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| Madam Speaker, I move that the bill be now read a second time. I table the Appropriation (2015-16) Bill and related papers. Members: Hear, hear! Mr TOLLNER: This government has a clear economic plan for a better, more secure future for all Territorians and their families. The government started on a simple plan to fix the massive Labor debt by being smarter and more efficient with government spending, while at the same time driving private enterprise investment and jobs. This government stopped the waste and then purposely invested our funds into very specific projects to create a more sustainable economy which protects and enhances our lifestyle and social fabric. The Northern Territory has turned the debt corner and no longer is it a stone around our neck. A great deal of this has been achieved by our public servants who have embraced change and are working hard to create a more efficient government. Labor has run a relentless campaign claiming the Giles government would slash government jobs. Nothing could be further from the truth. We have achieved these exceptional outcomes by maintaining public service numbers and awarding them pay increases higher than any other government jurisdiction in the nation. I am pleased to report that this $6.3bn budget achieves the goal of returning to surplus by 2017-18 as we continue to reduce the debt burden left behind by the Labor Party. As a direct result of two years of focused discipline, the fiscal balance in 2017-18 achieves the government’s target to balance the budget with a surplus of $9m, growing to $35m in 2018-9. The focus on expenditure restraint will result in accumulative budget improvement in excess of $400m per year by the end of the budget year. The fiscal surplus in 2017-18 is on top of the Giles government, already achieving a general government operating surplus in 2013-14, a full three years ahead of schedule. These efficiencies have been achieved without job cuts or reduced services and by targeting priorities and ensuring the days of Labor waste and frivolous spending are well and truly behind us. The Giles government plans to grow the economy, by focusing on promoting private sector enterprise, has seen increases in revenues that have contributed to the improved outcome in this budget. Increased stamp duties and payroll tax receipts are a result of our focus on growing the local economy. The improved fiscal position over the last two budgets, and the effect of bringing the Motor Accidents Compensation scheme into general government, has resulted in significantly reduced net debt levels. Net debt is now projected to be $2.6bn by 2018-19, less than half of Labor’s projected $5.5bn debt. Labor’s net debt to revenue ration was projected to reach 98% and is now slashed to 39% in 2018-19. Under Labor the annual interest burden was projected to soar to $425m, or well in excess of $1.1m, every day. Under the Giles government the projected interest in 2015-16 has been significantly reduced by almost $300 000 per day. This is nothing short of astounding and it has been achieved while delivering quality services. It has allowed the government to invest $1.39bn in targeted infrastructure projects. In the wake of Cyclones Lam and Nathan, we have already begun the long and expensive rebuild process, which is estimated to cost in excess of $100m. Funds that Labor would have needed to borrow if they had remained in government have now been set aside in 2015 and can be paid directly from general revenue to accommodate this effort over the months ahead. The government’s plan is to diversify the economy and stimulate private sector investment now and beyond the INPEX construction phase. Last year the Territory economy grew by an impressive 6.5%, surpassing previous forecasts. Since the Country Liberal Party came into government in August 2012 the economy has expanded by 11%, more than double the national growth. This strong growth in the Territory economy has been underpinned by $20.6bn business investment over the past two years, an amount without equal in the Territory’s history. This included 9500 new jobs, an increase of 8%. The unemployment rate has averaged 4.4%, well below the national average of 5.9%. I now want to expand on the government’s plan of putting the right building blocks in place for a better future; building blocks that are linked to improved economic and social outcomes for our community. Let us consider health and safety. We are investing large amounts into hospitals and police, but interrelated to health and safety is a range of other factors, such as regional and remote economic development, jobs, education, sporting and cultural facilities and alcohol abuse. This budget not only supports our hospitals and police but also deals with these other interrelated factors. It addresses the causes and precursors to health and crime problems. This is good for the community on a broader scale, while supporting the wellbeing and safety of individuals. Turning to the cost of living, we have deliberately combined a change in the First Home Owners Grant to new homes and apartments, whilst fast-tracking land release across the Territory. This has resulted in lower housing and rent costs while boosting the local economy with an expansion of the residential building sector, which also has very good synergies with a range of other industries. We have an integrated plan for tourism. This is part of the government’s diversification plan for the economy and to bring sustainability to our tourism industry, while at the same time improving the lifestyle of Territorians. This budget provides for better products to enhance visitor experiences including parks, sporting facilities and cultural events. We have also invested heavily in roads and a range of other infrastructure such as fishing facilities. This is obviously