investment this government has made, Traeger Park is now able to attract top rate games including quality cricket and AFL fixtures.
For many small construction businesses, it is the small projects that are their bread and butter. Projects such as the $225 000 to be spent on upgrades to the Alice Springs Desert Park; $250 000 for air conditioning at Gillen Primary School; $150 000 for landscaping to the pathways along Wills Terrace; $140 000 for drainage work on Crown land beside the beautiful Alice Springs Golf Course; and $65 000 to provide walkways, landscaping, seating and shading along Leichhardt Terrace.
Significant amounts of money will be spent on infrastructure out bush, which benefits businesses as well as the host communities. Kalkarindji will receive funding for a new health centre to the tune of $1.5m. Docker River and Nyirripi are getting new power stations. Imanpa, Hermannsburg and Yuendumu are getting upgrades or extensions to their power supplies. Alcoota, Alpurrurulam and Lajamanu will have improvements to their water supplies and a new ranger house will be built at Finke Gorge. Ti Tree Police Station will receive $220 000 for an upgrade.
Our road network continues to receive the attention it so desperately needs. As well as $38m allocated to the Mereenie Loop Road, access to Borroloola will be significantly improved once $4.8m is spent on rehabilitating parts of the Carpentaria Highway and Wollogorang Road. A further $1m has been allocated to the upgrading and sealing of the Tanami Road as part of our $6.5m election commitment to this important beef, mining and community road, and over $2m will be spent in Central Australia on strengthening bridges, and rehabilitation and widening works on one of our primary assets, the Stuart Highway.
This investment in construction and other economic drivers must be accompanied by an investment in the training of our local young people. This is why we are investing $390 000 to the continuation of Footprints Forward, the one-stop shop which supports businesses and mentors young indigenous people to get and retain employment. It is a partnership between business, government and Aboriginal people which promises to reap long-term benefits for the region.
However, strong regions are not just about physical development. This government proudly balances growth in lifestyle; that is why we see the support for the Desert Song, the Alice Springs Festival and the BassintheGrass in Alice Springs as so important. The Masters Games will receive $500 000 for their 10th games this coming October, and the hugely popular Wizard Cup Challenge Game in Alice will again be supported.
Safety in our towns and communities is being addressed with a massive boost to police, including extra Aboriginal community police officers in Central Australia. The extra policing will be backed up by our support for community crime fighting initiatives, such as $260 000 to Community Harmony in Alice Springs and $290 000 for Tennant Creek, as well as delivery of associated accommodation infrastructure. A share of the $400 000 for crime prevention grants will be enthusiastically welcomed by the Central Australian community. Increased funding to child protection services throughout the Territory and a major overhaul of community corrections will also add to our commitment to reducing the causes of crime.
I have also spoken of the investment in health in the Centre, through the $11m increase in funding to the Alice Springs Hospital ICU and HDU units, helping us to improve services and retain specialists in the Centre. We will also be investing in improved hospital staff accommodation, new clinicians offices, extra nurses and staff. The commitment to phasing out single nurse posts is a significant increase in remote health care resources. I am delighted that two of the first four to receive an additional nurse are in the Centre.
I am proud of the investment this government has made into Central Australian jobs and lifestyle through this budget. I am proud of the increase in services to the bush that this budget delivers. Central Australians make a huge investment in their community. I am proud this government has got behind them to ensure that the Centre keeps moving ahead.
Madam Acting Deputy Speaker, in closing, this is a good budget, despite the opposition’s attempts to doom say it. The community is getting a very good coverage through the interests that are embodied in the commitments under this budget. It will be welcomed by the vast majority of our community. While governments cannot do everything, we have used the resources available to us to invest the resources behind what is most important from a government, and that is ideas and vision. In all three of my portfolios, I look forward to a year now where we can get beyond the minutiae of day to day administration and start doing some visionary moving forward. The resources are there to do it, the ideas are there to do it, the commitment from the government and the community are there to do it. I believe we are going to have a great year.
Mr AH KIT (Community Development): Madam Acting Deputy Speaker, for my portfolios the key message of this budget is that the significant increase in tasks we started last year will continue.
The 2003-04 financial year resulted in substantial increases in the scope of policies administered and services delivered by my department. The scene has been set in 2003-04 with $20m in additional funding to the department, taking the annual budget from $204m at the beginning of 2003-04 to an end of year estimate of $225m. This includes:
· $6.5m in one-off capital grants;
· $4m has been allocated for Indigenous Essential Services to meet some part of the massive shortfall and ongoing neglect of services in remote areas;
· $2m for a home ground for the Palmerston Magpies, an important election commitment; and
· $500 00 to upgrade the Katherine sports ground, for a much needed boost to sporting infrastructure in the town.
Excluding the one-off capital grants, the funding level for my department has been broadly maintained in 2004-05, allowing us to progress and consolidate the implementation of major policy platforms introduced in the past 18 months. Connected through the broad theme of community development, my portfolio brings together functions that require specific strategies and policy directions. Most are now in place.
There is significant work now under way to improve the conditions of public housing. Within the next three months, I intend launching Home Territory 2010, a strategy that will take us through the next decade to meet Territory Housing needs.
The Building Stronger Regions, Stronger Futures strategy provides a framework for Territory regional development. In the last budget, I announced the provision of the biggest increases in funding in this area for many years. This effort is maintained this year.
Community Harmony has delivered significant change to the streets of Darwin, and is gradually moving into regional centres. I will also put forward a strategy for the development of sport in the Territory. This strategy will recognise the importance to the Territory of sport in health, social, economic and development terms, and will guide development of facilities, infrastructure and support for many years to come.
In short, this is a budget that maintains a commitment to the portfolio areas for which I am responsible that is greater than has been achieved by any other government of the Northern Territory. The extent of the need in areas requiring the services of my portfolio is substantial. I want to do more, and the government wants to do more. I will continue to seek avenues through which additional funding can be leveraged. I will continue to examine policy and strategic directions that can deliver across all areas of my portfolio. In the meantime, we have maintained the high level established last year.
The total operating expenditure for 2004-05 for the Department of Community Development, Sport and Cultural Affairs is $218m. This includes $21m for the Arts and Museums portfolio, which is the responsibility of the Chief Minister.
The Building Stronger Regions, Stronger Futures strategy has now been in place for just 12 months, and already benefits are evident. This strategy signalled the start of a new era in regional development in the Northern Territory. I am confident that in the future this government will lift our regions to new levels of economic and social development and sustainability. The stronger regions strategy sets a clear direction for work across the whole-of-government. It seeks changes in the way that the government relates to regions, and has put in place mechanisms that will, over time, demonstrate their value to regional stakeholders and across government.
I noted in the debate on amendments to the Local Government Act in February that I believe that a review of the act was required. I will shortly announce terms of reference for that review. While it should deal with substantial issues, it should not drag on. I intend to set a time limit that will have the review completed and recommendations in my hands before the end of the year.
As part of the stronger regions strategy, I announced last year additional funding to employ 10 community development officers in my department. These are now in place and beginning to have an impact. The stronger regions strategy has changed the operational arrangements and approach taken by staff. A group of key officers with qualifications and experience appropriate to the task are now specifically allocated to the task of monitoring accountability for the delivery of local government services. This more specific focus has allowed the addition of a further 22 officers to carry out the regional and community development agenda of the stronger regions strategy, giving a total of 32 officers who will focus heavily on the implementation of a development agenda.
Development officers will play a critical role in achievement of the government’s desire for strong regions where economic and social outcomes are sustainable, and where cultural diversity is respected. To ensure that officers have the necessary skills to undertake this enhanced role, tertiary training is being developed in partnership with the Charles Darwin University. The Graduate Certificate in Community Development will commence at the CDU in the Semester 2 of 2004.
A number of priority projects are now well under way. Wadeye, also known as Port Keats, is the site for a major Indigenous Communities Coordination Project that is trialling new ways of achieving cooperation between three levels of government. To ensure that the Territory is able to obtain full benefit for the people at Wadeye from this work, the government has committed $358 000 for the Chief Minister’s task force on priority partnerships. Two additional staff will be employed and resourced to work with staff of other agencies to coordinate service delivery to remote areas, with an initial focus on Wadeye, Mutitjulu and Jabiru. Partnerships and regional development go together, but they are not easy to achieve and to maintain. One means that is being utilised to foster and develop this process is the placement of key officers in communities. My department placed an officer in Borroloola in August last year to bring together a focus on regional initiatives and regional development. While it can take time for it to be possible to access real outcomes, the signs are promising.
A further initiative along these lines will now be put in place with the allocation of $224 000 to my department to employ a coordinator to operate in the Groote Eylandt archipelago, who will be supported by a departmental officer. They will supply greater coordination of government service delivery in the archipelago and provide strategic direction for developments in the region. They will be involved in community development activity, liaison, and the development of more effective governance arrangements for the area. Other priority areas include Nyirranggulung-Mardrulk-Ngadberre in the Katherine East area, the Tiwi Islands, Jabiru and Kakadu, the Barkly, Anmatjere, the West MacDonnells and Alyawarra regions in Central Australia.
The five regional development boards are now in place. Funding of $500 000 is provided on a recurrent basis for a regional development fund which is directed towards regional development activities, including planning initiatives, facilitation of strategies under regional development plans, and assistance in negotiating partnership agreements with local governing bodies. Funding will also be used to partially support a State of the Regions conference to be held in September 2004. Regional development plans are being progressively developed for all regions and will be the vehicles for negotiation across the whole-of-government. The Katherine Regional Development Plan was approved by government in September 2003, and the Anmatjere Regional Development Plan approved in November 2003. A review of the Barkly Blueprint is about to commence and initial planning has commenced on the East Arnhem Regional Development Plan, a Thamarrurr Regional Development Plan, and the Gulf Regional Development Plan.
Water safety has tended to be a matter of interest only as a result of the impact of pool safety requirements. There is, however, a much wider and more important set of issues that need to be dealt with. The government moved to establish the Water Safety Advisory Committee in November 2002. This year we have established the new Water Safety Branch. The branch will coordinate all facets of the water safety campaign, aiming to increase the level of awareness of water safety issues across the spectrum of relationship in interaction of Territorians and tourists with water.
In regards to sport and recreation, Territorians place great value on lifestyle and our unique attractions and are enthusiastic participants in a multitude of activities. Their sporting prowess is well known across the nation and overseas. This government is well aware of the benefits of physical activity. Through my Office of Sport and Recreation, the grants program has been boosted with an additional $0.5m to further support sport and recreation organisations to operate effectively and deliver quality programs to members, officials, volunteers and participants. A capital grant of $0.5m has been approved for the provision of improved facilities at the Katherine Sports Ground, and $140 000 has also been approved to fund the construction of a skate park complex at Katherine, a project that was included in the Regional Development Plan and seen as a priority by the Katherine Regional Development Board.
An additional $1.7m will be made available for Traeger Park in Alice Springs further increasing the capacity of the ground to attract major events to the town. This will bring a total of around $2.4m available for Stage 3 of Traeger Park development honouring our $5m election commitment.
The Hidden Valley Raceway has deteriorated after years of neglect. This government has committed $1m to remedial work at this sports facility that hosts one of the Territory’s most popular sporting weekends, the V8 Supercars.
The Territory soccer fraternity has been frustrated for many years with the lack of a home ground. The government provided over $50 000 in 2003-04 to review the administration of the code in the Territory. I recently announced $500 000 of grant funding to improve junior soccer facilities across the Territory. Also, the Budget provides $500 000 to commence works on the soccer stadium at Marrara.
The 2004-05 financial year also sees the welcome return of the Arafura Games as well as a $1m increased to attract and hold major international and national sporting events in the Territory including next month’s Women’s Netball between the AIS Darters and Queensland Firebirds; Darwin’s second Cricket Test against Sri Lanka in July; a four match Men’s Hockey Series between Australia and South Korea in July; the first ever AFL Premiership points fixture in August; an International Soccer Challenge in August; the return of the Perth Wildcats for their second NBL home game in Darwin in February 2005, as well as the 10th birthday of the Alice Springs Masters Games in October.
The 2002 Alice Springs Masters Games were an enormous success, generating a direct income flow to Alice Springs of over $7m. Preparations are well under way not only to renew old relationships, but also to entice new participants to Alice Springs this year. The 2004-05 financial year will also see another Northern Territory Sports Awards night to celebrate sporting excellence in our community. With the level of sporting greatness we have here in the Territory, I am sure the number of nominations received this year will better the number of nominations received in 2003.
Once again, the Northern Territory Institute of Sport has shown that the Northern Territory is able to develop a range of talented athletes despite our small population base. In recognition of their outstanding sporting talent, 116 Territorians across 18 sports have been awarded with full-time 2004 scholarships to the Northern Territory Institute of Sport, with an additional 35 part-time scholarships awarded.
I am proud to announce the success of the Junior Elite Development Scholarships, also known as the JEDS program. I initiated this program last year. From this program, 14 Territorians have received individual scholarships for the first time including young sailor Jack Benson, Alice Springs cyclist Nic Ruscoe and Katherine’s Joel Lewis.
Some of the highlight over the year from this program include:
· Michelle Halprin won gold for Australia at the Asian Youth Championships in Hong Kong in February. Michelle is also ranked now Australia’s No 1 youth bowler;
· Joel Lewis became an Australian junior champion by winning the Under 15 National Title for the cycling criterium;
· Alice Springs’ Mathew Stephens was selected in an Under 17 Australian cycling team which competed in New Zealand in 2003. Mathew became the first Territory-based cyclist to make an Australian team following his selection in the National Development Group, which went for the Oceania Junior Men’s Development Camp;
· Katherine track cyclist Corey Heath also became the first Territorian to make an Australian track team as he came third in the one-lap time trial at the recent Under 19 Australian Championships;
· Maria Tsoukalis won gold at the Oceania and South Pacific Junior Championships in December 2003. Maria’s performance was a great contribution to the Australian junior team. Maria also won the TIO Junior Sportsperson of the Year Award; and
· the Northern Territory Hockey Community has produced two more Australian representatives with Desmond Abbott and Greg Anstess selected in the Australian Junior Talent Camp Squad. The squad represents the players likely to be selected for the 2005 Junior World Cup to be held next year in the Netherlands.
In all, over the past year, the NTIS has seen 24 scholarship holders receive national representation and five selected by national club teams. These achievements are incredible given Northern Territory’s small population base. Some of the performances we can look forward to over the next years are:
· ten pin bowler, Andrew McArthur, has been named in the Australian team which will contest the Asian Championships in Thailand in July;
· talented Territory cyclist and NTIS scholarship holder, Corey Heath, who will contest the World Junior Track Championships in July; and
· talented southern districts AFL player, Richard Tambling, who was drafted at this year’s AFL draft.
This long list of achievements is proof of the Northern Territory government’s positive support and investment in helping the NTIS create an environment where our youngsters can excel. This government will continue to support our elite achievers and provide them with the opportunity to realise their sporting dreams for themselves and for their community.
In regards to the Community Harmony projects, one of the most important responsibilities of government is the development of a harmonious community. I have spoken many times about the difficulties caused by people who act in an unacceptable way in towns throughout the Northern Territory. Community Harmony aims to find ways out of the itinerant lifestyle to home, or to appropriate services or interventions to allow people to live more productive life styles. While there is still much to do, Community Harmony has had proven success in Darwin by using patrols by traditional owners, Return to Home programs, day activities, transient and transitional accommodation options, re-integration programs in remote communities, night and day patrols, youth patrols, and sobering up shelters.
Regional Harmony Group committees are in place in four regions, and they are gradually having an impact in other major towns. The hallmark of this project has been a consensual approach to decision-making that involves over fifty agencies, including all key Aboriginal and non-government organisations. Short-term accommodation options have been included in Darwin and Palmerston. Plans are under way for a short-term accommodation facility in Alice Springs. Options for developing a community centre on a town camp for temporary accommodation are being considered in Tennant Creek, and a multipurpose facility is being planned for Nhulunbuy.
In regards to essential services in remote areas, people in remote areas generally prefer to live there. They will not do this though if they have lousy services and lousy places to live. This government recognised that there had been inadequate funding of power, water and sewerage services for remote indigenous communities over many years. Many of the assets in the communities are now at or near the end of their economic life and require replacement, and repairs and maintenance costs have been escalating. Funding for indigenous housing provided through the Commonwealth-funded National Aboriginal Health Strategy and the joint Northern Territory and Commonwealth-funded Indigenous Housing Authority of the Northern Territory programs has increased the demand for power and water, a demand that had not been sufficiently met under previous governments. This government increased the funding for power, water and sewerage essential services for remote indigenous communities from approximately $35m per annum to over $45m; a commitment we have maintained for 2004-05.
In regards to libraries, preserving our indigenous culture and increasing the opportunities for libraries in remote areas to assist in the development of information, literacy and basic literacy skills, are important aspects of community development. Last year, my department, through the Northern Territory Library and Information Service, assisted the commencement of three pilot knowledge centres in Anmatjere, Wadeye and Galiwinku. Further work has been done during the year to identify the essential building blocks for successful libraries and knowledge centres. The implementation plan for regional libraries and knowledge centres will continue this year, with $230 000 being directed into this area. Libraries preserve our documentary heritage for all present and future Territorians. An important initiative is the introduction of legal deposit legislation to ensure the preservation and availability for future generations of the published intellectual record of the Territory’s economic, cultural, social, scientific and education activities in the Northern Territory library.
Through a range of capital works programs and other projects, public housing tenants who reside in older housing will benefit from improved amenity and condition of their homes. The community will be pleased with the improved appearance and safety within their neighbourhoods, and more jobs will be created for Territorians who are small or single trade contractors, through direct and sub-contract labour. Due for completion this December, a total of $6.8m will be spent on the redevelopment of Kurringal to construct the Fannie Bay Seniors Village. It will provide 40 new ground-level two-bedroom homes for seniors complete with a community meeting place. The units will be specifically constructed to meet the needs of older people who may have disabilities, and the grounds will be attractively landscaped.
A major renovation program under Territory Housing’s urban renewal repairs and maintenance program commenced in 2003-04. This program will continue through 2004-05 with $1.754m allocated to fully renovate 40 to 50 houses NT-wide. In 2004-05, the focus for the works will be to provide tenants of our older properties with basic amenities that include the internal and external painting, floor covering replacement, kitchen refurbishment, bathroom refurbishment, bedroom and linen cupboard replacement, and solar hot water system replacement. As well as improving the conditions of older public housing stock and neighbourhood appeal, this project means all public housing tenants will be able to enjoy a consistent standard of housing regardless of where they live or how old the house is.
