The idea of a merger of the Australian state of South Australia (SA) with the Northern Territory (NT) was made again by former Country Liberal Party MLA and NT Attorney-General John Elferink, amid recent reports last month that NT is in big financial trouble, borrowing money not only to cover daily operational costs but also to pay interest on existing debt.
Elferink’s idea has received some support from former Territory and federal MPs.
In letters to the editor in NT News, Elferink said that SA and NT could merge into “Centralia,” which would have “resources to rival Western Australia.”
The idea gained the support of former deputy Prime Minister and National Party federal leader Tim Fischer who suggested that the merged states be named “Coonawarra,” an Indigenous name which relates to honey.
Australian Conservatives SA Senate candidate Rikki Lambert says the idea has merit but that at the moment, the terms are not really attractive to SA and the SA Liberal Premier Steven Marshal should explore the proposal only on SA’s terms.
“The NT is essentially broke and should serve as a warning to all political parties and candidates of the dangers of promising the world to voters without a clear and transparent plan for voters on how you will pay for it,” Lambert said.
In late December 2018, a local NT independent politician, Gerry Wood, also acknowledged Elferink’s proposal for a merger.
However, both SA and NT governments appear to have dismissed the idea.
“The [Steve] Marshall Government has no plans to merge South Australia with the Northern Territory,” a spokesman for SA’s Liberal government said, according to the ABC.
During a press conference about how an increased migrant intake could help improve the NT’s economy, the territory’s chief minister Michael Gunner said he did not “believe that we should be looking to delegate, defer, or hand [NT] decisions to anybody else,” the ABC reported.
“These are things that Territorians have to solve for ourselves. The solutions are here in the Northern Territory,” Gunner said. “I believe in the future of the Territory and I believe in Territorians.”
Fiscal Problems
An independent report released on Dec. 14, 2018, said that NT’s net debt is projected to increase tenfold from $3 billion in 2017-2018 to about $35.7 billion by 2029-30 if no action is taken.The report explained that over the past 20 years, the NT incurred deficits in its budget, which has made it harder to budget and manage debts in the current economic downturn.
“When the government came to power in August 2016, the Territory had been enjoying the highest level of untied GST revenue since the GST commenced in 2000-01,” the report said.
“However, in the following 18 months, encompassing the 2017 and 2018 Budgets, a total of $3.4 billion was wiped off the Territory’s share of GST between 2017-18 and 2021-22, without a corresponding reduction in the Territory’s expenditure needs.”
NT currently receives $4.26 for every GST dollar raised, compared to SA getting $1.47 and WA receiving just $0.47.
The report urged that the government adopt a medium to long-term plan to balance its budget by no later than 2030.
Currently, there is no definitive plan, but the government is seeking public consultation, including input from industry and unions for help to address the issues.