Estimates: NT Treasurer Bill Yan reaffirms East Arm ship lift commitment

The Minister for Logistics and Infrastructure Bill Yan has reaffirmed the CLP’s commitment to the East Arm ship lift facility despite continued escalating costs.

Artist’s impression of the new ship lift at East Arm. Picture: Supplied

The Minister for Logistics and Infrastructure Bill Yan has reaffirmed the CLP’s commitment to the East Arm ship lift facility despite continued escalating costs.

Mr Yan, who is also the Treasurer, told the Budget Estimates committee there was $305m in the 2025-26 and 2026-27 financial years to continue the development of the ship lift facility.

The project at East Arm has seen significant delays and cost blowouts since it was announced close to a decade ago and the Finocchiaro Government is having the project investigated because of ballooning costs.

Originally announced by the former CLP Government in 2015 as a $100m project, the cost blew out to $400m under Labor in 2019, and again to $515m in 2022.

However Mr Yan told Budget Estimates the new ship lift facility would be a large asset to the Northern Territory.

Chief Minister Lia Finocchiaro and Treasurer Bill Yan.

“It will help with our economic growth within the maritime industry, supporting not just the Territory’s maritime industry, but those in northern Australia and of course out into Asia,” the Treasurer said.

“We are working closely with Defence so that they are able to use the facility as well.

“It will be a cornerstone of our economy in the Top End moving forward.”

Mr Yan also confirmed the Territory’s forecast budget debt going forward.

While this financial year the net debt is forecast to drop from $10.8bn to $10.5bn, by 2027-28 net debt is forecast to reach $13.5bn – an increase of $1.2bn as a result of the current budget plans.

Mr Yan also said the majority of the Infrastructure Budget was funding pre-existing initiatives and programs from the previous Labor government.

“It is devoted to projects already underway and can’t be stopped. Programs that would cost more money to cease than it would be to continue them and expose the Northern Territory to legal costs,” Mr Yan said.

He also fired a warning shot across the bows of government executive bosses about budget management.

He said the implementation of the government’s single, integrated budget management system, Sage, is expected to be fully completed its rollout by the end of the year.

The single integrated budget management system for NT Government agencies, provides cost centre level budget allocation and expenditure tracking.

Sage will deliver significantly enhanced reporting capabilities for agencies.

Mr Yan said there will be a requirement to strengthen budget responsibility by CEOs.

“Within the Executive CEO code of conduct there is a framework that assesses agency budget performance and compliance,” he said.

“Throughout the year Treasury will monitor agency performance and their compliance.”