This government recognises the vital role that safe, secure and affordable housing plays in assisting people to participate fully in their communities. This year, $3m will be spent on developing a number of public housing complexes across the Territory. $1.5m has also been dedicated to extend the level of security in public housing through the addition of security screens. Other housing budget highlights for the 2004-05 financial year include:
· $1.035m is allocated to providing financial assistance for community-based organisations to deliver crisis accommodation and transitional supported accommodation through the community housing and crisis accommodation programs;
· $1.050m through subsidised rental will go to community organisations to provide alternative housing options for people with special needs;
· an additional allocation of $500 000 will be made available to community groups to purchase, build, upgrade or modify crises and community accommodation services through Territory Housing’s capital works program;
· $830 000 will be granted to indigenous organisations to provide a tenancy support service to assist Aboriginal and Torres Strait Islander people to access and maintain public housing; and as part of this government’s commitment to improving conditions; and
· this government will provide greater access to affordable housing by subsidising public housing tenants with rental rebates totalling $23m. This rebate is the difference between market rent on public housing accommodation and the various concessions available that are accessed by public housing tenants.
In regards to the Territory Housing’s direct tenancy leasing, Territory Housing will lease houses directly to its remote public sector employees rather than to the employing agencies. The benefits of this new policy include the establishment of tenant and landlord responsibilities, improved dwelling maintenance, and recovery of tenant responsibility costs for repairs. Agencies such as Education and Health will be relieved of housing responsibilities and we will have it much more centralised, particularly when we deal with the remote areas.
Madam Acting Deputy Speaker, that is my contribution to the budget. As other members on this side of the House said earlier, this is a good budget. I believe that this is one of the best budgets that has been brought forward in this House. The Treasurer has done a good job. We have a situation where we are catering for all Territorians and it is not an easy task to ensure you spread that money around fairly and equitably. We have had our priorities. We have put money into education, health, police, and tourism. We are ensuring that there are more dollars going out into the remote parts of the Northern Territory. We believe that this budget will go down as one of the best in history.
Ms SCRYMGOUR (Family and Community Services): Madam Acting Deputy Speaker, I am pleased to outline today the significant opportunities and advances afforded Territorians in the 2004-05 budget. This is the Martin Labor government’s third budget and proudly my first as minister. This budget is keeping the Territory moving ahead and is a budget that helps Territory families get ahead.
As Minister for Family and Community Services, I am delighted to see a budget that is about putting families first. This budget is about more jobs, and more jobs helps more families. This budget is about record tax cuts and helping small business and this helps families. This budget is about initiatives that promote our great Territory lifestyle. This budget is about making the Territory a great place to raise a family. Recently, we have seen attempts to buy the votes of families with one-off cash bribes. The Martin Labor government is about supporting families every single day of the year, supporting them with services, supporting them with health, education and community safety. We are helping families get ahead with a record spending health budget. We are helping families get ahead with record funding for education, and we are providing safer communities for families with the record police budget and more police on the beat. These records spends are all part of our long term plans that will put the Territory first whilst strengthening the important links between family and community.
I am proud of the Territory lifestyle. It is a unique, enviable way of living that is simply unmatched anywhere else in the country. It is a lifestyle that gives individuals, families and communities the perfect foundation for balancing work, family and play. This government is building on this foundation by committing dollars to continue enhancing our wonderful lifestyle. When we talk about lifestyle, we generally talk about the place in which we live, our fishing, great parks, arts, culture, sports and entertainment. But woven into that lifestyle is family. The Martin Labor government recognises that the wellbeing of families is critical to the Territory’s future and it is absolutely instrumental that we commit funding to putting Territory families first. This is the only way we will keep the Territory moving ahead.
My portfolio is diverse and deals with many of the significant challenges facing Territorians as individuals, families, and a society. It includes the impact of alcohol and substance abuse, the trials and joys of senior years, the challenges of living with a disability, mental ill health, the scourge of child abuse and neglect, and supporting Territory families in crisis. The objective of the portfolio is to work with Territorians to build strong and hopeful lives not only for this generation but also for those to come.
My colleague, the Minister for Health, has already acknowledged the significant reforms introduced by my predecessor, and I too recognise the considerable momentum she forged through the Bansemer Review and subsequent initiatives. This government presented its Building Healthier Communities framework in February, a framework designed to build a better health system for all Territorians.
This budget shows that Territorians have a right to be optimistic. It contains substance and continues the example that Labor offers the Territory; a government that delivers on its plans. The government has said that it is committed to working with Territory families, community, staff, professional groups and unions. Territory families should be reassured because this budget demonstrates the resolve of government to improve the level, scope and reach of family development and crisis support services available to Territorians. This budget continues Labor’s efforts to encourage individuals and families to try for themselves, but try in the knowledge that the social safety net provided by government is in place, ready to help them bounce back. We are in a better place today then we have been for many years to support, serve and nurture the family and community needs and aspirations of Territorians.
I have said previously that Labor is committed to building a cohesive and forward looking Territory society. We cannot do that if significant numbers of families and children are marginalised or unable to access services, particularly at times of greatest need. The job we confront in the Territory is not an easy one. Stresses in family life can come from a number of sources. For example, poverty is associated with increased stress in families. 12% of all Territory families have three or more children. However, 30% of Aboriginal families in the Territory have three or more children. Of all Territory families that have three or more children, about 13% survive on an income of less than $500 per week. Poverty is associated with increased risks of domestic violence and the rate of allegation of child abuse. Reducing the level of complexity of family crisis is influenced not only just by the quality of our interventions but also by the levels of poverty, overcrowding and other family stresses.
I have said that Labor will support families in communities and will encourage them to be active participants in solving the problems they face. Labor will work with families in need as well as seek to prevent the flow of families in crisis. The difficulties that push families into crisis range across the spectrum of life’s challenges. At their worst, they can result in children needing to spend short periods in and out of home placement, to crisis where children need more longer-term arrangements. Responding to the needs of families is always a balancing act between maintaining the responsibility of parents to do the best they can, and the need to ensure that if they reach their limit, that appropriate services are available to bolster their resilience and capabilities.
In keeping with our commitments, the budget provides an increase of $3.6m to Family and Children’s Services, bringing the total in 2004-05 to more than $44m. This increase delivers the promised 10% improvement in funding to Child Protection Services and includes $600 000 towards a new Family Support Program. The opposition spokesperson was pleased by the government’s commitments to foster carers and Building Healthier Communities. No one should be surprised that this budget delivers on that commitment. We have already increased the payment to foster carers by 8% as of 1 January 2004. This budget provides $595 000 to fund the ongoing cost of this increased payment to foster carers as well as to provide greater scope to attend to the need of children in the system, including children with high needs. Labor is committed to promoting and maintaining the social independence of Territory individuals and families and helping them to overcome crisis. The provision of quality child care offers potential benefits for the health and wellbeing of children. The budget includes an additional $300 000 to fund the increase in childcare subsidies.
This budget continues the work Labor commenced in 2001, by bringing greater stability, confidence and commitment to the Family and Community Services portfolio. These things are important for the staff who work in this important area. They are important to the families and individuals whose lives may be heading towards crisis. They are important for the Territory community because they help us as a society to build greater trust in the institutions that support our families and protect our children.
The Martin Labor government inherited a mental health system that was fragmented, under-resourced and poorly supported. The previous government blatantly neglected this important area of our community health. Let us not forget that mental illness affects one in five Australians and that the burden of disease attributable to mental illness in the Northern Territory ranks in the top two. This government said in 2003 that it was committed to addressing the historical levels of under-funding and inaction and, despite the scepticism of some opposite, we commenced our reform program in 2003-04 with an additional $2m.
We said when we launched that reform that we would continue to improve mental health funding. This budget continues to deliver on that commitment. In 2004-05, the government will increase mental health funding by $2.6m to more than $25.7m, a record amount. Funding has been allocated for two child psychiatrists; one in the Top End and a second one with a Territory-wide focus. Central Australia will also get an additional child and youth mental health worker. For Territorians suffering from mental health problems, this instalment on our promise will mean greater opportunity for early access to services. This funding will deliver increased access to community-based mental health services, and provide additional support to a system on the mend after so many years of neglect.
Labor’s commitment is delivering to Territorians improved prevention, assessment, treatment including sub-acute care, recovery and rehabilitation services. And let us not forget that Labor inherited a mental health system that had the lowest per capita funding in the country.
Territorians living with a disability have not been forgotten by this government. Like Australians generally, the great majority of Australians with a disability live in a private dwelling with at least one other person. In about 72% of cases, they live with their principal carer. Importantly, however, a greater proportion of people in the Northern Territory with a disability live alone when compared to other Australians. Regardless, however, of which circumstances people find themselves in, people like to be at home. Providing an increased level of services in regional and remote locations is an objective that has been identified in Building Healthier Communities. This about, where we can, moving services closer to home so that access is improved.
In 2004-05, the government will provide an additional $788 000 to improve generic and specialist services to people with a disability and their carers. Included in this is $50 000 in Alice Springs and $200 000 in Darwin for services to young disabled people with high support needs. This funding will provide much needed access to day options that allow for ongoing skills development, education and training.
The Northern Territory government will provide $8.2m in 2004-05 to support the pensioner and senior Territorians concession scheme. We estimate that recipients in the scheme will rise to an estimated 17 000 Territorians in 2004-05.
In total, more than $55m will be spent on aged and disability services in 2004-05. We believe that all Territorians have a contribution to make to the life of our community, and these funds will continue our work to build a society in which all can participate.
I came to office committed to the vision of an inclusive and fair society where government resources were well targeted and well managed. The department, for the first time in many years, is being well managed. We expect that the department will deliver a result for 2003-04 within budgetary expectations. This should give us all confidence that the resources allocated in the 2004-05 budget will also be well managed and we will see the results.
In 2004-05, we have increased the Community Services budget to more than $141.9m, an increase of more than 3.7% on the last financial year. We are also better off because we have targeted our funding to areas of significant need; areas left languishing under the previous regime. Government has taken seriously the need of Territorians and we will continue our efforts to build a better future.
I began my budget reply by talking about how proud I am of our great Territorian lifestyle. Let me revisit this for a moment. This is a lifestyle, and as I said at Question Time, that sees Territorians out fishing, hunting and camping at every opportunity. Whether it is playing sport on the weekend, going for a run in the park, sharing a family picnic or heading out bush with some mates, the foundation of our Territory lifestyle is our fantastic urban and natural environments. When I speak of the Territory lifestyle, I do so, not just for those in our urban centres, but also for those in our communities.
Indigenous lifestyles are different, but no less dependent on our environment. The environment is intimately associated with the spiritual, cultural and physical wellbeing of indigenous people, and when the environment is altered, it has serious implications for people on country.
An example is the cane toad. Many Aboriginal people in my electorate have told me that since the cane toads arrived, bush tucker, such as the goanna, is very difficult to find. As we all know, the goanna is important in the diet of these people, and it saddens many of them that such an important animal is being hurt by the cane toad. That is why I am very proud that this government has allocated $400 000 over three years, which includes $80 000 to test prototypes of traps to protect native species from cane toads. To the credit of my colleague, the Minister for Parks and Wildlife, he has been out there pushing for national action on cane toads. His efforts have been well received by federal and state governments. Some may say that this is a small start on a huge problem, but it is money well spent after years of neglect by the CLP who, to their shame, simply stuck their head in the sand.
The Martin Labor government is committed to balancing economic growth with the protection of the environment upon which our Territory lifestyle depends. This is a budget that does just that. It is a budget that will grow our economy, create jobs and, very importantly, make sure that we have the programs in place to protect our natural and cultural assets. Government takes the view that clear and strong environmental requirements create certainty for new investment, and this is good for business as well as the environment.
To this end, government established the independent Office of Environment and Heritage reporting directly to me. This year, $6.1m will be spent on environment programs delivered by this office, up from last year. Together with five new positions previously created, this represents a considerable strengthening of the Office of Environment and Heritage. A major task of the Office of Environment and Heritage is to assess the environmental impact of new developments. I am happy to say that they are very busy in the office at the moment. They are busy because this government is out there growing the economy. Major development such as the Darwin waterfront redevelopment and the Alcan expansion are coming on-line. I have every confidence that the Office of Environment and Heritage will continue to provide me with independent expert advice to ensure that this development is sustainable.
Of course, our environment not only sustains our lifestyle but, together with our cultural heritage, it is the very resource upon which very important industries such as tourism depend. This is a key point and one that I would like to emphasise. Protecting our environment and heritage does not simply mean a greener, cleaner place to use or enjoy; it also means more jobs for Territorians.
This budget continues government’s focus on conserving our heritage assets, with a particular emphasis on World War II heritage which, I believe, will become an increasingly important part of the tourism market as baby boomers down south retire and seek to retrace their mum and dad’s wartime experiences in the Top End. This renewed focus has seen the heritage declaration of Strauss Airfield, a site I firmly believe would not have been declared by the former CLP government. With the leadership and commitment of this government, the site has received heritage protection and, with assistance from the federal government to cover the additional costs of shifting the Stuart Highway duplication, we now have the opportunity to provide tourists with something very special. I am very pleased, therefore, that the budget will capitalise on the heritage listing by providing funding for installation of a lay-by, interpretive shelter, and interpretive walking trail at Strauss Airfield so that the locals and tourists alike can come to understand first-hand the heroism of those who served.
This government is very much leading by example on heritage conservation. The government is the single biggest owner of heritage assets, so it is important that we set the standards for keeping them in good shape. This budget will see $1m allocated for repairs and maintenance to these properties. That is a dedicated spend on repairs and maintenance that simply did not exist under the CLP. It is $1m to the upkeep of some of our heritage icons such as the Residency in Alice Springs, the Katherine railway precinct and the buildings at Newcastle Waters. That is great for heritage, great for small contractors around the Territory who will get more work, and great for tourism.
Conserving and protecting the Territory’s environment and heritage is an investment for the future. Combined with the $84.1m being spent in 2004-05 on conservation and natural resource management, government is investing more than $90m on the environment because this government has the long-term plans that will keep the Territory moving ahead.
Finally, Madam Acting Deputy Speaker, this Martin Labor government’s budget for 2004-05 is about less tax, more jobs and our fantastic and enviable lifestyle.
Ms CARTER (Port Darwin): Madam Acting Deputy Speaker, as members are aware, I cover a number of portfolios. These include health, community services, seniors, arts and museums. Due to the time limit that I face here this evening of only 30 minutes, I will not have time to touch on the areas of arts and museums and seniors which have been covered in the budget. For readers of Hansard, please be aware that I am concerned with these areas and hopefully we will get an opportunity during the estimates process to pursue matters there.
The areas of health and community services are big areas and need some special attention. I thank both ministers for their responses tonight in this debate which I listened to with keenness. The area of family and community services is obviously a very important area and I wish their new minister well over the remainder of her term. I welcome the extra funding that has gone into areas such as child protection and I hope that over the next year or so we see that having an impact in our community.
The minister, though, always lends herself to making sarcastic and provocative comments with regard to the previous government. The inference is that the CLP has never done a decent thing in 25 to 30 yeas of being in government and that every woe that occurs in the Northern Territory is a result of the CLP having been in government, and that the CLP in government obviously means that the Territory has much worse social, mental health, community problems that any other jurisdiction that ever had the joy of having a Labor government. So obviously, if you cross the border into South Australia and go to the Pit Lands, everything is goodness and light there. Of course we all know that that is not the case and as always I do find this petty politicking somewhat of a bore.
Mental health, for example; we have had Labor in government now for three yeas. Mental health is in no way glowing and happy with how they are going. You only have to tour an area such as Cowdy Ward in the grounds of Royal Darwin Hospital to know that it is overcrowded. You only have to listen to what the staff tell you with the fact that sometimes more than one patient has to share what was once a single bed room to realise the problems there. You only have to read the Northern Territory News which had an article in it a month or so back raising concerns that the staff there are getting ready to pursue industrial action. So, things are all not glowing in the area of mental health under Labor.
The minister makes comments often with regards to years of neglect under the CLP. May I warn her and her colleagues that every time they say that, various agencies - for example, I have here a submission and I am sure the minister has seen it, from the Northern Territory Carer’s Association. It is a discussion paper prepared for distribution to all NT political parties as this very capable group get ready to lobby, and they are obviously doing it now in the hope that we will all develop policies that affect carers in a positive manner. We have had Labor in government for three years and to quote from this document: ‘The funding for carer related supports and services in the Northern Territory by the Northern Territory government is, and has been, shameful’. Is and has been shameful. So, you are not that covered in glory, minister. That is your neck of the woods, member for Arafura.
I now turn to the Minister for Health and needless to say given what has transpired in the budget over the last couple of days he is going to get the majority of my time here tonight. Members will be aware that in the 2003-04 Budget Paper No 3 on page 193, the estimate of funding for the Department of Health and Community Services was $561m. Under 12 months later, this week, we have provided to us Budget Paper No 3 for the 2004-05 Budget. The estimate of spending for the current financial year, 2003-04, is now $612m. The difference between one book, what they budgeted for, and the other book, the estimate of spending for the Department of Health and Community Services, has shot up $50m. This is a significant funding increase. In fact, it is 9% of the total budget. In Budget Paper No 3 for this year, there is no explanation, there is no variation. Often when a budget comes down, you have explanations as to why significant funding changes have occurred. This time, nothing. Obviously, the hope is that we will not notice. Well, I am sorry. We have noticed this issue and it is a particular concern.
When the Labor government people go out crowing about increased spending in the area of health, obviously the aim is to impress Territorians into thinking: ‘That is great. We have more money, ergo we have more services and ergo our problems in health are decreasing’. It is a good thing to increase funding in health. I have no problem with increasing funding in health. What I have a problem with is the fact that this government cannot predict massive increases in their health spending. That is the problem: the fact you are unable to manage a budget. You should be able to predict what you are going to need spending in. You should be able to organise your budget 12 months before the spending needs to be done in these huge amounts of money because you have an obligation to Territorians and you have an obligation to Australians whose taxes pay for this.
In February, we had the Treasurer’s Mid-Year Report. Three months ago, it was published and delivered here. On page 26 of that report, the Department of Health and Community Services budget was on track to be overspent by $6m. Three months ago, we were told that by the end of this financial year, community services and health would be overspent by $6m. All things considered, that is probably not too bad.
However, here we are, three months later, and we are told that by the end of June, the blow-out is $50m. You have to wonder what on earth has gone wrong here. Why could they not ‘fess up in February that they were heading for a $50m blow-out? It was going to come out in some point in time, so why not ‘fess up? Was the reason that they did not know? If they did not know, why did they not know? Why did the department not know? Why did Treasury not know and why did the minister not know?
We need to find out what has happened here. If the Treasurer is going to give us a response at the end of this debate, I would welcome some detail as to what went wrong. It was hinted at yesterday but we definitely heard today in Question Time from the Treasurer when I asked questions in this area that the inference was that this is not a blow-out because Cabinet said: ‘Okay, you can have the money’. That was it. The spin on it was that in February you were only going to be blown out by $6m. Since then, you have obviously put to Cabinet requests for another $44m and because Cabinet said yes every time, it is not a blow-out.
