KATIE WOOLF:
There is always a lot to take in when the Federal Budget is handed down. What we do know is there’s still a lot of concern for Australians around the cost of living. Debt is going to hit, as I understand, $1 trillion next financial year. There’s some alarming energy price forecasts. That’s prompted the Treasurer Jim Chalmers to threaten market intervention if needed to buffer that pain felt by households. But at this stage we don’t really know if those soaring energy costs are going to have much of an impact in the Northern Territory as Power and Water is indeed a government‑owned corporation. So, there is a lot to take in, there’s no doubt about that, but joining me on the line to tell us more about the situation, exactly what is in the budget for the Northern Territory, is the Assistant Treasurer and the Minister for Financial Services, Stephen Jones. Good morning, to you, Minister.
STEPHEN JONES:
Good morning. Good to be with you.
WOOLF:
Thanks so much for your time this morning. Now, Minister, we know that Jim Chalmers presented that five‑point cost plan for cost-of-living relief in the budget. Cheaper child care, expanding paid parental leave, cheaper medicines, more affordable housing and getting wages moving again. But there is no doubt that the cost of living is set to surge by the look of things. How does the budget help to bring down the cost of living?
JONES:
It’s got to be very targeted, is the first thing. I’ve got to say, Katie, we just cannot be pumping billions of dollars into the economy at a time when we’ve got inflation rising and real supply constraints, whether it’s labour supply constraints or building materials. Just about every input into industry at the moment is in shortage, so we’ve got to be very, very careful about how we manage the expenditure. Of course, as you also mentioned at the top of your program, we’ve got a trillion dollars’ worth of debt, the interest payments on which are more than we spend on aged care. So we can’t be writing billion dollar cheques. We’ve got to bring expenditure down, do what we can to help households, but also be upfront and honest with them about what’s coming down the track.
WOOLF:
The Federal Government has very much been upfront about this and even prior to handing down that budget last night, the Treasurer was pretty straightforward in saying that it can’t be a “spend‑athon”. How is the government planning to help get those wages moving again, because I think that that is such a huge factor here?
JONES:
Yeah, good question. So, the first two things we did, we worked with the Fair Work Commission to see that there was an increase in minimum wages for the lowest paid workers, one of the first things we did in the first two weeks of government. That saw a significant wage rise of around about $40 a week for Australia’s lowest paid workers. We’re working with the aged‑care sector, another big employer, very low‑paid workers, finding it difficult to attract staff. So, Fair Work Commission’s got a wage case going on there and we’ve agreed that we’ll fund and work with industry to ensure they have the funds to have that money flowing through to the workers in that sector as well. But also getting bargaining moving again, ensuring that there is a way for workers to bargain fairly with their employers to get a good outcome that suits everyone. The existing bargaining system is broken; it’s not working for anyone. So, there’s three things that we’re working on, Katie, and there’ll be more to come in this area as well. We want to ensure that workers get a fair pay rise, but we want to do it in a sustainable way that matches pay rises with productivity growth as well.
WOOLF:
Minister, what do you say to Territorians that are listening this morning who are thinking, their wages aren’t growing but the cost of living is, petrol’s soaring and they’re thinking to themselves “There’s nothing in this budget for me”?
JONES:
Well, firstly, there is plenty in the budget for Territorians. Our child care commitments will see a significant saving for families with kids in care, and they can make rational decisions about who returns to work and for how many days a week. We’re slicing about twelve bucks fifty off the price of a prescription, so medicine costs are going to come down. Our investment in housing will make rents more affordable over the medium term. So, there’s a bunch of stuff in there. I don’t want to overcook it. I don’t want to say this is going to solve everybody’s problems, because that would be dishonest. We will manage the things we can. Energy a big one. You talked about that at the top of the intro as well. We are currently facing the result of what happens if you don’t do anything on energy for ten years, and that’s where we’re in. We’ve just had these ridiculous arguments about renewable energy and whether climate’s changing and all the rest of it, instead of getting on and rebuilding our energy system, generation and redistribution. We’ve been caught in a political quagmire and that’s why, one of the reasons why, prices are going up at the moment. Putting that behind us, investments in the budget for rewiring the nation and new energy generation will make a difference. But again, being honest, it won’t make a difference in the short term which is why Jim has foreshadowed market interventions if those prices look like they’re going to go where they are going to go the next few months.
WOOLF:
Yeah, and we will see exactly what that means for the Northern Territory, because as we know here in the Northern Territory, Power and Water Corporation is indeed a government‑owned corporation. So I don’t know whether that market intervention is going to be required here in the Territory or whether it’s going to be a bit of a situation where we’re not actually impacted.
JONES:
Well, everyone’s sort of impacted when it comes to gas, and we’ve already put some stuff in place to ensure that Australians are served first when it comes to the gas market. You’re right, in the Territory you’ve got a government‑own instrumentality, so you’re better off directing those questions to your Territory Government on that particular issue. But around the nation, this is an issue and we’ve got to get on top of it.
WOOLF:
Minister, there was, and you touched on this just a moment ago, a significant announcement when it comes to housing. That target of one million well‑located homes. How is that going to roll out in a place like the Territory?
