Territory Stories

Budget Paper No5 Northern Territory Economy 1998/99



Budget Paper No5 Northern Territory Economy 1998/99

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Tabled Paper 382


Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT




Tabled by Michael Reed


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.




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MANUFACTURING The manufacturing industry includes those activities which transform materials or components into new products through a value-adding process. In the Territory, the industry accounts for a relatively small portion of the economy compared to nationally (see Table 12.1). Despite this small base, the Territory manufacturing industry has matured with the growth of the Territory economy. The development of the Territory's manufacturing base has traditionally been in response to the opportunities presented by the mining and construction industries, with food processing an increasingly important component. The Territory has capabilities in most manufacturing segments, although activity is dominated by the secondary processing of minerals and the production of materials used in the construction industry (such as aluminium fabrication and concrete construction). Territory firms are also involved in a wide range of other manufacturing activities, from fibreglassing, plastics, timber, and chemicals; to leather, fertiliser, electrical components, clothing and solar energy products. Figure 12.1 shows the proportions of employment, turnover and wages of the various manufacturing sectors in the Territory. The conversion of bauxite to alumina at Gove is the dominant secondary processing activity in the Territory. With a value of $356 million in 1996-97, this processing accounts for around half of the Territory's total manufacturing output. The food and beverage processing sector is also a signif icant contributor to manufactured output in the Territory, with milk, iced coffee, fruit juice, soft drink, bread, poultry and beef the major food and beverage items processed. These commodities are largely produced for local markets, except for beef, which accounts for a significant share of the Territory's meat and meat preparations exports (valued at $8.9 million in 1996-97). TRADE DEVELOPMENT ZONE The Trade Development Zone (TDZ) is a purpose-built industrial estate that was established in 1985 as an initiative of the Northern Territory Government to support and promote export oriented manufacturing businesses. The TDZ is strategically located in the fast developing East Arm region of Darwin, close to both the city's Central Business District, and the terminus of the proposed Adelaide to Darwin Railway at the new Darwin port. 71 Chapter 12 % OF GSP Victoria 18.0 South Australia 16.3 New South Wales 15.1 Tasmania 14.3 Queensland 11.9 Western Australia 9.8 Northern Territory 5.0 Australian Capital Territory 2.5 Australia 14.5 Table 12.1 MANUFACTURING Source: ABS Cat. No. 5220.0, 1995-96

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