Obviously, the discussion that was held behind the scenes was: ‘Heck, we are in a lot of trouble. The last thing we need is the CLP coming out swinging, saying we have blown the budget by $50m. We are going to have to spend this money. There is nothing we can do about it, so you better sign off. When we go into parliament and when they pick up on it, the spin we will give it’ – and this probably took half an hour to figure out – ‘is that because Cabinet said it was okay, then it is not a budget blow-out. We could not possibly have predicted it in February’. Suddenly, every week in Cabinet, they must have been ticking off $5m to $10m extra for health. It must have been exhausting. The fear of being able to have anyone say that they blew a budget was obviously horrific because we know the minute that Labor was elected three years ago, the two things they had to do were: one, convince Territorians that they could manage money and, two, convince Territorians that crime has got better under Labor. They know that these are the two strong areas of the CLP over many years. So, now, whatever they do, they have to spin things rather than tell people the truth.
Yesterday, the Treasurer claimed the $50m blow-out was caused by two things. The first was the increased funding for child protection. This increase in funding was announced in December last year, and given the problems that are in this area of child protection, I certainly applaud that the government said that they were going to increase funding, services and resources into child protection. I have a document here, which I seek leave to table.
Leave granted.
Ms CARTER: I am pretty sure that this document was given to me at a briefing that I had from the minister’s office some time ago. In the document, it sets out how the extra $50m-odd that is going to be overspent in the years to come is going to be divvied up. For this financial year, that document tells us that child protection is going to get an extra $3.8m. Well that goes a little way into our $50m overspend. And that is because, in February, we were told it was a $6m overspend coming our way. That is basically two-thirds of that $6m. The other reason we were given for an increase in the blow-out to $50m was the wages for doctors and nurses. Quite frankly, this government knew full well that during this financial year there would be an EBA for nurses and an EBA for doctors negotiated. On top of that, their election promise three years ago was to increase nurses’ wages by 15%. And they have gone a good way in doing that. By using your maths, at the start of this financial year, the government must have known that they were going to have an EBA, and that they were probably going to be increasing wages in the vicinity of 3% to 4%. It was not rocket science, so surely that was factored into the budget for this year. It is startling to think that that was given as an excuse as to why there has been a budget blow-out.
There has been a budget blow-out in the area of employee expenses. In the 2003-04 budget, the government had employee expenses, wages, at $289.6m. We find out this week, in our new budget books, that employee expenses will come in at $307m. This is a blow-out of $18m over 12 months in wages for one department, which is far more substantial than the $3.8m for child protection, but not considered worthy yesterday for the Treasurer to use as one of the reasons, one of the big contributors, towards the $50m blow-out. It will be very interesting during the Estimates Committee to get an open and accountable - we are always appreciative of that, aren’t we, member for Katherine? – an open and accountable report from the minister as to where this extra, unplanned $18m went.
In particular, I will be seeking a breakdown which shows how the expenditure in areas of the department’s executive has gone over the past few years. Also, the amount spent on overtime and agency nursing hours, because I am reliably informed this week that, at Royal Darwin Hospital, patient occupation of the wards is running at 110%. That means that, on any given day, every single bed in the hospital is full, and several beds turn over several times during the day, that is where you get 110% patient occupancy from. At the same time, staffing is held at 85% of staffing levels. The reason why a place like Royal Darwin Hospital does that with their staffing is because it saves money and it means that the staff can cope on these busy days because, on the off-chance that we do not have full wards, it then means we are not overstaffed. I am reliably informed by people who are not happy campers that we are currently running at 110% occupancy of the beds and staffing at 85%. In other words, things are flat out there.
Management, of course, are reporting that we are fully staffed, we have no problems, and we have no vacancies. I am aware of nurses who are approaching Royal Darwin Hospital seeking jobs and being told: ‘No, no, no, we do not have any vacancies at the moment’. Therefore, I ask given that: why is it that this year 55 000 hours extra has been worked by nurses in the hospital? These are either agency nurses or overtime shifts at Royal Darwin Hospital. Where will this have shown up in the budget? In the $18m blow-out for wages is where it has shown up. It is going to be very interesting during the estimates process to explore some of these issues. As I said, $50m is a huge blow-out over what was budgeted for 12 months ago. I do not know of any larger blow-out in Territory government history. Quite frankly, it is nearly half of the famous black hole. I ask our ministers: is this okay? Are you concerned? If so, what are you going to do? Does having two ministers now for this one department mean that two people have a credit card and they can just spend willy-nilly?
I know that both these ministers are good and nice people, and perhaps they just find it very difficult to say no. Between the pair of them, they have come up with a $50m blow-out. Even though both of them have only been in the job for six months, looking at the February mid-year report the budget for the department was running reasonably well. It is only since the arrival of the two new kids on the block that things have gone haywire - spectacularly haywire.
When Labor was elected, the Chief Minister said she would sack CEOs who did not come in on budget. We really have to ask: does this mean that the current CEO is packing his bags? Today in parliament, we had a discussion - quite constructive I thought it was - with regards to the current CEO who has put an e-mail out to the department on the same day that the budget was delivered telling the department staff - and I know this e-mail goes out everywhere – that for the first time in 10 years the department has come in on budget. As far as I am concerned, this is somewhat a stretch of the truth. It is something that is going to need to be explored during the estimates process because, quite frankly, this little trick of going to Cabinet and getting a tick-off on everything just so that, when it comes time for budget scrutiny and you guys are $50m over, you will be able to say: ‘Oh no, Cabinet ticked that off’. Really, you are trying to pull the wool over everybody’s eyes.
I know you do this routinely and across the board in all areas. It is like saying the economy is going gangbusters and everything is fine. You only have to walk up that mall, as the member for Katherine and I did today at lunchtime, and speak to people in the mall about business in the Territory. All we get, constantly, is: ‘What the heck is going on?’ You guys might like to go on and on and try to pull the wool over everybody’s eyes on these things, but the truth does out, and it will out in this instance.
Of course, we get the glowing claims that extra money has gone into the budget, and we certainly look forward to seeing how that pans out over the next 12 months. For example, I have some concerns here with the extra money. ‘Record health budget’. Well, of course, it is going to be a record health budget because every year the government tacks on CPI and there you usually have your budget, quite frankly. I cannot image any year where the total for a health budget went down. This year, you guys have given Health and Community Services an increase of $23m between this year and the next. That is an increase of 3.76%. It barely covers normal CPI, let alone the health CPI which members will be aware, particularly our two ministers and the Treasurer, runs at about 7% per annum as per the Australian Bureau of Statistics. You people have only allowed for an increase of about 50% of what was really needed in the increase for this department to continue spending the way it has been and come in on budget.
I guess this time next year it will be same story being coughed up: ‘Oh well, we had a stab in the dark and we came up with a budget figure last year but every time one of our two lovely ministers wanted a little bit extra, they just came to Cabinet and Cabinet ticked it off. Heaven’s above, the last thing we want to do is go to an election year looking dodgy in any way in our budget bean counting’.
I am predicting big trouble. You have not increased this budget in an adequate sense. It is not going to cover health CPI because of the way staffing costs and equipment costs go up. These are the things behind why health runs at such a high CPI each year. I am predicting big trouble for you guys. I suspect in 12 months time we are going to see a Department of Health and Community Services spend in the vicinity of $700m. That is my prediction. For this year, that is the sort of money that you guys are going to end up spending in health. The question will be: what will we see for it? What extra will we see for that extra money? How will the health of Territorians be improved? We will be looking to see that.
What also happens in these budget machinations is that the government tries to rein in spending. The department does try to rein it in. One of the more cynical ways that the government has done this since they came to term is one of their famous election promises to build a hospice. They made much mileage out of this. It is one thing to say, ‘We are going to build a water garden or build some correctional services or even build a convention centre,’ all to be applauded. But to say that you are going to build a hospice and then not build it is cruelty in the extreme. Every year for the past three years, every single Labor budget book that has come in here has said ‘hospice at Royal Darwin Hospital - $3m’. Here we are, three years down the track and if I wandered into Royal Darwin Hospital, what will I see? A car park; the Menzies car park where the famous hospice one day will sit. So it should not be surprising to members on the opposite side that people get a bit cynical in the system as to whether this money will actually ever be spent.
One of your advisors would be pretty disappointed at the moment - Mr Nieuwenhoven used to be the secretary of the Australian Nursing Federation up here. I remember when he launched a significant campaign with the nurses to get something done about the incinerator at Royal Darwin Hospital. That was allocated $2m in the budget book by Labor for 2002-03. That just completely disappeared. We have not heard much about that. In what was meant to have been spent this year, for example, we have had significant spending in Alice Springs hospital - fire protection – no sign of that; Yuendumu Health Clinic, $2m, no sign of that; Milikapiti Health Clinic, no sign of that. What happens is that each year the government rounds it all up into a package and moves it onto the next year and describes it as a revote: ‘We are going to take these funds, we never spent them, we spent them on something else, no doubt nurses wages. We are going to take that sort of concept and we will do it next year. We will just move it along. Hospice, hospice, hospice, hospice.’ For example, these revotes.
You will notice that in this budget book the revote for health totals $16m and for things that have been moved and moved and moved and the new capital works totals $8m. Two thirds of the money has not been spent in the past and it is coming over this year and one third of the money goes to new things. Constantly we get a cynicism out there that you might say you are going to build a birthing suite for example, it will be interesting to see what that looks like in 12 months time. Chances are: not much. A radiation oncology unit fell off the board fairly early in the Labor term. Some people have some cynicism and this is how the department reins in costs in an effort to try to come in on budget. Obviously, they just did not get Cabinet approval for those things.
It was disappointing in the budget to see that 25% of funding has been cut to non-government organisations providing services in the area of alcohol and other services, given the concern that we have in this community for the problems caused by alcohol and other drugs. It would have been great if this government could have seen its way clear to build an alcohol rehab service, a residential service, for the people of Alice Springs being promoted by the people from Green Gates, a service available for all Alice Springs people and people from the area not like the Aboriginal services which are exclusive in those areas. It was disappointing to see a cut in this area; it is an area that should have received more money.
Lost in the budget, of course, was the re-opening of the rehabilitation ward at Royal Darwin Hospital. I know it is a thing I go on about, but those eight beds are sorely missed. Robyne Burridge was on the radio last week representing the disability services area and the consumer services for people with the disability. She was terribly disappointed that the rehab unit is going to stay shut and I concur with her views.
One of their other tricks is to put promises on hold. Labor puts promises on hold. A classic example happening at the moment, I have been advised, is that at Alice Springs Hospital, management have been told not to start spending that famous extra $2m until October. This is the $2m to increase services in the intensive care and high dependency areas. ‘Don’t start doing anything until October’ is the message to them. ‘Wait a good five or six months, then you can pop an ad in the paper for some extra staff and we might put someone on by late February’, which means that of that $2m, hardly any has been spent. That is always a good strategy to avoid actually spending any money.
It reminds me of the year 2002-03 when Labor promised $2.3m for an extra 25 child health positions out bush, primarily to be nursing positions. I can tell you: the people promoting that within the department just pulled their hair out of their heads. They worked hard in developing job descriptions, they had everything ready to do the advertising campaigns and, no, it was all put on hold. Nothing happened. I would be very surprised if there are many of those extra 25 positions on the ground as we speak today. That was another ploy: make the big promo in the press, get the newspaper clippings, aren’t we great helping out Territorians, particularly the disadvantaged out bush? What happens in the end? Nothing. A good little strategy.
There are many issues with the Department of Health and Community Services. We have estimates to look forward to. Members will be aware of how incredibly disappointed I am at the extraordinary lack of opportunity that the opposition has to ask questions in this vital area. I do not know how it is going to work now that we have two ministers, but it will be interesting to see how it goes.
The issues that we are going to have to look at are the spectacular budget blow-out and to explore what the heck went on there. I am quite sure that the Treasurer has his toecutters from Treasury wandering the corridors of the Department of Health and Community Services, trying to find out what the heck went on. It will be interesting to see if they can in any way rein in their spending during this 12 months. As I say, I doubt it and, given the fact that they have barely touched on normal CPI, let alone health CPI, I wonder how close they will get to my estimate of departmental spending for this year to be $700m. If you do spend $700m, I hope we get some good bang for our buck out there.
The government will continue to be tricky in its implementation of this budget, delaying spending, revoting capital works. I will be looking forward, in 12 months time, to tour the new birthing centre to see how that is going and the refurbishment of the maternity ward, something that I agree needs to be done.
What is disappointing about this budget is that it lacks vision. It does not address the key issues of bed blocks for general beds in our public hospitals, particularly Royal Darwin Hospital and Alice Springs Hospital. Sure, there are extra intensive care beds and things like that, but what about general ward patients? These are the people waiting days on trolleys in our emergency departments for a comfortable bed on a ward where they actually turn the lights off at night.
The other thing it does not do is promote our community health services. Hospital in the Home is an area which should be increased so that we can prevent people going into hospital beds and care for people in their homes. Community health desperately needs more funding and resources to prevent people having to go into hospitals. The other thing it does not do is address industrial problems. Royal Darwin Hospital is brewing for an industrial dispute in the next month or so. Workloads are horrendous and this government has done nothing to deal with that problem.
Mr VATSKALIS (Mines and Energy): Mr Acting Deputy Acting Speaker, it is great to be here tody to speak about the 2004-05 Budget. It is not me as a member of this government who will praise that budget; praise has been received from different sectors in our community, namely, the Chamber of Commerce and the business community, the property groups and many others who have seen this budget as a pro-business budget. Somebody mentioned that it was a business-friendly budget, and certainly it is. It is a budget that caters for Territorians, for the small businesses, and we are the first to acknowledge that there were some hard times in the past few years, even before the change of government. Business in the Territory suffered, the construction sector suffered, there was a downturn in the economy of the Territory, and we now see it improving, crawling back to what it was before. This budget is going to boost the economy, it is going to boost the economic activity, help small business, help the construction sector and generally provide some certainty for a bright future for Territorians
This budget is good for Territorians. Speaking as a local member, I am very pleased that this budget caters for the people in my electorate. First of all, it caters for the people in my electorate because, according to the statistics, a significant number of people in my electorate are people with small businesses, people employed in small businesses, and a significant number in my electorate are people employed in the construction industry. This budget has good news for small business, but also for the construction industry. Especially with the urban renewal, the housing renewal, the spending in housing, in remote communities, in spending in housing to house public servants, to upgrade the existing houses and to build brand new houses. This means a lot of work for contractors, a lot of work of sub-contractors will flow down to the labourers who work in the NT building construction sector.
Also, for bigger business, with the Darwin City Waterfront redevelopment, and the oil pipeline and associated equipment at East Arm Wharf, the boat loading facility at Darwin Port Corporation, means big money for our big businesses. That, in turn, will help smaller contractors in the Territory. It will provide the bulk of the services, the bulk of the equipment.
The 2004-05 Budget delivers less tax, more jobs and great lifestyle. A record infrastructure program of $441m means more jobs and opportunities for Territorians, but also means providing the vital infrastructure for the Territory, and that is not only the Top End and Darwin, but also throughout the Territory.
The capital works program of $279m is especially important for my electorate of Casuarina, as I said before, because it will produce work in essential projects for my constituents, including the $1m upgrade of Alawa Primary School, and $1m for the upgrade of Nakara Primary School. These schools were built 30 to 35 years ago, and since then have never had a major refurbishment, never had a major upgrade and they look really old and tired. This money will go to a good cause; it will be used to help improve the condition of the schools, and certainly will improve the teaching and education environment for our children. At the same time, it will provide quite a bit of work for the local contractors in the area.
Less tax is also important for Territorians. Business will benefit from the payroll tax general exemption, which will increase from $600 000 to $800 000 in the new financial year, and eventually rising to $1m on July 1 2005.
Our unique Territory lifestyle is what makes living here so special. Recognising this, the Martin government will fund a range of great initiatives into 2004-05, with a couple of projects in the northern suburbs and outer Darwin, including the headworks for a Darwin soccer stadium and improvement works at Hidden Valley Raceway.
A record $635m Health budget will ensure Territorians will have the best options for their families, with many improvements to the quality of services throughout the Territory. Again, for my electorate of Casuarina there are a few key items, including the birth centre and the hospice for the Royal Darwin Hospital, and a lift for disabled access to Casuarina Senior College.
Returning to my portfolios, it gives me great pleasure to outline the budget initiatives for my portfolios of Primary Industry and Fisheries, Mines and Energy - both within the Department of Business, Industry and Resource Development – and, of course, the Office of Ethnic Affairs. The Ministry for Primary Industry and Fisheries, together with Mines and Energy, are responsible for delivering programs and services relating to sustainable resource development across the Territory and, because of their very nature, often in our remote and regional areas as well. The NT boasts one of the most diverse multicultural communities in Australia, and these multicultural communities have not been forgotten in this budget.
The Fisheries Group works in partnership with stakeholders to facilitate a sustainable development of our aquaculture industry and fisheries, and aquatic resources. The great work and world-leading science of the Fisheries Group is acknowledged with our major fisheries afforded the highest level of sustainability under the Commonwealth government’s Environmental Protection and Biodiversity Conservation Act. The budget contains an additional $436 000. We recognised that fishing and aquaculture holds significant potential for the social and economic benefit for indigenous people. Specifically, this money will facilitate the on-site involvement and training of indigenous people in their communities to maximise opportunities for local employment.
Already, the department has helped with the first trials of sponge aquaculture at the communities of Goulburn Island and Maningrida. This is something really funny. Here in Darwin, the majority of the Greek population come from the island of Kalymnos, where major employment was actually sponge diving. Here we are, many years later after we brought the first sponge divers to Australia to dive for pearls in the Northern Territory, establishing the first sponge aquaculture to improve the conditions and the economic condition of the indigenous communities.
In addition, funding till facilitate the supply of ‘crablets’ to indigenous regional communities such as the Gwalwa Daraniki Association, to enable it to establish and maintain a mud crab aquaculture business.
I also commend the Fisheries Group for the Certificate of Commendation at last year’s Commissioner’s Awards for Equity and Diversity. This was awarded for the indigenous fisheries apprenticeship program which was implemented in 2003. As well, some funding is provided for the indigenous community marine ranger program that, to date, has employed 18 rangers. This includes five rangers employed by the Bawinanga Aboriginal Corporation through the Djelk ranger program, and eight rangers with the Thamarrurr ranger program at Wadeye.
$1.403m will be used to develop aquaculture opportunities in the Territory, in addition to supporting the establishment of a commercial marine finfish hatchery which supplies the land barramundi farm at Port Hurd on Bathurst Island. The aquaculture program has substantially supported the ongoing development of barramundi, prawn and pearl farming in the Northern Territory, and is now undertaking work on the commercialisation of mud crab, trepang and sponge aquaculture.
As you are no doubt aware, the Darwin Aquaculture Centre spawns and rears barramundi fingerlings for commercial fish farms, often with a surplus of fish between 50 mm and 100 mm. Many of these surplus fish have been stocked in Manton Dam, and negotiations are currently under way to stock Lake Bennett and the disused water supply dam at Mt Todd near Pine Creek.
Last year, the government provided $620 000 to establish a new level of bio-security for marine aquaculture research facilities in Australia, and aids in the protection of Darwin Harbour and its flora and fauna.
$100 000 has been earmarked for a review of the Fisheries Act, in consultation with indigenous, commercial, recreational and community requirements for the future of fishing in the Northern Territory. This legislation will be reviewed in consultation with all fisheries stakeholders.
