Fears mining NSW communities could miss out on millions in state budget

Coal mining communities could miss out on millions of dollars, with rural politicians fearing a pipeline which pumps funding into their communities could be cut in next week’s state budget.

Coal mining communities could miss out on millions of dollars, with rural politicians fearing a pipeline which pumps funding into their communities could be cut in next week’s state budget.

The NSW Government’s Resources for Regions scheme puts millions of dollars a year into council areas doing the heavy lifting on mining or gas exploration, with the latest round providing up to $140 million for works like upgrades to roads and town centres.

Mayors and MPs across the Hunter, where the majority of grants are allocated to, fear the scheme could be reduced in the state budget or spread out over more councils.

An open-cut mine in Singleton, where the local mayor fears a state government scheme could be cut. (Photo by William WEST / AFP)

Ahead of the budget, the NSW Government refused to say whether that would happen, despite the government last week announcing coal royalties would be increased by 2.6 per cent.

Singleton Mayor Sue Moore said cutting the funding would be “a massive blow” to her community.

“I can appreciate some other areas want to be included in the funding … but this needs to be (given to) the area where the mining activity occurs,” she said.

“Whether it’s the dust or perceived poor environment (from mining), we have to be able to get benefits back to our area.”

Upper Hunter MP Dave Layzell said any negative changes to the scheme would cut “a massive funding stream for our region”.

Minister for Regional NSW Tara Moriarty. Picture NCA Newswire/ Gaye Gerard

“Muswellbrook, Singleton and Cessnock put up with significant impacts … transient communities, (mining) traffic, the dust,” he said.

“We have good jobs and good industry … but that only works if the people who live there see some benefits themselves.

“(The state government is) going to take more of the royalties off mining companies … but the fact is our communities deserve money back.”

A spokeswoman for the Minister for Regional NSW, Tara Moriarty, wouldn't rule out if the Resources for Regions scheme would be slashed in the budget next week, or whether it would be spread over more council areas.

“We will comment on funding commitments following the NSW state budget,” she said.