PM urged to redirect funding for gas hub to new Royal Darwin Hospital

A coalition of health groups has urged Prime Minister Anthony Albanese to redirect $1.5 billion set for a new Darwin industrial hub to instead build new hospitals in the Northern Territory.

In an open letter, 16 organisations — including the Australasian College for Emergency Medicine and the Australian College of Nursing — have called on Mr Albanese to cancel a Commonwealth budget pledge to fund the controversial Middle Arm precinct.

"We urge the federal government to … redirect these funds into NT healthcare, prioritising a high-quality tertiary hospital for Darwin, improved health facilities for the regions and health promotion," they wrote.

"The health industry is one of the largest employers in the NT and is worth investing in, not only to boost employment, but to improve the quality of healthcare and the lives of local people.

"We are calling for the government to redirect the Middle Arm subsidy away from gas and petrochemical developments that harm public health towards upgrading critical health infrastructure and services in the Northern Territory."

The Middle Arm precinct has been the subject of a senate inquiry and ongoing concern from health and green groups over fears the industries hosted there could impact the Top End's air pollution.

Medical practitioners in the NT have also been calling for the ageing Royal Darwin Hospital (RDH) to be replaced, with the nearly 50-year-old building showing signs of serious deterioration.

During Cyclone Fina in November last year, bricks fell from an outside wall of the hospital into a busy internal waiting area.

"It is incredibly lucky that no staff or patients were injured or killed," the letter reads.

"Demand often outstrips supply at many NT hospitals and health clinics, leaving residents with substandard healthcare compared to the rest of the country."

Earlier this week, the NT Labor opposition announced it would work towards delivering a new RDH if it was elected in 2028, despite having no federal funding locked in to build it.

The federal government has previously poured cold water on calls to fund a new hospital in Darwin, with a spokesperson telling the ABC this week the NT government is "responsible for the planning, funding and delivery of capital" for its public hospital system.

Labor's RDH pledge 'unconscionable', says independent

NT Chief Minister Lia Finocchiaro described Territory Labor's RDH pledge as a "multi-billion-dollar, uncosted, undesigned announcement two years out from an election".

"They just had eight years in government and failed to deliver meaningful reform in our health space," she said.

"What we have had in train for many months now is that we need to master plan and work through the infrastructure needs for our hospital networks, territory-wide.

"That work is being done and we have 100 per cent committed to plan, budget and build the hospital needs for Territorians into the future."

The Country Liberal Party (CLP) NT government has not ruled out building a new RDH.

Labor's pitch has also met with criticism from independent Alice Springs politician Robyn Lambley, who described the move as an "unconscionable" vote grab.

"For the bush-dominated Labor opposition to back a new Royal Darwin Hospital over and above the hospital infrastructure in the regions is unconscionable," she said.

Mrs Lambley has been campaigning for the Alice Springs Hospital to be replaced since 2015, but said her calls had been ignored by both Labor and CLP governments.

"The Alice Springs Hospital is well past its use-by date," she said in a statement.

"I invite anyone to argue otherwise."

Earlier this year there were also calls for the Katherine Hospital to be moved from its current riverside location, after it was evacuated twice in one month due to major flooding in the area.