NT Budget 2024: Resources and gas key to NT Labor’s record budget debt
The NT’s natural resources are key to the government’s plan to spend their way to re-election. Read how it’s helping.
Northern Territory
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Industry groups have largely welcomed the Labor government’s decision to invest in services including law and order, education and health in the 2024-25 budget.
The Territory’s resources sector said increased spending in the budget was on the back of past and projected revenues sourced front the Barossa and Beetaloo gas provinces.
Chief Minister and Treasurer Eva Lawler’s second budget contained record expenditure, created record debt and moved the economy close to the government’s self-imposed $15bn debt ceiling.
NT Minerals Council chief executive Cathryn Tilmouth said the budget reinforced the heavy reliance on the minerals industry to provide budget revenue.
She said with NT mines at Groote Eylandt and Gove expected to close around 2030, there is enormous needs to find alternative sources of own-sourced revenue.
“You’re looking at some mines closing by the end of the decade if the NT Government doesn’t secure investment in opening new mines before that, then the economy is vulnernable and exposed to those conditions,” she said.
“The Minerals Council welcomes the ongoing investment in exploration through
the $9.5m commitment to the NT Geological Services’ Resourcing the Territory program.”
Australian Energy Producers NT director David Slama said gas was crucial to the NT Government’s rollout to net-zero emissions by 2050.
“The Budget shows the Territory Government is focused on delivering practical solutions on the road to net zero and underscores the importance of gas in Australia’s energy transformation,” Mr Slama said.
“The Budget continues to help progress development of the extraordinary opportunity of the Beetaloo Basin and Middle Arm Sustainable Development Precinct, while reinforcing the economic importance of the Barossa project.”
“The oil and gas industry also supports the Resourcing the Territory exploration program, delivering investment in the NT and supporting new energy supply with all of its benefits.”
NT Chamber of Commerce chief executive Greg Ireland said Territorians will benefit from the spin-offs of investment in health, education and policing.
“If you look at this from a liveability retention perspective, this is setting the scene,” Mr Ireland said.
“We have to invest in those social issues and have to make our environment more conducive to business wanting to stay here and invest in the Territory.
“If the big projects are not forthcoming we’ve literally got all the chips on the table because with a $12bn debt in a few years time we are exposed if they don’t.”
Master Builders NT chief executive Ben Carter said housing would be an essential element in future economic growth.
“In addition to resources, defence investment is underpinning their budget vision for the next 10 years, which is a good thing and NT Master Builders encourages the Government to continue to support that,” Mr Carter said.
“The gaping hole in this budget is housing, and without a massive boost in private sector housing, it’s going to undermine the ability in the Territory to realise the benefits of defence and other investment.”
Lord Mayor Kon Vatskalis praised Ms Lawler for her support for gas.
“The good things the government has made the right decision supporting Barossa, supporting Beetaloo despite the opinions of some people, but I’m sorry, you can’t make an omelette without breaking eggs, and you can minimise the impacts on the environment by other means.”
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