Dean Smith (WA, Liberal Party) | Link to this | Hansard source

My question is to the Minister representing the Minister for Resources and Northern Australia, Senator McKenzie. The success of the Northern Australia Infrastructure Facility fund demonstrates the Liberal and Nationals government's enormous commitment to regional and northern Australia.

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source

You are kidding! The success of the NAIF?

Scott Ryan (President) | Link to this | Hansard source

Order! I asked a senator on my left to start their question again the other day because I missed parts of it due to interjections on my right. I am going to ask Senator Smith to start his question again, and start the clock again, because I couldn't hear part of the question.

Dean Smith (WA, Liberal Party) | Link to this | Hansard source

Senator Watt might just like to wait for the answer. My question is to the Minister representing the Minister for Resources and Northern Australia, Senator McKenzie. The success of the Northern Australia Infrastructure Facility fund demonstrates the Liberal and Nationals government's enormous commitment to regional and northern Australia. Can the minister outline to the Senate this afternoon recent developments from the Northern Australia Infrastructure Facility fund, and how a strong budget will help create jobs and investment in my home state of Western Australia?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

Thank you, Senator Smith, for your question, and for your very proud advocacy of your home state and northern Australia. To date, the NAIF has committed $1.4 billion in investment across northern Australia, supporting projects which are forecast to create more than 4,000 jobs and $3 billion in public benefits. NAIF has now approved loans to six projects in WA to a total of $307.8 million. More than 1,300 jobs will be created across these projects during construction and operation.

I'm pleased to announce that the Australian Aboriginal Mining Corporation has today secured a Northern Australia Infrastructure Facility loan to develop its first iron ore mining project 80 kilometres north-west of Newman. This $12.5 million loan from the NAIF will help fund the nation's first substantially Indigenous owned and operated iron ore mine, a project that will support hundreds of jobs in the Pilbara. This project will create more than 120 new jobs during construction and will support around another 120 ongoing jobs during its operations.

As Australia's first substantially Indigenous owned and operated iron ore mine, First Iron will also offer the region's Aboriginal community significant employment opportunities. The project will provide iron ore to Fortescue mining group's Cloudbreak operations, with the first delivery of ore expected to happen by mid-next year. It's projected to run for at least five years, producing between two million and three million wet tonnes of iron ore each year.

The NAIF loan will help to build a range of new supporting infrastructure, including accommodation, a bore field, a crushing plant, and a 55-kilometre haul road to connect Great Northern Highway to the Cloudbreak mine. It's a significant project to demonstrate the NAIF's vital role in delivering infrastructure, creating jobs and boosting the economy right across northern Australia.

Scott Ryan (President) | Link to this | Hansard source

Senator Smith, a supplementary question?

Dean Smith (WA, Liberal Party) | Link to this | Hansard source

Senator Watt's gone quiet! Can the minister outline to the Senate how stability and certainty in northern Australia infrastructure is helping build a stronger economy for the north of Western Australia?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

Thank you, Senator Smith. The Northern Australia Infrastructure Facility board has made a total of 13 investment decisions and two conditional credit approvals. Of those investment decisions, six have been in WA, and 13 projects in WA are going through due diligence.

The Northern Australia Infrastructure Facility has approved $308 million in loans for WA, including the $74 million loan comprised of two components for the Beyondie sulphate of potash project, the $95 million loan to Sheffield Resources, and the $16.8 million for Onslow Marine Support Base to widen and deepen the channel and extend and expand the wharf. Mid-last year, the Liberal-National government amended the NAIF investment mandate to increase its flexibility, facilitating acceleration of investment decisions, and improve its potential to support projects to deliver more jobs and economic opportunities across northern Australia. Of the investment decisions made— (Time expired)

Scott Ryan (President) | Link to this | Hansard source

Senator Smith, a final supplementary question?

Dean Smith (WA, Liberal Party) | Link to this | Hansard source

Can the minister advise the Senate what the Liberal-National government is doing to build a stronger economy, deliver better roads, and create real jobs across all of regional and rural Western Australia?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

The Liberal-National government has committed more than $6.8 billion to fund land transport infrastructure projects in WA over the next 10 years. This includes $682 million to complete the remaining two stages of the Bunbury Outer Ring Road, and $140 million towards the Albany Ring Road. These commitments will divert heavy vehicle traffic away from the city centre, which will improve freight productivity and amenity for those regional centres.

It also includes $535 million for key upgrades in WA under the ROSI, the Roads of Strategic Importance program. These projects will upgrade key commuter and freight corridors across Australia, improving connectivity for regional communities and industries. In WA these projects include the Newman to Katherine corridor, the Alice Springs to Halls Creek corridor and the Karratha to Tom Price corridor. The Liberal-National government has also committed $171.8 million for road projects under the Northern Australia Roads Program in WA. These projects include a whole lot of stuff. (Time expired)

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source

My question is also to the Minister representing the Minister for Resources and Northern Australia, Senator McKenzie. I refer to the government's flagship Northern Australia Infrastructure Facility, which was announced in June 2015—two prime ministers ago. Four years on, how much of this $5 billion fund has actually been drawn down to support new infrastructure in northern Australia? How many projects have actually drawn down and received funding from the NAIF, four years on?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

I have about 20 folders here today. As I said earlier, Senator Watt, the NAIF has got 13 projects underway, including the projects I spoke about to Senator Smith earlier. We've made 13 investment decisions and one conditional credit report. The total investment of the NAIF's value is now approximately $1.4 billion, supporting projects with an estimated total capital value of $2.8 billion, including those getting conditional approval. Investment decisions are for three projects in the Northern Territory, six in WA, and four in your home state of Queensland, Senator Watt. That is $781 million for Queensland, $184 million for the Northern Territory and $307 million for Western Australia.

