Shadow Minister for Northern Australia criticises slow release of NAIF funds

THE Federal Opposition warn it could take over a century to spend NAIF’s total $5 billion in project loans if they continue to release funding at the current rate

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THE federal opposition warns it could take more than a century to spend the Northern Australia Infrastructure Facility’s total $5bn in project loans if they continue to release funding at the current rate.

The Northern Australia Infrastructure Facility (NAIF) was due to expire next year, but with $3bn still unused it has been extended by five years to June 30, 2026.

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New figures released to a Senate inquiry last Friday show that NAIF has approved $2bn worth of loans for 19 projects since 2016.

But so far only about $169.2m of those funds have been released — the equivalent of about $34m in spending for each of the NAIF’s five years.

Shadow minister for Northern Australia Murray Watt said at that rate it could take nearly 150 years to fork out NAIF’s total $5bn.

“This slow trickle of funds is shocking,” he said.

Shadow Minister for Northern Australia Murray Watt warned it could take over a century to spend Northern Australia Infrastructure Facility’s total $5 billion in project loans if they continue to release funding at the current rate. Picture: Jerad Williams

“An analysis of the NAIF’s annual reports and questions on notice shows that over $33m, nearly the same amount released for projects yearly, has been spent on executive and staff salaries, office space, travel for board directors, advertising and more over the duration of the NAIF.

“At a time when the north is crying out for jobs, it is a disgrace that the Morrison government keeps sitting on this $5bn war chest.”

Northern Australia and Resources Minister Keith Pitt said he thought it was “ridiculous” that Labor would even question the NAIF.

“In government, they’ve shown very little commitment to regional Australia, let alone the north,” he said.

“No other government has put a focus on developing the north’s economic potential as much as this coalition government.

“Around $2bn has already been committed and, as is usual practice when providing loans, funds are drawn down as required by proponents delivering the projects.

“We have already extended the NAIF for another five years and, as I have stated publicly since taking over the portfolio, the statutory review provides an opportunity to make the NAIF more flexible so it can support more projects for the north, particularly as we emerge from the COVID- 19 pandemic.”

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The NAIF has approved or conditionally approved loans to six projects in the Territory, including the Darwin ship lift project ($300m), Charles Darwin University CBD campus build ($150m), NT Airports upgrade ($150m), and $7.18m for the Humpty Doo Barramundi Farm.