A funding dispute between state and federal governments over the University of New England's Tamworth campus has been resolved.
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The state government has given the green light to pour $26.6 million from its Growing Local Economies fund into the project, Tamworth MP Kevin Anderson announced on Wednesday.
The final approval comes after confirmation that the university can assign Commonwealth funding received under the federal government's Job Ready Graduates reform directly to the project.
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The federal government will contribute $10 million to the project.
State government committed $26.6 million on the project in 2019 - on condition of direct federal government support. But the UNE second campus went to three federal budgets without a funding commitment.
Wednesday's agreement will bring to an end years of often heated negotiations about how to get progress on the project. Local advocates expressed concern in early 2021 that the entire scheme could fall over if the federal government pulled out, and the state followed suit.
Mr Anderson described himself as "thrilled" that the project could now move into a delivery phase.
"Our city needs a vibrant new campus with multi-purpose facilities to support teaching, research and collaboration," he said.
"The construction of the campus will create new jobs in our region and, once built, will educate a workforce and drive innovation in sectors critical to the future growth and prosperity of Tamworth and wider region."
Deputy Premier and Minister for Regional NSW Paul Toole said the state government is committed to building transformative infrastructure like the UNE Tamworth campus.
"The new campus will mean Tamworth residents can study close to home and continue to live and work in their community, keeping their skills in the local workforce and ensuring they don't have to travel for hours to study," he said.
"We are continuing to work with communities to invest record amounts of money into infrastructure and services, so more people can realise the potential of our regions, and the UNE Tamworth campus is a prime example of that."
"I commend the collaborative approach adopted by UNE, the NSW and Commonwealth governments and Tamworth Regional Council to progress this important project."
The campus is expected to cost about $60 million, thanks to advanced new robotics education and research facilities.
It will be delivered according to a hub and spoke model, with students often learning within businesses and other places of work, rather than a formal university campus.
Nonetheless, the new campus will include several million dollars worth of new facilities.
The site for the new campus has yet to be announced.
The University of New England has spent months preparing to start construction on the campus in 2022, even without a Commonwealth commitment to the project.
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