Hon Kevin Anderson MP 

State of the State address - 24 July 2024 

Tamworth Business Chamber 

Tamworth continues to track very well – there is strong regional growth and economic development occurring and I believe there is a real confidence in our region. 

Construction continues to be strong, both in commercial development and domestic housing – we are seeing businesses invest in upsizing locally and new businesses taking a punt and starting up or moving here. 

The confidence in our region is has been built off the back of private and government investment – and over the last few years, the primary goal of our government’s investment was to promote economic growth through public infrastructure – hospitals, roads, schools, emergency services, transport, communications and so on – that’s part of sending a clear signal to industry and business that there is confidence in relation to economic growth and regional development. 

We have seen that over the last couple of years - Tamworth has been solid - and there has been plenty of investment - that infrastructure pipeline has been flowing: Like the combined $100m in funding to develop the Global Gateway Park - governments should be the enabler and then private investment follows - like the $35M for the West Tamworth to Westdale railway line upgrade, that enabled private investment to run freight trains to our city - and its great to see Sean Hovey from QUBE her today - we'll a little more about that later. 

At last year’s state of the state update - I flagged that this Labor government had set a precedent in 2023 of cutting back hard on capital expenditure - and unfortunately for regional NSW that's what we are seeing now. 

There has been nothing new entering the infrastructure  pipeline - so my fear is that in 3 to 4 years - we will fall off a cliff.  That's a real concern because locally we have a strategy for growth - and we are on that path now. Significant subdivision and housing developments - at Moore Creek there will be 10,000 people in a few years - and the Acacia development - our commercial construction sector is strong - with massive sheds and warehouses being constructed - plans for a new supermarket complex on Goonoo Goonoo.

This 2024/25 Labor state government budget clearly has ignored regional NSW by not creating new investment opportunities and promoting regional growth and economic development for businesses.   

There was nothing new - the Labor government is city centric and is using a litany of excuses as to why Regional NSW is not being supported  - the federal governments GST cash grab - blow outs on metro projects - and a budget black hole -  its a furphy to blame the federal government's GST cash grab of 11b in GST - that was proven wrong  - it's not the 11b Labor claimed its $6.2B.  but some creative accounting will make up for some of that shortfall with increases in other areas like land tax revenue, transfer duty revenue, and mining royalties. 

The real story is money has been siphoned out of regional NSW to pay for wages - the Labor government has overcommitted to some and not to others - we are seeing that starting to play out now - and that affects us - particularly in the construction industry.     

We are not feeling that pain of a lack of investment just yet - but it is clearly on the horizon and we need to be prepared for it. 

That's why it was critical that we locked away those capital works investment funds in 21/22 and 22/23 years - that’s the work your seeing now - its currently sustaining the capital works program and will continue despite the change in political landscape in 2023. These projects are the ones that meets the needs of our progressive city. 
 

HEALTH 

In the health space, we know we have major infrastructure upgrades with the $58 million Tamworth Mental Health Unit, the $53 million Gunnedah Hospital, a new $21 million standalone palliative care unit, and the new PET scan in the cancer centre to sit alongside our MRI. 

We worked hard for those projects, and they’re locked in and underway. 

I’m now looking at what’s next, and the next thing we need as a priority is a drug and alcohol detoxification unit, coupled with greater access to rehabilitation.

 

ROADS 

In the roads space, funding for the Goonoo Goonoo Road project has been retained in this budget. It’s the gateway to Tamworth and I want to see shovels hit the ground as soon as possible.  

The funding for Port Stephens Cutting is also still there, and it will be great to see that project get underway soon. 

I want to see funds like the former government’s $543 million Fixing Country Roads and the $500 million Fixing Country Bridges program returned – these are programs that attracted significant funding to our councils, and I want to see them return as soon as possible. 

 

Transport 

We need investment in our transport networks because it unlocks opportunities for business and manufacturing. 

That’s why we invested $35 million to reactivate the West Tamworth to Westdale rail line, which attracted an $8 million investment from Qube and means our business community have access to the ports by rail.  

