Labor Senators' Additional Comments

1.1Labor Senators seek to highlight that in the 2022-23 Budget, the Australian Government committed to invest $1.5 billion in planned equity to support the construction of common user marine infrastructure at Middle Arm Sustainable Development Precinct (Middle Arm), and $440 million to support the development of Regional Logistics Hubs in the Northern Territory (NT) including at Katherine, Tennant Creek and Alice Springs.

1.2The Senate Environment and Communications References Committee (the committee) heard that the Australian Government investment will provide common use marine infrastructure that can support a range of users of the site. The Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) stated:

The Australian Government’s investment in common-user elements of Middle Arm is not targeted at one industry over another and offers opportunities for a range of sustainable industries including green hydrogen and renewable storage, as well as advanced manufacturing, carbon capture and storage, minerals processing and other land uses.[1]

1.3This may include industries such as renewable energy, green hydrogen, critical minerals processing, and the manufacture and export of lithium batteries—all of which are critical to global decarbonisation and our commitment to net zero.

1.4The Department of Industry, Science and Resources (DISR) explained:

The common user infrastructure proposed at Middle Arm will benefit green hydrogen producers, clean energy exporters and processors of critical minerals, all of which are important to the global energy transition and decarbonisation.[2]

1.5These projects will provide significant economic benefits to the NT and an estimated 20,000 jobs. Chief Minister Lawler described the prospects for the NT:

For the Northern Territory government, this project is about making sure we have Territorians working. This project presents the opportunity for about 20,000 direct and indirect jobs for Territorians into the future. It is about those industries coming to the Northern Territory and providing long-term, stable jobs for Territorians.[3]

1.6Common user infrastructure at Middle Arm is included in Infrastructure Australia’s (IA) Infrastructure Priority List of nationally significant proposals and the Stage 2 business case project was recently approved by IA and will now proceed to Stage 3.[4]

1.7As the project proponent, the NT Government is responsible for progressing Middle Arm to be ‘investment ready’, including the progression of business cases through the IA assessment framework, securing environmental approvals and community engagement.[5]

1.8This work by the NT Government will support the Australian Government to make an informed final investment decision in accordance with the Commonwealth Investment Framework.[6]

1.9A final investment decision will consider the most appropriate funding structure to implement the Australian Government’s commitment.[7]

1.10The Australian Government is not party to negotiations with any proponents that may seek to access Middle Arm,[8] as this is an NT Government project and the Australian Government’s role is in provision of common infrastructure funding. The common infrastructure funding is for elements that support all projects that are part of the precinct, not any particular project or proponent.

1.11The committee heard repeatedly that there is some way to go until the construction of the precinct commences. It is important to note that various environmental assessments are still underway, and the outcome of those assessments will form the basis of the final decisions on which projects can go ahead and in what form.

1.12Contrary to the assertions of the Australian Greens and Independent Senators on the committee, who have consistently used this inquiry for purely political purposes rather than genuinely considering the economic development needs of the Northern Territory, the final make-up of the precinct is not confirmed and is subject to significant and legislated assessment.

1.13The Middle Arm project is currently undergoing a Strategic Assessment under the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act). All potential environmental, social, cultural and economic impacts will be considered through this process. The Department for Climate Change, Energy, the Environment and Water (DCCEEW) stated:

Each strategic assessment, including that of the Middle Arm Precinct, is subject to a rigorous and transparent assessment process before an approval decision is made. This process requires the Northern Territory Government, as the strategic assessment partner, to demonstrate how the impacts of proposed actions are acceptable under the EPBC Act.[9]

1.14The NT Government has also committed to full and proper consultation with affected First Nations peoples and other relevant stakeholders through the regulatory approval process.[10]

1.15Further, the NT Government has undertaken over 200 studies and investigations with a number of feasibility studies currently underway, including:

industry scenario planning;

land development studies and investigations;

marine development studies and investigations; and

environmental studies (including health, economic, social, cultural and heritage assessments).[11]

1.16The Australian Government will work with the NT Government, industry and the local community and relevant First Nation communities to develop a sustainable growth plan for Middle Arm, with a view to further announcements next year on implementation of this planned equity investment.

1.17The Labor Senators are of the view that investing in projects such as the Middle Arm is an important way of diversifying industry in the Northern Territory and setting up our economy for a sustainable future.

Footnotes

[1]Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA), Submission 4, p. 3.

[2]Department of Industry, Science and Resources , Submission 69, p. 3.

[3]The Hon Eva Lawler MLA, Chief Minister of the Northern Territory, Proof Committee Hansard, 11April 2024, p. 5.

[4]Infrastructure Australia (IA), Submission 53, pp. 3­­–4.

[5]See IA, Submission 53.

[6]Mr David Mackay, Deputy Secretary, Regions, Cities and Territories Group, DITRDCA, Proof Committee Hansard, 17 June 2024, p. 57.

[7]Mr Webster, First Assistant Secretary, Commercial Investments Division, Department of Finance, Proof Committee Hansard, 17 June 2024, p. 58.

[8]Mr Mackay, DITRDCA, Proof Committee Hansard, 17 June 2024, p. 60.

[9]Department of Climate Change, Energy, the Environment and Water (DCCEEW), Submission 201, p. 9.

[10]Ms Alison Byrnes MP, ‘Middle Arm Sustainable Development Precinct’, Media Release.

[11]Ms Alison Byrnes MP, ‘Middle Arm Sustainable Development Precinct’, Media Release.