Northern Australia investment to kick start new growth in jobs
Australian Prime Minister Malcolm Turnbull has re-ignited plans to build major infrastructure and ≠resource projects
Northern Australia investment to kick start new growth as the Australian federal government is looking to spend big to ignite further growth and development across northern Australia.
Unleashing of government investment across the north of Australia to transform the economy after the decline of the mining boom.
Despite being sparsely populated and having a population of some 1.2 million, northern Australia consumes almost 50 percent of the nation`s land mass and generates $178bn in economic output. Future predictions suggest massive growth in the future, with further predictions of more jobs in the resource sector to be greater than that of other regions.
Queensland, Western Australia and the Northern Territory would benefit from the draft legislation; in fields such as transport, mining, energy and agriculture.
Minister for Northern Australia Josh Frydenberg driving the scheme so that loan applications can be submitted from July 1 2016. The only condition is that the proposals are at least 50% funded by investment from the private sector.
“This will offer patient capital for longer periods of time,”Ě Mr Frydenberg told The Australian.
“The program will supercharge investment in economic infrastructure in Australia`s north. ≠Developing the region is a bipartisan, long-term national endeavour that will produce big dividends for the country as a whole.”Ě
Many different types of projects would be eligible for the funding including;
‚óŹ The capacity to expand Cairns Airport.
‚óŹ A rail link from Mount Isa to Tennant Creek.
‚óŹ Expansion of tourism to develop the Darwin waterfront precinct.
‚óŹ A $586 million dam project west of Cairns, Nullinga to secure a strong water supply for farmers.
‚óŹ Upgrading of the Tanami Road in Western Australia; and an upgrade to the Outback Way, which stretches 2800km from WA to Queensland; and
‚óŹ The raising of the Eden Bann Weir and construction of a weir at Rookwood on the Fitzroy River in Queensland.
Under the new rules, the government can only borrow up to half of the debt for each project, with some $50m cap on funds contributed by the commonwealth.
The ‘cash-strapped’ Australian commonwealth will borrow to provide the cash for new projects, however it will profit from interest payments on the loans over the long term.
New Minister hinted the government has intention to use taxpayer dollars to help fuel new projects in the coal mining industry.
The $5 billion Norther Australia Infrastructure Fund could contribute to the development of significant infrastructure and Queensland Galilee Basin coal mining projects. The Queensland government has also expressed its support of the major resource projects in the state and was looking to finance the Carmichael mine rail link before a change of government ‘put the brakes’ on and withdrew its offer.
In regards to Queensland mining projects such as the rail projects for Adani Carmichael mine benefiting from the fund, Minister for Northern Australia Josh Frydenberg said: “Yes, if there is a good case and state governments are willing to step up, then you would think that rail is one of the areas where it will go.
Frydenberg has also been quoted as saying that if Australia does not get behind some of the massive mining projects on the drawing board, then other nations will fill the void very quickly “ď and he was not just talking about coal. Iron ore is also on the table as new projects sit idle waiting to be approved.