The Hunter's peak business group has called on the government to support Lake Macquarie MP Greg Piper's bill to scrap penalties on Newcastle developing a container terminal.
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The bill, which Mr Piper tabled in Parliament on Thursday, would establish that penalties payable by Port of Newcastle for moving containers above a set cap have "no legal effect".
The penalties were enshrined in sale deeds when the Baird government privatised the state-owned ports of Botany, Kembla and Newcastle almost 10 years ago.
"I believe there are very few members of this house who would not agree that the deals done back in 2013 and 2014 were genuinely deficient and anti-competitive," Mr Piper told Parliament.
"The government has a responsibility to the people of Newcastle, Lake Macquarie and the Hunter region and, indeed, the state as well as existing industries to diversify, transition and prepare for the future."
Business Hunter chief executive Bob Hawes said on Friday that Mr Piper had delivered a clear message to Parliament that providing a "level playing field" for the Port of Newcastle was a key initiative to reduce freight costs to businesses and communities across NSW.
"Greg Piper rightly put the issue in the perspective of the cost burden being placed now and into the future on an enormous number of businesses and communities across NSW if the matter is not addressed," he said.
"This was reinforced in the recent Productivity Commission draft report which noted that inefficiencies are costing the nation more than $605 million each year."
The bill could be debated on Thursday next week and even passed the same day, a scenario Mr Piper's office described as "best case".
Alternatively, the government could filibuster to delay debate until Parliament rises for the March election.
Mr Hawes called on the government to act quickly.
"At a time when freight costs have skyrocketed and supply chains are stressed, it is clear the government has an imperative to do all it can to assist business and the community to reduce these pressures and set the scene for businesses to be as competitive as they can be.
"Greg acknowledged the commercial elements of the deal done in 2013 were an obvious impediment for the government to not move forward, but the long-term economic benefits for the Hunter region, NSW and for that matter the nation cannot be ignored.
"Business Hunter is hoping that in the little time the NSW Parliament has left before it goes into recess for the March 2023 election the bill is determined favourably, which will allow the Port of Newcastle to move ahead with the substantial investment to procure the project."
Neither the Coalition nor Labor has committed to supporting the bill. The Labor caucus and shadow cabinet are due to discuss the legislation early next week.
Mr Piper is trying to force both sides to take a position and resolve the issue before the March poll.
The NSW Ports consortium paid $5.07 billion for Botany and Kembla in a deal which handed it an effective monopoly on freight shipments in NSW until 2065.
Mr Piper said on Thursday that the government had options other than a "large one-off compensation payment" to meet its contractual obligation to reimburse NSW Ports for Newcastle container movements above the cap.
The Newcastle Herald understands Port of Newcastle has presented some of these options, one of which could involve a levy on containers, to the government.
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Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
