Northern Australia Infrastructure Facility Amendment (Miscellaneous Measures) Bill

Federation Chamber – 10 May 2023

 

Deputy Speaker,

I rise to speak to the Northern Australia Infrastructure Facility Amendment (Miscellaneous Measures) Bill.

This is an important piece of legislation that will deliver more funding for infrastructure projects in Northern Australia.

And that’s a very good thing.

Growing Northern Australia’s economy is a key national interest.

Because it is a food bowl producing 94% of Australia’s bananas, 93% of our mangoes, and 12.5 million cattle or up to 90% of Australia's live cattle exports.

It carries Australia’s mining and energy sectors, with major opportunities in renewables like solar, wind, and hydrogen.

And it secures our borders and serves to defend Australia and project power into the region during disasters and crises.

The Northern Australia Infrastructure Facility (NAIF) is just one way the government facilitates economic and population growth in northern Australia by financing infrastructure projects and helping to catalyse private sector investment.

NAIF works with project partners in a range of sectors.

These include resources, energy, transport, agriculture and aquaculture, education, healthcare, and tourism.

NAIF’s role is to be an impact investor in northern Australia by facilitating its growth, accelerating projects, delivering public benefit, catalysing and crowding in private sector investment, and ensuring strong First Nations opportunities.

The enabling legislation for NAIF passed with Labor’s support in May 2016.

But we were critical in Opposition of the very slow progress that NAIF was initially making in disbursing funds.

After four years, only $15 million had been spent by the NAIF on infrastructure projects in Northern Australia as of 2019.

Millions more may have been committed, but though approved these funds weren’t being drawn fast enough.

Labor was committed to seeing NAIF delivering at pace for Northern Australia in accordance with its mandate and its appropriations of $5 billion.

So, when we reached the NAIF’s statutory deadline in 2021, its mandate was extended to 2026—again with Labor’s support.

Then in January 2022 the former Government announced that NAIF’s funding would be increased from $5 billion to $7 billion to keep up with the demand on the Facility.

I’m very pleased that we’ve seen a step-up in the NAIF’s ability to disburse funds, which sat at $3.5 billion last year.

We’ve now got a decent though not yet equal geographical spread between projects.

$1.1 billion have been invested in Western Australia, $1.2 billion in Queensland, and $711 million in the Northern Territory, which still has room to grow.

In its latest annual report, NAIF listed a pipeline of 109 projects with a loan value of $9.3 billion.

The projects were mostly in the resources and energy sector.

One of them was the Sun Cable project in the NT, which seeks to power Singapore using energy harvested in the Territory.

Another was a $300 million investment in the Darwin shiplift.

As well as $150 million to upgrade the NT’s airports in Darwin, Tennant Creek, and Alice Springs.

And $151.5 million for Charles Darwin University.

As well as $7.2 million and again $24.2 million to expand Humpty Doo Barramundi farm.

Altogether, the NAIF is forecast to provide $2.4 billion in economic benefits.

The benefits are spread far and wide with each project.

Let us consider three of these projects in more depth.

Take the Charles Darwin University project for example.

The Education and Community Precinct will be a centrepiece of the revitalisation of the CBD through the Darwin City Deal.

NAIF has approved a loan of up to $151.5 million towards the overall project.

The NAIF loan will support a project worth $250 million, with a total public benefit of $599.4 million over a 30-year period through increased urbanisation and economic activity.

Construction commenced in October 2020.

And it is expected to be completed in time for the start of the 2024 academic year.

The project will create 350 on-site jobs and a further 380 jobs across the supply chain through to 2024.

It is also forecast to support an additional 54 jobs a year in the Darwin economy.

The precinct once built is expected to deliver state-of-the-art teaching and research facilities, an art gallery, and a library.

NAIF’s loan is in addition to $97 million already committed by the Commonwealth Government through the Darwin City Deal initiative.

The project provides ongoing engagement with Larrakia to collaborate on showcasing culture, adopting cultural protocols, and exploring work programs.

It also led to a review of the CDU Reconciliation Action Plan and related policies and provision of providing appropriate cultural training for new employees.

During construction, a supplier use target of 3% for First Nations businesses has been sought.

CDU will also develop a First Nations procurement policy and set achievable targets within this.

And it will seek to achieve a First Nations employment target of 8.8% for the construction phase and promote employment and supply chain opportunities.

As part of this project, CDU will seek to achieve First Nations employment of 80 full-time equivalent positions.

Another important project for my community financed by NAIF is the Darwin ship lift.

NAIF’s loan to the Northern Territory Government is for the construction of a new ship lift and associated marine infrastructure in Darwin harbour.

This project will consolidate Darwin’s position as a hub for marine maintenance and servicing in Northern Australia.

