Discussion draft
OUR
ECONOMIC
FUTURE
Northern Territory
Economic Development Framework
This document is a discussion draft
produced for public feedback and input.
Comments, feedback and ideas are
welcome before Monday 3 April.
You can have your say:
•
•
•
•
in person at the public
economic summits
by emailing
territoryeconomicsummits@nt.
gov.au
by providing feedback online at
economicsummit.nt.gov.au or
in writing to the Northern
Australia Development Office,
GPO Box 3200, Darwin NT
0801.
Discussion draft: Economic Development Framework
Chief Minister’s foreword
The NT Government is planning for the future with clear, long- term plans for the economy.
This draft Economic Development Framework is a plan to improve our living standards, provide certainty to
businesses and industry, and to ensure our children have employment and lifestyle opportunities into the
future. We need to decide how fast our economy develops, where growth will come from, who will drive that
growth, what actions are needed to support growth and development, which actions will have the biggest
impacts and how the benefits will be distributed.
How our future growth and development proceeds depends on the settings we put in place now and
progressing the agreed work program with a sense of urgency. We must implement the right policies and
practices so we can seize future opportunities for the Territory.
This draft Framework has been co designed and developed in consultation with groups and communities
including business and industry, Indigenous, regional, non-government sector, educational, community
stakeholders and government. An External Reference Group of eminent business and community leaders has
also contributed to its development.
This document sets out actions to get the fundamentals of economic development right and recognises that
development is a partnership between the public, private and not-for-profit sectors. The role of government
is to support development – through investment in infrastructure, people and regional relationships – but
growth must be driven by private sector investment. New private sector entrepreneurship and investment
will accelerate growth of the Northern Territory economy.
By working together industry, government and the non-government sectors can identify and drive initiatives
that will bring investment and jobs to the Territory. Key to this is having the right settings for development.
This means having the knowledge, policies and information to encourage the best and most sustainable use of
our significant resources, Territorians having the skills to support development, having the right infrastructure
and relationships to connect us with each other and to our key markets, and making sure the Territory is a
place where people want to come and live.
We also need to work together to help create businesses that are agile, innovative and resilient and that are
keen to search for new growth opportunities.
Our future begins with industry, business, the community and Government defining our path forward and
then consistently delivering against plans that are grounded in solid research and a commitment to deliver.
This Framework is not an endpoint. It is one step in what will be an ongoing conversation and a rolling
process of development, implementation, review and reporting on actions.
I look forward to hearing your feedback on this draft Framework and to presenting a final Economic
Development Framework that has broad industry and community support during May.
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Discussion draft: Economic Development Framework
Contents
Chief Minister’s foreword ..................................................................................................................... 2
Contents ................................................................................................................................................... 3
Introduction ................................................................................................................................... 4
1.1
1.2
1.3
Northern Territory context ........................................................................................................................................ 6
The case for change .................................................................................................................................................... 9
How do we grow private sector investment? ...................................................................................................... 11
The framework for economic development .......................................................................... 12
2.1
2.2
Economic levers ......................................................................................................................................................... 13
Priority themes from consultations ........................................................................................................................ 14
Actions that impact multiple sectors ...................................................................................... 15
Growth sectors ............................................................................................................................ 18
4.1
4.2
4.3
4.4
4.5
Agribusiness ................................................................................................................................................................ 20
Tourism ........................................................................................................................................................................ 22
Energy and minerals .................................................................................................................................................. 25
International education and training ...................................................................................................................... 27
Defence and defence-related industries ............................................................................................................... 29
Development sectors ................................................................................................................. 32
5.1
5.2
5.3
5.4
5.5
Tropical health and research ................................................................................................................................... 34
Creative industries ..................................................................................................................................................... 35
Renewable energy ..................................................................................................................................................... 36
Environmental services ............................................................................................................................................. 37
Human services .......................................................................................................................................................... 38
Implementation ........................................................................................................................... 39
Editorial Note: The actions and suggestion contained in this document have been synthesised from
consultations with, and submissions from, the stakeholders consulted and are subject to further feasibility,
benefit and costing work.
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Discussion draft: Economic Development Framework
Introduction
The Northern Territory Government’s pre-election plan, NT Jobs Plan, set out the vision for the development
of an Economic Development Framework for the Northern Territory. The commitment was to bring together
business, industry groups, Indigenous people and organisations, the non-government sector, unions and the
public service to provide immediate input to Government on ways forward for the Northern Territory
economy.
Between October 2016 and March 2017 the NT Government, in partnership with Deloitte, hosted a series of
forums, workshops and mini-summits across the Territory. These conversations captured stakeholder
thoughts and ideas, from a regional and sector-based perspective, on what should be included in an economic
development framework. Internally the public sector also evaluated evidence-based data and contemporary
best practice policy to inform the thinking of the draft framework.
As part of the co-ownership, co-designed process an External Reference Group was established to provide
advice to the Northern Territory Government during the development of the draft Economic Development
Framework. That group which includes Indigenous leaders, prominent academics and economic and Industry
experts will have an ongoing role during the implementation phase of the framework.
Many of the ideas and suggestions were at an individual sector, regional or community level rather than from
a high level NT-wide strategic level. Whilst it was not possible to include all ideas in the overarching
Framework, these ideas will inform industry development plans for specific sectors, and regional and
community development plans and priorities.
This draft Economic Development Framework has been prepared for discussion at the two major Economic
Development Summits in Darwin and Alice Springs.
The final version of the Economic Development Framework will be published in May 2017, supported by a
disciplined implementation strategy that sets out key milestones and measures for tracking progress.
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Discussion draft: Economic Development Framework
Snapshot of the Northern Territory economy
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Discussion draft: Economic Development Framework
1.1
Northern Territory context
The structure of the Northern Territory economy is markedly different to the national economy, reflecting
our abundant natural resources, relatively large public sector and defence presence, and a small private sector
that is significantly influenced by major projects.
