Newcastle City Council is intensifying its campaign for the reinstatement of a critical state government fund, arguing its abolition has directly hampered housing construction and development across the city.
Fund Scrapped, Projects Stalled
The NSW government terminated the Newcastle Mines Grouting Fund in September 2023. This fund was specifically designed to help developers manage the high and often unforeseen expenses associated with stabilising old mine workings beneath building sites—a process known as grouting.
At a recent extraordinary council meeting, councillors unanimously voiced their concern. A council report highlighted that the $17 million fund had supported vital housing projects and was estimated to have stimulated around $3 billion in investment across Newcastle.
Since the fund's removal, multiple planned developments have reportedly been unable to proceed, creating a significant roadblock for new housing supply.
A Call to 'Keep the Pressure Up'
Liberal Councillor Callum Pull emphasised the need for persistent advocacy. "It was important for the council to continue to 'keep the pressure up'," he stated.
Cr Pull explained that the unpredictable cost of grouting acts as a major deterrent, especially for developers considering being the first to build on a previously unused site. He argued that a modest government investment could "even the playing field" and ensure the delivery of much-needed housing density.
"The restoration of our city and the delivery of a lot of these high density housing projects will not be seen through by government investment alone," Cr Pull said. "But, in areas that are undermined, they can be assisted."
Seeking a Fairer and Broader Solution
The council is not only seeking the return of the fund but also its expansion. Councillors want the scheme to cover a larger portion of the local government area, including key growth precincts like Broadmeadow and Newcastle's western suburbs.
Labor Councillor Elizabeth Adamczyk labelled the current situation as "disproportionate" and "unfair" for developers left to bear the full brunt of grouting costs. She connected the issue directly to the city's housing strategy, which targets 92 per cent infill development.
"That means more and more weight on locations that are already developed," Cr Adamczyk said. "This is a very specific need that we have been left with as a result of the legacy of mining."
Formal Advocacy Launched
The council has now taken formal action. Councillors have directed the Chief Executive, Jeremy Bath, to write to NSW Premier Chris Minns, newly-elected opposition leader Kellie Sloane, and local state MPs for Charlestown, Newcastle, and Wallsend.
The correspondence will outline the council's firm position and highlight the opportunity for a potential statewide expansion of such a fund to assist housing delivery more broadly.
City of Newcastle has also extended an offer to meet and collaborate with state leaders on designing a new, improved grouting fund to secure better outcomes for both Newcastle and the wider Hunter region.
