Episode Transcript
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Speaker 1 (00:00):
Now the government say they're taking decisive action to break
the cycle of crime when it comes to this year's budget,
but it is also going to be at a cost.
Speaker 2 (00:10):
The treasure of Bill Yan yesterday.
Speaker 1 (00:11):
Handing down his first budget and revealing the Northern Territory's
net debt is going to reach more than twelve billion
dollars next financial year, with the budget forecasting a further
increase to nearly fourteen billion dollars by twenty twenty nine. Now,
my understanding is that that equates to about nine hundred
and nine hundred and eleven million dollars in interest each
(00:35):
year alone. The budget shows the government is going to
have to borrow two hundred and sixty five million dollars
to fund its day to day operations next financial year,
and another one hundred and one million in twenty six
twenty seven. There's a lot of numbers to take in there.
But joining us in the studio is the Northern Territory
(00:56):
Treasurer Bill Yan.
Speaker 3 (00:57):
Good morning to you, Good morning, Kay, and good morning
to everybody in the top end.
Speaker 1 (01:01):
Well, Treasurer, it was a big day for you yesterday,
your first ever budget, and I know that it's revealed
what probably isn't a huge surprise to any of us,
but we are in a massive amount of debt. It's
eye watering. I certainly get that you've inherited that disk,
but what's going to be done to try and rain
it in?
Speaker 3 (01:20):
Yeah, and that's the thing. We're dealing with a lot
of legacy issues left by the previous government and you
can't just walk in and stop services. We still have
to keep things going. There was effectively a one point
four billion dollar black hole within Territory Labour's last budget.
There was all these funding cliffs of services that they
(01:40):
didn't fund ongoing.
Speaker 2 (01:42):
So what kind of things are we talking?
Speaker 3 (01:43):
There was stuff in health age care, There was infrastructure projects.
If I think if you look at the State Square,
our gallery, the funding for that there was no funding
after July this year. So there's all these things that
weren't funded on going to try and make the budget
position look better. Now, what we've done, We've made the
(02:04):
hard decision to look at what we have to fund
and what we what we must do into the future
and actually put those numbers into the budget so we
actually know what the real cost is going to be,
not a hidden cost.
Speaker 2 (02:16):
So do you reckon. They were fudging the books.
Speaker 3 (02:19):
Well, they were just not funding. Well, they're being very
tricky with their books. What they were doing is that
we know that Okay, there was a project save for
DV that was going to run for five years, but
they only funded it every year. So it comes to
the end of the year, there was no funding for
the next year. Okay. So what that does is doesn't
show up in the forward estimates. So that's just one
example of a lot of things that were happening. So
(02:39):
it worked out to be three hundred and fifty million
dollars per around them in shortfalls. And the only way
to try and save that money I think I've used
the analogy before. To save one point for million billion
dollars sorry over the forward estimates, you'd have to sack
four thousand public servants and we can't do that. We
(03:00):
won't do that because that will cripple a territory, it
would cripple our economy and actually send us backwards. So
we've had to make the decision to include this stuff
into the budget going forward. We've had to make the
decision to spend where we desperately need to, and that
comes at a cost Kadie.
Speaker 1 (03:15):
I mean, Bill, like you said, they're three hundred and
fifty million dollars per annum that they haven't sort of
forward estimated that they hadn't forward estimated. But the fact
is we're looking at paying nine hundred and eleven million
dollars in interest alone each year.
Speaker 3 (03:32):
Yeah, and that's on that debt. So what we see,
we've got a deficit in the non financial public sector
this year. It was projected to be one point seven billion.
We've got that down to one point three And what
we're seeing we're seeing a reduction in that in the
outer years. So that's reducing which then reduces our debt.
The debt is still there. The debt won't go away.
(03:53):
I can't magically get rid of the debt overnight. It's
going to take a lot of years to start dealing
with that debt issue. But we're starting to reduce those numbers,
and that two hundred and sixty five million dollar deficit
in the general public sector that is actually moving to
surplus within two years. So we see reduction next year
and then we're going to start to see some surpluses
in the outer years.
Speaker 1 (04:13):
Okay, I still want to stay on the some of
those projects that you listed yesterday when you handed that
budget down, you went through a number of projects which
were promise by the former government which.
Speaker 2 (04:23):
Have blown out.
Speaker 1 (04:26):
Some of those you know, like you look at the
Tiger Brennan project for example, I think it was one
hundred million dollars. It's a huge amount of money. You
look at the Nightcliffe Police Station that a lot of
people are really very critical of this off at this
point in time because it's not operating in the way
that they.
Speaker 2 (04:40):
Might expect it to.
Speaker 1 (04:42):
But I guess the question is, first off, how much
have those projects? Will those project blowouts cost the Northern
Territory taxpayer?
Speaker 3 (04:50):
Well, I don't have the actual number of all those
blowouts in my head added up, but look, tyger Brenham
was nearly one hundred million dollars. I believe the mandor
a Jetty is nearly sixty million dollars over the States
Square Our Gallery is projected to be sixty to seventy
million dollars over. You look at the artcout in Our Springs,
there was one hundred and fifty million dollars budgeted, but
(05:13):
it was going to cost an exit, It was going
to cost in excess of three hundred million dollars to
deliver that. So these are some of the projects because
they just they weren't managing those projects probably. But the
other issue that we face is, of course they were
I suppose governing by press release in some respects. They
may make an announcement about this project. Great, happy days,
(05:34):
We're going to do this wonderful project, but then it
sits on the books for years and years and years.
