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About Master Builders NT

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					   Master Builders NT
Master Builders Association NT
is a member owned organistation.

It is a part of the Master
Builders Australia (MBA). The MBA
is represented in all states and
territories of Australia.
            Master Builders NT
 Information advice the members- OHS, IR, Technical
  (Building Code of Australia and Australian Standards)
 Industry Training
 Contracts and Stationary
 Publication- weekly email bulletins and quarterly
  newsletters.
 Political lobbying
 Representation- MBANT is represented on all major
  industry committees.
 Networking Opportunities-golf days, industry
  breakfast information seminars, awards nights/annual
  dinner, trade nights and products launches.
Master Builders Australia
 The Federation of Master Builders was
  established in 1890.
 The Federation will be celebrating its 120
  years of existence in 2010
 Master Builders NT has been a part of the
  federation since 1950.
 From 1980 to 2009 changed its name to
  Territory Construction Association (TCA).
  Now reverted to Master Builders NT.
Benefits of Membership
 Provides National Recognition of the building
  and construction industries role in Australia’s
  development, economy and social well being.
 It provides autonomous services for state and
  territories that is unique to the construction
  industry.
 Able to achieve outcomes on a national scale
  with all states and territories involved.
 International fraternity of other Master
  Builders.
  Master Builders Brand
 The Master Builders brand is a very powerful
  brand, not only from a commercial perspective
  but also from a lobbying perspective. It is a well
  recognised by clients because the brand stands
  for quality and integrity which is backed up by
  Codes of Conduct, endorsed by the ACCC.

 The brand also has value politically. The
  recognition given by both federal and state
  governments in appointing Master Builders to
  high level government committees in a wide
  range of areas such as industrial relations, OH&S,
  training, Treasury, Tax Office, international trade,
  and Building Codes.
Economy
GFC and Global Recession
 Last year – all about the gfc
 Pain still with us but the gfc is
 Becoming yesterday’s news
 Despite positive economic news:
 - not “out of the woods” yet!
Impact on Australia
   Australia in early stages of recovery
   Weathered worst of slow down
   Now close to bottom of the cycle
   To move into (modest) recovery
   Building and construction – nationally:
   Commercial hard hit
   Residential to begin to improve
Credit Crunch
 GFC with its US roots left a trail of
  wealth destruction
 Overseas banks took a big hit
 The 4 Australian Banks much better
  off due to good regulation
 But global credit squeeze means a
  shortage of working capital for
  business and development projects
The Territory
 The Northern Territory seems to have
  fared better
 Likely 4 per cent growth in 2008/09
  would be highest of any states
 Forecast 2 per cent growth 08/09
  versus little growth in other States
Investment Boom
 Territory economic growth driven by record
  investment of $5.2 billion in real terms last
  financial year
 Major private sector projects e.g. Blacktip
  gas project, Bonoparte gas pipeline, Gemco
  Manganese refinery expansion on Groote
  Eylandt
 Strong population growth has also driven
  much of the building growth
Public Works
 Private investment complemented by
  government infrastructure
 Victoria highway upgrade
 Owen Springs and Weddell power
  stations
 Ongoing redevelopment of the Darwin
  waterfront
Positive Medium Term
 The NT outlook is positive with strong
  population growth and investment
 Underpinned by Territory
  Government’s record level of public
  infrastructure expenditure of $1.3
  billion (up 50 per cent on last year)
Stimulus to Help Short Term
 Add to this the Rudd Labor
  Government Nation Building and Jobs
  Plan stimulus of over $400 million
 Suggests a great economic future
  where the building and construction
  industry will play a critical role
Long Term –
Building Prospects Good
 Master Builders forecasts total construction
  activity in the Northern Territory next
  decade will be at least $37 billion
 Will see the construction industry become
  one of the largest employers in the
  Territory
 Currently over 6,000 people working in
  construction and this could reach 10,000 or
  more in the next decade
MBA NT Role
 Spectacular growth in the building and
  construction industry
 Means Master Builders Northern Territory
  will work even harder with the Northern
  Territory Government
 On behalf of its members to ensure the
  right policy settings for this level of
  investment to occur without creating delays
  and cost pressures
Working with Government
 The Territory Government is to be
  congratulated for its recent efforts:

 to streamline procurement arrangements

 to increase Development Consent Authority
  resources to speed up planning approvals
Our
Perspective
   The Media’s Perspective

