NSW Opposition Leader Peter Debnam today announced the $1 billion Drought Proofing NSW Infrastructure Fund would be partially funded by the sale of NSW Lotteries. 

"It's important we free up funds to get on with the critical job of addressing the water crisis and drought proofing NSW," Mr Debnam said.  

"We have a budget in crisis and we are in the middle of a water crisis. It's time for tough decisions. I need to urgently begin allocating resources to begin the task of drought proofing NSW," he said.

"I will partially fund my $1 billion Drought Proofing NSW Infrastructure Fund through the sale of NSW Lotteries.  

"I will consult widely on the process of the sale and the licensing conditions to be attached.

"I will protect the return to punters and will protect the newsagents who sell most of the lottery tickets.  

"Lotteries would continue to pay annual lottery duties of up to $300 million.

"Unlike the Iemma-Costa Labor Government's botched sale of the Snowy Hydro Scheme, I will consult widely and ensure the best outcome for the people of NSW.  

"I'll consult on the method of sale and licensing conditions to ensure punter returns are protected, and also ensure the rights of newsagents are protected.

"There is no need for the public sector to own NSW Lotteries and I will use these funds to begin the urgent task of drought proofing NSW," Mr Debnam said.