Western Australian Government Submission to the Commonwealth
Green Paper on Developing Northern Australia
August 2014
Introduction
The six policy directions documented in the Green Paper on Developing Northern Australia
capture the principal issues, barriers and opportunities facing the north and many of the
significant underlying enablers that can drive its future economic growth.
This submission is structured to respond to each of these six policy directions. In offering
broad support for these six broad policy directions, it is important to note that many of them
are interrelated. With this in mind, it is important that the Northern Australia Task Force
develop integrated policy solutions for the White Paper, wherever necessary and practical.
Equally important, there is a need for agreement to be reached on the White Paper including
a limited set of priorities with defined project timelines and budgets, focused on achievable
outcomes.
In addition (to the comments that follow) the Western Australian Government makes the
following broad points. These build on, or complement, key messages included in the recent
Western Australian Government submission to the Joint Select Committee on Northern
Australia:

While the broad focus in the Green Paper on developing economic infrastructure in
the north is supported, equal consideration needs to be given to social infrastructure
requirements. The social infrastructure investment the Western Australian
Government has made under its Pilbara Cities initiative, a project referred to in the
Government’s submission to the Joint Select Committee on Northern Australia, is
one example of how targeted Government investment enables broader economic
development and population growth.

The current definition of northern Australia (all areas above the Tropic of Capricorn
and select areas to the south of the Tropic) needs to be extended to the 26th parallel
to include the towns of Carnarvon and Newman. Both towns make a significant to
contribution to northern Australia and are integral to its further development.

In an increasingly resource constrained environment, there needs to be a continuing
focus by all Governments on reassessing their respective roles; the outcomes they
can each best achieve; who is best placed to deliver programs, services and
infrastructure; how best these programs can be funded; and how best governments
can coordinate to eliminate duplication in service delivery.

There is a need for the Commonwealth Government to ensure a high level of
coordination with other related White Paper processes that are relevant to, and will
impact on, developing northern Australia, particularly the White Papers on the reform
of the Federation, Taxation, Agricultural Competitiveness and the Ministerial Working
Group on Water Infrastructure. In relation to taxation reform, the Commonwealth
should focus on developing measures that have the potential to encourage and grow
a sustainable population base which can then support and stimulate economic
development.
Policy direction one - delivering economic infrastructure
The Western Australian Government welcomes joint Commonwealth-State funding models
in infrastructure development for northern Australia, particularly where government
investment is required to de-risk commercial projects. Additionally, Western Australia
supports direct private sector investment for economic infrastructure, through public private
partnerships, wherever possible.
Infrastructure in Aboriginal communities
While Western Australia welcomes the Commonwealth Government’s more streamlined and
flexible approach to funding programs and recognises that funding priorities will be adjusted,
the White Paper should recommend that there be no reduction in the overall level of
Commonwealth funding already provided (and needed) to support remote Aboriginal
communities in Western Australia. Pressing needs outweigh any likely savings and there is
no scope for the State to make up any Commonwealth Government funding reductions.
Aboriginal development opportunities are central to developing northern Australia, and
access to safe housing and reliable essential service infrastructure is imperative. In the
delivery of infrastructure projects, tender assessment criteria should support Aboriginal
business involvement either as head contractor, partner or subcontractor, and be inclusive of
Aboriginal employment and training outcomes. This is an important mechanism to drive
Aboriginal economic development and address long standing disadvantage. As an example,
under the National Partnership Agreement for Remote Indigenous Housing, the Western
Australian Government has an objective of actively supporting Aboriginal economic
development. As a result, an increasing proportion of building work is being delivered by
Aboriginal businesses in remote areas.
Investment in remote areas can also result in significant economic and social outcomes
arising from the one (limited) funding source. As an example, detail of the social and
economic benefits that accrued from funding a 24-hour, all weather Dampier Aerodrome is
provided at Attachment 1.
