Territory economy eighth out of eight new CommSec report finds
A new report has compared the Territory economy with the rest of Australia, and the results weren’t good. Read where it fared the worst.
Northern Territory
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A searing economic analysis has driven a stake through the Labor government’s economic credentials, putting the Territory last in six of eight benchmark categories and showing a sharp decline in economic activity.
The CommSec State of the States economic performance report showed economic growth in the Territory in the March quarter was down 7.7 per cent on its long run average, with next worse Western Australia showing a 3.3 per cent increase.
CommSec acknowledges its reporting methodology — a decade-average figure which was skewed by the Inpex boom — can potentially contort the data, which is why it also provides an annual growth rate figure.
“That said, the Top End still remains in last place,” CommSec said.
The quarterly economic snapshot, which takes in the Top End Wet Season, ranks the Northern Territory in last place in retail spending (up 1.1 per cent), equipment investment (down 12.1 per cent), construction work (down 42.2 per cent), housing finance (down 7.1 per cent) and dwelling starts (down 64 per cent).
The Territory was fifth in home prices (up 2.4 per cent), seventh in relative population growth (up 0.95 per cent), and experienced a 4.1 per cent increase in wages in the March quarter in which CPI was 3.3 per cent.
On an annual basis, CommSec found the Territory economy declined by 6.7 per cent and dwelling starts were down 38.1 per cent.
At a media event on Friday to announce the lease at the Jabiluka uranium mine had been allowed to lapse, senior government economic minister Mark Monaghan, tried to deflect from the poor showing by blaming Inpex growth.
“The CommSec report looks at the Inpex development at its peak and it’s skewed,” he said. “Any economist with a rational view of that would understand that when you build a $50bn project over a 10-year period and you boost the economy by 10,000 people that has a major impact that you have to diversify economies and build sectors to get back to a level.
“But what I do want to say is I know, interestingly enough, even when you talk about populations in this space, at the peak of Inpex, we have more people working in the Territory than we did then, so we’re actually being successful in that space.”
Opposition leader Lia Finocchiaro said the latest report showed the government have “let down” Territorians.
“Labor is incapable of managing the economy. Labor have been in government for 8 years and for over five and half of those the Territory has been ranked last,” she said.
“Our economy is going backwards, tourism is in decline, retail spending has flatlined and housing starts are at all time lows.”
Ms Finocchiaro highlighted her party’s pledges to improve the NT economy through payroll tax, home builder grants and investment.
“The CLP will grow the economy by streamlining project approvals and supporting key industries,” she said.
“We will invest across the Territory and drive trade with Asia to secure long term investment and jobs for Territorians.”
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