The 3 C’s

  Croc’s
  Crime
Cyclones
   Crime!
Crime!!!
Cyclones
                          Economy - Industry
                                   GSP per Industry


Mining                                  23.6   Retail Trade                           3.4

Property and Business Services           8.9   Finance and Insurance                  3.2

Ownership of Dwellings                   7.5   Personal and Other Services            2.8



Government Administration and Defence    7.0   Accommodation, Cafes and Restaurants   2.2

Construction                             6.8   Communication Services                 2.1

Manufacturing                            6.5   Wholesale Trade                        1.9

Health and Community Services            5.4   Agriculture, Forestry and Fisheries    1.8

Transport and Storage                    5.1   Cultural and Recreation Services       1.6

Taxes less subsidies on products         5.0   Electricity, Gas and Water             1.4

Education                                3.5
           Economic Development



Presently a narrow spine
through the centre


Need to broaden our
thinking East and West
Economic Development - Infrastructure
       Economic Development - Land
Land is the cornerstone for growth and development




             Unique title (ALRA) over 55%+
                     Held in Common
                  Land Councils manage
                 Federal Minister controls
         Places obligations on indigenous people
             Demography - Population
                  Population by age group

  Age
 group
(years)
80-84

70-74

60-64

50-54

40-44

30-34

20-24

10-14

  0-4

        10    8   6          4             2   0   2     4         6   8   10

                      Northern Territory               Australia
Education Status
 Highest Level of Education Achieved (2006)


                   NT %        Australia %

Year 12            33.2            41.8

Higher             18.2            22.7
Education
Certificate        17.2            16.7
 Housing

Housing is the cornerstone of genuine progress,
get it right and it underpins every other strategy
– but get it wrong and it undermines everything
else you are trying to do.
Housing




DARWIN – Australia’s dearest capital to rent or
     purchase – Alice Springs following suit
Capital growth is seductive – Boom town risks
New House Prices




Artificial supply constraints
Cost shifting
Regulation creep; and
Burgeoning expectations
Housing
The Bush




   Paradigm is still one where Governments provide every
    house
   Life cycle is short
   Costs are incredible
   SIHIP is part of the solution
   No tangible debate yet about a private sector role
Opportunities Rail / Port
      Major Bulk Minerals
        Export Centre
                Opportunities
 Gas Resources in Our Region


OUR GAS
SPHERE OF
INFLUENCE
Opportunities – Inpex Gas
 $20bn gas project
  (upstream and
  downstream)

 2 train development in
  Darwin

 Final decision in late
  2010

 Workforce likely to be
  2000-3000

 Gas exports from 2014.
         Climate Change
Top End – More Rain and more cyclones
  Central Australia – Hotter and dryer
            Conclusions
 Substantial economic growth
 Considerable prospects for that to
  continue
 We are well into a transition
 We will have to get the fundamentals
  right
 That includes one society, but many
  cultures
 The key to everything is momentum
                    Disclaimer

Opinions expressed within this presentation are not
necessarily those of the presenter, as he is known to
vacillate, and may deny all knowledge if asked about it in
the future. However, that disclaimer doesn't apply to this
Disclaimer, of course. Opinions expressed in this
Disclaimer are definitely the view of the presenter, except
when they very clearly are not. Got it? If you read
anything in this presentation, you are entirely responsible
for any deleterious effects which may result for you or for
others, be they animal, vegetable or mineral. You are
licensed for the non-commercial use of any material from
this presentation as long as proper attribution is given.
The presenter reserves the right to withdraw such
licensing at the merest whim should he not like the way
you use his stuff. Commercial use may be negotiated.
Pretty easily, in fact. You wanna pay me, who am I to
argue, right?
THANK YOU

				
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