Title : Delay in crisis report while NT pushes ahead with budget talks
link : Delay in crisis report while NT pushes ahead with budget talks
Delay in crisis report while NT pushes ahead with budget talks
The road map to rein in Northern Territory government spending may not be finished before decisions about this year's budget are being made.
Key points:
- Budget repair report was expected late February or early March
- Treasurer now says recommendations to be finalised "in the coming months"
- Cabinet is meeting to make budget decisions at the same time
Treasurer Nicole Manison said she expected the special report by businessman and former public servant John Langoulant to be finalised in the coming month, despite budget cabinet meetings taking place at the same time.
The recommendations on cutting government expenditure growth were previously expected by late February or early March.
But Ms Manison revealed at a press conference on Wednesday that the report may not be finished until April.
"I want to make sure that they get the report right," she said.
"The advice I've got is that they're working on that finalisation, there's been a huge body of work that has taken place.
"I would expect that that would be completed in the coming month."
Mr Langoulant said earlier this year that he would be identifying ways to cut expenditure growth from 6 to 3 per cent, equivalent to $200 million.
Nicole Manison downplayed any concern about proceeding with budget cabinet meetings without the report's recommendations.
"Budget cabinet will be ongoing over the next month and the lead-up to the budget, it's not over."
Chief Minister Michael Gunner has previously nominated the police, corrections and health portfolios as "serial offenders" in budget blow-outs.
New figures show fifth straight drop in NT spending
Meanwhile, new figures showed business and household spending in the Northern Territory dropped again in the three months to December, marking the fifth consecutive decline.
There was a 2.3 per cent fall in state final demand — which measures the total value of goods and services sold — according to the Australian Bureau of Statistics
Two consecutive quarters of negative growth can be classified as a recession but CommSec economist Craig James stopped short of using the term for the Northern Territory economy.
"The usual estimate of whether an economy is in recession or not is two consecutive quarters where the economy goes backwards," he said.
"But we only do that by looking at the real or inflation-adjusted figures for the entire economy, and we haven't got the entire economy here — all we've got is household and business spending.
"Probably the better representation of the Territory economy is to include imports and exports and therefore you're including the income that's generated by the gas assets."
He said there was a similar downturn in 2015 and the small size of the Northern Territory economy meant fluctuations are not unusual.
Opposition leader Gary Higgins said in a statement that the figures showed a "deep recession" continuing.
"This is another blow to Territorians who are doing it tough," he said.
"[It's] further evidence of why Territorians no longer have confidence in this Labor Government."
The ABS report said household consumption in the Territory continued a decline in the latest quarter.
But it said the biggest lag on growth was "private investment driven by non-dwelling construction".
Construction activity was down 32.7 per cent on the decade average, according to the January CommSec report.
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