Chapter 5.1
Strategies to support regional development and value-adding
5.34 During the inquiry various bodies and individuals set out
specific actions and strategies that they believe governments should undertake to support
regional development and accompanying value-adding activities. These strategies and calls
for action are set out below. At the end of this chapter the committee presents a series
of recommendations and conclusions that in part have been drawn from these suggestions as
well as from issues raised in other sections of the chapter.
5.35 The Working Group on Development in Rural Areas prepared a paper
for the consideration of SCARM [36]
that outlined possible roles government can play in the promotion of value-adding
activities in regional areas. According to the paper:
Government can assist in establishing the policy context and economic
climate that will encourage private sector and community initiative,
change attitudes and motivate people. The Commonwealth Government, in
partnership with State and local governments and the rural sector, can
facilitate change and business development through providing an effective
institutional framework, leadership and policy direction - for example
in relation to infrastructure, incentives/penalties, strategic funding,
information, training, improved service delivery and through removing
impediments to growth. [37]
5.36 At the end of its paper WGDRA sets out elements of an action
plan designed to support rural development, including the operation of value-adding
enterprises. The action plan called for:
- all governments in Australia to promote rural development as a
national priority;
- the improvement of intergovernmental consultation and cooperation on
rural development;
- the development of better processes among government and
non-government agencies for the coordination of policies and programs for the development
of rural areas;
- the development of knowledge and understanding of the economic,
environmental and social forces affecting sustainable development in rural areas;
- the identification of impediments to commercial linkages in rural
areas “both in terms of the production-marketing chain for individual producers, and
in terms of cross-linkages between the range of enterprises and services in rural
areas”; and
- the initiation of a consultative process at all levels in the community
to hasten adoption of policies to achieve rural development. [38]
5.37 The Riverina Regional Development Board suggested in its
submission to the inquiry that governments be encouraged to develop a strategic approach
to achieving increased value- adding by:
- identifying target centres suitable for the establishment of value
adding industries;
- providing funding for social infrastructure in centres in which
value-adding activities can be conducted;
- providing funding for industrial infrastructure in centres assessed
as being suitable for value-adding activities;
- ensuring financial assistance is available to support value-adding
activities in regional areas; and
- supporting the development of research and development organisations
in regional areas based on existing State and Federal agencies and Universities.
[39]
5.38 In evidence to the inquiry Mr Mark Roberts, Executive Officer with
the Riverina Regional Development Board argued that there was a need “to
take a holistic approach to regional development and to look at value
adding agricultural industries as a key element of our regional economy,
which need to be set into the broader context of regional development
policy.” [40]
5.39 The Agricultural Bureau of New South Wales in its submission
set out a list of actions governments could undertake to support and attract value-adding
industries to regional areas, including:
- provision of infrastructure and service delivery to regional areas;
- taxation incentives to attract and retain value-adding enterprises in
regional areas;
- ensuring that transport, fuel and electricity costs for value-adding
enterprises in regional areas are competitive with charges in urban centres; and
- the fast tracking and reduction of government “red tape”
in relation to the establishment of value-adding activities. [41]
5.40 The Commonwealth then Department of Housing and Regional
Development considered that the following strategies under the Regional Development
Program would enhance the process of value-adding in agricultural production:
- establishing a planning framework for agricultural and associate
industry sectors through the funding of integrated regional strategies;
- mobilising community support for regional development through
empowering relevant groups to take responsibility for administering support program
components;
- the provision of appropriate infrastructure development in rural
areas; and
- improving appropriate management skills by everyone involved in regional
development. [42]
Conclusions and recommendations
It is evident to the Committee that for regional development to take
place in Australia, including the establishment and profitable operation of value-adding
activities, close cooperation between all levels of government is necessary. The Committee
acknowledges the view of the Victorian Government that Commonwealth programs designed to
support value-adding must be based on a “set of agreed principles”. Following on
from its recommendation in chapter 3 of this report, concerning the need for coordination
between the Commonwealth and State governments regarding value-adding support programs,
the Committee further recommends that:
- concerning the most appropriate form of encouragement that can be
provided to Commonwealth authorities closely consult with State and local authorities
promote regional development and related value-adding activities; and
- whenever possible Commonwealth regional development programs closely
involve both State and local authorities in their implementation.
5.41 The Committee accepts that the Rural Development Organisations
provide valuable feedback to the Commonwealth Government on the development needs of
regional areas. State and local government authorities are also involved in these RDOs.
However, the Committee believes there is a need to upgrade and improve coordination
between all levels of government in the promotion of value-adding activities in regional
area. The Committee therefore recommends that the Commonwealth Government consider methods
to improve the level of State and local government involvement in RDOs to improve
communication between the three levels of government in relation to regional development.
5.42 The Committee is firmly of the view that without coordination
between the three levels of government, in consultation with relevant industries and local
people, sustainable regional development and related value-adding activities are made more
difficult. Suggested strategies to achieve regional development and value-adding are
complicated without consultation and cooperation between governments and other relevant
groups.
5.43 The Committee believes regions attempting to increase
value-adding in their own areas can learn from the experiences of other regions.
Therefore, the Committee would encourage all authorities involved in a particular regional
development program to consider consulting with authorities involved in similar
development programs within or outside their own State . Certainly Commonwealth
authorities should have an overview of what is occurring in various projects nationally
but the Committee received no indication during the inquiry that other participants, such
as State and local authorities and industry groups, consult with similar authorities and
bodies elsewhere to learn from their experiences.
5.44 The existence of appropriate infrastructure such as roads and
rail lines provide a major attraction for industries to locate in regional areas. Private
companies do not have the resources to construct major infrastructure, only governments
have that ability. Various government bodies, Commonwealth and State are involved in the
construction of infrastructure either alone or cooperatively. The Committee is of the view
that in deciding on the construction or improvement of infrastructure in regional areas
governments must give consideration to how such infrastructure can stimulate, or maintain,
value-adding activities in regional areas.
5.45 Adequate financing of value-adding activities is essential for
the establishment of viable value-adding enterprises in regional areas. As noted in
chapter 3 of the report there is a wide range of diverse government programs, both
Commonwealth and State that support value-adding activities in Australia, including
regional areas. Many of these programs supply financial support for value-adding
enterprises. Although the additional allocation of funds for regional development, in
relation to value-adding, would no doubt be appreciated by supporters of such development
the inquiry received no detailed evidence that there is an inadequate allocation of money
for value-adding in regional areas.
Footnotes
[36] SCARM is the standing committee of
ARMCANZ
[37] Evidence, DPIE, p. 900.
[38] Evidence, DPIE, p. 904.
[39] Evidence, Riverina Regional
Development Board, p. 980; see also Evidence, Riverina Regional Development Board,
p. 985. For information on the approach and experience of the Riverina Regional
Development Board in relation to regional development see Evidence, Riverina
Regional Development Board, pp. 982-985.
[40] Evidence, Riverina Regional
Development Board, p. 981.
[41] Submission, Agricultural
Bureau of New South Wales Inc, p. 2.
[42] Evidence, Department of
Housing and Regional Development, pp. 945, 949.