The Northern Territory also has a unique demography, with one per cent of Australia’s population living on
one-sixth of its land mass. Significant distances separate our population centres from each other, and from
the rest of Australia. The tyrannies of distance, remoteness, isolation and scale affect all aspects of our
economy and standard of living. Territory people and businesses have learnt to be particularly innovative and
acquire broad skills because our setting often requires us to be as self-reliant as possible.
Almost thirty per cent of the Territory’s population is Indigenous compared to the national average of three
per cent, and Indigenous residents are significant land owners and custodians of our land and coastline. The
Aboriginal Land Rights Act (NT) 1976 gave Aboriginal people inalienable freehold title to approximately 50 per
cent of the Territory’s landmass including around 80 per cent of its coastline. A further 48 per cent is likely to
be subject to the Native Title Act.
The Territory is essentially a developing economy compared with the rest of Australia which has benefitted
from more than two hundred years of progressive development and industrialisation. In this context there is a
clear role for government to invest in the essential and enabling infrastructure that will support development
– in Territory towns, in regions and in our Indigenous land holdings.
The Northern Territory has the advantage of being in close proximity to Asia compared to most other
Australian jurisdictions. There are 24 million people within five hours south of us and 400 million people
within five hours north.
The Northern Territory economy has grown considerably over the past decade supported by a steady stream
of major projects. Gross state product (GSP) has grown from $16.1 billion in 2005-06 to $23.6 billion in
2015-16. This is an increase of nearly 50 per cent, with the population increasing by an additional 36 000
people (or 17 per cent) to 245 000 over this period. The Northern Territory’s labour force has expanded over
this period, increasing by 34 000 to nearly 140 000.
From 2016-17, the Territory economy faces a range of challenges as the impact of construction activities for
large resource-based projects winds down. This is affecting investment, business activity and confidence,
employment and consumer sentiment and population growth, which are expected to moderate in the short
term.
Despite these challenges the Territory is well positioned to take advantage of a number of opportunities that
are likely to re-shape the structure of the Territory economy over the next decade. The Territory’s position as
a gateway to Asia and a key defence hub, along with its world renowned tourist attractions and rich diversity
of mineral, gas, petroleum and agricultural resources will provide opportunities to underpin future growth.
These export industries also provide opportunities for growth in local service industries such as health,
education and research, retail, construction, professional services and other industries.
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Discussion draft: Economic Development Framework
The Northern Territory’s proximity
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Discussion draft: Economic Development Framework
The Northern Territory’s regional context
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Discussion draft: Economic Development Framework
1.2
The case for change
The private sector plays a critical role in economic development and growth. Private sector investment
depends on demand, and a business belief that it can competitively meet that demand. To meet its clients
demands a business will require labour – the jobs that we see in the economy.
This draft Economic Development Framework sets out actions that will support more sustainable economic
development and jobs growth – growth that is underpinned by having the right policy settings for the
fundamental drivers of development. This will mean that in the future there is less need for stimulus packages
to support short term growth.
There is also a role for government to support economic development, but it is very much a supporting role.
Government expenditure as a proportion of the Northern Territory economy is significant, but it cannot
sustainably grow the economy. Government can only spend money it has already collected, or will collect in
the future (from households and businesses). Government borrowings are repaid from future collections.
Sustainable economic development and jobs growth must come from private sector investment and
entrepreneurship. That is, the private sector must grow faster than the public sector.
There are some major projects on the horizon but they are not guaranteed. We must create a diversified
economy, so the question now is: “What can we collectively do to attract private sector investment and
create new jobs?”
While we have benefited from solid economic growth over the past 15 years – driven by a steady flow of
major projects –we now need to define and implement the actions and policies needed to support sustainable
economic development that is not reliant on major projects.
To accelerate economic development and attract private sector investment we need to get the fundamentals
right, including to:
•
•
•
•
•
•
•
recognise that growth is driven by demand and not short term stimulus packages;
understand our natural resource base in the Indigenous and pastoral estates and work with key
stakeholders to identify opportunities to best use these resources;
have effective regulatory frameworks that balance attracting investment to grow the economy and
protect the environment;
focus public sector investment on strategic infrastructure and services to facilitate private sector
investment;
have the right skills available to businesses at the right time and price;
encourage collaboration to identify new opportunities; and
encourage innovation to improve productivity and support product development.
Our future prosperity depends on getting these economic development fundamentals right.
The primary benefit to Territorians from investment is the jobs that are created. This includes the direct jobs
arising from the new or expanded business, and also all the supporting jobs such as the teachers, doctors,
gardeners, personal trainers, retail staff and baristas who provide important and valued services to Territorians
and their families.
Increased investment supports all these jobs, not just those employed directly by these new or expanded
businesses. If we get it right we can create a domino effect, where growing industries help other industry
sectors to grow, and then keep them growing.
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Discussion draft: Economic Development Framework
To create opportunities we need to attract private sector investment
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Discussion draft: Economic Development Framework
1.3
How do we grow private sector investment?
In order for private sector investment to grow in the Northern Territory business owners and investors need
to feel that they have a fair chance of succeeding, that the potential benefits from investing outweigh the
risks. That is why it is critical to all Territorians that we adopt a systematic approach to growing private sector
investment in the Territory. An important part of this is demonstrating the financial benefits investment may
create. When we do this well it will be easier for private sector investment in the Territory to grow, and new
jobs will follow. It is a relatively simple formula, provided we constantly focus on making it easier for private
investment to happen in the Territory.
There are two broad things we can do to demonstrate the potential benefits from private sector investment
in the Northern Territory. Firstly we should improve our understanding of the demand for, and the potential
profitability of supplying Territory products and services to markets. It makes sense to significantly invest in
understanding the potential demand outside the Territory for what we have to sell, and the best ways to get
Territory products to markets. This can include investigating the products buyers are seeking, the best way to
get products to them, which distribution channels to use, who our competitors are and what our competitive
advantages are, which partners to engage, how and where value is added along the supply chain, and how
much value Territory producers could reasonably expect to get as a share of the price the consumer actually
pays.
