Chapter 4 Emerging industries
Introduction
4.1
Identifying emerging industries for the Indian Ocean Territories (IOTs)
economies with the potential for economic growth is being considered through
various mechanisms at both the federal and local levels. There is recognition
that in both IOTs economies, tourism has the potential to grow and emerge as a
sustainable industry, creating a stable economic base from which other
industries could emerge.
4.2
The long term, economy-wide impact of establishing sustainable
industries for the IOTs would be an improvement in economic diversity which
would have the effect of creating new employment opportunities. Over time,
development of self sustaining economies would lead to improvements in the
standard of living and lessen the reliance on government funding. More
self-sustaining economies could also be expected to have a stabilising effect
on the IOTs populations.
4.3
However, future measures implemented to assist with industry development
would need to be highly suitable to the economic, physical and social landscape
of the IOTs.
4.4
This chapter examines evidence which canvases possible industries which
have the potential to be grown and sustain the IOTs economies.
Impact of the changing demographic
4.5
The changing demographic of the IOTs is an important consideration in
developing strategies for new and existing industries with the aim of achieving
sustainable economic growth.
4.6
Both the Shires of Christmas Island and Cocos (Keeling) Islands are
aware of the negative impact on population of contractions to industry and
static economic growth. In particular, both shires have highlighted the
concerns they have in regard to youth leaving the IOTs and the concurrent
increase in the remaining ageing populations.
4.7
The Attorney-General’s Department (AGD) stated ‘anecdotal evidence
suggests the Christmas Island population may now be somewhat lower than that
reported in the 2006 Census, while the population of the Cocos (Keeling) Islands
has remained stable.’[1]
4.8
In this respect, the Shire of Christmas Island commented on the need to
build a diverse, robust economy to retain its youth and lessen the decrease in
population. The Shire of Christmas Island stated:
We cannot be restricted to mining and tourism if we want to
plan a real future for Christmas Island which will absorb the skills and the
professional development of young people on Christmas Island, or young people
we hope to bring back to Christmas Island to work, to build our community without
people, rather than see the drain that is occurring now in the younger
generation, particularly the generation that pursues higher education and never
comes back. So this is a central issue.[2]
4.9
The Shire of Cocos (Keeling) Islands stated that it is strategically
examining its demographic with a view to retaining its younger population
through targeted youth employment measures. The Shire of Cocos (Keeling)
Islands stated:
…part of what the shire is doing as well is trying to look at
the youth—and also the aged, but more so the youth—is in regard to unemployment
and trying to find a balance. There is no point in skilling people up if there
are no jobs to actually employ them, but we want to get people out into the
workplace and get them active rather than have the young ones who have not been
able to get a job getting used to not having a job.[3]
4.10
The AGD sponsored report on the economy of the IOTs found persons in younger
age groups are leaving the islands to pursue educational opportunities or
because of a general desire to experience the wider world. Persons in the older
working-age groups are leaving the islands to seek further education and other
employment options not available in the IOTs.[4]
4.11
In regard to aged care, the Shire of Cocos (Keeling) Islands explained
that aged persons are cared for within the family structure. Further, the Shire
of Cocos (Keeling) Islands commented on its recent assessment of aged care
needs and stated:
The manager of Indian Ocean Territories Health Services (IOTsHS)
was here recently and had quite a few discussions with families regarding the
care of the aged. The manager of IOTsHS comes from a background of aged care
and recognises that a facility here would not benefit, because of the
structure. People would not be as happy there as they are in their home.[5]
4.12
The Christmas Island Chamber of Commerce (CICC) commented on the Shire
of Christmas Island’s capacity to care for its ageing population into the
future and stated:
Given the increase in senior members on the island and the
natural fact that we are not keeping young people on the island, we will have a
continuing increase in the ageing population. I do not believe that the shire
will have the capacity to handle that by itself. Certainly, the facilities that
are available, even given the excellent job that the shire does, are
restricted. I believe the health care facilities are virtually non-existent for
palliative care and that type of thing.[6]
4.13
Mr Ron Grant explained the negative impact a declining population could
have on the Cocos (Keeling) Islands’ economy. Mr Grant advocated reducing the
economy’s reliance on Government funding as a solution to developing the
economy and stated:
Although the government is pouring in money, the economy is
not developing. You are going to come to a stage where your population just
keeps dropping and dropping. It is not unique on Cocos; there are many rural
areas in Australia which have the same problem. But, slowly and surely, as your
population gets older they cannot afford to maintain houses, there is less
population, the cost of services and goods goes up. It is a vicious cycle. So
we have to get away from this ‘dependent upon the government for the provision
of goods and services or on Centrelink benefits’. Even though it is small
scale, we must start driving it.[7]
4.14
The Cocos Congress put the view that ‘increases to accommodation and
infrastructure and retaining services are [the] keys to [Cocos (Keeling)
Islands’] ability to increase or maintain [its] population.’[8]
Potential new growth industries
4.15
Suggestions for potential industry growth areas for Christmas Island
included:
n tourism and ecotourism[9]
n education services
and partnerships[10]
n agriculture through
co-operative farming[11]
n renewable energy[12]
n exporting health
services[13]
n large scale social
capital ventures[14]
n an international
scientific research station[15]
n a marine research
facility[16]
n conference tourism.[17]
4.16
Suggestions for potential industry growth areas for the Cocos (Keeling)
Islands included:
n tourism[18]
n aquaculture and
agriculture (including hydroponics).[19]
4.17
Mr Ron Grant advocated a strategic approach to identifying sustainable
industries for development and stated:
… although tourism has been identified, there really needs to
be a good, hard look at other areas also. We are not talking about a large
increase in employment; we are talking 20, 30, 40 people, which would make a
huge increase to the social life of Cocos. ... Really, we need to sit back and
look at those areas that we can develop, which include tourism, marine
resources and land resources.[20]
Identifying niche markets
4.18
The majority of suggestions put forward for new growth industries
incorporates the unique natural and economic characteristics of the IOTs. Identifying
and exploiting niche markets such as the ecotourism market was put forward as a
solution for creating economic growth for both IOTs economies.
4.19
The Shire of Christmas Island commented that ‘there is a definite perception
that people want it [Christmas Island] to be a tourism destination and
particularly a niche tourism destination.’[21]
4.20
Dr Nic Dunlop elaborated on the idea of establishing Christmas Island as
a niche tourism destination and stated:
… we are talking about not one niche market but many small
niche markets. It is not going to be equivalent to Bali, where it is about
shopping and going to the beach. It is about targeting your markets for
specific resources that Christmas Island offers.[22]
4.21
Mr Ron Grant advocated a targeted approach to identifying sustainable
industries for the Cocos (Keeling) Islands, with a focus on niche markets in South
East Asia. Mr Grant stated:
Once you can identify what your economic segments are going
to be, you have got to identify your market and that is absolutely critical.
From a personal point of view, the market has got to be South-East Asia.
South-East Asia has got about 300 million people; Western Australia has
got about two million. South-East Asia has far more areas of access
internationally than Perth does. So the logic is to try and target South-East Asia for services or products which are niche markets that can be sustained.[23]
Tourism (including ecotourism)
4.22
The IOTs tourism industry is still in its early stages of development. Tourism
is the preferred industry for further development in the IOTs because it is
considered to offer the ‘greatest potential for economic growth’[24]
and is expected to have a positive flow-on effect for local business
development.
4.23
Developing the IOTs tourism industry presents challenges in respect to
promoting and marketing the IOTs as a tourist destination. In addition, there
are the accompanying industry development issues of: upgrading and developing
tourism infrastructure, and improving accessibility of the IOTs to a larger
market by lowering airfares and improving the frequency of flights.
