2.1
During the period of the 45th Parliament, the committee received 129 submissions and conducted three public hearings in Emerald (QLD), Darwin (NT) and Townsville (QLD).
2.2
During the 46th Parliament, the committee received a further 19 submissions and conducted two further public hearings in Port Augusta (SA) and Traralgon (VIC).
2.3
This chapter summarises the findings of the evidence received, reviews the suggested avenues for action by submitters and witnesses, and presents the committee's views.
Prominent themes
2.4
From the evidence received by the committee, nine prominent themes emerged and these are discussed below.
Education and training
2.5
The view that education and training were both neglected and important for the regions was a common one. A number of submissions argued that it was difficult for people living in the regions to have the same level of access to education as those who live in the major cities. The Regional Universities Network commented:
There is significant inequality in educational attainment between the regional Australia and major cities. Regional Australia is a generation behind in educational attainment compared to major cities, and it may well take a generation or more to address this inequality.
2.6
The Edward River Council observed:
For young or old people from the Edward River region, getting access to university means having to relocate and leave town. The closest university is in Bendigo or Albury, both of which are over two hours away. Attending university is increasingly a step that most young people take once they leave school. This ‘hollowing out’ of young people in our community has significant social and economic impacts. It creates situations where whole families leave town to be based closer to education opportunities and creates a gradual reduction in people available for playing sport and reduces money in the local economy to support the retail and hospitality sectors.
2.7
Uniting Country SA, when asked 'what can be done better with more support', responded with :
Investment in education and training opportunities across our regions. We have a lot of people that have to leave their communities to access that sort of service. Policies and procedures that encourage investment from industry within our service area as well to provide greater career opportunities and greater wealth within the community.
2.8
At an even more fundamental level, many Indigenous children are not receiving the education needed at a high school level:
There was a Dropping off the Edge report that was undertaken in 2015 and that defined the Aboriginal populations in Coober Pedy, Port Augusta, Whyalla, Marree and Oodnadatta as extremely disadvantaged. You were quoting the figures in relation to Newstart allowance just a little bit earlier. If you're in an area of extreme disadvantage there are health issues, education issues and housing issues and huge economic disadvantage. If you look [at] the NAPLAN results here in Port Augusta or Marree you'll find the same story: our kids are not getting through high school.
2.9
There is also a general recognition that improved access to education and training would be of assistance in terms of addressing regional inequality.
Young people and unemployment
2.10
Following on from above, submitters also noted that the relative lack of education and employment opportunities in regional Australia has contributed to the departure of young Australians to the major cities, which has in turn undermined the sustainability of regional towns.
2.11
Uniting Country SA observed:
We've got TAFE, and they do offer a range of courses, but there are not enough opportunities. And it's not just the TAFE stuff; I think it's investment and encouragement of apprenticeships. When you've only got one or two industries within a town, there are only so many apprenticeships that they can offer. You have to be realistic around that. The more opportunities and the most economic development there is in the community, the bigger the range of options that of options that are available to everyone in the community.
2.12
With regard to Tasmania, TasCOSS commented:
… people with higher levels of education and skills tend to move to areas with more and better employment opportunities. Graduates of Australian regional university campuses are very mobile, and the big cities are the beneficiaries: 62 per cent of graduates from ‘inner regional’ campuses relocate to major cities, according to one 2010 study, alongside 39 per cent of graduates from ‘outer regional’ areas.
The overwhelming motivation of graduates who move is for employment… with this factor outweighing the lifestyle benefits of country living. Tasmanian research has also found that a lack of suitable jobs is driving people out of Tasmania.
2.13
On a broader level, unemployment contributes to inequality and can have inter-generational effects entrenching inequality. The University of Western Australia observed:
The outcome for regional economies includes significant fluctuations in unemployment, job creation, labour force participation, and in- and out- migration. For households and individuals, there are flow-on implications in terms of income security, social wellbeing, willingness to invest locally, and engagement in social institutions and networks.
There is also research pointing to serious social disadvantage and dislocation that occurs as a result of the volatility and/or limited opportunity in employment. The evidence to suggests that this contributes negative outcomes in terms of physical and mental health, substance abuse, domestic violence, and crime. Moreover, there are now indicators that such disadvantage may be inter-generational and that in parts of regional Australia ‘entrenched inequality’ is now the norm.
2.14
The Grattan Institute did, however, provide a more nuanced view, arguing that while there is indeed a higher incidence of unemployment in regional Australia, it is not uniform. Moreover, this also reflects the 'patchy' nature of unemployment elsewhere:
Unemployment is not definitively worse in regional Australia. Some regional areas have low levels of unemployment – such as south-east NSW and western Victoria. Others, such as Far North Queensland and remote parts of the Northern Territory, have very high levels of unemployment. Unemployment in the cities is similarly patchy. Unemployment did not get markedly better or worse in regions as opposed to cities between 2011 and 2016.
Infrastructure and transport
2.15
The ability of the regional business and individuals to access reliable transport, either through road, air or rail, was also a consistent theme. There is a view that investment in such infrastructure has been inadequate and that this has contributed to regional disadvantage. The Town of Port Hedland commented:
A lack of investment and bureaucratic assistance to remove red tape associated with transport and communications infrastructure strongly impedes economic growth and development. This oversight by the state and federal governments reveals a disconnect with the reality of the significance and potential of the ToPH [Town of Port Hedland] to both state and national economies.
2.16
Mayor Claire McLaughlin of the Whyalla City Council observed:
We are a city with ageing infrastructure—both industry and community assets—with pressure on council's budget to balance financial sustainability against the need to upgrade assets to improve liveability…
Continued cost-shifting from other levels of government places significant strain on our ability to ensure financial sustainability in the future whilst managing and upgrading our ageing infrastructure to become a more desirable, livable city. We encourage increased funding allocations to upgrade regional community assets—something that is integral to our vision for the city.
…
A lot of our infrastructure is very old. It was built back in the 1970s, when the town was booming. We would definitely appreciate some more funding for infrastructure in Whyalla.
2.17
The Town of Port Hedland also made specific reference to the circumstances of Aboriginal communities:
The delivery and maintenance of infrastructure in remote Aboriginal communities is particularly challenging due to high costs and complicated logistics associated with long travel distances and harsh physical environments.
2.18
Greater Shepparton City Council reinforced the argument that the regions needed access to good infrastructure to fulfil their potential:
Greater Shepparton, like all regional centres has a number of challenges however infrastructure upgrades continue to be a major stumbling block for Greater Shepparton and the local economy. Ultimately, in order for the region to witness significant growth to its full potential, major infrastructure upgrades are required. Passenger rail in particular has been disappointingly under supported in relation to Greater Shepparton.
