1 00:00:00,200 --> 00:00:01,880 Speaker 1: Now we know there was a report a little earlier 2 00:00:01,960 --> 00:00:05,600 Speaker 1: this week in the Northern Territory News about housing supply 3 00:00:05,720 --> 00:00:09,320 Speaker 1: crossed and expected to drag down the local economy, with 4 00:00:09,360 --> 00:00:14,240 Speaker 1: the territories already sluggish construction sector applying a potential handbreak 5 00:00:14,280 --> 00:00:17,520 Speaker 1: to growth and investment. Now we know that a report 6 00:00:17,640 --> 00:00:22,360 Speaker 1: has been released on Thursday by KPMG and it estimated 7 00:00:22,440 --> 00:00:26,400 Speaker 1: an additional six thousand new Territory jobs by twenty thirty, 8 00:00:26,480 --> 00:00:30,280 Speaker 1: but said the city must grapple with growing pains as 9 00:00:30,480 --> 00:00:34,920 Speaker 1: a sluggish construction sector struggles to get housing off the ground. 10 00:00:34,960 --> 00:00:39,040 Speaker 1: Now joining us on the line is KPMG's NT managing 11 00:00:39,200 --> 00:00:41,960 Speaker 1: partner Derek Campbell. Good morning, Derek. 12 00:00:42,479 --> 00:00:43,559 Speaker 2: Good morning Katie. How are you going? 13 00:00:43,680 --> 00:00:46,440 Speaker 1: Yeah, really good, Lovely to have you on the show. Now, Derek, 14 00:00:46,720 --> 00:00:48,880 Speaker 1: tell me why was this report commissioned. 15 00:00:50,840 --> 00:00:52,760 Speaker 2: It's a second year that we've done and we've done 16 00:00:52,760 --> 00:00:55,520 Speaker 2: on a basis of twelve and we're calling it enterprise 17 00:00:55,560 --> 00:00:58,880 Speaker 2: and cities across Australia that are what we're calling the 18 00:00:59,320 --> 00:01:03,639 Speaker 2: engine harbor Australia's economy and the mid market. So we've 19 00:01:03,680 --> 00:01:08,360 Speaker 2: got twelve comparable cities that outside of the majors being Sydney, 20 00:01:08,400 --> 00:01:11,440 Speaker 2: Melbourne and a Risbond that we think are the key 21 00:01:11,520 --> 00:01:13,640 Speaker 2: to the mid market in Australia. 22 00:01:14,920 --> 00:01:17,920 Speaker 1: And so what I mean, what exactly did the report 23 00:01:17,959 --> 00:01:21,320 Speaker 1: look into more generally, I guess for the Northern Territory 24 00:01:21,400 --> 00:01:24,600 Speaker 1: and what were some of those key findings. 25 00:01:24,880 --> 00:01:27,440 Speaker 2: Yeah, A key thing that come out of it is 26 00:01:28,280 --> 00:01:31,240 Speaker 2: I suppose the participation rate And there's something that we 27 00:01:31,360 --> 00:01:33,759 Speaker 2: had our economist sub last week and he referenced as well, 28 00:01:33,840 --> 00:01:37,480 Speaker 2: and that people come to the territory to work. We 29 00:01:37,520 --> 00:01:40,720 Speaker 2: have actually got the highest participation rates out of all 30 00:01:40,760 --> 00:01:43,800 Speaker 2: those twelve cities. That's seventy five percent of those people 31 00:01:43,840 --> 00:01:47,160 Speaker 2: that are available to work. So it's great for Darwin 32 00:01:47,480 --> 00:01:49,880 Speaker 2: that those people that come to come up to Darwin 33 00:01:50,200 --> 00:01:53,240 Speaker 2: come to work. But the problem is is getting more 34 00:01:53,320 --> 00:01:57,000 Speaker 2: people up here and to fit that six thousand demand 35 00:01:57,080 --> 00:02:00,440 Speaker 2: that's coming. And obviously part of that is where do 36 00:02:00,440 --> 00:02:01,240 Speaker 2: we house them more? 37 00:02:01,600 --> 00:02:04,360 Speaker 1: Yeah, well it's not and you know it's something that 38 00:02:04,360 --> 00:02:07,600 Speaker 1: we've definitely spoken about on this show before. The issue 39 00:02:07,600 --> 00:02:10,600 Speaker 1: when it comes you know, comes to housing and where 40 00:02:10,639 --> 00:02:13,920 Speaker 1: people are going to live. I mean, like, what is 41 00:02:13,960 --> 00:02:15,720 Speaker 1: the answer here? Do you think? 