Economist proposes Darwin be excised from the rest of the NT

Darwin could be excised from the rest of the Northern Territory to help remote areas get their fair share of government funding.

Charles Darwin University professor Rolf Gerritsen proposed the idea at the Northern Territory Council of Social Services conference in Darwin this morning.

The Alice Springs-based economist said the idea came about when he was looking at the way the Territory runs.

"It basically runs for the benefit of Darwin," Prof. Gerritsen said.

"It bleeds this general purpose money to build wonderful things like the wave pool.

"If we are serious about a fairer and more inclusive Northern Territory then it is time that our governance structures are reformed to allow for a better distribution of the budget to remote and regional communities."

Prof. Gerritsen proposed a city-territory be created and said Darwin and Palmerston city councils could be abolished to make the plan financially viable.

"They could run exactly like the ACT and they would be eligble for Financial Assistance Grants based on their merits," he said.

He conceded that the idea is unlikely to be taken seriously for at least 20 years.