2.19
Ms Ros McLennan, General Secretary, Queensland Council of Unions, linked the issue of transport and infrastructure to that of youth unemployment. With reference to regional Queensland, he observed:
If you don't have access to a vehicle you can't get to Rockhampton to access unemployment. So there is a massive gap there in terms of connectivity and transport that is a huge barrier for youth unemployment and other unemployed people in accessing opportunities to work on the basis that they are living in a town that doesn't have connections to other areas where employment opportunities exist.
Digital connectivity
2.20
Like physical infrastructure, digital infrastructure is perceived to be inadequate for the needs of the regions, especially in comparison to the major cities. Edward River Council commented:
Mobile and internet connectivity are a further area of unequal access and disadvantage to regional, rural and remote areas. This impacts both economically and socially. From an economic perspective, increasingly to be productive in any industry a stable and fast connection is required for both mobile and internet. Unfortunately, in rural areas, this is often not available. This impacts on the ability of businesses to maintain productivity and efficiency with businesses that do have access to these services.
Whilst from a social perspective, living in rural areas is far more isolating than metropolitan areas. Often a mobile or internet connection is the only link that some people will have to ‘life outside the farm’. With poor and often no connectivity this can further enhance rural isolation and remove the positive benefits that neighbours and country communities can provide.
2.21
Similarly, representatives of the Northern Territory Government commented:
We're trying to run really significant businesses or have families do all of their education via the NBN satellite service, but it simply doesn't provide the level of reliability and the quantum of downloads and speeds and things that are needed to sustain those types of operations. It leaves people that are already receiving disadvantage through their location significantly more disadvantaged. We've had quite a number of examples brought to our attention through the Isolated Children's Parents' Association around the difficulties with educating children and being able to do their assignments and other things through the internet speeds that they have.
2.22
Mrs Kelly-Anne Paragreen, Owner, Showdown Equine Performance Equipment, provided a tangible example of the difficulties of running a business with poor internet connectivity:
I have an ADSL service. I can see the Telstra tower from my house. I can say that I have service, but the speed is an abhorrent. One of the ways I get around it is that I will set an alarm for 1 o'clock at night and get up and download things onto my Facebook page or onto my web page. It is not that bad all the time. Often I will sit in front of the computer on the ADSL and have my 4G phone, trying to work between the two of them. But when you're trying to expand your business and everything is online the demand is instant. They want you to be able to answer instantly. I do think we do a relatively good job, but in some circumstances, if I have a windy cloudy day, you might not get anything from me. I've had 4G service drop-out. If I don't stand in certain areas in my shed my phone will cut out. There are little things like that which really impede my competitiveness against other people.
2.23
The Shire of Carnamah observed that commercial realities had resulted in the regions being at a disadvantage with regard to high-quality internet services and this was a hindrance in term of regional Australia being able to be economically competitive:
Currently the national telecommunication service provider Telstra has indicted it will not, nor plans to provide, appropriate broadband service to region through the NBN rollout, as it has no commercial interest to do so. As a result many communities are trying to fund their own broad band service network—metropolitan areas are provided with this service, especially in the eastern states. Regions need it for education opportunities and to improve connectivity for agricultural businesses in regional WA. High speed NBN would benefit the community and allow the agricultural industry to take advantage of the latest technologies coming out of Europe, Canada and the USA. This would enable the sector and region to continue to develop and be a competitive contributor to the regional, national and global economies.
Inadequate government coordination
2.24
A lack of coordination between the three tiers of government was criticised in a number of submissions. The Bendigo and Adelaide Bank commented:
There has not been a long term integrated policy platform or focus on building community capacity in rural communities at a State or Federal level that has had any measure of continuity.
2.25
The Town of Port Hedland also commented:
At the federal level, funding streams and sources are available; however, due to a lack of coordination between the three tiers of government and poor local leadership, these sources are not utilised to their full potential.
State funding has become extremely tight and this is impacting heavily on the delivery of services. Funding cuts are forcing government agencies and non-government organisations (NGOs) to rethink the way services are delivered and establish dynamic partnerships that maximise and share resources.
2.26
With regard to the settlement of migrants, Dr Gerald Onsando submitted:
Improved co-ordination of federal, state and local government policies is critical in ensuring that communities in regional Australia to [sic] enjoy socioeconomic growth. The National Settlement Framework recommends that the responsibility for the resettlement of newly arrived migrants in Australia be shared between the federal, state, and local governments… Lack of effective co-ordination of federal, state and local government policies adversely affects implementation of projects that are meant to assist resettlement of culturally diverse communities in regional areas.
2.27
Professor Allan Dale, Professor of Tropical Regional Development, James Cook University, commented:
…there are around four or five different major regional development aspects of Australian government policy within regions and that these are very, very poorly connected, and the consistency and theory around some of these is not particularly clear as well.
2.28
Finally, Mr Peter McMillan, Executive Officer, Northern Territory Shelter Inc., commented about lack of government coordination with regard to housing and homelessness.
There's a pressing need for coordination between all levels of government, in respect of addressing housing and homelessness in the Northern Territory. There is a significant deficit of housing in remote communities but there are also very significant challenges with town camps in urban and regional areas. This enormous challenge that needs to be met by government in the Northern Territory cannot be done by the Northern Territory government alone... This is the jurisdiction with the least fiscal capacity to meet the challenge, so it's imperative that there be whole-of-government coordination, in terms of continued investment in remote housing and collaboration around funding for homelessness services and affordable housing more generally.
2.29
Evidence received at the hearing confirmed observations made in the submissions received by the committee. Referring to Whyalla, Port Augusta and Port Pirie, Ms Anita Crisp commented:
…the three cities lie—at a state level, at least—in three different regions for pretty well everything: planning, economic development, natural resources, health, education, policing and emergency services. We have a lot of duplication across government services and decision-making at a state level. You then add a layer in terms of Commonwealth boundaries and that becomes quite an interesting spaghetti map, really, which adds, again, another layer of complication. It just makes things inefficient and harder for us to navigate.
Financial Assistance Grants
2.30
With regard to government policy, the Financial Assistance Grants (FAGs) have also received comment in a number of submissions. Bland Shire observed that in the 2014 Federal Budget, a freeze in indexation of FAGs was introduced which, they argue, had a major impact on local councils. This freeze ended in the 2017‒18 Federal Budget. Bland Shire reported that:
The three-year freeze has had a harsh impact on NSW councils…NSW councils have missed out on up to $300 million. Local Government is one of the biggest sectors in our national economy, spending over $30 billion per annum nationally–including $11 billion in NSW where councils employ more than 50,000 people, mainly in rural and regional NSW.
In 1996, FAGs were equal to about 1 per cent of the total Commonwealth tax take. Despite an average 3.47 per cent annual growth rate in Australia’s Gross Domestic Product (GDP) from 1960 until 2017, FAGs have declined and now amount to approximately 0.57 per cent of Commonwealth tax revenue. This is a drop of about 43 per cent in relative terms, which can’t help but have a very significant impact on local government’s ability to provide and maintain community infrastructure.
