The mining lobby has told the Baird Government it must spend more than the “paltry” 4 per cent of royalties it returns to mining-affected regions such as the Illawarra.
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In a pre-budget shot the NSW Minerals Council has criticised the Government for only returning four per cent of the $5.4 billion it has received in royalties over the past four years, to the regions which host the mines.
The Resources for Regions scheme was designed to return royalties to mining regions, helping pay for roads and other infrastructure that took more punishment because of mining.
But spending has not met expectations and the Government has started funding its own projects, such as hospital expansions, through the scheme.
The Illawarra has been particularly short-changed by the Resources for Regions program, with only $4.5 million being spent in the region, out of almost $208 million spent since 2012. This was for a project to upgrade Cordeaux Rd and bridge.
“Given the NSW Government is spending up big on convention centres, light rail lines and road tunnels in Sydney, mining communities in the Hunter, Illawarra, Central West and other regions should also receive more funding for their infrastructure needs,” NSW Minerals Council chief executive Stephen Galilee said.
He called on the Government to “get serious” about spending outside of Sydney, citing the “paltry” amounts spent in mining regions.
“The mining regions of NSW deliver over $1 billion each year in mining royalties to the NSW Government, and they deserve greater support,” Mr Galilee said.
“On behalf of mining communities, we’re calling on the State Government to up its game in the June Budget and commit at least $60 million per year to the Resources for Regions program.”
The NSWMC’s pre-budget submission outlines its development priorities, including infrastructure funding, a greater focus on exploration activity and further planning reforms.
The Industry department was contacted for comment.