THE State Government has pocketed more than $1.4 billion from Hunter-based authorities in taxes and dividends over the past two years, as crucial projects continue to go unfunded in the region.
A Herald investigation has found that State-owned authorities paid more than $614 million in taxes and a further $831 million in shareholder dividends to the Government in the past two financial years.
The majority of money, or $799,412,000 was collected from Macquarie Generation, which runs Bayswater and Liddell power stations in the Upper Hunter.
Under the National Tax Equivalent Regime, which was set up to establish a level playing field for business, government-owned authorities are taxed at federal income tax rates.
Hunter Business Chamber chief executive officer Peter Shinnick said the Hunter had been neglected by the State Government for more than a decade.
Mr Shinnick said as the Hunter was home to 10 per cent of the state's population it should receive 10 per cent of all funding allocations, including those collected from the taxes and dividends.
He said a review of budgets over the past 10 years gave a clear picture the region was not receiving anywhere near its fair share of funding.
"You have to question whether Labor considers it needs to spend money in the Hunter," Mr Shinnick said.
"The Labor Government has been in power for the past 16 years and for the last 10 years the Hunter Region has not received its fair share in terms of allocation and they need to be held accountable for it."
The $1.4 billion was collected from Hunter Water, Newcastle Port Corporation, Eraring Energy, Macquarie Generation and a portion from EnergyAustralia, representing its Hunter client base.
It does not include coal royalties collected by the State Government from the region, which totalled about $1 billion last year, or more than $45 million paid by Hunter residents in waste levies over the past three financial years.
Minister for the Hunter Jodi McKay said the Hunter was a key contributor to the NSW economy due to its diverse range of industry and business.
Ms McKay acknowledged the Upper Hunter got little in return for supporting the coal industry.
"The Hunter has received increased government funding in successive budgets," she said.
"However I will continue to fight to ensure we receive our fair share of funds for front-line services and infrastructure."
Mr Shinnick said a review of the past decade's state budgets found on average 3 per cent funding on Hunter schools and community services, 5.6 per cent on health and 1.9 per cent on the region's courts.
"The constant debate over the condition of the state courts is totally justified when less than 2 per cent of Attorney-General's funding comes to the Hunter," he said. "Lots of other very similar conclusions can be drawn."
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