Dec. 9, 2013, 10:30 p.m.
THE NSW Auditor-General's latest report on the state's three ports makes interesting reading, particularly for Hunter people.
THE NSW Auditor-General's latest report on the state's three ports makes interesting reading, particularly for Hunter people.
The audit comes after the government has sold long leases over Port Botany and Port Kembla to the private sector, and is proposing to privatise Newcastle too.
According to the report, Sydney Ports Corporation turned a profit of $2.1 billion, returning a dividend of $33.7 million to the government. The government also earned a one-off $3.5 billion from selling the Port Botany lease.
Port Kembla made a loss of $14.1 million - hence paid no dividend at all - but the sale of its lease earned the government a one-off $690 million.
As for Newcastle, the Auditor-General found its profit was $22.8 million, of which $15.4 million was shipped straight to the government in Sydney as a dividend.
While it is hard to compare these figures since the sale, the proportion of Newcastle's profits paid as a dividend (about 68 per cent) is fascinating to note alongside the much smaller proportion paid by Sydney Ports (about 1.6 per cent).
The Auditor-General also notes that the government plans to spend the $4.2 billion proceeds of the two lease sales on its Restart NSW program, with Sydney's $11 billion Westconnex motorway the major recipient of funds.
About $100 million will be spent on infrastructure projects in the Illawarra region (where Port Kembla is) and some funds will be allocated to repair decrepit bridges around the state.
The government had promised that the proceeds of the Sydney and Illawarra port sales would fund a Resources for the Regions program worth $160 million over four years, but only about $10 million has been allocated so far from this source.
Newcastle Port Corporation had a bumper year, according to the report, exceeding all targets and looking like a ripe plum for private investors. Expressions of interest closed yesterday, with speculation rife over possible contenders.
Speculation suggests a price of about $1 billion, with $350 million earmarked to remain in the Hunter. The report says the government will use the Newcastle lease sale proceeds to "fund the revitalisation of central Newcastle and priority infrastructure across NSW".
If, as seems likely, the total net proceeds of the port privatisations top about $5 billion, applying the standard 10 per cent yardstick - that recognises the Hunter's portion of state population - should yield no less than $500 million.
Ensuring that occurs will be a good task for the new Minister for the Hunter, George Souris.
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