A mixed bag for Territory economy

Commsec's State of the States report for the March quarter indicates the economic performance of the Northern Territory was again a mixed bag.

The report is produced by the Commonweaalth Bank and gives a detailed analysis of each state's economic performance based on eight key indicators.

The report shows the Northern Territory economy is being carried along by consumer spending and a strong jobs market.

Retail spending which continues to buoy the economy in the Northern Territory was 22 per cent above decade-average levels -- higher than anywhere in Australia.

Spending has been supported by the strongest employment market in Australia. The Northern Territory’ unemployment stands at only 3.1%

On the down side, the Northern Territory is the only place in Australia where construction work is not substantially higher than the decade average.

In fact, it is down 28 per cent on the ten year average. It is also two per cent lower than this time last year, says the report.

The report reveals also that the Northern Territory currently has the weakest economy in Australia when it comes to housing finance.

Another point made in the report is that population growth in the Northern Territory was the slowest in seven years.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, The Northern Territory, Australia
http://www.woodwards.co/

Cattle export ban lifted

The Northern Territory Cattlemen’s Association has applauded the federal government’s  decision to lift the live cattle trade suspension, but has cautioned that the cash flow crisis facing producers in the Territory may take more than a year to overcome.

The Northern Territory Cattlemen’s Association is the peak primary industry group in the Territory and represents more than 90 per cent of the region’s cattle herd.

The NTCA president, Rohan Sullivan, who has just returned from Indonesia as part of a joint NT Government and industry delegation, says the reality is that there is a great deal of work that needs to be done in Indonesia before the trade returns to some kind of normality.

Cattle numbers leaving Darwin for Indonesia will be restricted for some time, which translates to continuing financial stress for producers waiting for cattle sales – and there is no financial quick fix, says the NTCA. Live cattle exports are of critical importance to the northern pastoral industry and the northern Territory economy as a whole.

The pastoral industry is the Northern Territory’s third largest GDP earner, accounting for more than 50 per cent of the Territory’s primary production and generating over A$400 million in direct income – statistics that highlight the the type of problems that would arise with a continued ban.

With more than 220 pastoral leases, the Territory industry manages a landmass in excess of 620,000 square kilometres and a herd of over two million head. In 2010, more than 300,000 cattle were exported live through the Port of Darwin.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, The Northern Territory, Australia
http://www.woodwards.co/