Should South Australia and the Northern Territory Merge

[Guest The Pom Queen]

IN JULY 2018, if all goes to plan, the Northern Territory will mark 40 years of self-governance by *becoming Australia’s seventh state.

 

With a fast-growing economy, low unemployment and proximity to Asia, the Top End is fast becoming an investment hotspot, and Chief *Minister Adam Giles says it’s time Territorians were given more respect.

 

He used last month’s Council of Australian Governments meeting to revive the NT’s push for statehood after a failed referendum in 1998.

 

And he’s received backing — in principle, at least — from his state counterparts, who have expressed formal support for the bid.

 

But some question whether the Territory should be bestowed with the advantages of statehood when its population is a fraction of the size of other states.

 

 

A merger with South Australia, a state with a struggling economy but competitive advantages and the critical mass to compete with the eastern states, could hold the solution.

 

The two jurisdictions already share infrastructure and work closely *together in a number of areas, including tourism, resources and the management of remote communities.

 

Supporters argue that a combined Central Australian state could take that co-operation to the next level and, in doing so, potentially unlock billions of dollars in investment.

 

WHAT’S IN IT FOR SA?

 

MERGING with the NT is a radical and potentially divisive idea but with the state economy reeling from a flood of job losses, business leaders argue this is a debate we should take seriously.

 

SA’s unemployment rate was 7.9 per cent in July, down slightly from a revised 8.1 per cent in June, but still the highest in the nation.

 

Premier Jay Weatherill has warned the worst may still be to come, with continued uncertainty in the shipbuilding and mining industries and the looming closure of *Holden set to bring more pain.

 

Bespoke Approach partner Ian Smith, a veteran lobbyist who sits on the NT’s economic development *advisory panel, says the merger could be a game-changer for SA.

 

“The creation of a new state should not be underestimated,” he said.

 

“If you’re talking about opportunities to tap into, whether it be resources, whether it be agriculture, whether it be mining … and it’s the role of a forward-thinking government to help facilitate that, why wouldn’t you do it?”

 

Union official and Labor state president Peter Malinauskas said the idea was worth exploring if the community was persuaded of its merits.

 

“As a principle I’m supportive of the exploration of the idea but if it’s going to be pursued, it needs to be done with the support of both the population of the Northern Territory and the South Australian community,” Mr Malinauskas said.

 

“There is little doubt that a unique culture has developed within the Northern Territory and it’s precious. It’s one that’s worth preserving.”

 

WHAT’S IN IT FOR THE NT?

 

THE NT is, by most measures, the fastest-growing economy in the *country and boasts arguably the strongest jobs market, with an *enviably low-trend unemployment rate of 4.2 per cent in July. But economists warn this may not be sustainable, with construction winding down on the Territory’s biggest development: a gas processing hub for the massive Ichthys LNG project.

 

And, with oil and gas facilities increasingly built offshore to save costs, it’s unlikely the Territory will attract another project of the same transformational scale to replace Ichthys.

 

The loss of a project such as *Ichthys is likely to highlight underlying deficits in the two-speed NT economy, with a transient population and high costs making it difficult for small business to thrive.

 

In a submission to a federal parliamentary inquiry last year, the Territory’s Country Liberal Government warned that it would lose major *projects unless it received financial help to make substantial road and port upgrades.

 

Supporters of the merger argue that if both jurisdictions resolved to upgrade the infrastructure of *Central Australia as a top priority, *investment and jobs would follow.

 

A merger would also allow for an amalgamation of bureaucracies, theoretically allowing the new combined state to cut costs and retain only the best and brightest public servants.

 

Perhaps the most persuasive *reason for the Territory to consider a merger is that its statehood bid could be doomed to fail if it goes it alone.

 

Mr Smith argues that a new northern state could be seen as lacking legitimacy due to its small population.

 

“Do you give the Northern Territory statehood when it has under 250,000 people? Does it get 12 senators like every other state? The *answer has to be, most probably not,” Mr Smith said.

 

“In one sense it wouldn’t become a state like other states. It would be quite bizarre to have 12 senators *representing 230,000 people and yet you’ve got 12 senators representing six million in Victoria or NSW.

 

“It’s a far more defensible argument for the Territory to pursue statehood in combination with South Australia, rather than going it alone.”

 

WILL IT HAPPEN?

 

THERE are few barriers within our constitutional framework to stop two states or territories from merging.

 

Chapter VI of the Constitution *allows for the creation of new states, including through the combination of two or more states, with the consent of the federal Parliament. A merger would require consent of the states involved, which would likely *involve a referendum in each jurisdiction.

 

Referendums are considered risky to hold at the same time as a general election because they can be clouded by other issues, but they’re also *expensive to hold in isolation.

 

The respective governments of SA and the NT would need to consolidate or alter laws, road rules, school starting ages and myriad regulations in virtually every industry.

 

It also remains uncertain how a combined Parliament would operate.

 

Mr Smith has suggested the merged state could adopt a single house of Parliament, as currently *exists in the NT, but it’s unclear whether this would be accepted or how ideological tensions between *respective governments could be overcome.

