Funding shake- up welcome

WHEN it was first announced by thentreasurer Joe Hockey in the 2015 Federal Budget, the $ 5 billion Northern Australian Infrastructure Facility was forecast to be the driving force of a new era of prosperity for the North.

Nearly three years later and we are still waiting for it to deliver the projects that will achieve those aims for Northern Australia.

To date only one project — Onslow Marine Support Base in Western Australia — has received NAIF funding.

For most North Queenslanders, their knowledge of the NAIF centres around attempts by Adani and Aurizon to secure funding for a rail line into the Galilee Basin.

Adani’s bid ended after Premier Annastacia Palaszczuk pledged to veto its approval before last year’s state election.

In February, Aurizon withdrew its application, stating it was unable to secure the required customer contracts.

However, news that the Federal Government will remove what were seen as impediments to major projects getting off the ground has given renewed hope for the NAIF meeting its purpose.

The major change will see the removal of the 50 per cent funding cap, which will allow the NAIF to finance 100 per cent of a project’s debt.

Northern Australia Minister Matt Canavan said this and other changes would help the NAIF “drive the infrastructure investment, in partnership with the private sector and state governments, that delivers jobs in Northern Australia”.

The changes, which follow the recommendations of an independent review, seem to be an admission the former system was failing to deliver.

There are 17 projects being assessed at the moment, including five in Queensland.

The NAIF shake- up means these and the many other proposed projects should now have a much better chance of getting off the ground. This has to be greeted as welcome news for the North.