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Northern Territory Chief Minister Michael Gunner says a deal allowing the Government to keep a 20 per cent stake in Darwin Port is a "win-win" agreement, even though it delivers no extra profits and no right of veto to the NT.
Mr Gunner announced the Government had struck a deal to keep a 20 per cent interest in Darwin's port, which was controversially leased to Chinese-owned Landbridge for 99 years.
He said keeping the 20 per cent stake would give Territorians "a say" in the operation of the port and in appointments to senior port positions.
"This gives Territorians, the Territory Government, a direct say in the appointment of positions like the chief executive officer, the chief financial officer, the chief operations officer and the most senior person for Landbridge in Australia," Mr Gunner said.
When the port lease was signed by the NT's former CLP government in 2015, it was agreed that the NT Government would own a 20 per cent stake until Landbridge found an Australian buyer to purchase it.
At the time, the 20 per cent deal was sold as a way of keeping some local control over the Darwin port, which is a highly strategic asset.
After last year's NT election, the Labor Government began talks with Landbridge about the 20 per cent stake staying not just in Australian hands, but with the Government.
Announcing the deal with Landbridge today, the Chief Minister suggested the agreement should ease concerns about the strategic implications of the port lease.
"Now Territorians can have confidence over the next 98 years the Territory Government's going to be involved with the operations of the port, making sure our strategic future is secured," he said.
'We don't have veto' powers, Gunner says
But he also said, the deal did not deliver control to the NT Government.
Instead, it gives the government a right of involvement in some decisions.
"We don't have veto but we must be consulted," Mr Gunner said.
The vice-president of the Landbridge group, Mike Hughes, said the company and the NT Government would work together to develop the Territory.
"We're very happy with the agreement announced today, it puts us and the Northern Territory in the best position to move ahead and continue developing the port and investing and growing trade through Darwin," Mr Hughes said.
Mr Hughes said the agreement gave the NT Government some "more visibility and more control rights", but declined to provide more details.
NT won't share in port's profits
The NT Government says under the deal, it does not have to refund any of the $506 million Landbridge paid for the port lease.
That is because Landbridge paid for 100 per cent of the lease.
The Government says it has not paid for the ownership of its 20 per cent stake and therefore does not share in any profits.
The deal announced today still allows the NT Government to divest its stake, but the Chief Minister said he had no plans to do that.
Mr Gunner said the NT Government had kept the Commonwealth informed of the talks about the deal.
The port lease signed in 2015 to Landbridge has been highly contentious.
It was criticised by security experts and it prompted the Federal Government to tighten national foreign investment rules.
Topics: business-economics-and-finance, government-and-politics, darwin-0800