So the numbers that we used to put this project
together eight years ago are not really different, not relevant today.
And they didn't go back and rescape these projects, which
is why we find ourselves in some of the situations
we see and look to a.
Speaker 1 (05:52):
Lot of people listening this morning, they're going to be going, okay,
so we didn't do it correctly previously. What is the
COLP government going to do though, to ensure that this
doesn't continue to happen.
Speaker 3 (06:04):
Well, and that's the key, Katie, and we won't be
allowing that to happen. If we're looking at those infrastructure projects,
we'll make sure that their scope properly. And I think
I've spoken to Logistics and Infrastructure about this and I
agree is that and it's an old anecdote like, it's
great to be doing one hundred things, but you're only
doing ten things. Well, what we want to do now
(06:24):
is we want to do those ten things, and we
want to do them well. So they had a huge
program and they're being pulled in millions of different directions
because it was pressure release after pressure release of new project,
new project, new projects without without the people and systems
behind to be able to do that work.
Speaker 1 (06:42):
So do you think, though, that there needs to be
a clause in the tendering process to stop projects from
blowing out to the extent that they do, Because we
all get it right, like with a major project, something
like the ship lift, for example, that your original scoping
work might be one hundred million dollars, and then you know,
as things get underway, as you wait for approvals and
all that sort of process, that some of the cost
(07:05):
of delivering that project your materials might change, so it
might go up a little bit. But should there not
be some kind of clause in a tendering process which says,
if you know, if the cost blows out more than
x amount or x percent, then you either lose the
tender or the project. I don't know, do you stop
(07:26):
pulling us.
Speaker 3 (07:27):
Well, it comes down to effective project management, Cadie, and
that's what we need to do.
Speaker 2 (07:30):
And so has the department not been doing that? Who's
not been doing it?
Speaker 3 (07:34):
Well? The Department's been stretched so thin. I'm trying to
manage a million different projects rather than looking after a
few and doing them really well. And that's the change
we need to see. And the issue, of course is
again these projects are scoped ten years ago and then
they sit on they just sit there and nothing happens,
and nothing happens, and nothing happens off yep. And that's
if you look at it. They had a five point
(07:55):
two billion dollar infrastructure program last year. There was one
point two billion I think spent on the infrastructure carereum,
but labor only actually budgeted in this year's budget. When
you look at their papers, three hundred million dollars to
deliver one point two million dollars worth of program So
and these a lot of these programs are already under way, Katie.
(08:15):
We can't stop them. Like their roads are being built.
Do we the state scare are art gallery. Do we
just stop that today and leave a concrete car half
hanging out of the ground so we've had to come
in and fund these legacy issues, which then shows up
in some of the debt that we see. But going forward,
program management within infrastructure is going to be key and
(08:37):
I'm really hard on the department about this, and I
think all the ministers are back into their age. It
is about the scoping and what programs that we do
to make sure that it's done properly, on time and
within budget.
Speaker 2 (08:48):
That's what we've got to do, so treasurer across the board.
Speaker 1 (08:50):
I mean what we have seen as well with some
of the different departments is there's a huge overspend every year.
So what have you said to the other ministers and
they've said to their departments try and bring that spending in. Yeah.
Speaker 3 (09:02):
Look, we've been quote critical on the departments. There's a
effectively on every agency now they have to come up
with twenty million dollars in savings and that's through consultancies,
travel and other.
Speaker 1 (09:13):
Every agency agency's got twenty million.
Speaker 3 (09:15):
I've got to save twenty million bucks per year per
year in starting from this budget. So that is that
has been given to the agencies. They are unnotice that
they have to do that, so they have to find
those twenty million dollars in savings every year.
Speaker 1 (09:31):
Is that going to mean that we'll see a diminishing
of services? I mean twenty million dollars for example within
the Health Department, let's say delivering those frontline services. Is
that going to mean that we're going to see less
people working less services?
Speaker 3 (09:45):
Now, this is this isn't about frontline services. Okay, We've
invested in frontline services, and that is a key for
us is to make sure that we invest in those
frontline services. But this is other things, be back of.
Speaker 2 (09:56):
House travel allowance, that kind of stuff.
Speaker 3 (09:58):
Okay, So it would be nice to send someone on
an overseas trip together with this, Well, sorry, that's not
going to happen. We can't afford it. Consultancyes okay, reduced consultancies.
We've got great people in a public sector who can
do that work. So why do we need to be
farming it out to somebody else?
Speaker 1 (10:15):
So, Treasurer, we know the government's largest expenditure is public
service employee costs. I mean you've just sort of touched
on that, which are expected to grow four point nine
percent in twenty five twenty six financial year. Employee costs
account for about forty one percent of the government's total
expenses at around four billion dollars per year. I mean,
(10:38):
you've just said your expectation is that every department needs
to save twenty million dollars per annum. But what else
is going to be done to rain this in. I mean,
despite the fact that the population doesn't seem to be growing,
our public service continues to grow.