Other Commonwealth Government infrastructure initiatives
As referred to in the Introduction, the White Paper’s recommendations need to be consistent
with Infrastructure Australia’s draft infrastructure audit reports. The Western Australian
Government has been extensively engaged in providing input into those reports and
requests further dialogue with the Commonwealth about the need to assess infrastructure
proposals from a broad perspective where benefit cost analysis is not the sole criteria.
The Western Australian Government is also a member of the Transport and Infrastructure
Council and recommends the outcomes, issues and solutions identified at the Remote and
Regional Transport Infrastructure and Services Forum held in May 2014 be considered in
the preparation of the White Paper.
In addition:
1. While Western Australia has agreed to the national Asset Recycling Initiative, further
consultation is required, including clarity on the guidelines; and
2. Industry consultation is also critical to determine infrastructure requirements. Of note,
key infrastructure to support the export of agricultural production including common
use facilities for airports and ports, roads, and industrial land for businesses to
distribute products, including facilities such as cold storage, needs to be considered.
Communications infrastructure
It remains unclear what impact the delays in the rollout of the National Broadband Network
(NBN) arising from the current review will have on northern Western Australia.
Underinvestment in communications infrastructure in the north of Western Australia
continues to be a major barrier to further growth and economic development.
A number of private consortia are considering new undersea cables from Perth to
Singapore, underpinned by major mining and oil and gas companies. There is an opportunity
to develop competitive backhaul routes to complement existing plans for offshore fibre, to
service oil and gas projects in northern Western Australia.
The Western Australian Government requests that the White Paper recommend that the
Commonwealth consider a regional backbone black spots initiative or the elevation of the
NBN role in providing competitive backhaul as part of its national rollout. Western Australia
did not fare well at all under the last Government’s Regional Blackspots Program with only
450kilometres (km) of an available 6,000km of new fibre funded between Perth and
Geraldton to support the Square Kilometre Array bid. See Attachment 2.
Policy direction two – improving land use and access
Native title
The Commonwealth Government has primary responsibility for ensuring efficient operation
and administration of the Native Title Act 1993 (C’th) (NTA). Several initiatives could be
undertaken by the Commonwealth to improve land access and opportunities for developing
northern Australia. Centring on a coordinated and cooperative framework between the
Commonwealth and all State and Territory governments, measures include, but are not
limited to:
1. enacting technical amendments to the NTA, as agreed and proposed by all State and
Territory governments in 2014, to streamline cumbersome native title processes;
2. developing new NTA amendments, in close consultation with State and Territory
governments, that reduce timeframes and obligations associated with conversion of
pastoral leases to more commercially oriented uses;
3. providing assistance directly to Prescribed Bodies Corporate (PBCs) as perpetual
interests in land management and development, rather than via representative
bodies. The Commonwealth's assistance should be directly tied to agreed outcomes
that facilitate PBCs' productive engagement with local and regional economies, in
consultation with industry and the respective State or Territory;
4. otherwise ensuring that Commonwealth initiatives align with, and do not fetter, each
State's land management and development framework; and
5. the Commonwealth meeting its share of compensation obligations to States and
Territories, which otherwise poses a significant constraint to land development,
including by way of a formalised Financial Assistance Agreement.
Recommendations in the White Paper will also need to be consistent with work already
underway in native title reform.
Land tenure process and reform
There is a need for greater State and Commonwealth collaboration in informing and
assisting investors on land tenure options and native title considerations, particularly in
relation to enabling large scale agricultural production. The Western Australian Government
is currently preparing amendments to its Land Administration Act 1997 to increase land
tenure options available to proponents.
While appropriate land tenure is available in Western Australia to accommodate investment
projects, there are ongoing misunderstandings about tenure options and security.
Streamlining State and Commonwealth development pathways is essential, given investors
can lose patience with the timeframes in resolving native title and tenure issues.
The Western Australian Government also recommends that Governments collaborate to
develop information and training packages that provide a clear and consistent message
about land options and approvals processes to potential investors, both nationally and
internationally.
