Recently, I was involved in a discussion with a group of business people about the land release at Bellamack and Johnston, Palmerston. Although the development of housing blocks for release to the private market at those new suburbs has been successful, one developer was anxious about the next release at Zuccoli. He was concerned about the apparently high projection of demand for homes in the Territory, and wondered whether future land releases should be delayed to allow the market to catch up and avoid, what he thought, an over supply of land.

This conversation reminded me, inherently, most of us operate in silos, more or less, where that which is tangible and immediate influences our assessment of the broader environment.

I apprised this businessperson of a number of Territory wide investment decisions that may prompt further enquiry about the future needs to the Territory. These investment decisions include the Territory 2030 initiatives; the revitalisation of Darwin city; INPEX; SIHIP; stimulus (Territory and Federal) spending; Defence; and Port related activity, including that associated with the marine supply base. 

I pointed out that based on this list alone there was a considerable amount of investment activity in infrastructure and capital works that would have substantial effect on labour and finance and considerable demand for residential land and housing.

Taking each in turn, regarding Territory 2030, the plan was launched on 2 December 2009, and it appears the government is now moving reasonably quickly to implement the plan in a number of ways.

The revitalisation of Darwin city will positively impact the economic and social development of the Territory. Of our population of 220,000, the majority lives in Darwin. The work on Knuckey Street has been completed, Smith Street is underway and Cavenagh Street is next. Among other plans, work is planned for Myilly Park, and the park on the Old Hospital Site.

In December 2009, INPEX released its Industry Participation Plan; and on 15 July 2010, the INPEX project reached another milestone with the release of the Draft Environmental Impact Statement for the proposed Ichthys Gas Field Development Project.

The Strategic Indigenous Housing and Infrastructure Program (SIHIP) continues to spend money across the Territory; as does the Territory and Federal stimulus programs. The Department of Defence intends to spend more than $200m in the Territory this financial year on a number of works including the Robertson Barracks Redevelopment project, RAAF Base Tindal and RAAF Base Darwin.

The marine supply base, adjacent to the Darwin Port at East Arm, will be a significant project with the tendency to accelerate the Territory’s growth and permanently raise the capability and sophistication of Territory industry and manufacturing, based on the oil and gas industry.

Returning to my recent meeting with the businessperson, when you consider the activity just mentioned, probably, the estimates of demand for homes in the Territory, although seemingly high, are most likely correct or potentially, conservative.

These estimates are based on the best data available to government through commercially available economic research, business surveys, and the research, information, and studies compiled by Northern Territory Treasury and the department of Business and Employment, the Land Release Unit and the Territory Growth Planning Unit.

The Chamber has an important role to play for our members through the Chambers ability to bring together this extensive and sizeable information, interpret it and make it manageable for businesspeople and available to our members.

At the same time, in amongst all the activity, to advance the projects referred above, we act to ensure the interests of business are promoted by working on reducing business taxation; assisting with planning for costs increases, such as for power and water; and ensuring government addresses those matters that lead to high costs and provide any barrier to increased efficiency and productivity.