Upper Hunter residents have demanded a greater share of the state's multi-billion dollar coal royalty pie as they prepare to deal with unprecedented social and economic challenges associated with the clean energy transition.
A door-to-door survey of 300 Muswellbrook residents revealed an overwhelming view that the town is getting short changed in relation to the wealth it generates for the state.
A large majority of survey participants wanted higher coal royalties to fund increased public investment in the region, especially in the areas of social services and economic diversification.
Coal royalties will increase by 2.6 per cent from July.
This month's state budget papers are expected to show the increased royalties will deliver a $2.7 billion boost to the state's coffers over four years.
Hunter Renewal volunteers, who conducted the survey between between September 2023 and May 2024, found 98 per cent of participants wanted more of the state's coal royalties revenue invested in the Upper Hunter.
Eighty seven per cent of participants wanted royalty rates lifted beyond the new rates.
Social and community services, public infrastructure to support economic diversification, restoring mine-owned land to create jobs and protect biodiversity, establishing a Hunter Regional Authority empowered to manage economic diversification and landscape restoration, reskilling mine and power station workers for jobs in new industries were identified as high priorities by many of those surveyed.
Hunter Renewal organiser Steve Phillips said mines around Muswellbrook raised close to a billion dollars in public revenue last year, but very few of the economic returns from the industry had flowed back into the town.
"The residents of Muswellbrook cop the brunt of the harm that coal mining inflicts on health, on the cost of living, on social inequality and community cohesion," he said.
"It should be no surprise that most local residents think that coal royalties should be increased, and that more of that revenue should be invested in the Upper Hunter."
The Royalties for Rejuvenation Fund was initiated by the former Coalition government in 2022 and has been continued by the Labor government.
The fund aims 'to alleviate economic impacts' from the decline of the coal industry by supporting diversification projects in mining regions. $25 million per annum is invested into the fund, but no projects have been funded.
The state's government's Future Jobs and Investment Authority for the Hunter, one of four such authorities to be established inNSW, will be funded by the Royalties for Rejuvenation program.
Mr Phillips said substantial government intervention and major public funding were needed to ensure the Hunter can thrive in a post-coal economy.
"Yet the NSW Government continues to dither and dally with its Royalties for Rejuvenation Fund. At least $75 million sits in a kitty intended to facilitate economic diversification for coal mining regions in transition. No projects have been funded.
"The Hunter is being ripped off by the mining industry. We call on the NSW Government to ensure the region's transition from coal is funded by the profits from that industry."
NSW Minerals Council chief executive Stephen Galilee said the mining industry would pay more than $13 billion in royalties over the next four years. He said the industry strongly agreed that a greater share should be reinvested in the regional communities where miners people live and work.
"Over the last decade we successfully worked with local councils in mining regions to secure improvements to the Resources for Regions program," he said.
"We argued for the retention of the program before it was scrapped by the current NSW Government, and have repeatedly called for it to be replaced, along with the restoration of dedicated funding for mining communities."
A NSW government spokesman said the Hunter played a crucial role in the NSW economy, including through the coal mining industry.
He said raising coal royalty rates ensured the people of NSW were getting a fair return on the mining of their natural resources.
"We are investing that back into the budget - which last year in the Hunter meant establishing or upgrading four schools, investing $1.5 billion in local hospitals and spending $800 million to upgrade local roads," he said.
"The former government failed to raise royalties for a decade - and we saw what it meant for education and health outcomes across the state, including in the Hunter.
"The 2024/25 Budget, to be delivered on June 18, will continue the Minns Labor Government's investment in essential public services, both in the Hunter and across NSW."
