NORTHERN TERRITORY BUDGET 2021-22 Department of Treasury and Finance 19 The Mall GPO Box 1974, Darwin NT 0801 Budget Paper No. 4 Telephone: +61 8 8999 7406 www.budget.nt.gov.au THE INFRASTRUCTURE PROGRAM The Infrastructure Program Budget Paper No. 4 The Infrastructure Program Contents Overview 3 Program details by agency 15 Department of the Chief Minister and Cabinet 16 Department of the Legislative Assembly 16 Auditor‑General’s Office 16 Northern Territory Electoral Commission 17 Office of the Independent Commissioner Against Corruption 17 Ombudsman’s Office 17 Department of Treasury and Finance 17 Northern Territory Police, Fire and Emergency Services 18 Department of Industry, Tourism and Trade 19 Department of Health 20 Department of Infrastructure, Planning and Logistics 21 Department of Environment, Parks and Water Security 26 Territory Wildlife Parks 26 Department of Education 27 Department of Territory Families, Housing and Communities 28 Department of the Attorney‑General and Justice 30 Department of Corporate and Digital Development 30 Aboriginal Areas Protection Authority 30 Glossary 31 | 1 Budget 2021-22 2 | The Infrastructure Program Overview Budget Paper No. 4 details the Northern Territory’s infrastructure program for 2021‑22. It includes information on major and minor capital works, capital grants, repairs and maintenance, and infrastructure‑related expenses for all Territory general government agencies. Total infrastructure program and payments The 2021‑22 infrastructure program provides for substantial investment across the Territory to unlock economic opportunities, create jobs for Territorians and support social outcomes.Total infrastructure payments of $1.62 billion in 2021‑22, comprises $1.27 billion in general government payments and $344.9 million in payments by public non financial corporations, including the Power and Water Corporation, Territory Generation, Land Development Corporation and Indigenous Essential Services Pty Ltd. The total value of the government’s 2021‑22 capital works program is $2.76 billion. In 2020‑21, Government is expected to achieve total infrastructure expenditure of $1.55 billion, a reduction of around $200 million compared to the original budget. This is a result of the revised timing of expenditure for Commonwealth‑funded programs, as well as additional time required for planning and preliminary works on large Territory Government‑funded projects. The Power and Water Corporation also reduced its 2020‑21 capital program by $91.9 million, contributing to the total variation from the 2020‑21 Budget. In 2021‑22, $951.7 million is allocated to the capital works program for the general government sector, including headworks to support land release and additional Commonwealth funding for road programs and remote Aboriginal housing to match the Territory Government’s Remote Housing Investment Package. The repairs and maintenance program is maintained at the long‑term average level, and an elevated level of funding is provided for infrastructure‑related expenses for master planning and project development for significant upcoming projects. Capital grants expenditure returns to historical levels, following one‑off increases in 2020‑21 for stimulus projects including the Home Improvement Scheme, and funding for the Darwin Education and Community Precinct as part of the City Deals agreement. Table 1 sets out the total approved program for general government sector major works and minor works, and budgeted payments (cash) for all components of the infrastructure program. Table 1: Total infrastructure payments 2020‑21 Budget 2020‑21 Revised 2021‑22 Budget Program Cash Program Cash Program Cash $M $M $M $M $M $M GENERAL GOVERNMENT Capital works 2 544 863 2 521 768 2 760 952 Northern Territory funded 494 440 400 Externally funded 369 328 552 Capital grants1 236 244 92 Repairs and maintenance 216 204 215 Infrastructure‑related expenses 20 9 15 TOTAL GENERAL GOVERNMENT 1 335 1 225 1 274 PUBLIC NON FINANCIAL CORPORATIONS Capital works 315 230 243 Repairs and maintenance 100 95 102 TOTAL PUBLIC NON FINANCIAL CORPORATIONS 415 325 345 TOTAL INFRASTRUCTURE PAYMENTS 1 750 1 551 1 619 1 Excludes grants on‑passed to public non financial corporations. Overview | 3 Budget 2021-22 Capital works for the general government sector The $2.76 billion capital works program in 2021‑22 remains above long‑term average levels, with a number of major projects continuing from 2020‑21. New projects commencing in 2021‑22 ($1.01 billion) will improve transport infrastructure for tourism and industry and access to remote and regional communities, as well as construct and upgrade community and economic infrastructure. Table 2 disaggregates the general government sector major and minor works programs in 