THE Hunter's calls for a greater share of the state's mining wealth could be about to hit pay dirt, with the NSW Government seriously considering a shake-up of coal royalties as a pre-election sweetener.
Cabinet was close to signing off on a deal last year, before former Premier Nathan Rees was ousted, that would have sent 1 per cent of royalties (or $9-$10 million based on 2009 figures) back to the region for a local infrastructure fund.
There is now a plan on the table as part of the NSW budget process that could mean mining companies will face an extra tax, paid directly into Hunter coffers.
Minister for the Hunter Jodi McKay said she would "not comment on budget speculation" but confirmed she wanted the region to get a greater slice of the pie.
"I continue to support the efforts of Hunter councils, particularly Singleton and Muswellbrook, in their call for a greater share of royalties," she said.
Those two councils, which are home to about 70 per cent of the state's coalmining, put a submission to the NSW Government 12 months ago asking for a new funding model that would directly benefit them.
Hunter Business Chamber chief executive Peter Shinnick said the region should get a bigger cut of royalties, but not at the cost of miners.
"We wouldn't support an extra tax in any way, we would just say 'give us some of the royalties for the Hunter'," he said.
"[The NSW Government] are going to get another $400 million extra from increased throughput at the port - so why put additional taxes on."
Muswellbrook and Singleton mayors Martin Rush and Sue Moore have been adamant that any shake-up of royalties should not follow a Western Australian-style "royalties for region" model, which shares funds among all regional areas whether or not they are heavily mined.
But the NSW Association of Mining Related Councils is expected to push for just such a scheme in a few months, with the association's executive officer Margaret McDonald saying the "time is right".
Cr Rush said it would be unfair for areas like Orange to piggyback on Hunter communities.
"The impost on this community is enormous, and we say that the royalties should come back here," he said.
NSW Minerals Council chief executive Nikki Williams said the industry was already paying enough.
"We've been saying for some time that publicly funded local infrastructure and services should keep pace with the growth of regional economies and . . . their communities," she said.
The Government's mining royalties have almost tripled in the past three years, to $1.28 billion last year.
"[That's] a significant increase to help pay for key essential front line services like hospitals, schools and police," Dr Williams said.
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