Chapter 5Infrastructure and connectivity
5.1As outlined in Chapter 1, while evidence largely focused on issues with housing and social infrastructure, historically, there have been major issues with infrastructure and connectivity in Northern Australia. Inquiries, reports and recommendations have focused on addressing a lack of key infrastructure facilities such as roads, and patchy (or non-existent) phone and internet signals.
5.2While government programs have helped to address these gaps, issues in some areas remain ongoing. Parts of Northern Australia still need significant investment in infrastructure and connectivity.
Infrastructure
5.3Government funding for infrastructure projects, outside private sector funding, is shared between the federal, state and territory governments. Federal government funding is typically provided through grants or loans. Key among these is the Northern Australia Infrastructure Facility, established in 2016, which funds infrastructure projects in Northern Australia.
5.4Common issues with infrastructure in Northern Australia identified in evidence include:
Weather conditions like flooding leading to road closures of the small number of roads that do exist in parts of Northern Australia, many of which are unsealed, leading to services and business interruptions;
A limited number of flights;
Limited water infrastructure in some remote communities; and
Patchy phone and internet reception (discussed separately below).
5.5The 2014 Interim Report from the Joint Select Committee on Northern Australia's inquiry into the Development of Northern Australia noted 'major needs for economic and social development', including:
Capital infrastructure, such as roads, power infrastructure, telecommunications, rail, ports, and global digital technologies; and
Water infrastructure, such as dams, water channels and irrigation system.
5.6The final report of the same inquiry similarly flagged an absence of or insufficient capital infrastructure, highlighting poor road infrastructure and access, as well as limited power infrastructure. The report also noted the need for investment in rail infrastructure.
5.7The 2014 Green Paper on Developing Northern Australia acknowledged that perceptions about limited or no infrastructure in Northern Australia can 'act as a deterrent for investment and potential residents'. Further, proposals for new infrastructure often struggle to satisfy conventional cost benefit analyses, especially when compared to projects in major southern cities.
5.8According to the 2015 White Paper on Developing Northern Australia, in the past, much infrastructure in Northern Australia was funded by business, such as the resources industry, or by charging users, such as for electricity generation. The White Paper also noted that infrastructure in Northern Australia faces cost and service challenges, with a low population density and smaller dispersed industry creating challenges for commercially viable infrastructure to be built and maintained at competitive prices. In addition, the wet season can compress construction and maintenance schedules into a six or seven month schedule.
5.9Federal government programs introduced to address issues with infrastructure in Northern Australia include:
The Northern Australia Infrastructure Facility, which provides infrastructure financing;
The Local Roads and Community Infrastructure Program, which supports Australian councils to deliver priority local road and community infrastructure projects; and
The Mobile Black Spot Program, which invests in telecommunications infrastructure to improve mobile coverage across Australia.
5.10The Local Government Association of Queensland highlighted that federal government programs for infrastructure had been among the most beneficial programs for workforce development in Northern Australia, including:
The Local Roads and Community Infrastructure Program; and
The Northern Australia Infrastructure Facility, although the Association proposed that the Facility be allowed to lend to small investors in place of banks and other lending institutions.
5.11The Local Government Association of Queensland underlined the importance of the quality and availability of local community infrastructure (roads, water, waste, and cultural, community and sporting facilities) in attracting and retaining a local workforce. It called for more funding for local councils, flagging that in remote Aboriginal and Torres Strait Islander communities, councils do not have the ability to raise rates, which are usually used to fund local services and infrastructure.
5.12Other local councils pointed to challenges funding larger infrastructure projects, given limited amounts of rates collected in rural and remote areas. The Shire of Wyndham East Kimberley noted that even if grants are available for critical infrastructure, there is generally a requirement that the projects be 'shovel ready', which can require significant funds from a local government area or shire. This may involve, before applying for a grant:
Detailed engineering designs;
Preparation of business cases;
Undertaking cost-benefit analyses; and
Commissioning independent detailed costings of a project.
5.13Evidence highlighted, in some regions, a lack of contractors to build critical infrastructure. Other evidence noted ongoing inadequate water and energy supply infrastructure, while some submissions noted that supply chains are costly or have a much smaller, less diversified economic base, leaving Northern Australia susceptible to resource boom and bust cycles.