4.24
Tourism on Christmas Island and the Cocos (Keeling) Islands is lagging
in respect to the other Indian Ocean communities of Andaman Islands, the
Maldives, Seychelles, Mauritius and Reunion Island.[25]
4.25
The Christmas Island Tourism Association (CITA) was of the view that
with appropriate investment and planning towards destination marketing for
breaking into new markets that it would take at least two and a half years
before tourism would begin to expand and provide returns.[26]
4.26
Understanding the impacts that a vibrant tourism industry would impose
on the natural environment is seen as vital to future tourism planning. In
regard to ecotourism, the degradation on the natural environment of an increased
tourism industry is of concern. It could be argued that increasing tourism or
creating a market for mass volume tourism could in time deteriorate natural
resources and so lessen the overall tourist experience.
Developing the tourism industry
Christmas Island
4.27
The Christmas Island tourism industry consists of a number of small
businesses which are supported by the Government funded CITA.[27]
4.28
The tourism industry on Christmas Island is centred on nature-based
activities and the island’s cultural heritage, with the major tourist attraction
the annual migration of red crabs. Other nature-based activities include:
boating, diving and fishing tours, snorkelling, sightseeing, and bird watching
tours.[28]
4.29
Tourism infrastructure includes: walking and driving tracks and viewing
platforms, boardwalks and camping sites throughout the national park. Accommodation
capacity is 150 rooms at the two or three star level, with most accommodation
located in the civic centre of Christmas Island.[29]
4.30
CITA commented on its concerns about issues hindering the operation of
the current tourism market for Christmas Island. In particular, CITA drew attention
to the following:
n Flights to the IOTs
are very expensive and can not compete with other cheaper destinations offering
similar or better tourist experiences.
n There is limited
tourism promotion and marketing.
n Christmas Island’s
capacity to generate tourism revenue is negatively affected by people who set
up business with the sole aim of seeking a ‘sea change’.
n There is no land
release and land development plan in place.
n Airport immigration
facilities are not adequate.
n There are a limited
number of hire cars.[30]
n No economic modelling
or social impact studies have been undertaken in regard to the economic impact
of the Christmas Island Reception and Processing Centre.
n Limited access to
broadband internet services and the inability to subsequently partake in
e-commerce.
n There is no
Destination Management Strategic Plan in place.[31]
4.31
Dr Nic Dunlop commented on how deterioration of the natural environment
would have a negative impact on tourism. Dr Nic Dunlop stated:
Another significant issue with the tourism industry on the
island is what is now a fairly rapid decline in environmental quality which is
occurring on the island. Some of you may be aware that one of the island’s
mammals, a small bat, changed in status from ‘critically endangered’ to
‘presumed extinct’ last week, which somewhat ironically was Threatened Species
Week. There are a number of other serious threats now active in the Christmas
Island environment—certainly terrestrially and possibly also in the marine
environment—related to climate change which mean that the quality of the island
experience is under threat. Whilst that is a threat for conservation, it is
also a threat to the tourism future of the island.[32]
4.32
Dr Dunlop noted the importance of preserving the natural environment not
only for its intrinsic value, but also in regard to tourism and stated:
In terms of the island’s reputation for tourism, Attenborough
reckoned that the red crab migration was one of the greatest spectacles he had
ever seen and he was probably right. So from a tourism point of view it is very
important. The whole forest ecology hinges on the terrestrial species of crabs,
and if we lose those then we can expect a very significant decline in
environmental quality.[33]
4.33
Mrs R Peter also commented on the need to protect Christmas Island’s
natural environment because of the implications for tourism and stated:
The existing program of eradicating the Crazy Yellow Ants
with biannual bating must be continued straight away. This will safeguard the
population of Red Crab which is the most important draw card for tourism. There
must also be immediate effort to eradicate feral fowl, feral cats and giant
African snails.[34]
4.34
The Shire of Christmas Island stated that it believes Christmas Island’s
tourism sector needs both mass volume tourism and ecotourism. The Shire of
Christmas Island stated:
Some people in the tourism industry argue that ecotourism is
the future; that we do not want volume tourism. I argue that we need both. The
park represents a wonderful natural resource which, if it is kept intact, will
be a source of ecotourism revenue forever, so it has very important economic
value.[35]
4.35
The Shire of Christmas Island also suggested that duty free tourism and
a visa waiver arrangement could attract tourism from Asia. Similar arrangements
are in operation in Andorra, Jeju Island, South Korea and Guam, United States
of America. In regard to the visa waiver arrangement scheme the Shire of
Christmas Island stated:
During the era of the casino, Indonesian visitors, with
sponsorship of the Resort were allowed to visit the island for up to five days
without applying for a visa as long as they did not proceed to mainland
Australia or the Cocos (Keeling) Islands. Now that the island is excised from
the migration zone, it is less likely immigration complications could occur.
This clause of the immigration regulations was only removed in 1999. Coupled
with the duty free regime on the island, this would provide a great base for
the island to develop an alternative and diverse economy.[36]
4.36
The visa waiver arrangement would operate by allowing temporary
international visitors to travel to Christmas Island, with onward travel to the
mainland restricted. Upon arriving on Christmas Island, visitors would undergo
immigration checks and then be eligible to be granted short stay visas. The
Shire of Christmas Island explained:
The visitor would have to arrive on an aircraft which belongs
to an airline that is signatory to the visa waiver scheme. They would be
travelling only to Christmas Island. There would be no on-travel to mainland
Australia. The visitor would have to satisfy any immigration department
officials’ concerns that their visit is for business or for pleasure and that
there would be a restriction of time, perhaps three, five, 15 days, however
long the tourism market requires to make that system work. But there would be
those limitations. We would expect that there would be regulation by way of requiring
people to have some sort of formal paperwork documentation and that anybody
presenting for entry would have no right of appeal against any immigration
officer’s determination as to whether or not they should be allowed into
Christmas Island. Of course, the issue of people coming to Christmas Island for
the purpose of seeking asylum is dealt with. Christmas Island is excised from
the migration zone and [there is no] intention of changing the legislation that
excises Christmas Island from the migration zone. So those issues would not be
of concern.[37]
4.37
Another suggestion to improve tourism was to reopen the Christmas Island
casino. However, Christmas Island phosphates (CIP) stated that Singapore is
receiving between $10 and $12 Billion investment to build some of the most
advanced casinos in the world. Further, CIP was unsure how such a large
investment so close to Christmas Island would impact on tourism to Christmas
Island.[38]
4.38
CITA suggested Christmas Island’s economy and community would benefit
from business options which could generate cash flow in the same way the Christmas
Island casino did and stated:
There are many, many options for the island, not only a
casino licence. But based on what the casino did previously and the way it
contributed to the economy and the community, if half of that happened again,
it would be helpful.[39]
4.39
Another, more recent initiative to stimulate the tourism industry on
Christmas Island was to encourage cruise ships to make transit stops. In
anticipation of cruise ship visits, the Government provided funding of $3.5 Million
to upgrade the mooring system at Smith Point.[40]
4.40
CITA noted Smith Point is not the most appropriate place for a cruise
ship to moor and stated:
We need to remember that Smith Point, the location for the
upgrade of the mooring facilities, might as well be on the other side of the
island because it is not in Flying Fish Cove but rather next to the existing
fuel tanks. No one on Christmas Island will be able to view a ship while it is
moored there. Passengers will have a terrific view of the fuel tanks but not
Flying Fish Cove. In reality, it is a refuelling facility for all shipping.[41]
4.41
On 23 December 2009, 1700 passengers from P&O’s Pacific Sun cruise
ship disembarked at the jetty at Flying Fish Cove for a day trip. Tourists were
able to undertake tours, observe red crabs, snorkel and swim or go shopping. It
was estimated the visiting cruise ship tourists injected around $40 000 into
the Christmas Island economy.[42]
4.42
Cruising grew by 54 percent in 2007-2008 contributing $1.2 Billion to
the national economy. Over the next decade, it is predicted the contribution of
cruising will grow to $3 Billion with passenger numbers expected to reach 1 Million.[43]
Cocos (Keeling) Islands
4.43
The Cocos (Keeling) Islands Tourism Association promotes tourism on the
islands. Similarly to Christmas Island, tourists are attracted to nature based
activities, in addition to cultural and historical sites.[44]
4.44
Nature-based activities include: wind and kite surfing, diving,
snorkelling, fishing and other water based activities. There are also
multi-purpose tracks used for walking, cycling or accessing by car.[45]
The accommodation capacity is approximately 100 rooms with varying ratings.[46]
4.45
The Shire of Cocos (Keeling) Islands commented on the tourism industry’s
growth potential and efforts being taken for further development through
initiatives such as establishing a resort. The Shire of Cocos (Keeling) Islands
stated:
… tourism has to be a viable thing before it will get off the
ground. The council has been in discussion with the Commonwealth about a
resort. That would provide some employment, though a bit of hospitality
training would be required, which is not in place at the moment.[47]
Destination promotion and marketing and the price of airfares
4.46
The absence of an active destination marketing and promotion strategy
coupled with the current high price of airfares to the IOTs was identified as
an area of concern because of the negative implications for growing the local
tourism industries.
