Episode Transcript
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Speaker 1 (00:00):
I'll tell you what's so much happening politically this morning.
Of course, the Liberal Party deciding who their new leader
was going to be, Susan Lee taking that role. We
also know that the Prime Minister's obviously got his new
cabinet being sworn in and the Northern Territory budget's being
handed down. It's like graham Final day for nerds and
(00:20):
political nerds like us, and Matt Cunningham joins me on
the line.
Speaker 2 (00:24):
Good morning, Matt, morning wilf be.
Speaker 1 (00:28):
Maybe not as exciting as watching the footy final being
in the lock up for Northern Territory budget.
Speaker 2 (00:34):
I got two things on today. In the second one
is the AFL president. I hate to say it, but
I'm a little bit more excited about one than the other.
With no offense to the Treasurer.
Speaker 1 (00:46):
Well, Matt, we can't blame you mate, the Northern Territory budget.
You've been in the lock up for the last couple
of hours. We know Bill Yan has just deliberty speech
talk us through some of the you know, the real
take ons today.
Speaker 2 (01:03):
He's still going as we speak. But if you want
the headline, you look net debt is it's hit almost
eleven billion dollars, and it's going to blow out to
just a fraction shi of fourteen billion dollars over the
forward estimates. Woofing. Now, let's try to put that into
(01:23):
a bit of perspective. That means that by twenty twenty eight,
twenty nine, our death will be fifty two thousand dollars
per head of population. I haven't checked the other states yet,
but I think Victoria is the next worst, and I
think it's about thirty thousand per head of population. So
(01:44):
that gives you an idea of the mess that we're in.
Fifty two thousand dollars per head of population by twenty
eight twenty nine, it's about forty seven thousand per head
of population. At the moment, it is an astronomical number.
By twenty twenty eight nine, we're going to be paying
nine hundred and eleven million dollars interest per year on
(02:07):
that debt, and that equals about two point five million
dollars per day. That's just the interesting line on the
debt that that is the number. Well, it is insane,
and it's the number that's increased from about so that
fourteen billion dollars. If we look at that by twenty
twenty eight twenty nine is a number that's increased from
(02:30):
about two billion dollars in twenty sixteen. So over over
a twelve year period, we would say our net debt
will have gone up sevenfold, which is fairly extraordinary. And
I know we've had the pandemic during that period, but
(02:52):
the pandemic, perhaps can you answer for a small fraction
of that increasing debt? That is a number that is
just unsustainable.
Speaker 1 (03:01):
It's kind of mobelievable. Like you know, it's hard to
put into normal terms for an everyday person.
Speaker 2 (03:06):
Isn't it. It certainly is. I think one thing we
can say, we can you know, any homeowner, anyone who's
got a mortgage, has spent the last couple of years
hoping like hell that interest rates will come down. I
think we're here here in the Northern Territory need to hope,
like how that interest rates come down and that our
credit rating doesn't get worse or the situation is probably
(03:29):
going to be worse again that there is. It's interesting
in the in the Treasure of speech, and I reckon
this is a real issue as well. He's outlined some
of the costs blowout for major projects. We know about
the Tiger brewn and Drive overpass. We talk about that
all the time, So that jumped sixty one point five
million dollars. That was the original budget. The final cost
(03:50):
was one hundred and sixty point nine million dollars, so
a ninety nine point four million dollar blowout on that
one piece of road infrastructure, that one overpass. If you
look at the State Square Art Gallery, the original budget
forty seven million dollars. The final cost is going to
(04:12):
be one hundred and forty three million dollars, so that's
a ninety six million dollar blowout. The Youth Justice Center
had a budget of fifty million, the final cost one
hundred and thirty five point two so an eighty five
point two million dollar increase. Skipving through a few years
as there are others, but the Matta and Greta Police
Station was sixty million, ended up costing thirty seven point
(04:35):
four sot out, twenty one point four million dollar blowout.
And the John Stoke Square and Nightcliff Police Station project,
you know, this is one of my favorite coffee grew
from forty five million dollars which was the budget, to
sixty three point three million dollars and eighteen point three
million dollar budget blowout for a police station that's not
(04:55):
even open.
Speaker 1 (04:56):
Well, and you'd actually done a story last week. I
belie if we're there was people trying to buzz to
get into that police station or to notify people in
that police station of something that was going on in
Nightcliffe and weren't even able to get somebody to come out.
So I think the fact that its cost tax pays
that much money and for a lot of everyday people
(05:17):
maybe wanting to try and contact police inside that building
unable to It feels like it's a wide elephant.