The Fisheries Group continues to work closely with the barramundi industry and other stakeholders to revise the current management arrangements for the commercial barramundi fishery. $50 000 has been earmarked for this purpose. This will include a 10-year resource sharing plan. The Northern Territory has been very successful in achieving accreditation from the Commonwealth Department of Environment and Heritage for exports for our major fisheries. In the Northern Territory, the barramundi and aquarium fisheries are the final two fisheries that require accreditation, and $35 000 has been allocated to ensure that the deadline is met.
The Northern Territory government continues its support for the NT Seafood Council with a grant of $175 000 which has been derived from fishing licence revenue. Following public submissions, upgraded security at the Buffalo Creek boat ramp and extending the Dinah Beach boat ramp were identified as priorities. These works are currently under way and will be completed in the next few months.
Other initiatives to honour our commitment of $1.5m to improve the recreational fishing infrastructure include new ramps at Borroloola and Mule Creek providing a greater access to McArthur River, improvements to the Palmerston boat ramp and land based anglers through the platform or other facility at the Elizabeth River bridge in consultation with the Palmerston City Council.
In March, the Fisheries Group recruited two new officers for a one year period. These officers have been tasked with the management, development and promotion of recreational fishing in the Northern Territory. Riverwatch, a joint community and Fisheries Group initiative, has seen the establishment of information centres on the Daly, Mary and McArthur River systems. A further $50 000 has been earmarked to ensure similar centres planned for the Roper and Victoria River systems are established in the coming year.
The budget also has $170 000 to support the Amateur Fishermen’s Association of the Northern Territory which includes $10 000 for fishing club grants. Together, the Fisheries Groups and AFANT have negotiated a series of outcomes as part of AFANT’s budget preparation for 2004-05. These outcomes include management of angler data collection programs on the Victoria, Roper, Adelaide and McArthur Rivers; implementation of the Tiwi Islands fishing access permit system; representation on a range of fishery advisory committees; management of the government’s funding grant program for fishing clubs and associations; and assistance with the negotiation and establishment of fishing access agreements.
A Land Access Working Group works with relevant land councils and pastoral lease holders to increase recreational fishing access opportunities in the Northern Territory. The group has now a dedicated officer and $150 000 has been earmarked to allow significant progress of this initiative during 2004-05.
The Northern Territory government has committed over $22m to be spent in support of Northern Territory Primary Industry programs during 2004-05 financial year. Primary Industry staff of the department continue working with, and revising, sectoral plans for its primary industry under the Northern Territory government’s Economic Development Strategy. The sectoral plans ensure industry growth that is sustainable and best practice. Northern Territory primary industry comprises cattle and other livestock including buffalo, crocodiles, poultry, pigs and camels; horticulture including fruit, vegetables, nursery and cut flowers; and cropping including peanuts, field crops, hay and seed. The current estimated gross value of production of these industries for 2002-03 in the Territory is $295m including $184m from the cattle industry, animal industries at $14m, food crops at $11m and horticulture at $86m.
Northern Territory primary industries employ an estimated 1900 people. Northern Territory programs for primary industries have a strong regional delivery focus: the agricultural mixed farming program is focussed in Katherine, Douglas Daly and Darwin area; horticulture is mostly in the Top End including Katherine, with some in Ti Tree and Alice Springs; pastoral programs support the export trade in the Darwin region and cattle production from Katherine through to Alice Springs; and resource protection services are located throughout the Territory with laboratory support provided from Darwin.
I now turn to some of the specific budget allocations for the Primary Industry: $1.3m has been earmarked for industry development support; $50 000 will be utilised to raise the profile of locally grown or produced food products throughout the Territory and through the Food Group initiative which has branches in Darwin and Alice Springs; the budget contains an additional $457 000 for delivery of programs that will help expand indigenous pastoral and horticultural enterprises on indigenous owned land; restore and expand employment opportunities for indigenous people in rural and remote areas by identifying training needs and coordinating the delivery of the training; and support the practical application of skills.
I am pleased to announce a recent staff addition to the Indigenous Pastoral Project with a dedicated officer now working from the Alice Springs Arid Zone Research Institute. Staff are also working with the horticultural industry and have developed and are working to a strategic plan that encourages the development through the management of knowledge, improved industry skills, and land, water and infrastructure availability.
The value of horticultural production in the Northern Territory, including nursery and cut flowers, for 2003-04 is estimated to be $85.6m. In this budget, $2.9m has been earmarked for research, expansion and development programs across our horticultural industry. This program will focus on continued work on our research stations to create an effective partnership with the horticultural industry and organisations that I mentioned earlier today, developing new products or varieties, developing and testing production technologies, providing support to achieve best practice supply chain management, and packaging and distributing horticultural information.
Work will also continue with the mango industry on improving management of the through-chain from the farm gate to the retailer. As such, $3.4m will be used to maintain the programs of grower accreditation and certification assurance, the management and/or eradication of plant pests and diseases, and the provision of laboratory services. $900 000 will be used to support public health and environmentally-related water quality monitoring for arid and remote communities.
To ensure livestock health and market access for the Territory, this budget contains $4.3m to support ready access to all available domestic and export markets of Territory livestock, including cattle, camels and buffalo. This service will include veterinary laboratory services; animal disease control and emergency response programs; inspection treatment certification services to facilitate the sale of animals and animal products; and a collaborative program for the Charles Darwin University.
A further $4.9m will be used for targeted research, development and extension services to the pastoral industry, and maintaining services on the Territory’s research stations. $3.6m will go towards agricultural development programs to ensure in continued research, development and extension services to enhance and promote mixed farming development in the Northern Territory. These programs include intensive cattle and buffalo production from improved pastures; hay and seed production; dryland Wet Season crop production; irrigation production; Agroforestry production; and continued work on the Territory’s research farms.
The mining industry remains one of the most important industries in the Northern Territory, accounting for 23% of gross state product in 2002-03. The Minerals and Energy Group within the department is the principal Northern Territory government agency responsible for supporting and regulating the Territory’s mining and petroleum industries. The Minerals and Energy Group works to promote the development of the Territory’s mining and petroleum industries and regulates these industries to ensure good practice in health, safety and environmental management.
The Minerals and Energy Group has funding of over $20m for the 2004-05 financial year. The Northern Territory government’s Building the Territory’s Resource Base program focusses on enhancing the Territory’s geological prospectivity, but providing industry with high quality, low cost, new generation geoscientific data, information and ideas. $3.8m has been earmarked from the 2004-05 Budget for the second year of this four-year initiative.
The Geological Survey division has an allocation of $7.45m for this financial year. This division is responsible for:
· collecting, interpreting, synthesising and disseminating geoscientific data to attract and render more effective mineral and onshore and offshore petroleum exploration and enable geoscientists to focus on enhancing the Territory’s geological prospectivity and improve delivery of information to explorers; and
· presenting results to explorers at the Annual Geoscience Exploration Seminar, known as AGES. Preparations are currently under way to host the Central Australian Basins Symposium in Alice Springs in August 2005.
Under the capital works program, $360 000 has been allocated for the construction of a free standing, dedicated storage facility for mineralised drill core samples at the Winnellie depot in Darwin, which is managed by the Geological Survey division.
The Mining and Energy Services division, which incorporates the Group’s executive unit, has a budget of $7.1m. Of this, $897 000 will ensure the continued work by the Indigenous and Mining Industry Services unit to conduct information and training sessions with indigenous community councils and schools about the mineral and petroleum industries.
The Northern Territory government considers effective liaison with traditional owners about mineral and petroleum exploration is crucial to ensuring the benefits of exploration can be shared by all Territorians. With teams and officers now based in Darwin, Tennant Creek and Alice Springs, the department has enhanced its capacity to provide targeted services to the mining industry and regional indigenous communities.
The Northern Territory government has committed funding to continue the administration of renewable energy programs including the Commonwealth’s Renewable Remote Power Generation Program and Photovoltaic Rebate Program. Under the Renewable Energy Rebate Program implemented by the Northern Territory government, $38.2m of Commonwealth funding is available to provide remote power users with cash rebates of 50% to replace expensive diesel generation with renewable energy. It is anticipated that over $4m will be distributed under this program in the next financial year.
These rebates assist communities and remote pastoral properties to provide reliable power for 24 hours a day, and also provides cheaper power supplies to Territorians living in rural and remote locations. The projects supported to date represent a capital expenditure of $16m, representing $8m in rebates and $8m in owner contribution.
The Titles Division of the Minerals and Energy Group has a budget of $2.3m to continue its critical role of granting and maintaining mineral and petroleum titles in the Northern Territory. Specifically, the Titles Division facilitates valid legal access to Northern Territory mineral resources through processing applications for mineral and petroleum titles, and is working to build productive partnerships between the government, the mining and petroleum industries and Northern Territory land councils, which will facilitate access to land for exploration and mining.
This division is also undertaking the review of the Mining Act to ensure its timeliness and relevance as the legislative basis for the administration of mining tenure in the Northern Territory.
The Mines and Petroleum Management Division has been allocated a budget of $3.97m. This unit oversees the mining and petroleum industries to authorise, inspect, monitor and audit companies to ensure they operate safely, in accordance with best practice and minimum environmental impact.
The Territory government is committed to protecting the safety and health of those in the mining industry and, to ensure the industry plays its part in protecting the environment, new legislation was introduced in January 2002 being the Mining Management Act. The act is designed to encourage continuous improvement in health, safety and environmental management by mining operators in the Northern Territory. The act represented a significant change from the previous highly prescriptive legislation to objective-based regulation.
While traditional inspections and investigations continue to be undertaken by the government as regulator, there is an increased emphasis on auditing of mining operator’s management systems and their continued development and improvement under the Mining Management Act.
$250 000 has been earmarked to ensure the effective and efficient management of petroleum and mineral resources to ensure maximum benefit for the Northern Territory. Departmental specialists review mine management plans and development proposals for mining and petroleum operations. Where appropriate, approvals are made with any necessary conditions to ensure that the target resources are developed in a manner that maximises the potential benefit to the Northern Territory.
Last, but not least, I move to my Ethnic Affairs portfolio. It is my pleasure to highlight some of our support for the Territory’s migrant and ethnic community through my Ethnic Affairs portfolio. The Martin Labor government is implementing a wide range of initiatives to build a better Territory, not only on the economic, but also social and cultural fronts.
In 2002-03, as part of our support for multiculturalism, we increased funding for the Ethnic Affairs Sponsorship Program by more than 50% from the amounts voted by the previous CLP government. Today, the program has a total value of $697 000, and I am pleased to announce that the 2004-05 Budget maintains this level of funding. The budget allows us to continue with the initiatives taken by the Martin Labor government in connection with the Cultural and Linguistic Awards, valued at $150 000 per annum.
The 2004-05 Budget includes a number of exciting funding initiatives to ensure Territorians continue to promote, celebrate and share with one another our unique multicultural mix. The major initiative is the $500 00 per annum being provided by the Martin government for three years to assist migrant and ethnic communities to refurbish and upgrade their existing facilities. This new program recognises the importance that these facilities play in maintaining the great Territory lifestyle. It is expected that, as a result of making this grant for community facility improvements, ethnic communities will be able to provide better facilities, not only for their own community groups, but for the wider community.
It also recognises that some communities have limited ability to raise the funds required to make capital improvements to their facilities. Applications under the program will be invited in the new financial year. These new funds take the total financial assistance available to the migrant and ethnic community through the Office of Ethnic Affairs to $1.197m. In other words, 300% more than the amount of money that was available when we came to government.
The Martin government is committed to encourage and support those who have settled in the Territory from different countries to continue their cultural ties and traditions and share them with the wider community. We also support the Multicultural Council of the Northern Territory and the Multilingual Broadcasting Council of the Northern Territory to move to Malak Shopping Centre as part of the plans to develop a multicultural community centre. This move would see both organisations move closer to their client base, and provide additional facilities for the community.
In conclusion, yesterday I was amazed to hear some of the remarks made by the Leader of the Opposition in his budget response and I quote:
Madam Speaker, grandstands and soccer fields are well and good and add to the enviable lifestyle of those Territorians who are staying here but, apart from the initial construction phase do not add to the economic growth of the Territory. It is such things that make up a large part of this infrastructure spend, and almost 40% of it is not on new infrastructure anyway but repairs and maintenance.
Clearly, the Leader of Opposition is unable to relate the economic benefits that accrue to the Territory as a result of the upgrade to the Marrara Sports Complex and Traeger Park in Alice Springs, and the playing of the international test cricket that was played last year and, of course, more is coming this year. The reality is you do not always spend money to build and maintain the facilities to be utilised just for Territorians. These facilities also attract world famed international events like cricket and soccer. We are going to host an international Soccer Challenge for Under-18s. I recall very well a few years back when the Darwin Cubs were playing Singaporean and other South-East Asian Soccer teams. They were attracting many Territorians to the existing facilities, and also attracting interest from other countries. Quite apart from the economic benefit, there are the lifestyle benefits that these events will bring, that are so appreciated by all Territorians. If we do not have the infrastructure we are not going to get the events.
I suppose the Leader of the Opposition sees no benefits in the $500 000 that we have provided to upgrade the ethnic community facilities. He probably sees it as short-term construction work that brings no lasting benefits to Territorians. Unfortunately, he is wrong. By providing funds to upgrade the facilities increases the ability of the ethnic communities to promote a culture that provides benefits to all Territorians.
In closing, I must respond to some of the claims being made about Budget 2004. The opposition is supporting comments made publicly by their candidate in Nhulunbuy, Mr Manning, who is also the chair of a fishermen’s organisation, that the Fisheries budget has been cut by $500 000, and he gives the budget a score of zero out of 10. Quite simply, Mr Manning got it wrong again. The Fisheries budget in 2003-04 was $7.5m, and this year will be $9.3m. Any preschooler would tell you this is an increase - $7.6m to $9.3m. You have a clear increase of $1.7m. In the final estimate for 2003-04, this value includes the commercial barramundi licence buy-back that I announced earlier today, and the conclusion of an externally funded three-year research fund. Either the opposition is wrong or Mr Manning is wrong.
Madam Speaker, the budget delivers less tax, more jobs, and a great lifestyle for all Territorians and, quite rightly, the budget has received acclaimed praise from business groups, property groups, and all Territorians.
Dr BURNS (Transport and Infrastructure): Madam Speaker, the Northern Territory is entering a new era of social and economic growth. We are also on the threshold of further major developments across a wide spectrum. The government’s record infrastructure budget for the 2004-05 year will deliver more jobs for Territorians and will enhance our unique lifestyle that is envied throughout Australia. The record infrastructure budget will ensure Territorians receive the full benefits of economic growth. It balances economic growth with the promotion of our lifestyle and the protection of our environment.
The budget is constructed to ensure infrastructure is in the right place at the right time to deliver the right services to Territorians, and to support the growth of small business and our industry sectors. It also means a record budget for capital works, repairs and maintenance, and minor new works for the benefit of the construction industry and other sectors. It builds on the government’s long-term plans to put the Territory first, to maximise jobs and economic opportunities for Territorians, and to ensure that services are delivered effectively.
Infrastructure spending in the 2004-05 Budget builds on the historically high level allocated in the 2003-04 Budget. Total infrastructure expenditure for the 2004-05 Budget is $441m of which $274m or 62% is allocated for capital projects. Budget expenditure on repairs and maintenance is $167m for 2004-05. Power and Water Corporation capital works in the 2004-05 year is budgeted at $52m while $39m is budgeted for repairs and maintenance. The 2004-05 infrastructure budget provides for major expenditure on key projects that will stimulate the Territory’s economy and underpin our growth. In 2004-05, the Territory government will spend $6m on the Darwin City Waterfront Project to prepare the site and install the first phase of high voltage electrical distribution. This is the next step towards the $600m development of the Darwin Waterfront Project, a fantastic project for the Territory. The Darwin City Waterfront project will include a convention and exhibition centre, alfresco dining, residential areas, plenty of shaded space, boat moorings and a waterfront promenade. Darwin City Waterfront will put Darwin on the world map for conventions and be a draw card in its own right for other travellers.
The views of the community gathered from a series of forums and information sessions are being taken into account and will ensure that the final development reflects the history of the waterfront and is in harmony with its surrounds. The preferred development consortium from the short list of three will be announced in August with construction due to start in early 2005.
The 2004-05 Budget includes $2.5m to construct a new cruise ship terminal to provide improved facilities to cater for the increasing numbers of cruise ships visiting Darwin. Another boost to tourism and the local economy will come from the $38m project to seal and upgrade the Mereenie and West MacDonnell Loop Roads over the next three years which the Chief Minister announced recently. $10m has been allocated for the Mereenie and West MacDonnell Loop Roads in the 2004-05 Budget creating jobs and business opportunities while boosting the tourism industry. Another $4.5m has been allocated to complete stage 1 of sealing the Litchfield Loop Road.
Spending on infrastructure for our parks and reserves is also well supported in the 2004-05 Budget. $500 000 will be spent on the Gregory National Park in the Victoria River Gorge area to construct a boat ramp, toilet facilities, car park, and provide pedestrian access to the river. $575 000 will be spent on stage 1 of the Limmen National Park in the Gulf region. This expenditure will provide visitor facilities at the Southern Lost City, Butterfly Springs and the Towns River crossing. This will include camping areas, toilet facilities, park furniture, a viewing platform, a day use area and – I am sure the member for Casuarina will like this – a boat ramp.
$500 000 is allocated to further develop management of Leanyer Recreation Park. This provides for supervision by lifeguards and rangers, and maintenance and security of equipment. A further $1m will be spent on improving camping access, walking tracks and picnic facilities at national parks all across the Territory. These are just some of the works that are programmed for Territory parks and reserves in 2004-05.
The $52m capital expenditure by the Power and Water Corporation will provide for the government’s continuing program to underground electricity supplies in Darwin suburbs, thereby increasing the reliability of supplies in storms and protecting the infrastructure from cyclone damage. It is planned that the entire Nightcliff network will be underground by July 2005.
Major capital works are planned in the 2004-05 year to augment power generation in Alice Springs to meet continuing growth in the Alice. Works will also continue on the delivery of Power and Water Corporation’s $6.2m water re-use scheme in Alice Springs, another issue that the former CLP government failed to act on for decades. As Power and Water minister, I have taken a great interest in this. It is a great project and a great initiative by the Martin Labor government.
Expenditure on upgrades to water supply services at Ti Tree is budgeted at $1.3m. Major capital works are programmed for generation and switchyard facilities in Tennant Creek in 2004-05 to improve the reliability of supply. Growth in Darwin also requires further investment, estimated at some $8m to increase the reliability and security of the electricity supply in the CBD. Expenditure on the Territory-wide Sewer Relining Project is budgeted at $2.5m for 2004-05.
The government’s election commitment to deliver power to Dundee Beach will be met in 2004-05, with the spending of $5m to complete the 22 kilovolt line from the McMillans Substation to Dundee Beach. I will just digress here. This is a fantastic project. I have been lobbied by many residents of Dundee Beach, including the Mahoneys. I met with the Mahoneys and, basically, it has been very welcomed in the Dundee region. This is a government that sticks to its election commitments. We made an election commitment to put power at Dundee, something this crowd could never do in 27 years. I am hoping that it will be completed in the 2004-05 financial year and what a feather in the cap for this government.
