Chapter 1Introduction
Context
1.1The Joint Select Committee on Northern Australia comprises Labor, Coalition and Greens Members of Parliament and Senators who live in Northern Australia and represent the people of Northern Australia. The committee is committed to providing practical, implementable, and measurable solutions to address the challenges associated with living and working in the region.
1.2As a parliamentary committee, the Joint Select Committee on Northern Australia (the committee) is responsible for scrutiny and oversight of the work of executive government related to Northern Australia. In particular, the committee's role includes:
ensuring that government policy and programs for Northern Australia are fit-for-purpose, effective and address the issues that they are designed to address; and
making recommendations to executive government to change or improve policy and programs for Northern Australia, based on issues identified by civil society, peak bodies, businesses, and individuals in evidence to the committee's inquiries.
1.3On 12 October 2022, the Minister for Northern Australia, the Hon Madeleine King MP, referred the following inquiry:
The Joint Select Committee on Northern Australia shall inquire into and report on workforce development in Northern Australia, considering the impediments to building the economic and social infrastructure and workforce needed to support economic development, with particular reference to:
(a)trends in Northern Australia that influence economic development and industry investment including population growth, economic and business growth, workforce development, infrastructure development, and Indigenous economic participation;
(b)impediments to building the economic and social infrastructure required to support industry and business to expand and create regional jobs;
(c)challenges to attracting and retaining a skilled workforce across Northern Australia; and
(d)empowering and upskilling the local Indigenous population.
Workforce development in Northern Australia
1.4Issues with workforce development in Northern Australia are not new. Inquiries have reported on and made recommendations to develop Northern Australia since 1937.
1.5Since the 44th Parliament (commencing in November 2013), there have been select and joint standing committees on Northern Australia (collectively, the Northern Australia committees), as follows:
Joint Select Committee on Northern Australia: December 2013 to May 2016 (44thParliament);
Joint Standing Committee on Northern Australia (45th Parliament);
Joint Standing Committee on Northern Australia (46th Parliament); and
Senate Select Committee on the effectiveness of the Federal Government's Northern Australia Agenda.
1.6Some examples of reports published by these committees that examined similar issues as set out in this issues paper include:
Pivot North: Inquiry into the development of Northern Australia, tabled on 4 September 2014;
Scaling Up: Inquiry into opportunities for expanding aquaculture in Northern Australia, tabled on 22 February 2016;
The engagement of traditional owners in the economic development of northern Australia, tabled January 2022; and
The final report of the Senate Select Committee on the effectiveness of the Federal Government's Northern Australia agenda, tabled April 2021.
1.7At the executive government level, ministers and assistant ministers for Northern Australia have been appointed on and off in different iterations since 1975. A Northern Australia Ministerial Forum, consisting variously of federal and state/territory ministers for Northern Australia, regional development, resources, trade, agriculture, industry and tourism, existed between 2010 and 2019. In 2022, the Federal Government re-established the Forum.
1.8In June 2014, the Abbott Government released a Green Paper on Developing Northern Australia, followed by a White Paper on Developing Northern Australia in June 2015.
1.9The Northern Australia Ministerial Forum committed to a refresh of the White Paper in October 2022. The Federal Government has since confirmed that the aim of the refresh is 'to align the direction of the developing Northern Australia agenda to current government policies and priorities'. Further, the refresh will also:
Strengthen Aboriginal and Torres Strait Islander peoples' engagement and outcomes;
Focus on climate action; and
Address the recommendations of the former Senate Select Committee into the Effectiveness of the Federal Government's Northern Australia agenda.
1.10Despite the inquiries, recommendations, initiatives by executive government, and the billions of dollars spent on policies intended to develop Northern Australia, most of the problems identified in evidence to this inquiry are long-standing and remain unresolved or only partly resolved.
1.11All this is to say, this is ground well-trodden. There has been multi-partisan recognition across decades that the development of Northern Australia requires attention. Attracting and retaining a long-term or permanent workforce is central to that development.
The committee's work plan
1.12Due to the substantial work that has preceded the referral of this inquiry, the committee has decided to take a different approach to this inquiry.
1.13The first public hearing, held on 31 March 2023, focused on existing federal and state/territory initiatives for workforce development in Northern Australia. The focus of the committee moving forward is to examine:
(a)Whether existing initiatives are working, fit-for-purpose, effective and being measured in terms of their effectiveness; and
(b)Key themes or issues that will most impact workforce development in the region that the committee considers deserve immediate attention.
1.14The committee is due to report on or before the last sitting day of May 2025. However, it is the committee's intention to table targeted reports on issues or themes throughout the Parliament rather than one large, overarching final report. This will ensure that:
More urgent issues can be addressed sooner rather than later; and
The committee will be able to monitor the impact of its recommendations across the Parliament to ensure the work of executive government in Northern Australia is effective and meeting its intended policy outcomes.
