More on Northern Australia from AFR
Critics derided the creation of a Northern Australia minister as a bit of a joke, especially the appointment of urbane Melbourne-based MP Josh Frydenberg to the role.
But the ambitious Mr Frydenberg - who was promoted after last week's leadership purge despite backing Tony Abbott - is deadly serious about his plans to unlock the untapped potential of the Top End.
Mr Frydenberg, who also has taken on the Resources and Energy portfolio, said the federal government needed to take the lead in investing in roads, rail, ports and airports in Northern Australia to encourage the private sector to help open the region to capitalise on the fast-growing Asian middle class.
He said the details of the $5 billion Northern Australia fund - which will offer concessional loans to state and territory governments as well as the private sector - would be released shortly.
"We are not seeking to substitute the private sector because the private sector can fund projects themselves," Mr Frydenberg told AFR Weekend.
"But what we are hoping to do is complement the private sector as well as state and territory governments when there is a workable project to boost productivity. The government has the benefit of being able to borrow at a lower rate."
The concessional loans were one of the big-ticket items announced in the May budget but the lack of information about the the new initiative, which has been closely controlled by Treasury, has frustrated key stakeholders including the private sector and state and territory governments.
The Opposition derided the scheme as a last minute "thought bubble" of former treasurer Joe Hockey and prime minister Tony Abbott to pump up the Coalition's second budget, but Mr Frydenberg said criteria for projects were not too far off.
"We will have more to say on that shortly," he said. "The federal government is prepared to directly support projects which will add to the productive capacity of the north."
I can connect with northern Australians, minister says
Mr Frydenberg, a former political staffer turned investment banker and politician, rejected suggestions a Melbourne-based MP would not be able to connect with constituents in the Northern Territory, Queensland and Western Australia.
Northern Territory Chief Minister Adam Giles this week questioned Mr Frydenberg's appointment, but the new minister said he had spoken to Mr Giles and other stakeholders to show his commitment to the northern Australia cause.
The creation of a standalone portfolio by new Prime Minister Malcolm Turnbull has won over some, including Far North Queensland MP Warren Entsch who pushed hard for the Northern Australia White Paper.
But does the Member for Kooyong have a special affinity with the North?
"I have very good relationships with my colleagues in the north - I was up there a few weeks ago with Tony Abbott - and I'm passionate about driving this agenda," Mr Frydenberg said.
"There is a huge opportunity to capitalise on and hopefully my experience in the deregulation space as well as assistant treasury will be useful."
Mr Frydenberg earlier this week backed using Commonwealth projects to help kick-start resources projects in northern Australia, including a rail link to Adani's controversial $16.5 billion Carmichael mine in the Galilee Basin. He warned anti-coal activists could put future investment at risk.
But Mr Frydenberg on Friday said Northern Australia's untapped north also applied to agriculture, tourism, international education and medical research.
He said there was 180 key projects identified in the federal government's white paper, but he remained coy on whether taxpayer dollars should be used on projects such as casinos and abattoirs or whether there should be a special economic zone for the regions.
The former Abbott government in June pledged $1.2 billion in new money for roads and dams to help boost economic activity in the north.
Queensland Treasurer Curtis Pitt has been in discussions with the federal government regarding access to the $5 billion fund, given Queensland has been shut out of the $5 billion asset recycling fund after abandoning $37 billion in asset sales.The opening up of the Galilee Basin is a key priority for the first-term Palaszczuk government.
"It's our understanding that we'll need to compete with Western Australia and the Northern Territory for that funding also. But we need to work together to drive the economy forward and generate jobs," Mr Pitt said.
"It's time for the Commonwealth to stand up for Queenslanders and help us deliver the infrastructure North Queensland needs."
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