One of the more interesting (dare, say ’fanciful’) outcomes of this week's States and Territories love-fest was the Northern Territory’s decision to push towards full statehood. This was surprising to say the least – especially coming from a jurisdiction that recently changed its Chief Minister twice in 24 hours.

It’s hardly the model for full governmental independence.

The Northern Territory is one of a tripartite of smaller jurisdictions – the others being The ACT and Tasmania - that are struggling with economics and independence. A close look at some of the key statistics for each reveals some interesting numbers – especially when we consider Federal representation.

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NORTHERN TERRITORY

Image: NT News (Elise Derwin)

Current status: The enfant terrible of the bunch, it’s been only 17 years since their last referendum on full statehood. In 1998 they decided on staying a territory (much to the surprise of nearly everyone), after voting down a referendum that would have granted them only three senators in the Federal upper house (all other states have twelve).

The numbers: The NT has a population of 243,000 people with a product per capita (PPC) of $86,516. This revenue appears surprising, however is bolstered by the high percentage of government employees that manage the challenges of such a remote environment (0.17 people per square kilometre).

Key challenge: As a Territory, this jurisdiction receives large amounts of Commonwealth funding. Should those costs be transferred to the government of a newly-minted state, it’s difficult to see what revenue streams are available to meet the high costs of a dispersed population.

 

AUSTRALIAN CAPITAL TERRITORY

 

Current status: Canberra is both a city in the ACT and a place blamed for everything that goes wrong in the country. It’s perceived as being filled with politicians, but in fact has only two Senators and two Members of Parliament. With a high socio-economic demographic thanks to government employment, it’s Australia’s own Washington DC.

The numbers: Small and rich. That’s the best way to look at the ACT. While it might not be riding the gravy train it enjoyed prior to attaining self-government in 1997, it still enjoys significant Federal support. A population of 385,000 is comparatively crowded at 160/sq km it has the highest GDP in Australia with PPC of $92,140.

Key challenge: Economically, the ACT has had an income double-whammy through the Mr Fluffy asbestos crisis and falling stamp duty revenues. Structurally, Chief Minister Andrew Barr has walked away from any desire to be a full state, despite being in a much better position to achieve it than Northern Territory.

TASMANIA

 

Current status: A fully-fledged state with the full complement of government mechanisms. The State government of Tasmania has a lower house comprised of 40 members and an upper house of 15 members. Tasmania also has Federal representation through a full suite of 12 Senators and five members of the House of Representatives.

The numbers: Tasmania is the smallest state and the least-productive federal jurisdiction in Australia. With a PPC of only $48,378 and it has long cried poor and is one of the largest recipients of GST per head of a population spread across 7.24/sq km.

The challenge: Employment and retention of talent. While one of the most beautiful environments in Australia, and well-known for the quality of its produce, young Tasmanians continue to flee to the mainland, depriving the state of new industry and subsequent revenue streams.

So what?

All we can really deduce from this is that the region most capable of being a state is the ACT – and shows no interest in doing so. The one that wants to be a state (Northern Territory) would be broke in a heartbeat, and the only state among the three (Tasmania) is probably deserving of a Federal take-over, if it’s high level of external funding didn’t suggest this had effectively already happened.

Welcome to Australia. To an outsider, its governance makes as much sense as its wildlife.