Budget Paper No.6 1997/98 Northern Territory Economy
Tabled Paper 3223
Tabled Papers for 7th Assembly 1994 - 1997; Tabled papers; ParliamentNT; Tabled Papers
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approvals was remarkably strong, increasing 110% in response to declining interest rates and strong growth in the demand for tourism and retail trade facilities. In 1996 the value of non-residential building construction in the Territory continued its strong growth recorded over the previous two years. For 1996 the value of non-residential construction increased by 44.4%. Growth was strongest in the construction of hotels, holiday apartments, shopping centres and business premises. This is indicative of the high rate of economic growth and development experienced in the Northern Territory over the last few years, particularly in the tourism industry. Engineering construction includes all construction activity other than building, either residential or non-residential. It is estimated that the value of work done will increase by 14% during 1996-97 after declining slightly in 1995-96. Due to the relatively small size of the Territory economy, individual large scale engineering projects can have a significant impact on the total value of engineering work done in any year. Significant contributors to the growth in engineering construction were construction of roads and highways, infrastructure associated with defence force expansion, the construction of the new flight control tower at Darwin Airport, construction associated with the McArthur River mine, phase two of the Mt Todd gold mine and the new port facility at East Arm. Constant price estimates of private investment in non-dwelling construction from the State Accounts include both non-residential building and engineering construction (see Figure 11.6). Real growth in non-dwelling investment has been strong for the last two years reflecting the high rate of development and substantial demand for infrastructure in the Northern Territory. National increases were much less pronounced, illustrative of subdued national economic growth over the same period. Non-Residential Building and Engineering Construction Outlook Non-residential building and engineering construction in the Northern Territory will 0 50 100 150 200 250 300 1991 1992 1993 1994 1995 1996 Source: ABS Cat. Number 5242.0 Index Northern Territory Australia Real Non-Dwelling Investment ( 1991 = 100) Figure 11.6 71