good for the tourism sector but plenty of Territorians will also welcome these investments. Not only is this government focused on how we operate within our borders, but we have also worked with our neighbours to leverage opportunities that can benefit Territorians. This government has been working closely with the Western Australian, Queensland and Commonwealth governments on the Northern Australian strategy. We are planning the next round of future development for the Territory. We have strongly engaged our trading neighbours and are planning a program to take advantage of the new free trade agreements to further expand and diversify our economy. This government is pushing on all fronts to ensure we have a strong local economy and a competitive export-focused culture in our business sector. The Giles government has been focused on its plans for a better future. I appreciate that not everyone in the Territory agreed with the government changes to the Power and Water Corporation or the Territory Insurance Office. The government’s utilities reform agenda and the effects of structural separation are resulting in ongoing sustainable improvements in the performance of the three newly-separated utility entities. There have been considerable benefits already for business in the community following the breakup of the Power and Water Corporation, including greater transparency, reduced wholesale prices and improved reliability. I now turn to the TIO. The direct benefit to the community is that TIO is now here to stay. By freeing the organisation from government ownership it has been able to dilute its risk and bring its reinsurance costs into line with its competitors. Make no mistake: TIO would have withered on the vine if it had remained in government hands. The decision to sell TIO also benefited our community by the immediate recycling of $200m into productive and social assets for the people of the Territory. Budget 2015-16 includes as part of this reinvestment: $57.5m for flood mitigation across the Territory; $23.5m for regional roads to support economic development including the Roper Highway and Tanami Road; $79.6m in tourism infrastructure including $28.5m to complete the sealing of the Litchfield park road including the lower Finniss River bridge; $25m for the completion of the Mereenie inner loop; $21.1m for enhancing the visitor experience at both the Casuarina Coastal Reserve and the Litchfield National Park; and $41.4m in social infrastructure. Not only is there a direct and tangible immediate benefit to the community, but these benefits will be long lasting. The balance of the TIO sale proceeds will be invested in an infrastructure fund to support future economic wellbeing of the Territory. Again, the government is being smarter about the way we support growing our economy and this fund will provide the seed money to facilitate additional funds being invested in Territorian projects by the private sector. Let me turn to fairness. Currently, hotels and local pubs pay a levy from their electronic gaming machines into the community benefit fund whereas casinos do not. In order to level the playing field for all those organisations that have poker machines, the government will remove this concession from casinos. It will not affect the number of machines in the casinos or an individual who wants to go to the casino. It means those casinos which have had ample time to establish their operations will be paying the same rate as hotels, that is 10%. This new revenue estimated to be around $8m which will increase the fund to $11m will go directly into our community so that all Territorians will benefit. The government will not use the money to pay off debt or for other government-funded projects. I would urge all Territory community groups to start working on their next round of applications. In addition to the changes to the community benefit fund and in line with other jurisdictions, we have also clarified that for payroll tax purposes, exemptions are not provided for commercial activities undertaken by charities or entities that promote trade, industry, commerce or professional associations. Importantly, these amendments do not affect the exemption provided to traditional charities which have a sole or dominant purpose for the relief of poverty or the advancement of education or religion. Consistent with provisions of the Motor Vehicles Act motor accident compensation contributions will continue to rise in line with the consumer price index. The cost of living continues to be a critical issue for all Territorians and the government is delivering on its promise to reduce this burden on families here. Darwin inflation fell from 3.0% in 2013 to 2.9% in 2014 and it is forecast to continue moderating over the medium term. This is evidence that the government policies aimed at reducing the cost of living pressures are working. Following the success of the fuel summit, the government is continuing to explore options to ensure that Territorians are paying a fair price for their fuel. Budget 2015-16 includes two specific measures to reduce the tax burden on Territorians. The senior pensioner and carer stamp duty concession has been increased from $8500 to $10 000 with effect from today. The Giles government has also abolished stamp duty on life insurance with effect from 1 July this year. In addition, Budget 2015-16 continues the government’s support for families with $20m invested through the $150 back-to-school vouchers, the $200 sports voucher scheme and the childcare subsidy. The Territory government’s land release program is securing a reliable supply to support affordable and accessible home ownership for all Territorians. The Bringing on Territory land release program is fast tracking land release and will deliver 6500 dwellings over 10 years. In the December 2014 quarter the proportion of income required to