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| Madam Speaker, I move that the bill be now read a second time. I table the 2011-12 Appropriation Bill and related papers. Budget 2011-12 has at its centre, quality and affordable services to support Territory families to get ahead. It also builds on opportunities so that we are positioned for the next stage of economic growth in the Northern Territory. Budget 2011-12 is a very tight budget developed in an environment of constrained revenues but increased service demand. We have responded with a budget which is responsible and responsive to the needs of Territory families and businesses. For a Labor government, quality and affordable health care and education are a key priority and we deliver record investment in these areas. The budget delivers on law and order, targeting the scourge of alcohol misuse, related crime and antisocial behaviour through the Enough is Enough reforms, the second stage of the Growing them strong, together child protection reforms, the important new era in Corrections reforms, A Working Future, and our Territory 2030 targets. While Australia and the Territory dodged the worst of the global financial crisis, its effects continue with further reduction to GST revenues, limits on credit affecting business activity and, as a consequence, the Territory’s own-source revenue. Territory businesses have felt the lingering effects of the GFC with more cautious consumer behaviour and tightened credit markets. Budget 2011-12 keeps infrastructure spending at historically high levels, with $1.5bn to continue to create and support Territory jobs and the broader economy, and to private sector investment returns to more usual levels. Affordability for Territory families and businesses is a feature of Budget 2011-12 with power concessions, childcare subsidies, seniors, Pensioner and Carer Concession Scheme funding, and home buyer assistance to help Territory families tackle the cost of living pressures. Budget 2011-12 also delivers early on the Labor government’s commitment to slash payroll tax ensuring the Territory remains the lowest taxing jurisdiction for small to medium businesses in the nation. Budget 2011-12 helps Territory families get ahead. It builds on opportunities and positions the Territory for the economic boom times that are just around the corner. Australia and the Territory were both impacted by the once in a generation economic downturn, the global financial crisis, though both economies performed remarkably well under the circumstances. The Territory economy was initially shielded from the GFC by a number of major projects that were already approved and financed in 2008-09. However, in 2009-10, economic growth in the Territory slowed as several major projects reached completion and there was an absence of new major projects in a credit-constrained post GFC world. Our government has a strong economic record, having delivered eight consecutive budget surpluses, positioning us well against the challenges of the GFC. In response to the GFC, our government took a deliberate decision to go into deficit, to fund record infrastructure investment, to inject stimulus into the Territory economy to support jobs. The decision has paid off with economic growth in the Territory estimated to have strengthened to 2.2% in 2010-11 due to significant increases in public sector investment and consumption, which are expected to have more than offset a decline in private investment. Throughout this period, Territory businesses have remained among the most confident in the nation and the Territory’s unemployment level reached the lowest in Territory history. And, importantly, since the GFC more than 12 000 jobs have been created, with about 90% of these full-time jobs. The global economy continues to recover from the GFC crisis. However, despite strong headline figures, growth is expected to remain uneven with emerging economies including China, India, and Indonesia forecast to grow significantly faster than developed economies, many of which continue to struggle with high rates of unemployment. Strong growth in emerging economies is expected to sustain commodity demand and prices at high levels, and drive mineral and energy exploration and development in Australia and the Territory. Strong demand and higher prices for commodities has already resulted in increased exploration and expansions to several mines in the Territory. Higher demand for the Territory’s mineral and energy exports from emerging economies underpins the Territory’s forecast economy growth rate of 3.2% in 2011-12. This is slightly more conservative than the Deloitte Access Economics economy growth forecasts which set the Territory as the strongest economy performer in the nation in 2011-12 at 5% growth, an equal first with Western Australia on average over the next five years. Household consumptions remained relatively subdued in 2010-11 following increased interest rates and a higher propensity to save among households. It is forecast to increase by 2.1% in 2011-12 as stronger employment, population, and wage growth improves consumer confidence. This is expected to provide a much-needed boost to the Territory’s