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Submission to Inquiry into the Development of Northern Australia

August 2014

Local Government Association of Queensland

8 August 2014

LGAQ Submission August 2014 Inquiry into the Development of Northern Australia

The Local Government Association of Queensland

The Local Government Association of Queensland (LGAQ) is the peak body for local government in

Queensland. It is a not-for-profit association setup solely to serve councils and their individual needs.

The LGAQ has been advising, supporting and representing local councils since 1896, allowing them to improve their operations and strengthen relationships with their communities. The LGAQ does this by connecting councils to people and places that count; supporting their drive to innovate and improve service delivery through smart services and sustainable solutions; and delivering them the means to achieve community, professional and political excellence.

1 Scope of Inquiry

The LGAQ is pleased to respond to the Inquiry into the development of northern Australia and for consideration in the development of the Government’s White Paper. The LGAQ understands the White

Paper will be released within 12 months and sets out a clear, well-defined and timely policy platform for realising the full economic potential of the north, including a plan for implementing these policies over the next two, five, 10 and 20 years.

Northern Australia is broadly defined as the parts of Australia north of the Tropic of Capricorn, spanning

Western Australia, Northern Territory and Queensland; an area of approximately 3 million square kilometres with a population of around one million people.

LGAQ notes that the White Paper will:

1. Produce a stocktake of northern Australia’s natural, geographic and strategic assets, and the potential for further development of the region’s minerals, energy, agricultural, tourism, defence and other industries, as well as a comprehensive assessment of risks and impediments to growth.

2. Set out agreed policy actions to:

 harness o pportunities which capitalise on the region’s strengths, including ways to advance trade, cultural and investment links with the Asia Pacific region and provide a regulatory and economic environment that is conducive to business investment, competitiveness and competition.

 manage impediments to growth, including from regulatory frameworks, land access arrangements, environmental constraints, the lack of coordinated planning, participation of Indigenous people in the economy and access to markets, skills and services, and

 create the right conditions for private sector investment, innovation, enterprise growth and business formation (including in and for Indigenous communities);

3. Identify the critical economic and social infrastructure needed to support the long-term growth of the region, and ways to incentivise public and private planning and investment in such infrastructure; and

4. Include consideration of the policy options identified in the Coalition’s 2030 Vision for Developing

Northern Australia.

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LGAQ Submission August 2014 Inquiry into the Development of Northern Australia

2 Geographical Scope

The LGAQ notes that the inquiry scope is focused on the geography north of the Tropic of Capricorn which includes a number of Central Queensland communities which do not appear to be represented on the

Government’s Advisory Taskforce or in any commentary related to the Inquiry. Whilst this matter has been raised by the communities in question and it is understood that further representations are being made, the

Association must emphasise the importance of inclusion of the Central Queensland region in strategic appointments and communications going forward in order to mitigate potential cynicism.

3 Current Policy

LGAQ has a number of key policy statements which have been adopted by Queensland local governments and are relevant to the conduct and outcomes of this Inquiry.

Current Policy

6.2.2

Economic Development

6.2.2.2 The Commonwealth and State governments should encourage

regional development as a means of facilitating regional growth and relieving the pressures of urban growth in major centres.

6.2.2.3 The Commonwealth, State and local governments should work together to make it more attractive for private and public sector investors to supply affordable and appropriate housing and infrastructure in rural and remote areas.

6.2.2.6 Local government is a legitimate partner with State and Federal governments in facilitating sustainable economic and regional development. Local government does this through its role as purchaser, property owner/developer, regional leader, infrastructure provider, economic policy and community advocate, regulator and business development facilitator.

6.2.2.7 Local government supports the rollout of digital infrastructure, including the National Broadband Network and the provision of equitable access to high speed broadband internet. This includes support from the Federal and State governments in developing the digital economy and online service delivery for local government.

6.2.3 Regional Development

6.2.3.1 Regional Queensland underpins the St ate’s economy through a diverse industry base including agriculture, resources and tourism and seeks to be supported by appropriate levels of service and infrastructure.

