1 00:00:00,320 --> 00:00:02,600 Speaker 1: We know that the Reserve Bank of Australia raised the 2 00:00:02,680 --> 00:00:05,920 Speaker 1: cash rate by another quarter of a percentage point for 3 00:00:05,960 --> 00:00:08,760 Speaker 1: a second month in a row. The official interest rate 4 00:00:08,840 --> 00:00:11,520 Speaker 1: is now sitting at four point one percent. It's a 5 00:00:11,600 --> 00:00:14,960 Speaker 1: level which has not been seen since twenty twelve. 6 00:00:15,400 --> 00:00:16,720 Speaker 2: The RBA Board. 7 00:00:16,600 --> 00:00:19,240 Speaker 1: Is concerned that it's taking too long to get inflation 8 00:00:19,400 --> 00:00:22,240 Speaker 1: under control, with further rate hikes likely. 9 00:00:22,480 --> 00:00:24,880 Speaker 2: Unfortunately, so there's no doubt that it. 10 00:00:24,840 --> 00:00:27,720 Speaker 1: Does have a big impact in so many ways right 11 00:00:27,760 --> 00:00:28,480 Speaker 1: across the nation. 12 00:00:28,600 --> 00:00:30,680 Speaker 2: But indeed here in the Northern Territory. 13 00:00:30,720 --> 00:00:33,519 Speaker 1: Now joining me on the line is the CEO of 14 00:00:33,600 --> 00:00:36,320 Speaker 1: the NT Chamber of Commerce, Greg Island. 15 00:00:36,360 --> 00:00:37,760 Speaker 2: Good morning to you, Greg. 16 00:00:38,960 --> 00:00:41,640 Speaker 3: Good morning Katie. It seems like it's groundhold day in 17 00:00:41,720 --> 00:00:44,480 Speaker 3: we're telling about the same subject in this month. 18 00:00:44,800 --> 00:00:46,480 Speaker 2: Yeah, well, and this is the thing. 19 00:00:46,560 --> 00:00:49,120 Speaker 1: It's just it's a kick in the guts for so 20 00:00:49,240 --> 00:00:52,680 Speaker 1: many Australians, but for a lot of Territorians who are 21 00:00:52,680 --> 00:00:56,240 Speaker 1: going to be finding it tough with yet another rate rise. 22 00:00:58,320 --> 00:01:02,040 Speaker 3: Yeah, it looks certainly, Katie, it's one that's going to 23 00:01:02,080 --> 00:01:04,280 Speaker 3: continue to plague us for a little while to come. 24 00:01:04,360 --> 00:01:07,520 Speaker 3: It would seem based on the sentiment that we heard yesterday, 25 00:01:07,600 --> 00:01:11,440 Speaker 3: so I think we can expect some more before I 26 00:01:11,560 --> 00:01:13,720 Speaker 3: feel that they've got on top of this inflation issue. 27 00:01:14,680 --> 00:01:18,199 Speaker 1: Now how business is going at the moment, because there's 28 00:01:18,240 --> 00:01:21,640 Speaker 1: no doubt that you know, there's been that discussion about 29 00:01:21,800 --> 00:01:25,199 Speaker 1: as those rates rise that obviously you're spending contracts. 30 00:01:27,200 --> 00:01:30,320 Speaker 3: Yeah, look at that's exactly what the RBA is intending, 31 00:01:30,360 --> 00:01:34,640 Speaker 3: that that spending is reduced, and that will happen, no doubt. 32 00:01:34,680 --> 00:01:37,000 Speaker 3: It does take some time for those rate rises to 33 00:01:37,040 --> 00:01:40,440 Speaker 3: be reflected in people's hip pockets, but it's certainly going 34 00:01:40,440 --> 00:01:42,440 Speaker 3: to be coming and people will be doing a tougher 35 00:01:43,240 --> 00:01:46,520 Speaker 3: From a business perspective, I think many businesses out there 36 00:01:46,520 --> 00:01:48,680 Speaker 3: are running on a fairly empty tank at the moment, 37 00:01:48,720 --> 00:01:51,440 Speaker 3: and this is certainly not going to help with the 38 00:01:51,520 --> 00:01:55,080 Speaker 3: additional increases in the cost of doing business for a 39 00:01:55,160 --> 00:01:59,480 Speaker 3: transport be it electricity, and internally wages with the recent 40 00:02:00,560 --> 00:02:05,280 Speaker 3: award increases across the board. So it's going to continue 41 00:02:05,320 --> 00:02:07,440 Speaker 3: to be a tough time for business, and we've got 42 00:02:07,480 --> 00:02:09,799 Speaker 3: to really look forward to some of these projects that 43 00:02:09,880 --> 00:02:13,280 Speaker 3: are being touted. There's a thing that's going to underpin 44 00:02:13,320 --> 00:02:14,960 Speaker 3: our economy for the next decade or so. 45 00:02:15,360 --> 00:02:17,839 Speaker 1: Yeah, we are all certainly hoping that we do see 46 00:02:17,840 --> 00:02:22,760 Speaker 1: a bit of a turnaround. Hey, on those award wage increases, 47 00:02:23,840 --> 00:02:26,320 Speaker 1: what are business is telling you locally? Is that going 48 00:02:26,320 --> 00:02:28,799 Speaker 1: to have a bit of a pinch on those businesses? 