retailers. Employment growth is forecast to strengthen to 2.8% in 2011-12 reflecting improved economic growth and increased construction activity. Construction is expected to increase due to the major oil field developments of Montara and Kaitan in the Timor Sea, as well as stronger residential construction growth in the later half of 2011-12 following the Territory’s accelerated land release in Palmerston East. The average unemployment rate in the Territory is forecast to remain at historically low levels at 3%. The Territory’s population growth is forecast to remain at 1% in 2011, influenced by the seventh RAR personnel relocating down south before strengthening to 1.8% in 2012. The increase in 2012 reflects stronger employment growth arising from increased private sector investment and residential construction activity, as well as increased Defence personnel. Inflation is forecast to moderate to 2.3% in 2011, dampened by an appreciation of the Australian dollar before strengthening to 2.6% in 2012 as household consumption and economy growth strengthens. However, the impact of severe flooding in the eastern states and Cyclone Yasi may result in a spike in food inflation in 2011. These forecasts do not take into account the effect on the Territory economy of the INPEX final investment decision, which is expected by the last quarter of 2011. This is an enormous project with expenditure in excess of $20bn. The Henderson government has guided the Territory through tough economy times and placed the Territory economy on a firm foundation. Budget 2011 positions the Territory to build on opportunities through strategic infrastructure projects and fiscal management to take advantage of our economy potential for Territorians. In 2010, the prevailing view was that Australia was beginning to emerge from the effects of the GST. However, as the year developed, a range of economic data indicated that recovery was not as strong as expected. In addition, over recent months, a number of regions in Australia, New Zealand and Japan have experienced major natural disasters, resulting in lower business and trade activity, and contributing to lower levels of confidence. Australians are more cautious than before, saving more and investing less. These factors have had a marked effect on the Territory’s main revenue source, the GST, as well as our own-source revenues. Since the 2010-11 Budget, the national GST pool was revised down in November by $600m when the Commonwealth released its Mid-year Economic and Fiscal Outlook Report. Since that time, a number of indicators of consumption, as well as construction activity, have further slowed. GST collections to date are substantially lower than expected and consumer spending patterns indicate that a greater proportion of spending is being directed towards items that are not subject to GST, such as health, education, housing and food costs. Accordingly, GST revenue has been revised down further to a total of $2.1bn in 2010-11, with significantly lower growth rates in 2011-12 and all forward years. The combined effect results in a loss to the Territory of $137m in 2010-11, and $27m in 2011-12, compared with the 2010-11 Budget. The loss in 2011-12 was lower due to the effect of the Commonwealth Grants Commission 2011 update which recommended an increase in the Territory’s relativity. Own-source revenue has also reduced, predominantly stamp duty on property transfers, as the result of a lower level of activity in the real estate market. The government has made a number of substantial expenditure commitments to important areas of service delivery, notably the new era in corrections, the Growing them strong, together child protection reforms, and the enough is enough alcohol initiative, all of which have added to expenditure in 2010-11 and over the forward estimates. The resulting effect is a total budget of $5.3bn in 2011-12, an estimated cash deficit of $295m for 2010-11 and $397m for 2011-12. Although the cash deficits are reducing over the forward estimates, the lower GST revenue will make the return to surplus more prolonged. In response to this challenge, the government has constrained expenditure in the budget and forward estimates. The staffing cap was put in place in the last budget and achieved for the March 2011 quarter when increases in child protection staff are excluded. We will continue to savings measures for the 2011-12 Budget through reprioritisation of 2% of agency output appropriation towards new initiatives or demand growth, increasing the efficiency dividend to 3% in 2011-12, and continuing the staffing cap. The staffing cap has been adjusted only where significant new programs have been funded. Total infrastructure spending in 2011-12 is $1.5bn, with a budget sector capital works program of $1.2bn; repairs and maintenance spending of $219m; and infrastructure-related grants of $117m. The Power and Water Corporation is estimated to spend $375m on infrastructure in 2011-12. These amounts are slightly lower than 2010-11 because the Commonwealth stimulus funding is almost at an end. However, Territory spending remains well above the long-term average and higher than last year, in line with our commitment to