Thousands of jobs, billions in investment as China drives Defence NT focus
Defence will spend billions in the Territory over the next five years, according to a new report. Read what it means for jobs and see our exclusive list of upcoming projects.
Northern Territory
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Defence will spend a massive $6.23bn in the Northern Territory over the next four years and add 7640 direct and indirect jobs at its investment peak as Australia’s national security focus pivots north.
A new report commissioned by Master Builders NT and compiled by ACIL Allen estimated that by next financial year Defence employees will make up 7.4 per cent of the full-time Territory workforce on projects across the Australian Defence Force investments portfolio, United States defence projects and the $3.8bn northern base and facilities upgrades and another billion for base resilience.
Released six months after the Defence Strategic Review which urged Defence to look north, the report concludes the NT construction industry has a track record of delivering for industry with big projects such as INPEX, but workforce and accommodation constraints could impact our capacity.
It flagged the possible need for construction of multi-industry worker camps to meet short-term accommodation demands and warned that more permanent housing is urgently needed. Workforce is also marked as crucial.
Master Builders chief executive Ben Carter said the report confirmed the federal government is responding to Defence Strategic Review recommendations that orients national security in northern Australia and positions the Territory to reap the benefits of Defence’s northern push.
“This is a multi-billion partnership between the Australian and US Defence Departments and the construction sector,” Mr Carter said “It’s going to create a surge in jobs, opportunities for thousands of businesses and other economy wide benefits that will extend across the whole Top End.”
When Defence infrastructure works in the Territory peak in 2024-25, there will be 4316 full time equivalent direct jobs and 3324 indirect jobs through additional spending within the economy, the report said.
Construction workers are expected to make up about 45.8 per cent of the workforce, with clerical and administrative 10 per cent, labourers 8.6 per cent and professionals 8 per cent.
By 2024-25 it’s estimated NT pay packets will be boosted by $840.3m.
As well, about three-quarters of production generated by Defence – $4.76bn - would be sourced from NT businesses and suppliers – amounting to an extra $952m in the economy a year.
Total spending would peak at $1.3bn in 2024-25 and that the Defence spend on infrastructure alone would deliver $4.5bn stimulus to the NT economy over five years and $1.25bn in 2024-25, or about 4.7 per cent of the Territory’s gross state product.
More than half the total Defence spend will be indirect investment which will flow through the Northern Territory economy through supermarket check-outs, coffee-shop visits or, potentially, an NT family holiday by a Defence construction worker.
For every dollar invested directly by Defence on infrastructure in the NT, another $1.17 will be spent indirectly within the Territory economy.
The report points to sluggishness in the NT economy and a capacity to grow to meet Defence’s workforce and capacity requirements.
“The Northern Territory is achieving below trend economic growth for a mature economy, but as an emerging economy, it should be able to sustain much higher levels of economic growth.”
To maximise the potentially enormous benefits of the Defence investment the report calls for effective market signalling through properly managed project planning, release of smaller project packages rather than large programs and improved co-ordination between Defence and the NT government.
It calls for a workforce development strategy for the construction industry, more streamlined processes for temporary and permanent migration, implementation of an NT population strategy and addressing accommodation shortages.
“Currently, the number of workers that could be recruited on a temporary or permanent basis from overseas or interstate is limited by a significant shortage of accommodation options … particularly in Katherine,” the report said.
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Originally published as Thousands of jobs, billions in investment as China drives Defence NT focus
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