49 00:02:28,840 --> 00:02:32,040 Speaker 1: I know it's always a great thing for those working 50 00:02:32,120 --> 00:02:34,480 Speaker 1: and set to receive that pay rise, but it can 51 00:02:34,520 --> 00:02:36,720 Speaker 1: have a big impact for those trying to run a business. 52 00:02:38,480 --> 00:02:41,079 Speaker 3: It can, and I think to a certain extent, Hey, 53 00:02:41,240 --> 00:02:44,800 Speaker 3: there are sectors of our business community that are insulated 54 00:02:44,840 --> 00:02:47,679 Speaker 3: from this because these increases only impact on the very 55 00:02:47,680 --> 00:02:50,840 Speaker 3: base rates in certain sectors in the territory. It's got 56 00:02:50,840 --> 00:02:52,960 Speaker 3: a history of paying above award wages in a lot 57 00:02:53,000 --> 00:02:55,200 Speaker 3: of cases. But there will certainly be some of the 58 00:02:55,800 --> 00:02:59,400 Speaker 3: some sectors that are impacted by it, and those costs 59 00:02:59,400 --> 00:03:01,960 Speaker 3: will get past from the consumers and that will certainly 60 00:03:02,600 --> 00:03:05,920 Speaker 3: help drive that inflation rate up as well. So that 61 00:03:06,360 --> 00:03:08,600 Speaker 3: itself is a bit of a circular issue. 62 00:03:08,960 --> 00:03:13,359 Speaker 1: Greg there has been national discussion that we could be 63 00:03:13,440 --> 00:03:15,200 Speaker 1: heading for a recession. 64 00:03:15,720 --> 00:03:17,440 Speaker 2: Are you concerned that you. 65 00:03:17,360 --> 00:03:21,080 Speaker 1: Know, as these interest rates continue to rise, and you know, 66 00:03:21,120 --> 00:03:23,840 Speaker 1: with what's happening on that national scale, that that could 67 00:03:23,919 --> 00:03:25,760 Speaker 1: be the situation that we're headed for. 68 00:03:27,880 --> 00:03:32,079 Speaker 3: Look, I'm not hearing that that's a major risk at 69 00:03:32,080 --> 00:03:34,520 Speaker 3: this point. I think we will still see some increases, 70 00:03:35,440 --> 00:03:38,560 Speaker 3: But we also are fortunate enough that this seems to 71 00:03:38,600 --> 00:03:43,040 Speaker 3: be considerable amount of activity continuing in the business community. 72 00:03:43,120 --> 00:03:45,560 Speaker 3: So let's hope that they balance each other out and 73 00:03:45,560 --> 00:03:48,760 Speaker 3: we don't fall into a recession. But I think we're 74 00:03:48,800 --> 00:03:51,680 Speaker 3: interested some challenging year or two while we work for 75 00:03:51,760 --> 00:03:53,560 Speaker 3: some of these activities to really ramp up. 76 00:03:54,080 --> 00:03:57,280 Speaker 1: How are our unemployment rates going here in the territory. 77 00:03:58,880 --> 00:04:02,840 Speaker 3: We're still running in very low unemployment rates. Participation is 78 00:04:02,880 --> 00:04:05,960 Speaker 3: the key. The more people participating in the current workforce, 79 00:04:06,040 --> 00:04:09,720 Speaker 3: the better, and that really does mean accessing those that 80 00:04:09,760 --> 00:04:14,280 Speaker 3: aren't necessarily fully participating, and that many many women out 81 00:04:14,320 --> 00:04:19,840 Speaker 3: there could certainly increase their activities in the workforce and 82 00:04:19,839 --> 00:04:24,520 Speaker 3: were strongly encouraging business to do that. Indigenous Australinians are 83 00:04:24,600 --> 00:04:27,680 Speaker 3: very much on that list of getting into the workforce 84 00:04:27,839 --> 00:04:30,960 Speaker 3: and staying there, so that would really help the local 85 00:04:31,000 --> 00:04:36,000 Speaker 3: economy and also, I guess socially impact on us as well. 86 00:04:36,480 --> 00:04:39,839 Speaker 1: You mentioned then, women, Why is it that we're trying 87 00:04:39,880 --> 00:04:42,280 Speaker 1: to do We not have enough women in the workforce 88 00:04:42,320 --> 00:04:44,760 Speaker 1: at the moment in the territory or are we what's 89 00:04:44,800 --> 00:04:45,400 Speaker 1: going on there? 