3 years ago
NAIF TO TAKE 150 YEARS TO SPEND $5 BILLION
Murray Watt MP
New figures released to a Senate inquiry reveal that the Morrison Government will take nearly 150 years to spend the $5 billion war chest held by its failed Northern Australia Infrastructure Fund (NAIF).
No wonder the north has nicknamed the NAIF the “No Actual Infrastructure Fund”.
In total, only $169.2 million, or 3.4% of the NAIF’s $5 billion, has been released for projects across Northern Australia. This equates to less than $34 million in spending for each of the NAIF’s five years.
This slow trickle of funds is shocking. An analysis of the NAIF’s annual reports and Questions on Notice shows that over $33 million, nearly the same amount released for projects yearly, been spent on executive and staff salaries, office space, travel for board directors, advertising and more over the duration of the NAIF.
This is yet another example of the Morrison Government promising a lot and delivering little.
At a time when the north is crying out for jobs, it is a disgrace that the Morrison Government keeps sitting on this $5 billion war chest.
The NAIF has found it much easier to spend public funds on cushy jobs and travel perks. In the 2018-19 financial year alone, the NAIF board approved over $1.9 million for bonuses for “key management personnel” and senior executives, board travel costs and highly paid consultants.
More than five years after it was launched, only $1.7 million, or 0.034% of the NAIF’s $5 billion budget has been spent in Queensland, on only project. No funds have been released for Queensland projects in at least six months.
This means the NAIF has spent more on bonuses, travel and consultants than it has spent on projects in Queensland.
Shockingly, the Senate inquiry also revealed that:
No wonder the north has nicknamed the NAIF the “No Actual Infrastructure Fund”.
In total, only $169.2 million, or 3.4% of the NAIF’s $5 billion, has been released for projects across Northern Australia. This equates to less than $34 million in spending for each of the NAIF’s five years.
This slow trickle of funds is shocking. An analysis of the NAIF’s annual reports and Questions on Notice shows that over $33 million, nearly the same amount released for projects yearly, been spent on executive and staff salaries, office space, travel for board directors, advertising and more over the duration of the NAIF.
This is yet another example of the Morrison Government promising a lot and delivering little.
At a time when the north is crying out for jobs, it is a disgrace that the Morrison Government keeps sitting on this $5 billion war chest.
The NAIF has found it much easier to spend public funds on cushy jobs and travel perks. In the 2018-19 financial year alone, the NAIF board approved over $1.9 million for bonuses for “key management personnel” and senior executives, board travel costs and highly paid consultants.
More than five years after it was launched, only $1.7 million, or 0.034% of the NAIF’s $5 billion budget has been spent in Queensland, on only project. No funds have been released for Queensland projects in at least six months.
This means the NAIF has spent more on bonuses, travel and consultants than it has spent on projects in Queensland.
Shockingly, the Senate inquiry also revealed that:
- NAIF executive bonuses are not linked to the amount of funds actually released. There is no financial incentive whatsoever to get money out the door.
- The NAIF is not interested in financing smaller aquaculture, tourism and other projects that have potential to create jobs across Northern Australia.
- The Morrison Government is reconsidering whether the NAIF is even “fit for purpose” for the needs of Northern Australia.
The NAIF has been allowed to flounder under a succession of Ministers for Northern Australia. Now more than ever, we need a functioning infrastructure fund for the north.
The NAIF could play a key role in rebuilding the Northern Australia economy following COVID-19. But it’s up to the new Minister, Keith Pitt, to make changes to the NAIF immediately.
The NAIF’s funds have been locked up for far too long. The north cannot wait any longer.