Similarly, the 2004-05 Budget provides for extension of mains power along Wooliana Road, and the relocation and upgrade of the Nauiyu power station to supply the increased load. This is another service upgrade the CLP ignored for two decades. This service extension was another election commitment of the Martin Labor government. I am sure the member for Daly is listening to this. This is in his electorate. He could not deliver, but here is a government that promised and delivered. When I was at the Barra Nationals a couple of weeks ago, I spoke to a number of residents in the region and I gave them a little bit of a hint that there could be good news in this budget for the powerline along Wooliana. That will be a fantastic boost to the Daly region in infrastructure and tourism potential. It is going to attract a lot of investment into the Daly River, which is a fantastic region of the Territory, one which this government is safe guarding its future. We deliver on our commitments.
Environment and land tenure issues need to be resolved prior to finalising the design along Wooliana Road. The Nauiyu power station is prone to flooding and is difficult to access in the Wet Season. Relocating the power station is a component of a flood mitigation strategy for the region and will provide environmental benefits by moving it out of the floodplain.
The capital works program for the Port of Darwin totals $20m. This includes continuing works on security upgrades and cathodic protection of Stokes Hill Wharf. Major new works that are included in the 2004-05 program include:
· $2m for the construction of the new quarantine incinerator at East Arm. The site of the ageing incinerator is required for the Darwin waterfront development and the port’s major operations area, of course, is now located at East Arm;
· $10.3m is allocated for the installation of oil pipelines to enable fuel discharge at East Arm to service a new Darwin industry fuel terminal being constructed by Vopak Terminals in the Darwin Business Park at East Arm. This is another development that has happened under the auspices of this government. The previous government struggled with it; it has now become a reality and it is something we are very proud of. It is a fantastic project and it is going to have knock-on effects through the freeing-up of the land at Stuart Park and the Stuart Park tank farms. The Darwin industry fuel terminal is due to be commissioned in the second half of 2005, ultimately leading to the freeing-up of significant areas of inner Darwin land for redevelopment; and
· $7m is provided for the construction of bulk materials capability. The completion of the rail/port link has improved the economics of mining activity along the central rail corridor. Negotiations are progressing with one major exporter, and it is anticipated that bulk handling capacity is likely to be required at the port in the first half of 2005.
The 110 m extension of the common usage wharf, and the construction of the bulk liquids berth, is expected to be completed by September this year. The design of the oil transfer pipeline that will connect the bulk liquids berth to the joint industry fuel terminal is well advanced. The joint industry fuel terminal represents an investment in the Darwin Business Park of some $50m by Vopak Terminals. Total import and export trade through the Port of Darwin is expected to be close to one million tonnes in the current year.
Exports of live cattle in the current financial year have been restrained to some degree by the strengthening Australian dollar. This has been offset by an increase in rig tender tonnages. These tonnages will be up about 40 000 tonnes due to the level of activity associated with the Bayu-Undan development. The projected tonnages for 2004-05 are about 1.3 million tonnes. There will be substantial load-outs of armour rock for the gas pipeline in the coming financial year. These are expected to total about 360 000 tonnes.
I turn now to the operational areas in my Department of Infrastructure, Planning and Environment, and the excellent work undertaken by departmental officers across a whole range of services. The department is on track to achieve its operational budget for 2003-04. Based on current receipts and expenditure, revenue targets are likely to be achieved and expenditure will be within budget. The department is to be congratulated on achieving the budget targets and providing high standards of service to our community. All capital cash will be spent - and I hope the member for Brennan is listening to this - and all departmental repairs and maintenance will be fully spent for 2003-04.
As honourable members would be aware, the role of the Department of Infrastructure, Planning and Environment is to balance development with conservation. The biodiversity of our plants and animals is being threatened by a particularly destructive pest. I refer, of course, to the spread of Bufo marinus, also known as the cane toad. We have had some discussions in this place about the cane toad. The entry of the cane toad into the Northern Territory has the potential to threaten some of our native species. In 2003-04, $10 000 was provided to establish ‘ark’ environments on selected islands off our coast to conserve biodiversity and mitigate the extinction of species threatened by the spread of cane toads in the Territory. The funding will be used to, firstly, breed selected species in captivity; develop the capacity of island communities to stay toad free; help tour operators and freight owners to put procedures in place to keep islands free of cane toads; and lastly, help people identify and manage cane toads through an awareness program. As previously announced, the Northern Territory government has provided a further $420 000 over the next three years to be spent on research on long-term biological control methods and towards a secretariat for the proposed national taskforce.
As I announced last month, we will spend $390 000 to upgrade security on public transport. This will include installing security cameras in more than 80% of our public buses and on board the Darwin to Mandorah ferry service. Closed circuit monitoring systems at bus interchanges and lighting of key shelters will also be upgraded. As part of our new arrangements with contractors, our urban bus fleet will be upgraded with 13 new buses introduced in the next two years. The new buses will have the latest technology, low floor easy access, airconditioning and security cameras as standard, making our bus fleet one of the best bus fleets in Australia. By the end of 2005, 80% of our buses with have low floor access and 87% of all public buses will be airconditioned.
Our overall budget for public transport in 2004-05 is $228m, a boost of more than 10%. The budget includes provision for bus services to special events. In the interests of public safety and to encourage community participation, the government will fund special bus services to a number of events in 2004-05 including the Shell Touring Car Championships at Hidden Valley, the Royal Darwin Show, the Darwin Cup, the Arafura Games, and Starlight Specials on New Year’s Eve.
The 2004-05 Budget recognises the crucial role of volunteer fire fighters in communities across the Territory. The Volunteer Bushfire Brigades of the Bushfire Council of the Northern Territory has almost 300 active volunteer members who manage wildfires over 1.35 million square kilometres …
Mr Maley: You cut their budget.
Dr BURNS: What is that?
Mr Maley: You cut their budget, didn’t you – the Bushfires Council?
Dr BURNS: No, listen up, member for Goyder. … or nearly 99% of the Northern Territory. Clearly, this is a vital service to the community, and we are pleased to support our Volunteer Bushfire Brigades with additional ongoing grant funding of $260 000. So, member for Goyder, that is $260 000 extra. However, it does not stop there ...
Mr Burke: No, you just said ongoing. That holds no new money.
Dr BURNS: It is extra. We have extra money in there, recurrent funding for the Bushfire Brigades. I have just said it. The funds will help repair and replace firefighting vehicles and cover the purchase of personal protective equipment, and operational expenses. These additional funds will bring the total grants to be distributed to the volunteer brigades in 2004-05 to approximately $900 000. This builds on additional funding provided in 2003-04 to establish an Arnhem Land fire control region at an annual cost of $210 000, and an additional $150 000 provided in 2003-04 for individual protective clothing and equipment for all volunteers.
It is my pleasure to go out on an early Dry Season burn and get rigged up in all the protective gear that we supply to the firefighters. They were very pleased about and, as a trade-off, they let me light some of the fires and it was a lot of fun. I can show you a picture of it, and they said I did a very good job.
There is extra money in there for the volunteers for bushfires and also extra money for vehicles. That was one of the asks that they had of me when I first met with them when I first became minister - vehicle replacement. That will be increased and there will be some new vehicles on the block. In the next week or so we will be making some announcements about that.
In 2004-05, my Department of Infrastructure, Planning and Environment will participate in a collaborative research initiative that aims to improve understanding and community awareness of the role of fire and biodiversity management in northern Australia.
This government has taken action to protect the unique asset we have in Darwin Harbour. The Darwin Harbour Regional Plan of Management will guide the next five years of development, natural resource management, monitoring, and research. The plan will ensure that the harbour’s ecosystems remain protected and the harbour’s value as a recreational, cultural, commercial and scenic resource is maintained. Government has committed $365 000 to implement all of the priority actions identified in the plan for 2004-05, including the ongoing role of the Darwin Harbour Advisory Committee. This includes:
· $100 000 to develop and implement a stormwater management strategy;
· $55 000 to survey the harbour region to identify sites of significant cultural, spiritual and heritage value;
· $30 000 to develop an integrated environmental monitoring program for the harbour region;
· $30 000 to develop an inventory of the existing data management system and data sources for water quality, flora and fauna and other related data, and to evaluate the quality of existing data;
· $15 000 to identify and evaluate the significance of current gaps in scientific knowledge at an ecosystem level;
· $15 000 to develop a communication and education program; and
· $120 000 to support the role of the Darwin Harbour Advisory Committee, the Ecosystem Monitoring Group, the Ecosystem Research Group and the Indigenous Working Group and their related functions.
As honourable members would be aware, 2004 is the Year of the Built Environment. The aim is to raise awareness amongst all Australians who live, work and play in a built environment about the impact of buildings and structures and human landscapes on our lifestyle. The 2004-5 Budget includes funding for several initiatives to improve our urban environment, not least of which is our continuing support for urban enhancement initiatives across the Territory. $3m has been provided to undertake a variety of urban enhancement works and heritage trail projects in all major Northern Territory centres and some regional centres. These works include shopping centre upgrades, landscaping, town entry statements, walks, displays and tree planting.
In Alice Springs, the government will contribute $150 000 to an urban enhancement project on Leichhardt Terrace. The aim is to encourage greater use of the river bank by operators and patrons of the CBD with provision of wide walkways and landscape facilities including lighting, seating, shade structures and an area for shows and entertainment. This will be located on the river edge near Parsons Street with ready access into the CBD and shops.
This year will see more than six kilometres of bicycle and walking trails completed along the Todd River in Alice Springs. The trails will extend from the CBD to the Casino causeway, down South Terrace and back along the western bank following Barrett Drive, past the famous Olive Pink Reserve and along past Prickly Park and Sturt Terrace to Undoolya Road, and back to the CBD. The project’s final instalment of $150 000 was recently transferred to the Alice Springs Town Council along with the design and documents for tender to allow for the final stage to proceed this year. The total value of the project has been more than $450 000 over two years.
Five suburban shopping centres in Darwin will receive a facelift in 2004-05 through a project funded by the Northern Territory government in partnership with the Darwin City Council. The Martin Labor government will contribute the major portion of the funds for these upgrades with the Darwin City Council providing $200 000 and work supervision for the projects.
Katherine will soon have a unique three kilometre walking trail along the northern banks of the Katherine River from the old railway heritage bridge to the low level nature reserve. Sealed paths were completed before the 2003-04 Wet Season and work has now begun on the three bridges required to complete the project. All works are expected to be completed over the next few months bringing the total cost of the two year project to almost $525 000. Final works will include high quality interpretation signage along the length of the walking trail.
The government is in the process of appointing a Northern Territory government architect to mark the Year of the Built Environment in 2004. The government architect will have a pivotal role in providing leadership on the built environment, urban design and heritage. The architect will be an ambassador for Territory architecture and will encourage innovation and promote public art.
The Northern Territory government is making life easier for individuals and business by providing greater opportunity for on-line transactions and web-based payments. Within my own department, the 2004-05 Budget includes $250 000 so people can deal with Motor Vehicle Registry on-line or over the telephone. They can register their vehicles, renew their licences at their own convenience by paying by credit card or Bpay. Large private sector fleet operators will be able to renew their registrations in bulk, and licensed motor vehicle dealers will be able to register new vehicles and transfer ownership of used vehicles more easily.
For 2004-05, the government has allocated $50.7m cash expenditure on Northern Territory roads including the works for Mereenie, West MacDonnell and Litchfield loop roads. The total includes:
· $1m to upgrade and extend the seal on the Tanami Road and to improve access for mining, pastoral and tourism industry and remote communities;
· $1.3m to install traffic lights at Export Drive/Berrimah Road and duplicate Cochrane Street to enhance access from the Stuart Highway to the Port, the Darwin Business Park and the railway terminal facilities;
· $4.8m to fund the first stage of a project to improve access to Borroloola. This will include rehabilitating the Carpentaria Highway and the Wollogorang Road;
· $500 000 to improve drainage and partially seal the Oolloo, Fleming and Cadell Roads in the Douglas Daly region. These works will improve access and encourage and support economic development of livestock and agricultural industry in the region;
· $500 000 to gravel sections of the Dorisvale Road north west of Katherine. This will improve access for pastoral stations and communities, and reduce safety risk;
· $1.6m to complete the seal to Belyuen on the Cox Peninsula Road. This will improve access for the Belyuen, Mandorah and Wagait communities. Combined with the sealing of the Mereenie Loop, it also provides further opportunities for tourism development in the region. This is yet another project that the former CLP government ignored for two decades; and
· $1m to selectively gravel the Oenpelli link from Cahills Crossing to the Central Arnhem Road to meet the increasing demand by communities and tourists for improved Wet Season access to the area.
In total, $29.4m is provided for repairs and maintenance spending on Territory roads. In addition to this expenditure on Northern Territory roads, a further $37.4m will be spent on Commonwealth-funded national highways and programs.
This government has been lobbying hard to have the Commonwealth government address the underfunding the Territory suffers under the Commonwealth Roads to Recovery Program. The Northern Territory Cattlemen’s Association industry representatives have also been lobbying hard to address this anomaly in Commonwealth funding. It is on the record: we have 9000 km of roads outside council borders in unincorporated areas. We calculate we have been missing out on $20m over the four years of the Roads to Recovery Project. The Prime Minister has written to the Chief Minister and acknowledged this shortcoming. However, we are yet to see any real colour of money apart from $1m, a once-off, not built into our base funding over the next few years, by the Commonwealth. We will be pursuing that.
The 2004-05 Budget provides for record infrastructure expenditure. This is good for Territory business, good for contractors and especially good for jobs for Territorians. The budget provides funding for key initiatives, both in capital and operational areas, that deliver on the government’s long-term plans that put Territorians first. The budget delivers further funding for the implementation of the Martin Labor government’s election commitments to deliver sustainable growth while protecting our world famous environment and enhancing our unique lifestyle: less tax, more jobs, great lifestyle.
I know the member for Brennan will stand up soon and he will try to pick little bits and pieces, nitpick on the budget here and there, compare variations and say: ‘This is less then this’. I urge him to have a look at the capital grants section of the infrastructure spend. It all adds up. It is another record capital works expenditure, a lot more than you ever put into capital works. I will repeat again: in your last year of government, your revote exceeded your cash. Your revote exceeded your cash in your infrastructure spend. Take that on board.
We have been reducing the revote over years to manageable levels, we have been increasing the cash and the work is out there. We have had very favourable reaction to this budget from a whole range of areas. The only ones who seem to be carping and grumbling about it and trying to pull it to pieces are the opposition. Let them.
Madam Speaker, I am proud of this budget. I commend the Treasurer and the Treasury staff on the budget for 2004-05, a great budget delivered by a dynamic government. I look forward to implementing it over the next 12 months.
Mr BURKE (Brennan): Madam Speaker, it is interesting, minister, I was watching the clock and, apart from a few snippets of criticism of the CLP, there was three minutes to go when you went into personal abuse of me and all of a sudden the hand went straight to the one minute to go and went sweeping around. So someone up there, whoever it is, if you are working that clock, thank you. I only had to put up with one minute of personal abuse. Until that stage, I thought we were doing fine.
I was going to stand up and say: ‘I believe I could have a reasonable relationship with this minister’ because we have a big responsibility in the minister’s hands, handling the infrastructure spending for the Northern Territory. My responsibility is to ensure that that spending is done for the benefit of Territorians. If we could have a positive relationship in that regard, that is good and if I consider that maybe I could be stuck with a minister like the member for Sanderson, again, I just say to myself: ‘The world may not be perfect, but I am pretty happy with what I have’.
So I was going to be nice to you, minister, I was not going to pick holes in it or anything; I was going to be quite nice to you and constructive. But you could not help yourself. You slipped in a bit of personal abuse right at the end. Was that written in the speech, or not? It was unnecessary. Regarding the speech itself, I have sat here all afternoon waiting for you to speak so that maybe we could get some sort of debate based on what you would say. I know you have a lot to get over in your particular budget portfolio, but really, I could have read the whole lot in the budget papers. All you did was rattle off all of the stuff that is listed in the budget papers.
Dr Burns: Well, the volunteer bush fire people …
Mr BURKE: Well, maybe you just want to get it on the Hansard, I do not know. When it comes to debate, whoever wrote the speech, it must have been pretty easy. You just went to the infrastructure program and put ands and buts between everything. The speech did not give me anything that really said to me, now what does this minister really want to achieve in his portfolio? When he goes into Cabinet what does he argue for, for the benefit of Northern Territory? Where does his depth of heart and feelings come from, so that when he is up against these other ministers who are after their budget and their pieces of the pie, how is he going to really argue for different sectors of the Territory that he is responsible for, and how does that come through in the speech that he gives tonight? Of course, I saw none of that.
The other day, when you were talking about pharmaceutical stuff, you were at your best. I reckon, tell your staff to toss the speeches, get back to getting a bit of heart and get a feel for what we really have to achieve together for the Territory. That would be my advice to you, and that is not abusive, that is being constructive.
I went to a Ward Keller breakfast this morning, which was well attended, at the MGM Grand. There were a number of speakers there who spoke on the Northern Territory budget. We have heard every minister in this House so far chant the mantra that they have obviously been told, that this budget is good for jobs, good for lifestyle, this is business friendly, this is wonderful for the Territory, this will create jobs and every damn thing, and life would all be wonderful. One of the speakers today, when he gave his assessment of the budget, said: ‘The Northern Territory government has brought their budget down, so the operation has been successful; just be careful that the patient does not die’.
Having said that, he then went on to talk about the importance of government in growing the Northern Territory, and what the government has to do, in his opinion, to stimulate various sectors of the economy. One of the speakers spoke about how we can judge whether the economy is growing and, of course, as we have heard from the government that GSP is one indicator. The government uses GSP when it suits them, and if it does not suit them, they say, oh well, GSP should not be seen as an accurate economic indicator because it includes all of these offshore oil production facilities which can come on or go off and have create spikes in our economic activity. Of course, for overall economic predictions, the government is happy to use them when they suit.
The Treasurer said consumption is a better indicator of growth in the Northern Territory. Consumption is growing. It is starting to level off in fact, but it has been growing, ever so slightly, but growing. The Treasurer points to that as a very good indicator of growth. If there is more consumption in the Northern Territory, people are spending, everyone is happy, the economy is buoyant, businesses are making money, retail trade is going at a million miles an hour, and ‘Aren’t we great as a government?’
I was talking to a small business person just before I walked into the Chamber. She runs a very small business in the Northern Territory. This particular person did not see consumption as being a great advantage to her particular business. All she talked about was very skinny margins, very little profit at the end of the day. When I asked her what the payroll tax benefit means to her, she said, well nothing, because she does not have a business that fits into those payroll tax parameters. What she was struggling with was the national wage case increase, because that affected the five or six people who work in her particular business. If you go back to what the speaker said this morning at the Ward Keller brief about being careful that the patient does not die, the message fits very closely to what this small business person was saying to me. And that is: do not think that by saying we have lowered payroll tax by a certain amount that all of a sudden we have fixed the problems of business in the Northern Territory. If you think that, I know you will be wrong.