2020‑21 into revote and new projects. It provides an estimate of the value of capital projects that will revote, or carry over into 2021‑22, and identifies new major and minor works programs for 2021‑22. Table 2: Capital works and estimated expenditure Revote Minor Major new Total capital Revote in new works works works Cash out $M $M $M $M $M $M 2020‑21 Revised TOTAL GENERAL GOVERNMENT 1 445.8 63.2 1 012.1 2 520.7 768.3 1 752.4 2021‑22 Budget TOTAL GENERAL GOVERNMENT 1 752.4 72.2 935.8 2 760.4 951.7 1 808.8 Capital works by function Table 3 summarises the capital works program by Classification of the Functions of Government – Australia (COFOG‑A) categories, which is a framework for classifying government expenditure reported by all Australian jurisdictions. Transport investment has increased from prior years, such that roads and other transport works will receive the highest level of investment in the 2021‑22 infrastructure program at over 45%, followed by housing and community amenities investment at over 25%. Around 60% of the total infrastructure program is allocated to new and upgraded infrastructure in remote and regional communities. Table 3: Capital works by COFOG‑A category 2021‑22 Category Capital works $M % Transport 1 271.5 46.1 Housing and community amenities 753.4 27.3 Recreation, culture and religion 202.8 7.3 Economic affairs 159.7 5.8 Health 137.4 5.0 Public order and safety 119.6 4.3 Environmental protection 46.8 1.7 Education 37.0 1.3 Social protection 28.2 1.0 General public services 4.1 0.2 TOTAL GENERAL GOVERNMENT 2 760.4 100.0 4 | Overview The Infrastructure Program Transport The 2021‑22 infrastructure program provides an increase in transport infrastructure, with around $1.3 billion for roads, aerodromes, jetties and barge landings. Roads and transport investment is being progressed in 2021‑22 through the five‑year National Partnership Agreement on Land Transport Infrastructure Projects. The agreement provides funding for a number of programs, including Roads of Strategic Importance and infrastructure stimulus packages. In 2021‑22, the programs include upgrading and sealing of: • Carpentaria Highway ($150 million) • Central Arnhem Road ($78.1 million) • Tiwi Islands roads ($61.1 million) • Port Keats Road ($59.6 million) • Buntine Highway ($53 million) • Tanami Road ($42.3 million) • Arnhem Highway ($22.2 million) • Kakadu National Park roads ($17 million). Funding is also included in 2021‑22 through the National Partnership Agreement on Land Transport Infrastructure Projects for the Roads to Recovery, Black Spot, Road Safety and National Network upgrade and maintenance programs. Other major Territory Government‑funded projects in 2021‑22 include commencing lock replacement at Frances Bay Mooring Basin ($20 million) and constructing a new marine facility at Mandorah ($48.1 million). Housing and community amenities The 2021‑22 infrastructure program provides $753.4 million to construct new and refurbish existing housing in remote and urban areas, and progress central business district (CBD) redevelopment works and residential land release across the Territory. A further $20.6 million is provided in capital grants, including essential services to outstations and the grants provided through Community Benefit Fund, bringing the total value of projects and grants to $774 million. The 2021‑22 infrastructure program includes a total of $614.5 million for remote Aboriginal housing across the Territory, with significant investment from both the Territory and Commonwealth governments, including: • Remote Housing Investment Package works through HomeBuild NT, Room to Breathe and government employee housing ($217.1 million) • land servicing to support the Remote Housing Investment Package ($151.9 million) • ongoing works to build new and improve existing housing through the national partnership agreements for Remote Housing, funded by the Commonwealth ($241.9 million). Overview | 5 Budget 2021-22 A further $60.3 million is provided for urban public housing in 2021‑22, including: • continuing redevelopment of John Stokes Square in Nightcliff including public housing and a multi‑agency hub ($26.1 million) • continuing government’s stimulus program for major and minor works to public housing properties across the Territory ($17.7 million). The infrastructure program includes $11.7 million for government employee housing in 2021‑22 to construct and upgrade housing in regional and remote communities for key workers such as teachers, nurses and police. Other community projects include continuing the Civic and State Square Redevelopment in the Darwin CBD, supported by increased investment by the Territory Government ($38.4 million), revitalising infrastructure in the Alice Springs town centre ($11.5 million),