Less than 0.8 per cent of NAIF’s $5 billion released to projects, none in Queensland

The Federal Government’s key funding agency for development in Northern Australia has released less than 0.8 per cent of the $5 billion it has available.

Correction: An earlier version of this article said the NAIF had released less than 8 per cent of the $5 billion available. The math was wrong, it is in fact 0.8 per cent.

THE Federal Government’s key funding agency for development in Northern Australia has released less than 0.8 per cent of the $5 billion it has available.

New figures revealed the flagship Northern Australia Infrastructure Facility (NAIF) has provided just $38.5 million to three projects, none of those in Queensland.

The NAIF was launched four years ago and has repeatedly come under fire for being inflexible and limiting.

So far $1.2 billion of the NAIF’s available $5 million has been approved for 11 projects, including up to $98 million for James Cook University’s new Technology Innovation Complex and up to $50 million for the Townsville Airport redevelopment.

But so far just $38.5 million has been released to three projects in the Northern Territory.

Labor Senator and opposition North Queensland spokesman Murray Watt seized on the figures, and said at this rate it would take the Federal Government 500 years to distribute all the funding.

“It’s little wonder, that across Northern Australia, the NAIF has been written off as the No Actual Infrastructure Fund,” he said.

“The NAIF was supposed to create jobs and stimulate economic development across the north. Instead, it’s just provided another gravy train for its directors and executives.”

The NAIF underwent an overhaul in April last year following the findings of an independent review.

Changes included removal of the 50 per cent cap on loans so NAIF is able cover all of a project’s debt, expanding the definition of eligible infrastructure and establishing regional development hubs to support projects in the latter stages of financing.

Northern Australia Minister Matt Canavan defended the NAIF’s record and said the government had delivered 41 of the 51 recommendations of the 2015 White Paper on Developing Northern Australia.

“Alongside that, via the NAIF, the Liberal Nationals Government has invested more than $1.4 billion in loans, through Investment Decisions and conditional approvals, to 14 infrastructure projects across Northern Australia, including $781 million for projects in Queensland,” he said.

“13 of the 14 decisions have been made since last year’s changes to the NAIF Investment Mandate.”

It comes amid an ongoing Senate inquiry into the effectiveness of the Federal Government’s Northern Australia agenda, which will look into the “facilitation of public and private investment in infrastructure and economic development” among other issues.

Submissions for the inquiry closes on September 20 with a report due by the last parliament sitting day of 2020.

Originally published as Less than 0.8 per cent of NAIF’s $5 billion released to projects, none in Queensland