COMMENT by DON FULLER
The health of the business economy is fundamental to the on-going health and survival of a society and a region. The failure of the economic system and the businesses that sustain it, leads to major social breakdown.
Importantly, such major negative effects can also commence in the opposite direction. That is, the failure of government institutions to maintain law and order and to govern in a competent manner, resulting in social instability, can lead to the failure of the economy.
This is apparent in a number of developing countries such as Haiti, Sudan and a number of African and South American states.
Such failure commences a dangerous, reinforcing cycle where subsequent economic failures lead to increased unemployment, poverty, further social breakdown and associated higher levels of crime and violence.
Discussions with leaders of Territory business indicate that a number are asking whether this is the future of the Northern Territory. The signs are ominous.
Businesses are being forced to shut down in centres such as Alice, Darwin, Tennant Creek and Katherine. One only has to observe the increasing number of empty and boarded up shop fronts.
Such closures are particularly important in the Territory given the fragile nature of the business sector.
Nearly 50% of the economy in the Territory is employed in government and community services.
The private sector is fundamental to the future growth and development of the Northern Territory and it is essential that this sector be encouraged to grow further and mature, so that the Territory economy can diversify away from an overall dependence on government.
However, increasing social dislocation and violence amongst mainly Aboriginal people, now has Alice Springs rated as one of the most dangerous cities in the world. It is preceded only by several South African and South American cities and Port Moresby.
This is having a major impact on the tourism sector, one of the main drivers of private sector growth in the Territory. It is also having a major impact on the running costs of a range of small to medium sized businesses and leading to major recruitment shortages of skilled staff.
Small to medium sized businesses are another important driver of economic growth and development. Many of these are being badly affected as they are located mainly in urban areas where the problems of social disruption and violence are being experienced.
As businesses close, less products and services are available to the wider, mainstream community, compared with other Australian centres and the push and pull factors to leave the Territory increase. The destructive cycle intensifies.
A number of business leaders are asking how this can be allowed to occur as the once safe, prosperous, vibrant, happy Northern Territory with an enviable life-style, is fractured and destroyed before peoples’ eyes, by a lack of competent governance and a confused police and judicial system.
How, they ask, can there apparently be a different law for people based on racial background, such that in the face of violent demonstrations with weapons for example, no arrests are made?
Such major concerns would have to explain why the business sector in the Territory has been recently reported as providing around twice the amount of donations provided to the governing Labor party. This is surprising given the advantage possessed by the Labor party with access to union funding.
However, it is important to appreciate that these negative economic effects will escalate and impact on wider society. Such difficulties are likely to cause increasing problems to both Aboriginal and Non-Aboriginal people, as the future development of the Northern Territory flounders.
Crime adds to business costs but also provides a convenient excuse for businesses, especially financial services, to go online only.
Case in point: Today’s announcement by the People’s Choice Credit Society to close its doors because its staff do not feel safe.
Exactly what were the safety incidents that led to this?
None have emerged in police news or the law courts.
They have security guards in the branch.
Banks and credit societies are highly financially motivated to close their physical branches.
People’s Choice has been well supported here but after a series of mergers, they are just like the banks with no loyalty to local customers.
Especially hard hit will be many Aboriginal clients who rely on face-to-face banking.
The big tell is around 50% is taxpayer money. How much of the private sector then is a runoff from that money?
A major problem is the inability to call a spade a spade due to 18C [of the Racial Discrimination Act 1975] and other legal chicanery which means people can’t be straight shooters about the nature of the issues at hand. The outcome is greater lawlessness and social entropy.