Local government has long called upon the Commonwealth to provide FAGs at 1 per cent of taxation revenue to allow local governments to address the ever increasing backlog of infrastructure maintenance and renewal required which is estimated to be increasing by over $2 billion each year…
NSW councils are being squeezed from all sides, by rate-capping and also by cost-shifting by the State and Federal Governments, which cost councils more than $820 million per annum.
2.31
Similarly, Councillor Jenny Hill, Mayor of Townsville, commented on the impact of FAG funding cuts to Townsville:
Previously, particularly when the FAGs were introduced, they were set at two per cent of Commonwealth income. They are now down as low as 0.57 per cent, and the local government association has told me that Townsville has missed out on over $80 million since 1996 when the grants were frozen or the grants were decreased, and obviously that has an impact on us.
2.32
Mr John Banks, Chief Executive Officer of the Port Augusta City Council, observed a certain inflexibility in the FAG process. He observed:
Port Augusta for thousands of years has been a visiting and transitional place for Aboriginal people—for very good reasons: it's stinking hot up in the north, and so they come down to cool off, avoid higher power costs and all sorts of reasons. And that all happened for thousands of years. I think the federal assistance grants, which are distributed by the grants commission in South Australia, don't take account of those population fluctuations. Whenever the census data comes out, it probably underrepresents the need of the community at that time.
Health Care
2.33
Many submissions made comment on health and health care as an important regional equity issue. The Queensland Nurses & Midwives Union (QNMU) noted the omission of health and health care from the terms of reference for the inquiry. They submitted that health and health care was a key aspect of inequality that needed to be addressed:
…if governments and policy makers are looking at the indicators and impacts of regional inequalities, then health and health care are crucial in this inquiry. Health implications involves all public policies not just the health portfolio. By creating environments that promote better health, this will reduce inequalities which will be felt across the terms of reference, cited by the Committee.
2.34
Mrs Julie Rogalsky, Deputy Chair, Gippsland Primary Health Network, made some direct observations about health care and Medicare's inadequacies:
…we have pockets of poor health, disadvantage and limited access to medical and primary care services. The more rural you get, the harder that is.
…if there was only one take-home message, it would be: please direct a larger proportion of overall funding to the primary healthcare sector and preventative health, especially in rural and regional areas, and recognise that government must invest more funding—separate to how Medicare is funded—to support the expansion of general practice teams to deliver sustainable, equitable and high-value health care.
…Professor Paul Worley, the National Rural Health Commissioner, said in his opening address that Medicare is a universal health system but it's not an equitable system, felt more so in rural areas. And, depending on where you live, your access and the equitability of Medicare becomes more compromised…
With an ageing population, a growing burden of chronic and complex diseases and increasing expectations, government must recognise that there's a cost associated with health promotion, disease prevention, coordinated comprehensive care, quality, safety and early intervention that isn't captured in Medicare as it's currently funded.
2.35
West Tamar Council's submission provided some evidence for the QNWU's position for both physical and mental health:
Within the Beaconsfield—Beauty Point and District there is limited access to specialised and allied health care. There is difficulty in accessing General Practitioners and Specialists, and long waiting periods for appointments.
Individuals are required to travel to Launceston or Hobart to access appointments, which is not a major inconvenience for a one of[f] specialist appointment, however options are very limited in regards to transport and financial assistance if multiple appointments or treatments required.
Mental Health within the Beaconsfield—Beauty Point and District, the combination of low socioeconomic status and a geographically dispersed population of the Beaconsfield catchment area pose both risk and protective factors to the mental health of the population.
2.36
The City of Whyalla observed:
It is no secret that access to primary and secondary healthcare services in rural and remote areas is inequitable compared to the services provided in the metropolitan area. Given Whyalla's size and economic importance to the state, it is absurd that the city is unable to provide specialist services in many primary and secondary healthcare sectors.
2.37
The QNMU also provided evidence that living in remote and regional communities has affected the health of the Aboriginal and Torres Strait Island peoples:
Aboriginal and Torres Strait Islander people living in remote areas are more likely to have heart disease and diabetes than those Aboriginal and Torres Strait Islander people living in non-remote areas. They also have lower rates of breast and bowel cancer screening (Australian Institute of Health, 2016). Further, they are more likely to experience poor environmental health, live in overcrowded households and in houses that don’t have working facilities such as showers and toilets (Australian Indigenous HealthInfoNet, 2017).
Population and migration
2.38
The long-term drift of people from the regions to the major cities has reduced the capacity of regional communities to be self-sustaining. As fewer people live in the regions, it becomes less viable to maintain services which, in turn, further encourages the drift towards the major cities. The Shire of Flinders submitted:
Outback Queensland represents some 60 per cent of the state and has approximately 2 per cent of the state's population. Recent Census data indicates that many communities within outback Queensland are reducing in population, including Flinders Shire. It is becoming crucial that both the state and Australian Governments address the declining population and conduct a review of its policies and programs to ensure there is positive action taken.
2.39
The Grattan Institute noted that differences in economic growth per person between capital cities and the regions are not as large as might be expected and that income growth per person has not been obviously different between capitals and regions over the past decade. Indeed:
Most of the difference in total economic activity between capitals and regions results from different rates of population growth. Population has grown rapidly in capital cities over the past decade, while remote areas are losing population, or remain stagnant. Regional centres have drawn population from surrounding rural villages and towns, but in general are not growing as fast as capitals.
The differences in population growth between capitals and regions reflect longer-term structural changes in the Australian economy. An increasing proportion of the workforce is employed in service industries, which cluster in urban areas. By contrast, the loss of agriculture and manufacturing is most keenly felt in regional and outer-suburban areas.
2.40
Commenting on the northern Spencer Gulf in South Australia, Ms Anita Crisp noted that skilled migration was going to have to be part of addressing the region's future economic concerns.
Liveability, services and amenities
2.41
The need to create a pleasant desirable location and lifestyle is recognised as one way to attract and keep more people to regional Australia. There is a recognition that amenities, such as quality schools and entertainment precincts, are a key aspects of making Australia's regions an attractive place to live and work. Edward River Council submitted:
Populations are continuing to reduce in the face of centralisation of government services and departments and centralization of private industry. Additionally, the shift in the agricultural industry and move towards less employment within this industry mean that population is on the decline.
Unfortunately, with declining population, it means that many of the amenity type services (restaurants, cafes, cinemas etc.) are also reducing… Community amenity and services are important factors in every family decision to relocate somewhere and the reduction in amenity and services available is having a significant impact.
2.42
Ms Gai Sypher, referring to aged-care, also observed that commercial realities made providing such amenities increasingly difficult, given the declining population levels:
The majority of aged care services is supplied by not-for-profit service providers. The provision of aged care services particularly residential places—can be costly, and private for-profit providers sometimes regard remote and regional areas as too expensive for them to operate profitably…
Private providers are not found in locations that operate on marginally sustainable business models, such as those facilities that operate in remote and very remote communities. The concept of consumer choice is thus more constrained as you progress into more remote locations. In these locations, the need for legislated requirements and regulation is vital to guarantee both access to residential and community based aged care and to an acceptable quality of care.
