NT forecast to return to surplus in a decade after Langoulant report released
THE Territory wants to collect on a decades-old, $200 million debt to help get its Budget back on track
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THE Territory wants to collect on a decades-old, $200 million debt to help get its Budget back on track.
Treasurer Nicole Manison and Chief Minister Michael Gunner on Tuesday released former WA under-treasurer John Langoulant’s wide ranging inquiry into the NT’s fiscal position and the Government’s response to it.
The review made 76 recommendations, 68 of which have been accepted in full, six in principle or in part. Two were rejected.
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One of the accepted recommendations is to lobby the Commonwealth to pay back a 41-year old $200 million debt left over from the transition to self government, plus take on responsibility for $90 million a year in superannuation liabilities.
Previous Territory governments have tried and failed to convince the Commonwealth to pick up the tab.
“We will ask again, but we’re in Commonwealth hands on that one,” Mr Gunner said.
The review also recommended the Territory seek Commonwealth help to address its infrastructure deficit.
Federal Opposition Treasury spokesman Chris Bowen wouldn’t confirm if those measures were part of a Territory “support package” from a future Shorten Government, pledged by Labor’s Member for Solomon Luke Gosling last week, but he told the NT News he had been having “active discussions” with the NT Government about its needs.
The Territory estimates the collective measures flagged in the Langoulant review will save $11.2 billion across the next decade.
A separate review, which was also released on Tuesday, identified a further $1.4 billion in savings across the same period.
Updated Treasury figures predict net debt will peak at $8.8 billion in 2026/27.
The Territory will post a $1.15 billion deficit this financial year.
A surplus isn’t forecast until 2027/28, but Ms Manison said it was possible one could come “much sooner”.
Mr Gunner spruiked “tough new accountability measures” for department chief executives and ministers who oversee budget overruns.
Chief executives who repeatedly overspent could be sacked, Ms Manison said.
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A yet to be determined debt ceiling will be imposed from 2021 to cap borrowings, though the review notes it could be perceived as “largely symbolic” given Parliament doesn’t have an upper house.
But Mr Gunner said the cap would assure the Budget’s “long term structural integrity”.
Mr Langoulant said he was “very confident” the Territory’s Budget would return to surplus if his plan was adhered to.
Other measures include selling or leasing the Lands Title Office and its related IT system, the Integrated Land Information System.
Ms Manison said the Government had already received approaches from investors.
Ms Manison wouldn’t estimate how much its sale or lease would net, but said it would be an “attractive sum … tens of millions of dollars”.
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Opposition Leader Gary Higgins said that the toughest measures had been deferred until after the next election, meaning a future government would be lumped with carrying out the dirty work.
a surplus wasn’t forecast until 2027/28, but that it was possible one could come “much sooner”. She also said chief executives who repeatedly overspent could be sacked
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