boost infrastructure spending to maintain Territory jobs and growth until private sector investment returns to more usual levels. The continuation of high levels of infrastructure spending has contributed directly to the cash deficits in the budget and forward estimates. The nett debt to revenue ratio is estimated to be 32% in 2011-12, rising to 47% in 2014-15; while the ratio of nett financial liabilities to revenue is estimated to be 102% in 2011-12, rising to 119% in 2014-15. These are below the 2001 debt ratios. Mr Elferink: It is not what you promised. Ms LAWRIE: Budget 2011 has met the Territory’s fiscal strategy targets by ensuring that growth in operating expenditure is less than revenue growth. That there is significant infrastructure investment to maintain territory jobs, a competitive tax environment, and prudent management of liabilities. The Henderson government has made helping Territorians to buy their own homes a key priority. Build bonus is a new grant program that will be available from today until 31 December this year. It is specifically designed to encourage the construction of new affordable housing by providing a one-off $10 000 grant to purchasers of a new home up to the value of $530 000, including off the plan purchases. Build bonus will be available for new construction that commences after today. Build bonus will complement the Home Start NT Program, where income and price caps in all regions have been increased, and will encourage more building in new land release areas, as well as the development of more unit complexes across the Territory. From 1 July 2011, stamp duty rates for property transfers of $3m or more will increase from 4.95% to 5.45% and is estimated to raise $2.3m. Even with this increase the maximum stamp duty rate for property of this value remains lower than the ACT, NSW, Victoria, and South Australia. The government committed in the 2008 election to reduce its payroll tax from 5.9% to 5.5% by 2012. This commitment is being brought forward to commence on 1 July 2011, and will benefit all payroll taxpayers and ensures the Territory continues to be the lowest taxing jurisdiction for small to medium-sized businesses. The payroll tax threshold will be increased on 1 July 2011 from $1.25m to $1.5m, removing 40 small Territory businesses from the requirement to pay payroll tax. We will also be adopting a similar system to that used in Queensland where the $1.5m annual deduction is reduced by $1 for every $4 in wages paid above this amount. This means that when total wages exceed $7.5m, no annual deduction is received. Although not a revenue source for government, motor accident compensation contributions will rise in line with CPI increases, consistent with the new arrangements we have put in place for the scheme earlier this year. The Territory government’s commitment to significantly increase infrastructure spending through the global financial crisis has protected and created jobs. Budget 2011-12 continues to invest heavily in the Territory’s future with $1.5bn for infrastructure. We are investing in more roads and housing, and better schools and hospitals across the Territory. Roads continue to be a vital part of the Territory’s budget with $307m for roads infrastructure, including an increase of $14m for Territory roads, repairs and maintenance to fix our roads following record rainfalls we have experienced this year. This estimate is likely to be revised when a more comprehensive assessment of the flood damage is received. Improving bridges and flood immunity across the Territory is a focus of the roads budget with $56m for the Port Keats Road and new bridges over the Daly River, Central Arnhem Road, King River, and Cullen River Bridges and flood immunity programs in remote areas. 2011-12 will see the completion of the Tiger Brennan Drive extension project with a rail overpass on Berrimah Road. There are also improvements for our national network roads, particularly the Stuart Highway. The Territory government continues the investment in Power and Water assets with $1.8bn over five years, including $375m in 2011-12 to meet increased demand and improve reliability. Land release is important to grow the Territory. Budget 2011-12 invests $20.3m for headworks to continue the release of land in Palmerston East; $13.5m for headworks to service the new suburb of Kilgariff in Alice Springs; $6m to continue sealing Jenkins Road; and $950 000 to continue investigative studies for the new city of Weddell. We are also growing the Territory through increased economic infrastructure, with $5m to facilitate the development of a marine supply base which will support major economic development projects including the Ichthys LNG project. In addition, $28m is provided for industrial land release. The successful Bringing Forward Discovery program has been extended in Budget 2011-12, with an $11.4m three year investment to stimulate mineral and petroleum exploration and attract exploration investment into the Territory. The centrepiece of Budget 2011-12 is the $67m five year program package for the Enough is Enough alcohol reforms which aim to tackle alcohol misuse and reduce alcohol-related crime and antisocial