4.47
Without the ability to attract tourists to the IOTs, the demand for air
passenger services to the IOTs can not increase, naturally serving to keep the
price of airfares high and the number of available flights low.
4.48
CITA commented on the negative impact on tourism of high priced airfares
and the limited availability of flights and stated:
In terms of tourism and air services, more needs to be done.
More effort and more thought is needed from the key decision and policy makers.
Those decisions would likely be more effective and meaningful if they included
input from the community. There are few long term options for us apart from
tourism to generate income. The current tourism market perceptions for
Christmas Island are that there is inadequate flight frequency from Asia hub
ports and it is expensive to fly here from Perth and the East Coast of
Australia. The cost of a return ticket from Perth is close to $1800 whilst a 10
day holiday to Bali, with all accommodation and travel paid for, is less than
$500. It makes it very difficult for us to compete on this basis.[48]
4.49
Table 4.1 shows the cost of return airfares from major Australian
capital cities as at February 2010. The cost of a return airfare to Christmas
Island is approximately between $1000 and $1600. In comparison, the price of
airfares to other Indian Ocean destinations such as the Maldives is competitive
at $1200 return. Visiting Mauritius offers further competition with accommodation,
some meals and airport transfers included for an extra $600 over the most
expensive airfare to Christmas Island.
4.50
CITA made the point that the high price of airfares and availability of
flights has severely damaged Christmas Island’s credibility as a tourist
destination.[49]
Table 4.1 Price
comparison of travel from major Australian capital cities to Christmas Island
including to the Maldives and Mauritius from Sydney as at February 2010
ORIGIN |
DESTINATION |
AIRFARE/PACKAGE COST |
COMMENTS |
Sydney |
Christmas Island |
Approx - $458 per person including taxes for
Sydney/Perth/Sydney
Approx - $1008 per person including taxes Perth/Christmas
Island/Perth
Total - $1466 per person including taxes |
These are based on the cheapest available fares at the
time with Qantas domestically and Virgin Blue to Christmas Island. |
Canberra |
Christmas Island |
Approx - $524 per person including taxes for
Canberra/Perth/Canberra
Approx - $1008 per person including taxes Perth/Christmas
Island/Perth
Total - $1532 per person including taxes
Flights would not necessarily connect and therefore an
overnight in Perth would be required adding 1 night’s accommodation to the
cost. Approximately $150 per night |
These are based on the cheapest available fares at the
time with Qantas domestically and Virgin Blue to Christmas Island. |
Melbourne |
Christmas Island |
Approx - $438 per person including taxes for
Melbourne/Perth/Melbourne
Approx - $1008 per person including taxes Perth/Christmas
Island/Perth
Total - $1446 per person including taxes |
These are based on the cheapest available fares at the
time with Qantas domestically and Virgin Blue to Christmas Island. |
Brisbane |
Christmas Island |
Approx - $554 per person including taxes for
Melbourne/Perth/Melbourne
Approx - $1008 per person including taxes Perth/Christmas
Island/Perth
Total - $1562 per person including taxes.
Flights would not necessarily connect and therefore an
overnight in Perth would be required adding 1 night’s accommodation to the
cost. Approximately $150 per night |
These are based on the cheapest available fares at the
time with Qantas domestically and Virgin Blue to Christmas Island. |
Sydney |
The Maldives (Malé) |
From - $1270 per person including taxes
For flights:
Sydney/Kuala Lumpur/Male/Kuala Lumpur/Sydney |
These are based on the cheapest available fares at the
time flying Malaysian Airlines via Kuala Lumpur |
Sydney |
Mauritius |
Holidays to Mauritius are packaged up to include airfares,
accommodation, airport transfers, breakfast and dinner and taxes
Packages ex Sydney for 5 nights staying at a 3 star well
located resort would be approximately - $2281 per person during April |
Based on a package holiday put together by a reputable
travel wholesaler specialising in the area |
4.51
CITA expressed its concern about the negative impact on tourism of the
length of time taken and the process involved in AGD tendering the IOTs air services
contract. Since that time, a new service provider has been awarded the IOTs air
services contract. CITA advocated any new contract should assist in developing
the IOTs tourist industry by implementing a multi-layered fare structure,
increasing flight frequency and establishing new routes. CITA stated:
Real damage was caused to the IOTs tourism industry in 2008
and the first quarter of 2009. The time taken to award the contract and the
subsequent collapse of the provider when they were on the brink of taking over
the service must never be repeated. It is essential that any service provider
be able to provide a number of components that are fundamental for developing a
tourist market. These include but are not limited to a multi-layered fare
structure that offers tourist-class fares as well as wholesale fares to travel
agents; adequate flight frequency with which to consolidate visitation;
scheduling same-day links to other service points such as Singapore and Kuala
Lumpur which will service new routes for the Cocos (Keeling) Islands and open
up opportunities in Europe and Asia; industry compliance with the air service
provider conforming to industry standards such as the application of standard
distribution channels in the global distribution system; trade engagement;
commissions; sector rebates; yield management; and, ultimately, the
‘interlining’ of airfares.[50]
4.52
The Shire of Christmas Island commented that the concept of visiting
Christmas Island should be marketed as a package deal to potential tourists
from Singapore and Kuala Lumpur and stated:
I would think that it is a package. There are attractions. If
you are going to come here for a couple of days—and I think that in discussion
with the people in tourism industry when they look at marketing tourism on
Christmas Island and when they look at Singapore, KL [Kuala Lumpur], the near
north, people in those places would like to come to Christmas Island because we
are remote and do not have Blackberry access. They might get a few days, they
might get public holidays either side of a weekend. Also busy executives do not
want to be away from their work for too long, so less than a week we would
expect most of the tourists to be coming, which fills the planes.[51]
4.53
CITA advocated that a destination management strategic plan should be
drafted and ratified to enable targeted investment in the tourism industry and stated:
Governments clearly articulate the strategic direction for
Christmas Island to enable industry and investors to identify and seek
opportunities, to invest with a level of certainty. From a tourism perspective,
the Indian Ocean Destination Management Strategic Plan must be drafted and
ratified by government. The plan provides a mandate for the development of
tourism. Such a plan provides the framework for tourism policy and articulates
the direction of investment and resources required. Without a clear agreed
plan, policy and investment will remain reactive and fragmented and will fail
to capitalise on previous investment made to maximise what has already been
developed.[52]
4.54
In April 2008, AGD commissioned the Christmas Island Destination
Development Report. The aim of the report was to:
n ‘increase the
attraction of the island with a focus on low volume, high yield tourism as a
basis for enhancing tourism’s long term contribution to the economy of
Christmas Island
n ensure that the
products and experiences on offer align with the [Christmas Island] brand.’[53]
4.55
The report was arrived at through stakeholder and community consultation
and includes a plan of destination development strategies. These strategies
encompass: access, accommodation, attractions and experiences, infrastructure
and amenities, services, tourism management, training and development,
conservation of the environment and commercial opportunities and investment.[54]
4.56
The development strategy does not commit any agency or party to the
actions assigned or ‘indicate that sufficient resources or funding is available
to implement the recommendations.’[55] The development strategy
stipulates:
Strategies are aspirational and provide agencies and
