Advance Cairns: NAIF should provide ‘seed capital’ grants to drive Northern Australia

One major change could quickly crank up the construction afterburners in the Far North.

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ADVANCE Cairns has called for a Northern Australia Infrastructure Facility overhaul allowing it to crank up the afterburners and provide seed capital grants to key projects instead of just loans.

The $5 billion investment body is dragging the chain through its third year of existence with $1.4 billion of loans to 14 infrastructure projects approved but only $38.5 million actually spent.

Advance Cairns CEO Nick Trompf has pushed for loans of up to 50 per cent of a project’s cost to be allowed in a submission to a senate committee inquiry into the effectiveness of the Federal Government’s Northern Australia agenda.

He also wants the NAIF’s rapidly approaching five-year life span to be doubled.

Advance Cairns CEO Nick Trompf. PICTURE: JUSTIN BRIERTY

“We want to propel the NAIF at a much faster rate, at a time the government is being called on to drive infrastructure spending in a softening economy,” he said.

“The fastest way to activate it is to introduce grant funding.

“It wouldn’t be a free ride — naturally the proponent would be expected to contribute.

“There’s been regular feedback suggesting if there were a grant element to provide the all-important seed capital, it would get things moving.”

Mr Trompf said the senate inquiry coincided with a statutory review of the NAIF legislation — so it made sense to strike while the iron was hot.

Other critical recommendations included injecting another $1.3 billion into the National Water Infrastructure Fund, and establishing an Office of the Pacific in Cairns.

Water infrastructure like the proposed Nullinga Dam will be future to the region’s expansion. PICTURE: SUPPLIED

The full list

■ Commit to $427 million as a 50:50 contribution with the State Government to build Nullinga Dam

■ During 2020 deliver $60 million towards a centre of excellence in tropical medicine at the Cairns Hospital

■ Sign a statement of intent with the Queensland Government and Cairns Regional Council to finalise a City Deal for Cairns during 2020

■ Refine the Northern Australia Infrastructure Facility mandate to enable grant funding of up to 50 per cent

■ Top up NAIF to $5 billion in the May 2020 Federal Budget and extend its operations to June 30, 2026

■ Inject another $50 million into the CRC for Northern Australia and broaden CRCNA priority areas to include the tourism and energy sectors

■ Inject another $1.3 billion into the National Water Infrastructure Development Fund

■ Commit further $500 million over three years for rounds 4-6 of the Building Better Regions Fund

■ Boost the annual allocation of roles in the Far North Queensland Designated Area Migration Agreement well beyond the original 200

■ Long-term commitment and policy stability to reduce the gap in post-secondary education attainment levels between those living in Northern Australia and the national average

■ Consider amending the visa framework to help attract and retain international students in Northern Australia

■ Place considerably greater emphasis on initiatives to drive population growth in key Northern Australia centres including Cairns, Darwin, Townsville, Mackay and Rockhampton.

■ Provide $750,000 as a joint contribution with Queensland to develop the Cairns region Population and Migration Strategy as a pilot for other regions in the north

■ Establish an Office of the Pacific in Cairns and formally recognise Cairns as Australia’s northern hub for delivering its Step-Up in the Pacific program

Originally published as Advance Cairns: NAIF should provide ‘seed capital’ grants to drive Northern Australia