2.43
In the context of access to legal services, the Law Council of Australia also described the limited prospects for regional populations accessing quality services:
In addition to cost, key barriers include distance and a lack of public transport, and technological barriers including poor quality internet access and limited telephone services, particularly in more remote areas...
RRR [rural, regional and remote] residents are often disadvantaged by a lack of local access to courts, particularly in smaller towns and more remote areas, as well as uncertainties in regional circuit dates, infrequent sittings, poor court amenities and infrastructure, and limited access to tribunals. A lack of quality alternative dispute resolution services, specialist courts, diversionary programs and support services which underpin alternative sentencing options have also been identified, further disadvantaging residents.
Centralisation of government agencies
2.44
The fact that many departments are located in large urban centres may result in decisions being made without a full appreciation of the circumstances in the regions. The Shire of Carnamah commented:
For regional communities the inequality caused by the offices of government agencies and services being in the metropolitan area is significant. Decisions are often made by public servants who have no understanding of the realities of regional life and commerce…
Further the move from the regional centres many years ago by government, has resulted in ongoing increased unemployment, underemployment, and reduced regional populations due to a lack of services and professional opportunities. For example if the branch of an agency is located in the regions—99 per cent of the executive and director roles are based in the metro area, so people who progress, need to leave the regions and regional communities are not involved in decision making.
2.45
This sentiment was echoed by Ms Crisp:
…this goes to the current government's policy of decentralisation of the public service—that certainly here in the Upper Spencer Gulf we're acutely aware, as we are right across regional South Australia, that the centralisation of the public service results in a direct loss of good jobs from our regional communities and residents living and working in the area, but it also results in a disconnect in policymaking and decision-making, because the more you centralise the public service the more decisions and policies are made through a city lens. So decisions are made for us, not necessarily with us, and that's becoming an increasing challenge as agencies are increasingly centralised.
2.46
Ms Crisp further commented that any decentralisation process or policy needs to be long-term:
I think that, for us, ideally a decentralisation of the public service would come from a long-term commitment by both state and Commonwealth governments to having a strong regional presence—not just a decision and a program but a sustained, ongoing, fundamental commitment to that.
2.47
Mr Geoff Dyke, Secretary, Mining and Energy Division, Victorian District Branch, CFMMEU, argued that technological development had produced greater opportunity for decentralisation of office workers which would be of benefit to regional Australia, and take pressure off the major cities:
With technology, the internet, email and stuff like that, there's really no restriction on a lot of government departments actually moving into a region. Obviously they need certain skill sets, depending on what that department specialises in. I would see that as providing the appropriate training at the local university and building the infrastructure. I don't see any obstacle, in this global age—when things are located even overseas and they're still performing functions for companies and so on—to government departments decentralising more. We see the stress on city infrastructure—roads and stuff like that. Moving to the country—and I'm talking more regional centres like Bendigo, Ballarat, Latrobe Valley—would reduce the strain on the infrastructure in the city. It would also benefit these regions.
Economic philosophies
2.48
Concerns were also expressed about the economic philosophy of free-markets, privatisation and de-regulation. Specifically, arguments were presented that the neo-liberal economic policy approach taken in the past three decades has had strong detrimental social effects even if one accepts that they have brought greater economic efficiencies.
2.49
Associate Professor Sally Anne Weller commented:
I talked about the privatisation. There are pockets of extreme disadvantage around Morwell which are partly a result of the very poorly handled privatisation during the Kennett years, which had no structural adjustment component to it at all; it just happened. A whole sequence of things happened as a result of that. Housing was abandoned, so poor people moved into that housing because it was cheap, but they moved into places where there were no jobs, so they got caught in a cycle of unemployment. All of the ways that housing interacts with labour markets, if it's left to market forces, will create pockets like that.
2.50
Professor Weller continued:
When it was decided to privatise the electricity sector in the nineties, the government made very serious rationalisations to make the businesses attractive to international investors, so at that time about 9,000 jobs were lost. I think it was possibly 30 per cent of the workforce that lost their jobs. That was a very unpleasant process where people were forced out and the selection of people for retrenchment was based not necessarily on rational criteria but on all sorts of other things.
2.51
Ms Cheryl Wragg, a long-standing resident of the La Trobe Valley, was particularly critical of current economic settings:
…the concentration of Victoria's electricity industry, our public hospital network and extensive public housing made the Latrobe Valley a target for corporatisation, the National Competition Policy and privatisation. Since the late 1980s, these policy settings have caused, and continue to cause, irrefutable serious damage to the children, women, families, communities, businesses, industrial skills base and economy of the Latrobe Valley. These same policies stalled Victoria's and Australia's energy transition and have entangled that transition in endless destructive politicking. The plight of our community and our regional economy is a subset of Australia's energy policy dysfunction. State and federal governments broke it, state and federal governments own these problems, and it is the responsibility of state and federal governments collectively to provide the leadership necessary to fix this.
Options proposed to improve regional inequality outcomes
2.52
The following proposals were put forward by submitters as possible options to improve regional inequality outcomes.
Ensure minimum standards
2.53
The Australian Human Rights Commission suggested that regional inequality should be approached from the perspective of Australia's commitment to guarantee basic rights:
The Commission is concerned that geographical location can negatively affect the ability of people to enjoy their rights and to have them realised. There are many reasons for this, including lack of access to basic services in regional, rural and remote locations. The Commission…has observed numerous instances where realisation of human rights has been frustrated by the impact of regional inequality.
2.54
With similar effect, the Grattan Institute suggested that the best way to approach the subject is on a social equity basis:
This may then provoke an honest conversation about what level of service governments are prepared to fund in more remote areas, given the costs of servicing them.
2.55
The Moree Plains Shire Council suggested that this can be operationalised in terms of specific services:
There is a clear need for mandated universal service obligations across key areas.
2.56
Moree Plains Shire Council specified infrastructure, health, education and internet access. Similarly, Edward River Council argued:
Another policy position that would assist in rural and remote areas is the establishment between Federal, State and Local Governments, and subsequent funding, of what are fundamental services and access that every Australian should be provided regardless of whether they live in a metropolitan, regional, rural or remote location.
Promote regional economic development
2.57
Many submissions emphasised local economic growth as the solution to inequality. Before looking at those submissions, it is worth noting that, in many cases, the wealth generated in the regions isn't staying there. Professor Weller observed:
A lot of the regional development theories that are floating around work on the assumption that there is already capital in place, that the regions they are talking about are things in themselves that have resources. If you think of all the wealth that has been created here over the last 100 years, none of it stayed here; it all got sent back to Melbourne. So there has never been a local—in America, there are even local banks; the money not only stays there, but goes into a bank that is located there and lends back to local people. We don't have that at all. All the money just flows straight out. And it changes the whole game. It means most of those international exemplars that we hear about are actually not relevant—because the money is always flowing away from place.