meet home loan repayments in the Territory was 28.1%, which is well below the national average of 31.5%. In 2013-14 residential dwelling completions increased by 51% to 2146, the highest annual figure since 1999. Growth was driven by nearly 150% increase in the number of dwelling completions, but we now have the capacity to achieve more. Budget 2015-16 supports residential land release and related projects with $45.5m to unlock the Territory’s potential including Borroloola, Alice Springs and the development of in-field land in Darwin. This budget also invests in urban public housing with $3m to redevelop older unit complexes across the regions This budget also invests in urban public housing, with $3m to redevelop older unit complexes across the regions including Darwin, Tennant Creek, Katherine and Alice Springs. Further support for public housing across the Territory includes $27.5m for repairs and maintenance. Budget 2015-2016 invests heavily in all areas of law and order with $735m to create a safer community for all Territorians. Key to this is providing an additional $8.7m dedicated to fulfilling our commitment of an additional 120 police officers across the Territory. This budget also provides additional resources to policing services including: $2m to recruit and support an additional 13 Aboriginal community police officers; $1.7m for new protective equipment for frontline officers; and $600 000 for additional CCTV cameras in Palmerston, taking the total network to 180 cameras Territory wide. The Giles government continues to deliver on community safety with alcohol-related assaults down by 16% in the year to February 2105. This is due to measures including: alcohol protection orders; policing bottle shops; getting prisoners into work; mandatory alcohol rehabilitation programs; and the expansion of security cameras in crime hot spots. Alcohol mandatory treatment is making a real difference in keeping our community safer, with more than 600 people assessed and provided with medical withdrawal, treatment and rehabilitation services since its inception in July 2013. Budget 2015 continues to support mandatory rehabilitation for problem drinkers, with total funding of $28.4m and expanded services in both Alice Springs and Katherine. These expanded services include an additional $7.9m to continue the construction of a purpose-built secure assessment and treatment centre in Alice Springs, and services in Darwin operating from the newly refurbished facility at Berrimah. Budget 2015 continues to support the roll-out of domestic and family violence reduction strategy, with $6m, including $3m from the Commonwealth, aimed at increasing the safety of victims and their children, reducing trauma and increasing the accountability of offenders. The budget also invests in the wider community to support safety initiatives. This includes $42m for fire and emergency services and $1.1m for the bus network to increase the safety and security of drivers and passengers. The Giles government well understands the challenges we all face when it comes to raising our children. The government is being smarter in the way it ensures they get the very best start in life. The previous Labor government saw no problem in saddling our children with $5.5bn of debt and 98% net debt to equity ratio. This government will not sacrifice our children’s future. Our previous budget set out to eliminate Labor’s intergenerational debt, and this budget is building on those foundations. Our plan delivers $991m for education services, reforms and training to support students and schools so they can improve their learning outcomes and create better employment pathways. It also builds a brighter future with $152.4m for school infrastructure including: $30.5m to continue construction of the new Henbury School for special needs students; $21.4m for stage one of a new preschool and primary school for special needs students in Palmerston; $20m in conjunction with the Commonwealth for a regional boarding facility at Nhulunbuy; $5.5m for a new 70-place child and family centre at Larapinta Primary School; and $4m to construct a preschool on the Braitling Primary School site. Our education reforms that deliver greater flexibility and choice to school councils and principals are supported by real dollars in this budget including: $368m directly for government schools in the global budget pool, plus $57.5m to meet centralised school costs. There is an additional $23m over four years, increasing the transition package to $40m to provide schools with greater autonomy, and $2m to support the implementation of the Independent Public Schools initiative, which empowers schools with proven governance and leadership capabilities to tailor their school programs to meet their students’ needs and improve outcomes. Our plan allocates almost $100m for job-ready training, including employer support schemes and vocational education and training programs. In order to better target incentives for apprentices and trainees the government is changing the way in which it provides these incentives. The payroll tax exemption for apprentices and trainees will be removed and replaced with a $4.4m direct financial incentive to employ apprentices and trainees. In addition to this the budget provides $800 000 for vocational education and training, and employment pathways in schools. This includes avenues through trade training centres and pre-employment programs across the Territory in partnership with mining, pastoral, tourism and other industries. This government believes that hard work and being a good citizen are important. I am delighted to announce a new scheme which encourages our youth to drive safely. The government will reward drivers who complete their P-plate period with an unblemished record with a free 10-year licence. The Giles government understands that protecting our most