Parlia me nt House GPO Box 3146 Sta te Square Darwin NT080 1 Darwin NT 0800 Facsimile: 08 8936 5576 Ms Bonnie Allan Committee Secretariat Department of the Senate PO Box 6100 CANBERRA ACT 2500 Via email: [email protected] Dear Ms Allan Thank you for the opportunity to provide a written submission to the Senate Select Committee on Jobs for the Future in Regional Areas. Please find attached the Northern Territory Government's Submission to the Inquiry. My Government believes that, no matter where they live, Territorians need to be able to participate in the workforce. My Government is committed to working in partnership with public, private and not-for-profit sectors including Aboriginal landowners to identify and drive initiatives that will secure private investment and create local jobs in industries right across the Northern Territory. Despite the many challenges, Territory based industries have proven remarkably successful when they take advantage of the Territory's natural resources and comparative advantages. As a region , the Northern Territory benefits from its diversified economy, but individual communities remain vulnerable to the vagaries of specific industry sectors. Sustained Commonwealth Government commitment to the development of Northern Australia remains the most important contribution it can make to secure the jobs of the future, both for the Northern Territory and the whole of Australia. I look forward to reading the Select Committees final report. Your~ sincer,~ly MIC_~AEL t;u NNE R 1 3 SEP 2019 ••• NORTHERN . ~ . TERRITORY • • GOVERNMENT NORTHERN TERRITORY RESPONSE TO INQUIRY INTO JOBS FOR THE FUTURE IN REGIONAL AREAS Introduction On 31 July 2019, the Senate established a Select Committee on Jobs for the Future in Regional Areas, to inquire and report on new industries and employment opportunities that could be created in the regions. Background and Context The Northern Territory stretches over nearly 1.5 million square kilometres with a relatively small population that is asymmetrically dispersed across this land area. All Territorians are geographically isolated from the rest of Australia. These characteristics play important roles in shaping the Territory's economy and labour market. From the national perspective of the current Inquiry, all of the Northern Territory including Darwin can be reasonably defined as a single regional economy. Although Territorians makeup only 1 % of Australia's population, the Northern Territory economy generates 1.5% ($26.2 billion) of Australia's Gross Domestic Product (GDP). Three quarters of the Territory's overall population of 245 8541 reside in the five largest regional centres; Greater Darwin (Darwin, Palmerston and Litchfield Shire), Alice Springs, Katherine, Nhulunbuy and Tennant Creek. These cities and towns serve as supply and service centres for their surrounding regions; with each sub-region having a number of smaller, more remotely located communities. With the majority of Territorians living in the greater Darwin region (estimated population 148 5642), and Alice Springs (estimated population 39 3883), this leaves the remaining population thinly spread across the Territory's large land mass. A key feature of the Northern Territory is the proportion of the population who identify as Aboriginal. According to the Australian Bureau of Statistics, the Territory's Aboriginal population was 74 546 as at 30 June 2016, making Aboriginal Territorians 30.3% of the overall population4. Approximately 48% of the Northern Territory's land mass and 80% of its coastline is classified as Aboriginal land under the Commonwealth Aboriginal Land Rights (Northern Territory) Act 1976. In addition, Australian common law recognises that Aborigines and Torres Strait Islanders can and do hold legally recognisable and enforceable Native Title rights in relation to land and water. The Commonwealth Native Title Act 1993 authorises Federal Court determination of Native Title claims over pastoral leases and in towns. These are the areas that were not claimable under the Aboriginal Land Rights (Northern Territory) Act 1976. The prevalence of pastoral leases over large areas of the Territory also plays a part in determining the processes which need to be complied with to facilitate what economic activities can be undertaken in much of the Territory. Further, more than 4.6 million hectares of the Northern Territory is included in Territory national parks and conservation areas. 1 Department of Treasury and Finance; ABS, Australian Demographic Statistics, Cat. No. 3101.0 2 Department of Treasury and Finance; ABS, Regional Population Growth, Australia, Cat. No. 3218.0. 3 Ibid. 4 Department of Treasury and Finance; ABS, Australian Demographic Statistics, Australia, Cat. No. 3101.0 1 The interplay of the Territory's large land mass and distinctive population dispersion pattern strongly influences how the Territory's economy operates and is a key driver of business innovation. Historically, the Northern Territory's economy has been cyclical in nature, with surges in economic growth often linked to the construction phases of major projects. This has led to economic and population volatility, especially when major projects transition from the initial investment and construction phases into operational facilities. Short-term population surges associated with major project construction are prone to be followed by periods of low or even negative economic and population growth. The Northern Territory Government's (NT Government) Economic Development Framework (EDF)5 was developed to provide certainty to business and industry and ensure Territorians have access to sustainable employment and lifestyle opportunities into the future. The NT Government recognises that development is a partnership between the public, private and not-for-profit sectors including Aboriginal landowners. Whilst the NT Government supports economic development through its investment in infrastructure, people and relationships, it is private sector investment, not government investment, which grows the businesses and industries that provide jobs and generate wealth. Tourism is a more significant contributor to employment in the Territory than in any other state or Territory, with the exception of Tasmania. One in eight jobs Territory wide rely on the tourism industry, and this is significantly higher in some regional areas such as in Yulara and surrounds. As an economy, the Territory is also highly reliant on the performance of tourism in regional areas, particularly Kakadu and Uluru-Kata Tjuta national parks, with visitors to Uluru delivering around half a billion dollars in holiday spending in the Territory in 2018. Many Territory towns have been heavily dependent on a single major industry; most commonly mining, but also tourism or agriculture. Over-reliance on a single industry makes such regional communities vulnerable to the economic shocks that come from industry adjustment because they lack the resilience that comes from a diversified economic base. Nevertheless, whenever Territory towns and communities have experienced major transitions following changes in their key industry sector, they have shown themselves to be remarkably robust. A good example of this resilience was demonstrated in 2014, when production was curtailed at Rio Tinto's Gove alumina refinery, creating a major crisis for the remote township of Nhulunbuy. Through collaboration between the NT Government, Rio Tinto, local business people and the Traditional Owners, a plan was established to revive the town. Over the intervening years a stronger, more diversified and sustainable economy has emerged and Nhulunbuy's population has now fully rebounded (refer to case study at Box 1, Appendix A). More recently, a new industry adjustment challenge has materialised in the township of Jabiru. The NT Government is now working with a range of stakeholders including the Commonwealth Government and the Traditional Owners of Kakadu to prepare Jabiru for its transition away from mining once the Ranger uranium mine ceases processing stockpiled ore in 2021. The $200 million Darwin City Deal is a joint initiative between the Commonwealth Government, the NT Government and the City of Darwin to deliver a 10-year plan for the Darwin City Centre that sets a long-term vision for the future to address Darwin's unique regional challenges. 5 https://cmsexterna I. nt.gov .au/ data/assets/pdf file/0008/ 434546/eco nom ic-development-fra mework. pdf 2 The NT Government will continue to invest in each of the Territory's towns and communities, both large and small. Government investment in Katherine, three hours south of Darwin, is contributing to the creation of an inland port that improves the logistical efficiency of the connections between the Territory's agricultural and pastoral zones and their national and international markets. Tennant Creek, in the Barkly region, is the Territory's gateway to mining and mineral services, with 17 mining projects currently being considered, potentially delivering AUD$6.15 billion worth of capital expenditure to the Territory's economy. Each project and industry in the Northern Territory creates ongoing demand for skilled workers capable of applying the latest technologies. Access to a skilled workforce is a critical factor for all Territory businesses, but especially so for those competitively delivering the goods and services that are in demand from our growing international markets. The following comments address the Terms of Reference