2.58
In their evidence to the committee, the Regional Development Australia (RDA) groups in South Australia argued that diversity of economic activity was necessary:
We know that for our regions to be economically and socially resilient they must have diversity of economic enterprises. My comment here is that, in order to have a diversity of economic activity and the resilience which results, we need to have vibrant, healthy communities, and in order to have vibrant, healthy communities we need to have a diversity of economic enterprises. The two are inextricably linked. Our largest enterprises are increasingly efficient—they need fewer people—and we need to drive diversity of enterprises in order to ensure the communities adjacent to these efficient enterprises can prosper.
Regional capitals
2.59
Several submissions focused on the idea of regional capitals and hub-and-spoke models, which would attempt to achieve some of the economies of scale available to bigger cities by providing for broader regional areas. However, it should be noted that some other submissions suggested that this model could involve reductions in services for smaller towns.
Tourism
2.60
Tourism presented opportunities in several regions. The Queensland Tourism Industry Council noted that tourism was decentralised as an industry, helped build skills across a range of levels, and, by providing infrastructure for visitors, improved amenity in destination regions. Airbnb described its business model as 'democratising capitalism', noting that the majority of its premises were in regional areas where the supply of accommodation was less elastic than in the cities.
Economic restructuring
2.61
Some submissions were from regions undergoing profound economic restructuring, including mining towns where the mines were coming to the end of their life or where the end of the building phase of the mining boom had meant a scaling back of economic activity. While the problems in such regions do appear intractable, some solutions were promoted in terms of capitalising on an existing base of skilled labour. The best prospects were for regions which were within reach of a major centre.
Universities
2.62
The positive role of regional universities featured in a number of submissions. The establishment of a university is a major infrastructure project which creates economic activity in its building, and as a continuing local employer in its own right. Universities can also function as innovation hubs and as sources of business advice and collaboration. They bring an educated and highly skilled work force and student base, which in itself can improve the amenity of a region. There is more discussion of universities in the section on education below.
Co-operatives
2.63
The Business Council of Co-operatives and Mutuals noted that the co–operative model of business ownership can meet a number of regional economic objectives. They distribute wealth by their broad ownership, and they can choose to forgo some profit in order to buy and employ locally. Bendigo and Adelaide Bank outlined a model of locally owned franchises in its submission.
Decentralisation of government agencies
2.64
There was a good deal of support in submissions for decentralisation of government agencies. The logic is fairly clear: a government department, whose location is not critical, is a large, labour intensive organisation; and moving economic activity from overcrowded cities to the regions has potential benefits on both sides.
2.65
The City of Murray Bridge observed:
Government decentralisation is better enabled now through the use of improved technology. The location of government departments, or branch or back office facilities, in regional areas has the benefit of creating employment opportunities and strengthening communities by creating certainty amongst the community through guaranteed income and spending created by a stable workforce. A prime example is the location of the Crown Land SA regional office in Berri, South Australia.
Decentralisation provides, as an associated benefit, better growth in human capital, economies of scale, acts as an attractor to other business, and services, including education and health by underpinning local economies.
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Conversely, RDA Australian Capital Territory argued that the impacts on the losing city should be considered: while they may be positive for the large metropoles of Sydney and Melbourne, they are likely to be negative for smaller cities such as Canberra and those in the surrounding regions of New South Wales.
Investing in infrastructure–physical and digital
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Investment in transport infrastructure was seen as important in addressing the isolation of rural communities and mitigating the poor access to many services, particularly health services. Transport was also mentioned in most of the submissions that dealt with tourism. The Maranoa Regional Council noted the importance of the national broadband network to the development of the tourism industry.
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Some submissions suggested that telecommunications technology had the potential to replace transport in some cases (for example, by Telemedicine for stroke), and could also be of great assistance in schooling isolated children. More generally it could facilitate business and alleviate isolation.
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Mr David Ross, Director of the Central Land Council, advocated government investment into infrastructure as one of several recommendations to assist Indigenous people fulfil their potential:
The government needs to take urgent action to reverse these trends. I know better than most that this problem is complex. However, I believe that there are clear steps that can be taken now to narrow these gaps. These include…investing in vital basic infrastructure in remote and very remote areas to improve opportunities for Aboriginal-driven development on Aboriginal land and sea, including in roads, water, power, telecommunications and access to essential health and education services.
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The South Australian Council of Social Service recommended a long-term approach to infrastructure–particularly with regard to investment in renewable energy:
…we need to also be thinking about how we invest in long-term pipelines. If we know this region of the world has a deep potential future in renewable industries, surely one of the things that we could be positioning students right now to be thinking about is a career in renewables—what types of jobs might in fact be available through a renewables industry—and we should be positioning our training institutions to provide that kind of opportunity for people to develop the skills in the region. That won't wo[rk] for everything, but we do that, right at the moment, there is a world-wide interest in investing in this region around the renewables kind of industry. So it would seem sensible for us to be thinking about some of those opportunities.
Education
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Regional universities play a positive and constructive role in the regions and there is more that can be done to address regional inequality through these institutions. Ms Leigh Kennedy, Head of Campus from the Federation University of Australia, commented:
Federation University is the only regional university in Latrobe Valley and Gippsland, and, as a result, the university plays a vital role in working with our communities, with current, past and future students and with all levels of government and industry in helping maintain and build a prosperous future. Through our teaching and research, we provide a source of new knowledge to the region, and through our highly skilled staff we contribute to innovation and attracting international talent. Federation University can, through its partnerships with industry, the community, the local VET provider and local, state and federal governments, help determine what sorts of skills and education programs are required to support business and workers with long-term transition. This type of curricular engagement and planning has not yet been comprehensively undertaken, and it will be very important for it to occur over what we hope will be a long-term, well-planned and phased transition. Knowing where there are shortages of skilled workers—and, in particular, in which industries are opportunities for the region—will help the university play a significant role in tackling inequality in Latrobe Valley.
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Ms Kennedy went on to say that those who study at regional universities are more likely to stay in the regions and contribute to their development:
We know that, when students study regionally, they're much more likely to stay in regions. Nearly 70 per cent of our bachelor graduates and 63 per cent of our postgraduate students are employed in regional areas. I think that really highlights the importance of regional universities and the importance of supporting regional universities, and how we're critical for developing thriving regions.
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Professor John Halsey, Emeritus Professor of Flinders University of South Australia and author on the Independent Review into Regional, Rural and Remote Education, recommended the following in terms of teacher education and training:
…in the training of teachers, we ought, as a national government, to substantially fund opportunities for teachers in training to undertake a high-quality placement in a rural area as part of their professional training. If you think of it over a 10-year period, with 10,000 young people each year going out, with resourcing, to rural and regional Australia, the cumulative impact that could have in rural and regional areas—economically, culturally, socially and so on—would be very significant. The only profession that does it, in terms of professional preparation, with considerable success is rural medicine.
