PERTH (miningweekly.com) – The Australian government on Friday boosted the proposed infrastructure investment for Queensland to A$2-billion, one-third of the total A$6-billion regional infrastructure fund, to be funded by the proposed super profits tax (SPT).

The government said that this investment would reflect the importance of the major resources state of Queensland's contribution to total mining production in Australia.

“For the first time, key regional Queensland mining towns like Mackay, Gladstone, Rockhampton and Townsville will be able to compete for a dedicated stream of funding for infrastructure,” the government said.

The announcement followed shortly after a similar promise was made to the state of Western Australia, with Prime Minister Kevin Rudd saying that it was his intention that the lion's share of the infrastructure fund generated by the SPT should go to Western Australia and Queensland - consistent with each state's share of total mining production.

He said on Wednesday that Australia would be directing a bigger share of the proceeds of a resurgent resources boom back into resource states through critical infrastructure to boost its export capacity across the wider economy.

The A$6-billion budget for the regional infrastructure fund was in addition to the A$400-million for the fund between 2010/11 and 2013/14.

Meanwhile, federal treasurer Wayne Swan on Friday refuted statements that the regional infrastructure fund was a “sugar-coating” to assist the miners and communities to swallow the SPT.

“No, it's not,” Swan told a Perth radio station on Friday.

He said that the fund had been part of the original design outlined when the SPT was announced.

“It's the money that we put aside and indicated would be available and we said it would flow roughly in proportion to contribution to the industry. We made those announcements originally. What the Prime Minister did yesterday here was to flesh that out a bit and to say to Western Australians that we can't have the problems that emerged in mining boom Mark I to reappear in mining boom Mark II.”

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