The economic multiplier effect for our region is huge and I’m looking forward to seeing that continue to develop over the coming years. 
 

Flight College 

The dream for Tamworth is that we have transport options by road, by rail and by air and there’s more work to do to activate our airport. 

It will come, but in the meantime, it’s great we have been able to welcome the first cohort of Sydney Flight College students to Tamworth. 

Just last week, I was at the airport to meet future pilots from Sydney, Melbourne Armidale, and everywhere in between – it’s a great thing for Tamworth. 
 

Education 

We also need a strong plan for public education infrastructure in Tamworth and I’ve been pushing for a new school for our city. 

The Moore Creek area of Tamworth will soon be home to around 10,000 people, almost the population of Gunnedah, so it makes good sense for the government to be investigating and investing in a school for that area. 

That community cannot go without essential public infrastructure and a school is at the top of the list when it comes to need. 

 

Water security 

Water security also continues to be at the top of the list in relation to our needs. 

We know the state and federal governments have walked away from water security for Tamworth, but I’m continuing to hold them to account and advocate for my plan for water security. 

Part of that plan is the industrial water recycling facility and We were able to secure $6 million for a business case for that plant which will take our abattoirs off the main supply. 

Baida are now going it alone and building their own facility independent of the other abattoirs. 

That means the plan has to change, but I recently received assurances from the water minister that the government remain committed to seeing this project through.

We also need to be smarter with how we use our water. We need to ensure that water use meets community expectation and I know it maddens people to see potable water used on lawns, parks and gardens. We should be recycling our water and using it for those green spaces.  

We also need to be vigilant and ensure we protect our supply in Chaffey and Dungowan dams through the drier times.  

We need to be innovative in our solutions to water, particularly if we want to grow our population, and grow our industry, and industrial water recycling is a great first step on that journey. 
 

Housing 

As we grow, we of course need to continue to ensure housing development continues.  

We are fortunately that private investment in housing in Tamworth remains strong. I’ve already mentioned the development in Moore Creek, and more will come with Acacia in the coming years. 

Now it’s time for the government to step in and fill the gap in social and affordable housing investment. 

There’s been a lot of talk from the government about housing, primarily based around Sydney, but we need it here too. 

The centrepiece of this budget was a $5.1 billion commitment to build 8,400 public homes, which is great, but we don’t yet know where those homes will be. 

When I was crown Lands Minister, I oversaw the signing of an MOU with the local council and local aboriginal lands council to explore opportunities to utilise Crown Lands for housing. 

We have abundant lots of crown lands across our city, and we should be using it to address our housing shortage. 

Work is underway on that proposal now, and I want the government’s $5.1 billion investment into housing to feed into those plans. 
 

Renewables concerns 

Part of our future economy will no doubt be investment in renewables. It’s happening and it is an opportunity for us. 

We do need to be responsible in the rollout though and I’m working with communities right across the region to ensure we are getting the right development for our region. 

There are farming communities across the region who are in deep opposition to these projects and they have a right to be hears. 

I’ve been calling on the government’s transmission projects to be shifted on to public land to avoid the land use conflict issues they’ve been experiencing. 

EnergyCo are finally listening to us and investigating an alternative route. It’s my hope that they take up this option. 

We have to get the balance right when it comes to the renewable transition, and I’m committed to ensuring that happens. 
 

Mining  

Part of getting the balance right when it comes to the energy transition is recognising the significant role mining continues to play in our region. 
We have major mining operations to the West of Tamworth around the Gunnedah area.
Not only do these mines provide well-paid job opportunities for our locals here in Tamworth, they also directly benefit our business community. 

Mining-associated businesses are thriving in Tamworth and Gunnedah thanks to a strong mining industry.
 

Community safety 

One of my biggest concerns for our region continues to be crime. 

We’re seeing unprecedented levels of youth crime across Australia and it’s affecting us too. 

There’s no doubt we need more boots on the ground in Tamworth and Gunnedah, and I also want to see a division of PolAir be based at Tamworth Airport. 