Policy direction three - improving water access and management
The Western Australian Government has a clear focus for water based development in the
north based on utilising water from the Ord River for irrigation expansion in the East
Kimberley, exploring the West Kimberley’s groundwater based irrigation potential and
optimising water supplies to support growth and diversification of industry in the Pilbara. The
Western Australian Government understands the value of water science, planning and
infrastructure for supply security and quality for communities, industry and investment.
Infrastructure priorities and investment
Investing in water infrastructure promotes the growth and development of communities. To
ensure effective development, water infrastructure needs to be considered along with
community aspirations, land suitability and investment in other areas, such as transport,
power and communications.
Again, working with Aboriginal communities and organisations is a critical step in ensuring
that water infrastructure investment benefits those who live in the north. Long term
investment partnerships have been fundamental to the success of irrigation expansion in the
East Kimberley and town water supplies in the Pilbara.
As referred to in the Introduction, recommendations in the White Paper need to be
consistent with water infrastructure priorities identified through Western Australian input into
the Commonwealth Department of Agriculture options paper for the Ministerial Working
Group on Water infrastructure. Water infrastructure priorities for northern Western Australia
include increasing storage for Ord irrigation expansion by raising and widening the Ord River
Dam spillway and improving efficiency to support infill of the Ord Stage 1 irrigation area.
Water resource assessment and knowledge needs
The Western Australian Government is currently investing in water resource investigations,
information and land access in priority areas of the West Kimberley, East Kimberley and
Pilbara to support community development, irrigated agriculture, mining, industry and urban
growth. To capitalise on our improving knowledge of sustainable land and water
opportunities for expanded agriculture in the north, further investment is needed.
Western Australia supports the use of existing water resource inventories and current water
resource assessments as a springboard for further work. The Western Australian
Government requests that its officials be engaged from the very early scoping phases of any
CSIRO rapid appraisal of river catchments to ensure it is matched to priorities and
complements existing information and experience in catchment hydrology.
Best practice planning and management
Water allocation priorities in northern Western Australia include
1. updating the water sharing regime if the Ord River Dam spillway is raised; and
2. groundwater allocation planning in the West Kimberley, with a specific focus on
Mowanjum and Knowsley near Derby, the La Grange area south of Broome and the
Fitzroy Valley.
Reliable, sustainable water allocations will underpin the use of water resources in the north.
The effectiveness of water markets as a tool to enhance investment will need to be
considered in the unique circumstances of the north, which is very different to the connected
southern Murray-Darling Basin.
Other aspects of water resource development including land, access, supporting
infrastructure, industry and community capacity, business potential and community
engagement are just as fundamental to successful water-based developments.
Current planning arrangements and priorities could be complemented by the proposed
AgNorth Cooperative Research Centre.
Policy direction four - promoting trade and investment and
strengthening the business environment
The development of more targeted trade and investment links with neighbouring overseas
countries is essential.
In this regard, integrated supply chain developments based on bilateral investments are
likely to replace traditional transactional trade in the future. As an example, the northern beef
industry has the potential to significantly expand, based on new production and market
development models with the Asia-Pacific. Current approaches to establishing, managing
and adjusting protocols for livestock exports, the largest agricultural export in the north from
Western Australia and the Northern Territory, are slow and involve multiple parties and
agencies. Consideration should be given to how protocol development can be fast tracked to
allow access to new live export markets, such as China.
The development of further ‘free trade’ and ‘regional trade’ agreements is also important.
These are pivotal to enhance our competitiveness and access to new export markets.
Linkages with neighbouring overseas countries need to be complemented by links to key
businesses in the region. This will assist businesses deliver on their plans for growth and
develop enduring export supply chains and value networks. One option in this regard is to
invite representatives from industry, local government and the community from northern
Australia on trade delegations.
The Commonwealth also has the opportunity to expand its network of ‘Tradestart’ advisers
to include a greater presence in northern Australia to identify and assist current and potential
exporters. This resource would assist exporters in northern Australia become export ready.