Secondly, we can identify opportunities to reduce the risks arising from expanding or starting a new business
in the Territory. The Summit workshops highlighted a number of opportunities to reduce these risks, and
timely access to essential inputs such as natural resources was almost a universal concern. The polar
opposites of not enough people for jobs in our urban centres, but not enough jobs for people in remote and
regional areas presents challenges for businesses operating in these locations. The tyrannies of distance, scale
and remoteness have always required Territory businesses to embrace innovation, and the requirement to
embrace innovation is only going to strengthen as new ways to communicate and reach markets become
universal.
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Discussion draft: Economic Development Framework
The framework for economic development
The Economic Summit process has informed the development of three documents:
The Economic Development Framework will form the basis for the Northern Territory’s long term decision
making and ensure we are all moving towards a shared vision for the future.
The Framework provides the overarching structure for the Infrastructure Strategy, the 10 Year Infrastructure
Plan and other government plans, strategies and policies. It also offers an overarching framework for the
private sector, industry peak groups, Indigenous people and organisations, regional stakeholders and other
organisations to develop and progress their own economic development strategies and plans.
The Infrastructure Strategy will provide greater transparency of the Northern Territory Government’s
infrastructure planning, assessment, selection, prioritisation and investment decision making processes and
will support private sector investor and financier analysis of private investment decisions.
The 10 Year Infrastructure Plan will provide an assessment of the sectors prioritised for infrastructure
investment and planned and proposed infrastructure projects over a 10 year horizon.
A diagrammatic representation of the proposed relationships between the documents is outlined in Figure 3.
Linkages between the Framework and other strategies and plans
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Discussion draft: Economic Development Framework
2.1
Economic levers
The early phases of the Economic Summit process included numerous one-on-one consultations with key
economic development stakeholders. In these discussions stakeholders identified six key levers of economic
development, and made it clear that getting the policy and investment settings for these six levers is critical to
economic and social development, investment and jobs growth in the Northern Territory.
Natural resources includes the land, flora, fauna, soils, water, minerals, oil, gas, waterways,
inshore fisheries, coastal areas, the entire biomass in the Northern Territory, and our
knowledge about these things. These resources are integral to the Territory’s economic
growth and underpin priority industries, in particular agriculture, energy, mining and tourism.
People have a two-fold impact on the economy – they are the consumers of goods and
services and are the workforce that supplies labour and knowledge. In order for our
economy to grow, we must identify ways to increase our population and find ways to
engage the future workforce.
Capital refers to different types of funding for businesses to invest in technology, plant and
equipment required that supports future growth. Capital also includes investment in the
infrastructure that helps the economy function – road, rail, marine and air transport,
pipelines, poles and wires, energy, water, buildings and telecommunications networks.
Better connectivity is critical to ongoing economic growth because we need to strengthen
our supply chains to improve the movement of people, goods and information, as well as
connect with people who may exchange information, buy our products and services, or help
us build relationships and partnerships to develop or reach new markets.
Enterprise and innovation elevate our standard of living when entrepreneurs and
governments strive to improve the products and services they deliver. Innovative structures
and management strategies can help unlock the latent economic potential of our economy.
A constant focus on improving liveability is important because while we all know the NT is
an attractive place to work, live and raise families, unless we can convince other people of
this, we will find it extremely difficult to sustain a workforce that can support business
growth and grow our population. A smaller population will limit the range of choices
available to Territorians and affect the cost of living and the cost of doing business.
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Discussion draft: Economic Development Framework
2.2
Priority themes from consultations
Following the initial one-on-one consultations with stakeholders (which identified the six key economic
levers) a series of workshops were held with industry representatives and in the regions to gain a more
detailed understanding of key issues affecting economic development, and to discuss and identify options and
pathways to address them. These workshops were an opportunity to share issues and ideas. In all over
50 organisations and 600 individual stakeholders were engaged.
These workshops provided valuable insights and, across all industries and regions, four themes emerged as
being critical to support economic development: coordination and communication; planning; effective
regulation; and enabling investment.
The need for improved co-ordination and communication – There is significant variation in the maturity of
different industries and regional economies in the Territory. The market structure in some sectors is based on
a handful of large dominant players, whereas other industries are based on a multitude of small players. All
industries identified potential gains from improved cooperation and collaboration and saw benefits in
developing a shared vision, prioritising and planning, and then working together to get the policy and
regulatory environment right.
Benefits of better planning – Businesses require certainty to invest and create jobs. Co-designed and agreed
plans over a reasonable timeframe can provide certainty and allow businesses to confidently invest. Plans
need to be jointly developed and committed to by Government, industry and the communities that will be
affected.
Effective regulation is critical – Regulation provides the framework for businesses to operate within. We
need effective regulation that strikes a balance between protecting the community interest while also
providing businesses with the freedom to innovate and grow. We should however be wary of regulation being
used to protect some stakeholders from competition, disruptive technologies and innovative ways of doing
business. While some businesses may benefit from this, Territorians as a whole may suffer.
Role of government to assist with enabling investment – Accelerating economic growth can be facilitated by
strategic public sector investment that acts as a catalyst for private sector investment. Due to limited funding
Government has to take a very strategic approach to how it assesses competing opportunities to ensure it
obtains the biggest economic impact from its investment.
The economic levers identified in the first round of consultations provided the basis for wider conversations
in the Summits process about what needs to change to grow the economy and create more jobs. It was
through these wider conversations that a range of actions were identified that, when implemented, will
support accelerated economic development. These actions are listed in the next three sections of the
framework:
•
•
Section 3 lists the actions that have benefits across multiple industries
Section 4 and 5 list actions by sector.
