Territory Stories

Budget 2013/14 Northern Territory Economy



Budget 2013/14 Northern Territory Economy

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Tabled paper 295


Tabled papers for 12th Assembly 2012 - 2016; Tabled papers; ParliamentNT




Tabled by David Tollner


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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Department of the Treasury and Finance

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136 Construction 2013-14 Budget Background The Australian Bureau of Statistics (ABS) splits construction work done into three categories: residential building, nonresidential building and engineering construction. Residential building, as defined by the ABS, includes the construction of residential dwellings, conversions (converting commercial buildings into residential dwellings), and alterations and additions to existing residential dwellings in both the public and private sector. Nonresidential building, as defined by the ABS, includes hotels and other nonresidential accommodation facilities, shopping centres, factories, offices, schools, hospitals and cinemas. The ABS defines engineering construction as infrastructure, other than buildings, including roads, bridges, railways, telecommunications infrastructure, and oil and gas developments. Construction work done is reported by the ABS in both inflationadjusted and current price terms. This chapter generally focuses on construction activity in inflationadjusted terms (holding constant the impact of price over time). In 201112, the construction industry accounted for 11.6percent of the Territorys gross state product (GSP) making it the secondlargest industry sector in the Territory, in value terms, after mining. Over the ten years to 201112, the construction industry has on average accounted for 12.7percent of Territory GSP, with engineering construction accounting for 60percent of the Territorys total construction activity, followed by nonresidential and residential building at about 20percent each. The construction industry is also one of the Territorys largest employers, comprising 10.3percent of resident employment in the Territory in 201112 and an average of 8.7percent over the past decade. Since 200001, the value of construction activity in the Territory has increased substantially (Chart 11.1), driven primarily by a series of engineering projects such as the: Darwin to Tarcoola railway; BayuUndan gas and liquids field and subsequent construction of the ConocoPhillips Darwin liquefied natural gas (LNG) plant at Wickham Point; expansion of the Pacific Aluminium alumina refinery at Gove; expansion of the Groote Eylandt Mining Company (GEMCO) manganese refinery at GrooteEylandt; development of the Blacktip gas field; and development of the Kitan and Montara oilfields.

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