42 00:02:16,960 --> 00:02:19,600 Speaker 2: Well, it's interesting I did a comparison of those twelve 43 00:02:19,720 --> 00:02:24,080 Speaker 2: cities and divided by ten thousand population to say, how 44 00:02:24,120 --> 00:02:27,440 Speaker 2: do our dwelling approvals rate relative to these other cities? 45 00:02:28,000 --> 00:02:30,280 Speaker 2: We are by far the lowest, and for us to 46 00:02:30,360 --> 00:02:34,080 Speaker 2: even be comparable, our dwelling approvals need to at least double. 47 00:02:34,919 --> 00:02:38,600 Speaker 2: So those greats back in twenty twenty, so we had 48 00:02:38,600 --> 00:02:41,640 Speaker 2: four ou and eighty seven approvals in twenty twenty. We 49 00:02:41,720 --> 00:02:45,240 Speaker 2: need to be closer to six hundred per annum to 50 00:02:45,280 --> 00:02:47,600 Speaker 2: be even comparable to any of those other cities on 51 00:02:47,680 --> 00:02:50,000 Speaker 2: a based on the population that we have. 52 00:02:50,320 --> 00:02:51,800 Speaker 1: I guess it's a tough one or it's a bit 53 00:02:51,840 --> 00:02:54,160 Speaker 1: of a catch twenty two. I mean, you correct me 54 00:02:54,160 --> 00:02:57,359 Speaker 1: if I'm wrong, But you know, with people then sort 55 00:02:57,400 --> 00:03:01,560 Speaker 1: of looking at building unless you've got somebody to move 56 00:03:01,600 --> 00:03:04,440 Speaker 1: into that accommodation or unless you've got you know, unless 57 00:03:04,440 --> 00:03:07,600 Speaker 1: you're moving it into it yourself. I don't like, you know, 58 00:03:07,639 --> 00:03:09,200 Speaker 1: where do you think or how do you think we 59 00:03:09,320 --> 00:03:11,360 Speaker 1: sort of sort through this issue? 60 00:03:12,280 --> 00:03:15,760 Speaker 2: Yeah? Well, the homegrown territory ground has been fantastic. So 61 00:03:16,280 --> 00:03:18,239 Speaker 2: you know, one of the lead indicators that we're reference 62 00:03:18,280 --> 00:03:21,120 Speaker 2: in this report is the finance approvals, so that come 63 00:03:21,160 --> 00:03:24,000 Speaker 2: into play from October last year and what we've seen 64 00:03:24,040 --> 00:03:27,079 Speaker 2: in the December and March quarters is that those finance 65 00:03:27,160 --> 00:03:31,040 Speaker 2: approvals have almost doubled. So that's a fantastic start and 66 00:03:31,080 --> 00:03:34,400 Speaker 2: that there's new homes getting built. The other side of 67 00:03:34,440 --> 00:03:37,880 Speaker 2: it that we see is a huge opportunity is Housing 68 00:03:37,920 --> 00:03:42,640 Speaker 2: Australia Future Fund. Now you know they're targeting twelve hundred 69 00:03:43,280 --> 00:03:46,760 Speaker 2: dwellings for the territory over five years. Unfortunately, we only 70 00:03:46,760 --> 00:03:48,680 Speaker 2: had one hundred and ten approved in the first year, 71 00:03:48,760 --> 00:03:51,560 Speaker 2: so that puts us behind the April. But that's a 72 00:03:52,240 --> 00:03:55,120 Speaker 2: unique opportunity if we can get the federal government approval 73 00:03:55,440 --> 00:03:59,320 Speaker 2: to provide a lot of housing for critical workers, social 74 00:03:59,760 --> 00:04:03,800 Speaker 2: house and you know the affordable housing that is in 75 00:04:03,880 --> 00:04:05,280 Speaker 2: desperate need across the territory. 76 00:04:05,840 --> 00:04:08,280 Speaker 1: And so I mean, if we're not able to sort 77 00:04:08,320 --> 00:04:10,000 Speaker 1: through this, if we're not sort of able to get 78 00:04:10,040 --> 00:04:12,000 Speaker 1: some of those houses moving and to get some of 79 00:04:12,000 --> 00:04:14,920 Speaker 1: that accommodation moving, are we at risk of losing workers 80 00:04:14,920 --> 00:04:17,480 Speaker 1: to other states, particularly when you look at you know, 81 00:04:17,560 --> 00:04:20,039 Speaker 1: some of those critical worker shortages that we've got. 82 00:04:21,040 --> 00:04:23,960 Speaker 2: Yeah, absolutely, Like the rental vacancy rate in a the 83 00:04:24,000 --> 00:04:26,760 Speaker 2: summer Court it was only three point seven percent so 84 00:04:26,800 --> 00:04:30,080 Speaker 2: there's not a lot available out there. But also we're 85 00:04:30,080 --> 00:04:32,920 Speaker 2: in a unique position at the moment where we've had 86 00:04:32,920 --> 00:04:36,960 Speaker 2: a lot of large projects complete and there's a better 87 00:04:37,000 --> 00:04:40,159 Speaker 2: twelve month gap before more start, So we've got a 88 00:04:40,200 --> 00:04:42,960 Speaker 2: retention period of twelve months that we need to keep 89 00:04:42,960 --> 00:04:45,560 Speaker 2: these people employed and keep them retaining within the territory. 90 00:04:46,760 --> 00:04:49,480 Speaker 1: I mean it seems like that may be easier said 91 00:04:49,520 --> 00:04:50,880 Speaker 1: than done, do you reckon, Derek? 92 00:04:51,680 --> 00:04:56,479 Speaker 2: Yeah? Absolutely. You know, this residential housing boost, if you like, 93 00:04:56,600 --> 00:04:59,359 Speaker 2: will help keep some of those construction workers. So you know, 94 00:04:59,400 --> 00:05:01,680 Speaker 2: it's important that we try and do everything that we can. 95 00:05:01,760 --> 00:05:05,400 Speaker 2: And I know, working with the Anti government and Lera 96 00:05:05,600 --> 00:05:09,840 Speaker 2: and Bills as Treasurer, you know they're looking at ways 97 00:05:09,839 --> 00:05:12,520 Speaker 2: to reduce the red tape, but that doesn't happen overnight either, 98 00:05:12,600 --> 00:05:14,280 Speaker 2: So and I mean, is. 99 00:05:14,240 --> 00:05:16,840 Speaker 1: That really what does need to happen? There does need 100 00:05:16,880 --> 00:05:19,160 Speaker 1: to be that reduction in red tape so that you're 101 00:05:19,200 --> 00:05:21,120 Speaker 1: able to get things moving along a bit faster. 102 00:05:22,400 --> 00:05:25,359 Speaker 2: Red tape's an easy, easy thing to say. It's I 103 00:05:25,360 --> 00:05:29,520 Speaker 2: think it's certainty and confidence in the approval processes. You know, 104 00:05:29,560 --> 00:05:32,360 Speaker 2: we've seen Santos with single lead point and the issues 105 00:05:32,360 --> 00:05:34,560 Speaker 2: that they've had. I think it was awesome to see 106 00:05:34,600 --> 00:05:37,880 Speaker 2: Santos have a win against some of the activist movements 107 00:05:37,880 --> 00:05:41,039 Speaker 2: that give a little bit more confidence about the private 108 00:05:41,080 --> 00:05:42,479 Speaker 2: sector investing in the territory. 109 00:05:43,360 --> 00:05:45,320 Speaker 1: Yeah, well it did. Like it sort of means, I 110 00:05:45,320 --> 00:05:47,440 Speaker 1: suppose that, you know, for a lot of people, you 111 00:05:47,480 --> 00:05:49,240 Speaker 1: go all right, well, you know, you can have activists 112 00:05:49,279 --> 00:05:52,640 Speaker 1: sort of stand up and have a crack, but at 113 00:05:52,640 --> 00:05:54,520 Speaker 1: the end of the day, there are still people that 114 00:05:54,560 --> 00:05:56,200 Speaker 1: want these projects to happen. 115 00:05:55,960 --> 00:06:00,520 Speaker 2: To absolutely, and if we're competing for investment with others, dates, 116 00:06:01,040 --> 00:06:03,200 Speaker 2: you know, we have to do something different to provide 117 00:06:03,240 --> 00:06:06,560 Speaker 2: that confidence to investors that they know that absolutely they 118 00:06:06,600 --> 00:06:08,680 Speaker 2: need to go through the process, but once the process 119 00:06:08,720 --> 00:06:11,520 Speaker 2: is approved, that they can get on it and with 120 00:06:11,560 --> 00:06:12,600 Speaker 2: their investment decisions. 121 00:06:12,720 --> 00:06:18,000 Speaker 1: Yeah. Well, Derek Campbell, the KPMG NT managing partner, really 122 00:06:18,040 --> 00:06:19,719 Speaker 1: good to catch up with you this morning, mate, Thanks 123 00:06:19,760 --> 00:06:20,600 Speaker 1: so much for your time. 124 00:06:21,360 --> 00:06:22,559 Speaker 2: Thanks Katie, thank you.