vulnerable youth is fundamental, and it is investing $172.4m on a range of services to protect children from harm, including: an additional $8m for out-of-home care services, aimed at addressing current demand and providing safe secure accommodation for children in protective care; $500 000 available to advertise and promote foster care opportunities; $450 000 for a new neighbourhood activity centre in Sanderson; $1.1m for youth initiatives focused on localised prevention and early intervention programs; and $2.7m for the Alice Springs Youth and Community Centre to support stage 3 and stage 4 upgrades. The combination of these programs has a deliberate and specific target to provide sustainable and improved outcomes for our children and youth. More importantly, we are providing them with a tangible future which holds genuine hope and opportunity. Keeping people healthy is a key priority of any government. By sticking to our plan to reduce waste and cut the Labor interest bill, the government has been able to increase funding in areas that deliver better health and wellbeing outcomes for Territorians. Budget 2015-16 provides for a major expansion of hospital facilities and increases to critical services. It delivers $1.42bn in total health related expenses expenditure and $220m for new and upgraded health facilities. This includes $69m to upgrade Royal Darwin Hospital, including $40m for a staged redevelopment, $4m for additional refurbishment of the paediatric ward, and $500 000 for a wide-range scoping study for a stand-alone ambulatory care facility. Royal Darwin Hospital remains the government’s main focus for tertiary health services. Under Labor the hospital was neglected and run down. Our simple plan of tackling debt and focusing funding is paying off for staff and patients at Royal Darwin Hospital. Budget 2015-16 invests $25m towards the Palmerston Regional Hospital, worth $150m, with construction commencing later this year. The hospital will deliver 116 new beds, a 24-hour emergency department, birthing suites and medical and surgical services including cardiology, renal medicine, cancer services, paediatric and antenatal and postnatal obstetric services. Palmerston Regional Hospital major construction works are expected to be completed and the hospital operational in 2018. Other areas of important hospital upgrades and services include: $34.2m to continue remediation works and upgrades at the Alice Springs Hospital; $2.5m to upgrade fire safety systems at Gove District Hospital; $3.9m to operate a new 12-bed emergency medicine unit within the Royal Darwin Hospital emergency department; and $1.1m for the Hospital in the Home and midwifery services for the Alice Springs community. This budget also provides a $20m investment in health equipment, technology and system upgrades that will simplify the way care is delivered, and enhance patient outcomes. Mental health is an important part of Territorians wellbeing and Budget 2015-16 provides additional funding of $4.9m to enhance mental health services. This budget also supports the three-year Northern Territory Suicide Prevention Strategic Action Plan which was recently released. It is aimed at reducing the rates and impact of suicide and self-harm across the Territory. The Giles government believes that the best form of welfare is a job. Improving the employment opportunities of Aboriginal Territorians is also key to breaking the cycle of welfare dependency. We will continue to roll out and expand the successful model on the Tiwi Islands to other remote areas in the pursuit of jobs in the bush in line with our plan. Budget 2015-16 fosters locally-led economic development projects in remote communities by providing additional funding of $18m over three years. This money will support a new Community Champions program for a total of 13 Aboriginal communities and regions across the Territory, and an additional $4m over two years will assist Aboriginal community organisations pursue economic development opportunities. This budget also includes $6m over three years to establish the Business in the Bush program to support Indigenous business start-ups and increase Indigenous jobs. Other key highlights to assist people in the bush include: an additional $22.4m to upgrade, repair and maintain water and sewerage infrastructure; $8.2m to improve Indigenous student outcomes as part of the government’s 10-year Indigenous education strategy; and $3m to expand telecommunication services. The budget continues a remote home ownership program with up to 50% of all remote public housing stock potentially sold back to tenants to further the aspiration of private home ownership. The budget also supports Indigenous culture by providing $20m towards the future development of a nationally recognised Indigenous cultural centre. The government continues its push to strengthen the Territory’s tourism industry and visitor numbers by investing $50.4m. The government will spend about $28m of this on tourism marketing programs to build on last year’s growth of 8.5% in international tourist numbers - following a decade of neglect under Labor. The remainder will be invested as follows: $8m to develop tourism infrastructure, products and marketing; $4.7m for a tourism infrastructure development fund for use across the Territory with a focus on regional, remote and Indigenous tourism products; and $1m over two years to provide free public WiFi in key locations utilised by travellers and visitors. In addition the government is investing a further $8m for the continued enhancement of the Darwin waterfront, including new facilities for the cruise ship industry. The government has continued to drive agricultural production. International live cattle exports have reached record levels in 2014 through efforts in reengaging our Asian partners. AACo’s new Livingstone abattoir has come into production and