interested parties with a set of goals, tools and ideas to assist in planning
and developing programs to incorporate tourism needs and to create business
opportunities. The implementation stage will further develop the strategies
into a plan of action.[56]
4.57
AGD advised that the workshop which was the consultation forum for
drafting the Christmas Island Destination Development Report ‘identified the
desire for local leadership to implement the actions and strategies’ arrived at
in the report.[57]
4.58
The report therefore assigns responsibility for developing tourism on
Christmas Island to ‘the Shire of Christmas Island, the Australian Government,
[and the] Christmas Island Tourism Association as well as operators,
developers, educational and training institutions and the general community.’[58]
4.59
The tourism strategy plan contained in the report was intended to be
implemented in two stages:
n ‘finalise the plan
and determine the process for long term implementation, and
n facilitate,
coordinate, monitor, review and report on the plan.’[59]
4.60
Further, the plan would require stakeholders and the community to
provide regular ‘feedback on the plan and an avenue for individuals and
organisations to engage in the plan or in specific actions.’[60]
4.61
A steering committee, chaired by the President of the Shire of Christmas
Island with members taken from CITA, AGD and Parks Australia is responsible for
implementing the plan contained in the report. The report notes:
In finalising the plan the steering committee will determine
the most suitable body to facilitate, coordinate, monitor, review and report on
the plan to enable long term implementation.[61]
4.62
AGD advised the Steering Committee has not met again since early 2009. Further,
AGD ‘does not anticipate that the Steering Committee will determine a suitable
body.’[62] In this respect AGD is
considering ‘developing a more regional approach [to] the implementation of the
Christmas Island Destination Development Report.’[63]
4.63
The Christmas Island Destination Development Report is currently used to
provide guidance and support to AGD’s IOTs tourism stimulating policies and
programs including:
n ‘improving air
services – Virgin Blue are commencing on 1 April 2010
n improving directional
signage – a joint project of the Department and the Christmas Island Tourism
Association (CITA) has resulted in new signs which are ready to be installed
n ongoing funding for
CITA. In 2009-2010 this is around $525 000
n investing in port
facilities to enable cruise ships to visit Christmas Island. The investment by
the Australian Government was $3.5M
n releasing land for a
Tourism Development on Christmas Island and
n building capacity
through services of an Economic Development Officer, Small Business Development
Corporation and the Indian Ocean Group Training Association.’[64]
4.64
In 2009-2010, $120 000 in funding was provided to the Cocos (Keeling)
Islands Tourism Association (CKITA). In 2009, CKITA drafted and completed a
Tourism Plan which it is currently implementing.[65]
4.65
Remote Control: Australian Governance Strategies for Tourism Development
on Christmas Island found that currently the majority of tourists to the
IOTs are from Western and Eastern Australia, Europe and East Asia.[66]
4.66
Further, the report emphasised the need for the involvement of either
Tourism Australia or Tourism WA to effectively promote Christmas Island as a
tourist destination nationally and internationally. The report stated:
Current governance structures have placed the AGD as the
central governance body on the island overseeing economic development. The AGD
has neither the connections with nor understanding of the tourism industry to
adequately develop the industry on the island. If the federal government would
like to maintain control over decision making in regard to tourism development
on Christmas Island, it should immediately establish a link between Tourism
Australia, the AGD, CITA and [Christmas Island Shire Council] CISC. Not only
could such a link provide significant assistance to the AGD and CITA in
developing a firm tourism strategy for the island, it could also provide
greater scope for project funding for tourism and potentially increase private
investment on the island. CISC consultation and implementation of tourism
development proposals would ensure adequate community input.[67]
Tourism infrastructure requirements
4.67
CITA commented on the stagnant condition of Christmas Island’s tourism
industry and indicated Government investment and assistance would be required
to develop tourism infrastructure. CITA stated:
The reality is that tourism on Christmas Island is not
developing but is rather currently stagnating. Capital investment by government
is required to develop the foundations of an industry from which commercial
tourism as well as non tourist related businesses can establish themselves and
grow. Investment is essential. With the impacts on the [tourism] industry
globally and within Christmas Island, combined with the green and red tape
associated with developing any infrastructure, investment will not come from
the private sector. One must therefore look to the government to put back into
the community for tourism in a planned and coordinated manner.[68]
4.68
Mr Ron Grant made a similar observation in regard to the provision and
funding of basic infrastructure on the Cocos (Keeling) Islands and stated:
Basically the Attorney-General’s Department has two areas in
which it can assist the shire. One is the provision of infrastructure—water,
power, sewerage, communications—which is absolutely critical. If you look, for
example, at West Island, virtually all your services cease around the settled
area. So, if any developer wants to develop something—a farm site or a tourism
operation—infrastructure becomes a critical issue.[69]
4.69
The Shire of Christmas Island commented that there is limited
accommodation on Island[70] and advocated use of the
casino building for tourist accommodation and stated:
… [the casino building] … is critical infrastructure for the
tourism industry. It is an established complex. It needs some work, but it
would certainly be my preference for that to be the foundation of the tourism
industry. You need a substantial set of hotel rooms, and that is what is there
in number and I think the quality could be delivered. When the resort was
operating, tourism businesses sprung up around the town and could have
supported much greater occupation of those hotel rooms. But it was primarily a
casino. I think the emphasis needs to be on getting tourists here for purposes
other than a casino, although some people would argue that the resort could not
work without a casino.[71]
4.70
In addition to funding future infrastructure needs, it was noted that
existing tourism infrastructure in the national park on Christmas Island is not
of the same high quality as in other national parks on the mainland.[72]
4.71
Mrs R Peter highlighted the need for basic tourism infrastructure such
as: ablution blocks, sheltered picnic and safe beach areas and transport to
various activities.[73]
4.72
As mentioned in the previous chapter, the Government has announced
funding to upgrade tourist infrastructure such as walking trails which link
natural and heritage attractions around Christmas Island.[74]
Further funding to upgrade existing infrastructure has also been announced.[75]
4.73
Mr Raymond Marshall commented that a resort was needed on the
Cocos (Keeling) Islands, but stated with low levels of tourism attracting
and retaining investment was difficult. Mr Raymond Marshall stated:
The place probably needs a resort but who is going to fund a
resort, especially if the planes are not bringing enough people in here. I
think access through to the north is essential for the island to grow—through
Singapore, Kuala Lumpur or wherever it may be.[76]
4.74
The Shire of Cocos (Keeling) Islands noted tourists come to the islands
in small numbers as accommodation is limited as is available plane seating.[77]
Conclusions
4.75
Potential new growth industries including tourism and ecotourism have
been identified by various Indian Ocean Territories’ (IOTs) organisations and
individuals as having the potential to be further developed and provide positive
returns in a relatively short timeframe. In addition, it is expected tourism
has the potential to spur the growth of complementary industries and assist in
diversifying the IOTs economies. Economic diversification could assist the IOTs
economies to become self sufficient and lower the reliance on Government
services.
