Territory Alliance to back fracking, says Mills

Territory Alliance leader Terry Mills said his party would back fracking in the NT for the foreseeable future, but it is not the solution to saving the NT’s economy.

Territory Alliance’s Terry Mills said his party would back fracking in the NT for the foreseeable future. Picture: Glenn Campbell

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TERRITORY Alliance leader Terry Mills said his party would back fracking in the NT for the foreseeable future, but it is not the solution to saving the NT’s economy.

In an editorial written for the Sunday Territorian, Mr Mills said although more environmentally friendly energy sources like solar and hydrogen will become economically viable in the future, he supports fracking for the “medium-term.”

“The economic and environmental benefits of gas are why a Territory Alliance government will permit the onshore gas industry (‘fracking’) to continue for now, but only under the strictest environmental standards and only with the gas industry paying for all compliance,” he said.

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Mr Mills said moving away from onshore gas now would destabilise the industry, noting that former Labor Chief Minister Paul Henderson in 2009 signed a deal to supply the NT with gas until 2034.

“Few know that the NT government has signed up to pay for a continued gas supply from current ENI production near Wadeye (Port Keats) until 2034,” he said.

“That means the NTG must pay for the gas for the next 14 years even if we don’t use it.

“If onshore gas is a viable industry in every way, then we should welcome it as a part of our economy.

“To do otherwise would send a message of uncertainty and governmental incompetence to all businesses right at the time when the NT is most in need of additional business investment.”

However, with fracking likely to contribute to only one per cent of NT Government revenue, Mr Mills said it is not “the ‘silver bullet’ to save the NT economy.’”

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Instead, he proposed a gradual shift to renewables, as well as a Sovereign Wealth Fund from gas royalties.

“Territory Alliance has set a sensible target of at least 30 per cent of the Territory’s electricity to come from renewable energy sources by 2030 and up to 90 per cent by 2050,” he said.

“Territory Alliance will also establish a Sovereign Wealth Fund from gas royalties to be managed by an independent Board to invest in businesses to further grow the NT economy. “The Sovereign Wealth Fund could be a game changer for the NT’s future prosperity.”