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Professor Halsey also recommended that far more attention be given to vocational training:
…what we've done, intentionally or inadvertently, is downplay the value of high-quality voc ed[vocational education]. It has also not been well served by the status—if I can put it like that—the esteem and the privileging that has been attributed to and associated with university education. That in itself has a long legacy, partly left over from British settlement, where if you worked with your head you were somehow smarter than if you worked with your hands. That bifurcation has not served us well, and it is not serving us well at the moment. What we need is a much more productive head-hand-heart combination and a higher valuing and recognition of quality voc ed.
…
Fundamentally, what's got to happen is that we've got to put TAFE or quality training back in the bush, closer to where the needs are... The fundamental point you're asking me—and I'm sorry to ramble—is: should there be a greater focus on voc ed? Should we have more quality programs and a profile on it? Absolutely.
Linking local workforces with local jobs
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The South Australian Council of Social Service identified that there was a structural issue in terms of unemployment and argued that there needed to be a better approach in terms of marrying the local unemployed with the employment opportunities that are available:
…we have pools of people who are unemployed but who in fact are not skilled and ready for the workforce opportunities that are there. We need to continue to find ways to be better at connecting those unemployed people to the local opportunities. I suppose it goes to some of that boom-and-bust economic cycle that you were talking about with a couple of your other witnesses earlier. In fact, when there are those economic upturns, often what happens is that people are flown in for periods of time—maybe for the construction phase or for parts of the construction phase—and then they disappear. When we hear back from some employers when we ask them, 'Why are you not using local people to do that work?' they argue that (a) the local workforce is not sufficiently skilled and (b) it's a long-term ramp-up that they tend to require. So I think a major issue for us to be thinking about is how we can do better in connecting the local workforce and the local available potential workforce with work opportunities.
Migration
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Given that regional problems were often analysed in terms of a spiral of declining local populations leading to skills shortages, closure of businesses and withdrawal of services, several submissions suggested that newly arrived migrants may be a way of strengthening regional communities through population increase. Rural Australians for Refugees (RAR) commented:
…it is now recognised that rural and regional areas experience deficits in several key areas compared to metropolitan centres. There are known gaps in available workforce and skills. Ageing and dwindling populations, especially in small towns, are threaten[ing] the existence of schools and other services and other aspects of community life such as community organisations and sporting clubs.
It is RAR’s view that a different approach to resettling refugees in regional areas would go some way to mitigating these deficits and addressing regional inequality. RAR has been working with research institute Per Capita Australia to develop an alternative approach based on current, best practice program design, that delivers an enhanced government resettlement program, and which fits both with the needs of refugees and those of their host rural communities.
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Migrants could also help address specific labour market problems by being selected on a skills basis. Some regulation may, however, be hindering employment opportunities. Business SA explained:
…national thresholds such as the Temporary Skilled Migration Income Threshold inadequately consider regional differences across the country. The TSMIT, currently $53,900, now applies to the Regional Sponsored Migration Scheme Visa (subclass 187). Previously the RSMS simply required a visa holder to be paid the market rate, recognition that wage rates differ in regional areas compared to Sydney and Melbourne. The TSMIT rate now puts the RSMS visa option out of reach for regional employers seeking to fill skill gaps in their business; hindering growth in their business and their community. These changes are significantly affecting South Australia’s ability to attract skilled migrants.
Local and individual approaches
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Some submissions, especially those dealing with education, started with measures to improve the chances of individuals, or of particular regions. The Smith Family detailed programs of support and mentorship to encourage children to complete their schooling, recognising that for many children higher education is not an option because they have no notion of what it is about. Several universities have adopted these or similar programs, often with funding from the Higher Education Participation and Partnerships Program (HEPPP).
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The Isolated Children’s Parents’ Association of Australia Inc. is necessarily concerned with individuals, but proposes general policy settings that will assist them. For example, they proposed, amongst other things:
Assistance for Geographically Isolated Families;
Geographically Isolated Educational Grant Program for Rural and Remote Students; and
a Rural and Remote Education Foundation.
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The Foundation for Rural and Regional Renewal operates at a local level, with a large number of small grants for projects.
Better coordination of government policies
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There were many criticisms of the lack of co-ordination among levels of government. The favoured solution appeared to be a model like City Deals, which are partnerships between Commonwealth, state and municipal governments, the community (sometimes including universities) and business in an area. In particular, they offer longer term security of funding for infrastructure.
2.82
This coordination of policies could also extend to taxation and the distribution of funding. Some submissions called for an extension of tax concessions to regional areas, while submissions from councils called for an increase in funding for local government, for the reasons discussed above in the section on Financial Assistance Grants.
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Mr John Banks, Chief Executive Officer of the Port Augusta City Council, commented that:
We've found we haven't been able to rely upon assistance from the state or federal government.
…
…the policy framework and the assistance from the federal government has really not been there. Probably one of the primary ones is that the grant framework or the Building Better Regions or whatever grant is in vogue at the time generally requires a one-for-one type contribution, which we are simply not able to match.
Coordination for transition
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Evidence from overseas was presented showing what is possible when state and federal governments coordinate their policies and approach. At the Traralgon public hearing in November 2019, Professor Erik Eklund, Professor of History at the Federation University of Australia, brought the examples of Poland and Germany to the committee's attention. He observed how the former coal producing regions of Upper Silesia and the Ruhr valley were benefiting not only from transition cooperation between governments but the corporate sector as well:
I've had the benefit of working with colleagues from the Ruhr in Germany and also from Upper Silesia in southern Poland. There are probably a few things that spring to mind initially. The Ruhr is a very special case of a planned transition which happened over probably a 40-year period. The last coalmine closed in the Ruhr, I think, last year. Very early in the period they had established a trust fund to manage transition. One of the striking things about the Ruhr is the way in which state and federal governments worked together. It seemed to be a bipartisan approach to transition, and there was also strong engagement from the corporate sector.
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When questioned further on these arrangements, Professor Eklund responded:
What I'd like to see is political leadership which actually pulls together something special like that—an attempt to draw together all of those sectors in a genuine way to create a consensus around a strategic plan for the region. I'd like to see something which has bipartisan support. I think local development agencies do their best, but they struggle in a very politicised environment. I'd like to see something which has state and federal buy-in and, likewise, at this point, I haven't been able to discern a strong relationship around a consensus view between state and federal. So, yes, I agree, Senator Walsh: it would be great to see that kind of cooperation. It needs a lot of political capital and it needs a vision and leadership.
2.86
At the same hearing, Ms Cheryl Wragg provided to the committee an English language version of a document produced by the German Government. Titled Commission on Growth, Structural Change and Employment, the document is the Final Report from the Commission whose primary focus was on providing concrete prospects for new, 'future-proof' jobs in the regions, such as the Ruhr Valley and the brown-coal mining regions of Saxony, affected by the closure of coal mines.
