NAIF baulks at funding proposal
A GAME-CHANGING hotel project in Townsville is under review after the federal government’s Northern Australia Infrastructure Facility baulked at funding it.
The Morris Group is planning an $80m five-star hotel and super yacht marina adjacent to its Ville Resort-casino in Breakwater Island to cater for growing tourism demand.
But Morris Group owner Chris Morris said he was angry the development financier had wasted their time by encouraging them to lodge an application and then telling them on Wednesday it had been knocked back.
“We are putting the whole development of a new hotel on hold until we work out what to do. I don’t mind if they had said it at the start. We wouldn’t have wasted our time.”
Meanwhile, federal Northern Australia Minister David Littleproud said he would question the fund’s chief executive officer Chris Wade.
“I was not involved in the process in any way. This advice was provided solely by the NAIF,” Mr Littleproud said.
“I’ll be putting questions to the NAIF’S CEO.”
North Queensland MPS were also keen to know what had transpired.
Federal MP Phillip Thompson said he supported the project and would be speaking with Mr Littleproud and the NAIF.
“NAIF went to (Mr Morris) and asked him to apply,” Mr Thompson said.
“I want to find out exactly what has changed. To Chris and his staff, I’m sorry this has happened.
“Chris’s project is perfect for (NAIF).
“It creates hundreds of jobs.”
The Morris Group was also asking for feedback on why there had been an “about turn” on the proposal.
There have been suggestions the NAIF could look at co-funding the project after originally agreeing it could be a sole funder, or that recent changes in the minister and
NAIF board had caused a change in attitude.
A spokesman for the NAIF said the fund was an independent organisation and talked with a range of proponents.
“Neither NAIF’S independent board nor the responsible minister have been involved in
any discussions about this project,” the spokesman said.
“NAIF is happy to continue speaking to the proponent about how NAIF can assist the project and potentially take it to NAIF’S investment decision stage.”
The Morris Group’s chief financial officer, Penny Cottle, said they did not understand why there had been an about turn from preliminary discussions three months ago where it was indicated the project was one NAIF would feel comfortable supporting and financing.
“This development is something that Townsville is clearly in need of and another instance, again, of the government showing a massive lack of support for what Morris Group are trying to achieve in Townsville,” Ms Cottle said.