Housing to support economic growth in East Arnhem

Adam Giles
Chief Minister of the Northern Territory

The Territory Government has welcomed moves by Rio Tinto Alcan to make 50 accommodation units available to support new and expanded business in East Arnhem Land.

These are the first of 250 properties committed by Rio Tinto under its plans to support the regional economy.

“We are working hard to build a new economic future for Nhulunbuy and the availability of affordable accommodation for staff has always been a challenge for local businesses. This housing will be a great way of bringing workers and new enterprises into the region,” Chief Minister Adam Giles said.

The housing will be transferred to the East Arnhem Development Entity by the end of the year. The rental income from this accommodation will fund property maintenance and management in the first instance, with the remainder placed in trust for the new economic development entity to utilise.

“The property portfolio includes a mix of two bedroom flats, as well as two, three and four bedroom houses. These properties are available to employers at affordable prices and are expected to attract high interest from existing businesses, new investors and service providers,” Mr Giles said.

“The release of these properties is expected to stimulate new economic activity and will give the region an important competitive advantage when it comes to attracting workers and new enterprises.”

The rental rates have been based on independent advice from expert valuers and range between $325 and $625 per week, with standard three bedroom houses to let for around $450 per week. This is consistent with benchmarks in similar regional centres.

The remaining 200 properties will be made available progressively over the remainder of this year and into 2015. Interested businesses and service providers can apply directly to LJ Hooker.

Applicants will need to demonstrate that they have taken every step to source twenty percent of their housing requirements from the existing private market. Leases will be offered to organisations, which will then make arrangements with their staff.

Further detail on this policy is available at: www.goveoperationscommunitysupport.com

"The revenues from this housing will help ensure the long term viability of the East Arnhem Development Entity and will flow directly back into economic development projects across the region over coming years,” Mr Giles said.

"This rental revenue is in addition to the $4 million in joint funding announced in March by Rio Tinto and the Territory Government for the development entity and a new economic development fund. Further discussions are being held with the Australian Government on their support for this innovative approach.”

Work toward establishing the entity is progressing with board recruitment to take place once a final corporate structure is settled in September.

"We will be looking across the country for highly qualified candidates with strong financial acumen and experience, as well as a superior knowledge of relevant industries that can drive development in East Arnhem,” Mr Giles said.

"The Regional Economic Development Committee and local business groups will be vital sources of local advice and input for the Board."

The entity is expected to be fully operational by the end of the year.

Source: ProjectLink.com.au

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