NT debt jumps by another $60m after public servants quietly receive pay rise

THE Northern Territory debt has increased by close to $60 million with public servants quietly receiving a pay rise

• NT Government debt to hit $8.2 billion by July next year
• Editorial: The NT’s dire debt crisis gets even deeper

THE Northern Territory debt has just increased by close to $60 million with public servants quietly receiving a 2.5 per cent pay increase.

There are about 21,000 full-time equivalent public servants in the NT but many public servant employees work part-time, so the real number is believed to be far higher.

A report in The Australian last month said the actual number of NT public servants is almost 35,000.

MORE POLITICAL NEWS

NT News poll: Who is your preferred treasurer after the Territory election?

Manison emerges from shadows for Labor campaign launch

CLP considering police action after campaign turns ugly on weekend

The wage bill for the Territory’s public servants is about $2.7 billion with a super bill of around $400 million on top of that. The pay increase for the Territory’s public servants goes against a recommendation by the Northern Territory Government’s Budget Fiscal Repair financial consultant John Langoulant, who is a former WA Under Treasurer.

Mr Langoulant’s biggest cost-saving measure put forward in his report this year to the NT Government was that all public service pay rises be capped at $1000 across the board.

MORE ON THE LANGOULANT REPORT

NT ‘not a viable fiscal unit’ even before COVID-19, economist says

Analysis: Budget repair has familiar ring of failed promises

NT forecast to return to surplus in a decade

However, the government has ignored that recommendation with Chief Minister Michael Gunner saying it is not part of his active plans.

Mr Langoulant said addressing the emerging gap between public and private sector wages in the Territory would take time given the majority of NT public servant enterprise agreements were locked in for the next three years.

“Nonetheless, restraining NTPS wages growth could contribute significantly to budget repair over the medium term and lessen the need to reduce staff numbers,” he said.

The pay rise goes against the recommendations for former WA Under Treasurer John Langoulant.

“It would also ease the burden placed on Territory businesses to compete with the NTPS’s more generous wages and conditions.”

LIMITED TIME – Discounted NT News subscription: Read everything for $1

The Property Council Northern Territory Division Implement is among key business groups that have called for all recommendations under the Langoulant Report, A plan for budget repair, to be implemented.

It says a strong culture of budgetary discipline and responsible fiscal management must be developed.