Speaker 3 (10:52):
Yeah, and I think I've spoken about this on the
show before Cad and we've certainly spoken about it in cabinet,
is that there has to be a cap on public
service numbers. We can't continue to see a public service
balloon out. Our focus is on frontline services. We won't
we will not allow increases in the public sector numbers
(11:14):
unless they desperately have to be there. And some of
those areas that we will see some increases corrections, police courts,
to deal with those law and order issues. So yes, okay,
those increases are justified over there. But our key focus
is on if we're going to increase service, increase public servance,
it is in those frontline services and it has to
(11:36):
be absolutely justified.
Speaker 1 (11:39):
Treasurer aware, are we then seeing some big spends and
what are you doing to keep the economy moving, or
to really try to get the economy moving. I know
that yesterday in your budget speech you had touched on
the fact that seventy percent I believe of our revenue
comes from the federal government. I mean, we're so reliant
on the federal government. Surely we've got to have some
(12:00):
of our own source revenue or more of our own
source revenue coming in. We need some major projects moving
so that we can get the economy moving and not
be so reliant on the fence.
Speaker 3 (12:09):
Yeah, and that's we need to increase our own source revenue.
So we've made a couple of changes I suppose in
that racing, gaming and wagering area, so that is an
increase in revenue to the territory. Of course, we need
some of those bigger projects, those private projects which will
bring well to the territory of the ground. Boodloo is
one of those. There was an announcement just last night
(12:31):
that there's been a joint agreement reached between Tamberan and
Daily Water's Energy which will give Tamborin additional investment opportunities
so that they can start to progress. So those are
the projects that we need to see coming out of
the ground because they will bring revenue, jobs and wealth
to the territory. So Territory Coordinated plays a key piece
(12:53):
in this Katie, the Fast Track Approvals Task Force, which
will be delivering their I believe in June. Of course,
the Chief Ministers has told us pretty clearly that the
minute we get that report as ministers, we need to
start going out and implementing those recommendations through our departments,
because by reducing red tape and speeding things up provides
(13:16):
that certainty for business to invest. We know the Territori's
got everything in the country needs.
Speaker 1 (13:21):
We have everything.
Speaker 3 (13:22):
We've got the minerals, the agriculture, the energy, we have everything.
We just need to let the rest of Australia know that.
And we need to be the place to do business
and that's what we're working hard to achieving. That will
generate our own source revenue and make us less reliant
on the federal government.
Speaker 1 (13:39):
Now, if you have just joined us in the studio
with me is the Northern Territory Treasurer Bill Yan following
on from his first budget being handed down yesterday, Treasurer,
we know that there is a real focus on law
and order in this budget. Increase budgets to police, increase
budget to correctional services. Do you think there needs to
(14:01):
be that investment. Obviously it's in reducing crime.
Speaker 3 (14:04):
Yeah. Look, and one of our key pillars is reducing crime,
and we walked into a crime wave. We're working very
very hard now to deal with that. And this is
the biggest law in order to spend in territories in
the territory's history. One point five billion dollars in law
in order, six hundred and sixty eight million dollars for
police loan, which is the largest spend on police ever,
(14:28):
over five hundred dollars into corrections, and then the rest
is made up of courts and those court support services
because we've seen a lack of if you look at
corrections and courts, we've seen investment in the police, but
there was no investment in the courts and of course corrections.
And we know for every dollar you invest in the police,
you need to put a dollar fifty into your downstream
(14:50):
services where they be courts, corrections and those legal services.
And that didn't happen. So we're investing heavily in there.
We put five hundred beds in corrections in just the
last six months, which is absolutely amazing. The work done
by corrections and delay to make that happen is absolutely amazing.
But we've had to do that because we need to
(15:11):
deal with the law and order issues, because if we
can't restore our lifestyle until we deal with the crime issues.
It's one thing. You can't have a great lifestyle if
you're not confident to walk outside you or confident to
go to the shops. So we're investing heavily in that
law and order space because dealing with crime then creates
(15:34):
all those opportunities for investment, growing our economy and of
course improving that lifestyle. So that is a key piece,
which is why we've invested that one point five billion
into the law and order spots.
Speaker 2 (15:47):
TREASURER a couple of quick ones. We know that.
Speaker 1 (15:49):
Yesterday the leader of the Opposition, Selena Ubo joined us
on the show. She was questioning where there would be
cuts in terms of projects. She questioned the COLP government's
vision when it comes to.
Speaker 2 (16:00):
Growing the Northern territory.
Speaker 1 (16:02):
I mean, obviously their vision was an expensive one, like
let's not beat around the bush things like the State Square.
You know, some of the other projects they have been
quite expensive, but I guess they would argue they had a.
Speaker 2 (16:15):
Vision for the Northern Territory. What's your vision?
Speaker 3 (16:18):
Well, our vision is a growing economy, an economy where
business has confidence to come and invest, where we have
investors wanting to come to the territory, and having the
territory as the best place to live, do business and
invest in. That's what we're working to do. But we
also have to do that hard work on dealing with
the debt two KD because we can't just keep going
(16:40):
down a road of debt increase. Now, labor was hiding
that away year on year on year, but at some
stage are we're going to have to fund it. They
were going to breach their own self imposed debt ceiling.