6.2.3.2 All spheres of government must work collaboratively in the early stages of developing policies and plans that impact on the social, environmental and economic growth of regional Queensland.

6.2.3.3 The decision making processes of State and Federal governments must be underpinned by the preparation of Regional Impact

Assessment Statements prepared independent of Government,

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LGAQ Submission August 2014 Inquiry into the Development of Northern Australia allowing reasonable time for regional consultation and made available for public scrutiny.

6.2.3.4 Development and investment in regional Queensland will occur through coordinated programs by local, State and Federal governments. Private sector investment in facilities and infrastructure in regional Queensland is crucial and should be encouraged by all spheres of government.

6.2.3.5 Digital infrastructure and technology is recognised as an enabler to help overcome the barriers of remoteness, infrastructure shortfalls, attract regional investment and facilitate regional prosperity.

4 Inter -regional Collaboration, Capacity and Cohesion

Councils work at a number of levels across a diversity of geography and regions. It is important therefore that a one size fits all approach is not adopted in engaging the local government sector, rather the unique factors of these sub regions and communities be recognised along with varying capacities to deliver on economic priorities.

Councils play a key role in stimulating and sustaining our local economies, providing liveable communities and associated services which impact directly on direct investment, visitor experiences and spending. As such Councils are both a critical partner and stakeholder in the implementation of Government strategies relating to economic development and tourism. Similarly, local governments are faced with a number of longer term planning, betterment and resilience building challenges in an era of fiscal uncertainty. Climate change and natural disaster arrangements are of particular consideration and impact north of the Tropic of

Capricorn. These impacts need to be considered and are covered in more detail in the LGAQ’s recent submissions to the Productivity Commission concerning local government financial sustainability and disaster management (attached).

As has been highlighted in a number of council submissions, any consideration of the development potential of Northern Australia must not only consider the types of industries which may provide export revenue and employment and development opportunities, it must also consider the demands these industries place on regional communities.

Whilst this inquiry covers a vast area of geography it is also important to recognise the role that each regional centre plays as a service hub to regional communities and the strategic nature of existing infrastructure, transport and supply chain links.

Capricorn Enterprise comments:

“Whilst the Northern Australia Development Strategy is not about physical location, it is about

Partnering and Integration, utilising the existing strengths of key Northern Regional Centres to assist in the development and the implementation of strategic objectives and to the implementation of strategic policy in respect to the creation of a northern economic development zone that results in population growth, economic prosperity, improved infrastructure, investment attraction and social cohesion.”

As recognised in the submission from Cairns Regional Council:

“There are four main centres in Queensland to consider:

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LGAQ Submission August 2014 Inquiry into the Development of Northern Australia

Rockhampton – servicing the immediate Fitzroy region and the central west.

Mackay – servicing the Mackay/Whitsunday area.

Townsville – servicing the northern region and west to Mt Isa.

Cairns – servicing the tropical north Queensland region, west to the Gulf and north to the

Papua New Guinea border.

Similarly, Darwin commercially services the Northern Territory (although there are some areas that are commercially serviced out of Adelaide). The Pilbara and Kimberley regions are, in most part, commercially, as well as politically, serviced out of Perth.

Each of the regional capitals has its own distinctive regional economic and social structures and community ethos. For these reasons, it is likely that a flexible approach in formulating policy options to address development constraints may be required for the various sub-regions of Northern Australia.

5 Supporting Existing Strengths - Critical Cross Sector Issues

The regions across Northern Australia and from Queensland’s perspective, those already outlined in the submissions received to date paint a strong picture of resilience, economic opportunity and competitive strengths. It is important that we do not seek to duplicate and rebuild but to work with what we already have available – natural assets, industry clusters, regional strengths and export opportunities.

