NT government scuppers CLP motion to separate budget bills over scrutiny concerns

The NT government has scuppered a move by the CLP to split off the NT’s debt ceiling into its own stand-alone bill during a tense session in Budget Estimates on Thursday.

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THE NT government has scuppered a move by the CLP to split off the NT’s debt ceiling into its own stand-alone bill during a tense session in Budget Estimates on Thursday.

The CLP brought forward a motion in Estimates on Thursday to separate two pieces of legislation – one which outlines the latest Budget and one which outlines the borrowing limit.

The motion was knocked back by Labor without debate.

It comes after weeks of CLP criticism of the decision to include the $15bn borrowing limit within the 2021-22 NT budget.

Speaking in Estimates, Namatjira MLA Bill Yan said the introduction of both bills together amounted to the erosion of “scrutiny and transparency”.

“It should be cut out and considered … on the floor of parliament where it belongs,” Mr Yan said.

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Barkly MLA Steve Edgington said the bill “incorrectly” referred to the $15bn figure as a debt ceiling.

“It’s a cap on more borrowing,” he said. “There is nothing in that legislation that would prevent the $15bn ceiling from being increased.

“I can’t support a debt ceiling that is a ceiling only by name.”

Mr Edgington also said the bill didn’t include penalties for public servants who “breach the budget”.

In a statement released on Thursday, Opposition Leader Lia Finocchiaro said the combining of the two bills was part of a “sneaky plan” by the government to avoid scrutiny.

Opposition Leader Lia Finocchiaro. Picture: Che Chorley

“The Territory’s net debt currently sits at $7.7bn and is forecast to balloon past $9bn next year and to $11.4bn in 2024-25. Interest payments will increase to $1.3m every day over the same period and debt per Territorian will grow to close to $50,000,” she said.

An NT government spokesman said the $15bn figure was not flexible.

“The debt ceiling is being set at $15bn, excluding finance leases, and is a legislated hard ceiling,” he said.

“This will strengthen accountability for our long-term debt reduction goal and send a clear message to ratings agencies that the Territory is continuing its budget repair program.”