They were trying to hide that coming into the election,
but they were on that spending spree and would have
seen that debt just continue to escalate and god knows
where where we would have ended up, Katie. So we're
(17:02):
doing that hard work and rationalizing what our spending looks
like to try and rain in that debt. Now we
can't get rid of it. We have to work with
the federal government and our compact around our GST revenue
and all the other stuff that we get, and we
want to work with the federal government to make sure
that we're not just getting handouts and lip service to
(17:23):
keep the status quo. We need the federal government to
work with us on some of those nation building projects
of course, or Middle arm we have the ship lift,
all those other things that are taking place, but also
some taxation concessions for the territory to make people want
to come here and do business and make territory business,
I suppose, more competitive with the rest of the country
(17:46):
and to make sure that we're getting our fair share
of the GST. But of course the big thing for
us is defense. We know how critical defense is. We
know our importance of where we sit in nationally in
defense to Asia and the rest of the world. So
we need the federal government to be working with us
to invest in defense too.
Speaker 1 (18:07):
True, sure, there is a lot of messages coming through
this morning. I will just so go to something that
came through yesterday. Now, there's reports in the Australian newspaper
that Health Scopes Board this week have effectively pleaded for
bankers to take control of the hospitals, allowing it's Brookfield
back directors to walk away. Now some listeners are asking
if there have been any funds allocated in the budget
(18:30):
as a reserve to bail out the Darwin private hospital
if necessary.
Speaker 3 (18:35):
I don't know if we have any specific funds in
the budget to bail out the private Hospitalcadia. I know
that we've invested over again. It's another record investment in
our health sector, well over two billion dollars and that's
one point five billion dollars for our hospitals, is I
think three hundred and thirty million dollars for primary health
and then our remote areas. So we have a huge
(18:57):
investment in our healthcare system. But I don't believe that
I've got any money that I've stashed away in the
budget to bail out of a private hospital. Should there
be well, we'd have to look at the services that
they're providing Katie in and see if the private hospital
here is going to cease what services that then we
may be able to take over and again at what
(19:17):
cost That will be the key. So I haven't put
my mind to it at this stage. I'm not sure
whether the Minister Edgington, the Health Minister, has but I
think that's a discussion we're going to have to have
fairly soon.
Speaker 2 (19:28):
Bill Yan, just very quickly.
Speaker 1 (19:29):
You copped a bit of flak last week for being
at the Barot Classic the week before the budget was
handed down. I mean, do you regret that decision or
do you stand by it?
Speaker 2 (19:39):
Are you glad you went?
Speaker 3 (19:41):
Absolutely glad I went, Katie. I've been volunteering there for
thirteen years now. I've been a patron and supporter and
sponsor of the Barrack Classic. And You've only got a
look at what wreck fishing does for the territory, Katie.
Two hundred and fifty million dollars in revenue to the territory,
thousands of direct and indirect jobs. And if you look
at the Daily River on the economic bene to that
region from those two big fishing comps, the Barow Classic
(20:03):
and the Baronats, there's hundreds upon hundreds of people coming
from all over the territory in Australia and inject huge
amounts of money into the Daily River region. I'm going
to the pub, going into the community store, going to
the arts center, so there's a huge benefit to what
happens down there. And then of course all those competitors
that come up from in the state and the spend
(20:24):
they do here. I'm so proud to be a part
of that, and I've been doing it for a long time.
Speaker 2 (20:29):
So Treasurer, what job were you doing there?
Speaker 1 (20:31):
Because I know some people are like, well, I think
there's a big difference between whether he's they're just fishing
or whether he's volunteering.
Speaker 2 (20:37):
So tell us what you're doing.
Speaker 3 (20:39):
Yeah, no, I'm volunteering. I have been for a volunteer
at the Baro Classic for thirteen years as a marshal,
so we're responsible for safety on the river, etiquette and
of course making sure people aren't cheating. Fishermen don't cheat
at all except when they meet, except when they measure
their fish. So yeah, that's my role. For the last
three years, I've been the chief Marshal because the old
chief marshals stepped aside and I've stepped up and taken
(21:01):
on the chief Marshall's responsibility. So we're up early, really early,
make sure all the starts happen safely. Then we're down
the river just I said, doing safety and etiquette type stuff,
and of course at the end of the day we're
the last boat back up the river to make sure
that all the competitors are off the water. Everybody's back
at base safely, and we carry spears, sat phones and
(21:23):
all those sorts of things. I fixed a couple of boats.
The other marshals towed a broken boat back up for
a tourist. Funnily enough.
Speaker 1 (21:29):
So well, it sounds like you're busy down there and
then having to do your calculations at nighttime. I'm assuring
ssooming Bill. Yeah, Treasurer of the Northern Territory, we are
going to have to leave it there. I can see
the next guest coming up the stairs. Good to catch
up with you.
Speaker 3 (21:41):
Thank you, Thanks Katie, thanks for having me on.