1.15This approach may also help to inform the executive government's refresh of the 2015 White Paper on Developing Northern Australia, as well as work on the planned Employment White Paper (due September 2023), by highlighting well-established issues and emerging issues that require attention.
1.16That said, as argued by the Queensland Government, there is a need to move the Northern Australia agenda from identifying issues to a concrete plan of joint action between all levels of government. Identifying broad issues up-front in this issues paper means the committee can focus, in future reports, on the reforms that need to occur.
The focus of this issues paper
1.17This issues paper focuses on key issues raised by submitters and witnesses that are currently affecting workforce development in Northern Australia. It should not be considered comprehensive but, rather, thematic.
1.18The purpose of this issues paper is to:
(a)Examine the impediments to workforce development in Northern Australia, and the historical initiatives introduced to address these impediments;
(b)Set out the key themes and issues that the committee may later examine in further detail, along with questions for submitters where the committee wishes to obtain further detail to inform its work; and
(c)Propose a roadmap for stakeholders to understand the committee's work on this inquiry through the 47th Parliament.
1.19The focus of the issues paper is not, in the first instance, to identify opportunities for workforce development in Northern Australia. This is because evidence indicates that key issues such as housing and social infrastructure are preventing the development of a sustainable workforce. As the Western Australian Government noted:
Efforts to boost the supply of skills and labour in regional and remote areas or Northern Australia will be ineffective if fundamental structural, service and infrastructure issues such as low wages (particularly for essential care workers), access to affordable housing and digital connectivity are not addressed in parallel.
1.20In short, while job opportunities that would support the long-term growth of Northern Australia are available in current industries, employers are reporting that they are unable to attract or retain staff because of housing and social infrastructure challenges. Workforce development requires action from governments to address these issues before Northern Australia can take advantage of emerging opportunities.
1.21Where relevant, to underscore the fact that some issues remain unresolved, the issues paper examines whether those issues were raised by the Joint Select Committee on Northern Australia in the 44th Parliament, the 2014 White Paper and the 2015 Green Paper.
1.22The committee notes the invaluable work of previous committees on Northern Australia that have raised the same or similar issues over the past decade. The work of the last joint committee inquiry that focused on the development of Northern Australia, which resulted in the Pivot North report, informed the 2015 White Paper. That committee was required under the inquiry's terms of reference to present to the Parliament its recommendation for a white paper, outlining:
Government action needed to implement the committee's recommendations;
How the committee's recommendations were to be implemented and by which government entity;
A timetable for implementation; and
How and when any government funding would be sourced.
1.23The 2014 Final Report of the Joint Select Committee on Northern Australia, for its inquiry into the development of Northern Australia, was tabled at a similar point in time to this issues paper: that is, around a year into the start of a new government, with a White Paper imminent. The committee is in a similar position to that of the previous Joint Select Committee in 2014 when it raised issues that reflect those outlined in this issues paper, although there are differences in order and urgency.
1.24No matter the side of politics, the election of a new government presents opportunities to engage with long-standing issues in fresh ways with renewed energy.
1.25The committee is committed to consultation with people in Northern Australia and using this consultation to inform recommendations to executive government to address the challenges raised in evidence.
1.26This issues paper does not contain recommendations to government. Instead, it poses questions to key stakeholders.
1.27However, the committee encourages the Federal Government to examine the issues set out in this issues paper to fully grasp the extent to which factors, especially housing and social infrastructure, need to be addressed before introducing new initiatives to encourage the development and expansion of Northern Australia. This is particularly important given the forthcoming refresh of the White Paper.
Structure of this issues paper
1.28According to evidence received so far in this inquiry, the three main challenges impeding workforce development in Northern Australia in 2023 are:
Access to and affordability of housing;
Limited access to healthcare; and
Access to other forms of social infrastructure, such as childcare and education.
1.29In short, businesses reported that even after offering attractive salary packages, potential employees from outside Northern Australia are turning down job offers because they were unable to secure housing, or because of limited access to social services, like health care, childcare and aged care. In turn, workforce shortages in social services are exacerbated by a lack of affordable housing for employees working in these industries, given they typically receive lower wages than many other industries. The committee was told that efforts to increase the supply of workers in Northern Australia will be ineffective unless the above issues are addressed in parallel with initiatives to attract and retain workers.
1.30It should be noted that the availability and affordability of housing, and workforce shortages in the healthcare and care sectors, are national issues that are exacerbated in Northern Australia because of the various factors discussed below.
1.31In line with former inquiries, submitters and witnesses also flagged ongoing issues with infrastructure and mobile and internet services. Submitters and witnesses also noted issues specific to remote Aboriginal and Torres Strait Islander communities, including access to education and training, workforce participation and the Community Development Program (CDP).