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The Commission stands as a worthwhile example of how a federal government can coordinate various state governments, union, and other organisations and interest groups to produce a coordinated and consensus-driven outcome on large structural reform in the regions.
Committee comment
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The committee is grateful to those individuals and organisations that provided submissions and attended public hearings during the 45th and 46th Parliament. As can be seen from the discussion above, a wealth of information was gathered on the experiences of those who live in the regions and the issues that they face.
Impact of the COVID—19 pandemic on the inquiry
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The committee commenced this inquiry in the 45th Parliament with the intention of visiting as many regional areas as possible, and carried that approach into the 46th Parliament after the inquiry was re-referred.
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Unfortunately, along with everyone else, the committee’s work was curtailed by the COVID—19 pandemic. A planned program of regional visits had to be shelved and then, eventually, cancelled entirely. Closed borders, severely truncated airlines schedules and the risk of carrying infection to remote parts of Australia made the cancellation of our public hearing program inevitable. The committee regrets this outcome.
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That said, the five locations that the committee did visit: Emerald and Townsville in Queensland; Darwin in the Northern Territory; Port Augusta in South Australia; and Traralgon in Victoria, provided valuable insights into the challenges those communities face. The committee was impressed by the knowledge and passion of those individuals and organisations that we met there and we had hoped to continue this journey of discovery.
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However, given the realities of the pandemic, the committee has decided to complete the inquiry and report its findings to the parliament.
Previous inquiries into regional Australia. Many, many inquiries…
2.93
What the committee found during this inquiry was very much consistent with inquiries held previously—and there have been many of them. As part of its inquiry, the Select Committee on Regional Development and Decentralisation (RDD) tabled and published an Issues Paper which listed the many parliamentary inquiries conducted in the past 20 years as well as major research. Both lists are quite extensive. The RDD committee tabled its report in 28 June 2018—just over two years ago. There is currently a further Select Committee being administered by the House of Representatives—the Select Committee on Regional Australia. It is currently due to report on 31 March 2021. So, in the past three years there have been, including this one, three Commonwealth parliamentary inquiries into regional Australia. And that is just the Commonwealth Parliament.
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A number of witnesses commented to us about the large numbers of inquiries that have occurred with little result. For example, Professor Weller commented:
…There was a big inquiry in 2002 and another one in 2008, always trying to think of ways to regenerate this economy. All came to nothing. The central problem is that capital will not invest here.
CHAIR: Did those reviews produce reports?
Prof. Weller: Yes, I can give you a filing cabinet full of reports.
CHAIR: So they were in 2002 and 2008?
Prof. Weller: And there was another one in the mid-nineties.
CHAIR: Were the reports published?
Prof. Weller: The state government task force is the major one. I can give you the references if you want them. I've got a cabinet full of these things.
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Given the extensive research done into regional Australia and the many reports that have been written, it is the view of the committee that now is the time to take stock of those findings and advance a positive regional development program—a program that builds on what has been learned through the many and varied inquiries and the expertise of those who live in the regions.
The COVID—19 reset
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The global pandemic has been one of the most significant events of the past 50 years. Almost every nation on earth has been impacted—some profoundly. This has brought new thinking to the economic, social and political issues confronting us.
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World Economic Forum Founder and Executive Chairman, Klaus Schwab, and Co-Founder of Monthly Barometer, Mr Thierry Malleret, explore these themes in their new book, COVID—19: The Great Reset. They argued that the pandemic represents an opportunity for new thinking to deal with existing problems:
The COVID—19 pandemic has plunged our world in its entirety—and each of us individually—into the most challenging times we’ve faced in generations. It is a defining moment—we will be dealing with its fallout for years, and many things will change forever. It has wrought (and will continue to do so) economic disruption of monumental proportions, creating risk and volatility on multiple fronts—political, social, geopolitical—while exacerbating deep concerns about the environment and also extending the reach (pernicious or otherwise) of technology into our lives.
No industry or business will be spared from the impact of these changes. Millions of companies risk disappearing and many industries face an uncertain future; a few will thrive.
On an individual basis, for many, life as they’ve always known it is unravelling at alarming speed. This said, acute crises favour introspection and foster the potential for transformation.
The fault lines of today’s world—most notably: social divides, lack of fairness, absence of cooperation, failure of global governance and leadership and the critical degradation of our natural assets—lie exposed as never before, and many now feel the time for reinvention may have dawned.
New thinking on work
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We have already seen in Australia new thinking in terms of working from home. The Australian Public Service and private enterprises around the country have discovered that it is possible to have large segments of their workforce successfully working from home as long as there is fast and reliable internet access. This is something that regional institutions have previously suggested as a method to provide more employment for workers based in the regions and to allow public sector employees to continue to work for departments based in the capital cities despite living in the regions. The pandemic has forced an experiment upon us, and it has been found to work. Let us now make it work for regional Australia.
New thinking on cities
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Regional Australia has also been the least affected by the pandemic. Indeed, there are parts of the country that have not endured any infections at all. The big outbreaks have been in the major population centres of Sydney and Melbourne.
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As it currently stands, Australia’s population was 25.7 million people at 31 March 2020. Sydney's population at 30 June 2019 was estimated at 5.3 million and Melbourne's at 5.1 million. Thus, approximately 40 per cent of Australia's population lives in these two metropolises. Although it is too soon to conclude a definite trend exists, there is some initial evidence that the pandemic has inspired some people to reconsider city living and look to the regions.
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Media reporting over the past few months have shown that the combination of the pandemic impact, high real-estate prices and office rent prices in the major cities, and the ability to work from home through digital technology has caused at least some of the population to consider leaving the major cities permanently for the regions.
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While it is still early days, there may now be an increased desire for Australians to move to the regions to take advantage of lower house prices, a more relaxed life-style, and a desire for a safer environment with regard to illness and health. This desire, with the previously mentioned opportunities to work from home, should also be made to work for regional Australia.
New thinking on government expenditure: Debt and Deficits are not a Disaster
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Over the past 25 years, the oft repeated and simplistic mantra of ‘surplus good’/’deficit bad’ has implied to the Australian public that public investment financed through the selling of government bonds—i.e. taking on government debt—is to be avoided. Despite this, the Morrison Government’s response to the pandemic has been to borrow heavily to support the economy. The Australian Government’s debt will now balloon to over $1 trillion. This financial year alone the deficit is expected to be over $200 billion. The committee does not condemn this policy decision. Rather it supports it as it believes that borrowing to support the economy in times of crisis is appropriate. The committee also believes that it was appropriate for the previous Rudd/Gillard Labor Government to have engaged in deficit spending to support the Australian economy during the Global Financial Crisis of
2008–2009. There are times for surpluses and there are times for deficits, and a wise policy maker knows what is called for. The Morrison Government’s response has, the committee hopes, ended the simplistic ‘surplus good’/’deficit bad’ economic mantra of the past two decades.
