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  • 7 hours ago
Tough on crime and low on sweeteners, The Northern Territory budget has been handed down, with few surprises. As the Government continues it's no frills, debt conscious approach. The Northern Territory recorded an improved debt position. With net debt to hit 11-point-three-billion-dollars by the end of 2025-26, 841 million less than the forecast in last year's budget. Next financial year, the debt will climb to 12-point-five-billion-dollars. 552 million less than previously projected, before reaching a peak in 2028-29. The government says the budget is focused on Territorians' needs, with record spends on health, corrections and police. Treasury says the improved debt position is from higher GST payments from the Commonwealth, as well as higher tax and royalty revenue, although the gains have been tempered by damage caused by severe weather and the global fuel crisis.

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00:01Ian, you've handed down your second budget today, but there doesn't seem to be any new
00:06cost of living measures for Territorians. Why is that?
00:10Well, there's quite a lot of money going out for cost of living support for Territorians.
00:14We're putting $290 million out there in this budget to support Territorians through these
00:20times where we're seeing an increase in household budgets. The biggest spend in our budget is
00:26the community service obligation to support Territory families. $2,000 for every Territory
00:32family is part of that support to make sure that they're not seeing huge increases in their
00:36power prices. Power prices are going up with an increased cost of gas, so we're doing the
00:42hard yards to make sure that that is not being passed on to mums and dads.
00:46The community service obligation though is an existing policy. Considering how tough Territorians
00:51are doing it right now, shouldn't there be something new?
00:53Well, if you look at overall what we're doing, we have stuff out there for back to school
00:58vouchers, learn to swim vouchers, free swimming lessons for kids, support for our seniors.
01:03We're introduced, we removed the need for inspections on your car. So, these are all small things that
01:10help Territorians with their cost of living issues. So, the money that we're putting out
01:16the CSO is a large part of that and I think it plays a major role in reducing those issues
01:21for Territory families.
01:23The NT is in a huge amount of debt. The interest bills $2.1 million per day. Is that sustainable?
01:31Well, you need to look at the legacy that we were left coming into government. The debt was spiralling
01:36out of control and it's not something you can pull up straight away. So, we've started to flatten that debt
01:41curve. We're seeing $12.5 billion in debt this financial year.
01:46Stabilising it around about $13.2 billion over the next two years post that. And then starting to reduce. So,
01:51we're doing the fiscally
01:53responsible work now to start to reduce that debt and with that, that will reduce those interest payments.
01:58Should you have made more cuts to get that interest bill under control?
02:02Well, you've got to balance up the services that we need to provide to the Territory versus how you pull
02:09back on that spending.
02:10And I think we've had a very, very good balance in this budget. We're rolling things out the door that
02:16Territorians want and expect from us.
02:18All that money we're putting out, the $12.7 billion in law and order, the education spend and, of course,
02:25the $2 billion plus in our healthcare system.
02:28These are what Territorians expect. These are the services they need every day. So, we're very, very focused on delivering
02:34that
02:35and make sure that Territorians get the services that they require.
02:39Last year, you made the decision to go ahead with the Darwin ship lift. It's blown out by another $30
02:45million to $850 million.
02:48Surely, you have to take some responsibility for this latest blowout?
02:52Well, the blowout that we're seeing and the increased costs for the ship lift, again, are a legacy item left
02:57to us by the last government.
02:58They signed off on all the contracts and the deeds before we got into government.
03:02And we've been working with the contractors, Clough, BMD, to make sure we try and maintain those costs.
03:07But there was no way out for us. There was no way out for the CLP. These deals were done
03:12before we got there.
03:13We could have terminated the agreements, but we would have ended off financially worse off.
03:17We're better off now to build the ship lift and back it in because we know it will be an
03:22economic driver
03:23for the Territory longer term in that larger maritime precinct.
03:26The feds have given you a huge bucket of money for anti-hospitals. Will Territorians notice this in the ADs?
03:34Well, the additional funding fills the gap that the federal government left us for many, many years.
03:40The federal government had underspent and underfunded our hospitals for a very, very long time.
03:45It's good now to see that $1 billion deal that the Chief Minister managed to get with Canberra.
03:50So that tops up that $200 million shortfall in funding for our hospitals.
03:55That allows us to have a little bit more flexibility on what we do within our hospitals,
03:58because previously we were borrowing that $200 million every year to fund that shortfall.
04:03You're building new prisons. Have you considered building a new Royal Darwin Hospital?
04:08Well, prisons we need right here, right now today. If you look at the correctional system,
04:13it was neglected by the previous government. Prison numbers were increasing.
04:17They were holding people in watch houses. There was no plan to put additional beds into our correctional services.
04:23That's something that's much needed and we're doing that work as part of the correctional services master plan.
04:29The Darwin Hospital is another piece of work.
04:31I think if we're going to look at a new hospital,
04:33there'll be a partnership with the Commonwealth if we're going to go down that road.
04:37Bill Yan, thank you.
04:38Cheers, thank you.
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