CUC107 | People

Development and the Territory's future

Key ideas

Introduction

The Northern Territory has some potential to develop its industries because of its vast size and rich environment. However, development in an isolated, geographically difficult area with a small, dispersed population inevitably faces economic and logistical challenges, particularly in relation to attracting support from investors. It can be argued, notwithstanding the issues of sustainability, that it is important for the future of the Territory that development occur so that a sustainable increase in population and greater economic base can be developed.

Take a look at the Industry Sector Overview prepared by the Department of Business, Economic and Regional Development. It gives you an indication of the economic value of the different industry sectors in the NT. There are a number of big development projects 'in the pipeline' for the Northern Territory. Some of them will have interesting and important consequences for the development of this place.

Reflection

Which of the industry sectors and key projects do you think are going to be significant for the Northern Territory? Which ones will bring lasting employment and development to the NT community? How sustainable do you think they are likely to be?

Some important areas of development in the near future for the Northern Territory include:

Timor gas

The Northern Territory has some potential to develop its industries because of its vast size and rich environment. The potential of the Sunrise Field is discussed at the web site for the Offshore Oil and Gas Industry. There are political and ethical issues that need to be addressed in utilising this resource, but the resources are very rich and not likely to be left in the ground (or under the sea) for very long.

Discussion

In the Discussion Board, consider the following questions:

What effect do you think the development of Timor Sea Gas will have on the population of NT (the Top End at least)? How is it going to change the way people in the Northern Territory think about themselves and perhaps how others might think of the Northern Territory itself?

How important do you think these sorts of projects are for the development of the Northern Territory?

Defence-related industry
Another growth area in future will be in defence-related industries.

Prior to 1987 a small defence contingent of Navy, Army and Airforce personnel were based in the Territory. A government decision in 1987 to increase the Army's presence in the north of Australia was achieved by locating one of the Army's two regular brigades to Darwin in the late 1990s. This meant approximately 2285 personnel, 200 armoured fighting vehicles (Leopard tanks, ASLAV light armoured vehicles and M113 Armoured Personnel Carriers) and 500 support vehicles, along with supporting elements were relocated to Darwin. The relocation required construction of purpose-built barracks at Palmerston, 25 km east of Darwin, and acquisition and development of training areas at a cost of about $585 million. About 1025 married quarters, costing $248 million were also built or leased. These soldiers joined the fighters of Number 75 Squadron RAAF at Tindal and the patrol boats already based in Darwin.

The Defence Forces is a catalyst for growth and development in the Northern Territory. With 6000 defence personnel currently based in the Northern Territory with 8000 dependants, the Defence Forces play a key role in almost every sector of our community. The Minister for Defence Support said recently that the Australian Defence Force expenditure in the NT is over $500 million, including supplies, housing and wages.

Reflection

In what ways do you think the locating of the Defence Forces in Darwin and the north in general contribute to the economy, society and culture of the NT?

The Railway
There's a great deal being touted about the railway link between Darwin and South Australia. The potential exists for this transport link to provide important benefits to the Northern Territory and build the importance of Darwin and the rail as a trade link between South East Asia and the southern parts of Australia. Given that the train has only been running for just under a year, it is really difficult to gauge how it might pan out in the long run. Some people suggest that the railway is outdated technology and unnecessary for the development of the Northern Territory. Others are optimistic that the investment in infrastructure in Darwin (including the development of the new port facilities) and along the 'track' will pay off in the long run.

Reading the latest information from the commercial freight arm of the Railway would suggest things are going to plan. Check out the Freightlink web site and assess the latest information from their perspective. It is also worth exploring the NT Government's web site on the railway and the that of the construction company Australasia Railway. The railway is also said to be an important link in the development of the northern defence capability. It is expected to be able to transport troops and hardware quickly to the north in the event of invasion of military threat.

Reflection

What do you think? Is there a future for the railway in the Northern Territory?

Some people say that the development of the new rail system is just as important for the symbolic process of linking the north of Australia to the south — an act of nation-building. How important is it as a commercial activity and how important are the less tangible benefits of the north-south rail link?