Episode Transcript
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Speaker 1 (00:00):
The Northern Territory budget was handed down yesterday with a
major focus on law and order, infrastructure and corrections. The
COLP government committing a record one point seventy three billion
dollars to policing, courts prisons, including funding for more officers,
new facilities and support programs. We also know that the
(00:20):
government say that the investments really aim to improve community safety,
strengthen infrastructure and support long term growth across the Northern Territory.
Now joining me on the show. I did just leave
him at a budget breakfast where I was moderating a
panel that he was on. It is the Treasurer Bill Yan.
Good morning to your treasurer.
Speaker 2 (00:40):
Good morning Katia. It's great to catch up with you
again twice in one morning.
Speaker 1 (00:45):
Yes, and Treasurer, quite the busy time it has been
for you, no doubt. Preparing the budget then handing it
down yesterday built the debt levels and the costs to
keep running the government. They've been a point of contention
for many years. How is our debt looking and is
their work still to be done to rain things in?
Speaker 2 (01:06):
Yeah? Absolutely, KAYLB. So when we came in the government
we inherit a very large legacy debt issue, and it
was when you look at the previous debt, it was
increasing under the previous government by twenty two percent year
on year. We've reduced that by eighteen percent now, okadie,
we've got that down to a four percent increase. But
(01:28):
that's not to say that the work has already done.
So we're we're starting down twour point five to five
billion dollars in debt this budget. That's going to that's
going to pop to a thirteen point two for the
next two budgets and then we finally through the discipline
that we've been focusing on the budget, we start to
see a reduction in that debt. So we've got the
(01:50):
growth to four percent. Now we need to start dropping
that down, which we'll see in our our years. So
the hard work has been going on since we got
into government. We'll continue you with that, and then we've
still got more to do. Absolutely well.
Speaker 1 (02:02):
Obviously, you know you are saying that there's been more
responsible measures in place, but is it also I mean,
is the improved bottom line also due to an increase
in mining royalties and also some of those changes to
GST and increased stamp duty.
Speaker 2 (02:18):
Well, we have seen an increase in our revenue for
this budget, which is great to see. So we've seen
an increase in some of our royalties through mining. We've
seen an increase in GSTWO from population growth, so that
has increased our revenue. But I can tear we've been
pretty responsible about this. We've we've not been like the
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eight year old in the lolly shop because just because
we've got some extra revenue when we run out and
spent it, we knew that we knew that we had
to be responsible with this budget. So that extra revenue
is great. We've tried to maintain our spending as much
as we can and what that means at the end
of the day decade is we don't have to borrow
as much money. And if you look at the current budget,
(02:59):
like the twenty five twenty six, first time in a
number of years that we've actually been in surplus and
we've not had to borrow money to pay public sector wages.
So that's that's a pretty great outcome for us.
Speaker 1 (03:12):
Now, I know that there's a record investment into police,
into courts to prisons, including funding for more officers and
new facilities and support programs. How is this money going
to be spent and why is it needed.
Speaker 2 (03:27):
Well, there's a number of areas that we're spending. I
think corrections is probably the key area. Corrections has been
sort of left behind and under funded it and not
developed for a number of years under the previous governent.
I know because I was in there and one of
those people streaming for the increased beds because we've seen
the numbers going up and the previous government didn't do
anything about that. So we're investing in that new work
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camp in Catherine, another one here in Darwin. We've got
fifteen million dollars there in it now to start the
planning for a new male prison here in Dara, alongside
a new female prison. That's work that needs to be done.
We're investing in police to get an extra hundred We've
got an extra hundred on now on what was the
previous government had. We're putting another one hundred and fifty
(04:10):
through the college this financial year coming up. We've got
the ppsos which we're bringing online and funding them so
that puts more visual police on the ground and deals
with the issues that they face right across the region.
Of course, courts too, Courts were neglected, so we've got
a full complement of judges now and we're dealing with
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court matters faster than ever before. So it's a whole
piece in that justice and community safety space and they
all compliment each other.
