Northern Territory must boost economy or risk going broke

Northern Territory Chief Minister Michael Gunner. Picture: Che Chorley

After years of self-indulgent bickering, the Northern Territory’s major parties are finally on the same page.

Australia’s Asia-facing jurisdiction needs to get off the handouts and develop a private sector-led economy based on energy, resources and defence.

The pandemic makes this urgent. The territory was borrowing to pay operating expenses before coronavirus hit. Without fundamental changes now, it will go broke.

Point-scoring between Canberra and Darwin has, for now, been replaced by national cabinet co-operation. And the recession should increase the reformist zeal, because developing the north is in Australia’s strategic interests.

The latest announcements from AUSMIN confirm the Top End’s growing importance to the US alliance.

A local development push is being led by a group including luminaries such as Darwin-born former Dow Chemical chair Andrew Liveris and former Westpac boss Gail Kelly. Crucially, their priorities appear to align with Canberra’s and to have cross-party support.

The territory has fumbled numerous opportunities and there are no guarantees this time will be different. But the pandemic will drive people out of cities, incentivise growth-boosting investments and heighten the need for stronger sovereign capabilities.

Where better to look afresh than the territory, with its vibrant population and comparatively cheap housing?