A loan of $300 million from NAIF will go to the Northern Territory Treasury Corporation towards the overall $400 million project cost.

The Northern Territory Government has committed to contributing to the remaining $100 million towards the project.

The ship lift will be situated on Northern Territory Government land in the East Arm precinct of Darwin harbour and will be operated by the Paspaley Group. 

It will be 103 metres long and will be able to lift vessels up to 5,000 tonnes in weight. 

The facility will include four wet berths and 20 hectares of hard stand area for repair and maintenance works.

These additional facilities will reinforce the city’s marine maintenance and servicing activities and create spinoff benefits for local businesses.

A statutory open access and pricing arrangement will ensure common-user access to the facility for all other vessel owners and operators in the region.

The Shiplift will be capable of servicing large vessels from industries including coastal shipping, offshore petroleum, fishing, pearling, Defence, and Border Force.

It will be used to lift vessels out of the water so they can be serviced, repaired, or stored, including for safety during cyclones.

Darwin harbour is the only functional deep-water harbour in Northern Australia.

It is the Fleet Base North guarding our northern approaches.

Without this facility, large vessels would need to travel around 10 days or more to be serviced elsewhere.

That is a tremendous waste of time, money, and fuel.

NAIF’s value add is to provide longer term funding and flexibility around the drawdown and repayment structure of the project.

Its $300 million investment is forecast to deliver economic diversification, job creation, new roles for highly skilled workers and new opportunities for NT businesses.

Finally, there is the Northern Territory airports project, which takes in upgrades for Darwin, Tennant Creek, and Alice Springs airports.

NAIF’s loan will help expand airport facilities at these airports and support the development of the Territory’s export potential, particularly for agricultural products.

The project investments will increase the operational capacity of each airport, create jobs, drive new export opportunities into Asian markets, boost the Northern Territory’s tourism potential, and support energy security for businesses and residents in the north.

It will improve freight, cold storage, and an export/ import hub at Darwin International Airport.

Solar arrays will be installed at all three airports.

There is also a proposal for multi-user battery storage in Darwin.

The Alice Springs airport runway, taxiways and apron will also be resurfaced, with the installation of new runway lighting.

As well as the infrastructure investments, these projects are local job creators in the construction phase and beyond.

The NAIF is forecast to create 10,323 jobs in Northern Australia, 3,160 of those in the Northern Territory.

Over 730 jobs will be created by the CDU project.

271 jobs will be at Humpty Doo Barramundi farm.

196 jobs will be at the Hudson Creek Power Station and Batchelor Solar Farm in Darwin.

And 80 jobs will be created in the Arnhem Land Progress Aboriginal Corporation.

And many more besides.

These are transformational projects for Darwin and for the Northern Territory.

And there are many more valuable projects being supported by the NAIF in Queensland and Western Australia.

Deputy Speaker, the Northern Australia Infrastructure Facility has come a very long way in the years since its inception.

Committing $3.5 billion at an average of $1.1 billion a year for 20 projects contractually closed is a strong track record.

I am proud of the NAIF’s achievements, even as we still have a lot of work to do to deliver contracts and draw down funds.

Which is why this Bill is so important.

Because it clears the way for the NAIF to keep financing hospitals, universities, silicon fertiliser mining projects, salt processing plants, power stations, solar projects, airports, and so much more across Northern Australia.

This Bill extends the NAIF’s ability to provide financial assistance to the States and Territories for the development of Northern Australia’s economic infrastructure.

It achieves this by increasing the NAIF’s appropriation from $5 billion to $7 billion.

The additional $2 billion will enhance the NAIF’s capacity to provide financial assistance to businesses and communities in Northern Australia.

And it reaffirms this Government’s commitment to developing the North.

Continued investment in the NAIF will make a significant contribution to our national objectives, including action on climate change and implementation of the Uluru Statement from the Heart in full.

As a member of the Joint Standing Committee on the National Capital and External Territories, I’m also delighted that the Bill amends the definition of ‘Northern Australia’ to include Christmas Island and the Cocos (Keeling) Islands, collectively known as the Indian Ocean Territories.

Redefining Northern Australia to include Christmas Island and the Cocos (Keeling) Islands will empower the NAIF to provide financial assistance for the development of economic infrastructure in the Indian Ocean Territories.

And that will enable local businesses to diversify and create jobs.

This is a big deal that goes to this Government’s core principle of ‘No One Left Behind, No One Held Back’.

Finally, the Bill clarifies that the objectives of the Act include the provision of financial assistance for the development of Northern Australia economic infrastructure for the benefit of First Nations people.

This Government is strongly committed to improving economic outcomes for First Nations Australians.

I commend this Bill to the House and would urge that it be considered by 30 June to minimise the risk that the NAIF will fully commit its appropriation before the additional $2 billion has been legislated.

Thanks Deputy Speaker.