4.76
As a result of limited diversification within its economies, the IOTs is
experiencing a decline in its population. As more people leave the IOTs in
search of education and career opportunities, a downward economic spiral is
created, serving to increase economic reliance on Government services and
funding. The committee therefore supports initiatives by the Shire of Christmas
Island the Shire of the Cocos (Keeling) Islands to retain its youth populations
on the islands.
4.77
Tourism has been identified as a viable industry for development on the
IOTs. While tourism is already an established industry on the IOTs, it is not
expanding and has further, been adversely affected by the global financial
crisis. Ecotourism may also be negatively affected by environmental degradation
caused by mining and could be negatively affected if mass volume tourism is
encouraged.
4.78
It can be argued that if the environmental value of the IOTs is
diminished through mass volume tourism, it is likely the IOTs attractiveness as
an ecotourism destination will diminish. The committee, while supporting
measures to develop the tourism industry, believes care should be taken to implement
development initiatives which have the dual purpose of stimulating economic growth
and also preserving the IOTs natural environment.
4.79
A number of suggestions were made to improve tourism in the IOTs.
Identifying niche markets in Asia was a favoured option as was implementing a
visa waiver scheme. The aim of the visa waiver scheme is to attract tourism
from Asia. The visa waiver arrangement could allow international visitors to
travel to the IOTs without onward movement to the mainland with visitors subject
to immigration and security checks. The committee believes this proposal should
be investigated further as a means to attract tourism from Asia and possibly increase
visitor numbers to the IOTs.
4.80
Areas requiring improvement to grow tourism include: tourism
infrastructure, affordability and frequency of airfares, and tourism destination
promotion and marketing.
4.81
Improving tourism infrastructure requires either an upgrade to existing
infrastructure or development new infrastructure. Evidence suggests that as
there is limited interest from the private sector in developing tourism infrastructure,
that the Government may be responsible for providing infrastructure development
funding. Given the current economic climate and the early development stage of
the IOTs tourism industry, the committee agrees that the responsibility of
developing and upgrading tourism infrastructure may fall to the Government to
provide.
4.82
As a result of the upgrade to the mooring system at Smiths Point,
Christmas Island, cruise ships are now able to visit. The committee notes the
positive economic impact of the recent cruise ship visit to Christmas Island
and believes such initiatives should be continued into the future.
4.83
The high price of airfares to the IOTs reflects the low level of demand
for flights. Demand could be improved through more targeted promotion and
marketing of the IOTs as a tourist destination. The prohibitive cost of
airfares to the IOTs also serves as a disincentive for tourists who are able to
visit Mauritius, the Maldives and comparable destinations, for the same or
lower cost. The committee believes the IOTs tourism brand would benefit from
package deal marketing, allowing the IOTs tourism industry to better compete
with similar tourist destinations.
4.84
The Christmas Island Tourism Association (CITA) advocated that a
destination management strategic plan should be drafted and ratified. The
committee is aware of the Christmas Island Destination Development Report which
is aimed at increasing the attraction of the island with a focus on low volume,
high yield tourism as a basis for enhancing tourism’s long term contribution to
the economy.
4.85
The majority of tourists to Christmas Island originate from Western and
Eastern Australia, Europe and East Asia. Evidence presented suggests that
Tourism Australia should become involved in assisting with formulating
strategies to market and promote Christmas Island as a tourist destination.
4.86
The committee supports the participation of Tourism Australia in
assisting the IOTs to develop and produce workable tourism destination
management plans with the broader aim of assisting in developing the IOTs
tourism industries.
4.87
The committee believes that Tourism Australia is best placed (as the
statutory authority which promotes Australia as a tourist destination
internationally and nationally and research and forecasts for the sector), to
provide expertise in developing the tourism industries of each of the IOTs.
4.88
The committee understands the Christmas Island Destination Development
Report includes the foundation of a destination management strategic plan and
appears to have been intended to be a working document, requiring continuous
community and stakeholder input. The committee suggests this document should be
reviewed and discussed in terms of its usefulness by its stakeholders and the
community in consultation with Tourism Australia.
Recommendation 14 |
4.89 |
The committee recommends the Government examine the
feasibility (including cost and security considerations) of implementing a tourist
or short stay visa waiver scheme to encourage international tourists to visit
the Indian Ocean Territories. |
Recommendation 15 |
4.90 |
The committee recommends the Steering Committee responsible
for implementation of the Christmas Island tourism plan in consultation with
the Attorney-General’s Department, develop a service delivery arrangement
with Tourism Australia to review, revise and implement the Christmas Island
Destination Development Report.
|
Education partnerships and research centres
4.91
A number of suggestions were made to develop research centres or expand
existing education partnerships on Christmas Island.
4.92
One such education partnership is the ongoing Christmas Island Seabird
Project, initiated in 2004 with the University of Hamburg. The project has assisted
with the conservation of seabirds of Christmas Island.[78]
4.93
The Shire of Christmas Island is keen for the project to be expanded
with the creation of a research foundation. Existing links have been created
with universities in Asia, North America and Europe where students undertake
the field work component of their degrees on Christmas Island.[79]
4.94
In 2005, arising from the established link with foreign universities, a
business case proposal was put forward to Parks Australia to establish the
Christmas Island International Research Centre, based at Tai Jin House.[80]
The project has two objectives:
n To ‘establish an
international centre for tropical Indian Ocean research, and to generate export
revenue by attracting overseas research funds’ and
n To ‘create ecotourism
opportunities by making research programmes and the island’s ecology generally
available to specialist tour operators.’[81]
4.95
AGD advised about the status of the proposal and stated it ‘is under
review by the Department of the Environment, Water, Heritage and the Arts.’[82]
4.96
In addition to such academic partnerships, the Shire of Christmas Island
suggested the creation of a large scale social capital venture in the form of
an ‘Indian Ocean Rim Centre.’ The centre would be modelled on the East West
Centre located in Hawaii. The East West Centre includes international research,
education and professional exchange programs. To develop the centre would
require a large injection of Government funding.[83]
4.97
Mr John Sorensen advocated the establishment of a marine research
facility ‘to explore the ocean surrounding Christmas Island including the
depths of the Java Trench’.[84]
4.98
Dr Nic Dunlop was also in favour of establishing an international
scientific research station ‘focusing on island ecology and marine climate
change science.’[85]
4.99
Dr Nic Dunlop suggested that education services such as an international
high school and tertiary training campus could be established. The Christmas
Island campus could specialise in ‘natural resource management and national
parks management for foreign students from the region.’[86]
Conclusions
4.100
The 2004, University of Hamburg funded project which examined the
conservation of sea birds on Christmas Island established an international link
for the further preservation of Christmas Island’s natural environment, and
marked Christmas Island as a possible research destination.
4.101
There appears to be substantial potential for Christmas Island to
continue to develop its existing education partnerships and also seek new
opportunities for education partnerships.
4.102
The proposal to establish an international research centre on Christmas
Island in 2005 is currently under review. The centre would provide an
international forum for tropical Indian Ocean research, and potentially generate
export revenue by attracting overseas research funding. The centre would also
create ecotourism opportunities by opening up research programs and the island’s
ecology to specialist tour operators.
Agriculture and aquaculture
4.103
Several attempts at growing local produce commercially have been
unsuccessful. Such ventures are costly and fresh produce on Christmas Island is
prone to fruit fly infestation.[87] On the Cocos (Keeling)
Islands, the soil quality is poor with the alternative of hydroponics found to
be difficult to establish.[88]
4.104
The Shire of Christmas Island noted that a small scale, private
hydroponic venture has started on the island. The venture is based on a
Singapore hydroponic model and ‘is a closed system, including fish at the end
of the chain’ with any waste product pumped back into the system.[89]
4.105
The Shire of Christmas Island found the only impediment to the hydroponic
system being expanded is the limited availability of land.[90]
4.106
Mr Ron Grant advocated growing local produce on the Cocos (Keeling)
Islands also through the hydroponic method and stated:
Hydroponics would be the preferred method. If you go back and
look at the West Island farm, which is now badly dilapidated, there are at
least four hydroponic buildings there that are producing quite a wide range of
crops. Importing soil from Christmas Island, you will have quarantine problems.