There is no doubt some benefit, and I applaud the government for giving relief in payroll tax to some businesses. Overdue, in our opinion, but certainly to be applauded. But it certainly is not a catch-all and a fix-all for all the businesses in the Northern Territory. There are businesses that are of a specific size that need tailored programs to deal with their particular issues, and those initiatives are not in the budget. Therefore, to say it is a business friendly budget - and because you get an endorsement from one luncheon at the Chamber of Commerce that everything is going swimmingly - is expecting too much.
In getting back to what I was saying regarding your speech, minister, I really wanted to see how you see yourself delivering your responsibilities in the Northern Territory. All of the programs that you said that there is money allocated to are good, and it is pleasing to see that many of them are progressing.
New money is being put into things like the Mereenie Loop Road. However, there is no need to say that the CLP could not do it over two decades; you know that the main reason the Mereenie Loop Road has been sealed is because of Yulara. Without Yulara, there would be no need to seal the Mereenie Loop. The major reason you want it sealed is because of the lobby from the operators of Yulara who want to move their own people from the places they own in Alice Springs to the Yulara Resort, and create that experience between the two resorts. It is a tourism issue and is an advantage. But you certainly cannot say it is an indictment of the CLP, when we built Yulara and made it into an icon tourism attraction in the Northern Territory and that, somehow, the ALP have come along and said: ‘Aren’t we wonderful, we are going to seal the Mereenie Loop?’. What I wanted to hear from you, minister, was how you see transport per se in the Northern Territory, and how you would see infrastructure being grown in the Northern Territory to support the whole of the transport industry.
One of the issues I know that is out there at the moment is with civil contractors. You can talk in this Chamber about the large amounts of money that you have in the capital works program - the same amount of money that was in the program last year, I might add - and what a great infrastructure budget it is. However, if you drill down on that infrastructure budget and you see where the money is being spent, it goes mainly to prime contractors on large contracts. Those prime contractors on large contracts do very well, thank you very much - things like the LNG plant, the extensions in the port, the Mereenie Loop Road and those sorts of large contracts do very well out of that increased spending, there is no doubt. However, when you drill down to the amount of money that is then available for programs like R and M, other road programs, other infrastructure programs, you really fall into that whole plethora of work done by civil contractors in the Northern Territory.
The civil contractors are not like the Chamber of Commerce; they do not have a strong association. They have just formed an association - and you should meet them - the Civil Contractors Association. There is only a very minimal secretarial staff; one part-time person. I understand they are trying to see you, minister, and you should see them. They are important because just the members of that association employ over 1000 workers in the Northern Territory, and all of those workers vote. Once they start getting their act together, they will start drilling down into your infrastructure program. The message they are telling me, wrong or right, needs to be addressed. They have the perception that the procurement process is not working well, that the changes that you made - that the minister for business stands up and says: ‘We have made improvements’. The procurement processes are not working at all – they see no improvement. Their feedback on government contracts is appalling. They tell me – and I have spoken to a number of them – that you used to know within a few days whether you were on the short list to get a contract. Now they tell me that you get buggerised around for weeks and weeks. Under some sort of transparent arrangement, you do not know whether you are on the short list, you are going to get the contract, or you are out of the game altogether. It costs them a lot of money and this stops them for putting in for other jobs. Under this so-called bureaucratic transparency in tendering, these people are going broke.
One civil contactor talked to me the other day. He has been out in places like Maningrida, bidding on contracts under some transparent process that the government has introduced, knowing full well that the contract is going to go to an Aboriginal organisation, because these people talk and they know what goes on. However, they cannot get anyone to give them the straight information. They sit around, they spend $6000 bidding for contracts in this case – only a very small businessman – and, at the end of the day, he knew he could not get it because the people bidding against him were an Aboriginal organisation that were not paying for fuel and they were not paying for the vehicles and plant that they were using. So he is dead, not even in the game.
That is the sort of stuff that is important to Territorians when you talk about how this infrastructure budget is being rolled out. It is not just ‘We have allocated such a quantum of money and won’t it be great’. It is not because you are putting out the same amount of money as you put out last year. As a government you must know that if the money you put out and claimed to have spent – and I cannot find where it has not been spent and I have a different issue with the detail of the budget - but if what you are putting out this year in cash is the same as you put out last year, it did not work. It certainly did not have the effect on organisations like civil contractors that you believed it has had. Your rhetoric in this Chamber is leading you to believe that somehow all of this is having a massive and positive effect for your government with small business. As I said, if you talk to that particular association, they will tell you it is not.
Transport - I want to see a minister who stands up and talks about transport per se. Your government is already behind the eight ball. I will give you a quote; this is from the Road Transport Industry which is pretty angry at the moment. This is not a problem with your government only. It started with mine because of the emphasis that was put on the railway. We talked about what the railway was going to do for infrastructure development, and safe and quick passage of goods in the Northern Territory. Of course, it will be a great success story, we hope, and it is essential infrastructure for the Territory.
However, along the way we had forgotten the importance of road transport to the Northern Territory. And that is their beef. Their beef is that this is an industry that has underpinned the economic growth and development of the Northern Territory since its inception. All of a sudden this railway has come along and they have been treated like somehow they need to be shunned. The classic is in an information bulletin from the ATA Association. I am sure you have seen this quote. The Chief Minister gave a speech in Melbourne on one of her promoting the Northern Territory trips, and was quoted in the Melbourne Age as saying:
There is benefit in transporting temperature controlled containers containing produce from New South Wales, South Australia and Victoria effortlessly through the desert to Darwin and from there to Asia. For Territorians who pay enormous freight penalties to bring in the most basic goods, a reduction in the cost of living is expected.
No cost of living reduction yet with the railway, that is for sure. However, this is the Chief Minister speaking to people about the Territory:
The biggest social benefit will be the removal from the Territory roads of the giant lumbering road trains. The road trains are a colourful part of Territory life and no one wants to see them go, but they are a danger, particularly for visitors to the Territory who are unaccustomed to negotiating traffic of such scale and are too frightened to overtake.
The ATA bulletin goes on to say:
These pieces of wisdom must have made the Victorians sit up and take notice, particularly when the Victorian government has been handed back a great part of their rail system at the same time. All Territorians, even the sceptics, hope that the railway will prove a success, even if it is for the sake of our pockets as taxpayers. But what about the road trains and the people who own and operate them? What about the remote communities? The remote mine sites? The towns not on the rail corridor? The fuel carrying road trains? Freight costs to these places will more than triple if there were no road trains!
Nah, Clare must have been misquoted or it may be the NT government and not we truckies who end up with egg on our face!
I quote that simply to say that is a major problem with the road transport industry at the moment. There is a perception that this railway is being subsidised by the NT government. Now, I know it is wrong.
Mr Henderson: Rubbish.
Mr BURKE: The minister for business says ‘Rubbish’. I know it is wrong. But if you read the Alice Springs News there was a major article that has created a perception. The fact that the railway is being subsidised was mentioned at a national ATA conference - I do not know whether you were there - probably attended by representatives of the industry; it was not a ministers’ conference. But it was raised at that conference nationally. The government needs to stand on that straight away because that perception is there in the industry now. First of all they are shunned. They are treated like black sheep. They are told they are a bloody danger to the public. They are told we want to get rid of road trains all together – and, by the way, they think we are subsidising the railway as well.
We should be now putting a particular effort into the road transport industry and doing everything we can to recognise the concerns and infrastructure effort that they require. The railway has had an enormous focus and all of that has been great, but that focus now needs to be also apportioned to the road transport industry and the concerns and issues that they have. They have major issues that need to be dealt with; not the least, minister, you would be aware I am sure, is their issue with the new national fatigue rules that could be introduced Australia-wide, fatigue rules that are totally inappropriate if agreed to at a national level. Our previous minister is nodding, so he is aware of it. They are fatigue rules about which I hope the NT government stands up for Territorians and does not agree to national standards that may be fine for a truck running between Sydney and Melbourne. In fact, as I was told, many of these rules were based on a modelling that was all about how long a truck would take to go from Sydney to Melbourne.
All of it is based on that modelling and we are happily falling into the lobby that is coming from that segment of the industry when we have a totally different environment including road trains carrying live cattle. Road trains carrying live cattle cannot be expected to move to fatigue management rules that are only appropriate for a lorry running the Sydney-Melbourne route. Those are the sorts of issues the road transport lobby wants the government to stand up and protect them and help them.
You say that you are going to put in road side stops for tourists. It is the first time a road side stop will have been put into a capital works budget as an addition on the Stuart Highway since this Labor government came to power. That is well overdue; fine and good.
The member for Braitling raised the issue that there is great confusion out there about the rights and responsibilities of road trains at road side stops as opposed to tourists. That confusion is there because I do not believe the government is putting sufficient effort into ensuring that the road side stops for tourists are appropriate and adequate, and the amenities for road trains, that integral part of our whole economy, is well and truly protected. So there is an issue that the government needs to tackle and tackle strongly. They are issues can help you put a real stamp on your portfolio, minister. You can be a champion for the transport industry in all of its modes. We seem to treat our industries in separate sectors. We have the Chief Minister talking for the railway, you are talking for buses and road trains, I do not know who speaks for ships. It is all about the port and the hub to Asia, but we need to talk about an integrated transport system for the Northern Territory - road, rail, air and sea. You need to be the spokesman for it. You need to be the champion for it. It needs to be totally integrated in terms of how the strategy for this whole economic driver is pulled together so that it is integrated in a modern, professional and inter-modal way.
These are the issues that I hope you tackle and take on board. Frankly, I was disappointed when I heard the Chief Minister talking about sealing the Mereenie Loop, and isn’t that great for tourism? I would rather hear the minister responsible for infrastructure driving all that sort of stuff because that will be fitting into the priorities that he sees in the whole of the integrated transport system in the Northern Territory.
Entrance Statements is another issue. It has been raised with me on many occasions that the Northern Territory is well and truly overdue to really do something about entrance statements to our towns and to the different points of entry to the Northern Territory. It is great that you are building a cruise ship terminal down there. It is great that it needs to be built and modernised, but I hope it is being modernised for our benefit and for the tourism industry and not primarily for the new security concerns with regards to cruise ships. The concept is something that the minister for infrastructure should well and truly be across, and developing, in line with the tourism minister, for every point of entry to the Northern Territory. Go to the sea point of entry, go to the airport of entry, go to the two major highway point of entries to the Northern Territory, and see what the visitor sees. Visitors see bugger all. It really is not a good look. You can go to many other places in the world that are beating us hands over feet. It is a very competitive environment to get people to, not only come to the Northern Territory, but to get a first impression that is positive and welcoming, and the information is there. We are eons behind in regard to proper entry statements to the Northern Territory through the different modes of entry, and to our major towns and cities. It is a government responsibility to drive and enhance those particular issues.
Turning now to the budget for a second, because I want you to know that I was not going to come in and nit pick the budget. There are a couple of issues in the budget that I do want to raise with you, minister. One of the problems with this budget is, if you look at the 2003-04 Budget, the budget is laid down, the 2003-04 outcome is revealed in the 2004-05 Budget, but there is nothing in the 2004-05 Budget that tells us where that outcome changed. We had to ask the Minister for Health, where has the blow-out come, and he stands up and says, ‘You dummies, read the budget papers’, but it is not in the budget papers. It might be decisions of Cabinet you have made, but it is not in the budget papers. You cannot see in those budget papers where a budget has been laid down, and the amounts that have driven that budget up to the outcome of that particular year are shown in the budget paper.
In the case of your budget, minister, if you look at the budget for the Department of Infrastructure, Planning and Environment for, as I read it, for 2003-04, the budget was $247m, and the estimate for the end of 2003-04 is $295m. That is clearly there in the budget paper. The difference in your budget outcome is $48m. The only thing I can find in the budget papers is $8m of that blow-out explained. And I only found that because it has been produced in this budget by saying those jobs have been done: Dundee Beach power was $3.8m, the Battery Hill Project was $0.28m, and the Darwin Waterfront monies that were allocated for one particular aspect was $4m had been expended. I can only find $8m of the blow-out, of what I would see in the budget papers of a blow-out of $48m in that particular budget.
It may be well and truly explained, but I cannot find it. If one then drills down on that particular budget, of the money that was allocated for your budget, the biggest expenditure blow-out was that you allocated $104m in the budget for Territory roads. However, if you look at the 2004-05 Budget outcome for 2003-04, Territory roads spent $125m. Now, you told me you have come in on target with all your spending that you set down in your cash program that was in the previous budget. You said all the cash money allocated has been spent. But there is a $125m difference just in Territory roads between what you allocated in the 2003-04 Budget and what has been the estimated outcomes for the 2003-04 Budget. I cannot find the reasons anywhere.
I will have to ask you these questions in Estimates Committee, but the point I am trying to make is, that if you look at your budget for 2003-04, in Lands, Planning, Development and Management, you were allocated $20.6m, you have spent $23m. Environment and Heritage is $1m difference, additional. Conservation and National Resources has gone from $73m to $86m. Transport, Policy and Planning, that is right, $31m, same amount, they came in on target. Infrastructure Development, $13m, has gone up to $26m, of that only $8m is accounted for in the Budget Papers. I do not want to dwell on it, but that is why the opposition insists, if you cannot explain in two sets of budget papers that you have received this much money in your budget, yet the estimate for the end of that financial year is so much. We know in the case of Health that the mid-year TAF report shows that, in spending to budget on Health, they were on track only three months ago. All of a sudden – poof, through the roof. If you read the 2003-04 budget estimate, the estimate bears no relationship to the actual allocations.
As I said, we will explore this in the estimates procedure, but it is something that needs to be corrected so that we can stop ourselves from wasting a lot of time in the Budget Papers in the future.
For your appropriation for the 2004-05 Budget, you have had, as I said, a change from $247m to $295m over 12 months. That is a $48m change, and that has not been explained. Yet, your overall budget, if you can compare your outcome of $134m for 2003-04, has been cut to $122m. Some of those cuts can be explained in the Budget Papers and some of them cannot.
In the capital works program, you said to me that you are on target, you have spent it all. I go back to the letter that I wrote to you. We can play games with who is right and who is wrong, but the reality is what you can do for me is this: you said on 31 March that you had spent $303m and you were on track to spend $434m. You have now said to me tonight that you have spent $434m – well, you have not spent $434m, you told me that you spent all your capital works budget. Is that right, minister? You are not listening. You can read the Hansard. If you have, I would like to know where you have spent – just in capital works – between 31 March and 30 June $122m to $226m, a $100m difference - and what you have spent it on. And the same in the repairs and maintenance, the capital grants spending and the PowerWater spending. In total, you had to spend about $120m-odd of $434m in seven weeks, and you had only managed to spend two-thirds of that in about 45 weeks.
It raises my suspicions that you have actually spent it, and that money has actually hit the ground. It may have been committed and the books might look right, but I go back to what I was saying before. If it has not hit the ground, it certainly has not hit to benefit Territorians, and it certainly has not hit for the benefit of those contractors that are out there. Therefore, when you tell them that you have put $434m in cash out there, they had better be able to track $434m in cash, otherwise all of that rhetoric means nothing at the end of the day.
My time is up. I will leave it at that for now. I will take up some of the other issues when I have more time. There are a few other issues I would like to mention, but I will do that another time.
Mr WOOD (Nelson): Madam Speaker, I would like to make a few comments on the budget. As I am not the shadow minister for anything, these comments will vary across the board.
Budgets are famous for being delivered in such a manner that everything in the budget presented by the Treasurer as always positive and the economy is bright and rosy. The opposition, of course, will at times try to show the budget in a bad light and then announce how they could do a better job. I would like to look at the budget the way I see it.
Certainly, there are some highlights although, in my own area, we seem to have fared better last year than this year. With announcements about the removal of the store sheds from the port to Freds Pass and the $150 000 grants for soccer fields at Freds Pass, I am not complaining that much. I must admit, though, listening to the member for Brennan, I am interested to see where those figures - that is the money for the removal of the store shed and the $150 000 - show up. If they are not in this year’s budget, then they should show up in last year’s budget.
Money allocated for Strauss Airstrip, $140 000, is certainly welcomed and I hope to see money allocated for protecting our World War II airstrips in the region. Howard Springs School and Taminmin High School have both received grants for shade over playground areas, and I welcome that. The announcement of the sealing of Litchfield Loop Road is an excellent initiative and will be a boost to tourism in the Berry Springs area. The government should also look at allocating some money in the next budget for joining Myra Road South, which is bituminised, to the Rum Jungle Road. Litchfield Council sealed it up to its boundary several years ago and if there can be a connection to Batchelor from there, that would also boost tourism.
The Police, Fire and Emergency building at Humpty Doo highlighted in last year’s budget has yet to develop. I will be waiting with bated breath for its commencement. I would also like to know what the financial savings were when it was moved from an unserviced site on Crown land to a privately owned site on serviced land. The budget shows an increase of nearly $600 000 from last year’s figure, so I am hoping someone can tell me why. Last year’s budget showed an amount of money for a bicycle path to Girraween Primary School, but due to technical issues about the land, there was a delay about the siting of the path. This was followed up by the Litchfield Council doing some work, which resulted in the money being withdrawn. Minister, the bike path issue has not been resolved to the satisfaction of the school council or me. I would hope that the government would leave that money in this year’s budget until we get an agreement with the council over a safe alignment for the bicycle path.
Presently, the council’s work was to widen Girraween Road over the creek crossing - which is extremely dangerous - near the school. There is no protection for children either from the traffic or from falling in the creek. I would like that money set aside from last year and we will look once again at the issue. It may be worth the department, the school council, Litchfield council and me getting together to see whether we can come up with a sensible arrangement.
There are a number of other issues which the government should consider funding in my area, but unfortunately, there seems to be nothing in the budget. For a long time, the government would have known about the project to try to seal the bicycle path from Palmerston at least down to the Arnhem Highway on the old railway line. Once again, there has not been any money set aside for that. We were also asking money for a landscape consultant to look at Coolalinga. I did receive a letter from you, minister, stating there had been some internal work done on a plan. Again, taking up what the member for Brennan said about entrance statements, that is exactly what needs to happen for Coolalinga.
Coolalinga is basically the first major town after Katherine that you hit on the highway. You certainly run into Pine Creek and Adelaide River, but Coolalinga is the main entrance statement for tourists arriving in Litchfield Shire. Yet it has signs all over the place, the water pipes are above the ground, and generally in the Dry Season it is pretty dusty and very unappealing. I am hoping that the government will not just say we have already prepared a plan – that they first go out and talk to businesses, the council, the local MLA and other interested people about what they believe should be the entrance statement for Coolalinga and we come up with a suitable design.
