Northern Territory Second Reading Speeches

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TRADE DEVELOPMENT ZONE ACT REPEAL BILL 2003

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Madam Speaker, I move that the bills be now read a second time.

This government is determined to ensure that the reality of a world class transport hub is developed in Darwin. We know that the advent of the railway is now a reality that even the most sceptical Territorians and, indeed, Australians, cannot ignore. We must build on the efforts taken so far and the tremendous work that has been done in making the East Arm Wharf and surrounding area a world class facility.

The Chief Minister announced the formation of a new land corporation in November 2001, principally to develop and manage the proposed industrial estates at East Arm, Middle Arm and Glyde Point. The concept of an industrial and commercially oriented land corporation was developed to ensure the Territory is in the best position to take advantage of major industrial projects due to commence or accelerate this year. The projects include the completion of the Adelaide to Darwin rail link, the completion of Stage 2 of the East Arm Port and onshore and offshore oil and gas projects. It is through the provision of support for these major industrial activities and appropriate linkages that the Territory economy will continue to grow and prosper.

Beyond natural resources, land is an essential requirement for any onshore industry. It is intended that the Land Development Corporation is able to provide quick access to appropriately developed land, thus allowing businesses to focus on their core activities and producing for the Territory. To do this the Land Development Corporation will be established with a land estate at East Arm including the Trade Development Zone. Other areas at Middle Arm and at Glyde Point on the Gunn Point Peninsula will be added as the areas are required.

The corporation’s responsive land release and development focus will assist business and industry to establish in the Territory close to rail, port, air and road transport connections. The new corporation will be provided with freehold title over the estate to enable the management and lease of appropriate areas in a commercially oriented manner. The corporation will be able to arrange leases under the Real Property Act with terms and conditions more often seen in the private sector. It is important to understand that the industrial land asset is viewed as critical to the future of areas such as the wharf and rail internodal transport system. We have protected the land asset by only leasing areas for appropriate lengths of time. In addition, freehold arrangement would not be entered into without compelling reasons and specific approvals.

The corporation’s activities would not be confined to Darwin. Other areas of land in the Territory may be placed under the control of the Land Development Corporation for development as the need arises.

The bill provides that the minister may direct the corporation in the manner in which an activity is undertaken particularly where the activity is non-industrial in nature. I expect such interest will be few and far between but examples include the maintenance of a World War II site and open space areas at East Arm. Any ministerial direction will be laid before the Assembly and reported in the annual report of the corporation in a normal manner of ministerial direction.

The Darwin Port Corporation has been closely consulted in the preparation of this bill to ensure that areas of perceived conflict are avoided. The new corporation may undertake marine associated activities at East Arm or Glyde Point in the future such as developing marinas, moorings for cruise yachts, jetties, flotation basins and developing waterfront industrial land. However, the core business of running a commercial port remains the purview of the Port Corporation. The accepted view is that the two corporations will complement each other’s activities.

While the new Land Corporation will be able to deal in real property and issue leases and licences, it will not be exempt from the Planning Act or any other laws of the Territory. It must be seen to operate in as much of a commercial manner and on similar grounds for business it might be perceived to be competing with.

The corporation will have an advisory board of five members with a maximum of two public sector employees with the balance of the board drawn from the private sector. The prerequisites for appointment are to have a proper qualification or experience or knowledge. Appointment of members will be for a period of up to three years with the ability for terms to be extended. The normal termination of clauses relating to offences and bankruptcy have been included. However, the requirement for the minister to consider a termination has been removed as the termination in these instances under this act will be automatic.

The government intends that the Land Corporation is an immediate and effective body from day one. The corporation will consist of a corporate sole, the Chief Executive Officer, who will seek the advice of the advisory board on commercial matters relating to corporation’s estate. Reporting structures for the corporation are clearly defined under the bill. To some, the reporting requirements might seem onerous, however, we are also dealing with a finite and valuable estate on behalf of all Territorians and the government intends to ensure it is made best use of now and into the future.

Following the example of the AustralAsia Railway Corporation Act the government has decided that this act will also include provision for local industry participation agreements. The provision will mean that industries establishing in Land Development Corporation estates may be required to enter into an agreement on local industry participation. The provision also provides that a civil penalty will apply if there is a breach of such an agreement.

The bill is cognate with the repeal of the Trade Development Zone Authority Act. Australia is now party to all trade agreements which restrict government subsidies and many forms of government assistance to exporting business. Australian business and government also adhere to principles of competitive neutrality onshore. To say the least, times have changed since the concept of the Northern Territory Trade Development Zone. The concept of a zone where businesses derive a benefit over other like businesses because they are in a particular zone is no longer appropriate in today’s business world.

Government therefore does not intend that the corporation take on the activities of what is currently the Trade Development Zone Authority. The corporation becomes responsible for the land interest, assets and liabilities of the Trade Development Zone on its establishment. The current leesees will, at that point, become tenants of the Land Development Corporation. It is intended that there will be as little disruption to Trade Development Zone businesses in this change over as possible. A provision is made in the bill for the assignment of all rights, authorities, other than the exemption from payroll tax and stamp duty. These exemptions as a right of the TDZ licence will cease with the repeal of the Trade Development Zone Act. A separate arrangement is being provided by Treasury to cover payroll tax concessions over licences until the licences expire. Stamp duty concessions will cease all together.

The budget allocation for the Trade Development Zone Authority of $1.108m will transfer to the Land Development Corporation on 1 July 2003. Staff of the existing zone will transfer into corporation positions on an acting basis until after the first Advisory Board meeting, expected in July or August 2003. I expect that the corporation’s positions will be filled as appropriate from that time forward.

My colleague, the Minister for Business, Industry and Resource Development, announced a new trade support program commencing on 1 July 2003. This new program coincides with the repeal of the Trade Development Zone Authority Act. I welcome the announcement and its availability to businesses throughout the Territory.

The merits or otherwise of the Trade Development Zone have been debated many times in this House by our predecessors, and I do not intend to revisit an issue, that to some, has become a long and sorry saga. The existence of the Northern Territory Land Corporation has not been overlooked in the preparation of this bill. However, the Northern Territory Land Corporation’s land holdings are divergent and vast. Government demands that this new land corporation is focussed on supporting our up and coming industries associated with the advent of rail, completion of the new wharf and the onshore and offshore oil and gas projects.

A review of the Northern Territory Land Corporation will be undertaken over the coming year and, where appropriate, land will be transferred to the Land Development Corporation.

Madam Speaker, in closing, I wish to explain that the government is seeking urgency on this bill because of the technical requirements for legislation to sit on the Table for a full month. Given the shortage of time between these sittings and the June sittings, the legislation will not meet that number of days. Therefore, I am indicating now that because we wish to move this legislation through in the June sittings, we will be doing so under urgency. I am happy to provide a briefing to the opposition spokesperson as soon as he wishes. I commend the bill to honourable members.

Debate adjourned.

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