NT statehood debate reignites as federal politicians indicate new openness

The prospect of Northern Territory statehood has returned to the national political agenda after a Senate committee examining constitutional recognition of territories recommended that the Commonwealth engage in formal consultations with Territorians on statehood, with Labor government ministers indicating genuine openness to the question for the first time in two decades.

NT Chief Minister Eva Lawler has made statehood a priority advocacy issue of her term, arguing that the Territory's status as a territory rather than a state creates a structural democratic deficit, limits the territory's fiscal powers, and subjects Darwin and other NT communities to the constant risk of federal override of territory laws — as occurred with the voluntary assisted dying legislation in 1997 and the Territory RightsRepairs Act in 2006.

Attorney-General Mark Dreyfus confirmed the government was "actively engaged" with the statehood question, noting that the path to statehood required a national referendum and extensive preparation that would take several years even if political consensus could be reached. He said no decision had been made but the government considered the matter worth serious examination.

Opposition to statehood has historically focused on the fiscal implications, as a NT state would be a significant per-capita recipient of Commonwealth financial assistance grants, and on the constitutional complexity of creating a new state. Several Coalition senators repeated these concerns in response to the committee's report.

Territory Alliance president Kylie Bonanni said the community consultation commitment, if honoured, would be the first genuine step toward statehood in more than 20 years. "Territorians have been told they're too small, too remote, too different. This inquiry says maybe those objections aren't good enough," she said.

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