Northern Territory Chief Minister Natasha Fyles says she is "never afraid to have a difficult conversation" amid ongoing "negotiations" with the NT's police commissioner over his position, which have now reached the Supreme Court.
Commissioner Jamie Chalker last week launched legal action against Ms Fyles, as well as Police Minister Kate Worden and the NT government in a bid to prevent his dismissal.
In a motion filed in the NT Supreme Court on Friday, Commissioner Chalker sought a "declaration" from the court that the NT government does not have the power to dismiss him, and that he is entitled to "be afforded procedural fairness and natural justice" before his dismissal can be recommended to the NT's Executive Council or Administrator.
Speaking to ABC Radio Darwin on Tuesday morning, Ms Fyles said "negotiations" with the commissioner were continuing "in good faith".
However, when asked if she still had faith in the commissioner, Ms Fyles said she was "not afraid" to make difficult decisions.
"We are continuing these negotiations in good faith, they are before the court so we need to respect that process," she said.
"What I can say is I'm never afraid to have a difficult conversation or tackle the difficult issues, especially when it's in the best interest of the Territory."
It comes after weeks of speculation around Commissioner Chalker's position and reports he was asked to resign.
Commissioner Chalker's lawyer Arthur Moses SC told the Supreme Court in Darwin on Monday that he intended to cross-examine both Ms Fyles and Ms Worden during a future hearing of the case.
Ms Fyles said this morning she was not concerned about the prospect of cross-examination as she is "cross-examined regularly" by local media, the opposition and her constituents.
Question remains around whether Chalker will return to work
Commissioner Chalker is currently on pre-approved leave, and is set to return to work on Wednesday.
On Monday afternoon NT Police told the ABC they had not received any updates from the government "that suggest" he will not return to work as planned.
Ms Fyles did not confirmed whether or not Commissioner Chalker would return to work as planned as the negotiations were still before the court.
Lawyer for the the defendants, and NT Solicitor-General, Nikolai Christrup SC, said if Commissioner Chalker were to return to work in his current position, it would "cause serious problems" and "potential detriment to the public interest".
"There needs to be trust and confidence between the ministers and the commissioner of police," Mr Christrup told the court on Monday.
However, Mr Moses said the parties could "come to some arrangement" which would mean Commissioner Chalker could remain on leave until after the matter is heard in full.
Commissioner Chalker was appointed in 2019 and his current contract is due to expire in November.
Justice John Reeves did not make any orders in court on Monday, but the court heard no further "adverse" action would be taken until the matter is heard in full at a later date.
The court heard both parties were set to attend a "settlement conference" outside of court late on Monday.
Police left 'in a holding pattern'
NT Opposition Leader Lia Finocchiaro said the ongoing dispute between the government and police commissioner was causing enormous instability for the community amid rising crime rates across the NT.
"Last week we had Natasha Fyles come forward and say she expects the dispute between her and Jamie Chalker to be resolved within a week, and yet news has broken overnight that there is now going to be a protracted court process," Ms Finocchiaro said.
"Our police are being asked to do more with less, they are experiencing a crisis of their own in term of low resourcing, high attrition and very low rates of morale."
However, Ms Finocchiaro did not directly answer when asked if Commissioner Chalker should stand down.
"What we know is this fight between Natasha Fyles and Jamie Chalker is untenable," she said.
"For as long as this dispute continues, we will see our police in a holding pattern."