The Federal government is becoming increasingly frustrated with the Northern Territory government over what it feels is an apparent lack of progress on a number of major construction health projects, and is threatening to withhold payments if project milestones are missed.

Following media reports suggesting that progress on the $150 million Palmerston Regional Hospital was well behind schedule along with that on a number of regional health clinics, Federal Health Minister Susan Ley says a semi-annual update on project progress due in May would be scrutinised closely, and the Federal government…