In addition, the targeting and expanding of trade officer placements in key Asian markets
would support northern businesses to expand their market presence and attract investment.
Inwards investment is a key driver in achieving enhanced trading opportunities. Identifying
and appropriately packaging investment opportunities are critical.
Once investment opportunities are identified, the key to success is through Governments
“de-risking” them. Using tools such as Geospatial Information Systems which have the ability
to overlay information on native title, mining tenements, environmental aspects and existing
infrastructure, will help provide a roadmap on those areas Governments need to focus to derisk an investment situation. Improved coordination of the existing efforts of industry, State
and Commonwealth Governments in trade enhancement activities is critical.
Further to this, coordination and messaging of State, Territory and Commonwealth
Governments is as important. One option in this regard may be to have a northern Australia
working group on trade and investment. This group could report to the Senior Officials Trade
and Investment Group and work in conjunction with the National Investment Advisory Board
and the National Trade Development Working Group.
Also important, is the need to for ‘smaller dollar value’ investments. The Western Australian
Government is focused on identifying potential investment opportunities in specific industries
in which it is already strong, including oil and gas services, mining equipment technology
services, agriculture and infrastructure.
Similarly, small business has a critical role to play if the northern economy is to grow and be
a place where people want to live, work and invest. Without small entrepreneurial activity
and employment local regional communities in the north will not prosper.
The Green Paper refers to a range of programmes currently underway to allow companies or
governments to address changing workforce challenges, including the designated Areas
Migration Agreement with the Northern Territory, and the national trial to expand the scope
of the Seasonal Worker Program to include additional industries. The Western Australian
Government supports further work to increase the effectiveness and applicability of these
programs in northern Australia.
The Western Australian Government also supports the Commonwealth offering concessions
to northern Australian businesses through the national migration program (including
Business Investment) to ensure that employers can access to the workers they need when
there are no local and Australian candidates.
Policy direction five - fostering education, science and innovation
Education, training and workforce issues
Western Australia encourages an approach that ensures long-term sustainable opportunities
for local job seekers, local business ownership (including Aboriginal businesses) and
training. To help address this, the Commonwealth Government needs to review its
procurement practices (including infrastructure investment) to better support and foster local
businesses and services. A case study demonstrating how existing Commonwealth
procurement processes currently mitigate against local job prospects is provided at
Attachment 3.
The White Paper should also recommend measures that address the competition for skilled
and semi-skilled workers between the resources sector and other sectors and enable non-
resources sector employers (especially those in service and essential service occupations)
to better compete for these workers. Strategies could include:
1. infrastructure development such as affordable housing;
2. increasing participation of under-represented groups, particularly the Aboriginal
population through skills development focused on employment outcomes;
3. addressing the lack of language, literacy and numeracy standards of existing and
new workers;
4. increasing efforts to attract and retain young people in regional communities and
therefore the workforce; and
5. effective mentoring programs for Aboriginal people. While numerous programs
provide mentoring to Aboriginal people under certain circumstances, there is a lack of
coordination in the field. In addition, mentoring of Aboriginal young people needs to
be supplemented by an earlier step of resourcing individual and family development
work to open conversations and initiatives related to employment and training
opportunities more broadly through the regions.
As an example, the Ord Enhancement Scheme supported Aboriginal training and workforce
engagement through:
1. the development of trust - changing personnel was avoided and a commitment to the
project was developed;
2. resourcing Aboriginal organisations to partner in projects - organisations were
resourced to be able to take equal responsibility for outcomes and strategies; and
3. establishing clear goals and encouraging persistence - processes were adhered to,
adjusted where necessary, and organisational partners held accountable for their
actions and responsibilities.
Further information and case study examples from this training and work placement initiative
are at Attachments 4a and 4b.