Speaker 2 (21:43):
Thank you.
Now the government say they're taking decisive action to break
the cycle of crime when it comes to this year's budget,
but it is also going to be at a cost.
Speaker 2 (00:10):
The treasure of Bill Yan yesterday.
Speaker 1 (00:11):
Handing down his first budget and revealing the Northern Territory's
net debt is going to reach more than twelve billion
dollars next financial year, with the budget forecasting a further
increase to nearly fourteen billion dollars by twenty twenty nine. Now,
my understanding is that that equates to about nine hundred
and nine hundred and eleven million dollars in interest each
(00:35):
year alone. The budget shows the government is going to
have to borrow two hundred and sixty five million dollars
to fund its day to day operations next financial year,
and another one hundred and one million in twenty six
twenty seven. There's a lot of numbers to take in there.
But joining us in the studio is the Northern Territory
(00:56):
Treasurer Bill Yan.
Speaker 3 (00:57):
Good morning to you, Good morning, Kay, and good morning
to everybody in the top end.
Speaker 1 (01:01):
Well, Treasurer, it was a big day for you yesterday,
your first ever budget, and I know that it's revealed
what probably isn't a huge surprise to any of us,
but we are in a massive amount of debt. It's
eye watering. I certainly get that you've inherited that disk,
but what's going to be done to try and rain
it in?
Speaker 3 (01:20):
Yeah, and that's the thing. We're dealing with a lot
of legacy issues left by the previous government and you
can't just walk in and stop services. We still have
to keep things going. There was effectively a one point
four billion dollar black hole within Territory Labour's last budget.
There was all these funding cliffs of services that they
(01:40):
didn't fund ongoing.
Speaker 2 (01:42):
So what kind of things are we talking?
Speaker 3 (01:43):
There was stuff in health age care, There was infrastructure projects.
If I think if you look at the State Square,
our gallery, the funding for that there was no funding
after July this year. So there's all these things that
weren't funded on going to try and make the budget
position look better. Now, what we've done, We've made the
(02:04):
hard decision to look at what we have to fund
and what we what we must do into the future
and actually put those numbers into the budget so we
actually know what the real cost is going to be,
not a hidden cost.
Speaker 2 (02:16):
So do you reckon. They were fudging the books.
Speaker 3 (02:19):
Well, they were just not funding. Well, they're being very
tricky with their books. What they were doing is that
we know that Okay, there was a project save for
DV that was going to run for five years, but
they only funded it every year. So it comes to
the end of the year, there was no funding for
the next year. Okay. So what that does is doesn't
show up in the forward estimates. So that's just one
example of a lot of things that were happening. So
(02:39):
it worked out to be three hundred and fifty million
dollars per around them in shortfalls. And the only way
to try and save that money I think I've used
the analogy before. To save one point for million billion
dollars sorry over the forward estimates, you'd have to sack
four thousand public servants and we can't do that. We
(03:00):
won't do that because that will cripple a territory, it
would cripple our economy and actually send us backwards. So
we've had to make the decision to include this stuff
into the budget going forward. We've had to make the
decision to spend where we desperately need to, and that
comes at a cost Kadie.
Speaker 1 (03:15):
I mean, Bill, like you said, they're three hundred and
fifty million dollars per annum that they haven't sort of
forward estimated that they hadn't forward estimated. But the fact
is we're looking at paying nine hundred and eleven million
dollars in interest alone each year.
Speaker 3 (03:32):
Yeah, and that's on that debt. So what we see,
we've got a deficit in the non financial public sector
this year. It was projected to be one point seven billion.
We've got that down to one point three And what
we're seeing we're seeing a reduction in that in the
outer years. So that's reducing which then reduces our debt.
The debt is still there. The debt won't go away.
(03:53):
I can't magically get rid of the debt overnight. It's
going to take a lot of years to start dealing
with that debt issue. But we're starting to reduce those numbers,
and that two hundred and sixty five million dollar deficit
in the general public sector that is actually moving to
surplus within two years. So we see reduction next year
and then we're going to start to see some surpluses
in the outer years.
Speaker 1 (04:13):
Okay, I still want to stay on the some of
those projects that you listed yesterday when you handed that
budget down, you went through a number of projects which
were promise by the former government which.
Speaker 2 (04:23):
Have blown out.
Speaker 1 (04:26):
Some of those you know, like you look at the
Tiger Brennan project for example, I think it was one
hundred million dollars. It's a huge amount of money. You
look at the Nightcliffe Police Station that a lot of
people are really very critical of this off at this
point in time because it's not operating in the way
that they.
Speaker 2 (04:40):
Might expect it to.
Speaker 1 (04:42):
But I guess the question is, first off, how much
have those projects? Will those project blowouts cost the Northern
Territory taxpayer?
Speaker 3 (04:50):
Well, I don't have the actual number of all those
blowouts in my head added up, but look, tyger Brenham
was nearly one hundred million dollars. I believe the mandor
a Jetty is nearly sixty million dollars over the States
Square Our Gallery is projected to be sixty to seventy
million dollars over. You look at the artcout in Our Springs,
there was one hundred and fifty million dollars budgeted, but
(05:13):
it was going to cost an exit, It was going
to cost in excess of three hundred million dollars to
deliver that. So these are some of the projects because
they just they weren't managing those projects probably. But the
other issue that we face is, of course they were
I suppose governing by press release in some respects. They
may make an announcement about this project. Great, happy days,
(05:34):
We're going to do this wonderful project, but then it
sits on the books for years and years and years.
