Senate debates

Monday, 2 May 2016

Bills

Northern Australia Infrastructure Facility Bill 2016, Northern Australia Infrastructure Facility (Consequential Amendments) Bill 2016; Second Reading

12:41 pm

Photo of Nova PerisNova Peris (NT, Australian Labor Party) Share this | Hansard source

I also rise to express my support for the passing of this bill and the implementation of the Northern Australia Infrastructure Facility Bill and indeed the northern Australia development strategy more broadly. It is always heartening—as we both know, Mr Acting Deputy President Sterle—to see the north of Australia, and particularly the Northern Territory, at the forefront of debate in this house. The development of northern Australia should be made an absolute priority for Australia—no question. After all, what is good for the North is good for the nation.

Territorians have heard for years about how the Top End is an untapped economic region that just needs infrastructure. We need investment—real investment—to be able to grow into a bigger and better economy. They have heard this talk, and it has never really been developed into as big a project as it could be, so many of my constituents are, I should say, sceptical about this talk. They wonder whether developing the North will really mean more jobs and whether those jobs will come to Territorians and not to those high-vis FIFO workers.

The Developing the North strategy has had bipartisan support for several years now, and I commend Minister Frydenberg and Shadow Minister Gray for the work that they have done in this area. I also commend Minister Canavan, who is here in the chamber, and my Territory colleague Warren Snowdon, as well as Alannah MacTiernan for her fierce advocacy. I commend all of their work in speaking up for northern Australia. The bipartisan work done in this space gives me hope that northern Australia will benefit from these strategies. After all, an increased focus on the Northern Territory's economy can only be a good thing for Territorians and Australia.

Recently, I have engaged with organisations like the Northern Territory Farmers Association, the Northern Territory Cattlemen's Association and the NT Livestock Exporters' Association, and there is a clear pattern in the issues that they are all facing. The one key major issue is infrastructure—the lack of roads, bridges, training and education facilities as well as housing infrastructure.

Northern Territory kids—and I have spoken many times in this chamber on this—are on average two years behind the educational outcomes of their east coast counterparts. In 2016, Territorians still have to fly down south for many medical procedures, and unemployment in remote Aboriginal communities is around 20 per cent and growing.

In order to change all of this, the Northern Territory is in desperate need of meaningful economic infrastructure. We need infrastructure that can be harnessed to benefit the whole of the Territory. What does this look like? It means quarantine facilities for our fruit and vegetable exporters. It means cold storage at our port. It means sealed and safe roads for our live cattle transport to improve access to the remote parts of the Northern Territory. It means upgrading our regional and remote airstrips and our ports. We need to ensure that we can move goods and people around in a way that is cost-effective and easy. It means adequate biosecurity measures. All of this, of course, means Australian jobs.

Fruit and vegetable growers in the Northern Territory are calling for real investment in quarantine facilities, which would eliminate the need to send produce down south to be processed and then exported. The Northern Territory should be able to export its own produce. The Northern Territory should be able to maximise the economic benefit that comes from its crops. The Northern Territory should be getting a slice of the pie. While I support this bill, it does somewhat highlight the difference between northern Australia and the big cities of the south. I note media reports today that say Sydney and Melbourne are likely to receive billions in public transport infrastructure funding in the upcoming budget. That is great for Melbourne and Sydney, and it is great for Mr Turnbull's marginal seat campaign. But in the Northern Territory, an upcoming prawn farming project, Project Sea Dragon, is struggling to secure funding to seal 50 kilometres of road. The project is worth $1.54 billion worth of investment not only for the heart of the Northern Territory but also for the border with Western Australia. Sadly, the project has to apply for a loan from the northern Australia loan facility. Sydney and Melbourne get big election commitments through asset recycling versus the Northern Territory, which has to apply for a loan to seal 50 kilometres of road.

We know that developing the north means sustainable development, which means protecting the environment and maintaining the sacred landmarks that make the Territory unique. But we need to be assured that any future development will not be at the expense of existing industries like tourism or at the expense of our pristine environment.

