Govt ‘support’ for private sector needed for NT economy to achieve lofty $40bn goal: Deloitte Access Economics report

THE private sector will shoulder the ‘burden’ of turning the Territory into a $40bn economy within a decade, but the cash-strapped NT government will need to step in with support to make it happen, according to a new economic report.

THE private sector will shoulder the “burden” of turning the Territory into a $40bn economy within a decade but the cash-strapped NT government will need to step in with support to make it happen, according to a new economic report.

The Deloitte Access Economics report, released yesterday, is upbeat about the Territory’s economy being better than anticipated.

But the “ambitious target” set by the government for the NT to become a $40bn economy by 2030 will require “a significant step change across multiple industries and co-ordinated action across the Territory”.

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Deloitte economists say the burden of achieving this goal will fall primarily to the private sector because the NT government is “heavily constrained and limited with its spending”. While low interest rates will help the private sector forge ahead, Deloitte reckons the government will need to step in with support if it doesn’t want to lose the investment to other jurisdictions.

Chief Minister Michael Gunner said the report referred to “support”, which could take forms other than financial.

Chief Minister Michael Gunner. Picture: Che Chorley

Pointing to recent initiatives like the government’s $10m spend to make the business approval process easier and a joint-investment with the Commonwealth to upgrade roads around the Beetaloo Basin, Mr Gunner said the government was “determined to turn this crisis into an opportunity for the Territory”.

Overall, the economic outlook for the Territory, according to Deloitte, is rosier than previously expected, with the next few months to “provide a lot more certainty”.

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Citing success on the health front, Deloitte found the NT economy “had so far weathered the pandemic markedly better than might have been expected at the start of last year”.

“Housing construction has been supercharged over the last six months. Buoyed by a number of government grants, low interest rates and increased demand from interstate, NT’s housing market has gone from strength to strength,” it stated.