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Until 1974, the Northern Territory had minimal self-government, with a federal minister being responsible for the Territory from Canberra. However, Cyclone Tracy and subsequent response caused problems for the NT Government as it was powerless to act. The Darwin Reconstruction Commission was established in 1975 but progress was initially slowed by apparent indecision from the authorities. There were arguments over whether the city should be completely relocated, which suburbs should be rebuilt, the position of the airport and so on. While a massive temporary city was set up to cater for reconstruction workers, by September 1975, not a single house had been rebuilt. The problems that were highlighted by the lack of NT self-government led directly to the decision of Prime Minister Malcolm Fraser to grant the Territory self-government in 1978.

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