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Newcastle Herald
Newcastle Herald
National
Michael Parris

Labor promises $100m a year in coal royalties to mining communities

FUNDING PROMISE: Jeff Drayton and Jodi McKay address the media after Sunday's Labor campaign launch in Singleton. Picture: Max Mason-Hubers

A Labor government would return at least $100 million a year in coal royalties to mining-affected communities under its main pitch to voters before Saturday's Upper Hunter by-election.

Opposition leader Jodi McKay and by-election candidate Jeff Drayton announced the policy at a campaign launch on Sunday.

"Our region's being dudded, and it's being dudded big-time," Mr Drayton told the party faithful at Club Singleton.

The mines around Singleton and Muswellbrook account for more than half the estimated $1.5 billion the government receives each year in coal royalties.

The O'Farrell government set up the Resources for Regions program in 2012 offering grants to 24 councils in mine-affected communities, including Singleton, Muswellbrook, Newcastle, Lake Macquarie, Cessnock, Maitland and Upper Hunter.

What the voters are saying

The program has allocated $345 million, including $50 million last year and $26 million the year before, but Labor has promised to up the spend to a minimum of $100 million a year.

Singleton received $4.57 million last year under the program, including $500,000 for a grandstand at Singleton Rugby Club, $560,000 for a footpath at Broke, $299,000 for Wonnarua Healing Centre and $600,000 to upgrade Hamiltons Crossing Road causeway.

Muswellbrook Council received $2.85 million for its entertainment and conference centre precinct and $900,000 for two STEM education projects.

The government has allocated $75 million to Resources for Regions this year.

TURNING UP THE HEAT: A Labor campaign sign on the New England Highway outside Muswellbrook on Sunday. Picture: Max Mason-Hubers

It said last month that it also would set aside another $25 million each year in a fund to help communities facing mine closures.

Labor would be in a position to direct more royalties to Upper Hunter and other coal communities only if it won power in 2023, but Sunday's announcement could put pressure on the Liberal-National government to match the promise.

Ms McKay said the Upper Hunter, where mining dominates employment more than in any other area of the state, could expect to "do very well" out of a beefed-up fund under Labor.

"It contributes such a huge amount to the state's coffers, and it should be able to benefit from that," she said.

Ms McKay, who is facing questions about her leadership if Labor loses, said the party had a "huge mountain to climb" to win a seat the Nationals had never lost.

She hinted that Mr Drayton would announce on Monday a promise to upgrade Singleton fire station.

CAMPAIGNING: Pauline Hanson with One Nation candidate Dale McNamara in Muswellbrook on Sunday.

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