PLACEHOLDER – Option to insert top five or six priority actions that can be implemented in the next 12
months that will have a significant impact – list to be developed following two major Summits
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Discussion draft: Economic Development Framework
Actions that impact multiple sectors
Actions that impact multiple sectors
Measure
Lead
NTG
Work with industry, Traditional Owners,
Land Councils, pastoralists and land
holders to identify land with high
economic development potential and
manage these areas as priority
development zones by coordinating
land capability research (e.g. soil, water,
geoscience, biodiversity capabilities
etc.), logistics and infrastructure
planning, investment and regulatory
requirements for priority industries, and
promote this information to potential
investors through a one-stop-shop
online portal
Priority development zones
established
Fully implement the biosecurity strategy
to protect the NT’s environment and
‘clean and green’ reputation for
production, processing, trade and
investment
Biosecurity Strategy fully
implemented
Implement environmental regulatory
reform to improve assessment and
approvals processes
Improved assessment and approvals
processes implemented
NTG
Undertake a comprehensive review and
reform of water policies to provide
certainty in water allocations and
increased security for licence holders
Review and reform of water policies
completed
NTG
Partner with private enterprise to
establish appropriate employment
programs and implement training
programs to enable Indigenous people
to enter and remain in the workforce
Employment and training programs
designed and implemented
Provide certainty for ongoing
infrastructure investment over a 10year horizon
10 year Infrastructure Plan published NTG
and updated annually
Develop and deliver an ongoing pipeline
of NTG facilitated investment projects
to leverage private sector investment
into economic transformational and
iconic infrastructure and major
investment projects
Capital expenditure on NTG facilitated NTG
projects
One stop shop on-line portal
established
Stakeholders
NTG
Industry
Stakeholders
Entry and retention rates published
Industry
NTG
10 year Infrastructure Plan published
Industry
and updated annually
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Levers
Discussion draft: Economic Development Framework
Actions that impact multiple sectors
Measure
Lead
NTG
Identify priority infrastructure needs for
all industries to focus investment (from
government and industry) on filling the
highest priority infrastructure gaps,
informed by Industry Development
Strategies and Priority Development
Zones
Highest priority infrastructure gaps
identified
Map out a comprehensive energy policy
which will, amongst other things,
consider electricity supply, costs,
reliability and competition
Energy policy developed
Support the Aboriginal Land and Sea
Economic Development
Agency (ALSEDA) to bring land, capital,
labour and effective processes together
to drive investment in Aboriginal land
Capital investment in ALSEDA driven ALSEDA
investment
NTG
Continue to support local communities
and the major centres of Katherine,
Nhulunbuy, Tennant Creek, Palmerston,
Litchfield and Alice Springs, to develop
and deliver economic development
plans and priority projects to realise
local aspirations, including support for
the Regional Economic Development
Committees to deliver regional
economic development plans and
priority projects
New economic development plans
established
Enhance partnerships between land
councils, Traditional Owner's and the
Commonwealth and Northern Territory
governments to develop clear timelines
and commitments to provide as much
certainty as possible for potential
investors in Aboriginal land, including
the development of an investment
charter and actions to expedite
processing of applications
Reduced time for processing of
applications
Work with the Commonwealth to
improve access to reliable high speed
internet and mobile coverage in
Northern Territory
Improved high speed internet access NTG
and mobile coverage in NT
Industry
Tourism and creative industries,
multicultural, sporting and major events
to contribute to the development of a
calendar of events that engages locals
and visitors beyond the current tourism
peak periods
Calendar of events developed
10 year Infrastructure Plan published
Industry
and updated annually
Priority projects progressed
NTG
NTG
REDCs
Regional peak
bodies
Reduce backlog of applications
Investment charter published
Land
Councils
NTG
Aust Govt
Industry
Industry
NTG
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Levers
Discussion draft: Economic Development Framework
Actions that impact multiple sectors
Measure
Lead
Explore new business models that can
increase local service delivery,
employment and business development
opportunities including for human
services, community services and
industries
New business models established
NTG
Prepare comprehensive strategic
development plans for key industries
that cover innovation, technology, local
supply, market analysis and
development, workforce, supply chain
opportunities, and regulation
Strategic development plans
developed
Co-develop a strategic maritime
industries infrastructure and investment
plan to grow the offshore gas, seafood,
naval, marine aquaculture, cruise ship,
passenger, maritime freight, leisure and
maritime maintenance sectors
Maritime industries infrastructure and Industry
investment plan developed
Identify opportunities to make it easier
to business in the Territory through
reducing unnecessary red tape and
regulatory burden
Relevant legislation and government
process reviewed and amended
NTG
Co-develop and co-deliver an
overarching NT branding and marketing
strategy to promote the NT as a place
to live, work, study, invest, trade and do
business
Strategy is implemented
NTG
Identity and implement strategies to
reduce crime and anti-social behaviour,
and costs to the private sector and the
wider community
Reduction in anti-social behaviour
Industry
Industry
NTG
Aust Govt
Industry
Reduction in crime
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NTG
Levers
Discussion draft: Economic Development Framework
Growth sectors
As a small, export-oriented economy the Northern Territory relies on finding and meeting export demand to
maintain and grow living standards. That means being able to deliver products that client markets want.
Research undertaken by Deloitte Access Economics suggests that growing Asian economies to our immediate
north will create strong demand for products the Northern Territory produces (see Figure 4).
The challenge is to turn our comparative advantages into competitive advantages that attract investment and
opportunities for jobs growth. Businesses will not invest if they are not competitive in their target markets.
The reality is that we need several growth drivers to build a platform for economic growth in the Territory.
The first place to look is those sectors that can be expected to grow significantly faster than global gross
domestic product (GGDP) as a whole over the next 10 to 20 years. Among the fastest-growing are gas,
tourism, agribusiness, health and international education– each of which is expected to grow more than 10%
faster than GGDP.
