Something’s happening in the NT economy, and for a change it’s all good news

Is the Territory economy turning the corner? Multiple business sectors think we are and now a leading economist and adviser to business and government has joined the chorus that say there is evidence to suggest we are.

IS the Territory economy turning the corner?

Certainly multiple business sectors think we are, and now a leading economist and adviser to business and government has joined the chorus of those who say there is a body of evidence to suggest we are.

Ian Satchwell, former NT government executive director of economic and environmental policy, says something’s happening in the Territory economy and for a change it’s all good news.

Mr Satchwell says all the indicators point to a third quarter in a row of strong growth in economic activity after a horror period of decline.

MORE TOP NEWS

EXCLUSIVE: Iconic outback lodge flagged for major transformation

Qantas adds more flights into Darwin, Uluru by popular demand

Buyers flashing cash in ‘alternative’ areas after top dollar sales

Mr Satchwell points out that before the start of the turnaround in the second half of 2020, the Territory slumped to its lowest level of economic activity in more than 10 years.

“This was after two years of decline,” Mr Satchwell told the NT News.

“While Territorians were protected from the pandemic, the economy got flattened. Investment and consumption both tanked.”

He says that’s changing fast.

“Territorians can see the visitors, feel the buzz and bask in what has been a cracker start to the dry season,” he said. “They’re obviously feeling pretty good: spending at shops, cafes and pubs; building and renovating houses; and working hard.

Ian Satchwell.

“What will hold us back, though, is a shortage of people to provide their skills and boost the population, and shortfalls in infrastructure needed to support growth.”

Mr Satchwell says these key indicators are pointing the economy in the right direction:

•Housing values in Darwin are rising faster than any other capital city and many regional ones.

•Territorians are spending big on new houses and renovations, with $91 million worth of building works approved just in March.

•Retail spending is at an all-time high, with Territorians outlaying a dizzying $1.8 billion over the past six months.

•The number of jobs and amount of wages paid in the Territory are now higher than when the pandemic began. The unemployment rate fell to just 3.8 per cent in April, the lowest in the nation.

•Investment in mineral and petroleum exploration is expected to increase from the recent average of $290 million a year. That means it’s likely that resource companies soon will be investing well in excess of $300 million a year just on exploration in the NT.

•NT agricultural production hit a new record last year – nearly $1 billion, not including food processing, fishing and aquaculture.

Mr Satchwell says that, significantly, all this is happening before the Territory starts hosting big new construction projects again.

“That may be a good thing, given the growing shortage of workers,” he said.

“Diversity of work without overheating helps the Territory grab hold of the opportunities while building up its capacity.

“Some smaller projects are proceeding while others are getting close to investment decisions. Australian and US governments are spending on new and upgraded defence facilities, with more to come.

“The NT News jobs pages have advertised skilled jobs at the Core Lithium project, located conveniently close to Darwin, indicating it is close to final investment decision.

“BHP has just taken a stake in the promising Elliott copper exploration project, while the Australian government is supporting the Nolans rare earths project.

“Development of the offshore Barossa gas field is about to kick off, with associated refurbishing of the Darwin LNG plant. Onshore gas exploration is ramping up, with five companies active this year.

“In the medium term, we can expect several new mining projects to proceed, new gas developments and new investment in agriculture and aquaculture.

“Longer-term, the options are exciting: large-scale manufacturing using gas and renewable energy, expanded energy exports including hydrogen, carbon management, new agribusiness and high-value visitors.”

Mr Satchwell is a fan of the Territory Economic Reconstruction Commission’s (TERC) report.

“Some may see the work of the Territory Economic Reconstruction Commission is yet another plan that will gather dust,” he said.

“The TERC report is worth a read. It’s good stuff! What matters, of course, is the execution of the plan.”

Mr Satchwell said there needed to be serious commitment to infrastructure investment.