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Budget Paper No.6 1997/98 Northern Territory Economy



Budget Paper No.6 1997/98 Northern Territory Economy

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Tabled Paper 3223


Tabled Papers for 7th Assembly 1994 - 1997; Tabled papers; ParliamentNT; Tabled Papers




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Manufacturing The manufacturing industry includes those activities which transform materials or components into new products via a value-adding process. In the Territory, the industry accounted for 5.4% of the economy in 1994-95 compared to 14.8% nationally. This represented an increase of 0.7 percentage points over 1993-94. The development of the Territorys 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 capability in most manufacturing segments although activity is dominated by the secondary processing of minerals and the production of materials used in construction. In addition, Territory firms are involved in aluminium fabrication, concrete moulding and construction, cabinetmaking, fibreglassing, plastics, timber, chemicals, glass, canvass, leather, fertiliser, electrical components, clothing and solar energy products. Figure 12.1 shows the proportion of employment in the various manufacturing sectors. In many areas, the full conversion process from raw materials to finished product is undertaken in the Territory and in other cases, Territory businesses value add by assembling intermediate goods into final form. The conversion of bauxite to alumina at Gove is the dominant secondary processing activity in the Territory. With a value of $345 million in 1996, bauxite to alumina processing accounts for just under half of the Territorys total manufacturing output. The food and beverage processing sector is also a significant contributor towards manufacturing 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 Territorys meat and meat preparations exports (valued at $11.0 million in 1995-96). 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 Table 12.1 Manufacturing % of GSP Victoria 18.3 South Australia 17.5 New South Wales 15.3 Tasmania 14.8 Queensland 12.4 Western Australia 10.4 Northern Territory 5.4 Australian Capital Territory 2.5 Australia 14.8 Source: ABS Cat. No. 5220.0, 1994-95 73