90 00:04:46,800 --> 00:04:51,960 Speaker 3: Oh? Look, it's one of those perennial issues where females 91 00:04:52,000 --> 00:04:55,200 Speaker 3: absolutely have a place in the workforce, and I think 92 00:04:55,200 --> 00:04:57,400 Speaker 3: in the chamber here we lead by example having something 93 00:04:57,440 --> 00:05:00,280 Speaker 3: like sixty or seventy percent female in our ol woman 94 00:05:00,320 --> 00:05:03,000 Speaker 3: based So it's certainly one that we are fully supportive 95 00:05:03,040 --> 00:05:06,440 Speaker 3: of and really encouraging people to participate while they can. 96 00:05:06,640 --> 00:05:11,000 Speaker 3: It's obviously voluntary with some respects to those decisions, and 97 00:05:11,839 --> 00:05:16,920 Speaker 3: then businesses certainly keen to include everybody where possible. 98 00:05:17,160 --> 00:05:20,039 Speaker 1: Hey, before I let you go, we had been talking 99 00:05:20,160 --> 00:05:24,440 Speaker 1: earlier in the week about the hotel occupancy rates being 100 00:05:24,560 --> 00:05:27,200 Speaker 1: down on pre pandemic times. 101 00:05:27,600 --> 00:05:29,520 Speaker 2: How are we looking at how are. 102 00:05:29,400 --> 00:05:32,120 Speaker 1: We gearing up as we've hit the dry season? 103 00:05:32,160 --> 00:05:38,800 Speaker 3: Now, Yeah, it's an interesting time, Katie. Hotel occupancy has 104 00:05:39,200 --> 00:05:42,200 Speaker 3: still had its challenges, but I'm hearing that there are 105 00:05:42,240 --> 00:05:45,279 Speaker 3: some solid bookings coming up into the future, so I 106 00:05:45,320 --> 00:05:47,919 Speaker 3: think people are really looking for some of those major 107 00:05:47,960 --> 00:05:52,000 Speaker 3: event activities to be coming to the territory, So looking 108 00:05:52,040 --> 00:05:55,680 Speaker 3: forward to the VH Supercars, the dar and Cup Carnival 109 00:05:55,920 --> 00:05:58,479 Speaker 3: and all those type of activities. So it looks like 110 00:05:58,560 --> 00:06:01,720 Speaker 3: this season's been delayed somewhat, but still looks like it 111 00:06:01,760 --> 00:06:02,720 Speaker 3: will be pretty solid. 112 00:06:03,720 --> 00:06:06,240 Speaker 1: Yeah, I think everybody's hoping, so that is for sure, 113 00:06:06,279 --> 00:06:10,240 Speaker 1: particularly you know, some of those those working in the 114 00:06:11,000 --> 00:06:14,240 Speaker 1: hotel industry. I know we'd caught up a little earlier 115 00:06:14,240 --> 00:06:16,200 Speaker 1: in the week with the national body who had said 116 00:06:16,200 --> 00:06:17,919 Speaker 1: that there'd been some real worries, but a lot of 117 00:06:17,920 --> 00:06:21,520 Speaker 1: that was also related to flights. 118 00:06:22,120 --> 00:06:25,200 Speaker 3: Yeah, well, I think flights are still a challenge. We've 119 00:06:25,240 --> 00:06:28,320 Speaker 3: got some rehabilitation works happening at the airport with the 120 00:06:28,400 --> 00:06:32,760 Speaker 3: runway reconstruction, and that'll have some impacts. But what we're 121 00:06:32,800 --> 00:06:35,600 Speaker 3: also seeing is a lot more stock in hotel rooms 122 00:06:35,600 --> 00:06:38,200 Speaker 3: available because the workforce is now there to make sure 123 00:06:38,200 --> 00:06:41,320 Speaker 3: that we've got one hundred percent capability with the hotels. 124 00:06:41,680 --> 00:06:44,520 Speaker 3: So when we can do the comparison that it certainly 125 00:06:44,520 --> 00:06:47,279 Speaker 3: does look compared to last year, the numbers are down, 126 00:06:47,720 --> 00:06:51,599 Speaker 3: but there is also more availability, so hopefully that drives 127 00:06:52,040 --> 00:06:55,000 Speaker 3: a better picture in terms of the value proposition for 128 00:06:55,160 --> 00:06:56,680 Speaker 3: people taking those rooms. 129 00:06:56,800 --> 00:06:59,000 Speaker 1: Yeah. Right, so you reckon there is just as many 130 00:06:59,040 --> 00:07:01,520 Speaker 1: people traveling here, but it just doesn't look as though 131 00:07:01,560 --> 00:07:06,640 Speaker 1: that's the case because there's more rooms open, there's. 132 00:07:06,480 --> 00:07:10,080 Speaker 3: Certainly more opportunity for people to get accommodation. Whether the 133 00:07:10,160 --> 00:07:14,720 Speaker 3: numbers are exactly where they comparable to last year is debatable, 134 00:07:14,760 --> 00:07:17,800 Speaker 3: but it sounds to me like they're coming just a 135 00:07:17,840 --> 00:07:18,520 Speaker 3: little bit later. 136 00:07:19,200 --> 00:07:23,200 Speaker 1: Well, Greg Ireland, the NT Chamber of Commerce CEO, good 137 00:07:23,200 --> 00:07:25,800 Speaker 1: to speak with you this morning. Always appreciate your time. 138 00:07:26,720 --> 00:07:28,760 Speaker 3: No problem at all, Katie, Thank you.