Madeleine King (Brand, Australian Labor Party, Minister for Northern Australia) Share this | Hansard source

I'd like to start by thanking members for their contribution to this debate on the Northern Australia Infrastructure Facility Amendment Bill 2026, particularly the Special Envoy for Defence, Veterans' Affairs and Northern Australia and the member for Solomon, my good friend Mr Gosling. We were elected in 2016. He has been a strong fighter for the north, and I thank him for his support.

I thank all members for their contributions. I note with sadness that of the 14 members of the Nationals in the chamber of the House of Representatives, only one was able to speak on the NAIF, and that was the former leader. I thank the former leader of the Nationals, the member for Maranoa, for his support of the Northern Australia Infrastructure Facility and also, of course, northern Australia. I was also elected at the same time as the member for Maranoa, and he's always been very productive in our discussions across a range of issues. I note only one member of the Liberal Party, the member for Durack, managed to speak on the Northern Australia Infrastructure Facility bill before the parliament. I note that a number of projects are in her electorate, and she is a regular at the opening of these projects that are very important to her community and indeed to the whole of Western Australia. Before I continue with my speech, I welcome the coalition's support for the bill before the parliament that was confirmed by the former leader of the National Party in the main chamber earlier this week, and I trust that nothing has changed with the new leadership in the coalition partner. No doubt I'll hear about that if it has.

The Australian government is committed to driving economic development in northern Australia in a stable, reliable and accountable way. The Northern Australia Infrastructure Facility Amendment Bill 2026 delivers practical and targeted updates to the Northern Australia Infrastructure Facility Act 2016. It ensures the Northern Australia Infrastructure Facility remains fit for purpose and capable of supporting transformational projects across the north well into the next decade. The amendments to the NAIF Act will extend NAIF's investment decision-making period for another decade, strengthen accountability for compliance with the investment mandate, establish joint responsibilities for the responsible ministers—myself and the Minister for Finance—in accordance with standard practice for the Commonwealth's specialist investment vehicles and it will refresh statutory review requirements to allow for two future reviews of the operation of the NAIF Act.

The continuation of NAIF's investment period through to 2036 responds directly to the findings of the statutory review of 2024. This will preserve NAIF's capacity to continue promoting transformational projects across northern Australia and provide long-term certainty to investors and communities. These projects create jobs and new economic opportunities for communities across the north. The amendments introduce new mechanisms requiring the NAIF board to notify the responsible ministers when NAIF or a subsidiary fails to comply with the investment mandate. These mechanisms empower the responsible ministers to direct corrective action where necessary while confirming their inadvertent noncompliance does not invalidate transactions. These measures align NAIF with other Commonwealth specialist investment vehicles and bolster its governance framework.

The bill updates several provisions to reflect contemporary governance arrangements by adding the Minister for Finance as a responsible minister. The addition of the finance minister to the ministerial responsibilities outlined in several places throughout the act will ensure an appropriate level of oversight and accountability and is consistent with arrangements for all of the Commonwealth's specialist investment vehicles. The bill also provides for two future reviews of the NAIF Act, after 30 June 2029 and 30 June 2034, ensuring structured and timely evaluation throughout the extended investment horizon of the NAIF. The second of these reviews will include consideration of whether the investment timeframe of the NAIF should again be extended.

This government is committed to transitioning Australia's energy sector to net zero by 2050 and the reduction of Australia's emissions by 43 per cent by 2030. NAIF has a key role in contributing to this objective. In 2023 I issued NAIF with a new investment mandate which includes a list of government policy priorities to which NAIF is expected to contribute through its investments. Among these is a priority to support sustainability, climate change and circular economy principles and solutions in northern Australia.

In relation to the bill, I want to draw one particular project to the attention of the House, and that is in relation to the Perdaman urea project under construction at the moment in Karratha in Western Australia. This is a really important project and a matter of important and critical national resilience in a time of conflict in the Middle East. It will provide important and stable supply chains for farmers into the future for all the agricultural industries and the work they do which is required to feed Australia and our regional neighbours. Importantly, the Perdaman urea project will decrease our dependency on the importation of urea for fertiliser. Urea is the nitrogen in NPK, and many of those in rural communities will understand what NPK fertiliser is—in fact, many gardeners would as well. It is really very important to the food and fibre that this nation creates. It will be Australia's largest urea plant. It will produce 2.3 million tonnes per annum. About half of that will be kept in Australia to ensure that we have that secure supply chain and that farmers have the fertiliser they need that will strengthen national food security and reduce reliance on imported fertilisers.

The Perdaman urea project is one of the largest downstream processing and manufacturing investments in Australian history, and it will solidify our supply chains. NAIF has supported a number of projects contributing to this: a $220 million loan to Perdaman to build this plant and kickstart the new multibillion-dollar fertiliser industry, a $160 million loan to the Pilbara Ports Authority for a new multi-user wharf and facilities at the Port of Dampier, and a $95 million loan to the Water Corporation of Western Australia for the expansion of the Burrup seawater supply and brine disposal scheme. This total $475 million federal commitment to the project and supporting infrastructure will see an estimated $8.5 billion in public benefit. It is a remarkable project. At a time where we are seeing constraints on the export of urea through the Strait of Hormuz in the Persian Gulf, knowing that this project will start production in March of next year will be very reassuring for Australian farmers into the future.

This bill strengthens the legislative foundation of the Northern Australia Infrastructure Facility. It enhances accountability and provides certainty to investors and project proponents. It ensures NAIF remains a reliable partner in delivering the long-term infrastructure necessary to grow northern Australia. It is a practical, measured and future focused package of reforms. It makes sure that a strong north will contribute to a very strong Australia. I thank all members once again for their contributions, and I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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