A CONVERSATION on May 12 delivered a knock-out blow to Greater Taree City Council and Manning Valley Business Chamber in their fight to secure $7.5 million from the State Government for The Northern Gateway Project.
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The bare bones of the conversation between council's general manager Gerard José and senior officers from the Department of Trade and Investment was that "the maximum the State would fund is $1.7 million" towards project.
One week later State member for Myall Lakes, Stephen Bromhead delivered the same advice to councillors at a meeting on May 21, that "the NSW Trade and Investment Department does not have funding capacity to contribute $7.5 million to the Northern Gateway Project. He also indicated that he understood that the maximum any project has received is $1 million in total."
Today, Wednesday, councillors will rally together at council chambers at 3.30pm to attend an extraordinary meeting of council to determine how to proceed with the project and the impact of the advice on council's capacity to secure $10 million in federal government funding for the project.
Council's access to the $10 million was contingent on securing $7.5 million from the State government. According to Mr José, no formal response from the department has been provided to council but "the State has applied a cost benefit analysis based on the number of jobs created by the project, which equates to a formulated dollar contribution, and has advised that the Northern Gateway Project does not realise a contribution of $7.5 million."
The deadline for finalising the scope, milestones and signing of the Commonwealth Funding Agreement is June 23.
The purpose of the extraordinary meeting is for councillors to decide a course of action in relation to the Northern Gateway Project.
Up for discussion will be whether council continue to advocate for $7.5 million from the State government or seek to transfer the $10 million from the Northern Gateway Project to council's roads and bridges infrastructure package, which includes
Dyers Crossing and Dickensen Bridges and section of Manning Point and Gloucester Roads.
The controversial idea was raised by federal member for Lyne, David Gillespie in January and May this year, with Dr Gillespie indicating strong support for the proposal and drawing it to the attention of Deputy Prime Minister and Minister for Infrastructure and Regional Development, Warren Truss.
However, Mr Bromhead contends council should consider staging the project and says "it's not all doom and gloom".
"I think it's fantastic that they (council) are providing evidence. I think it's fantastic that the evidence has been accepted. I think it's fantastic that it means we are going to get something, I think it's fantastic that this could be the first stage of something really exciting," Mr Bromhead said.
"It's not all doom and gloom. Two months ago it was doom and gloom, but now there is a light at the end of the tunnel, we are going to get something. If stage one produces 100 to 150 jobs, then fantastic.
"You have to remember that originally it was a $38.5 million project that they were going to do, they have reduced that down.
"Maybe they could reduce it down some more and get the really essential infrastructure in place. Maybe not do the roundabout over the Pacific Highway straight away, not duplicate the Dawson River Bridge straight away, not do the road around the back of Cundletown straight away, look at construction of the roundabout where the industrial estate is to be - get those things in there, but that is up to council."
About the project
THE Northern Gateway Project would involve:
o the construction of a freight distribution terminal
o an upgrade to the entry/exit into Cundletown off the Pacific Highway
o a new four-lane road north of Cundletown residences to the airport roundabout
o a duplicated Dawson River Bridge
At the Manning Valley Business Chamber Gateway for Growth conference and exhibition in March, it was revealed the project would create between 500 and 600 full-time jobs over a three-year period and inject an additional $200 million into our local economy.
Organisers also cited additional community benefits such as removing heavy vehicles from the local road network, the creation of dual carriageway access to the Taree central business district, the creation of an additional entrance to Taree, the potential for council to earn ongoing revenue and it would create a competitive edge for the region for the growing demand for freight on the east coast.