Wednesday, April 24, 2024

New report flags $40 billion future for NT economy

A new report has found the Northern Territory’s four key industries have strong growth potential and could even help the Territory’s economy exceed $40 billion by 2030-31.

The new report by Deloitte Access Economics, commissioned by the Northern Territory Government, measures the current value of the maritime, agribusiness, minerals, and oil and gas industries.

It found these four industries contribute $7 billion in direct value, and support over 11,000 jobs in the Territory.

This contribution is equivalent to 26% of the Territory’s Gross State Product and 8% of total employment.

Importantly, there are sizable growth opportunities for the Territory’s maritime, agribusiness, minerals and oil and gas industries over the next decade, said Minister for Mining and Industry, Nicole Manison.

“Growing a $40 billion economy by 2030 requires reaching for bold new economic opportunities and overcoming long standing challenges facing the Northern Territory,” the Minister said.

“The Northern Territory has what it takes to be a thriving economy with world class mineral deposits, prospective gas reserves, a strong agriculture sector, emerging information technology capabilities and strategic advantages as a location for trade and defence.

“The Territory Labor Government is committed to achieving a more diverse and sustainable economy, which will mean well-paying jobs and better outcomes for all Territorians.”

The report identified 22 priority actions to maximise industry growth over the period of 2030-31, which include:

  • Capitalising on the increases in demand for critical minerals by increasing exploration and production activities
  • Extending the value chain to deliver economic growth and more jobs to the Territory by using local gas production to develop gas-based processing and manufacturing sector
  • Establishing Darwin as a key maintenance hub for vessels operating in the Indo-Pacific region with purpose built berths
  • Improving productivity for the cattle industry by adopting new technology and improving sustainable management practices for land assets.

The report also identifies pathways for government to help industry overcome barriers to growth which include skill shortages, access to land and water, lack of regional connectivity, market maturity, climate change and red tape.

“Approximately half of the estimated growth in the NT economy could be contributed through sectoral spillovers—efficiency gains in the upstream and downstream industries dependent upon the maritime, agribusiness, minerals and oil and gas industries,” said Deloitte Access Economics partner, and principal report author, John O’Mahony.

:The Northern Territory  Government has an opportunity to deliver sustainable growth – and spread resulting social benefits more widely – by maximising the downstream manufacturing and services opportunities from growing maritime, agribusiness, minerals and oil and gas services.”

The Government says work is underway with industry to work together on suggested actions and pathways in order to maximise growth over the period to 2030-31.

“This report can facilitate discussions between industry and the NT Government to identify potential opportunities and options to overcome barriers to growth across a number of key sectors that are important to the Territory’s economy, and   support the government’s goal of a $40 billion economy by 2030,” said Lead Partner, NT Government and Public Sector, Gaurav Sareen.

The Territory Economic Reconstruction Commission set the task of achieving a $40 billion economy, and in its Final Report identified maritime, agribusiness, minerals and oil and gas industries having the greatest growth opportunities for the Territory.

Read the report here https://industry.nt.gov.au/economic-valuation.

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