WP Sub 94 SUBMISSION FROM SHIRE OF WYNDHAM EAST KIMBERLEY TO THE GREEN PAPER ON DEVELOPING NORTHERN AUSTRALIA. P.O. BOX 614 Kununurra WA 6743 SUBMITTED 8 AUGUST 2014 INTRODUCTION Further to our submission to the Joint Committee and subsequent discussion in Kununurra Western Australia 7 May 2014 we wish to continue the dialogue on Developing Northern Australia offered through the Green Paper submission process. Of the six policy directions listed in the Green Paper we wish to comment on the following areas: Delivering economic infrastructure Promoting trade and investment and strengthening the business environment Fostering education, research and innovation We have also noted that developing a united international marketing strategy for tourism Northern Australia is identified as a key to unlocking future growth and development and links to the above policy areas. DELIVERING ECONOMIC INFRASTRUCTURE. Taking an East Kimberley specific approach we are closer to Darwin Northern Territory for many goods and services than the WA capital Perth some 3500 kilometres away. Mobilisation costs for infrastructure investment in roads for example can add another 70% to basic costs making projects expensive. This factor is also complicated when you consider that funding for a financial year July to June has most of the core months impacted by the wet season adding further delays and costs. We work around this impediment by ensuring funders understand the northern differences and have these differences reflected in contract milestones. Nevertheless it is an issue for future development that funding needs to be across financial years and that cross regional collaboration to reduce mobilisation costs through project staging is a given. With a whole of Northern Australia approach it is expected that project costs could be reduced by having scale and by having the expertise and equipment required based in the region. Current East Kimberley projects underway include re-asphalting of the East Kimberley Regional Airport runway funded by State Department of Transport. Through the Council endorsed Master Plan future work is planned to extend the runway to enable larger planes to access the facility, this future development has also been discussed with Infrastructure Australia. Taking a hub spoke model to the larger Northern Australia region it is envisaged that the East Kimberley Regional Airport would play a key role in ensuring that produce could move quickly by air from the East Kimberley to international markets in the same time zone (Shanghai, Singapore, Kuala Lumpur, Beijing, Hong Kong) WP Sub 94 Work is also underway to explore what role Katherine Northern Territory could play as a road, rail and air hub to strengthen the ability to move goods more quickly for both domestic and international customers. The same idea can also be used for coastal shipping and the role of the Wyndham port in the East Kimberley has been covered in submissions made by Cambridge Gulf Ltd to the Joint Committee hearing in Kununurra 7 May 2014. Infrastructure for the East Kimberley must also address the need for integrated communication technology roll-out. Fragmenting such services across different Departments both Federal and State and then different Departments handling NBN issues, mobile coverage issues and even digital TV conversion inhibits the ease required for both user adoption of new technology and also businesses and agencies fully understanding the role such improvements can play in their operations. The role such technologies will play in the future are all encompassing for example remote medical technologies, educational linkages with Universities in Australia and around the world, greater connectivity for residents and visitors for day to day living including better emergency services, and applications for improved water and land management. This area is seen as a fundamental infrastructure investment area as important as roads and ports. This basic infrastructure will help determine the future shape of Northern Australia and links directly to the policy area of: FOSTERING EDUCATION, RESEARCH AND INNOVATION We are aware of the recently released report Creating Parity: Andrew Forrest Review but Council have not as yet had a chance to fully examine the report. The Shire’s 2012-2022 Strategic Community Plan shared with the Joint Committee identifies clearly that one of the biggest opportunities is “to improve educational opportunities that will have long term benefits for the region including the availability of locally trained employees” Demographically there is a large decrease in the 15 to 19 year old group as young people move away from town to go to high school. This is not unique to the East Kimberley but is expected to be a pattern shared across Northern Australia. Locally work is underway to examine the development of a Grammar School in the East Kimberley to help reverse this trend. Models under consideration include much closer relationships with Universities in developing the learning models with links back to the previous comments regarding the role technology can play. In some ways the nature of the East Kimberley and other Northern Australian regions has required residents over time to be innovative in how they have been able to adapt to the environment and its challenges. For example the Kimberley region has a strong trading history with Indonesia with Indigenous traders moving freely along the coast and trading in food and other goods. Supporting Reference: The Impact of Asian -Aboriginal Australian Contacts in Northern Australia* Christine Choo University of Western Australia Asian and Pacific Migration Journal, Vol. 3, Nos. 2-3, 1994 In early days frozen meat was shipped to international markets from Wyndham and when the works closed in 1986 live cattle started to be exported direct to Indonesian markets. WP Sub 94 Harnessing and recognising this Northern Australian history and culture is important for developing a future vision. Where the value can be added, is in supporting people to move ideas into reality, to test the ideas