07 August 2014 Northern Australia Taskforce Department of the Prime Minister and Cabinet PO Box 6500 CANBERRA ACT 2600 Enclosures Bid Brochure Presentation of 23 July to Department Officials Dear Sir/Madam, The Northern Australia Cooperative Research Centre Bid Team welcomes the opportunity to make a short submission to the Green Paper on developing Northern Australia. The bid team has been bringing together a proposal that has as its purpose an aim to deliver high impact research that will lower investment barriers and enable significant capital to flow to development in the north. We have garnered strong support to the need for the work and the approach we are taking. The key tenets of our proposed program include; 1. A nation building project within the north and looking north. 2. Technological innovation for profitable value chains into Asia. 3. Socially and environmentally sustainable development. 4. Strong, ongoing and broad regional and aboriginal community ownership, engagement and benefit. 5. Transformational and inclusive. The key points of this submission are: 1. The bid has strong support from the Western Australian, Queensland and Northern Territory governments and the multitude of communities that call Northern Australia home. Industry funding is also being sourced from private companies, rural research and development corporations and offshore funds with an interest in the geography. 2. Whilst initially focused more on Agriculture the program has progressively been structured to provide flexibility and inclusiveness against the needs of the broader development of Northern Australia. For example the proposed program recognizes that agriculture (including aquaculture) will play a strategically important role in an emerging but much broader transformation of the north. Therefore, with agriculture as a foundation the program aims to provide for diversity and balance in regional economies, be an enabler for development of trade, assist conserve and sustainably draw on natural resources, create demand for infrastructure development, work with existing and new businesses, provide a foundation for improving live-ability of local communities and create demand for new skills. 3. 4. The program of work being developed aims to provide a platform for: a. The sustainable development of Northern Australia from an informed foundation of good research, informed policy and policy leadership and an understanding of risks and opportunities. b. Addressing the formidable economic, environmental and social challenges and barriers to investment that have constrained and frustrated development over the last 150 years. c. A collaborative program of research, innovation, education and commercial partnerships involving investors, governments, industries and communities. The bid includes a compelling case socially, environmentally and economically. For example in agriculture alone Northern Australia currently represents over 46% of the total Australian area of agricultural activity but under 13% of the value of agricultural production at farm gate (source: Agricultural commodities, Vol 13, No 4, December Quarter 2013). Closing only some of that gap would require billions in investment, build more sustainable communities and with good underpinning research sustainably draw on abundant natural resources in the north. 5. The Coalition’s 2030 Vision for Developing Northern Australia (Liberal Party of Australia, 2013) flagged the importance of northern Australia. The Green Paper released in June (Department of Prime Minister and Cabinet, 2014) sets out six policy priorities for northern Australia: Infrastructure, Land, Water, Business Trade and Investment, Education Research and Innovation, and Governance. The AgNorth CRC draws together the best partners and collaborators to address these six policy priorities within an integrated program structure. The focus is on new agriculture, horticulture and aquaculture enterprises and industries for growing Asian and other markets. AgNorth will find innovative solutions to supply chain, infrastructure, investment risk, labor force, social license, property rights, climatic, environmental and governance challenges faced by these sectors. These opportunities and challenges constrain the development of northern Australia generally, and the supply chain solutions, policy ideas and investment models developed by the AgNorth CRC will be applicable well beyond agriculture. This CRC will either deliver, or support the achievement of, all 23 policy initiatives set out in Table 1 of the Green Paper and leave a legacy of knowledge and capability for a prosperous future in the north. Table 1: AgNorth CRC and the 2030 Vision for Developing Northern Australia Green Paper Policy area Infrastructure Land Water Business, trade and investment Education, research and innovation Governance CRC will deliver: CRC will contribute to: Productive new infrastructure Better use of existing infrastructure Better planning and understanding of infrastructure opportunities and benefits Diverse and longer pastoral leases Flexible leases for Indigenous landholders Efficient native title processes More accessible information New infrastructure to support industries and communities Comprehensive water resource assessments Best practice planning and management Water markets Deregulation agenda for the north Workforce availability and skills that meet business needs New markets and greater trade links Innovative business-friendly policies Building capabilities and skills Partnerships with world leading institutions More international students Effective engagement with international development in the region Collaboration across governments Effective engagement with, and presence in, northern Australia Efficient service delivery Capable and sustainable local institutions The north of Australia has aspirational regional and Indigenous communities, and significant land and water resource opportunities. With an innovative and transformational approach to regional and agricultural development in the north, founded in leading edge production and environmental technologies and driven by a commercial approach, Australia can ‘change the game’ and the economics of northern agriculture to take advantage of the region’s proximity to growing high value markets now and in the future (RIRDC, 2014). Low population density, large geographic area, harsh environment, multi-interest land tenures, constrained workforce capabilities, limited digital access, inadequate infrastructure and pockets of regional development have characterized the historical high-risk profile for investment in the north. In addition, the North’s significant Indigenous population, often living in very remote communities, faces major social and economic impediments to realizing their aspirations. Transforming the economic prospects of the north is a ‘wicked problem’ that requires the critical mass of intellectual effort, collective investment, resources and expertise of the consortium of public and private CRC partners; all working together with northern regional businesses and communities. The platform of a 10 year CRC is an ideal mechanism for public and private partnerships to co-create and apply solutions for the north. Unlocking the north for investment is a ‘must-have’ for development. The region is characteristically high-risk, reducing its attractiveness for local and foreign capital investment. The AgNorth CRC will deliver high impact research to lower investment risk through substantially increasing and improving the accessibility of credible (tested) knowledge, appropriate business models and regulatory planning tools that are uniquely designed for the north and facilitate access to Asian markets. Corporates and SMEs looking to develop northern enterprises, through partnerships with the AgNorth “Shop Front”, will have access to strong brokerage, science and technical capability, links to the forefront of private and public knowledge on northern business development, new northern production systems and supply chain design to maximize their chances of success. They will benefit from the support which comes from a critical mass of institutions and enterprises joining forces to address shared barriers to development in the region. The bid proposal offers the opportunity for a long term research commitment enabling many of the seemingly intractable issues about northern development to be addressed. The bid was completed to a near compliant form under the existing Cooperative Research Centre framework on 3 July 2014 in line with the original round 17 timetable for new applicants. All founding partners have since committed further cash and in kind resources to continue to strengthen the bid through the rest of the northern white paper process. It is the view of the bid team and backers that a real opportunity exists to bring entrepreneurial ingenuity and public investments in science, technology development and policy coordination together in Northern Australia for the benefit of Northern Australia, broader Australia and the Asia Pacific region. This would establish a strong foundation based on collaboration, high impact science and research and deliver the best chance we have of attracting the significant private capital needed to realize the opportunities in Northern Australia. The enclosed brochure and presentation is provided to give a little more context. Yours sincerely Michael Guerin Chief Executive Officer