crocodile production is growing as are buffalo exports. Budget 2015-16 also shows strategically positions the Territory’s primary industries sector through · $2m to purchase a replacement drilling rig for investigation, assessment and allocation of water resources for economic development · $1.2m over two years to support the establishment of the Central Australian horticultural development program · $1.2m to implement an interest rate subsidy scheme to assist growers who were affected by the cucumber green mottle mosaic virus · $750 000 over three years to establish a fishery enhancement program for the production and release of fingerlings of target fish species such as golden snapper. The value of mining in the Territory grew by an impressive 11.8% in 2013/14 above the ten year average of 4.8%. However it is clear that the Australian resources sector is moderating. The Giles government understands that commodity prices are cyclical and periods of slower growth are the ideal time to put in place the building blocks for future activity. Budget 2015-16 continues to support the resources sector through the Creating Opportunities for Resource Exploration program or CORE. CORE positions the Territory for when the resource sector rebounds. In addition, the government has established a competitive market process to select the proponent to construct another pipeline to connect the Territory with the East Coast network. This will provide not only an incentive for gas producers, but will add an important transport and energy corridor through some of the most remote regions in Australia. These policies have been specifically set in place by the government to stimulate and grow the economies in regional areas of the Territory and to link into benefits generated by new roads and other infrastructure. Defence continues to be a significant component of our economy. This government is committed to supporting our defence personnel, our Defence support industries and our relationships with other countries who participate in training and Defence operations in the Territory. The Giles government is developing the Marine Industry Park in the East Arm logistics precinct which will support the strong and growing Defence presence in Darwin. We are enhancing the Australian Defence Forces ability to operate in Australian northern waters, but this major facility also has significant benefits for other marine industries. As a part of an overall plan for the wider Darwin harbour it links in well with our growing off-shore drilling and maintenance industries. I have outlined the main building blocks for growth and sustainability in this budget but the cement for all these blocks is roads and transport infrastructure. This government is providing a record investment of $587m in transport infrastructure and road projects, including $78.5m in road maintenance. This investment will make Territorians lives simpler by cutting travel times, connecting businesses and creating new investment opportunities. In addition to the road projects that will be funded from the TIO sale, this budget includes the following highlights: · $33.5m over three years to upgrade and seal the Pickartaramoor Road on the Tiwi Islands · $32m in conjunction with the Commonwealth to improve outback way roads · $27.5m to support the regional roads productivity package in conjunction with the Commonwealth · $11.5m for the duplication of Vanderlin Drive from Leanyer Recreational Park to the McMillians Road roundabout · $4m in Palmerston for the Roystonia Avenue extension to Owston Avenue. Territorians love their sport and being able to easily get out into the bush and enjoy all it has to offer. The Giles government is proud of the Territory lifestyle and this budget supports Territorians who want to lead a healthy, active and balanced lifestyle with greater resources for sport, recreation and cultural activities. In line with the government’s plan to create synergies with its spending, this government will invest $57.3m in sports infrastructure projects which will also tie in with tourism growth, youth projects and other important programs such as sports vouchers. Major sporting projects in this budget include: $20m to upgrade facilities and expand seating capacity at Richardson Park; $8m towards a regional tennis centre at Marrara; $12.3m for netball, athletics, Riding for the Disabled, lawn bowls, golf and cycling facilities across the Territory; and $2m to upgrade remote ovals across the Territory. Budget 2015-26 supports motor sports infrastructure with $12.7m provided for facilities across the Territory, including $8m for infrastructure upgrades at the Hidden Valley Motor Sports Complex. The budget provides for expanded sporting events for all Territorians including the inaugural Red Centre NATS, hosting the Davis Cup quarter final, and a four nations women’s hockey test match in Darwin. We will invest $69m to provide improved arts and cultural activities, including $18.3m incorporating funding from external sources to redevelop the Chan Building across the road into a dedicated visual arts gallery. The government supports development of the Territory’s fishing sector, with $6.5m to upgrade the Dundee Beach and Shady Camp boat ramps. These are in addition to the upgrades at Casuarina Coastal Reserve and Litchfield National Park facilities announced earlier. In conclusion, we have a plan for the Territory. We have cut government waste and debt. We will continue to promote jobs in the private sector. Our plan looks ahead by making deliberate decisions now. Our plan binds our society into a more sustainable economy while protecting our lifestyle and natural environment. Our plan benefits all Territorians. Our plan manages our wealth carefully. Our plan is about making Territorians lives simpler, safer and smarter. I commend the 2015-16 budget to the House. Debate adjourned. |