Territory Stories

Budget 2018-2019 Budget Paper No.2 Budget Strategy and Outlook

Details:

Title

Budget 2018-2019 Budget Paper No.2 Budget Strategy and Outlook

Other title

Tabled paper 701

Collection

Tabled papers for 13th Assembly 2016 - 2020; Tabled papers; ParliamentNT

Date

2018-05-01

Description

Tabled by Nicole Manison

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C00042

Parent handle

https://hdl.handle.net/10070/299056

Citation address

https://hdl.handle.net/10070/385802

Page content

Risks and Contingent Liabilities 81 Budget Strategy and Outlook Royal Commission into the Protection and Detention of Children in the Northern Territory The Royal Commission into the Protection and Detention of Children in the Northern Territory was announced by the Prime Minister on 26 July 2016. The Commission handed down its final report on 17 November 2017, and it contained recommendations to the Territorys child protection and youth justice systems. The Territory has accepted the intent and direction of all recommendations of the Royal Commission. The Territorys financial responses to these recommendations are factored into this budget, however the Commonwealth has made no commitment to follow the Commissions direction to participate in funding specific initiatives. Consequently, there is a risk that further investment from the Territory Government may be required in the forward estimates period to fully implement the recommendations. This risk is not quantifiable at this time and therefore not included in the revised fiscal projections. National Redress Scheme for Institutional Child Sexual Abuse In response to the recommendations of the Royal Commission into Institutional Child Sexual Abuse, the Commonwealth intends to commence the 10year Redress Scheme for Survivors of Institutional Child Sexual Abuse in July 2018. An intergovernmental agreement and the Territorys participation in the scheme is still subject to negotiations between the Commonwealth and the Territory. The costs to the Territory in agreeing to the scheme are not quantifiable at this time and therefore not included in the revised fiscal projections. Government owned corporations Following the separation of the Power and Water Corporation into three standalone government owned corporations, the corporations are continuing to establish their own standalone business systems and processes and finalise specific oneoff transformation projects. Decreasing demand growth and increasing generation and retail competition requires greater focus on efficiency and business responsiveness, to be managed through the preparation of each corporations Statement of Corporate Intent, the annual performance agreement between the board and the shareholding minister. In late 2017, concerns were raised with the ongoing financial sustainability of Territory Generation. A review was undertaken and changes to the strategic direction of the corporation are being implemented. The financial performance of Territory Generation has been revised to reflect higher than previously forecast expenditure and lower demand through increased competition. The financial performance and financial position of the corporation is forecast to improve across the budget period and will be closely monitored to ensure improved efficiencies are achieved. Power and Water Corporations Statement of Corporate Intent for 201819 aligns with its submission to the Australian Energy Regulator for regulated network services in 201920 and beyond. The Australian Energy Regulators draft response to Power and Water Corporations submission will not be known until September 2018. To the extent that the final revenue cap determined by the Australian Energy Regulator varies to Power and Water Corporations submission represents an ongoing risk to the Budget. To the extent that each corporation is unable to achieve its Statement of Corporate Intent targets, there is an ongoing risk to the Budget. The Territorys gas market will be connected to the East Coast Wholesale Gas Market in late 2018 following commissioning of the Northern Gas Pipeline. The Territory is subject to the National Gas Law (NGL) and Natural Gas Rules (NGR). Any gas industry reforms considered by the Energy Council and implemented through changes to the NGL or NGR could apply to the Territory and may impact the Power and Water Corporations existing longterm gas contracts. To mitigate this risk, the


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