The Finocchiaro CLP Government has announced it will take action to repair Labor's debt legacy, while honouring its promise to protect public service jobs.
Kicking off a Territory-wide State of the Economy Roadshow today, Treasurer Bill Yan said Labor's woeful financial mismanagement was set to plunge the Territory into its worst debt position ever.
"Labor have left us on track to record the largest debt in the Territory's history with unfunded operational expenditure and further cost blowouts on Labor's pet projects now revealing the Territory's forecast assessable borrowing for 2028-29 are projected to hit $15 billion," said Mr Yan.
"This breaks Labor's own self-imposed debt ceiling it legislated in 2021-22 when assessable debt under the debt ceiling was $10 billion, showing just what a farce this debt cap was. It is clear they adopted covert tactics to hide the Territory's true debt position budgeting for frontline services to cease and shifting costs to outer years."
Mr Yan said some of Labor's financial failures included:
Failure to allocate any operational funding to pet projects like the Darwin Art Gallery, estimated to be at least $6 million a year and the ATSIAGA project, estimated to be in excess of $10 million a year.Massive budget blowouts on its pet projects with the Darwin Art Gallery blowing out from $70 million to $143 million while the ATSIAGA was first announced as a $150 million project only to blow out to $300 million before the CLP reigned the budget back into its original allocation.No long-term funding for corrections, estimated to be worth $50 million per annum just to maintain existing budget and service levels.Failure to manage major IT projects such as the Acacia IT rollout which has cost and additional $61 million to date and would require a further $127 million to complete the project in full.Huge cost blowouts on major infrastructure projects such as the Tiger Brennan Overpass (from $61.5 million to $165 million) and the Darwin Ship Lift which has blown out from $100 million to at least $500 million and climbing.
As part of its plan to repair the Budget, Mr Yan said the CLP Government would scrap Labor's debt cap, introducing legislation in the February sittings of Parliament to repeal it.
"Labor's debt cap was nothing more than a facade," he said.
"They ignored it while racking up more debt and covering up cost blowouts."
Mr Yan said if the debt cap was to remain in place savings of around $1.8 billion, or $450 million per annum over four years, would need to be found across the budget and forward estimates.
"The only way out of this mess is to grow our economy," said Mr Yan.
"We won't be adopting austerity measures, and we won't be making public service cuts. Removing Labor's debt cap is the first step, which will allow government to invest in essential services that support our community and help grow our economy."
The Government outlined further measures as part of its plan to repair Labor's debt legacy and rebuild the Territory's economy including:
Capping non-frontline FTE growth (excluding frontline services such as police, health, and education).Tighter contract management to stop cost blowouts and waste.Cutting red tape to get projects moving quicker and attract investment.A stronger focus on gas and resources to create jobs and grow the economy.Identifying where the public service can utilise technology to be more efficient.
"We are working through our wages policy to balance service expectations along with budgetary pressures. Measures need to be considered to manage public sector growth," said Mr Yan.
While protecting frontline services was a priority, the CLP Government would identify efficiencies in non-frontline public service roles.
"Technology is changing the world at a rapid rate and the recent closure of the local Channel 9 Darwin news bureau shows that government must adapt and pivot to deliver more efficient services and value for money to Territorians," he said.