in a market and to share the potential business with investors. Relationships with Asia are old relationships that can be built on if understood and acknowledged and this is a strong asset that can be enhanced through research and by strong Indigenous involvement in market development work. Working closely with Universities is crucial to support commercialisation of research into business concepts and operations a process that supports early adoption of new technologies and business innovation. Global partnerships that support these concepts will be important for Northern Australia so that research and innovation are closely linked to what goods and services are developed for what markets and how market intelligence can change what is grown for example to meet new emerging markets. High value niche markets for goods such as live fish able to be in a market a few hours after leaving Australia can earn big export returns over large scale low value commodities. In the North with irrigated agriculture and horticulture and potential sea, lake and land based aquaculture the most important factor is recognising market pull for products that may never have been thought of before and working out how this intelligence can be applied. The East Kimberley can illustrate this using the superfood Chia example. Refer http://www.thechiaco.com.au/ PROMOTING TRADE AND INVESTMENT AND STRENGTHENING THE BUSINESS ENVIRONMENT. Given the proximity of the North to large and growing markets it is imperative that incentives are given through either funding or taxation to companies that understand the need to develop closer business relationships with companies that are involved in getting products from Australia to the end consumer. Recognition of the rising middleclass in Indonesia (Green Paper p.19) has implications for the live meat export trade as wet markets for meat will change with the increasing use of domestic refrigeration in homes. Monitoring these changes at an industry level is important as is understanding what are the next big trends to meet in these changing markets. This then gives rise to investors from these countries seeking investment opportunities. Having a smart Northern Australian wide agency able to act as broker for these relationships and reduce or remove any trade barriers would enhance inwards investment. Such brokered deals can be wider than usual commercial deals including research exchanges and labour incentives and if successful set up long term relationships which change over time and become deeper in both economies. Given the workload of the Free Trade Agreement agenda for Australia are there any opportunities now for identifying Northern Australia as a special area for future discussions? Any such developments using the North of Australia because of market proximity can benefit everyone else domestically with southern based companies developing northern based partnerships. Focussing attention on supporting a vibrant small business sector adds to the width and breadth of the supply chain approach and also helps develop a responsive sector able to change and adapt quickly to new needs and demands. There would be a need to review start-up conditions for SMEs on the three jurisdictions to enable a strong SME sector to develop within each area and across the whole Northern area. WP Sub 94 These concepts are not new and have been demonstrated in the Green Paper with specific examples of how companies are responding and this is important as these innovators can be approached to share their experiences and to encourage others. TOURISM For the East Kimberley Tourism has been identified as a key growth and important diversification sector. Given the proximity to the Northern Territory visitor flows across the North are important to the East Kimberley about 45% of annual visitors are camping and caravanning with many coming across the top from Queensland and Northern Territory. Since 2013 an Industry lead group East Kimberley Marketing has been developing a plan to increase visitation to the area with an emphasis on improving linkages with Northern Territory in particular given the route of travelling to the East Kimberley through Katherine in particular. Currently Queensland, Northern Territory and Western Australia Tourism agencies compete with each other domestically and internationally for visitors. The northern areas of all three jurisdictions have more in common for a joint approach globally. Travel distances are close between Northern airports and destinations such as Singapore where there are direct flights from Darwin for example. It is seen as important that barriers to cross collaboration between businesses in different localities are minimised so that innovative companies can work together to develop new products and visitor experiences for the new emerging markets. Proximity to Asia removes the old barrier of distance and as mentioned previously Northern Australia has a strong link with Asian countries based on trade and family ties going back many generations. CONCLUSION The Shire covers an area of 121,000 square kilometres with a population base of some 7600 people. It has been the recipient of substantial Federal and State investment in developing new social and physical infrastructure over the last few years as Governments realise the strategic importance of the area for future food production associated with Ord Stage 2. Argyle Diamond Mine and new industries such as the Chia story mentioned earlier further consolidate the areas strategic importance for future development. Registering its interest in the developing Northern Australia debate is important to the Shire given its proximity to the Northern Territory and an acknowledged need to work with others for future development such as Ord Stage 3. We appreciate the opportunity to comment The End Reference Shire of Wyndham East Kimberley Strategic Community Plan 2012-2022. Christine Choo The Impact of Asian -Aboriginal Australian Contacts in Northern Australia University of Western Australia Asian and Pacific Migration Journal, Vol. 3, Nos. 2-3, 1994