JONES:
Well, we want to ensure that right around Australia that we are meeting the housing needs. When I talk to employers in the Territory, they say, “I’ve got jobs on offer, but workers can’t afford to live here because there’s no housing available or the rents are too expensive.” So, we need housing in the places where the jobs are. We need to ensure it’s well-located and affordable. It’s going to take us a bit of time to roll this one in because of labour shortages over the next twelve months and supply shortages over the next twelve months. I know you’ve got this problem in the Territory as well. You just can’t get building materials. So, it’s why we’re kicking it off in 2024. A million new homes over the five years forward to that, including in the Territory, to ensure that we can get more affordable properties onto the market and rental accommodation is a part of that.
WOOLF:
Well, it is such a big issue, I know, right around Australia. But as you’ve said there, in the Territory it’s a massive issue. I know that there is a substantial amount in the Budget for the Territory, $1.5 billion in planned equity to support the construction of that common user marine infrastructure within Middle Arm Sustainable Development Precinct, providing a pathway to a decarbonised economy by helping emerging cleaner energy industries, is how it’s been touted. Minister, are you concerned that there’s going to be pushback on this one, though, from the Greens?
JONES:
Well, look, I know there has been some concerns about the Middle Arm development. I know Luke Gosling and Malarndirri have been bringing those issues up with us as well. We need to get the balance right. Concerned to ensure that we get sustainable developments up there in the Territory, and this is an important one. But I know Luke Gosling, in particular, as early as this morning impressed upon me the importance that we ensure that Darwin Harbour remains a beautiful pristine body of water that we’re proud of as a nation. We think we can get the balance right. Of course, all of the Territory and national environmental protection thresholds will have to be reached before any development goes ahead. There’s more in the Budget. You mentioned the 1.5 - my numbers, I’ve got – I’ve just done a quick tally. I get to about $2.5 billion worth of roads and logistics infrastructure investments. Not all in Darwin and Palmerston, some down the track as well, so we are prioritising the transport needs and the logistic needs of the Territory.
WOOLF:
Yeah, the Northern Territory seems to be a real focus when you talk about infrastructure spend. I think we were only surpassed by Victoria; is that correct?
JONES:
It is. It’s because Marion and Luke, I’d like to say, well, they’re doing a good job, but they can be a pain in the neck for us who are trying to balance the budget! They’re always on us about getting a crack at the infrastructure spend up in the Territory. They do a good job. I jest. But it can be annoying when you’re trying to fend off everybody else as well. But they’ve done a good job in getting a good allocation of infrastructure spend up there in the Territory.
WOOLF:
One of the areas where there has been a lot of concern raised – even as late as yesterday, we were speaking about this – is domestic violence and funding when it comes to domestic violence. Now, there have been called here in the Northern Territory for it to be needs-based rather than per capita-based, but I do understand that there’s been a bit of a top‑up in funding for the Northern Territory when it comes to domestic violence.
JONES:
There has been, and we were also looking at a significant investment in community, the staff basically. There’s three things we need to do. We need to get our services joined up. We need accommodation sorted. So, nationally, we’re looking at ten thousand new accommodation places. The Territory will be included in this to ensure we’ve got some accommodation for women and children fleeing domestic violence. We also need a big jump‑up in the staffing available. So, again, we’ve got a significant commitment in this budget to increase funding for the staffing. So, there’s the three bits we’ve got to do in the domestic violence. You know what? I wish we weren’t having to spend any money on it, because I wish it wasn’t a problem. But it is, and it is endemic and it’s affecting particularly First Nations communities, but right across the country, we’ve got a problem and it’s got to be prioritised.
WOOLF:
Look, Minister, before I let you go this morning, one of the other issues that’s continually raised with us is the labour shortage, or workforce shortage. Are there some short‑term measures which will assist the business sector in this space?
JONES:
Yep; a couple of things. For in the Territory, so, we’ve got the Pacific Islands Labour Mobility Program. The Territory, particularly in the agriculture sector, have been big users of this. So, we’re enhancing that scheme. That’s the first thing. The second thing, increasing the migration caps for over the next three years to ensure we can get 30,000 additional permanent migrants coming in, worker age migrants coming in to add to our workforce. Again, the Territory has traditionally been a big utiliser of those schemes. The third thing, back to basics, building up TAFE again. Ensuring that we are giving our own kids first crack at training and work opportunities. If you can’t get a tradie out to your joint at a decent price, it’s because we’ve really fallen off over the last decade in training new tradies. So a big boost in funding for TAFE so that we can boost that productivity capacity at the trades level in particular.
WOOLF:
Minister, how soon do you reckon that we are going to see the effects or the impact of those three points that you’ve just pointed out to?
JONES:
I should have mentioned the child care stuff. That’s kind of one of the things that has an immediate impact, I’ve got to say. It’s the equivalent of releasing, I think, close to 130,000 new workers just by the affordable child care package. Immigration, there’s always a lag on it, so if we push go today, you’ve probably got a six to twelve-month lag. The Pacific Islander Labour Mobility Scheme comes online a lot quicker, so you’re talking months in both of those sorts of programs, the ability to pick up in those sorts of programs. And, of course, the trade stuff. If we put a new apprentice on today, it’s four years before they’ve got their ticket. But, you know, it’s four years whenever you start, so we’ve got to do it now.
WOOLF:
Well, Minister, we have run out of time. We really appreciate you taking the time to have a chat with us this morning. Assistant Treasurer, and also Minister for Financial Services, Stephen Jones, thanks for having a chat with us this morning.
JONES:
Great to be with you, Katie. All the best.