Speaker 1 (04:42):
Yeah, look, I think there'd be a lot of people
that are supportive of that spend, particularly when you look
at the issues we've had with law and with crime,
i should say, and law and order issues across the
Northern Territory over recent years. But even as you were
saying that, you know, you were saying there are enough
beds in the prisons, and at the same time, I'm
thinking the only other place we talk about the number
of beds is in the hospital, where there also aren't
(05:03):
enough beds. And there are some people questioning this morning,
you know, we've got a huge investment obviously into planning
for new prisons. Why isn't there that kind of investment
into planning for a new hospital.
Speaker 2 (05:16):
Well, there's an extra Well the chief went away and
broken that one billion dollar deal for our health sector.
We're seeing an extra one hundred and seventy five million
going into health this year, which is great to see,
and it deals with that underfunding that they've seen we've
got one of the new wards coming online. We've funded
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that to make sure that it's up on operational. So
we're increasing the beds at RDH and doing the work
that we need to do to provide those health services
with territories. But I hear what everybody's talking about about
RDH and do we need another hospital. That's a that's
a big discussion that we need to have with the
Commonwealth about what we do there because what we we
(05:59):
can't we can't afford that we need to common Wealth
to come in and back us in on it if
we're going to go down that road. So and still
that's a long way away. Even if we even if
we pull the trigger to Marus said, look we're going
to build a new hospital, it's years and years and
way before we'd see it in it. So we have
to maintain and support the health system that we have
right now to make sure that we deliver those services
(06:20):
that people expect well.
Speaker 1 (06:22):
And look, I know that there's four point twenty five
billion dollars on infrastructure across the Northern Territory, only eight
million on new infrastructure spending within health. I know that
you know Schwartz Court and Stuart Highway intersection upgrade is
going to cost eight million, the same amount as spending
on the whole of health. You know, just when you
put that into perspective, and I'm not, you know, saying
(06:44):
that we don't need investment into infrastructure, but when you
look at the code yellows, when you look at the
you know, the capacity levels that we've got at our hospital,
but also when you look at you know, the ten
million extra dollars for Saint John, you sort of start
to think, do we need to be investing a little
bit more heavily into health.
Speaker 2 (07:06):
Well, we've got those couple of wards coming online soon. Okay,
that's the there's the extra thirty two bed ward and
then there's also the mental health ward coming online. So
their infrastructure projects that will be finishing up hopefully within
the next twelve months and be online. Of course, we've
invested into now how we staffos and put the necessary
(07:29):
equipment in, so that's there. There's a big R and
M spend in the hospital which doesn't specifically shoup on
like a new program or a new bill or something
like that. We've increased the R and M into the
into the hospitals right across the territory. It's a it's
a big piece of work cave. And we're investing into
(07:52):
the hospitals. I said, there's a lot of I think
there's new clinics online scot no doubt.
Speaker 1 (08:01):
It's a juggle, Like I get it. You know, it
would be tough to try and work out where you're
prioritizing that money. But what I can see with health
at the moment is, you know, crime was the huge
focus for so many of us for a number of
years and continues to be. But what I can see
with health at the moment is that the area that
people are starting to get really concerned with. They're concerned
that when they rock up, you know, to the emergency department,
(08:23):
that there's not a space for them. They're worried, you
know that that Saint John aren't going to be able
to get a van out to them. And I know
that there has been that additional investment. But you look
at it and you go, all right, can we spend
some money on health into you know, that infrastructure that
supports our health system.
Speaker 2 (08:43):
Yeah, And it's a fair call to Caddie and I
know that Ministry GID is doing a lot of work
around health and where the work needs to be done.
Speaker 1 (08:52):
So we seem to have lost the treasurer there. Hopefully
he's still on the line.
Speaker 2 (08:58):
Bill.
Speaker 1 (08:58):
Are you able to hear me? No, he's he has
dropped out. No, I've got him. I've got him again, Bill.
I'm glad you're back. Hey, let's move along. Can you
hear me?
Speaker 2 (09:09):
Yeah, I can hear you there, katie'ry.
