Government Debt Stands At $400 Million And Climbing

Government Debt Stands At $400 Million And Climbing

Northern Territory Shadow Treasurer Willem Westra van Holthe

Growth Projections Slow

Victor P Taffa

The release of ABS data on Building Approvals indicates a bottoming in Private Investment in the Northern Territory and tough times ahead for the construction industry, Shadow Treasurer Willem Westra van Holthe said today.

“In November 2010, there were just 65 dwellings approved, half the number for the same month in 2009.” Mr. Westra van Holthe said.

“The Opposition is unconvinced that the Policies of Government will deliver positive economic growth in 2011 and the release last month of the NT Treasury’s Mid Year Report suggests the black hole in Government finances is becoming a yawning chasm.”

“In 2010/11 the Territory budget is projected to be over $400 Million in deficit, but even the Territory taxpayer can’t cover for a decline in Private Investment forever.”

“As the outgoing Reserve Bank Board Member Donald McGauchie said earlier this week, the Federal Government has forced interest rates higher because of poorly targeted stimulus and infrastructure spending.” Mr. Westra van Holthe said.

Mr. McGauchie said:

“We are subsidising industries we shouldn’t be subsidising, we are spending money on fiscal stimulus and other things we shouldn’t be spending money on.”

“In a jurisdiction experiencing record house prices and stamp duty increases, higher interest rates turn into lower private investment.” Mr. Westra van Holthe said.

“What the Territory needs are increased investment in Primary Production and the Resources Sector in 2011 to create a platform for long term growth.”

“We need more irons in the fire besides the Inpex Project to create real jobs and real economic growth for the future.” Mr. Westra van Holthe said.

Although a $400 Million Government Deficit cannot be overcome quickly it is becoming increasingly apparent that Real Investment, Real Economic Growth, Real Opportunities and Real Certainty in who makes decisions in the Northern Territory will only be solved through Statehood for The Northern Territory.

Canberra being hundreds of kilometres away are not able to adequately administer The Northern Territory. The existing State Government’s do not have any uncertainty as to who is in charge. State Government’s have a State Constitution, State Parliament, State Governor and a State Premier. The Northern Territory requires all of these in the newly formed State of Northern Australia.