Senator Watt interjecting—

Scott Ryan (President) | Link to this | Hansard source

Senator Cormann, on a point of order?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source

Mr President, I know it's the last Thursday in a sitting fortnight, but interjections are disorderly, and Senator Watt is a repeat offender. I ask you to call him to order.

Scott Ryan (President) | Link to this | Hansard source

Senator Watt, I will ask you to cease interjecting on your own question. You have two supplementaries afterwards to follow up.

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

Combined, the three investment decisions are forecast to generate around $2.55 billion in public benefit across northern Australia, which includes a forecast of over 3,700 jobs, both in construction and during operations. Drawdowns have commenced for three projects. As at 27 August 2019, the department has made total payments of $41.8 million, comprised of $15.7 million for the Onslow Marine Support Base project, $23.5 million to the Voyages Indigenous Tourism Australia project, and $2.598 million to the Humpty Doo Barramundi project. As you can see, not only is the NAIF, under its renewed mandate, approving projects thoroughly—13, as I said—but it's also ensuring that the money gets out the door and that these vital projects get started, providing much-needed construction jobs and jobs in ongoing operations.

Scott Ryan (President) | Link to this | Hansard source

Senator Watt, a supplementary question?

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source

I thank the minister for admitting that, after four years, only about $40 million has actually been released by the NAIF—an average of less than around $10 million per year. Is the minister concerned that at this rate it will take her 500 years to distribute the NAIF's total funding of $5 billion? Is this why, across northern Australia, people refer to the NAIF as the 'No Actual Infrastructure Fund'?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

I am absolutely confident that under its renewed mandate, as I outlined in my answer to Senator Smith, by increasing the flexibility et cetera of the NAIF when it's considering projects that come before it we will be seeing faster approval times for projects that are identified and, as those contracts are being negotiated with proponents, the money will start rolling out. But we're not just going to throw the money out. We are not going to give money to anybody that rocks up to the NAIF with some brainstorm of an idea, some far-fetched fantasy off the coast of Darwin or Cairns or something. We set up a process so these projects can be assessed appropriately so that taxpayers' dollars can be spent appropriately to deliver much-needed jobs and economic stimulus to northern Australia.

Scott Ryan (President) | Link to this | Hansard source

Senator Watt, a final supplementary question?

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source

Nearly one year ago Minister Canavan said that Queensland was 'poised to generate huge benefit from the NAIF'. Can the minister confirm that not one project in my home state of Queensland has actually received funding from the NAIF?

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

There is the Townsville Airport redevelopment project: on 8 January 2019, the NAIF made an investment decision for a loan of up to $50 million for the Townsville Airport Upgrade Project. The project includes substantial refurbishment to the terminal, more aircraft parking, better road access and an upgrade to core infrastructure as part of—

Scott Ryan (President) | Link to this | Hansard source

Order! Senator Watt on a point of order.

Murray Watt (Queensland, Australian Labor Party, Shadow Minister for Northern Australia) | Link to this | Hansard source

On relevance: the question was about projects receiving funding, not being approved for funding.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source

On the point of order, I think that Senator McKenzie was being incredibly helpful. I would commend to you, Mr President, that you rule the minister is being directly relevant to the question as it was asked by Senator Watt.

Scott Ryan (President) | Link to this | Hansard source

I can't instruct the minister how to answer a question. The minister was being directly relevant. If the person asking the question does not like it they have an opportunity after question time to debate it. That is a matter for debate, I do not think it is a matter of direct relevance.

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

As I said, there are 13 projects. Several in the senator's home state of Queensland have been approved, and the process—

Senator Watt interjecting—

Scott Ryan (President) | Link to this | Hansard source

Senator Cormann, on a point of order.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) | Link to this | Hansard source

I am committed to training Senator Watt into compliance with the standing orders! Under standing orders it is disorderly to interject and I would ask you to call him to order, Mr President.

Scott Ryan (President) | Link to this | Hansard source

Senator Watt, you've been particularly voluble this week. I'm going to ask you to attempt to restrain your passions for the next 4½ minutes.

Bridget McKenzie (Victoria, National Party, Minister for Agriculture) | Link to this | Hansard source

So we have the Townsville Airport and also James Cook University. On 3 July a NAIF loan of up to $98 million was announced for a technology and innovation complex at James Cook University. The usual process would be that these proponents come forward with their projects and enter a process of negotiation with the NAIF to make sure that we can tick off with confidence that taxpayer dollars are not going to be wasted on these projects. So they're going through that process— (Time expired)