NT short changed in Federal Budget

THE Northern Territory has missed out on any big spending in the 2016 Federal Budget — less than two months out from the anticipated July 2 election

Australian Federal Treasurer Scott Morrison speaks at the despatch box during the delivery of the 2016-17 Federal Budget in the House of Representatives at Parliament House in Canberra. PICTURE: AAP

THE Northern Territory has missed out on any big spending in the 2016 Federal Budget — less than two months out from the anticipated July 2 election.

The NT appears to have only received $40 million in new funding through the federal asset recycling scheme for infrastructure projects.

In comparison, Western Sydney alone got $2.9 billion for infrastructure.

Treasurer Scott Morrison announced his first budget last night that attempted to straddle the line between pre-election spending promises and the Coalition Government’s need “to live within our means”.

“This cannot be just another budget because these are extraordinary times,” Mr Morrison said. “This budget is an economic plan, it’s not just another budget.”

Territorians — the nation’s biggest smokers — will see taxes on cigarettes rise 12.5 per cent a year for four years, bringing the cost of a pack to over $40 by 2020.

People earning over $80,000 — estimated at three out of 10 Territorians — and small to medium sized businesses can expect to see modest tax breaks.

The NT Government will take away $40 million from the federal government’s asset recycling scheme to be spent on 11 minor infrastructure projects — including the first stage of the marine industry park. That money is the result of the sale of TIO and the least of Darwin port. Another $5.6 million will also be spent on flood mitigation projects in Darwin and Katherine.

Among the spending commitments is $48 million over three years to the Royal Darwin Hospital’s critical care and trauma response centre and a previously announced $20 million towards the construction of Palmerston Hospital.

The Territory will also receive $77 million over four years to upgrade and improve roads, which will include $10 million in 2016/17 to upgrade the Little Horse and Big Horse Creek bridges on the Victoria Highway.

Chief Minister Adam Giles is disappointed to only receive $77 million in roads funding in the Federal Budget. PICTURE: Elise Derwin

Litchfield Park Road, Tanami Road, Tiwi Island roads and the Roper Highway will also see upgrades from this money.

A further $24 million will go to building a rail overpass on the Stuart Highway, about 12kms south of Alice Springs.

“This is not a time to be splashing money around or increasing the tax burden on our economy or on hard working Australians and their families,” Mr Morrison told Parliament.

But the lack of any real, new spending initiatives in the lead up to the federal election surprised many.

Chief Minister Adam Giles said new funding outside of the $40 million in asset recycling money would have been welcomed but said he understands the Treasurer’s limitations.

“You’d always like to see new announcements, but everything they spend comes from debt,” he said. “That’s the challenge that they’re in and their debt is enormous thanks to Gillard and Rudd so they have to show fiscal restraint. Instead of doing what Labor would do and spend willy nilly and go into billions and billions of debt, they’ve been responsible and they’ve tried to invest in jobs. That’s what it’s all about.”

Last year, then-Treasurer Joe Hockey put forward the $5 billion Northern Australia Infrastructure Facility to help encourage major projects across the North. Mr Hockey called the region an “exciting frontier for economic development.”

He said the loan fund was the “first major step in our plan for our great north”. To date, the NT has not seen any of that money and last night Mr Morrisons’ budget speech contained no mention of developing the north.

Mr Giles said he was disappointed with the paltry $77 million in roads funding, but added the NT Government would now look at accessing the $5 billion NAIF money.

“At first glance, the road funding commitment is disappointing for the Territory and we’re seeking more information about specific programs,” he said. “The confirmation of $43.8 million over five years from 2016-17 to establish the Northern Australia Infrastructure Facility is welcome news. This will deliver up to $5 billion in financing to support economic infrastructure in Northern Australia. We’re determined to ensure the Territory receives our fair share of this funding.”

Chamber of Commerce NT chief executive Greg Bicknell said he was not surprised there was little money in the way of infrastructure spending. He said there had been moves for public and private investment in infrastructure in Northern Australia and still held out hope for further spending announcements in the lead up to the election.

Chamber of Commerce NT chief executive Greg Bicknell.

“We have a strong commitment for a very large defence spend and that is something in the pipeline,” he said. “Some additional funds would’ve been very good but we haven’t seen that. We are seeing funds where the population centres are and this being an election year is not entirely to be unexpected.

Mr Bicknell welcomed the tax cuts for small to medium-size businesses earning up to $10 million.

“This will move a lot more NT businesses into the lower tax brackets,” he said. “It has hit the sweet spot where the majority of businesses are concerned.”

Labor candidate for Solomon Luke Gosling called the Budget ”another disappointment”. “It’s also an indictment on Malcolm Turnbull, who’s clearly more interested in Sydney and Melbourne than he is Darwin and Palmerston,” Mr Gosling said. “There’s also no funding for major infrastructure in Darwin and Palmerston, showing Malcolm Turnbull’s complete lack of interest in the Top End.”

But current Member for Solomon Natasha Griggs said the tax cuts to small businesses and those earning more than $80,000 would go a long way to bring relief for working families.

“This tax plan backs hardworking Australians. It will also drive jobs and growth across the country, with real benefits for individuals and businesses here in Solomon,” Ms Griggs said.

It is expected that, with an election just two months away, spending in the Territory will come in the form of campaign promises.