THE announcement on Friday that Western Desert Resources had been placed into voluntary administration should alarm those espousing the belief that northern Australia’s development needs to ride predominantly on the back of the gas and mining sectors.
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It is difficult to argue that resources booms which have taken place across the country have provided major economic benefits to regional areas but we need to remember that they can also have a devastating impact to communities if things go pear-shaped.
And, when international commodity prices are in play, they often do.
Sherwin Iron suffered a familiar fate to Western Desert Resources in July, only days before speculation erupted that Territory Iron planned to shut down its Frances Creek operation by the end of the year.
As soon as a gas or mining companies – often viewed as economic saviours for struggling regional towns – experience financial difficulty, communities begin to panic as rumours about job losses, property market crashes and empty shops begin to circulate.
It is hardly healthy for the morale and long-term sustainability of Top End towns like Katherine.
In light of comments made at Developing the North regional summits over the past month, it seems almost certain that communities need to brace for a resources boom of mammoth proportions.
While such a boom will certainly transform the Top End, the NT government needs to acknowledge that industries which do not rely as heavily on international gas, gold and iron ore markets – like agriculture, international education and tourism – are the ones that will provide us with gradual, sustainable and successful growth.