So the numbers that we used to put this project
together eight years ago are not really different, not relevant today.
And they didn't go back and rescape these projects, which
is why we find ourselves in some of the situations
we see and look to a.
Speaker 1 (05:52):
Lot of people listening this morning, they're going to be going, okay,
so we didn't do it correctly previously. What is the
COLP government going to do though, to ensure that this
doesn't continue to happen.
Speaker 3 (06:04):
Well, and that's the key, Katie, and we won't be
allowing that to happen. If we're looking at those infrastructure projects,
we'll make sure that their scope properly. And I think
I've spoken to Logistics and Infrastructure about this and I
agree is that and it's an old anecdote like, it's
great to be doing one hundred things, but you're only
doing ten things. Well, what we want to do now
(06:24):
is we want to do those ten things, and we
want to do them well. So they had a huge
program and they're being pulled in millions of different directions
because it was pressure release after pressure release of new project,
new project, new projects without without the people and systems
behind to be able to do that work.
Speaker 1 (06:42):
So do you think, though, that there needs to be
a clause in the tendering process to stop projects from
blowing out to the extent that they do, Because we
all get it right, like with a major project, something
like the ship lift, for example, that your original scoping
work might be one hundred million dollars, and then you know,
as things get underway, as you wait for approvals and
all that sort of process, that some of the cost
(07:05):
of delivering that project your materials might change, so it
might go up a little bit. But should there not
be some kind of clause in a tendering process which says,
if you know, if the cost blows out more than
x amount or x percent, then you either lose the
tender or the project. I don't know, do you stop
(07:26):
pulling us.
Speaker 3 (07:27):
Well, it comes down to effective project management, Cadie, and
that's what we need to do.
Speaker 2 (07:30):
And so has the department not been doing that? Who's
not been doing it?
Speaker 3 (07:34):
Well? The Department's been stretched so thin. I'm trying to
manage a million different projects rather than looking after a
few and doing them really well. And that's the change
we need to see. And the issue, of course is
again these projects are scoped ten years ago and then
they sit on they just sit there and nothing happens,
and nothing happens, and nothing happens off yep. And that's
if you look at it. They had a five point
(07:55):
two billion dollar infrastructure program last year. There was one
point two billion I think spent on the infrastructure carereum,
but labor only actually budgeted in this year's budget. When
you look at their papers, three hundred million dollars to
deliver one point two million dollars worth of program So
and these a lot of these programs are already under way, Katie.
(08:15):
We can't stop them. Like their roads are being built.
Do we the state scare are art gallery. Do we
just stop that today and leave a concrete car half
hanging out of the ground so we've had to come
in and fund these legacy issues, which then shows up
in some of the debt that we see. But going forward,
program management within infrastructure is going to be key and
(08:37):
I'm really hard on the department about this, and I
think all the ministers are back into their age. It
is about the scoping and what programs that we do
to make sure that it's done properly, on time and
within budget.
Speaker 2 (08:48):
That's what we've got to do, so treasurer across the board.
Speaker 1 (08:50):
I mean what we have seen as well with some
of the different departments is there's a huge overspend every year.
So what have you said to the other ministers and
they've said to their departments try and bring that spending in. Yeah.
Speaker 3 (09:02):
Look, we've been quote critical on the departments. There's a
effectively on every agency now they have to come up
with twenty million dollars in savings and that's through consultancies,
travel and other.
Speaker 1 (09:13):
Every agency agency's got twenty million.
Speaker 3 (09:15):
I've got to save twenty million bucks per year per
year in starting from this budget. So that is that
has been given to the agencies. They are unnotice that
they have to do that, so they have to find
those twenty million dollars in savings every year.
Speaker 1 (09:31):
Is that going to mean that we'll see a diminishing
of services? I mean twenty million dollars for example within
the Health Department, let's say delivering those frontline services. Is
that going to mean that we're going to see less
people working less services?
Speaker 3 (09:45):
Now, this is this isn't about frontline services. Okay, We've
invested in frontline services, and that is a key for
us is to make sure that we invest in those
frontline services. But this is other things, be back of.
Speaker 2 (09:56):
House travel allowance, that kind of stuff.
Speaker 3 (09:58):
Okay, So it would be nice to send someone on
an overseas trip together with this, Well, sorry, that's not
going to happen. We can't afford it. Consultancyes okay, reduced consultancies.
We've got great people in a public sector who can
do that work. So why do we need to be
farming it out to somebody else?
Speaker 1 (10:15):
So, Treasurer, we know the government's largest expenditure is public
service employee costs. I mean you've just sort of touched
on that, which are expected to grow four point nine
percent in twenty five twenty six financial year. Employee costs
account for about forty one percent of the government's total
expenses at around four billion dollars per year. I mean,
(10:38):
you've just said your expectation is that every department needs
to save twenty million dollars per annum. But what else
is going to be done to rain this in. I mean,
despite the fact that the population doesn't seem to be growing,
our public service continues to grow.