behaviour. Enough is Enough will target problem drinkers to turn them off tap and mandate treatment supported by $10.9m in 2011-12. Alcohol misuse costs our community an estimated $642m per year across health, policing and justice, as well as lost productivity across our economy. The Henderson government will invest $5.2m to enhance alcohol treatment and rehabilitation options and establish new services to meet the demands of people with significant alcohol problems – the first tranche of a $34m boost. The banned drinker register and ID scanners will cost $4.7m to roll-out across the Territory; without it problem drinkers will continue to access alcohol costing our community so much more. Budget 2011-12 also invests $1m to establish the Alcohol and Other Drugs Tribunal and SMART Court to support the alcohol reforms. The government’s commitment to improving safety for Territory families delivers a record Police, Fire and Emergency Services budget, up $15m to $328m, and a capital budget of $50m. The investment in police beats increases to $7.4m in Budget 2011-12 with offices in Alice Springs, Katherine, Casuarina, Palmerston, Parap, Nightcliff, and soon Karama. $1.3m is provided to improve the capacity of the forensic science branch, with a further $1.2m for a new laboratory and office accommodation. $1.7m, an increase of $600 000, delivers enhanced CCTV services to Darwin and Alice Springs. Budget 2011-12 will see the construction of the new $12.3m Berrimah Fire Station commencing, with additional funding of $5.4m to resource the Fire and Rescue Service. The new fire station will improve response times to Darwin, Palmerston and the East Arm Port, and will include an urban search and rescue storage facility and facilities for Darwin’s Emergency Services volunteer unit. Budget 2011-12 steps up the five-year $120m investment to implement initiatives under the new era in Corrections, including $8.5m in 2011-12 for alternative sentencing options for our non-violent offenders. Work will also commence on the new Darwin Correctional facility with $27m for initial headworks. Budget 2011-12 again delivers on affordable housing initiatives for Territorians. The build bonus scheme I announced will provide incentives for new homes and assist affordable unit developments to meet the tightened post-GFC finance commitment levels. Homestart NT provides further assistance to help low- to middle-income earners gain access to the property market. Both the income limits and price caps have been lifted, with an increase in Darwin and Palmerston price cap of $55 000 to $530 000, an increase of $50 000 for Alice Springs to a cap of $435 000, and increases in other regional centres. Budget 2011-12 also sees the establishment of the Territory’s first affordable housing rental company to provide rental housing assistance for low- to middle-income earners at below market rent. The housing infrastructure program in Budget 2011-12 is $539m and delivers urban and remote public housing, land servicing, and government employee housing. This budget continues the $49m commitment to build 150 new homes over three years, including the Larapinta and Bellamack seniors villages, and 42 one- and two-bedroom units. A total of $6.8m of Territory and Commonwealth funding will support homelessness through managed short-term accommodation in Alice Springs and Darwin, including the Percy Court Transitional Village in Alice Springs housing up to 70 people, and Crerar Road facility in Berrimah providing 78 beds. Protecting our children and supporting Territory families is a key priority for this government. Budget 2011-12 continues the significant investment of $130m over five years for the Growing them strong, together outcomes, with $25m in 2011-12. The government continues to support Youth at Risk with $1.3m to support three youth camps across the Territory, and $300 000 to develop a response for young people at risk of homelessness in the Palmerston area. There is also $3.7m for Stage 2 of the Alice Springs Youth Action Plan to get young people in Alice Springs back to school and away from antisocial behaviour and crime-related activities. Budget 2011-12 sees the implementation of the second stage of the secure care package, with $11.4m to construct two 16-bed group home facilities in Darwin and Alice Springs. There is also $3.5m for safe places upgrades in 15 remote communities. Budget 2011-12 delivers a record $930m for quality and affordable education and training to support improved educational outcomes and help more Territorians into jobs. We have, in partnership with the Australian government, upgraded every school across the Territory. Budget 2011-12 continues this focus with $110m to build and maintain our schools, including $7.2m to complete the Henderson government’s four-year initiative to upgrade every primary and group school. There is a $19.4m boost to special education to upgrade and relocate Nemarluk School to Alawa, and upgrade Taminmin College, Palmerston Senior College, and Henbury School, and continue works at Acacia Hills School. Budget 2011-12 supports more than 3000 teachers with additional funding of $1.2m to establish up to 50 specialist teacher positions, and a further $1.2m to provide additional classroom support in Transition classes. In partnership with the Commonwealth, Budget 2011-12 delivers: · $16.4m to build and $4.8m to operate four Children and Family Centre services; · $10.57m Strong Start, Bright Futures investment to support improved outcomes for Indigenous students incorporating Closing the Gap funding, and $2.57m from the low SES national partnerships; · $5.9m to ensure that by 2013 every child will have access to a preschool program in the year prior to full-time schooling; and · $2.3m to continue enrolment and attendance initiatives under the Every Child, Every Day strategy. Under Labor, more than 100 young Indigenous Territorians in remote communities have completed Year 12 due to continued investment in remote education. Budget 2011-12 also delivers for apprentices and trainees, with $1m per annum to enable 10 000 apprentice and trainee commencements between 2009 and 2012. Since 2005, more than 15 500 Territorians have commenced a traineeship or an apprenticeship. We are delivering $900 000 for the Work Ready program to increase access to apprenticeships and traineeships; $800 000 is provided under Jobs NT 2010-12 for financial incentives for eligible employers to encourage apprentice and trainee jobs in occupational shortage areas and for disadvantaged groups; $250 000 continues to provide vocational education and training and work experience programs for students in the middle years of schooling, especially Indigenous young men. To support Territorians taking up a trainee or apprenticeship, Budget 2011-12 continues the $1.3m Work Wear, Work Gear bonus scheme, providing up to $1000 towards start-up tool and training costs, helping Territorians to get ahead. Investing in the health of all Territorians through quality and affordable health services is a key priority of this government. Budget 2011-12 delivers a record $1.1bn to improve hospital and primary health care services, including $525m for better hospitals. Health infrastructure investment is $193m and includes $20m for a new Emergency Department for the Alice Springs Hospital; $3.3m for upgrades at Tennant Creek Hospital; and $9.5m for Emergency Department and operating theatre upgrades at Royal Darwin Hospital. We recognise Royal Darwin Hospital is one of the busiest in the nation. That is why we fund the most beds per capita in the nation, and we have continuously upgraded facilities with a new Emergency Department, Rapid Admission and Planning Unit, new maternity facilities, expanded wards and upgraded theatre facilities. We have also increased funding to create 677 more nurse positions and 208 more doctor positions across the Territory, including 326 extra nurses and 132 extra doctors at Royal Darwin Hospital since 2002. Budget 2011-12 continues to invest in improving Royal Darwin Hospital and for patients and the 2000 staff that work there. The Territory government is delivering new initiatives to support people with a mental illness, with $1.6m for additional child and adolescent mental health services, and $1.5m to manage members of the community with exceptional and complex needs. A funding boost of $3m is provided to St John Ambulance to increase the emergency road ambulance and medical transportation services. The health of remote Territorians will be improved with an additional $2.5m to continue implementing coordinated patient care and services for Indigenous patients with chronic conditions. A $2m contribution for a new health centre at Umbakumba and an additional $3m to expand renal services in the Top End also delivers improved health care. As a result of significant funding increases to primary health care and increasing access to health services, we are seeing improvement in health outcomes. Life expectancy for Aboriginal woman has improved by three years and the infant mortality rate has fallen by 35%. With significant boost to renal services over many years, particularly in regional and remote areas, survival rates for Territory renal dialysis patients are now the equivalent to the rest of Australia, an improvement of seven years. The government’s A Working Future strategy aims to improve the lives of Territorians living in remote areas. Budget 2011-12 delivers $633m for remote infrastructure across the Territory. An important new initiative in this budget is a three-year $30m Indigenous employment package for shire councils to support core local government service delivery. This initiative includes additional Territory funding of $8.4m, with the Commonwealth contributing $1.6m per annum. This package will see an additional 530 Indigenous jobs being supported across our shires. There is $17.8m for the new gas fire Wadeye Power Station. Getting technology into our remote areas is a key element to improve the lifestyle and opportunity for Territorians living there. Budget 2011-12 includes $6.6m as part of a three-year $16.4m funding package for the Digital Regions Initiative National Partnership Agreement to provide enhanced services to Territory growth towns, including video conferencing, telehealth for clinicians, and e-learning initiatives for students and employees. $1.15m is provided to implement the second