PM Transcripts

A
SR
PRIME MINISTER
FOR MEDIA 27 May 1983
The Prime Minister and the Chief Minister of the Northern
Territory, Mr Paul Everingham, held lengthy discussions
today on whether the Northern Territory Government was prepared
7-o find room within its own priorities for the funding of
of the construction cost of the Darwin/ Alice Springs
railway. During the course of the discussion the Prime Minister suggested
that the Chief Minister might consider an independent economic
evaluation from the point of view of Australia, including the
Northern Territory, of the relative merits of expenditure on
the railway and the up-grading of the Stuart Highway betw'e en
Darwin and Alice Springs.
The Federal Government made it clear in the Economic Statement
on May 19 that it was prepared to meet 60% of the cost of the
railway. The Federal Government had undertaken that if this was
not acceptable to the Northern Territory the Federal Govern~ ment
was prepared to provide, in place of the railway, a higiher
standard road link from Alice Springs to Darwin ( the Stuart
Highway) by 1987.
The Prime Minister reiterated that the Federal G3overnment was
prepared to commit itself to 60% of the cost of the railway.
But in the financial situation it had inherited, it would
be irresponsible to go any further without much stronger evidence
of economic benefits from the point of view of Australia as a
whole, including the Northern Territory.
The Prime Minister advised Mr Everingham that any delay in
reaching a final decision on the Federal Government's proposal,
should the Northern Territory decide against the railway, would
lead to delays in the letting of contracts for the accelerated
up-grading of the Stuart Highway.
The Prime Minister asked for a response from Mr Everingham by
the time he leaves for overseas on June 2, or at the cost of
further delays in work on the road, should the Northern Territory
decide against the railway, at the latest by June 24.