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 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 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 1.1 billion have been invested in Western Australia, 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 300 million investment in the Darwin shiplift.

As well as 151.5 million for Charles Darwin University.

As well as 24.2 million to expand Humpty Doo Barramundi farm.

Altogether, the NAIF is forecast to provide 151.5 million towards the overall project.

The NAIF loan will support a project worth 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 300 million from NAIF will go to the Northern Territory Treasury Corporation towards the overall 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 3.5 billion at an average of 5 billion to 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.