Budget Paper 1994-95 No.6 Northern Territory Economy
Tabled Paper 2156
Tabled Papers for 6th Assembly 1990 - 1994; Tabled Papers; ParliamentNT
1994-05-12
Tabled by Barry Coulter
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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https://www.legislation.gov.au/Details/C2021C00044
https://hdl.handle.net/10070/292876
https://hdl.handle.net/10070/398240
Economic Growth A s w ith in c o m e b a s e d G S P d a ta , ex p en d itu re based GSP data reveal the T e rr ito ry s u n iq u e eco n o m ic s tru c tu re . F ig u re 2 .3 sh o w s p r iv a te an d p u b lic expenditure on final consum ption and fixed cap ita l as a p ro p o rtio n o f G SP fo r the Territory and A ustralia. T e r r ito ry G SP g ro w th ra te s in re c e n t years have been re la tiv e ly v o la tile due la rg e ly to ch a n g es in th e v o lu m e and p ric e o f o il. In 1992/93 o ffsh o re oil p roduction accounted for approxim ately 40% o f th e T e r r i to ry s m in in g s e c to r output, dow n from alm ost 50% in 1990/91, the year in w hich w orld oil p rices and T e r r i to ry p ro d u c tio n le v e ls re a c h e d h istorical peaks. The 10 percentage point decrease prim arily reflects low er w orld oil prices together w ith low er oil production levels in the Territory. In the event that future oil production in the Zone o f C ooperation w ith Indonesia is not in part attributed to the Territory, hence not reflected in Territory GSP (despite the substantial role Darw in is expected to p lay as a service centre for operations in the zone), it is not expected that oil production will increase in volum e beyond current levels. Production from existing operations is likely to fluctuate betw een current levels and som e low er level depending on prevailing prices, the need to periodically shutdow n existing platform s for m aintenance and refurbishm ent, and the econom ic viability o f existing operations. Figure 2.4 provides a simple illustration o f the sign ificance o f oil p roduction values to Territory GSP. On the expenditure based GSP m easure, these m ovem ents are reflected in the balancing item as all o f the T errito ry s offshore oil production is exported either overseas or in terstate, and as such does not en ter the local, onshore economy, in any physical or financial sense. In term s o f the incom e based GSP m easure, the im pact o f fluctuations in the value o f oil p roduction is m ost pronounced in GOS and ITLS. As oil production facilities in the Territory are owned by in terstate and overseas interests, it is they, ra ther than local businesses, that 9 Figure 2.3 Expenditure as a Proportion of GSP 1992/93 0 10 20 30 40 50 60 70 Per cent o f Gross State Product Source: ABS Cat. No. 5242.0