Looking at the global growth trends and the Territory’s areas of advantage, it becomes clear that some of our
most important next waves of prosperity are likely to come from the sectors that appear at the top of both
our ‘Australian advantage’ and ‘global growth’ lists. These sectors are gas, agribusiness, tourism, international
education. We added mining into this mix as a critical sector with great national advantage and a healthy
growth rate.
The huge and common driver of growth for this group will be demand from Asia.
Asian growth will benefit:
•
•
•
•
Agribusiness: as consumers to our North seek out fresh produce, including proteins
Tourism: as people seek space, nature, holidays and luxury experiences
Energy and Minerals : as more people in China move to cities, the Asian middle class keep expanding
and as countries seek to improve air quality
International education: as students seek to study outside their home country
By virtue of our location Defence has historically been an important contributor to economic activity in the
Northern Territory, and will continue to provide development opportunities into the future. These
opportunities will be around significant construction impacts and, importantly, through continuing to develop
the scale, expertise and credibility to capture a greater share of the substantial supply chains that support
Defence activities. Defence is also likely to drive critical economic opportunities in the Indigenous estate and
remote areas, such as with the Bradshaw Training Facility.
From the research and feedback received during the Summit process it is clear that there is a broad consensus
that these five industries will be a major source of future private sector investment and jobs growth in the
Northern Territory. There is a role for the public, private and community sectors to play a part in growing the
Territory economy.
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Discussion draft: Economic Development Framework
Positioning for prosperity map – Northern Territory
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Discussion draft: Economic Development Framework
4.1
Agribusiness
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Discussion draft: Economic Development Framework
As one of the Territory’s core industries, agribusiness encapsulates all aspects of agricultural production
including livestock, horticulture and forestry, commercial fishing (including aquaculture) and bush foods.
The agribusiness support industries supply agrichemicals, farm machinery, fencing, irrigation equipment, and
seeds. Support industries also provide services such as research activities, breeding, manufacturing, packaging
and distribution of products.
Improving access to productive land and strategically managing critical inputs such as water and infrastructure
are critical to the agribusiness sector and are addressed in section 3 – actions that impact multiple sectors.
There are also industry specific actions intended to improve agribusiness supply chains, increase the resilience
of the agribusiness workforce, enable agribusiness operators to capitalise on emerging technologies, and
improve education choices for Territory families in remote situations.
High level action
Develop and facilitate Katherine as an
inland port/ agricultural and logistics hub
Measure
Logistics hub established
Lead
NTG
Industry
Local
government
Industry
Continue to lobby the Commonwealth
for special working and immigration visa
categories to attract and retain overseas
skilled and semi-skilled workers
Increase in the number of overseas
skilled workers in the NT
Backpackers work in the NT longer
Support investment in technology that
will provide the agribusiness sector with
relevant real-time information to enable
them to make operational decisions.
Productivity increases through use of Industry
technology
Establish Strategic Indigenous Water
Reserves to provide Aboriginal
landowners with increased opportunity
to access water resources for economic
and agricultural development
Strategic Indigenous Reserves
established
NTG
Ensure priority supply chains are
identified and agreed by key
stakeholders and a 10 year planning
program developed
Key supply chains identified
Industry
10 year development plans
implemented
NTG
Better, high quality education
opportunities in the NT for pastoral and
other remote families
Improved education opportunities in
the NT for remote families
NTG
NTG
NTG
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Industry
Lever
Discussion draft: Economic Development Framework
4.2
Tourism
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Discussion draft: Economic Development Framework
Tourism is a major employer and contributor to our economy, with the sector offering a range of unique
natural and cultural tourism experiences to national and international markets. Tourism is a highly competitive
industry and for us to grow our visitor numbers and increase visitor expenditure, we need to consider how we
can compete with other destinations in Australia and across the globe.
Government and industry will work together to improve existing products and to identify, develop and
promote opportunities for new tourism infrastructure and products to ensure we meet visitor expectations
and improve the visitor experience.
The key determinants of tourism’s impact on the NT economy are how many visitors come here, how long
they stay, how much they spend, and the profits retained in the Territory by tourism operators. It is
important that we offer visitors a compelling reason to come here, and make it as easy and as safe as possible
to experience what the Territory has to offer. Improving the suite of products and experiences for visitors is
critical in a highly competitive and demanding market. But removing unintended barriers to tourism
businesses is also important, and will require industry to work with both the Australian and local Governments
to make it easier to create new experiences.
High level action
Measure
Lead
Grow the value of the visitor economy in
the Territory (this encompasses all
elements of DTC operations – holiday
visitors, business events visitors, people
travelling for study, sports, history,
festivals, events or art).
Increase overnight visitor
expenditure in the Territory
NTG
Deliver new iconic tourism products
informed by market/visitor research that
cater to priority tourism markets to
activate our towns and leverage the
Territory’s national parks and crown
estate, and increase tourism offerings
through partnerships with Traditional
Owners and leveraging private sector
investment
New tourism products delivered
Industry
Continue to work with airlines and
others to build demand for sustainable
aviation services to the NT including to
attract a direct airline service from China
Increased aviation capacity
Lobby the Australian Government to
achieve for small international cruise
ships (above 500 tonnes) the same
privileges in Northern Australian waters
enjoyed by large international cruise
ships (above 5000 tonnes) on the
Australian coast under the Coastal
Trading Act
Coastal Trading Act amended to
afford small international cruise
ships same privileges as ships over
5000 tonnes
Industry
Ensure tourism issues are adequately
considered in planning decisions for the
reinvigoration of Darwin and Alice
Springs CBDs
Revitalisation planning
commences
Industry
Industry
Traditional
Owners
NTG
NTG
Industry
Agreed projects are funded
23
NTG
Lever
Discussion draft: Economic Development Framework
High level action
Measure
Lead
Work with local governments and
property owners to reinvigorate the city
areas of Darwin and Alice Springs and
other regional centres
CBD areas re-invigorated
NTG
Continue to work with local stakeholders
and the Australian Government to plan
for the future of Jabiru
Clear objectives and strategies for
Jabiru
NTG
Continue to work with local stakeholders
and the Australian Government to
improve economic development
opportunities in Kakadu and Uluru-Kata
Tjuta National Parks.