I notice also, minister, there is one thing that seems to be missing – and maybe the minister knows more about it than me, but where is the money for the intersection of Girraween Road and the Stuart Highway? The proposal by the department to re-align Girraween Road so that it comes in at the Henning Road/Stuart Highway intersection near Woolworths Coolalinga has been on the design plan for quite a while, yet there is nothing in this year’s budget. It is something that is needed badly because the present intersection of Girraween Road and the Stuart Highway, especially for people trying to cross over to the Woolworths side of the Stuart Highway, is dangerous.
As the budget said, Litchfield Shire is the second fastest growing in the Northern Territory and there is some major funding required to reflect that growth. When I hear the Minister for Central Australia talk about the amount of money for landscaping, and the Minister for Infrastructure, Planning and Environment talking about the amount of money also spent in Central Australia on bicycle paths, the rural area in Litchfield Shire with a population of 17 000 - the third highest population outside of Darwin - could certainly do with some assistance in that area, too. They are mainly the local issues, minister.
Looking at the bigger issues, many businesses will be pleased to see the changes to the payroll tax threshold. I was talking to a gentleman just before the budget was brought down who was concerned that if the threshold was not changed, all he knew was that he would not employ any more people. He believed that it did not encourage businesses to put on more people. Those changes will be most welcome. It was good to see the HIH levy go. That was certainly not a popular tax and I am glad that that went.
I believe many people will welcome the abolition of the debits tax, especially ordinary folk who have to pay that. I presume the debits tax is the one that you pay when you go the bank. Many people will see that as a great action by the government because it is something that hurt a lot of people, especially the little people.
While a lot of these tax changes are pleasing, I would like to ask something about taxes in general. The Treasurer might be able to answer this: if one of the factors in determining the amount of GST we receive from the Commonwealth is based on relativities, which is partly based on the amount of effort we are putting into raising taxes, and if we continue to lower taxes, and the opposition has also flagged lower taxes, would we in fact be putting at risk the amount of money we receive from the Commonwealth through GST revenue? On top of that, if the population stays steady or is in decline, that, too, will affect the relativities, which also could have a downward effect on our GST.
I would be interested to hear if the government has a plan to make sure our relativities are not reduced. I do not believe the government has any real plans in place to either hold people in the Territory or attract people, especially families. The one thing that government has not looked at is whether the conditions of employment are better than down south to the extent that it would attract people to come to the Territory instead of another state where the conditions were the same or better.
Minister, I have an article here. There was a Senate Select Committee in April this year looking at the building industry. There was a gentleman called Mr Cridland - not the Cridland we hear talking about property. This is a gentleman who runs a construction business company in Darwin. Senator Cook said to him:
So you’re drawing on 23 years experience in the industry when you answer the questions?
To which he answered yes. So Senator Cook said:
I’ll just ask this broad question: given that experience and background, is the way in which the industry operates in the Northern Territory a model for the rest of Australia?
Mr Cridland said:
No. In Sydney, the safety is a lot better, the conditions are a lot better, the money is a lot better and you have a bit of choice. If you are not happy in Sydney, you can drive to Newcastle or even less distance to Wollongong or wherever. If there is no work in Darwin, there is no work. If you upset too many people in Darwin, there is no work. One of the reasons I came here today is that I saw the submission that in the Territory, everything is sweet. I do not thing they’ve actually driven out and had a look if they think everything is sweet. You find that very few young people are attracted into the industry any more because there is not enough money. It gets very hot up here and it is very hard for the money they get. If they are going to work in the building industry when they leave school, they will go down south to work. We lose a lot of young people in the Territory to that sort of thing.
Later on, Mr Cridland said in response to a statement by Senator Cook:
Yes, it is a tough job. When it is hot, you have to just keep going. The younger fellows can find better work elsewhere. That is fair enough. We do not begrudge them that one bit. But for the industry in the long term, unless they are getting enough money to make it worth their while, there is going to be a shortage sooner or later, isn’t there? The average age in the building industry would be 40.
So, minister, there is the manager of a construction company saying that, basically, we have trouble attracting people simply because the conditions of service are not as good as down south.
At one stage, the Territory used to be the leader in conditions of service, and now we have dropped to the fourth in Australia. The problem with that is, when people have the option of coming to Darwin or Melbourne, or Adelaide or Perth, they are not coming to Darwin. The Territory government certainly should look at that as one of the reasons why people are not staying here.
As I have said before, sometimes if you want to keep more people here, then we could also reduce the number of terminations at Darwin Hospital, which is 1000 a year, which is certainly well above the number of people we are losing.
There are a couple of other issues I would like to raise. There is an issue of superannuation in the budget. On the matter of superannuation liabilities, I would like to hear from the Treasurer what the government is doing to address that. The 2002-03 Budget said the government would set aside $10m a year from 2003-04 to start addressing the unfunded superannuation liability for public sector workers, which now appears to be almost $1.5bn. However, when the 2003-04 Budget was delivered, the $10m commitment was gone, with the following comment:
A further investigation is under way to determine the most appropriate mechanism for reducing the superannuation liability. The $10m for 2003-04 has been removed until the way forward is finalised.
This budget for 2004-05 appears to be quiet on the unfunded superannuation liability. Not a word. Perhaps the minister can tell me what is happening. After a full 12 months of investigating, has Treasury determined the way forward on reducing this huge liability?
Another issue is to do with consultancies. I would really like to take a look at consultancies and how much has been allocated in the budgets of each department for consultancies. However, I cannot because the figures are not there. This is no different from in the past. What is different is that, now we have moved to accrual accounting, these figures are not available from any public record. I am picking on consultancies because that was one of the specific measures the Labor Party identified when it was in opposition. Labor said that the CLP government spent too much money on consultancies, and that it would cut back on that spending.
Before accrual accounting, at the back of the annual reports, from each department, there was a page entitled, ‘Expenditure by standard classification’, and on that page you could find out how much each department spent on items such as advertising, communications, marketing and promotion, travel allowance and consultant fees. However, with accrual accounting, this useful page has disappeared from the annual report. There is now no easy way for me to tell if Labor is spending less money on consultancies than the CLP did. I have looked at the government Gazette and got some figures on consultancies. In the 12 months to March this year, it appears that the government has spent about $25m across the departments on consultancies. The Treasurer might like to tell the House how much less than the CLP annual spending this was.
I will show you – this is the annual report for the Department of Chief Minister for 2001-02. In there is a section called ‘Consultant Fees’, and at that stage it was $1.652m. These were standardised across departments; you could compare one department with the other. They do not exist any more. You would have to ask, how can someone such as an Independent member, who cannot find this figure in the budget paper, and it is not now in the report, make an assessment of what money has been spent on consultancies? That is an area that needs to be looked at. I would prefer that it came back in the annual report so we can actually compare, not only department with department, but we can quickly find out how much the government is spending on those areas.
As regards work force and staff numbers in the public service, one thing that worries me about this budget and its projections into the future is the sustainability of it all. If you take a look at staffing for most departments, it appears that the government has gone one its own significant job creation scheme and population growth strategy. I have had a quick look at the staff figures for the major departments, and the difference between this year and next year is 600. That is 600 extra staff in one year. I know the government promised an extra 100 nurses and teachers and more police, but there are still a few more hundred jobs that have been created and they all cost money.
As an example, the Chief Minister’s department will have an extra 19 staff, bringing the total to 288 - that is 64 more than two years ago. What are all these extra people doing in such a small department, and how can we afford them in the long-term? What is worrying to me is that at the same time the Chief Minister’s department got itself an extra 64 people, DBIRD - a department that includes a section of great interest to me, the Animal, Plant and Fisheries Industry Services - has lost 50 staff members. So here we have …
Mr Henderson: AQIS staff have gone back to the Commonwealth.
Mr WOOD: Fifty?
Mr Henderson: Yes, a big mob of them.
Mr WOOD: Well, that does not lose the plot too much because we are still talking about 600 extra staff here. Fair enough.
Mr Henderson: They have gone back to the Commonwealth.
Mr WOOD: Anyway, the Treasurer might explain how we will afford to keep those extra staff, and whether we will keep hiring at this rate. I might just take up on the 50 staff. Did they all leave the Territory, because that would be pretty disappointing?
Mr Henderson: No, they are still here.
Mr WOOD: Well, that is sad to hear.
Mr Henderson: The Commonwealth wanted them back.
Mr WOOD: I realise that, but we lose them.
Mr Henderson: No, no, they are here in the Territory. They are still doing the same job, but just paid for by the Commonwealth.
Mr WOOD: Okay. Another area was contracts, and I know the member for Brennan also raised the contracts. The minister would understand that I have also been approached about contracts. There is a section in Budget Paper No 3, on page 232, which is about - and this under DIPE:
… work with the construction industry to maximise local participation and provide an open, fair and competitive procurement process for government projects.
I know that there have been some issues in that area. I certainly hope that those issues can be worked out, because the issues that I know about procurement certainly are not fair. I hope the whole procurement process can be improved. Again, the member for Brennan talked about this new construction association. They have concerns about the possibility of ‘super’ contracts. I hope that those sorts of ideas are put out in the open for people to comment on before the government decides to make that a policy.
On another item in the Chief Minister’s department, and the reason I raise this issue is because I have been comparing one year to the next. In the Chief Minister’s department, there was a variation between last year’s budget and this year’s of $3.702m. Under that section, you get key variations and they are supposed to explain to you why there has been a variation of $3.7m. However, when you look through there, you are really pushing to find out where that variation of $3.7m is. All that I could come up with was $0.75m explained under the key variations. If we are meant to scrutinise the budget, then that section should clearly explain where the variation of $3.7m comes from. It certainly does not come from my reading of that part of the budget.
While I am just talking on budget, it is a pity when you have to look at figures and try to compare that you have to go back to last year’s budget. It would be nice to have another column which, basically, says: ‘This was the budget for 2003-04; this is the estimate’. Then we know how much they either overspent or not. It might be too easy …
Mrs Miller: Much too easy.
Mr WOOD: Too simple? Perhaps they could actually put the budget in a spiral form so we could actually hold the page open while we looked at it, because you have to have a brick with you every time you want to hold a page while you go look at last year’s Budget Papers. I know it is too simple, but it would make life easier when you are trying to read these books. Or maybe they are meant to sit on the shelf and gather dust.
The minister for DIPE mentioned the bus services. Yes, I saw the upgrading of buses but, as I said before, the bus service in the rural area is really a disgrace. We have had two buses in the morning and two buses at night for years and years. There is no reason why buses could not come up Lambrick Avenue from Palmerston and service at least part of the rural area and give kids, elderly people and students a bit of a chance to get out from their homes and go to Palmerston or into town. They just do not have that opportunity unless Mum or Dad drives them. It is time the government spent some money out from what I call the Lingiari Line.
I notice grants for non-government alcohol and drug services have been reduced fairly substantially. I hope with all the talk about alcohol and drug issues in this parliament that that is not going to happen. I would be interested to hear if any of the ministers would explain why that is.
Some issues about funding for roads in our pastoral area, I believe it is time that our pastoral areas were incorporated. I know that the Cattlemen’s Association is opposed to incorporation because it says it would have to pay rates. Let us not forget that about only 23% of cattle stations are owned by families. The rest are owned by giant companies that can well afford to pay something towards the area they live in. The richest man in Australia was on television last night; he owns Newcastle Waters. Surely he could pay something towards the roads? If it is a matter of working out whether a family farm should pay rates, the government might weight it according to that sort of rating. I cannot believe that we cannot incorporate the Territory. That would help get some funding for those roads. I believe that the cattle industry, which is booming at the moment, can afford to put some of its own finances into upgrading its own facilities.
Certainly, they should not be doing it all, but some contribution similar to what people in urban and rural areas like ourselves, we all pay rates, and those rates go into some of the services we use, upgrading our local roads and providing other services. Sometimes people hide behind the fact that this is a big industry and we will upset the Cattlemen’s Association. If the government sat down with a proposal that was fair for the different sections of that industry, it could be done. Most of Western Australia is under local government control. Most of Queensland is under local government control. They all have pastoral properties. I do not see why it could not be done in the Northern Territory.
Another issue that has not been funded as well as it should be is weeds. There is certainly plenty of money given for weeds in parks, but if you have a look at the rural area, and I would say the same in Katherine, weeds are really out of hand. They are an environmental problem. We have large amounts of gamba grass now, large amounts of mission grass, and it is just out of hand. There does not seem to be a program which says we are going to try to control it. You get CD-ROMs - the minister announced that he had launched a CD-ROM which was an important tool in the management of weeds. I have yet to see any weeds die from a CD-ROM! We need some positive action on weeds because the environment is certainly suffering. Anyone who has seen a fire in September going through a bank of gamba grass will know that kind of fire is extremely dangerous and will eventually ruin our environment.
The minister spoke a lot about the harbour and so did the Minister for Environment and Heritage. They all talk about the harbour. They tell you about how they are looking after it, they have a management plan for the harbour. However, if you flew over the centre of the harbour today, you will realise that they did not care two hoots about the middle of the harbour. They allowed it to be mined and that was a deliberate policy of the government to make sure that it would never be used for conservation. It would basically used for industrial. It is, I believe, a policy that was locked in by the department, and minister after minister has gone along blindly believing that is the only option. Sadly, that is where we stand today.
I am fairly cynical when we talk about protecting the harbour. They talk about industries like the tourism industry; they talk about having places to enjoy a lifestyle. Well, they just forgot that and checking the harbour and putting industry elsewhere and there is room elsewhere, we could have had both. We could have had industrial development and we could have looked after our local people and tourism.
There was mention of money being set aside for the wharf development. An interesting question with the wharf development is that the government is telling us that there are three consortia. The question I would like to ask is: are people of the Darwin area actually going to see what those consortia have designed? Are we going to end up with: ‘Government knows best. We have picked this one, and that is it’? I would have thought that people will want to see some options so that they can have a say in what is going to be developed down at the harbour. One of the reasons for that is because people are interested to see what natural and built parts of the environment will be protected.
I was talking to Margaret Clinch the other day and she is certainly concerned about the original site of Goyder’s Camp. Until she sees what these plans are, she has no idea whether Goyder’s Camp will be protected. It is a bit mean of government if it is just going to say: ‘We have three designs by different consortia. We will let you know when we pick one and then you can comment’. It would be far more open and transparent if the government would release the three designs and ask the community what they think of the proposed development down at Darwin Harbour.
I said I would be all over the place, and I am, but there is just one other item that the Minister for Primary Industry might clarify for me. It is an item about litigation. On page 152 of the budget paper in the Primary Industries section, under Key Variations, it states:
Litigation and compensation expenses required in 2003-04 are $3.1m for output group Animal, Plant and Fishery Industry Services.
That is a fair bit of money given out in litigation and compensation. It would be nice to have an explanation as to what that was about. I can certainly ask the question in budget estimates, but I was trying to work out the key variations to see where the department had spent its money, and that popped out. I hope the minister can let us know what that variation is about.
The budget overall has some great things in it – the upgrading of the Litchfield Loop Road and the completion of Cox Peninsula Road are great things. As I said before, you look through a budget and it has some good items. We know all governments will try to improve health and education, but sometimes we also have to wonder whether we can do things more efficiently.
How many staff do we have there? If you have 60 more staff, what does that work out at? About $6m. When this government came to power, it decided to cut departments pretty severely. Is the cycle now going up again? Would we be better spending that money on roads and other infrastructure? Are we starting to pad our departments with more people than we need, or do we now have pet projects that require lots of people to do them? The Chief Minister’s department is fairly big, and you have to question why there are so many people employed there.
I congratulate the government on its initiatives. There are certainly some good initiatives there. The budget needs more scrutiny and, of course, that will occur at the Estimates Committee. Even though some think I might go on and on, I will certainly go on and on if I need to during the Estimates Committee. As long as my questioning is appropriate and to the point, I will do that.
Mr HENDERSON (Business and Industry): Mr Acting Deputy Speaker, it gives me great pleasure to make this contribution to the debate on the Martin government’s Budget 2004-05, and what a budget it is.
It delivers the largest ever tax cuts for Territory business, more jobs, more training, and a great lifestyle for Territorians. I am going to focus my contribution in the debate on the impact on agencies for which I am responsible – Police, Fire and Emergency Services; DCIS; and Business and Industry. The more global aspects of the budget in its impact on the economy and the infrastructure projects have been dealt with by other speakers. Tonight I will be talking about the impacts on my agencies and the programs for which my departments are responsible.
For 2004-05, my Department of Business, Industry and Resource Development will have a budget of $86.6m to deliver services to Territorians. It is a very broad range of services which are provided to strengthen economic development in the Northern Territory, and in particular to support business, trade and industry development in the primary industries, fisheries, minerals and petroleum sectors. There are also many initiatives contained in this budget which will enable the department to build on the strong achievements of the previous year in the area of indigenous economic development. Opportunities in the primary production, aquaculture and other resource users and business opportunities for indigenous Territorians will continue to be identified, with the recent commencement of a director of Indigenous Economic Development within the department.
I will now detail the ways in which we will deliver support for economic development in the Territory through specific programs and services for small business. As I have noted on other occasions, the Territory Business Centre Network was established to develop a gateway to government for services provided to business and industry. The Northern Territory government’s latest initiative in helping businesses to do business in the Northern Territory was to launch an on-line business channel. Where previously the TBCs were physical offices located in the Territory’s major regional centres, they are now complemented with an on-line business channel available to all businesses wanting to do business in the Territory.
In the 2004-05 Budget, $1.513m has been earmarked to ensure this initial contact and referral point for starting businesses, licence information and links to departmental programs continues to provide a high level of service to Territorians. A further $532 000 has been earmarked to ensure the continued delivery of on-line information services, including Connect:NT, Transact:NT for on-line licences, and the business channel, www.tbc.nt.gov.au.
Launched in July last year, Connect:NT, the Northern Territory government’s Case Manager Network, fulfils an election commitment to connect the network of people across government with the business community who are there to help business. Once fully implemented, Connect:NT will give business access to the front door of government services, and help reduce time spent searching for the right person to speak to – a true, one-stop shop for the first time for Northern Territory business.
$120 000 will also be spent to ensure the Youth Desk continues to help young people aged between 14 and 30 in business, studying business, or wanting to start a business. The Youth Desk offers business support programs, networking and services for young Territorians through various programs such as Youth Business Awards, Young Achievement Australia and visits to high schools.
Once again, October Business Month, the premier annual business event, presented by the department, will feature high profile key note speakers and presenters. This is the 10th year that October Business Month will run in the Territory and it continues to provide excellent opportunities for Territory business to develop their training and develop needs. Without giving too much away, I can say that, this year, OBM will have a facelift, and the new look and feel month of business workshops and presentations will have a special focus on women in business and home-based business. According to 2001 ABS figures, there were 5700 home-based businesses in the Northern Territory. These can be further divided into 4700 businesses operating from home, and 1000 businesses operating at home.
In support of Territory women in business, $60 000 will be spent on delivering a program of events designed to assist women in the area of professional development. Client consultation and visits to individual Territory businesses will continue, with the department’s client managers offering information, assistance and advice.
Amongst my ministerial responsibilities, I hold the important portfolio of Defence Support, and last year I pledged to establish a Defence Support Division within the department to focus on identifying and realising business opportunities within the Defence Support sector. The 2004-05 Budget contains $570 000 for the Defence Support Division to engage with Defence to identify and track industry and business development opportunities.