We also need bail reform to ensure the criminal justice system is working to the community’s benefit and their expectation. 

Finally, we need much greater investment in youth diversionary programs to ensure those who can be steered onto the right path have every opportunity to do so. 

This is a comprehensive plan to get on top of the issue and I’ve been working with police, the local aboriginal lands council and justice groups to fix the issue. 

 

What’s next for business 

In addition to investing in our infrastructure and addressing the regions concerns, my focus is continuing to cut the red tape for business. 

Payroll tax reform, such as the introduction of zonal tax would incentivise our local business community to grow, and to employ more people, removing an inhibitor to growth and ensuring our continues economic development. 

This reform coupled with continued investment in our transport networks would place us in a very good position economically and make us an incredibly attractive place to invest.  

But we also need to recognise that our business community is also struggling with ongoing labour shortages. 

Many businesses in our region are incredibly innovative when it comes to attracting staff. Going as far as travelling overseas to find skilled workers or buying accommodation in Tamworth to house those workers. 

I’ve heard the frustrations of our local business community who are throwing everything at trying to boost their staffing levels without success. 

We need state and Federal governments to work together to solve these issues. 

I’ve also heard the frustrations of those who have had to deal with TAFE. WE have good people and extremely experienced teachers working at our TAFE locally, but their hands are tied behind their backs in a system that just isn’t meeting the needs of local businesses. 

It’s not acceptable that we have businesses sending apprentices to Newcastle and Sydney to gain the skills they need to do the job, and we need that changed. 

We need local control, back in our region, so that employers like you have someone to call when you’re looking at your 5-10 year plans and what staff you’ll need tomorrow. 

I’ve been working with the Minister for TAFE on our local issues, and my views will become part of a final review into the sector, due to be released very soon. 

Meanwhile, I’m working with our regional hospitality industry to see what can be done to support them. 

As the former Minister for hospitality, and current shadow Minister for Hospitality, I recognise that the industry really is at the front line of the staffing shortage issues industry is facing. 

That’s why I’ve been working with the Australian Hotels Association to call on the Federal Government to reform the Working Holiday Maker Program to ensure it is meeting the needs of rural communities like ours. 

As it stands, hospitality and tourism are the only industries where workers must work in remote or very remote NSW to complete their specified 88-day work requirement. 

That places an unnecessary handicap on hospitality providers in a place like Tamworth and sees them sending their workers west for three months to meet requirements. 

We need change, even if it’s on a temporary basis, to support the local hospitality industry through these difficult times. 
 

Other issues 

Cost of living continues to be a concern in our communities. 

We need incentives to get our kids off their screens and into healthy and active lifestyles, particularly during the school holidays. 

This government has slashed cost of living relief, and support for families. 

Vouchers that made a difference like Active Kids – slashed, creative kids – slashed, first lap – slashed, energy relief – slashed, back to school vouchers – slashed, the regional seniors travel card – slashed. 

If the government was serious about addressing cost of living pressures on those most vulnerable in our communities, they would reverse these cuts tomorrow. 

 

In Summary 

In summary, we need more than ever to stand up and remind the Labor Government that Regional NSW is alive and well – despite them ignoring us.  

We need more than to show them how important regional growth and economic development is to the prosperity of NSW as a whole.  

Labor has reinstated their definition of NSW.  

Newcastle Sydney and Wollongong – we need to continue to pressure them to shift the dial on that definition. 

Its critical that we plan and get funding for the next round major regional infrastructure projects.    

We are fortunate to have a strong pipeline of public infrastructure investment continuing, after we did the planning work and locked away the funding prior to the last election. 

My biggest concern is what’s next and I’ll work with whoever it takes to ensure we are not forgotten.   

We cannot afford for public infrastructure spending to fall off a cliff in two or three years time, and I’m working to ensure that doesn’t happen. 

I know our region is moving forward thanks to progressive ideas and confidence from our business community. 

There’s confidence and  a sense of positivity in our region – we need to ensure that continues.  

I thank the chamber for the important role you play in driving our region forward.