Speaker 2 (05:27):
Well, it's worse than that, because it's now it's counterproductive
because people are going there thinking they're going to get
help and there's an intercom system on the wall. They
used to shut the roller door at four o'clock and
then you know, we started giving them grief. This was
under the former government about the fact that roller door
used to come down at four o'clock in the afternoon,
and so now there's a sign there that says don't
(05:47):
shut the roller door except in a cyclone. But the
police stations as shut as it ever was. You know,
it's only over between eight o'clock and four o'clock So
last Wednesday I was there. It was the day of
linchol Fike's funeral and I was doing my piece to
Cambridge there at about six point thirty that night, making
the point about the police station not being open. And
there's a couple there and they go up. There's an
intercombuton on the front of the police station and they
(06:10):
go up and press it and they're trying to get
help from the police. And they press that into Coombuton
that says press for assistance, and all you hear is
that intercom button ring for more than ten minutes, Like seriously,
ran for more than ten minutes before they gave up
and they went somewhere else and they were actually asking
They didn't want to speak on camera, but they were
asking me what's going on. They were actually for me
(06:32):
to state and they were trying to find a police
station to get some help. And in the end I
had to tell them to go to Casarina. But there's
no sign at what looks like a police station, but
in the words of the Chief Minister, is just a
glorified office building and the biggest joke in town. There's
no sign there that says this is not a police station.
There's no sign there that says, if you need urgent
help from the police, call triple zero. There's an intercom
(06:54):
there that says press for assistance, but when you press
the button and ask for assistance, you don't get any
You did hear a ring and a ring and a
ring and a ring?
Speaker 1 (07:02):
Yeah, and then I mean then when you're stupid, it
certainly is. And then when you hear that that whole
project has blown out by eighty eight point three million dollars.
Speaker 2 (07:15):
Three point three million.
Speaker 1 (07:16):
Dollars, Yeah, like if it wasn't so serious, it would
be laughable. But it's actually it's not monopoly money, like
this is the thing.
Speaker 2 (07:23):
It's real money. Yeah, that's that's right. No one, No
one thinks that it used to be funny. It's not
funny anything.
Speaker 1 (07:30):
No.
Speaker 2 (07:31):
And I'm you know, I wouldn't want to speak to
linfan Fikes family, but I don't think many business owners
in that precing I think it's funny.
Speaker 1 (07:39):
No, well, they met, they were messaging last week. Yeah,
they were messaging last week. I mean following on from
groups of young people. Then you know, allegedly armed with knives,
another one hitting cars with a metal pole like it's
beyond the joke. But I'm taking you, you know, I'm
leading you astray there, mad I suppose in terms of
our discussion, because today is indeed all about budget and
(08:01):
it looks like we are, you know, we're further into
that record level of debt, but we also have a
bit of a background I guess as to what's led
to some of that debt. But Matt, is there much
planned from the current government as to how they're going
to rain that in?
Speaker 2 (08:17):
Well, I have a few questions about that. I mean,
there is one one sort of headline act in that point,
and it says that agencies have been directed to find
twenty million dollars per year across government in operating savings
focused on reducing consultancies, travel, communications and marketing and other
discretionary spending, which I think most people will think is
(08:40):
a good thing. I mean, why we need when we
have twenty two and a half twenty three thousand public
servants in the Northern Territory, why we need to dish
out so many consultants so much work to consultants is
beyond me. So I think most people would welcome that.
But that's only twenty million dollars per year. That's a
drop in the ocean compared to the level of debt.
I mean, if you look at that debt being by
(09:02):
twenty twenty eight, twenty nine, nine hundred and eleven million
dollars per year, that's only you know, a fraction of
the interest that's going to be covered through saving yep.
So that's one of the cost saving measures that is
in there. There's no real detail of any cups if
you like. I mean the other issue that's a worry,
(09:23):
and you would have spoken about this on Monday, I'm sure,
is the shift shipment. So that's one hundred million dollar
project that's blown out I think more than four hundred
million dollars, and he's going to blow out more. We
just don't know how much it's going to cost, but
it's going to cost significantly more than the original budget.