Science
Commonwealth Government science efforts and resources in northern Western Australia
should focus on:
1. strategic opportunities which make use of the existing competitive advantages and
expertise our scientists have in agriculture and food; medicine and health; minerals,
energy and petroleum; marine and terrestrial biodiversity and conservation; and radio
astronomy;
2. forging greater linkages between research institutions that stimulate scientific
innovation and industries that generate growth and employment;
3. increased funding for universities and research organisations, particularly in areas
with national benefit;
4. highlighting our strategic science capabilities and opportunities at national and
international forums including promoting Western Australia’s similarity in time zones
and geographic proximity to fast growing Asian markets and its potential to be an
Asia-Pacific ‘hub’ for science;
5. providing opportunities to connect researchers with business innovators;
6. further developing faster knowledge exchange mechanisms, including digital
libraries, to support industry-led strategic projects, which will help key business
sectors articulate their research needs; and
7. promoting existing and new Commonwealth funding programs to ensure key
stakeholders in the science community are well informed.
In addition, the White Paper should recommend that the Commonwealth review its funding
to ensure there is no duplication with the Western Australian Government’s Kimberley
Science and Conservation Strategy (KSCS). The objectives of the KSCS and
Commonwealth programs, including the declaration of new Indigenous Protected Areas and
supporting Aboriginal Ranger Programs to deliver conservation works on-country are largely
consistent but create duplication. This needs to be addressed.
Innovation
Research and innovation needs are not identical across the full breadth of Australia’s north.
In Western Australia research and innovation needs to be focused on:
1. innovative new ways to deliver inexpensive land;
2. new ways to deliver water and energy economically - renewable and distributed
grids; low cost energy models for northern Australia and excess renewable energy
diverted to provide water;
3. new ways to deliver services – public and private, remote online services delivery;
and
4. research that will deliver new economic opportunities - energy technologies; water
and waste water usage; remote service delivery; bio-prospecting; transport and
logistics; direct current power transmission.
Innovations to solve barriers could include:
1. new ways to engage with private sector for infrastructure funding;
2. low cost land development and construction techniques; and
3. technologies to provide more liveable affordable housing.
Regional research and innovation hubs could include:
1.
2.
3.
4.
5.
6.
7.
8.
Indian Ocean – Kimberley and offshore energy related environmental hub;
subsea energy operations research;
fishing and aquaculture hub, for example pearls, barramundi;
bio-prospecting;
remote energy and water;
renewable energy industrial process storage technologies;
mine site de-watering for agriculture; and
remote construction technologies.
Policy direction six - enhancing governance
Duplication and fragmentation of funding is endemic in both State and Commonwealth
service programs.
Developmental impediments requiring urgent redress to promote the further development of
northern Australia include native title, environmental approvals, security of land tenure and
funding reforms, including a reduction in tied grants and the distribution of Goods and
Services Tax (GST) revenues on an equal per capita basis.
The current Commonwealth Grants Commission (CGC) process for distributing GST
revenue among the States must be revised. The CGC does not, and cannot, ensure that
differences in States’ efforts to grow and repair their economies do not affect their GST
grants. Moreover, the CGC has great difficulty in identifying all the costs faced by States in
relation to economic development. As a result, the existing GST system compensates States
for actions that undermine growth, or inaction on structural reforms. It directs money away
from States, such as Western Australia, which are growing and need funds to invest in the
infrastructure services and amenities that underpin that growth. Western Australia maintains
that the current GST distribution process should transition to one which distributes GST
revenues to the States on an equal per capita basis, with the Commonwealth providing topup payments to the smaller States, as appropriate.
Western Australia also supports:
1. government-to-government decision-making (Western Australia, Northern Territory,
Queensland, Commonwealth) being addressed first, as this will inform all other joint
planning;
2. Commonwealth recognition that the Western Australian Government will seek to
continue its policy emphasis on more accountable and efficient service delivery with
a greater role for the not for profit sector;
3. community governance being approached from the ground up; that is, (in Western
Australia’s case) involving local governments, Regional Development Commissions,
Land Councils, Aboriginal Corporations, not for profit consortiums and other
community based reference groups;
4. shared investment arrangements being developed to:
a. align Commonwealth funding with compatible State/Territory services,
including through pooled funding or co-commissioning arrangements; and
b. give clarity about the sustainability of Commonwealth funding.
