LIBERAL councillor Callum Pull will push for the Newcastle Mines Grouting Fund to be reinstated after the state government axed it last month.
In a notice to City of Newcastle for Tuesday's meeting, Cr Pull argues the fund gave security to investors and developers against potential cost blowouts on mine grouting works.
"The fund effectively insured inner-city developers against unpredictable and expensive mine grouting works which need to be undertaken under the sites of planned residential and office developments," his notice said.
"Acting Minister for the Hunter Yasmin Catley said that the fund had to be wrapped up to 'direct funding to the projects [NSW Labor] promised at the election'.
"$1.2 million had been paid out of the fund over the last eight years, a tiny portion of the NSW State Budget, which helped to support the revitalisation of Newcastle's CBD."
In his notice, Cr Pull argues the fund had "minimal impact" on the state budget, but provided significant benefits and assurance for the redevelopment and revitalisation of inner-city Newcastle.
His motion asks councillors to call on the state government to restore the fund, which provides money for developers for unknown costs to fill underground mine voids.
The Newcastle Herald reported on September 26 that the NSW government was winding up the fund, after the recent state budget dropped it from $11 million to $6 million, which will fund approved claims but won't accept future applications.
Industry representatives have since claimed the decision could jeopardise future housing projects in the city.