Speaker 1 (09:40):
Yeah, well, it's a huge blowout. I did ask Selena
Rubo about this a little earlier in the morning when
she was on the show, and she'd said, you know,
the one hundred million dollar figure that had initially been
flagged was never it was never going to be delivered
at that cost. And I get that, but then it
went from three hundred to five hundred and something. I
know that in Cans they're delivering their project. I'm not
(10:02):
sure if it's you know, of the same scale or different,
but it's blown out to more than eight hundred million
dollars I think rightly. So there needs to be questions
as to why on Earth projects are blowing out, you know,
to the tune that they are. And there, you know,
there doesn't seem to be any kind of need to
(10:23):
stay on what's been tendered or you know, to stay
on track with that spending. And I get that there's
going to be variations, but when you're talking about variations
in the millions upon millions of dollars, it's wild.
Speaker 2 (10:37):
Yeah, absolutely it is. I mean you and I were
both at the Darwen Major Business Groups events a few
weeks ago before the federal election woe, when some of
this stuff was spoken about. I think there's two things.
I mean, we heard at that event about the need
for revenue generating infrastructure, and I think we do need
to look at infrastructure projects and determine whether they are
(10:59):
going to get revenue or not. Now you would argue
that the ship ship lift is a revenue generating project,
but I think the other thing we need to look
at is the point that you raise there. I mean,
it's a fastiple situation when something like the Tiger Brewnan
drive overpass can go out to tender and can be
awarded for sixty million dollars and then come back at
a cost of one hundred and sixty million dollars, and
(11:20):
so I think there has to be there probably has
to be a little bit of accountability on both sides
of that. There has to be accountability from both the tenderer.
I think there needs to be some more realistic tendering
that is done so that you know, we get a
realistic estimate of what the cost is going to be.
(11:42):
And then from the other side of things, from the
department side of things, they have to be more realistic
about the cost of these things up front. And then
I don't know whether there needs to be a situation
where it's almost like a fixed price contract or whether
there's only a variation of x percent out because to
have these sorts of blowouts you're having having projects blowout,
(12:05):
you know, by one hundred two hundred percent of the cost. Yeah,
that's just an unsustainable situation.
Speaker 1 (12:12):
Well, look if you're building your house, Matt, and it
blew out two hundred percent. We wouldn't I wouldn't be
able to keep building it.
Speaker 2 (12:20):
Strife, wouldn't you?
Speaker 1 (12:21):
You'd go bankrupt. Yeah, look, there definitely needs to be,
you know, some more accountability. I think in that space, Matt,
anything else we should be aware of before I let
you go this morning when it comes to this Northern
Territory budget.
Speaker 2 (12:36):
Oh look, I'm just you know, going through bit by bit. Well,
I'll tell you one other thing that piqued my interest.
And I think we know that the government's talking about
what are there three pillars? It's like reduced crime, rebuild
the economy, and restore the territory lifestyle. I was a
little bit amused in the in the Treasure of speech
(12:58):
to see under one of the head restoring the territory lifestyle,
it was new upgrades at Alice Springs Correctional Center and
you justice facilities. Now, I don't know whether they're planning
to turn that into a tourist attraction, will kit, But
that doesn't speak to restoring the territory lifestyle. I think
they've got a little bit of work to do in
that space. Yeah, and I think people will give them
(13:21):
some grace, and I think people will say, yes, please
go out and fix the crime issue. We know how
bad that you. Please restore the economy. We know it's
been in the doulgence for a long time, and there
are perhaps some indications that things are improving on that front,
but we haven't heard a hall of a lot from
them on the lifestyle piece at this stage. And if
one of your subheadings for restoring the territory's lifestyle is
(13:44):
upgrades to the Alice Springs Correctional Center and you justice facilities,
then I think you've got to be a work to
do in that space.
Speaker 1 (13:51):
I agree, Matt. What did you make of the treasury
going away still for the Barough Classic last week? I
know that a lot of listeners were going, do you
know what you can do? Both? At least he's still
volunteering at events. But I guess the opposition was very
you know, they very much were sort of saying, how
can you reel in the budget while you're out there
reeling in Barrah.
Speaker 2 (14:12):
Yeah. I don't think it was a great look, to
be honest with Katie. I mean, we're that and I've
spoken to people who work in politics again in politics.
He say basically, by that stage, you know it's all
done anyway, blah blah blah blah blah. But you know,
I would say that the Treasury staff weren't out there
fishing last week, and so I would say that probably
the treasure shouldn't have been either. I don't think it
(14:33):
was a great look under the circumstances.
Speaker 1 (14:35):
Yeah, I agree. Well, Matt Cunningham from Sky News, good
to catch up. Thank you very much for talking us
through the Northern Territory budget. Thanks Katie, Thanks mate,