5.14The 2014 Interim Report from the Joint Select Committee on Northern Australia's inquiry into the Development of Northern Australia found that a key impediment to the economic and social development of the North is the 'viability and costs of regulations and/or security compliance of small regional airports and small regional airlines'. The final report from the same inquiry in 2014 similarly noted that an impediment to development outside major centres is 'pressure to meet the costs associated with running small regional airports'.
5.15Evidence to this inquiry continued to flag the high costs of air transport for residents of Northern Australia, as well as the time needed to reach other destinations in Australia by air from Northern Australia.
Solutions
5.16Solutions proposed to address issues with infrastructure in Northern Australia included:
All levels of government to co-invest in and coordinate a Regional Infrastructure Fund to support the skilling and employment of local youth, under-represented groups and unemployed on residential, commercial, and civil construction projects that would provide additional housing and community and industry infrastructure;
A mechanism to ensure that the Northern Territory continues to be able to access a portion of the Australian Government's $120 billion per annum infrastructure spend that takes into account Northern Australia's infrastructure deficit;
Interest free finance for five years for local councils to build infrastructure;
Governments to provide infrastructure funding over the budget forward estimates cycle (three years), potentially reducing project costs through savings from constant mobilisations and demobilisations that arise from temporary or shorter-term funding commitments;
Make the Local Roads and Community Infrastructure Program permanent;
Government funding for a proposed Gibson Desert Highway from Port Hedland to Alice Springs that would avoid areas prone to flooding from cyclones and high rainfall; and
Infrastructure projects to focus on local employment, with Aboriginal businesses to be preferenced to participate in all levels of major economic projects in Northern Australia, especially on Aboriginal land, rather than infrastructure projects relying on a temporary or fly-in-fly-out workforce.
Questions – infrastructure
(a)What improvements have occurred in infrastructure in parts of Northern Australia over the past several decades, and what needs to be addressed as a matter of priority?
(b)Of the above solutions mentioned above, which do you consider have merit?
(c)How could existing Australian Government funding for infrastructure projects in Northern Australia be improved?
(d)To what extent has Northern Australia Infrastructure Facility financing improved airport infrastructure in Northern Australia?
Internet and telecommunications
5.17Like most of the issues identified in this issues paper, challenges with internet and telecommunications in Northern Australia are not new. The 2022 Regional Strengths and Infrastructure Gaps report noted that broadband 'and mobile connectivity is an enduring concern across many communities and increasingly crucial to the economic and social wellbeing or regional Australia'. The 2014 Final Report from the Joint Select Committee on Northern Australia also flagged 'shortcomings' in 'existing communications networks', including internet and mobile phone service.
5.18Mobile phone reception and fast broadband are almost non-existent for some parts of Northern Australia. Of the 750 communities and residential areas in the Northern Territory, for example, only 55 have mobile phone services. The Northern Territory Government provided statistics indicating that of the 45000 people who live in remote communities in the Northern Territory, up to 10000 have limited or no access to the internet or phone services, and many more than this have only limited capacity to pay for access. In addition, even in those remote communities that do have internet or phone access, telecommunications outages can last for days.
5.19Submitters and witnesses noted that this can impact the ability of businesses and local communities to attract and retain a local workforce, as well as access to services such as education and health. The Northern Australia Indigenous Reference Group argued that improving digital connectivity in regional and remote parts of Northern Australia would be a 'very real, tangible change…to facilitate Indigenous business generation and growth'.
Solutions
5.20Solutions proposed included:
Training for a local, community-based workforce of technicians in remote Aboriginal and Torres Strait Islander communities;
Low orbit earth orbit satellite systems to provide high quality mobile internet coverage, with free or discounted access fees and hardware for users; and
The Australian Government to accelerate existing work to provide remote communities access to affordable, reliable and fast phone and internet services.
Questions – internet and telecommunications
(a)To what extent have Australian Government grants improved internet and telecommunications infrastructure and coverage in Northern Australia?
(a)What else can all levels of government do to improve internet and telecommunications coverage in Northern Australia, particularly in remote communities?