Federal $7bn Northern Australia Infrastructure Facility overwhelmingly spent in WA
Queensland is lagging behind WA and the NT is a distant third for investment from the federal government’s flagship Northern Australia financing agency in the last financial year.
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Queensland is lagging behind Western Australia and the Northern Territory is a distant third for investment from the federal government’s flagship northern Australian financing agency in the last financial year.
The Northern Australia Investment Facility has allocated $7bn since it was established, in 2016, to aid the top half of the country.
The agency’s annual report was tabled in parliament this week. The report reveals investment decisions leaning hard to the west, with 87 per cent of decisions this past financial year going to Western Australia.
Heritage Minerals’ Mount Morgan gold and copper project near Rockhampton received the other 13 per cent – $66m – and the Northern Territory accounted for a separate $50m territory government co-financing partnership, with no actual specific projects financed.
A large chunk of the agency’s funding this year went on a “transformational” WA urea fertiliser project near Port Headland.
Federal Northern Australia Minister Madeleine King is with the Prime Minister in Washington in her capacity as Resources Minister. Her office directed questions to the NAIF board, which makes the investment decisions.
The largest NAIF investment to date was a $610m loan to the Kidston pumped hydro project, the spokesman said.
Since the agency was established in 2016, WA has received $2bn of investment, Queensland $1.2bn, and the NT $747m.
Queensland also has the highest percentage of drawdowns – $746m.
“On a regional level, Townsville has been a major beneficiary of NAIF’s support, with support for five projects in the city worth more than $230m in NAIF investment,” the spokesman said.
“In Townsville we expect to announce NAIF’s next investment very shortly, with millions of dollars of NAIF funding to an exciting new project.”
Asked if Queensland taxpayers were getting value for money from NAIF, the spokesman said the $1.2bn loaned by NAIF in the state was forecast to result in $9.5bn of public benefit and support more than 4700 jobs.
“A focus this year was supporting our proponents during economic challenges namely rising interest rates, escalating costs, and a slowdown in the commodity market, leading to a tightening of the market during the latter half of the financial year,” the spokesman said.
There are 29 active projects with NAIF funding at the moment, and 41 in the “pipeline”.
Of the agency’s 45 staff, 20 are based in Cairns, 13 in Sydney, five in Perth, three in Brisbane and two each in Darwin and Townsville.
The agency does have an Indigenous engagement strategy, and highlighted an ongoing project at the Mater Hospital in Townsville for its work in this area.
A cohort have gained Diplomas in Nursing and high school students have completed health care certificates, one of whom won Queensland apprentice of the year.
Townsville Airport also awarded two Indigenous scholarships for JCU.
More than 150 Indigenous businesses have been engaged and at least 568 Indigenous jobs created since 2016, it says in the annual report.
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Originally published as Federal $7bn Northern Australia Infrastructure Facility overwhelmingly spent in WA
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