PM congratulates Terry Mills on NT win

The CLP's Terry Mills on the campaign trail. Labor has conceded defeat, and PM Julia Gillard has congratulated Mills, who will now become the Northern Territory's new Chief Minister (AAP).

The CLP's Terry Mills on the campaign trail. Labor has conceded defeat, and PM Julia Gillard has congratulated Mills, who will now become the Northern Territory's new Chief Minister (AAP).

Prime Minister Julia Gillard has telephoned CLP leader Terry Mills to congratulate him on his party's win in Saturday's Northern Territory election.

Prime Minister Julia Gillard has congratulated the Northern Territory's new leader Terry Mills after the Country Liberal Party's decisive win in Saturday's election.

After a backlash led by bush voters, the Australian Labor Party in the Northern Territory seems likely to secure only eight seats in the NT's 25-seat Legislative Assembly, with one independent re-elected, although votes are yet to be fully counted.

"Prime Minister Julia Gillard today congratulated Terry Mills and the Country Liberal Party on their win in the Northern Territory election," a statement from the Prime Minister's office said.

A spokesman for Ms Gillard confirmed on Sunday morning that the prime minister had called Mr Mills to personally congratulate him.

The majority of the nine-paragraph press release was devoted to praising the legacy of outgoing chief minister Paul Henderson, with only two references in it to Mr Mills.

Ms Gillard said in the statement Mr Henderson had been dynamic and courageous during a time of expansion and change.

"He leaves the position of chief minister with an outstanding record of achievements in health and education, including a huge boost for education for remote indigenous communities," she said.

"Importantly, he leaves an economy in superb condition, with an unemployment rate of just 4 per cent, down from 7.4 per cent, the envy of the developed world."

Trade Minister Craig Emerson says the NT election was fought on local issues rather than a reflection of Labor's fortunes federally.

"I've always maintained people are more than intelligent enough to separate federal from state issues," Mr Emerson told ABC Television.

"I think the truth is ... outside of Darwin super councils were a real issue."

Dr Emerson said he wouldn't go through the entrails of the result but praised the work of Mr Henderson who had done a fantastic job lowering the unemployment rate and investing in education and health.

Federal workplace relations minister Bill Shorten said people in the Northern Territory were telling him there was also still some residual resentment over the federal government intervention in indigenous communities.

That was put in place by the Howard government but has been continued under federal Labor.

"It's a story of two elections in the Northern Territory: Darwin and the bush," Mr Shorten told Network Ten.

"Mr Henderson thought that the suburbs of Darwin was where the debate was going to be and he did very well there."