… people are producing a range of fruit and vegetables, which are limited,
which are growing quite well, for their own use, but also they have things like
ducks, pigeons and chickens. So they are starting to supplement their diet with
items locally grown, but the best way to go would be hydroponics to get away
from all of your problems with nematodes et cetera in the soil, and it is more
cost effective than trying to use traditional horticultural methods here.[91]
4.107
Establishing aquaculture on the Cocos (Keeling) Islands is more
complicated because of legal requirements. In regard to aquaculture Mr John
Clunies Ross stated:
An aquaculture venture with clams requires an aquaculture
permit, a fishing permit, a fishing boat permit. I have to be a good and proper
person or whatever it is to hold a fishing permit, so I need police clearance.
I need a[n] … endangered species trading permit. That is twice a year. That is
just one of the businesses. To go diving for the fish I need a commercial ticket.
I do 20 days a year in non productive compliance. One and a half per cent of my
working life is just compliance.[92]
4.108
Mr Nyall Ledger makes a similar point in regard to bech de mer fishing,
but is unable to gain a licence and start this business on the Cocos (Keeling)
Islands. This issue is discussed in more detail in the previous chapter.
4.109
It was previously noted, the Economic Development Consultative Groups’
strategic development plan currently includes funding ‘for a horticulture
feasibility study for the IOTs, including research and development for aquaculture.’[93]
Conclusions
4.110
Hydroponics is the preferred method for growing local produce in the
IOTs. Growing produce locally lessens community reliance on freighted fresh
produce and lowers household costs, while also stimulating the local
agricultural industry and more broadly assisting economic diversification.
Regular access to fresh produce also has health benefits for IOTs residents.
4.111
As highlighted in the previous chapter, it is claimed the aquaculture industry
on the Cocos (Keeling) Islands is hindered by bureaucratic requirements, but
could produce sustainable levels of income and employment for the local
economy, if allowed to operate with moderate regulation.
4.112
The committee believes the viability of agriculture and aquaculture on
the IOTs requires further investigation and supports recent initiatives for a
horticulture feasibility study for the IOTs including research and development
for aquaculture. The committee acknowledges that where there is local interest
and investment in these industries, Government assistance could help to develop
these industries.
4.113
The committee also believes the Government could further assist with
business development for private ventures such as agriculture and aquaculture,
by providing individuals and businesses assistance in navigating through legal
and administrative requirements.
Renewable energy
4.114
Renewable energy production was also highlighted as a possible industry
for development. The Shire of Christmas Island commented that solar and wind
energy may be suitable to Christmas Island’s climate and stated:
I think that solar power is a very viable technology…. and any
measure to bring solar power to Christmas Island would be most welcome…. Wind
is also a very viable source of energy. I think in Albany they have 12 wind
turbines and that provides at least 30 percent of the power. That is in a
significant community of, I think, 60 000 people.[94]
4.115
Mrs R Peter suggested ‘local energy requirement could be managed by
installation of solar panels in every home and business. This would lead to
less reliance on freighted liquid fuel.’[95]
Conclusions
4.116
The committee received evidence that renewable energy such as solar and
wind power may have the potential to be developed on Christmas Island and
suggests these options could be explored further in terms of cost and
infrastructure requirements.
Recommendation 16 |
4.117
|
The committee recommends the Shire of Christmas Island and
the Shire of Cocos (Keeling) Islands in consultation with the
Attorney-General’s Department, explore the viability of establishing sources
of renewable energy to supplement the power needs of the Indian Ocean
Territories, taking into consideration infrastructure requirements and costs.
|
Housing issues and options
4.118
The Commonwealth owns and controls the majority of land that is
available for development on Christmas Island. While on the Cocos (Keeling)
Islands, the Shire holds in trust and controls approximately 85 percent of
land.
4.119
A shortage of housing was identified as a matter of concern for IOTs residents.
While differing factors are driving housing demand on Christmas Island and the
Cocos (Keeling) Islands, both IOTs economies, are subject to limited land
release, creating housing shortages.
4.120
Concerns were also raised about the negative economic impact land use
policies are having on commercial and residential development in the IOTs and
the resulting stagnating effects on the local construction industries.
4.121
CITA highlighted the need for development and land release plans on
Christmas Island,[96] similarly Mr Ron Grant
noted the limited development on Shire of Cocos (Keeling) Islands owned land.[97]
4.122
The Government has responded in part to issues associated with land
release and supply through creation of a Crown Land Management Plan (CLMP). The
CLMP is intended to inform planning for future land use. AGD stipulated the
CLMP is ‘a useful tool, however, it will not replace the normal land planning
process.’[98] The CLMP is discussed in
more detail later in this chapter.
Christmas Island
4.123
The Christmas Island housing market consists of a large rental market
with low levels of private home ownership. The Commonwealth owns approximately
30 percent of all residential housing on Christmas Island with over half of
these properties rented out as public housing. The remaining properties are
used to house Commonwealth public sector employees.
4.124
Public housing is owned by the Commonwealth and managed by the
Government through the Christmas Island Administration. Terms and conditions
for public housing are similar to the Western Australian (WA) Government’s
Department of Housing.[99]
4.125
While some public housing stock, currently meets WA Department of
Housing standards, AGD, through its capital works program is intending to
initiate maintenance and upgrades where required.[100]
4.126
The Shire of Christmas Island stated the majority of residents rent in
the private market and noted the price of renting has increased in 2009, with a
one bedroom unit in the centre of town doubling since July from $150 per week
to $300 per week. Terrace house rents have increased by $180 per week in the same
timeframe.[101]
4.127
The Shire of Christmas Island commented that the rapid increase in
housing rental prices is commonly attributed to the demand for accommodation
generated by staff and contractors servicing the activities of the Christmas
Island Immigration Reception and Processing Centre.[102]
4.128
The Department of Immigration and Citizenship stated the majority of their
staff (including contractors) is housed in department owned accommodation with
additional accommodation sourced through the private rental market.[103]
4.129
House values have also steadily increased over time with a two or three
bedroom house valued at $140 000 in 2003 and in 2009 the same property was valued
at between $200 000 and $230 000.[104]
4.130
Regardless of the measured increase in housing values, housing supply is
not keeping up with demand on Christmas Island. However, this undersupply has
not spurred the expansion of the construction industry as ‘investors are
reluctant to invest if they are uncertain about possible returns on investment.
Many investors are demanding guarantees on long term leases before they will
build.’[105]
4.131
CICC drew attention to the high cost of construction on Christmas
Island, noting it is approximately 2.5 times more expensive than on the
mainland and attributed the low levels of commercial development on Christmas Island
to the high cost of construction.[106]
4.132
The Shire of Christmas Island advocated making Crown land available for
residential development[107] to remedy the problems
associated with rent affordability and the shortage of housing supply.