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The Morrison Government has now projected deficits to be the norm of the next decade or so while the economy rebuilds in response to the pandemic downturn. The committee believes that this presents a golden opportunity to revive and support the regions. The interest rates that apply to the new debt are some of the lowest in history—taking on debt has never been more manageable. Even prior to the pandemic, the World Economic Forum was reporting that interest rates for government borrowings were are their lowest rate for centuries. Indeed:
Today, we live in a low-interest-rate environment, where the cost of borrowing for governments and institutions is lower than the historical average. It is easy to see that interest rates are at generational lows, but did you know that they are also at 670-year lows?
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The key issue is not the level of debt, rather what the money is spent on. If debt is sustainable in terms of interest rate levels and the debt is incurred on investments that accrue value to the nation and contribute to the debt being paid down in the future, then there is little risk.
A regional infrastructure-led recovery
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The 2020‒21 Commonwealth Budget featured significant funding for Australia’s infrastructure with a $7.5 billion investment in transport infrastructure around the country as part of the Commnwealth Government’s COVID—19 economic recovery plan. Since the pandemic's start the government has committed to invest an additional $14 billion in new and accelerated infrastructure projects over the next four years.
Infrastructure for the regions
2.107
Given that infrastructure spending is intended to lead Australia out of the worst recession in 90 years, that money is cheap and there is now an acceptance that government investment is appropriate, it is time to reconsider our approach to Australia's regions.
2.108
This, and other inquiries, have repeatedly heard that for the regions to prosper and thus reduce inequality they need large and sustained investment in:
infrastructure—both physical and digital including;
reliable and high-speed internet;
primary and high schools;
amenities and healthcare;
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This list in not exhaustive and further areas suitable for investment are likely still to be identified.
2.110
Now is time to make the necessary investments in the regions to develop them, but also stimulate and rebuild the entire Australian economy after the pandemic downturn. The next decade presents a once in a century opportunity to make those investments and allow regional Australia to fulfil its potential.
2.111
The Commonwealth Budget, announced on Tuesday, 6 October 2020, earmarked $552.9 million over four years from 2020–21 (and $16.6 million in 2024–25 and $16.1 million per year ongoing) for a package of measures to support regional Australia to recover from the impacts of COVID-19 and recent natural disasters, build resilience to future economic shocks and support long term economic growth.
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However, this is less than $140 million a year for a country the size of continental Europe and the continental United States.
2.113
Much more is needed to invest on the scale that is required to make a serious difference in terms of developing regional Australia and through that addressing the sub-optimal employment and social circumstances being experienced by the Australians who live there. Accordingly, the committee recommends that the government re-examine its regional infrastructure spending plan from the ground up and make an expanded infrastructure programme the basis for its stimulus plan for Australia’s economic recovery from the pandemic’s impacts.
2.114
The committee recommends that the Commonwealth Government fundamentally re-examine its regional infrastructure spending plan and make an expanded infrastructure programme the basis for its stimulus plan for Australia’s economic recovery from the impacts of the COVID—19 pandemic.
Commonwealth coordination
2.115
The examples provided to the committee about the work done by the Polish and German Governments in the European Union show what is possible when a central or federal government take the initiative and co-ordinate structural reform programs aimed at developing their regions.
2.116
The Commonwealth Government has available to it a vast pool of knowledge and expertise through relevant government departments and agencies. In addition, universities around the country as well as state and local government and community organisations have further additional knowledge and skills to bring to the table.
2.117
And they will be needed. The point has been made previously that there is no such thing as 'regional Australia'. Indeed:
Regional Australia is a cultural imagery: in practice every region is different.
2.118
Those local governments, regional associations and community organisations on the ground right throughout the country will need to be the main drivers and sources of information on what is needed for their region. For the needs of Geraldton in Western Australia, will be very different from the needs of the La Trobe Valley in Victoria, or the Iron Triangle in South Australia. And they will be different again to what support and development is needed in northern Tasmania or western New South Wales. It will not be the job of the Commonwealth to advise them, but rather listen to them and coordinate responses based on their advice.
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A first step in this process could be initial round table consultations in Canberra with Commonwealth departments and national organisations. Potential contributors might include:
Department of Infrastructure and Regional Development;
Department of Education and Training;
Department of Agriculture and Water Resources;
Department of Home Affairs (Immigration and Citizenship);
Regional Australia Institute;
Regional Development Australia;
Centre for Aboriginal Economic Policy Research;
Closing The Gap Clearinghouse;
National Indigenous Australians Agency;
National Aboriginal Community Controlled Health Organisation;
National Farmers' Federation;
Regional Universities Network;
Australian Council of Social Services;
Australian Council of Trade Unions; and
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Again, this list is not exhaustive.
2.121
Secondly, the Commonwealth can then liaise with:
State and territory governments;
other regional associations; and
2.122
These consultations can provide the basis for the necessary coordination for the Commonwealth Government to undertake.
2.123
In order to establish to most appropriate response in terms of regional investment, the committee recommends the Commonwealth Government undertake a series of round table consultations with:
Commonwealth departments and agencies;
State, and Local Governments;
regional associations; and
Final comments
2.124
For all Australians to enjoy access to quality education and quality health-care, and access to gainful employment is a goal all governments should aspire to.
2.125
Through many inquiries, governance institutions are now well-informed about the challenges confronting the regions.
2.126
For the regions to fulfil their potential, they need investment‑investment to ensure that existing and potential businesses located in regional Australia have access to the resources they need to produce their goods and services, and also get those goods and services reliably to the markets they serve, be they domestic or international.
2.127
It must be remembered that it is the regions that provide much of Australia's wealth—particularly mining and agricultural exports—but nowhere near as much has been invested back into them. This is particularly true as 'Fly-In, Fly-Out' working routines have become more prevalent. Rather than people moving to the regions and building communities, they come to work only and then leave. This leaves the regions at a disadvantage.
2.128
For the regions to prosper, and for businesses to feel confident about establishing themselves in the regions or expanding into them, there needs to be people. Major infrastructure investment is needed, but a population base for those businesses to have enough workers and a sustainable population base for them to be profitable is also needed.
2.129
And for people to stay in the regions, or indeed, move into them from the major cities, then those people must be confident that they will have all the services and amenities that are expected in modern life. Not only schools for the children and hospitals for the old and sick, but also galleries, cafes, restaurants, cinemas, sporting complexes and the like must be at hand so that people can be confident that they will have a pleasant and fulfilled life wherever they choose to live. These amenities too must be facilitated through investment into the regions.
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This committee and others have long heard from those in the regions about what is required to assist them prosper. There exists now the opportunity to finally tend to the long-standing wishes of regions to have the investment needed to assist their communities to thrive and fulfil their potential.
Senator Alex Gallacher
Chair