As well as big economic infrastructure, it is essential and imperative that we invest in the education and training of our young Territorians. It should be noted that almost a quarter of our population are under 16. That is extremely important to note. The previous Labor government made it possible for Territory kids to study medicine at Charles Darwin University, and now the Charles Darwin University has expanded its facilities to allow them to study specific training for the oil and gas industry. But more is needed. Too many Territory kids are well behind in literacy and numeracy and too many schools are under-resourced. We can talk about innovation until the cows come home, but if we do not talk about the education of our kids all the talk will fall on deaf ears.

The same is true of developing northern Australia. We cannot talk about developing the north without big investment going in to the education of our kids to make sure that when it comes time for them to contribute to the economic development of the Northern Territory they are ready for challenges that come their way. Developing the north also means recognising the unique economic factors that affect the Northern Territory, and how policy made in Canberra can adversely affect the Territory. The Territory does not just need a hand out; it needs a lift up. It also needs a federal government that recognises that things are different in the Territory. We are unique but we are ready. We know what our potential is.

The federal government, no matter who is in charge, needs to recognise that doing business in the Territory is different to doing business on the east coast or down south. A perfect example of this lack of understanding is of course the backpacker tax. The backpacker tax takes a sledgehammer to the Territory's tourism and agriculture industries in one big hit. Potential working holidaymakers are already avoiding the Territory in favour of Canada or New Zealand. Most of our farmers rely on backpacker labour, which makes up 90 per cent of their seasonal workforce. Our agricultural and tourism groups are extremely worried about this. Tourism numbers are already low and the agricultural industry is now struggling to find labour when it comes to harvesting their crops.

While the government has put the backpacker tax under review, there are fears that the damage has already been done and that the tourism industry has already suffered. The CEO of NT Farmers, Mr Shenal Basnayake, said to me, 'We are uncertain at this stage what the full impact of the backpacker tax and other issues around the workforce will be, however the early indication through discussions with farmers is that they are seeing reduced numbers of job applicants.'

This is extremely bad news for the Northern Territory, and I strongly urge the government not to go ahead with the backpacker tax plan. In fact, I am glad that Senator Canavan is in the chamber to listen to me speaking on this. I was with him recently in Darwin and I know that the NT Farmers felt his passion, and he is very committed to developing northern Australia. But this is of grave concern to the NT Farmers and I urge Senator Canavan to reconsider what is going to happen to the industry from this.

This is simply common sense. We cannot claim to be prioritising the economic benefits of the Northern Territory while making it harder for the Territory's job creators to do business and, most importantly, sustain their businesses. Policies like the backpacker tax are short-sighted and do not take into account the needs and the harsh conditions of the Northern Territory. As well as infrastructure, we also need to end the lack of understanding of the Territory economy, otherwise we risk making a mockery of the idea of developing the north.

Aboriginal Territorians need to be included in this process. There needs to be a consultative process that engages traditional landowners in the process of developing the north and includes them in benefitting from the flow-on from that development. The CEO of the Northern Land Council, Mr Joe Morrison, has said on many occasions that Aboriginal people need to be included in the process. He has fears of a lack of involvement for Aboriginal people in the development and therefore a lack of economic benefit for Aboriginal people. Mr Morrison has said, 'Aboriginal people want to share the advantage that flows from our proximity to Asia from northern development, but traditional owners need to be consulted about economic activity on their lands.' The economic benefits that flow from new infrastructure and the increases economic activity in the NT need to flow through to investment in health and education for Territorians.

The northern Australian infrastructure loan facility will be essential in providing funding for the absolutely vital infrastructure funding for the Northern Territory, which has been needed for many years. I hope all Territorians can benefit from the infrastructure that comes from the loan facility and that economic benefits mean a better standard of living across the Territory, from Darwin to Alice from east to west Arnhem Land and into the remote communities. This bill is a huge step in the right direction. But it does not go unnoticed in the Territory that while people in Melbourne and Sydney have infrastructure thrown at them when the election comes around, the Northern Territory is still stuck having to apply for loans. I am optimistic but also pessimistic about the growth and future of the Northern Territory, but I do hope that this bill is a vote of confidence in the viability and bright prospects of Australia's north.

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