4.133
As an associated housing issue, the Shire of Christmas Island commented
on the scheme that was in operation on Christmas Island which allowed public
housing tenants to buy the houses they rent, similar to the scheme in operation
by the WA Department of Housing. The Shire of Christmas Island stated:
The former tenants of Blocks 408 and 412 [Kampong] have made
several requests to purchase housing units. The Christmas Island Administration
did commence a process which included obtaining valuations for the properties
to be sold to the Administration’s public housing tenants. The process stalled
and the tenants are now requesting the Administration to proceed.[108]
Cocos (Keeling) Islands
4.134
The Shire of Cocos (Keeling) Islands through a trust arrangement either
leases or rents 104 properties on Home Island with the cost of rental for a
three bedroom dwelling at $135 per week or $141 per week for a four bedroom
dwelling.[109]
4.135
The Shire of Cocos (Keeling) Islands highlighted the issue of
overcrowding in some houses because of extended family living arrangements, but
stated:
Due to the pressure on existing utilities and limited fresh
water supply, there is no potential to construct additional homes on Home
Island.[110]
4.136
The Commonwealth owns the majority of houses on West Island. These
houses are used for Commonwealth public servants and private contract staff.
There is currently a shortage of houses on West Island.[111]
4.137
Similarly to Christmas Island, the cost of construction on the
Cocos (Keeling) Islands is approximately 2.5 times more expensive than on
the mainland. The high cost of construction has served as a disincentive for
the development of a local construction industry, creating a shortage of local
essential tradespeople.[112]
4.138
In 2007, AGD provided $507 000 in funding for a joint venture to
construct two public housing dwellings on Home Island. The Shire of Cocos
(Keeling) Islands is responsible for the management and maintenance of the
properties for the next 25 years. Potential public housing clients must meet WA
public housing eligibility criteria to be granted a rental lease.[113]
4.139
To further ease the pressure on housing supply, AGD is sponsoring ‘the
building [of] several additional houses and preparing to release land at Buffett
Close on West Island.’ AGD is also considering making available four houses at
the former Quarantine Station.[114]
Land use and heritage considerations
4.140
The absence of a land use strategy or plan has been highlighted as a
significant hindrance to business investment and development for both Christmas
Island and the Cocos (Keeling) Islands.
4.141
CICC commented that the absence of a land use strategy acts as a
disincentive for commercial development on Christmas Island and stated:
As of the current date, the Chamber is not aware of any
realistic and workable land planning strategy on Christmas Island. This
immediately disqualifies any interest from commercial developers with the
financial capacity to plan and complete major projects on the Island.[115]
4.142
CITA also suggested a land planning strategy is needed for Christmas
Island to assist in attracting and informing investment. CITA stated:
We would love to get the private sector to invest in the
island, but you have heard about the cost of fuel, the cost of a fridge and the
cost of getting freight over here. It is not an attractive proposition. We
cannot get the Accors and the Starwoods. We cannot attract them. So we need to
find smaller private investors. But then we hit a snag: what do we do with the
land? Can we access the land? There is no singular land planning strategy that
says, ‘Here is an opportunity, here is what you can do, here is the style of
building that you may build and these are the associated sweeteners.’[116]
4.143
In addition to the inability to attract commercial investment, CICC also
raised concerns about the impact of heritage assessment on commercial
developments on Christmas Island and stated:
The Chamber is aware of a number of commercial developments
that have failed in the planning process due to either the heritage boundaries,
or the local administration of the heritage guidelines.[117]
4.144
Mrs R Peter advocated restoration or demolition of derelict buildings
which have been heritage listed on Christmas Island and stated ‘these are
eye-sores unless something urgently is done with them. Once restored, these may
be used for public recreational and social purposes.’[118]
4.145
AGD acknowledged the Environment Protection and Biodiversity
Conservation Act 1999 (Cwlth) ‘applies to all aspects of the Territories
and impacts on the majority of operational work of the Department and can
affect business.’[119]
4.146
In regard to addressing issues surrounding heritage, AGD added it is
working towards application of relevant legislation which has been amended and
‘removes the definition of Commonwealth Area, in those areas within the
Territories where a person holds a freehold interest in the land.’[120]
4.147
In regard to heritage, AGD further stated ‘this is not a simple process
and will require negotiations for a SDA [service delivery arrangement] between
the Department and the relevant WA Government agency, and consultation with
stakeholders and the community.’[121]
4.148
In addition, to manage Crown land and address any future issues
regarding Crown land use, AGD has developed the CLMP, which is aimed at
informing decisions on future land use for the IOTs by assessing ‘the
conservation, economic, cultural and social values of crown land.’[122]
Crown Land Management Plan
4.149
AGD is responsible for managing Crown land in the IOTs on behalf of the
Commonwealth. Through a SDA with the WA Departments of Land Information, and
Planning there is provision for ‘registration of titles, valuation of land and
the provision of planning, legal and administrative advice on land.’[123]
4.150
The Shire of Christmas Island administers the ‘statutory mechanism under
WA planning legislation that controls all land use on the island’- the Town
Planning Scheme.[124]
4.151
The Shire of Cocos (Keeling) Islands administers the ‘statutory
mechanism under WA planning legislation that controls all land use on the
island’- the Local Planning Scheme. In addition, there is a ‘land trust
agreement between the Commonwealth and the Shire of Cocos (Keeling) Islands’
allowing the shire to manage this land ‘for the benefit, advancement and wellbeing
of the Cocos Malays.’[125]
4.152
The Town Planning Scheme and the Local Planning Scheme are
the ‘primary instruments through which land use and development [are] controlled’
on the IOTs. Both have ‘an outlook of five years and zone land for certain
purposes and contain development provisions for each particular zone, in
accordance with the orderly and proper planning of a local government area.’[126]
4.153
AGD explained the CLMP:
… will be used to inform the shires’ local planning schemes
and to seek holistic development approval for a range of possible projects. The
management plan has been developed in close consultation with stakeholders in
both territories.[127]
4.154
AGD circulated the CLMP to IOTs stakeholders in September 2009. The
Shire of Christmas Island commented on the contents of the CLMP and the
consultation process undertaken by AGD in regard to the plan. The Shire of
Christmas Island stated:
Basically, the Crown Land Management Plan was delivered as a
report in July. I was involved in two discussions with the consultants who
produced it. They were very interesting discussions. The report does challenge
some of the assumptions of the land planning strategy that we developed, also with
the assistance of the Commonwealth department, a few years ago. That was a very
significant land planning exercise which involved many people. It was a very
broad consultation involving many of us in several forums. It was a different
style to the land planning strategy developed by a town planner. This Crown
land management plan does challenge some of the assumptions of the land
planning strategy, so the seeds of doubt have been sown in some areas and the
ball is now in our court to deal with that. I want to deal with that through
our community planning strategy.[128]
4.155
AGD added that it will consider further recommendations contained in the
CLMP ‘based on the needs of the local communities’ in consultation with the
Shires.[129]
Land release and development
4.156
AGD advised that land release decisions are usually made after receiving
advice from the WA Department of Lands and the responsible local shire.[130]
4.157
The CLMP will be used ‘to identify priority areas for development and
ensure land release decisions are taken consistently. It will inform land
planning discussions between the Department, the Shires and the local
community.’[131]
4.158
Two identified priorities for action include the Light Industrial Area
and Chicken Farm site on Christmas Island, and the former Quarantine Station on
the Cocos (Keeling) Islands.
4.159
In regard to the Light Industrial Area, the CLMP has recommended an
Outline Development Plan (ODP). AGD advised the draft ODP will be circulated in
the near future. In regard to the Chicken Farm site, in accordance with the
CLMP, AGD has issued an expression of interest for development.[132]
4.160
More broadly, in regard to waiting times for development approvals, AGD
commented that it is considering alternative ways to streamline the development
approvals process and stated:
… the approvals process for the Territories does require
compliance with both applied state and Commonwealth legislation. Any
development in a Commonwealth area in the Territories is subject to the Environmental
Protection and Biodiversity Conservation Act 1999 in addition to applied Western
Australian legislation. The Department is considering ways to streamline the
approvals process, including active management of specific developments.[133]
Conclusions
4.161
The limited portion of available land released for development combined
with the high cost of construction in the Indian Ocean Territories (IOTs) has
acted as a disincentive for private sector investment in commercial development.
