Treasurer Nicole Manison wants Territorians to help fix budget blowout

THE Northern Territory is in an unprecedented budget crisis and its annual interest bill will hit $2 billion a year and net debt will reach $35 billion by 2029-30 unless the Government reins in its spending, according to its own forecasts

THE Northern Territory is in an unprecedented budget crisis and its annual interest bill will hit $2 billion a year and net debt will reach $35 billion by 2029-30 unless the Government reins in its spending, according to its own forecasts. Picture: KERI MEGELUS

THE Northern Territory is in an unprecedented budget crisis and its annual interest bill will hit $2 billion a year and net debt will reach $35 billion by 2029-30 unless the Government reins in its spending, according to its own forecasts.

The situation is so dire the Government is borrowing money to pay the salaries of public servants and to service the interest on its debts.

Treasurer Nicole Manison yesterday released her “plan for budget repair” which contained no plan further than an ambition to rein in expenditure growth to 3 per cent per annum. It is currently at 6 per cent per year.

She said she wanted the public to comment and come up with ideas on how to address the looming budget meltdown.

While Ms Manison couldn’t present options of what she would do to dig the Territory out of its fiscal grave, she had a long list of things she would not consider.

“This is not about a slashing and burning cost cutting exercise,” she said.

“We will not be going down the pathway of sacking public servants, slashing services, hiking prices around power, water sewerage … and selling off public assets.”

Ms Manison will make a mercy dash to Canberra next week to beg Treasurer Josh Frydenberg for a bailout.

The funding formula used to allocated Commonwealth revenue to the Territory needed to change, she said.

When asked why she was abrogating her responsibilities as Treasurer to the public, Ms Manison said governments “shouldn’t go out and make decisions like this in isolation”.

“I think the best decisions are made when you talk to industry about where they think priorities need to be laid and what they see on the ground from an industry perspective,” she said.

“Experts” would also be called in to comment.

Ms Manison continued to blame the recalculation of GST relativities for the blowout.

Last April, Ms Manison promised to cut 250 public service jobs over the next five years through a hiring freeze. Since then, the public service has expanded by 293 full time jobs.

“We are facing some of the biggest fiscal and economic challenges the Territory has ever seen.

Deputy Opposition Leader Lia Finocchiaro said Ms Manison and Chief Minister Michael Gunner should resign for their “economic mismanagement” and reckless spending.

“It is disgraceful, it is scary and the Government should be ashamed of what they’ve done to the Territory’s finances,” she said.

The Chamber of Commerce NT warned about the Territory Government’s increasing debt several months ago.

At the time its chief executive Greg Bicknell expressed concern about the level of Government borrowing.

“When you talk about good economic management that is required going forward the Territory Government cannot borrow its way to prosperity,” Mr Bicknell said.

“The borrowing and debt has to be paid for at some stage.”