The Mining and Petroleum Support Division is overseeing the implementation of building the Northern Territory Industry Participation Plan, a comprehensive local content policy launched in May last year. Its objectives are to maximise opportunities for competitive local business and to enhance Territory industry capability. The policy acknowledges the importance of major projects in the development of the Territory’s economy, and a key element is the requirement that industry participation plans be prepared and agreed on for NT government-assisted private sector projects with an expected value of over $5m.
The division also arranges supply, awareness and upskilling workshops and seminars in conjunction with the Business Services Division and industry associations to enhance local business and industry capability when tendering for large contracts.
I am pleased to announce that $95 000 has been earmarked for the implementation of the manufacturing industry strategy. Also, in support of Territory manufacturers, my Department of Corporate and Information Services through CAAPS will engage with the industry and relevant government agencies to establish panel frameworks for the supply of various manufactured items that are required by government. The first such panel creation process will focus on an issue that has been raised with me by industry on a number of occasions - the provision of marine vessels and marine repairs and maintenance work for our government agencies. These panels will provide an efficient and effective pre-qualification process from which tenderers can be invited to bid for business as specific needs arise.
The department’s Enterprise Improvement Program, Business Growth, has a budget of $225 000 to continue to offer funding and development services to established businesses to enhance business performance, profitability, employment levels, and market penetration. The department’s International Business Division will continue to help Territory-based exporters to improve their export capabilities through programs such as the Trade Support Scheme. In this budget I am pleased to announce that funding for the Trade Support Scheme has increased to a total of $358 000 to continue providing financial support in the form of taxable cash grants to reimburse Territory exporters up to 50% of their direct export marketing costs in obtaining trade outcomes. This program has been very well subscribed and it is pleasing to see so many Territory firms using the assistance to look outwards and move into international trade. It is a huge increase on the previous EMAS scheme - the Export Market Assistance Scheme - under the previous government that had about $80 000 allocated to assist Territory exporters. We have increased that to $358 000. It is a new scheme and was fully subscribed last year, and is a sign of the great commitment this government has to assisting business export from the Northern Territory.
The Chief Minister’s Business Round Table, another successful initiative of the government, will continue in 2004-05, giving industry and business –especially small business - a chance to talk directly to the Chief Minister and other ministers about issues relevant to business. For primary producers in the Territory who, for many generations, have been the backbone of the Northern Territory’s rural economy, a further $300 000 has been earmarked to supplement the Commonwealth FarmBis scheme where financial support is provided to primary producers and land managers for training to improve their business and natural resource management skills.
As well, the pastoral water enhancement scheme receives $300 000 towards the introduction of new watering facilities on Northern Territory pastoral enterprises. The budget also contains $260 000 to ensure the continuation of the popular upskill short courses, to provide regular workshops and mentoring programs for established business managers throughout the Northern Territory. For the first time this year, the upskill short courses training will be delivered via a panel contract, allowing a more extensive and contemporary range of topics to be offered. I signed off on those letters in the House here yesterday. It was good to see a number of regional training businesses on that panel contract up and down the Track. As well, the consultants delivering the upskills workshops were carefully identified to include those with the specific ability to deliver key programs in our rural and remote locations - another commitment filled by the government in our election commitments to assist businesses to upskill.
Like other regional areas around Australia, the Territory is faced with the difficulty of attracting, and keeping, appropriately skilled, qualified and experienced people to our work force. Whilst our primary objective is jobs for Territorians with the long-term commitment to the first ever Jobs Plan for the Northern Territory, which is providing apprenticeships and training for our young people, the Martin government is committing $345 000 in this budget to the business and skilled migration program to encourage highly-qualified workers to consider living, working, and doing business in the Northern Territory, and provide information, advice and support to Northern Territory employers seeking to recruit skilled workers from overseas. This is a significant commitment; one that I am pushing very strongly through the department. We are very much in a consultation phase at the moment, and there are real opportunities for the Northern Territory to get a far greater share of migrants coming to Australia to live, invest and raise families in the Northern Territory. It is the first time that government has done this in a strategic and policy sense, in committing $340 000 this year to that initiative.
Before I move on, I am confident that members will share my view that the budget allocation to my Department of Business and Industry in 2004-05 Budget will deliver real benefits to a business community that is working hard to make the most of the many exciting commercial opportunities that confront us. I pay tribute everybody in the department. They are doing a great job at the moment.
I now focus on the budget initiatives relating to my Police, Fire and Emergency service portfolio responsibilities. I am pleased to announce that budget 2004-05 has boosted funding for the Northern Territory Police, Fire and Emergency Services to $172m; an increase of $30m or 21% over the past two years. This will be the first full year of the Martin government’s four year, $75m Building Our Police Force Plan which is delivering 200 more police on the beat by the end of 2006. An extra $16.43m has been injected into Police, Fire and Emergency Services to continue the roll-out of Building Our Police Force Plan in 2004-05, providing additional uniformed police patrolling our suburbs and communities, additional civilian support staff to keep our police on the beat, and improvements in conditions of service to help keep our experienced officers in the Territory.
This year an extra $13m will be spent on police personnel including $8.286m for increased police resources. This funding will enable the Martin government to continue to recruit police officers at the record rate of 120 constables in five squads. One hundred and twenty new constables for the Northern Territory community in 12 months time; it is a huge result and it is going to make a big difference out there in our community.
The record rate of recruitment identified by the independent O’Sullivan Report is the maximum possible rate of recruitment for the Northern Territory Police also takes into account filling positions of current staff that may leave during the year. As members would be aware, only last week I was pleased to join with the Police Commissioner in launching a recruitment campaign calling on Territorians to consider a career with the Northern Territory Police. So now really is the time to consider being part of this new era in Territory policing. Another $3.426m has been earmarked for an additional 22 civilian positions to provide technical specialists and administrative support to operational police officers helping to keep police out of the office and on the beat to carry out core policing duties.
Another O’Sullivan Report recommendation to be met by the Building Our Police Force Plan is the establishment of a call centre which becomes operational in June this year. $780 000 was allocated in 2003-04 to set up the centre and ongoing funding of $700 000 is being earmarked in budget 2004-05. Incorporated into the joint emergency services communications centre, the call centre will provide a more efficient and convenient reporting system for Territorians reducing the need to go to a police station to report certain crime incidents. Importantly, the call centre will also help keep police on the beat longer by reducing the paperwork load for officers at the end of each shift.
An important part of the Martin government’s $75m Building Our Police Force Plan is to provide adequate funding to maintain equipment our police use in their day to day duties. In budget 2004-05, $2.9m has been allocated to ensuring our police have the tools they need. Of that money, $800 000 has been allocated to replace operational equipment including evidence recording equipment, hand held radios, forensic equipment and training equipment. $1.2m has been provided to address the funding shortfall in the vehicle replacement program. $400 000 will be used to purchase a 12 metre coastal vessel continuing the government’s $1m coastal vessel replacement program to improve the ocean search and rescue and patrolling capacity of our police. This vessel will be used in and around Darwin Harbour and will allow police to respond to maritime incidents up to 30 nautical miles off our coast.
In building our police force, the government is working to keep experienced officers in the Territory through improved working conditions for our police. Budget 2004-05 funds the upgrade of 66 Territory Housing Police Industry Houses in centres across the Territory. The final details of the funding are being finalised but more than $1.8m has already been flagged for the upgrade. This is not only a great result for the police; most of these houses are in the regional centres of the Northern Territory and it is going to be a great boost to small contactors in those regions.
A further $0.78m has been allocated in budget 2004-05 for minor new works to upgrade and refurbish NT Police, Fire and Emergency Services facilities. Since its introduction, the police recording system, PROMIS, has been something of a bug bear for operational officers, and that is a bit of an understatement. In last year’s budget we committed $1.5m in ongoing funding for the maintenance of the PROMIS system and additional technical support; the first time money has been allocated for the specific purpose of maintaining this important policing tool. Significant improvements were made to PROMIS last year giving members a more reliable system to assist in fighting crime and intelligence-led policing. Budget 2004-05 again delivers $1.5m in recurrent funding which this year will fund the implementation of the latest technology to bring the Northern Territory police PROMIS system into line with the system used by the AFP.
Ongoing upgrades and maintenance will provide Northern Territory police with improved tools for case management of major incidents and intelligence-led policing. That funding has been very well received by police members in the Northern Territory who use this system. I have to say that the complaints I was receiving 18 months ago about this system, people can see massive change and it is money well invested that the previous government failed to invest.
I am pleased to advise the House that this year, we will recruit an additional six fire fighters, completing the government’s election commitment to increase fire fighter numbers by 16 in our first term. The recruit course will start in July and the resulting increase in staff numbers will see four fire fighters stationed at the new Humpty Doo facility, and one each to Katherine and Tennant Creek. The independent Metis Report into the industrial relations and human resource management systems in the NTFRS released in February gave a no holds barred account of the cycle of conflict that had built up over a decade within the organisation, and importantly, a road map for a new era into the NT Fire and Rescue Service.
The government endorsed the recommendations in the Metis Report and has committed funding to see the road map take shape: $0.88m in Budget 2004-05; $0.75m next financial year; and $0.5m in recurrent funding each year after that. Part of the funding, $0.13m in 2004-05, has been allocated to the Office of the Commissioner for Public Employment to provide fire and rescue staff with training in industrial relations and appropriate workplace behaviour. $200 000 from the overall funding was allocated to the NT Fire and Rescue Service’s training division. The funding will also cover the creation of specialist positions in training, strategy, occupational health and safety, and industrial relations.
Budget 2004-05 is the last time the NTFRS does not have its own budget output group. Delivering on an important recommendation from the Metis Report, from 2005-06, the NTFRS will have greater financial autonomy with a separate output group over which the Director of the Fire Service will have independent accountability. $580 000 will be spent purchasing two new fire appliances in 2004-05, replacing the rescue vehicle in Katherine and a tanker in Alice Springs. These vehicles will end the NTFRS eight-year major appliance replacement program. I am also pleased to advise the major fire appliance to replace the one destroyed in last October’s bush fires will arrive in Yulara in the next few months. This vehicle is, of course, purchased with 2003-04 funding.
The Martin government is building safer communities for all Territorians with improved facilities in town and in the bush. In Budget 2004-05, we have allocated $1m to construct a policy post at Numbulwar, a community of about 1200 people. The police post will include an office from which the Aboriginal Community Police Officers can base themselves and visiting officers’ quarters for overnight police patrols. Design work for the new police post has already started, and it is expected work will begin in early 2005.
2004-05 will also see the last of the Territory’s police cells to be upgraded in response to the recommendations of the Royal Commission into Aboriginal Deaths in Custody. $680 000 has been allocated to upgrade cells in Batchelor, Ti Tree and Maranboy, with work scheduled to begin in August and September and conclude in December 2004 and January 2005.
The construction of the new $2m Humpty Doo police and fire facility will start next month, to be completed by January 2005. The new facility will deliver a greater level of service for the residents of Darwin’s rural area and ease the pressure on services in Palmerston. That was an election commitment that will be delivered on by this government.
Budget 2004-05 also delivers $400 000 to boost the counter-terrorism capacity of the Northern Territory Police, Fire and Emergency Services, as the Northern Territory continues to play its part in national counter-terrorism efforts. Of the funding in Budget 2004-05, $300 000 has been set aside to purchase highly specialised equipment including a bomb response vehicle and electronic surveillance equipment. Of course, it is not enough to simply purchase new equipment. Accordingly, $100 000 has been flagged to allow members of the NT police to attend nationally approved counter-terrorism courses and workshops, including tactical response capability, counter-terrorism negotiator skills and incident command and control. Participation in these courses will ensure the NT maintains best practice in counter-terrorism response capability.
I now move on to talk about Budget 2004-05 initiatives relating to my Department of Corporate and Information Services. DCIS is responsible for providing responsive quality and cost-effective corporate support services to government. DCIS’ role extends to key responsibility for the development of the information communication technology industry and archival heritage. The department endeavours to contain costs and where possible, to reduce the cost to government agencies through the use and adaptation of emerging technologies. This is reflected in its pricing structure, which shows that 19 of its product lines have reduced in price over the past 12 months. The balance remained unchanged. This cost containment is underscored by comparing the 2003-04 and 2004-05 Budgets. The increase of $3.663m can be accounted for:
· $1.5m government-funded program for upgrade of accommodation and property refurbishment;
· $1.47m joint Territory and Commonwealth government-funded program in support the government’s Jobs Plan;
· $127 000 increase to address difficulties in retaining and recruiting finance staff in 2003-04 during the introduction of accrual accounting; and
· $370 000 for the 2004-05 EBA.
Overall, DCIS staffing has reduced by five over the past year. This reflects efficiency gains in service delivery but does not identify the positive shift in the ratio of apprentices now in the work force. And they are doing a great job there. DCIS currently employs 15 apprentices, with a further 16 expected to be recruited in the January 2005 intake.
The Jobs Plan initiative has been highly successful with 81 apprentices employed across agencies in the February intake and a further intake of 25 mid-year. The 2005 target has been set at 120. Forty six of the total intake of 106, that is 43%, self-identify as indigenous. This is a very good achievement and a major step towards redressing the imbalance of indigenous employees in the Northern Territory public sector. I am digressing from the speech, and the member for Katherine might be aware of this, but in Katherine recently I was amazed that last year, and for many years, government only employed two apprentices in Katherine. This year there are 11. It is a fantastic initiative. I met some of those young people, and I am very pleased to see that. So, member for Katherine, 11 apprentices organised through DCIS in Katherine, a big step up on the two of last year.
The success of employing indigenous people has meant that the Northern Territory has achieved the three year target within the first year. To further contribute to the success of indigenous employment, DCIS is currently preparing a Request for Tender for the delivery of indigenous employment services over a 12 month trial. The Request for Tender is expected to be out by late June, and will include:
· the establishment and maintenance of a database of indigenous jobseekers seeking employment in the NTPS;
· the provision of customised pre-recruitment training to indigenous jobseekers seeking employment in the NTPS;
· the provision of an indigenous mentoring program for all indigenous people seeking employment or already employed with the NTPS; and
· the provision of statistical information in relation to job referrals and placements.
A recent review of remote locality working conditions resulted in the Remote Work Force Development Strategy being launched by the Minister for Employment, Education and Training. The strategy makes provision for $1m in recurrent funding to be spent on targetted interventions for employees in remote localities. DCIS is developing a module to manage remote locality entitlements, which will support better management as well as information capture and reporting. Further reinforcing the work being undertaken in this area, the Commissioner for Public Employment recently announced DCIS’ success in its applications for the Remote Work Force Development Grants Program.
I am pleased to announce here that grants have been received for the following initiatives:
· provision of a scoping document and analysis for the remote area PIPS module referred to above;
· a $34 606 grant for the provision of part professional assault response training in remote areas;
· delivery of SWIPE, Sector Wide Induction Program for Employees; and
· OH&S training programs in Nhulunbuy and Tennant Creek.
DCIS will continue to work with Westpac to enhance the on-line payment options available to the community. The Payments Gateway is a web site hosted by Westpac for paying bills issued by the Northern Territory government or purchasing items for the NTG. Currently, the web site includes payment of bills and point of sales purchases using a credit card. Work is currently under way to allow bill payments by direct debit. Bpay is already available to agencies for payment of some bills and DCIS is investigating payment of bills with a credit card via phone, or IVR, which is an Interactive Voice Response.
An archives management system will be acquired and installed. The system will hold detailed information about archived collections held by the NT Archive Service. It will allow more efficient management of the collections and improve community access.
Moving to another initiative, DCIS, in partnership with CDU, Fujitsu and the Department of Infrastructure, Planning and Environment has conducted a pilot project on the application of web services technologies in the Northern Territory government. The trial was successfully completed and the technology will now be used to provide on-line driver’s licensing and vehicle registration services to the community.
All of the above initiatives are consistent with the e-government direction being pursued by this government and a reducing back office processing cost. DCIS is continuing to work towards an innovative and expanding ICT industry which meets the needs of Territorians, and is poised to export its skills and expertise. This includes collaboration with the Singapore government, together with our respective ICT industries to increase ICT trade, particularly in the delivery of remote telecommunications-based services into South-East Asia. To enhance this, the government will support an ICT industry delegation to Singapore this year to seek partnership with Singapore ICT companies.
Progressing the ICT industry’s strategic plan, the government, in collaboration with the industry and CDU, will complete a five-year ICT industry strategic plan to focus industry, government and academic efforts so that we optimise benefits to Territorians in the ICT industry. The government has set goals to improve the performance of agencies’ ICT services to enable them to be more responsive to remote indigenous communities. To achieve this, DCIS will work with its key ICT services providers to establish an ICT service presence in many remote communities.
As the previous minister for procurement, I announced the government’s procurement reform initiative. I am particularly pleased now to announce that DCIS is taking the lead role in implementing some of the core procurement reforms. These include procurement training. The government is committed to ensuring that its procurement activities are open, effective and represent value for money. In order for this to happen, staff engaged in procurement need to undertake an appropriate level of training. DCIS is providing short courses to staff from agencies at several levels of accredited training, including individual accredited units in procurement in line with requirements outlined in the agency’s procurement management plans; Certificate IV in Government Procurement and Contracting; Diploma in Government Contract Management; and recognition of prior learning assessments for individual units and in workshops for the Certificate IV qualification.
In response to suggestions from Territory business, this government is now reviewing procurement thresholds and mechanisms to simplify the tendering process. The proposed changes include retaining current advertising thresholds, but introducing a more simple procurement method and tendering process for the supply of goods and services with a value between $10 000 and $50 000; review of existing period contracts as they expire, and will consider aggregating their requirements for some goods and services - these requirements will be tendered through the public tendering process; and the establishment of common use contracts by all government agencies.
In 2003, the Martin government committed to pay 100% of non-disputed invoices to Territory businesses within 30 days of receipt of invoice, or pay a penalty. In 2003-04, 83% of payments were processed within 30 days. The figure for April 2004 is 93%. It is amazing what a little incentive like paying an interest payment will do. DCIS and Treasury have been working to finalise this implementation of interest penalties that suppliers will be able to claim for late payments. These will commence from 1 July 2004. This has been a great initiative of our government and, certainly, been very well received by the business community which has noticed a huge improvement in the payment of accounts by government since we started working towards that 100% target. In the coming 12 months, the first annual review will be undertaken of this government’s property procurement guidelines to ensure they are achieving the levels of competition and openness required by this government.
In closing, Mr Deputy Speaker, I believe that the numerous initiatives I have listed above show Territorians that the Martin government is serious about delivering on the promises we made; serious about jobs for Territorians; serious about attacking the causes of crime; and serious about moving the Territory ahead.
I congratulate the Treasurer, his staff, the Treasury officers who worked long and hard and always do in preparing the best advice to the government and a great budget. I commend the Budget 2004-05 to the Assembly.
Mr Deputy Speaker, I move that debate be adjourned.
Debate adjourned.
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