This in turn has kept the local construction industry small and created a
shortage of qualified local tradespeople. More broadly, it appears these
factors have contributed to a housing shortage in the IOTs.
4.162
On Christmas Island, rents have increased significantly and with the limited
availability of houses for sale and the recent significant increase in house prices,
residents may have been locked into renting.
4.163
In a related matter, the committee heard evidence that the process for
public housing tenants from Blocks 408 and 412 Kampong, Christmas Island has
halted without explanation. Given the housing shortage and the pressures on the
local rental market, the committee suggests the Attorney-General’s Department (AGD)
initiate dialogue with tenants to resolve the matter.
4.164
On the Cocos (Keeling) Islands, there is overcrowding in some houses on Home
Island and due to pressure on existing utilities and limited fresh water, there
is no potential for the Shire of Cocos (Keeling) Islands to construct
additional houses. However, there is some capacity on West Island at the former
Quarantine Station site, for AGD to provide additional housing. The committee suggests
the Commonwealth should transfer ownership of the housing and facilities
located at the former Quarantine Site to the Shire of Cocos (Keeling) Islands,
which would assist in relieving the pressure on housing supply on the islands.
4.165
The committee acknowledges the housing shortage in the IOTs needs to be
urgently addressed and the Shire councils in consultation with AGD, examine existing
land use and release policies and take measures to investigate the feasibility
of low cost, low impact residential construction options. In the longer term,
if these measures were implemented, house prices and rents could fall,
investment in residential development would likely increase and local employment
opportunities would improve.
4.166
A number of cases were also highlighted where development was either
hindered or halted because of land policy related issues where heritage,
environmental or general approvals were required. The committee believes these
issues require resolution and a concerted approach is needed to assist with
encouraging investment from commercial development.
4.167
The Crown Land Management Plan (CLMP) is designed to inform future
planning decisions by assessing the conservation, economic, cultural and social
values of Crown land. The committee believes the CLMP is an important plan for
attracting investment and assisting economic development on the IOTs and should
include a land release and development strategy arrived at through continuing
community consultation.
Recommendation 17 |
4.168
|
The committee recommends the Shire of Christmas Island and
the Shire of Cocos (Keeling) Islands in consultation with the
Attorney-General’s Department, draft and implement a land release and
development plan to attract investment and stimulate the construction
industries of the Indian Ocean Territories.
In addition, the Attorney-General’s Department should
provide ongoing adequate funding for secretariat support for this purpose. |
Recommendation 18 |
4.169
|
The committee recommends that the Commonwealth transfer
ownership of the accommodation and facilities located at the former
Quarantine Station site on West Island to the Shire of Cocos (Keeling)
Islands to ease pressure on housing supply. |
The impact of climate change
4.170
In 2008, AGD commissioned a report on the ‘Climate change risk
assessment for the Australian Indian Ocean Territories’ (the climate change
report). The climate change report made predictions from now until 2030 and
then through to 2070 and a number of findings regarding the possible
environmental impact of changes in weather patterns that may be experienced by
the IOTs into the future.[134]
4.171
The climate change report found the IOTs to be vulnerable to the
potential impacts of climate change with a ‘magnitude of exposure,
vulnerability and risk associated with these changes.’ The Cocos (Keeling)
Islands was found to be at greater risk of experiencing the effects of climate
change than Christmas Island.[135]
4.172
In addition, the IOTs may be affected by a rise in sea temperature which
could have a detrimental impact on marine ecology and would negatively impact
on tourism.[136]
4.173
Included in the climate change report are the key vulnerabilities which
include risks to: human health and safety, buildings and infrastructure and
economic development and tourism.[137]
4.174
AGD stated it is working with the Department of Climate Change and the IOTs
communities on strategies to develop local capabilities to ‘adapt to the
impacts of climate change and build resilience.’[138]
Christmas Island
4.175
Christmas Island is less vulnerable to the impact of rising sea levels
than the Cocos (Keeling) Islands. AGD noted ‘human settlement and a small
tourism industry based on ecological systems may be impacted by climate
change.’[139]
4.176
AGD stated Christmas Island, while not classified as a cyclone prone
area, ‘had two significant cyclone events in March 1988 and April 2008’ with
the impact of these extreme weather events experienced in Flying Fish Cove.[140]
4.177
The Shire of Christmas Island commented on the validity of the
assumptions and predictions made in the climate change report in regard to sea
level rise and stated:
Assumptions upon which certain conclusions of the Climate
change report produced for the Attorney General's Department are now considered
to be out of date. The anticipated change in sea level at Christmas Island by
2070 was thought to be an increase of 60cm. At the time the report was
delivered the consultants informed us that the rise in sea level could be up to
3 metres not 60cm as supposed before the report was delivered. There is likely
to be a decrease in major storm events but an increase in the severity of the
storms. We can expect longer dry periods and wetter wet periods.[141]
4.178
The Shire of Christmas Island highlighted the expected climate change
impact on tourism and stated:
The anticipated changes in sea level due to climate change
will affect planning for tourism developments in Settlement where land is
allocated for tourism accommodation and services. The Shire needs to obtain
additional capacity for planning if we are to lead our community’s response to
the challenges of climate change.[142]
Cocos (Keeling) Islands
4.179
The climate change report found the Cocos (Keeling) Islands to be vulnerable
to rising sea levels. AGD outlined the climate change impacts on the Cocos
(Keeling) Islands and stated:
… storm surge and tropical cyclones.
Most pass by without causing any significant damage. A small number of cyclones
have caused severe damage during the last 150 years. However, increased sea
levels and a predicted change in weather patterns may pose a greater risk to
the community. The number of intense tropical cyclones (category 4 and 5)
occurring within 500 km of the Cocos (Keeling) Islands is expected to double.[143]
4.180
In regard to monitoring sea level rises, the Shire of Cocos (Keeling)
Islands stated:
Monitoring of the sea level of Cocos indicates that there has
been a slow and continual increase in the sea level. This increase has been
noticeable during episodes of higher than predicted high tides. These high
tides have caused flooding in low lying areas and a rise in the saline level of
the fresh water lenses on Home Island.[144]
4.181
Further, the Shire of Cocos (Keeling) Islands noted the importance of
working on strategies to counter the economic impact of climate change and
stated:
Climate change has been recognised as a factor that will
affect the islands. It needs to be known as a tangible issue before people
realise what the effects may be. With the height above sea level on Home Island
and, to a slightly lesser degree, West Island, climate change should be taken
into consideration for any future planning. The shire is keen to work with the
government, the community of Cocos Islands and all other stakeholders to
provide for the future of the islands and look for viable options to improve
economic outcomes that will benefit the community as a whole.[145]
Conclusions
4.182
Climate change, while having a global effect, is particularly
detrimental to the IOTs economies as severe weather events usually impact on
the natural environment and so have the potential to negatively affect the operation
of the tourism industry.
4.183
Christmas Island has been less affected by climate change than the
Cocos (Keeling) Islands and has experienced two extreme weather events
throughout the period from 1988 to 2008. Alternatively, the Cocos (Keeling)
Islands is particularly vulnerable to the effects of climate change and is
already experiencing gradual, but continual sea level rises.
4.184
The committee supports risk assessment planning for climate change
impact on the IOTs where appropriate and believes this planning should be
incorporated into all business proposals, especially those involving economic
development initiatives. The committee also supports initiatives to build local
capability and resilience in regard to the impact of climate change.
Recommendation 19 |
4.185
|
The committee recommends that the potential effects of
climate change be acknowledged as they will affect future economic
development, especially on the Cocos (Keeling) Islands and that the Economic
Development Consultative Groups and other stakeholders are fully briefed on
these, and an appropriate risk evaluation built into any proposals relating
to economic development. |