 

But even something as simple as coming up with a name for the merged state could be fraught with difficulties, Flinders University political scientist Haydon Manning said.

 

“The obvious name, one would figure, is the state of Central Australia,” he said.

 

For now, at least, a Central Australian “super state” looks bound to *remain a hypothetical concept. Premier Jay Weatherill and Chief Minister Adam Giles have made clear that a merger is not being considered, while welcoming further co-operation.

[Guest The Pom Queen]

No I don't think they should. If they did then is Queensland going to merge with NT and NSW etc

[Parley]

I haven't heard of that suggestion before.

 

I have heard it suggested that Far North Queensland be separate off from QLD and become its own state.

[PommyPaul]

i have to admit i've always thought states and territories are a bit pointless, i'd like to see the whole country lose all it's red tape... e.g changing rego etc etc when moving and just be a united one state australia

[Guest Bobajob]

Yes. Dealing with both they are almost a single entity now so formalising it will be painless

[akiralx]

Yes: SA + NT could be renamed Middle Earth (one suggestion I have read)...

 

The main issue about NT become a state (on its own) is whether it would then gain the increased number of senators it could be entitled to. With a population of only 200,000 I believe, that would be controversial.

[Bobj]

In reality, South Australia is only there to keep Victoria and Western Australia apart...

 

Cheers, Bobj.

[Guest Bobajob]

In reality, South Australia is only there to keep Victoria and Western Australia apart...

 

Cheers, Bobj.

 

Exactly!

[newjez]

i have to admit i've always thought states and territories are a bit pointless, i'd like to see the whole country lose all it's red tape... e.g changing rego etc etc when moving and just be a united one state australia

 

 

Isn't the UK effectively introducing the same thing?

[MARYROSE02]

i have to admit i've always thought states and territories are a bit pointless, i'd like to see the whole country lose all it's red tape... e.g changing rego etc etc when moving and just be a united one state australia

You are talking as if Australia was a single colony to start with. It was six separate and self governing colonies who would never have agreed to unite other than as a federation.

Isn't the UK effectively introducing the same thing?

[Parley]

Australia is one of the biggest countries in the world.

 

We need our states and territories.

 

I think we have too many local councils though.

[MARYROSE02]

Australia is one of the biggest countries in the world.

 

We need our states and territories.

 

I think we have too many local councils though.

I'd like to get rid of Auburn for a start.

[Quinkla]

Merging SA and NT would be madness. The two administrative centres, Adelaide and Darwin, are so far apart that they have nothing in common, no common identity, no common economy, no common climate. They are separated by a giant empty desert that takes days to cross by road (OK, there's Alice Springs in the middle, but once upon a time that was in its own autonomous sub-territory). If they merged, the centre of government would presumably locate to Adelaide and Darwin would suffer from peripherality.

[Guest51810]

I'm glad you said that because I thought I was going to have to look at a map again :unsure:

[Guest Bobajob]

Merging SA and NT would be madness. The two administrative centres, Adelaide and Darwin, are so far apart that they have nothing in common, no common identity, no common economy, no common climate. They are separated by a giant empty desert that takes days to cross by road (OK, there's Alice Springs in the middle, but once upon a time that was in its own autonomous sub-territory). If they merged, the centre of government would presumably locate to Adelaide and Darwin would suffer from peripherality.

 

Administratively they are joined at the hip. It would be a minor change

[flag of convenience]

Already, or at least when I lived there a large number of the civil/public servants were from SA. Hardly be difficult in that sense to merge. I can't see Darwinite's agreeing to their resource revenue going to shore up the rust bucket southern part of the state though in case of a merger.

 

I'd far more prefer to see the NT finally making inroads as the Northern Gateway to Australia (instead of talking about it which has gone on for thirty years) and take off.

[Quinkla]

I'd far more prefer to see the NT finally making inroads as the Northern Gateway to Australia (instead of talking about it which has gone on for thirty years) and take off.

Is Australia in need of a Northern gateway? These days, planes can fly easily to Sydney, Melbourne, Perth or Brisbane from around the world; and the cost of transporting stuff over land to population centres far exceeds the cost of the ship just carrying on to the port where stuff is wanted. I can't see NT "taking off", but it sure as hell does better with its own administration, even if it does cooperate greatly with SA, than it would by being governed from Adelaide.

[flag of convenience]

Is Australia in need of a Northern gateway? These days, planes can fly easily to Sydney, Melbourne, Perth or Brisbane from around the world; and the cost of transporting stuff over land to population centres far exceeds the cost of the ship just carrying on to the port where stuff is wanted. I can't see NT "taking off", but it sure as hell does better with its own administration, even if it does cooperate greatly with SA, than it would by being governed from Adelaide.

 

I see what you mean. I suspect the time has probably missed Darwin and the Northern Gateway throw away concept. It has changed over the years though. It could be a place to encourage far greater Asian participation in development, but then Asia is moving on and perhaps less interested in a small outpost such as that.

 

Of course if it wasn't so darn expensive to live there it would be far more encouraging for more to locate there. SA too far and remote to manage NT affairs a point we both agree on.