year of regional area bus trials; $1m grants to support the reporting officer function in remote communities with aerodromes; $10m for airstrip upgrades, and $4m for improved barge landings. The $1.7bn 10-year national partnership agreement on remote Indigenous housing continues this year with $387.7m to construct new housing, upgrade existing housing, and provide associated infrastructure in remote Indigenous communities. To improve educational outcomes for Indigenous students as part of A Working Future, Budget 2011-12 includes a $3.5m contribution to an $8.69m investment to continue and expand virtual very remote early childhood integrated service hubs and Families as First Teachers programs; and $3.18m to continue and expand student engagement programs such as Clontarf Football Academy to at least 13 sites and Sporting Chance at six sites. Training programs are also enhanced in the Territory growth towns with $2.6m to implement innovative and flexible training programs in communities that connect Indigenous Territorians to real and sustainable local employment opportunities. We are focused on our responsibility to provide all Territorians with a working future. The Territory has a unique and pristine environment and the Henderson government plans to keep it that way. Budget 2011-12 delivers record funding to protect our harbour, with $24m to continue works to close the Larrakeyah outfall and $26m to upgrade the port. $1.2m will be spent as part of a three-year program to manage and sustain inshore marine resources. An additional $1m is provided for habitat mapping, monitoring and research activities in Darwin Harbour, with a further $800 000 ongoing for environmental compliance initiatives. Budget 2011-12 also includes $690 000 for the environmental regulation of mining operations including the establishment of a central Australian mining team based in Alice Springs and other specialist staff; $400 000 will be provided to continue the ecoBiz NT program to assist businesses to improve energy efficiency; $2.1m will deliver increased conservation in parks and Indigenous employment outcomes. Budget 2011-12 invest $490 000 for the delivery of the Henderson government’s container deposit scheme rolling it out into schools and community groups and making the Territory cleaner and greener. A new green streetscape program will commence in 2011-12, with $2m for urban road landscaping and $1m to work with Greening Australia to improve neighbourhood amenities. The Territory lifestyle continues to be second to none. Budget 2011-12 delivers more for sporting and other major events, recreational facilities and, of course, fishing. Support continues and increases for the V8 Supercars, Australia Super Bikes, AFL, rugby league and rugby union matches, and the Bassinthegrass and Alice springs concert. Improved sporting facilities include: $1m for site works for the development of the Litchfield swimming pool at Freds Pass reserve; $8.1m for rugby league in Palmerston; $4m for a 12-court squash facility at Marrara Sporting Precinct; $5.1m for tennis and netball facilities in Palmerston; $4.3m for soccer facilities in Palmerston; construction of the $10m Defence of Darwin Museum at East Point Reserve continues in 2011-12. Budget 2011-12 doubles government support for the delivery of the Darwin Festival with an additional $500 000 ongoing, taking the total support to $1m per annum Recreational fishers receive a further boost this year with $1.8m for improved fishing infrastructure and $2m to upgrade secondary local roads, including roads in the Douglas Daly region. Budget 2011-12 also delivers support for outdoor recreation with $12.6m for the Palmerston Water Park; $4m to support facilities at the Waterfront Precinct; $2.5m for water play and aquatic wildlife viewing at Howard Springs Nature Park; $1.6m to continue works on the Palmerston to Howard Springs cycle path; and $290 000 to continue upgrading two track heads at Larapinta Trail. Madam Speaker, Budget 2011-12 helps Territory families get ahead and builds on opportunities. It is responsible but responsive, recognising all Territorians need the opportunities of A Working Future and a dynamic Territory 2030. It maintains our commitment to Territory business to keep our infrastructure spending high to protect jobs and grow the economy until private sector investment returns. It delivers tax cuts to support jobs and position the Territory for future growth. Budget 2011-12 helps more Territorians into their own homes and delivers the most generous concession subsidies in the nation to help Territory families get ahead. Budget 2011-12 delivers on the priorities of the Henderson government to provide affordable and quality health and education services for Territorians. We are tackling law and order issues through targeted measures to tackle alcohol misuse that costs our community an estimated $642m per year. We are continuing to invest in infrastructure and services to make the Territory a great place to live, work and raise a family. We are providing quality schools and hospitals, and supporting all Territorians wherever they live. Madam Speaker, I commend Budget 2011-12 to the House. Debate adjourned. |