We should work to bring existing projects to fruition with the supportive infrastructure required to build investment, liveability and competitiveness. There are however, a number of critical issues which cut across regions and industries which serve as impediments to the future sustainability, competitiveness and growth of Northern Australia. These issues are detailed in a number of submissions and representations to date, and include the following:

1. Native title and land tenure issues

2. Assessment of conservation and environmental values

3. Availability of reliable, cost competitive water and electricity

4. Provision of a reliable road network, freight and public transport infrastructure

As the sphere of government closest to the community, local government has an important facilitatory and advocacy role and should be engaged at the earliest stage in collaborative efforts to find solutions which are workable at a local level.

Central Highlands Regional Council further comments:

An overall Strategy needs to be formulated and priority projects across the region identified building on positive initial outcomes, which have included making a contribution towards gaining bipartisan support for increased funding commitments for the Bruce Highway. The Commonwealth Department of

Infrastructure and Regional Development approved and funded the investigation into three further recommended initiatives of strategic importance. These included:

• Investing in Regional Roads

• Developing Agricultural Distribution Hubs

• Supporting Regional Aviation and Air Freight for Exports.

An extensive study involved widespread engagement of, and consultation with various stakeholders, including private enterprises and government organisations across Northern Queensland. We need to highlight the importance of regional roads, ports and aviation, the inter-relationship between these and the dynamics of supply chains between Northern Queensland and major centres, in particular

Brisbane.

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LGAQ Submission August 2014 Inquiry into the Development of Northern Australia

In order to take advantage of these significant opportunities, and to improve social well-being in regional and remote areas, the need for additional funding to regional road infrastructure, regulatory and policy support to facilitate aviation connectivity, and opportunities to increase imports and exports through Northern Queensland air and sea ports with targeted initiatives in collaboration with industry groups.

Along with the proposal of developing a major coastal port at Karumba, these recommendations are further echoed in the submission made by RDA Fitzroy and Central West.

6 Governance and Population Growth

A visionary approach needs to be taken for the development of strategic initiatives that can strengthen the future of regional economies across the North as well as build upon recognised Commonwealth and State

Government priorities. Along with the effective facilitation of population growth, governance arrangements must be sufficient to drive bi-partisan long term decision making for the sustainable development of

Northern Australia in accordance with the needs and wants of regional communities.

Reflecting a number of council perspectives voiced at the recent ADC Northern Australia Forum in

Townsville, consideration needs to be given to the following:

1. The issue needs to be a national conversation and be a standing item on the COAG agenda to harness the power and coordination to drive effective solutions.

2. A Standing Committee on Northern Australia Advisory Council should be established with the support mechanisms across the States, Local Government, indigenous groups and the private sector to support balanced and effective policy development.

3. A Government based division based in Northern Australia would allow the long term development of trusted relationships.

4. Migration policy, visa and tax incentives and special economic zones should be considered in the context of Northern Australia to promote growth, investment and connectedness across both regional centres and regional communities.

As well as working to facilitate industry growth, improve planning outcomes and red tape reduction, communities want to see direct investment in the regions, through such actions as a comprehensive population policy and migration strategy, decentralisation of both Federal and State administration, some headway made with migration and tax incentives and other economic ‘push’ factors as documented in the outcomes of the LGAQ Population Growth Inquiry (2010).

With a diverse network of regional development players across Australia, States and regions, we need to achieve collaborative bi-partisan commitment and leadership to achieve these goals along with the mechanisms which can deliver into the future. It is imperative that we place local government and regional communities at the heart of this decision making.

7. Contacts and References

LGAQ thanks the Inquiry secretariat for the opportunity to respond to the Green Paper on Developing

Northern Australia. For further information please contact Angela Quain, Principal Advisor, Economic and

Regional Development, email xxxxxxxxxxxxxxxx or phone xx xxxx xxxx.

The following documents referenced in this submission are attached:

1. LGAQ Submission to Productivity Commission regarding Natural Disaster Funding

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LGAQ Submission August 2014 Inquiry into the Development of Northern Australia

2. LGAQ Submission to the Productivity Commission Inquiry into Public Infrastructure: Provision,

Funding, Financing and Costs

3. LGAQ Population Growth Inquiry Report 2010

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