Speaker 1 (09:11):
You dropped out for a little while. Let's move along.
Make the ship lift. How much is this ultimately costing?
And when are we going to see it operational? And
are we ever going to see some bang for our buck?
Speaker 2 (09:22):
Well, look, I think the shiplift has been a bone
of contention. It's another one of those I hate to
say it. I keep rattling on about it, but it's
another of these legacy issues that we've inherited. We're at
budget at eight hundred and twenty. We've had to put
in an extra thirty because there's been costing increases on
the paint and blast shed. So the total budget now
was eight point fifty. I'm still working on that to
(09:45):
try and maintain or reduce that, working with the contractors.
We should see that up on operation August next year.
Things are moving at a pace out there, I must say,
but I think for the cost, and it is a
big cost. But I think I said this morning, if
we looked at a break cost, the break costs to
be six hundred million dollars and that's not tenable for
(10:08):
the territory and that's just throwing money away. So we're
committed to getting the shiplift done and getting it up
our operational because it will be a large economic driver
for our maritime industry into the future because it will
form part of that larger Northern Maritime Bricincs. So the
shiplifts will be a part of that larger piece that
(10:28):
supports the maritime industry here and arlment more importantly, I think,
right across the Indo Pacific region. So we're positioning ourselves
to be one of the prime areas for maritime work
because people are either going to Cairns or to Perth,
and for our Asian partners, we're closer than them, so
we're really really well placed. And Defense Defense want to
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use these infrastructure as well to support them.
Speaker 1 (10:55):
Look, I think that everybody is hoping that it is
a success, particularly when you look at you know, the
volume of taxpayers dollars that are being spent on it.
Treasurer a couple of quick ones. I know that the
oppositions criticize the drop in infrastructure spend. They say it's
going to hurt the private sector rather than help. Will
they see less jobs given how important those government works are,
(11:16):
and you know they keep things ticking over.
Speaker 2 (11:20):
I'm not sure with the opposition they're getting their information.
This is the biggest cash spend in our infrastructure budget
on record, two point seven billion dollars. Katie. So the program,
the previous program that the Labor had was there was
a lot of fluff in it. There's a lot of
announcements and no cash. Remember when we came into government,
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there was a four point four billion dollar infrastructure program
and it had three hundred million dollars of cash against it.
So this year we're cashing our program properly. I said,
there's two point seven billion dollars committed in cash for
this infrastructure program. Now, the line's share of that is
(12:03):
in roads and remote areas. The challenge for me now
is to make sure that we get that cash out
the door and keep things from now.
Speaker 1 (12:10):
I was going to say that's always the question how
much is actually going to get out the door bell.
Speaker 2 (12:16):
Yeah, well, we had some difficulty in the latter part
of this year and I think the Opposition leader spoke
about it in Parliament yesterday, but she didn't understand it.
With the weather events that we've seen, we had five
months where we couldn't get outbushed to do anything, whether
that was in the top in or even parts of
Central Australia. So it's hard to do work and pay
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for it when nobody can get out there to actually
do it. So that created some difficulty in getting work done.
But as I said, we can't control the weather, control
a lot of things. But old mother notes she's got
a mind to run now Bell.
Speaker 1 (12:48):
There has been a drop in mental health funding, a
cut to domestic violence services, and will some saying very
little to alleviate the cost of living pressures. The community
services sector believe I've been forgotten. What do you say
to that?
Speaker 2 (13:03):
Yeah, look, the budget really hasn't changed that much in
that community services sector. So the budgets really from my knowledge,
haven't really reduced that. The funding is still there and
going out through the various agencies. Now I know there's
been talking about these these alleged cuts to health or
to mental health and nursing, they're actually accounting measures and
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it's Commonwealth funding that's falling away, and the negotiation is
still happen with the Commonwealth to get that funding back.
Speaker 1 (13:32):
Someone someone's dodging up the book spill?
