North ‘needs $15b push’
NORTH Queensland needs a $15 billion development corporation to help fund its fantastic project opportunities to create wealth and jobs, according to investment banker Oliver Yates.
He has raised the idea after seeing many good North Queensland projects during his time as CEO of the Federal Government’s Clean Energy Finance Corporation not proceed.
Mr Yates, who this year stood unsuccessfully as an independent candidate in Treasurer Josh Frydenberg’s Melbourne seat of Kooyong, said what he noticed was that the projects that did proceed in North Queensland were those renewable energy projects where funding was targeted and supported by the state or federal governments.
But there were many other fantastic opportunities that could be funded by a development corporation, he said.
He has compiled a yet-tobe-released report, called Future North, which details 30 projects from aquaculture and biofuels to mineral processing and tourism.
“Why have all the other good projects gone nowhere?” Mr Yates said.
“I have spoken to the project participants and they can’t get banks.
“I strongly believe you need a financial specialist to ensure you have all the ingredients for those developments to proceed. Having the financial infrastructure is a very important part of the support you need.”
Mr Yates raised his idea at a recent Smart Energy Council conference in Brisbane and hopes to take it further with government.
He said a development cortraction with the poration could unlock $15 billion in capital investment in North Queensland and would probably need to be led by the State Government and backed by the private sector.
Mr Yates said the corporation would need to operate commercially without interference from politicians in investment decisions.
He said the Federal Government’s Northern Australia Infrastructure Facility was too limited in its investment mandate.
“I’ve had a fair bit to do with North Queensland during the past 10 years and it’s always struck me how big are the opportunities that exist there – few places in the world exist with such resources and within a geopolitical stable environment,” Mr Yates said.
“Barriers need to be removed, the region needs to be less dependent on minerals or agricultural resources and there are real opportunities to rapidly accelerate investment in the region.”