Increased economic development
opportunities
NTG
Local
governments
Increased visitor numbers
Traditional
Owners
Aust Govt
Aust Govt
Explore options to open new attractions
and develop new infrastructure to
attract tourists back to Kakadu,
especially South Kakadu Wet Season
entry point.
Current Parks Australia Plan for
South Kakadu is implemented
Work with education providers and the
tourism industry to increase the number
of international study tour groups
travelling to Darwin and Alice Springs
and into the regions
Increase in study tours to the NT
NTG
Target specific tourism campaigns to the
increasing US military presence
Increase in the number of US
military personnel engaging in
tourism activities.
Industry
Increased visitor numbers
Industry
NTG
24
Lever
Discussion draft: Economic Development Framework
4.3
Energy and minerals
25
Discussion draft: Economic Development Framework
The Northern Territory has globally significant onshore and offshore reserves of energy resources and has a
long history as a supplier of oil, gas and uranium to global markets. The Territory can contribute to improving
global and national energy security, and can deliver significant economic growth opportunities for the
Territory.
However, development must be managed in a sustainable way which is why Government is focussing on
establishing the right regulatory environment that supports investment while protecting our environment. To
ensure the benefits of the industry are captured in the Territory, government is also exploring opportunities
to maximise local employment and participation of NT businesses.
The economic potential of the Territory’s rich minerals deposits is substantial. Our world class minerals
projects contribute significantly to our economic growth, particularly in response to strong demand from Asia.
We are continuing to invest in obtaining and disseminating pre-competitive geological information to attract
new investment in exploration and support new projects to come online.
Government’s role is to enable an environment that facilitates investment and the sustainable use of our
resources. Industry’ role is to ensure it is attuned and well-equipped to participate and share in the benefits of
the growth of this industry.
The Territory has a diverse portfolio of energy and minerals resources. However, we need to strengthen the
framework that the Territory energy and minerals sector works within so the industry can proceed to make
long term investments with confidence that they have strong support from the community and
Government. In the near term Government and industry need to work together to ensure key concerns held
by the community are addressed, and there is a clear, agreed and endorsed pathway facilitating future
development.
High level action
Measure
Lead
Deliver the independent Scientific
Inquiry into Hydraulic Fracturing of
Onshore Unconventional Reservoirs in
the Northern Territory and consider the
implications for industry regulation
Report delivered
NTG
Conduct a review of petroleum and
mineral legislation and aim for more
consistency in the application of this
legislation
Review findings implemented
NTG
Energy and resources industry to
develop a communication/consultation
strategy to create a narrative which tells
the full story to the community,
including local benefits, job
opportunities, and the impact on the
environment
Strategy implemented
Industry
Attract 2 – 3 major gas corporations to
establish their national and regional
headquarters in Darwin
National headquarters established
NTG
Regional headquarters established
26
Lever
Discussion draft: Economic Development Framework
4.4
International education and training
27
Discussion draft: Economic Development Framework
The Northern Territory’s activity in delivering international education and training, both in the
NT and overseas, is relatively small compared to other jurisdictions, but has scope for significant growth in
line with increasing global demand for international education and training services. Competition for
international students is also increasing around the world and whilst the NT has unique value propositions, a
strong Australian dollar can impact on the affordability of an Australian education.
To meet this growing demand, government will work with education providers, business and multicultural
organisations to attract international students, increase the range and quality of education offerings, attract
study tour groups from China and Japan, and provide work experience opportunities for international
students.
International students create stronger cultural, social and economic partnerships; and they bring the world to
our schools, benefiting Territory students. In addition to contributing to our economy, international students
who have a visa to remain in the Northern Territory after completing their studies add diversity and skills to
the workforce.
International education is an industry where we sell Australian knowledge, expertise and insights to the rest
of the world. The Territory is a small player in an Australian context, and needs to establish a compelling
proposition to compete in global markets. The actions identified recognise that the Territory’s offering in
international education is highly dependent upon attracting researchers and academics of the highest quality,
and facilities that are integrated with the broader community and offer students a high level of amenity.
High level action
Refocus the existing NT International
Education and Training Strategy to
increase the level of cooperation and
investment in partnerships between
education providers, government, the
community and private business
Measure
Cooperation between education
providers, NTG, the community
and private business to
implement a student experience
strategy
Lead
Industry
NTG
Grow the range of
accommodation offerings
available to international students
Joint marketing campaigns
developed and delivered
Attract top academics to improve
university rankings and increase
research funding, which impact on
student attraction
Attraction and retention of top
academics
Work with education providers and the
tourism industry to increase the number
of international study tour groups
travelling to Darwin and Alice Springs
and into the regions
Number of study tour
groups/students
Develop and implement a strategy to
establish an education research precinct
in the Darwin CBD
Precinct established
Industry
Increase in number of
international students
NTG
Industry
28
Industry
Levers
Discussion draft: Economic Development Framework
4.5
Defence and defence-related industries
29
Discussion draft: Economic Development Framework
Defence industry supports the Australian Defence Force (Defence) and Australian Border Force
(Border Force) presence in the Territory and is characterised by a broad range of business types primarily comprising small to medium enterprises with a focus on technical skills and technology.
Defence industry includes marine supply, heavy engineering, electrical and control systems, repairs and
maintenance and logistics networks. These local support industries have the potential to provide
significant cost savings for Defence and Border Force - allowing local repairs and maintenance and
supply of local produce in place of travelling interstate for these services.
The security of Australia, in particular the imperative to guarantee the sovereignty of maritime borders,
especially in the north, and to protect onshore and offshore critical infrastructure, is a national priority.
It is also crucial to the economic and domestic security of Australia’s trading partners.
