No fed help for NT out of budget crisis

The NT will not get a bail-out from Canberra for its budget crisis as the nation's leaders blamed each for while announcing money for Kakadu.

Northern Territory Chief Minister Michael Gunner says he won't ask the federal government to rescue it from a budget crisis with a bail-out but does expect help after both the prime minister and opposition leader had to confront the issue at Kakadu.

Prime Minister Scott Morrison said the NT Labor government had to sort out their own problems and deal with the consequences while federal Labor leader Bill Shorten blamed the previous Country Liberal Government for the Territory's record debt and deficit problems.

It was announced last month that the NT Government was borrowing to cover day-to-day expenses including public servants' wages, with the deficit to hit $1.5 billion this fiscal year and net debt to hit $35.7 billion by 2030.

Treasury admitted the budget position was "unsustainable" and in a report largely blamed a declining economy now that the $US45 billion Inpex gas boom was complete and falling GST revenues at a time of increasing spending on health and youth justice.

Mr Gunner and Mr Shorten blamed the "profligate spending" of the previous CLP NT government and not putting in place post-Inpex plans while in Kakadu to announce $220 million in funding for the national park this week.

"The CLP had an Inpex party then when they were running out of money and sold TIO (Insurance company) and the port and basically left the Territory poorer than when they found it with fewer assets," Mr Shorten told reporters.

"Everyone knew inpex was coming to an end, the CLP did not prepare for anything except for more debt for Territorians."

Mr Shorten did not commit to bailing out the Territory, other than to say if elected he would support NT schools, the university, training apprentices and the healthcare system.

Mr Gunner accused the federal government of crippling the budget by walking away from a 50/50 hospital funding deal, with further cuts to health funding to come.

The comments prompted Indigenous Affairs Minister Senator Nigel Scullion to send him an angry letter on Monday night defending the CDP for creating nearly 30,000 jobs and greatly lifting community engagement.

"If you have some evidence to support your claim that the CDP has affected the NT Budget, I would urge you to detail to me how," Mr Scullion wrote.

Mr Morrison said while in Jabiru announcing his own $216 million Kakadu package that his government had already "stumped up" $1 billion supporting the NT including GST "top-up" funds, indigenous remote housing funds, a Darwin City Deal and money for Kakadu.

"I get it, people are concerned about their futures in the Territory, we're doing everything we can to alleviate those concerns by these types of investments," he said.


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3 min read
Published 15 January 2019 3:08pm
Source: AAP


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