Revealed: The secret report that secured thousands of extra Territory jobs

For decades, NT businesses got short shrift when it came to securing Defence contracts - then suddenly that changed. Read why Defence now plays a major role in the NT economy.

Midway through the last decade, members of the Territory’s construction sector took it upon themselves to secure a better deal from the Commonwealth around local procurement for Defence projects.

A cabal of locals were involved in the advocacy – all under the umbrella of the major contractors group of MBNT – with then Master Builders chief executive David Malone leading the process, including negotiations with former Defence Minister Marise Payne.

In about 2015 Master Builders NT commissioned the ANU’s Chris Murphy from independent Economics to compile a report outlining the potential capacity for NT industry to deliver on major Defence projects.

Master Builders national media and marketing manager Ben Carter

Prior to the procurement changes, Defence construction packages were huge, some in the hundreds of millions of dollars.

The change that followed rewarded the big contractors for tailoring their sub-contracts to the local market and benefited every region in Australia.

The result, according to Master Builders NT chief executive Ben Carter, was an unprecedented surge in Defence project work awarded to Territory companies from about 30 per cent in the mid 2010s to about 70 per cent today.

“This increase is measured in thousands of local jobs in construction and right across the economy today,” he said.

Former Master Builders NT Chief Executive David Malone

Mr Malone, who retired from MBNT last year, said the success of Murphy’s report and Master Builders’ advocacy showed the Commonwealth was flexible if presented with a compelling, well-prepared argument.

“Crucially, and I think this is important for Territorians, we were told don’t bother advocating – no-one will listen – and its not worth the effort,” Mr Malone said.

“It was that self-defeatist element in the NT that actually spurred us on – we all felt that nothing comes from giving up, and the Northern Territory needs to put its case in Canberra just like every other state.”

This masthead understands another report is being prepared following the release of the Defence Strategic Review last April.

Robertson Barracks’ planned accommodation upgrade

With the United States’ pivoting back to the Indo-Pacific and China’s behaviour in the region increasingly bellicose, it was clear Commonwealth defence and strategic policy would again shift back to northern Australia.

The winners were local Territory businesses such as AKJ Services Pty Ltd which, like hundreds of other NT businesses, has included defence work in its growing civil works portfolio.

Owner and co-director Jessie Risk, for example, attended a 2021 information session hosted by Sitzler then contested – and won – a select tender to build an $8m state-of-the-art driving range at Robertson barracks.

The 4km circuit was the first completed package under the Australian-funded United States Force Posture Initiative infrastructure program, which also incudes the $747m NT training areas and ranges upgrade at Robertson, Kangaroo Flats, Mount Bundey and Bradshaw.

Senator Marise Payne NCA NewsWire / Martin Ollman

AKJ partnered with M & J Builders as well as Larrakia-owned start-up business JER Civil for grader services to deliver the driver training venue, which showed the broader economic impact of an $8m Defence spend.

“Defence has been a great opportunity and allowed our company to grow substantially and also allowed a Larrakia business to work on-country and employ our people and deliver some meaningful outcomes,” Ms Risk said.

And the bounty is expected to continue for years with the Australian Defence Force planning to spend up to another $3bn in the Territory in coming years and the United States government also bearing an open chequebook with estimates of $2bn spending planned over coming years.

Dick Guit, part of TeamNT and also former President of the Master Builders Association

The NT government also got on board, updating and releasing its Defence and National Security Strategy in February 2018.

In his role as a team NT executive, Dick Guit ensured a coordinated approach was used to promote greater local content and industry participation in Defence projects.

Defence, the Tiger Brennan Drive overpass, CDU’s Darwin City campus and remote housing and road projects are the Territory’s major construction drivers.

Australian Bureau of Statistics figures show construction work increased by 0.8 per cent from $712m to $746m in the June quarter, including a 6.7 per cent increase in building work.

While deftly avoiding a single mention of China, the NT government’s post-budget summary addressed the importance of the sector.

Robertson Barracks is due for a $400m accommodation upgrade

“Australia’s strategic outlook is changing due to the shift in global economic and political power to the Indo-Pacific region, which presents both opportunities and challenges,” it said. “In response to this changing dynamic, the Commonwealth is strengthening ties with allies and partners, increasing defence capabilities and re-prioritising its force posture.”

The Defence Strategic Review, released in April, prioritised infrastructure upgrades in the Northern Territory, even highlighting road blockages caused by flooding on the Stuart Highway as a potential threat to national security.

The report forecast “significant changes to army force posture and structure”, saying army combat brigades “may be re-rolled and select capabilities postured in Northern Australia”.

One of the report’s six key recommendations was to improve ADF capacity to operate from northern Australian bases.

Worryingly, the report identified that Australia lacked effective defence capacity against a high threat level and this could only be achieved by working with the United States and other partners to develop a positive regional environment.

The Japanese and British governments are also flagging joining the United States’ troop rotation in-and-out of the Northern Territory.