Qld short-changed by $5B Northern Australia Infrastructure fund

Less than $2 million of a $5 billion fund created to develop Northern Australia has been spent in Queensland four years after the money was put aside.

LESS than $2 million from a $5 billion fund for developing Northern Australia has been spent in Queensland despite operating since 2016, it has been revealed.

Newly appointed Northern Australia Infrastructure Facility chief executive Chris Wade told Senate estimates the fund’s “original mandate” had been too restrictive but subsequent changes should lead to more money flowing this year.

“I think it’s been admitted that the original mandate created some restrictions in terms of the NAIF and I think, as you would have seen since the change in the mandate, there’s been a significant increase in terms of investment decisions and conditional approvals and, pleasingly, across all states,” he said.

Labor Northern Australia spokesman Murray Watt is not happy with the pace of investment under the $5 billion Northern Australia Infrastructure Facility. Picture Kym Smith

He said the NAIF had released a total of $88.5 million with the majority of funds flowing to the Northern Territory and Western Australia and just $1.7 million to Queensland.

Opposition Northern Australia spokesman Murray Watt said the NAIF, which he dubbed the No Actual Infrastructure Fund, was supposed to create jobs and projects but had released less than 2 per cent of its entire budget.

Less than 0.04 per cent of the funds have been spent in Queensland, the biggest state in the funding zone.

“At this rate, it’s going to take hundreds of years before this money actually gets out the door to Northern Australia, where it’s desperately needed,” Senator Watt said.

Mr Wade said the total value of “investment decisions” made by the NAIF was $1.98 billion, which represented “great progress” since the change in mandate.

He said there had been seven investment decisions in Queensland with two having reached financial close and three were waiting for approval from the State Government.

“I think it’s pleasing that we’ve got to a place where seven assets have reached financial close, which is a point where money starts flowing and, as we’re saying, we expect that to double during the course of this year,” he said.