Darwin is the most likely location for mounting military, national security and humanitarian operations
to Australia's north and northwest. Darwin is rapidly growing as a key hub for home port maintenance
to for Defence, Australian Border Force (ABF), offshore oil and gas and general maritime industries.
High level action
Measure
Lead
Increase engagement with Defence to
support participation by local industry in
infrastructure development and
procurement
Value of work secured by local
industry
NTG
Work with Defence to identify
opportunities for SMEs and local supply
chains to supply goods and services
Opportunities for local SMEs and
supply chains to benefit from
defence expenditure are
identified
NTG
Promote the Northern Territory as a
more attractive place to live and work
for Defence families while personnel are
posted in the NT
Reduction in rate of members
with unaccompanied dependents
NTG
Work with Defence to increase
employment opportunities for Defence
spouses
Reduction in rate of members
with unaccompanied dependents
NTG
Increase government’s focus on
Defence liaison and community support
coordination
Improved coordination of
Defence liaison and community
support
NTG
Develop a Defence Engagement
Strategy to improve/maintain good
relationships with traditional owners
and the broader community
Engagement with traditional
owners
Industry
Attract 2 – 3 defence industry
corporations to establish their national
and regional headquarters in Darwin
Regional headquarters
established
NTG
National headquarters
established
30
Levers
Discussion draft: Economic Development Framework
High level action
Co-develop a refreshed NT Defence
Strategic Plan with boosted Defence NT
resources
Measure
Refreshed NT Defence Strategic
Plan developed including
implementation plans
Lead
NTG
Industry
Aust Govt
Establish a NT Defence and National
Security Advocate in Canberra to
accelerate delivery of coordinated
industry-NTG actions and to leverage
local benefits from defence-related
investment and operations in the NT
Advocate position established
and appointed
31
NTG
Levers
Discussion draft: Economic Development Framework
Development sectors
32
Discussion draft: Economic Development Framework
The five growth sectors currently make a significant contribution to economic activity and employment
in the NT, but there are several other industries that present significant growth and development
opportunities that can contribute to diversifying the economy and creating jobs across the Territory.
These sectors tend to be smaller than growth sector industries and are at different stages of
development in terms of industry organisation and community awareness.
The commodity industries we rely upon go through cycles, and variables such as exchange rates and
changing market access arrangements introduce unpredictability for these sectors from year to year.
Hence it is important to diversify the NT economy into areas where there are emerging foundations we
can build upon; sectors that may create job opportunities for Territorians in a range of businesses and
locations.
Targeted support by Government may see these sectors grow in regional or remote areas that might
not otherwise occur.
33
Discussion draft: Economic Development Framework
5.1
Tropical health and research
The NT has world-class research capabilities in tropical and Indigenous health led by the Menzies
School of Health Research, which is headquartered in Darwin and maintains a presence throughout the
Territory, interstate and in neighbouring countries. Ensuring the world knows about the Menzies’
capability has flow-on impacts for Charles Darwin University, its world rankings, and its ability to
attract international students.
Menzies, Royal Darwin Hospital, Darwin Private Hospital, Top End Health Service and Flinders Medical
School create a critical mass of research and employment opportunities that has attracted medical
researchers and medical professionals.
Strengthening and formalising the relationships between research bodies and funding entities has the
potential to lead to rapid growth in these medical research fields.
High level action
Measure
Raise the profile of the tropical health
and research industry in the Northern
Territory with a view to attracting
national and international investment
Increased diversity of funding
sources
Support health research institutions to
increase philanthropic funding
Increased philanthropic funding
Lead
Menzies
CDU
NTG
Menzies
Encourage collaboration between health
research institutions to attract grant
funding from international governments
and institutes
Increased success rate in funding
and grants from international
governments and institutes
Industry
Facilitate increased collaboration
between health research and hospital
services in the Northern Territory
Increased collaboration between
research organisations and
hospital service providers
Industry
NTG
Develop a master plan for a Tropical
Health Research Precinct
Master plan developed
Industry
NTG
34
Levers
Discussion draft: Economic Development Framework
5.2
Creative industries
The creative industries contribute to the liveability of the Northern Territory, can be a source of
innovation that other sectors draw upon, and also earn income from selling products and services such
as entertainment, publishing, advertising, design, and media content.
The Northern Territory is well recognised nationally and internationally for its landscapes and settings
and its Indigenous communities, culture and art. There are significant opportunities to use these
features to further develop the Territory’s creative industries sector. Our landscapes are often a canvas
for artists; a source of stories and an inspiration for creative endeavour. Our Indigenous history,
customs, knowledge and connections to land create Indigenous experiences, products and knowledge
that many other sectors such as tourism, health and natural resource management draw upon.
The collective contribution of the creative industries sector may be under-appreciated by many
Territorians because the industry is a diverse group of often small suppliers. There is a clear
opportunity to strengthen the collaboration within the industry so that there are opportunities to
discuss how resources could be used more effectively, how to sequence events, and how to better
integrate with the tourism sector. The Territory’s creative industries sector can be a stronger drawcard
to attract visitors and diversify and increase income for industry participants.
High level action
Measure
Lead
NTG
Refresh the policy Vibrant NT: Arts and
Culture in the Northern Territory and
work with the industry to develop a
Northern Territory Creative Industries
Strategy to focus on capacity building,
partnerships and new opportunities for
growth
Vibrant NT is refreshed and a
Creative Industry Strategy is
developed
Establish a creative industries business
council
Creative Industries Business
Council established
Industry
Establish frameworks to measure the
value and impact of creative industries
to economic, social and cultural
outcomes in the NT
Mechanisms to measure the
economic, social and cultural
value of the creative industries
are developed and implemented
Industry
Work with Indigenous organisations to
expand Indigenous cultural products
Expanded Indigenous cultural
offerings
NTG
Industry
Industry
Commit to the development of iconic
arts trails in the Northern Territory,
incorporating galleries and museums
Public funding is provided
Private funding opportunities are
explored
Increased tourist numbers
Improve skills and knowledge of
creative industry board members
Associations Act requirements met
Improved governance capacity
35
NTG
Industry
Industry
Levers
Discussion draft: Economic Development Framework
5.3
Renewable energy
The Northern Territory has an abundant supply of sunshine and often cloudless days, providing the
opportunity to develop or purchase the right technology that will enable us to capture solar energy,
convert it into electricity, and store it for later use.