Speaker 3 (10:52):
Yeah, and I think I've spoken about this on the
show before Cad and we've certainly spoken about it in cabinet,
is that there has to be a cap on public
service numbers. We can't continue to see a public service
balloon out. Our focus is on frontline services. We won't
we will not allow increases in the public sector numbers
(11:14):
unless they desperately have to be there. And some of
those areas that we will see some increases corrections, police courts,
to deal with those law and order issues. So yes, okay,
those increases are justified over there. But our key focus
is on if we're going to increase service, increase public servance,
it is in those frontline services and it has to
(11:36):
be absolutely justified.
Speaker 1 (11:39):
Treasurer aware, are we then seeing some big spends and
what are you doing to keep the economy moving, or
to really try to get the economy moving. I know
that yesterday in your budget speech you had touched on
the fact that seventy percent I believe of our revenue
comes from the federal government. I mean, we're so reliant
on the federal government. Surely we've got to have some
(12:00):
of our own source revenue or more of our own
source revenue coming in. We need some major projects moving
so that we can get the economy moving and not
be so reliant on the fence.
Speaker 3 (12:09):
Yeah, and that's we need to increase our own source revenue.
So we've made a couple of changes I suppose in
that racing, gaming and wagering area, so that is an
increase in revenue to the territory. Of course, we need
some of those bigger projects, those private projects which will
bring well to the territory of the ground. Boodloo is
one of those. There was an announcement just last night
(12:31):
that there's been a joint agreement reached between Tamberan and
Daily Water's Energy which will give Tamborin additional investment opportunities
so that they can start to progress. So those are
the projects that we need to see coming out of
the ground because they will bring revenue, jobs and wealth
to the territory. So Territory Coordinated plays a key piece
(12:53):
in this Katie, the Fast Track Approvals Task Force, which
will be delivering their I believe in June. Of course,
the Chief Ministers has told us pretty clearly that the
minute we get that report as ministers, we need to
start going out and implementing those recommendations through our departments,
because by reducing red tape and speeding things up provides
(13:16):
that certainty for business to invest. We know the Territori's
got everything in the country needs.
Speaker 1 (13:21):
We have everything.
Speaker 3 (13:22):
We've got the minerals, the agriculture, the energy, we have everything.
We just need to let the rest of Australia know that.
And we need to be the place to do business
and that's what we're working hard to achieving. That will
generate our own source revenue and make us less reliant
on the federal government.
Speaker 1 (13:39):
Now, if you have just joined us in the studio
with me is the Northern Territory Treasurer Bill Yan following
on from his first budget being handed down yesterday, Treasurer,
we know that there is a real focus on law
and order in this budget. Increase budgets to police, increase
budget to correctional services. Do you think there needs to
(14:01):
be that investment. Obviously it's in reducing crime.
Speaker 3 (14:04):
Yeah. Look, and one of our key pillars is reducing crime,
and we walked into a crime wave. We're working very
very hard now to deal with that. And this is
the biggest law in order to spend in territories in
the territory's history. One point five billion dollars in law
in order, six hundred and sixty eight million dollars for
police loan, which is the largest spend on police ever,
(14:28):
over five hundred dollars into corrections, and then the rest
is made up of courts and those court support services
because we've seen a lack of if you look at
corrections and courts, we've seen investment in the police, but
there was no investment in the courts and of course corrections.
And we know for every dollar you invest in the police,
you need to put a dollar fifty into your downstream
(14:50):
services where they be courts, corrections and those legal services.
And that didn't happen. So we're investing heavily in there.
We put five hundred beds in corrections in just the
last six months, which is absolutely amazing. The work done
by corrections and delay to make that happen is absolutely amazing.
But we've had to do that because we need to
(15:11):
deal with the law and order issues, because if we
can't restore our lifestyle until we deal with the crime issues.
It's one thing. You can't have a great lifestyle if
you're not confident to walk outside you or confident to
go to the shops. So we're investing heavily in that
law and order space because dealing with crime then creates
(15:34):
all those opportunities for investment, growing our economy and of
course improving that lifestyle. So that is a key piece,
which is why we've invested that one point five billion
into the law and order spots.
Speaker 2 (15:47):
TREASURER a couple of quick ones. We know that.
Speaker 1 (15:49):
Yesterday the leader of the Opposition, Selena Ubo joined us
on the show. She was questioning where there would be
cuts in terms of projects. She questioned the COLP government's
vision when it comes to.
Speaker 2 (16:00):
Growing the Northern territory.
Speaker 1 (16:02):
I mean, obviously their vision was an expensive one, like
let's not beat around the bush things like the State Square.
You know, some of the other projects they have been
quite expensive, but I guess they would argue they had a.
Speaker 2 (16:15):
Vision for the Northern Territory. What's your vision?
Speaker 3 (16:18):
Well, our vision is a growing economy, an economy where
business has confidence to come and invest, where we have
investors wanting to come to the territory, and having the
territory as the best place to live, do business and
invest in. That's what we're working to do. But we
also have to do that hard work on dealing with
the debt two KD because we can't just keep going
(16:40):
down a road of debt increase. Now, labor was hiding
that away year on year on year, but at some
stage are we're going to have to fund it. They
were going to breach their own self imposed debt ceiling.