Conclusion
The Western Australian Government looks forward to continuing to work with the
Commonwealth, Northern Territory and Queensland Governments in developing appropriate
policies and promoting further investment in northern Australia.
The Western Australian Government asserts that in order to achieve viable outcomes from
the initiatives or programmes that result from the White Paper recommendations, strong
leadership and coordination from all tiers of government is required.
The sustainable development of northern Australia is in the best interest of all Australians.
As much as northern Australia is remote and sparsely populated, it also has many natural
and comparative advantages that can be harnessed for the future prosperity of the region
and for the nation.
The White Paper’s recommendations must provide the impetus for all levels of Government
to fundamentally shift the way they work together and with the private and not for profit
sectors. The White Paper should focus on opportunities to alleviate Aboriginal disadvantage,
generate economic diversification and grow an inclusive and sustainable community in
northern Australia.
Attachment 1
Dampier Aerodrome
The 24-hour all weather Dampier Aerodrome in far north remote Western Australia and a
new sealed road system connecting the four communities in this remote area was
established as a sub-regional rather than community based infrastructure project. Once
completed, this Project not only provided an emergency service for residents but also
provided a base for fly-in, fly-out employment to mining sites (up to 20 adult residents), a
refuelling point for off shore gas rigs (8 to 12 residents are refuelers), and for tourist
ventures. This has seen economic development through increased income from business
and employment in these communities along with a reduction in social dysfunction. A Statewide remote aerodrome network, strategically placed, would enhance economic and social
development.
Attachment 2
In 2009, the Australian Government announced funding of $250 million for a Regional
Backbone Blackspots Program (RBBP). Of 6,000km, only 450km was constructed in WA.
The map below shows RBBP fibre in yellow. Fibre owned or leased by other parties is
shown in red and black.
Attachment 3
Case study: Concerns over lack of job outcomes from telecommunications training
 In 2012, the West Kimberley Aboriginal Workplace Development Centre (AWDC) worked
closely with Integracom, a local registered training organisation to help Aboriginal job
seekers to become trained in the installation of telecommunications cabling.
 It was expected that the roll-out of digital television in the region through the
Commonwealth Digital Switchover Household Assistance Scheme would lead to job
opportunities in the West Kimberley.
 One hundred and twenty training places were awarded by the Department of Training and
Workforce Development to Integracom for this purpose.
 Between September 2012 and May 2013, a total of 73 Aboriginal people from across the
West Kimberley enrolled in the Certificate II Telecommunications Cabling course with
Integracom.
 In October 2012 the Commonwealth Government awarded the contract for the national
digital TV switchover works in the remote regions of Western Australia and the Northern
Territory.
 After this announcement, both Integracom and the AWDC engaged in discussions with
the successful contractor regarding employment opportunities in the West Kimberley.
 It is understood that as a result of these discussions, the contractor indicated a
willingness to engage Integracom's Telecommunications Cabling trainees, on the
successful completion of the course.
 It was envisaged that by gaining experience through working on the digital TV switchover
the trainees would be well placed to secure ongoing work in network maintenance as part
of the digital switchover project, before moving on to further employment.
 It is understood that the contract work for the TV satellite installation was carried out in
the West Kimberley region by non-Western Australian sub-contractors using workers from
interstate.
 It is further understood that none of the Integracom trainees were engaged in this work
despite residing in the communities where the work took place. Considerable local
consternation arose as to why no local people were involved in the work despite being
fully trained, work ready and eager to participate.
 Of the 65 Aboriginal people who completed the Integracom training, it is known that
seven obtained work in the local telecommunications industry; 22 gained work in other
fields or pursued other activities; one moved interstate; and the remaining outcomes are
unknown.
 There is an opportunity for the Commonwealth Government to strengthen its procurement
arrangements to ensure that contractors employ and train local Aboriginal people to
undertake work as part of major infrastructure projects.