The Northern Territory Government is committed to pursue a target of 50% of our electricity from
renewable sources by 2030. Given our natural advantages, solar energy is the most promising way to
achieve this.
In a purely economic sense, swapping from one source of energy to an increased contribution from
solar power is unlikely to grow the Northern Territory economy because it is simply a substitution.
However, the sector provides an opportunity for Territory businesses to integrate best-practice
technologies in solar power generation, storage and management, and this expertise could be sold by
Territory firms to earn income from outside the Northern Territory.
High level action
Measure
Lead
Consider outcomes and
recommendations of the Roadmap to
Renewables report
Report delivered and
recommendations considered
NTG
Support CDU and the Centre for
Appropriate Technology to attract
research and development funds
Increased research funds sourced
Industry
NTG
36
Levers
Discussion draft: Economic Development Framework
5.4
Environmental services
There are a range of environmental services supplied in the NT that seek to generate wealth from
managing the sustainability of our natural resources. These service providers include environmental
consultants, ecologists, natural resource managers, scientists, remediation experts, agronomists,
Indigenous rangers, and researchers across a range of areas.
These specialists have expertise in tropical, arid and coastal environments which are replicated
elsewhere in Australia and in some of our near neighbours. There is a good opportunity to use this
expertise to better manage and further develop our natural resources, as well as to earn export income
from selling these services to our near neighbours.
The development of natural resource projects including minerals, oil and gas, and agribusiness
opportunities is a major influence on demand for environmental services. However, this demand from
the private sector can be highly cyclical which is why it is important for Government to provide ongoing
support, partner with industry to build industry capabilities, and encourage the industry to leverage its
expertise to reach markets outside the Territory.
High level action
Measure
Lead
NTG
Establish a Land Management and
Conservation Fund to further build the
capacity of Indigenous Ranger programs
and associated community based land
management enterprises to provide
environmental services
Land Management and
Conservation Fund established
Establish an Indigenous Carbon Unit
Unit established
NTG
Establish an Indigenous Water Unit
Unit established
NTG
Identify additional opportunities for
carbon farming and carbon abatement
initiatives within new areas of the
Northern Territory
Carbon farming and abatement
opportunities developed
Industry
Develop and implement an
environmental offsets policy
Policy implemented
NTG
Facilitate forums for environmental
services providers to share information
and develop relationships within the
sector and with other industries
Forums facilitated
Industry
Indigenous Ranger capacity
increased
37
Levers
Discussion draft: Economic Development Framework
5.5
Human services
Changing the way that governments deliver human services can create new economic development
opportunities in regional and remote areas of the Northern Territory. This can be achieved by having a
greater focus on skilling local people to deliver services. This is unlikely to change economic activity in
the Northern Territory as a whole, but can have a tremendously significant impact at the local level in
terms of workforce development, participation and engagement, and the economic and social benefits
this brings.
The short-term catalyst for change will be the roll-out of the National Disability Insurance
Scheme (NDIS) across the Northern Territory where there is a clear focus on local service providers
delivering services. However, the same focus can be extended to public service roles such as teachers,
police officers, nurses, trainers, child and aged care workers, teacher’s aides and youth workers. A
primary benefit of a change to greater local service delivery is that sustainable employment
opportunities are created and wages earned will tend to stay in the communities and improve the
resilience of regional economies over the long term.
High level action
Measure
Explore incentives and support for
regional and remote service providers to
encourage human services staff
retention and local employment and
business development opportunities
Viable incentives identified
Develop a framework to transition the
NT to a new human services delivery
model including to guide the possible
transfer of Government services to local
providers
Framework is developed and
implemented
Lead
Industry
Funding opportunities identified
Options provided to government
for consideration
NTG
Industry
38
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Discussion draft: Economic Development Framework
Implementation
Implementation of the Economic Development Framework will focus on having effective:
•
•
•
•
•
•
•
Governance
Stakeholder engagement
Risk management
Planning
Project management
Resources
Monitoring and evaluation
A key to successful implementation will be working together across governments and sectors to create
pathways to identify and resolve issues and ensure there is clear accountability for each of the actions.
Timeframes for delivering subsidiary strategies and plans will be confirmed with stakeholders during
the preliminary stages of implementation. Some will be led by government agencies others will be led
by industry groups in collaboration with or supported by government.
An accompanying Implementation Plan will be developed with stakeholders and published separately.
The Territory Economic Summit’s External Reference Group (ERG) – which provided oversight,
guidance and advice during development of the Framework – will have a continuing role during the
implementation phase. The ERG comprises representatives from business and industry, the two major
land councils, the banking sector, and the human services sector.
The ERG will work closely with Northern Territory Government CEOs who have responsibility for
economic development to oversight implementation of the Framework, monitor progress and publish
annual progress reports.
Jointly these two groups will report to the Cabinet Sub-committee on Jobs.
39
Discussion draft: Economic Development Framework
40
Discussion draft: Economic Development Framework
This document is a discussion draft produced for public feedback and input.
Comments, feedback and ideas are welcome before Monday 3 April.
You can have your say:
•
•
•
•
in person at the public economic summits
by emailing [email protected]
by providing feedback online at economicsummit.nt.gov.au or
in writing to the Northern Australia Development Office, PO Box 3200, Darwin NT 0801
41
Department of Trade, Business and Innovation
GPO Box 3200
Darwin NT 0801
1800 733 458
[email protected]
economicsummit.nt.gov.au