KATIE WOOLF, MIX 104.9: Now the Treasurer and Infrastructure Minister, Bill Yan telling the ABC in Alice Springs that without the Federal Government's financial support, the project would be untenable. We know the Federal Government had promised $80 million towards the gallery, with the Northern Territory Government contributing $69 million. Now joining me on the line is the Federal Minister for Infrastructure. Catherine King, good morning to you Minister.

MINISTER CATHERINE KING: Good morning. Kate, lovely to be with you.

WOOLF: Lovely to have you on the show. Now Minister, the Northern Territory Treasurer reckons that your government is no longer going to back the Aboriginal and Torres Strait Islander Art Gallery project in its current design and location. Is that the case?

KING: So the first thing I'd say is the Commonwealth $80 million remains on the table. And in fact, $16 million, under the contract that we have with the Northern Territory Government, has in fact already been paid to them. They haven't spent any of that yet, they tell us. So they'll have to account for that. Basically what's happened, we made an election commitment back in 2022 when we were in opposition for the Aboriginal and Torres Strait Islander Art Gallery. We reached agreement on the scope and signed a contract with the previous Northern Territory Government. The new government has come in and said they want to change the scope of that. They've come to ask for a request for a variation in the contract, and I haven't made a decision about that yet. It is fair to say, though, that I have asked for some soundings to be taken on the ground in Alice Springs. I've done that, obviously through Marion Scrymgour, the federal member there, as you know. I don't live in Alice Springs to know what's actually happening on the ground. She has raised some concerns with the project, which she has been raising pretty consistently about it being scaled back, and its location, now on the car park of ANZAC Oval, and its closeness to an alcohol facility. She's raised those concerns. They're being raised in the community with her. I'll continue taking soundings, but I have not made a decision as yet. What it sounded like yesterday was, frankly, the Northern Territory Government, basically, they issued me an ultimatum, decide tomorrow or not, which is a pretty weird way of trying to work with the Commonwealth. In essence, it looked like they were trying to push us to take the blame for them wanting to cancel the project yesterday. But that's where it sits today. I will make a decision. I will make a decision about that request for a contract variation shortly. But our money is on the table. Any decision to cancel the project really will sit with the Northern Territory Government.

WOOLF: All right, so money's on the table. It has not been scrapped at this point in time, you are waiting for some feedback around those variations. And the location, I mean, Minister, I guess, the issue with this location is, every location that's been sort of sought over the last few years, you know, there's been concerns with it or somebody's had a worry about it. The other issue, as you, I'm sure full well know, as the Minister for infrastructure, you know, well, delivering grants to the Northern Territory on a regular basis and funding to the Northern Territory on a regular basis, but we're in a heck of a lot of debt, you know. So that scaling back of the project, I suppose for a lot of taxpayers listening, they might be thinking, okay, well, that's fair enough, if we've got to live within our means here.

KING: Well, what we've got, as I said, is also the change of location on the side as well, so that that is part of the variation. Now, we're already investing hugely in, particularly in Alice, and I've got $20 million for the CBD redevelopment, $20 million for the Gap project redevelopment. We're doing a skate park there. There's over $200 million I'm putting in for regional roads. So we're investing very heavily, as it is. I understand, you know, that costs change, scope changes, but at the heart of this is what we're trying to do is deliver an art gallery and cultural precinct in the heart of our country that celebrates First Nations people. If you've got First Nations people on the ground saying the change in scope – now, remembering we had reached agreement with the previous government about the location and scope, and now that you've had a change of government, they have wanted to change that. If you've now got people on the ground saying this is really problematic, what I want to see happen is work done to try and get a resolution to this, so that we can actually deliver what we would all like to see, and that is a cultural and arts precinct that celebrates First Nations people right in the heart of our nation. I stand willing to continue to work with the Northern Territory Government to deliver that, but they've also got to make sure that it's in the interest of the community that that it happens in the way that people can support.

WOOLF: I mean, to any Territorian, and particularly in Alice Springs, listening this morning, some of those tourism operators, you know, they are desperate for this to happen and for it to happen quickly. What do you say to anybody listening this morning who is really very happy for it to go ahead in the location and the scope that the CLP government have put forward?

KING: What I'd say is, again, I have a contract variation before me. I'll make a decision about that. What happens after that is really going to be then a matter for the Northern Territory Government.

WOOLF: Minister, how long do you anticipate you'll need to review that? The revised plans?

KING: Well, I'll make a decision, when I make a decision. I don't make that on the basis of a threat or an ultimatum from a state government. I've worked for a long time really collaboratively with state governments, and I know very well that it's always in your best interest to work pretty closely together. And what happened yesterday, I think, was pretty unfortunate in the history of Commonwealth State relations. It's not really the way you operate. I will take the time to make the decision that I think is the right one for the interests of both the Commonwealth and in terms of the people of Alice Springs.

WOOLF: Minister, before I let you go, the member for Araluen Robyn Lambley, she has weighed in. She's an Independent. She said, if a National Art Gallery cannot be built, then the money should be allocated, well, to building a brand new Alice Springs hospital or a central Australian hospital. What do you think of that?

KING: Well number one, it's a bit hypothetical right at this stage, because I haven't made a decision about that. And as I said, any decision to cancel the project or not proceed will be a decision for the Northern Territory Government, not me. It's their project. They are managing and running the project. So that'll be their decision to make. But any decision for any money to be redirected, they're new projects, and they then have to go through a process of determining for new projects.

WOOLF: Minister, do you feel as though the Northern Territory Treasurer is trying to pull out of the project and lay the blame at your feet?

KING: Well, I couldn't possibly say Kate, but it feels a little like that to me, and I've been around a while, it certainly feels a little bit like that. As I said, our money stays is on the table. We want to see this. And I made the announcement, I made the decision in opposition, that this was a really important project, not just for Alice, and I really love the place, and think that it deserves to have an art gallery and a cultural precinct. But also it seems crazy to me that we don't have something like that. Our first nations people are right at the heart of this country. Why have we not got something celebrating them right at the heart of this country? Let's get it right. Let's take the time to get it right, and that's my view. And so we stand ready to keep working with the Northern Territory Government on what we think is a really important project, but any decision that they make to walk away will be a decision for them, and they'll need to own that decision. I don't think they should lay the blame at our feet.

WOOLF: Is the location going to have to change, though, for you to provide that funding?

KING: As I said, we already reached agreement with the previous Northern Territory Government on a different part of that site, but on that site. So there was already an agreement in place to build it there. The new government has changed that. They made an election commitment, they were going to save ANZAC Oval, and they moved it to the car park, which is a really small and dificult site. So we had reached agreement. So to some extent, I'll make a decision. I'll make a decision, shortly. It'll then be up to the Northern Territory Government to decide what it wants to do next. It will be a matter for them. I think it'll be sad if the gallery doesn't go ahead. But again, that'll be a decision for them.

WOOLF: Well, federal infrastructure Minister Catherine King, really appreciate you taking the time to have a chat with us today.

KING: Always good to talk to you, Katie.