The Commonwealth Government's Northern Australia White Paper aims to attract private investment for major infrastructure, but at least one major northern proponent says there are still too many hurdles for investors to tap in.

Integrated Food and Energy Development (IFED) director David Hassum is working through approvals for a major irrigation project in north Queensland's Gilbert region.

He notes that many of the biggest regulatory hurdles occur at a state and territory level, rather than a Commonwealth one.

That leaves "big ticket items" like biosecurity and trade agreements on the Commonwealth's plate.

While Mr Hassum applauded the Coalition for its focus on northern development through the White Paper, he says the Commonwealth's $200 million for water infrastructure projects is too hard to access.

"We got excited when the Water Infrastructure Development Fund was announced because we thought that finally the government was getting the message that the real impediment was that early-stage cost associated with environmental impact studies and those sorts of things," he said.

"But the first tick box in the application [for the scheme] is that you have to be a state government department to apply for it. The private sector can't access that money.

"The intent is great, and I think the concept is great, and I think both the infrastructure development fund and the $5 billion in concessional loans will be terrific as well to attract private equity, but where it can fall down is when you get into the detail of the implementation."

Constitution makes direct grants impossible

Speaking at the Food Futures conference on northern development in Darwin on Wednesday, Mr Hassum said governments are still "struggling to work out how to engage with the private sector".

Assistant Minister for Agriculture and Water Resources, Senator Anne Ruston said the constitution is a major hurdle, because it prevents the Commonwealth from giving money directly to individuals, including project proponents in the north.

"I'm a federalist, I believe in the federal model, I believe in competitive federalism. I think our challenge is to ensure that even though this is the model we've got in place, that we make it efficient. We're not going to change it, but I agree there are ways to make it more efficient."

Commonwealth counting on private sector to realise northern development dream

Senator Ruston said the government remains committed to "providing the conditions for private sector investment" in the north.

"Whilst it would always be nice to be able to provide a whole heap more money, I think there's always a danger of providing too much money because too much money creates a level of reliance," she said.

"What I think our role in government is, is to provide enough to stimulate the activity that needs to be stimulated. We need to be putting consistent policies, to put certainty, into the market.

"We need to have sensible policies, but above all else I think we should be getting out of your way and allowing you get on with the job yourself of doing what you do best."

Regional Australia Institute chief executive Jack Archer said that what the Commonwealth can provide is leadership, particularly around uncertainties on land tenure, and in securing better trade conditions.

"Regional leaders in the north who want to keep having the argument for more [Commonwealth] government money are going to be disappointed. One, because the pressure on the budget is significant so it's not 2004 when John Howard was looking for places to put it, it's a very different fiscal environment. Secondly, money's cheap at the moment in the private sector as well," he said.

"I think to continue to focus there is not the right focus.

"The focus I'd encourage is pushing for sensible land tenure change, pushing for certainty in that transition of the foundational conditions that allow people with proposals to take them forward.

"I think the White Paper is stepping up and taking leadership, putting some resources into this issue.

"Now it's about staying the course and doing the hard policy work to actually get some change."