But if the latest New South Wales budget is any guide, the state government is more intent on milking its coal and energy infrastructure assets to keep long suffering motorists in Sydney happy at the expense of the coal supply chain.
The proceeds from the long-term lease of 49% of NSW’s electricity network assets and the incentive payments expected under the National Partnership Agreement on Asset Recycling with the Australian Government will be deposited in the Restart NSW Fund, a special deposit account established under the terms of the Restart NSW Fund Act 2011.
Restart NSW funds are designated for the delivery of infrastructure with the purpose of promoting economic growth and productivity. Restart NSW is the repository of all net proceeds from asset transactions, including the long-term lease of Port Kembla and Botany and the Port of Newcastle.
But NSW Minerals Council CEO Stephen Galilee said that while infrastructure spending in the NSW budget is welcome, it fails to address the imbalance in infrastructure spending between Sydney and regional NSW, particularly in mining communities across the state.
“NSW is now in sound economic position, thanks largely to the revenue and jobs generated by the Sydney housing boom over recent years, as well as the billions spent on public infrastructure in Sydney. However, Sydney is receiving billions in infrastructure funding, particularly for transport, while the regions are receiving relatively little,” Galilee said.
Of all the major transport-related State Infrastructure Projects listed in the Budget Papers as either underway or due to commence over the next five years, $36 billion is listed for urban projects including trains, buses, ferries, light rail and roads, with just $900 million listed for transport for projects in regional areas.
“While It’s great that the people of Sydney will benefit from the billions being spent on motorways, tunnels, sports stadiums, convention centres and light rail networks in the coming years, regional communities are missing out on their fair share,” Galilee said.
“And while mining communities across regional NSW delivered royalties totalling $1.16 billion to NSW Treasury in the last financial year, just a fraction of these royalties is being returned to mining regions in infrastructure funding in this budget.
“Resources for Regions is an important initiative that provides critical public infrastructure funding to regional mining communities that contribute so much to our economy. However in the four years since its inception in 2012, the Resources of Regions program has returned just $208 million in funding to mining communities, despite the $5 billion in mining royalties raised over the same period,” he said.
The NSW Minerals Council 2016/17 Budget Submission called on the state government to commit at least $60 million per year to the Resources for Regions program. The government re-announced $32 million for the Resources for Regions program, but regional mining communities will be sorely disappointed that there is no new funding commitment from a government touting a $3.7 billion budget surplus.
Hogsback thinks that mining communities across NSW are very sympathetic to the plight of Sydney motorists but they would also be hoping for further funding announcements on Resources for Regions in the very near future.
