The NT Government has welcomed the Federal Budget which Chief Minister Natasha Fyles says will ease cost-of-living pressures for Territorians and provide much-needed infrastructure funding, including for the controversial Middle Arm petrochemicals plant.

The NT will see the previously reported $2.5 billion that will provide remote road upgrades, new logistics hubs, money for new university spots, remote housing and $80 million for the new National Aboriginal Art Gallery in Alice Springs. The bulk of the funding – $1.5 billion – will go to the Middle Arm precinct.

Ms Fyles said the Albanese Government’s first budget’s commitments to the NT were “significant” and proved the NT was “the future of Australia”.

“When you look at the investment into all of the Australian jurisdictions the Northern Territory is a standout, but that is because the Northern Territory is the future of Australia,” she said.

“With our proximity into Asia and the emerging economies and the opportunities we have with renewables, we very much welcome this investment.”

The budget includes $682 million for the road projects – a traditional budget commitment that usually takes years to roll out – including for the sealing of the Tanami Road and Central Arnhem Road; $440 million to develop regional “logistics hubs”; $29 million for new training places at CDU and $100 million for remote housing, as well as $3.2 million for homeless veterans in Darwin.

The budget’s cost-of-living measures were targeted towards reducing the costs of childcare and prescriptions, and increasing paid parental leave, which comes amid sharp increases in inflation.

NT households will feel those cost-of-living pressures significantly, with inflation here among the highest in the country.

Federal Treasurer Jim Chalmers’s budget also estimated electricity prices to rise by 56 per cent over the next 18 months with gas prices also expected to continue increasing.

“The Territory Labor Government has been advocating for cost-of-living measures, and this budget delivers,” Ms Fyles said.

“It will reduce the cost of living through cheaper childcare, cheaper medicines, paid parental leave and affordable housing, and assists the Territory in getting more private investment.

“We will continue to work with the federal government to make sure we continue to develop our region, improve our cost of living, and improve our social inequalities.”

CLP denounce budget as letting down Territorians

CLP Senator Jacinta Price said the budget let down those Australians who live in regional and rural areas and Territorians overall by not addressing rising cost-of-living pressures.

“Interest rates have already gone up and are predicted go up further under Labor, which is ripping hundreds of dollars out of households each month,” she said.

“Every time Australians get their grocery docket, their power bill or mortgage statement, they should see Anthony Albanese’s face on it, because he’s the one who is costing them more.”

Ms Price added that the childcare announcement would not help those in regional areas.

“While the Treasurer announced $4.7 billion in childcare measures, he couldn’t create one new additional childcare place, leaving families in the Northern Territory no better off,” she said.

“Labor has put the needs of Northern Territory families last – refusing to increase availability of desperately-needed childcare centres in our regional communities.”

Ms Price said she was concerned that other programs were being cut, including the Energy Security and Regional Development Plan, Regional Accelerator Program, Community Development Grants Program and the Building Better Regions Fund. She claimed that “at least $4.6 billion has been ripped out of regional and rural water projects”.

Controversy over Middle Arm precinct funding

The government’s flagship investment in the Middle Arm precinct has been denounced by environmental groups and the federal Greens who say the funding commitment “flies in the face” of federal Labor’s own climate policies.

“Our politicians are failing to tell us that the Middle Arm petrochemical plant is a Morrison Government-era plan to turn fracked gas from the Beetaloo into plastic, pesticides, and gas for export,” said Getup CEO Larissa Baldwin.

“Public funding for this fossil fuel project flies in the face of a decade of staunch Traditional Owner opposition to fracking on their Country and Labor’s mandate for climate action from voters last election – contradicting Labor’s good work on renewables.

“We can’t let Labor get away with defying Traditional Owners and folding to the gas industry with a huge new fossil fuel subsidy – greenwashed as ‘sustainable development’.”

Greens Senator Dorinda Cox said last week that funding the Middle Arm precinct does not align with climate commitments.

“The government needs to align their current commitments in the budget with their policy commitments and legislation about triggering the climate issues in our communities,” she said.

“We are talking about giving public money to new coal and gas projects, this is about export of gas out of Australia by Middle Arm, and we cannot continue to do that.”

The Australian Petroleum Production and Exploration Association welcomed the Federal Budget and said the oil and gas industry was contributing billions to the economy and creating jobs.

“The best way to put sustained, downward pressure on gas prices is to bring on new supply. This will boost energy security, support manufacturing, reduce emissions, and ensure the industry can continue to deliver the substantial economic benefits to Australians we see in tonight’s Budget figures,” said APPEA Chief Executive Samantha McCulloch.

“The industry has announced more than $20 billion in investment in recent years but moratoriums and regulatory uncertainty are impacting future investment opportunities.”