Speaker 3 (13:34):
Is that what you say, the way the Commonwealth funding works,
they don't start doing the negotiations so after their budget
and we hand down our budget before, so there's always
you'll see a drop. But where there's been a shortfall,
I know, particularly in the mental health one, that was
a shortfall with some Commonwealth funding that was that was
falling away, it was finishing, they've given it to us
and it stopped.
Speaker 1 (13:57):
Are you hoping that we will see some of that
funding in the upcoming federal budget reports?
Speaker 2 (14:02):
Well, on that on that specific mental health one, Kie
Health are going to fund that from within, They're going
to take money from within their existing budget to cover
that shortfall. Then we'll still negotiate with the Commonwealth post
their budget to get some of that funding back. So
it's a bit like swings roundabouts, like the Commonwealth don't
give it to us when we write our books up
(14:22):
for our budget so it shows as a shortfall. It
doesn't mean that the funding is not going to be there.
But if you look at the cost of living, we've
increased that by fifty seven million dollars and the majority
of that is in support for power prices. Now we've
seen catarment in Black Tip, which has increased their cost
of gas, which for us then increases the cost of
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generation and power. So we're increasing the CSO by over
fifty million dollars. So households, mums and dads aren't slug
with huge power hikes. We won't do that to people.
So we're cutting that from in happened. So that's a
huge cost of say, a huge cost of living, saving
to everyday territory.
Speaker 1 (15:05):
Bill really quickly. I know that your press for time
as are we is there anything that you are hoping
to see in the federal budget next week or is
there anything that you think is going to impact these numbers?
Speaker 2 (15:18):
Well, I said I'd like to see, particularly not health funding.
We know we're still short the number of areas. I'd
like to see the common will start to stump up
and deal with that shortfall that we see in aero
medical retrievals and particularly within age care. I know there's
some commitments already, so that would be good housing, like
(15:39):
affordable housing for the territory. I'd like to see what
that's going to look like for us. So they're probably
the key takeouts for me at the moment. I know
that the rest of the infrastructure stuff on RAGE is
pretty well locked in through Catherine's King's Office, so that's great.
So there's just those few things, particularly around health, that
I'm looking forward to seeing how turn out for us.
Speaker 1 (16:01):
Bill, how would you describe your budget?
Speaker 2 (16:04):
Well, you asked me this morning, if I can describe
a one word, I'm going to I'll change. I'm going
to go more than one word, Kleb And I've said
this and I'll always say, this is a budget for
all territories. This is a budget delivers services for where
they're needed for every territory. And that's why we're focused
on those those key pillars that we always speak about,
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which is community like community safety and dealing with crime.
There's a large spend there, but we're also now focusing
course in on health and education to support our kids
into the future and doing that work to get out
of the way of business and create those economic opportunities
so that we can grow our economy. So that's why
(16:48):
we say it's a budget for every territory.
Speaker 1 (16:50):
As one very last question from one of our listeners
with your hat on as the Minister for fuel, this person, Emilio,
had emailed us he's a friend of the show, and
said I was under the understanding that servos were not
meant to change fuel prices rapidly. On Friday the first,
six thirty pm, when we drove past it to servo
in Nightcliff, the price for diesel was two dollars forty
(17:11):
four point nine. We went to dinner in town, returning
bus both those service stations at eight seventeen and the
fueler jumped to two dollars forty five point nine. How
is this allowed?
Speaker 2 (17:22):
He questions, there's a time of day where they can
adjust their prices, and I believe that it's after six
pm KD. So they do the work and then they
can adjust the prices. The only latter adjusted prices up
that one time. But what they can do is if
there's a price drop, and I encourage all those retails
out there, if you're listening, if there's a price drop
(17:43):
in Terminal Gate and the retail changes. They can actually
drop their price during the day rather than have to
wait for that one point in time, so they get
one chance a day to change the price, but they
can they can drop it at any time.
Speaker 1 (17:58):
Good to hear, but don't want them putting it up,
that is for sure. Bill Yan, Treasurer of the Northern Territory.
Really appreciate your time. I know it's a busy one
this morning.
Speaker 2 (18:07):
Cheers Katie, you have a great day you too.
Speaker 1 (18:09):
Thank you.