They were trying to hide that coming into the election,
but they were on that spending spree and would have
seen that debt just continue to escalate and god knows
where where we would have ended up, Katie. So we're
(17:02):
doing that hard work and rationalizing what our spending looks
like to try and rain in that debt. Now we
can't get rid of it. We have to work with
the federal government and our compact around our GST revenue
and all the other stuff that we get, and we
want to work with the federal government to make sure
that we're not just getting handouts and lip service to
(17:23):
keep the status quo. We need the federal government to
work with us on some of those nation building projects
of course, or Middle arm we have the ship lift,
all those other things that are taking place, but also
some taxation concessions for the territory to make people want
to come here and do business and make territory business,
I suppose, more competitive with the rest of the country
(17:46):
and to make sure that we're getting our fair share
of the GST. But of course the big thing for
us is defense. We know how critical defense is. We
know our importance of where we sit in nationally in
defense to Asia and the rest of the world. So
we need the federal government to be working with us
to invest in defense too.
Speaker 1 (18:07):
True, sure, there is a lot of messages coming through
this morning. I will just so go to something that
came through yesterday. Now, there's reports in the Australian newspaper
that Health Scopes Board this week have effectively pleaded for
bankers to take control of the hospitals, allowing it's Brookfield
back directors to walk away. Now some listeners are asking
if there have been any funds allocated in the budget
(18:30):
as a reserve to bail out the Darwin private hospital
if necessary.
Speaker 3 (18:35):
I don't know if we have any specific funds in
the budget to bail out the private Hospitalcadia. I know
that we've invested over again. It's another record investment in
our health sector, well over two billion dollars and that's
one point five billion dollars for our hospitals, is I
think three hundred and thirty million dollars for primary health
and then our remote areas. So we have a huge
(18:57):
investment in our healthcare system. But I don't believe that
I've got any money that I've stashed away in the
budget to bail out of a private hospital. Should there
be well, we'd have to look at the services that
they're providing Katie in and see if the private hospital
here is going to cease what services that then we
may be able to take over and again at what
(19:17):
cost That will be the key. So I haven't put
my mind to it at this stage. I'm not sure
whether the Minister Edgington, the Health Minister, has but I
think that's a discussion we're going to have to have
fairly soon.
Speaker 2 (19:28):
Bill Yan, just very quickly.
Speaker 1 (19:29):
You copped a bit of flak last week for being
at the Barot Classic the week before the budget was
handed down. I mean, do you regret that decision or
do you stand by it?
Speaker 2 (19:39):
Are you glad you went?
Speaker 3 (19:41):
Absolutely glad I went, Katie. I've been volunteering there for
thirteen years now. I've been a patron and supporter and
sponsor of the Barrack Classic. And You've only got a
look at what wreck fishing does for the territory, Katie.
Two hundred and fifty million dollars in revenue to the territory,
thousands of direct and indirect jobs. And if you look
at the Daily River on the economic bene to that
region from those two big fishing comps, the Barow Classic
(20:03):
and the Baronats, there's hundreds upon hundreds of people coming
from all over the territory in Australia and inject huge
amounts of money into the Daily River region. I'm going
to the pub, going into the community store, going to
the arts center, so there's a huge benefit to what
happens down there. And then of course all those competitors
that come up from in the state and the spend
(20:24):
they do here. I'm so proud to be a part
of that, and I've been doing it for a long time.
Speaker 2 (20:29):
So Treasurer, what job were you doing there?
Speaker 1 (20:31):
Because I know some people are like, well, I think
there's a big difference between whether he's they're just fishing
or whether he's volunteering.
Speaker 2 (20:37):
So tell us what you're doing.
Speaker 3 (20:39):
Yeah, no, I'm volunteering. I have been for a volunteer
at the Baro Classic for thirteen years as a marshal,
so we're responsible for safety on the river, etiquette and
of course making sure people aren't cheating. Fishermen don't cheat
at all except when they meet, except when they measure
their fish. So yeah, that's my role. For the last
three years, I've been the chief Marshal because the old
chief marshals stepped aside and I've stepped up and taken
(21:01):
on the chief Marshall's responsibility. So we're up early, really early,
make sure all the starts happen safely. Then we're down
the river just I said, doing safety and etiquette type stuff,
and of course at the end of the day we're
the last boat back up the river to make sure
that all the competitors are off the water. Everybody's back
at base safely, and we carry spears, sat phones and
(21:23):
all those sorts of things. I fixed a couple of boats.
The other marshals towed a broken boat back up for
a tourist. Funnily enough.
Speaker 1 (21:29):
So well, it sounds like you're busy down there and
then having to do your calculations at nighttime. I'm assuring
ssooming Bill. Yeah, Treasurer of the Northern Territory, we are
going to have to leave it there. I can see
the next guest coming up the stairs. Good to catch
up with you.
Speaker 3 (21:41):
Thank you, Thanks Katie, thanks for having me on.
Speaker 2 (21:43):
Thank you.
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