Future NT 2025: Territory’s economy faces global challenges, but the future is bright
Three seasoned out-of-towners have delivered their verdict on the Territory economy ahead of the fourth annual Future Northern Territory forum. Read their thoughts.
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On the eve of Friday’s Future NT 2025 business advocacy conference, a former federal Treasurer and Ambassador to Washington laid out a sweeping vision for the Northern Territory as a key regional player.
Joe Hockey, now a senior partner with global consultants Bondi Partners, said under the right conditions the Northern Territory could become a major Indo-Pacific hub.
“In the Northern Territory it’s a case that you have every opportunity to become a major Indo-Pacific hub, it’s just about how you apply that ambition,” he said.
“Importantly, how prepared you are to take a bit of government risk, to take private sector risk, to take investment risk.”
Mr Hockey’s comments, made at Thursday’s NT Government-Darwin Major Business Group Investment Summit, mirror the Country Liberal Party Government’s drive to re-engage with South-East Asia.
Asian Relations and Trade Minister Robyn Cahill has visited the region four times since her appointment in September, with another visit to East Timor scheduled for next week.
EY Regional Chief Economist, Oceania, Cherelle Murphy, whose father worked on the Bayu Undan gas project, said the headwinds that would work towards economic growth in the Territory required deft management.
“As much as everything looks like its kind of laid out for the Territory with the energy transition, Defence, and the technologies used for critical minerals, there are other factors,” Ms Murphy said.
“What’s difficult is the fact that commodity prices fluctuate all the time, there’s supply constraints in the economy that you can’t predict. You get factors like Trump coming in and completely upsetting the price of transport equipment we might have to bring in to build massive projects in the Northern Territory.
“The gold price has gone up recently but can quite easily fall again, ESG concerns which are leading the energy transition can also prevent the transitory parts of the energy story.
“Investors to some extent have to take a leap of faith and look very long term in their planning because of some of these things are going to look pretty ugly from time to time in the short-term horizon.
“We need to get behind the Territory, but the reality is it’s not always an easy sell. It does take some backing and being consistent in decision making, being stable, continuing to see through commitments without variation so investors can believe in Australian institutions.”
Demographer Mark McCrindle, keynote speaker at Future NT 2025, said the dynamism of the NT’s population based on its relative youth compared to the rest of Australia was a strength, as was its cultural history.
“It’s a young population and it’s a vibrant, dynamic one,” he said.
“The fluid nature of the population in terms of new, interstate arrivals is quite a strong feature and the cultural diversity defines a lot of the entrepreneurialism we see in the Top End.
“There’s the high incomes that come particularly from construction, infrastructure, mining, military and health care, and all of that has driven the local economy.
“Because of those factors it can be volatile with population going up and down.
“It can also have economic volatility as it rides the mining cycles, but the NT has become more diversified in industry, particularly as there’s more in the Territory from military, mining and critical minerals, we’re seeing a new chapter at the moment, and that’s coming through in the economics and population growth.”
For the fourth year, the NT News’ annual Future Northern Territory advocacy program returns with key content pillars including defence, resources, education, tourism, sport and workforce growth.
Friday’s event, at Mindil Beach Casino Resort, will include three major panel discussions centred around these themes.
The event will be hosted by former editor of The Australian, John Lehmann, who is News Corp Australia’s Commercial Director, States and Communities.
Chief Minister of the Northern Territory Lia Finocchiaro will give a keynote address on the day, along with social researcher and demographer Mark McCrindle.
Future NT 2025 is supported by major partners Tivan Limited, Charles Darwin University, Tamboran Resources, Santos, Darwin Port and NT Government, minor partners Airport Development Group and Sitzler and supporting partner Mindil Beach Casino Resort.
Tickets are sold out.
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Originally published as Future NT 2025: Territory’s economy faces global challenges, but the future is bright
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