1.32The full list of issues raised in evidence is too extensive to discuss in detail here. The committee has chosen instead to focus on seven issues because these issues are widespread, have most impacted workforce development in Northern Australia, and can be addressed through recommendations to government.
1.33These issues, along with questions for stakeholders, are set out into chapters as follows:
Chapter 2: Aboriginal and Torres Strait Islander employment and participation;
Chapter 3: Housing;
Chapter 4: Social infrastructure, including health care, childcare and education; and
Chapter 5: Infrastructure and connectivity.
A note on terminology
1.34The committee uses the term 'Aboriginal and Torres Strait Islander' throughout this document.
Key themes of this issues paper
1.35Two themes frame the issues outlined in this issues paper:
The extent to which an issue is a national issue or specific to (or more pronounced in) Northern Australia; and
Whether an issue has been identified and addressed in the past or is current or emerging.
1.36Both themes are discussed in further detail below. Throughout the issues paper, the committee has drawn on national data to determine whether issues also exist at the national level. To help identify whether an issue is long-standing or historic, the committee has turned to the 2014 Interim Report and Final Report on Developing Northern Australia, by the Joint Select Committee on Northern Australia, along with the 2014 Green Paper and 2015 White Paper, the latter of which, as noted above, is due for a refresh.
Australia-wide versus Northern Australia-specific issues
1.37Several issues outlined in this paper are nation-wide issues that have been exacerbated by the remoteness and other challenges associated with living in Northern Australia. These include access to affordable housing, childcare and aged care.
1.38However, given the importance of Northern Australia to the Australian economy, the net economic impact of Australia-wide issues affecting Northern Australia is magnified.
1.39Acute challenges associated with living in parts of Northern Australia (and, in some instances, rural and remote Australia) include:
Access to education;
A lack of or limited quality infrastructure, including quality roads;
Extreme climate events;
The cost of insurance; and
Access to reliable phone signal and the internet.
1.40As at 31 January 2023, all employment regions in Northern Australia with data available had lower unemployment rates and the same or higher participation rates than the equivalent national rates (see Figure 1.1).
Figure 1.1Participation and rates of unemployment in Northern Australia (as at 31 January 2023)
Source: Department of Employment and Workplace Relations, answers to questions on notice from the public hearing on 31 March 2023 (received 9 May 2023), p. 3. For a full list of employment regions and their definitions, see Department of Employment and Workplace Relations, Employment Facilitators and Employment Regions, https://www.dewr.gov.au/local-jobs/employment-facilitators (accessed 8 June 2023).
1.41The number one employing industry nationally and for all regions above except Mackay is health care and social assistance, while for Mackay it is mining.
1.42The second largest employing industries by region in Northern Australia are as follows:
Broome and Townsville: education and training;
Darwin: public administration;
Cairns and Mackay: retail and trade;
Fitzroy: accommodation and food services.
1.43The Department of Employment and Workplace Relations (the Department) reported that in 2022, 69 per cent of recruiting employers in Northern Australia reported difficulty filling their most recent vacancies. The national result was 68 per cent. The Department informed the committee that it appears the manufacturing and construction industries are having relatively higher recruitment difficulty rates in Northern Australia, while accommodation and food services and retail trade industries may be having fewer difficulties.
1.44Evidence to this inquiry pointed to intense competition in Northern Australia across multiple industries and high turnover rates. Industries and sectors struggling most to attract and retain staff in Northern Australia include:
Health;
Childcare;
Aged care;
Water operations;
Construction — including engineers, plant operators and truck drivers; and
Tourism.
1.45Data from the 2022 Skills Priority List published by the National Skills Commission indicates national shortages in:
General practitioners;
Nurse practitioners and registered nurses across all health care areas;
Psychologists;
Childcare workers;
Aged or disabled carers; and
Construction occupations, including riggers, project managers, most types of engineers and truck drivers.
1.46Strong or moderate future demand across Australia is expected in all the above occupations. There is no skills shortage for plant operators and water operations nationally, and there is no national shortage for hospitality, retail and service managers in general (which covers part of the tourism industry).
1.47It is clear, then, that health, social services, and construction are experiencing national skills shortages.
1.48However, parts of Northern Australia are at a disadvantage attracting staff when competing with areas with far better measures of liveability.
1.49Under current policy settings, only a limited number of people are willing to work and live in Northern Australia. As a result, individual efforts to address shortages by industry and by state or territory impact the workforce in other parts of Northern Australia and, in some cases, rural and regional Australia. This is because these initiatives may attract people already living in Northern Australia—which does not then solve workforce shortages but moves them to another area.
1.50Broader trends impacting the Australian workforce that may be especially exacerbated in Northern Australia include:
Higher cost of labour;
Lack of skilled and semi-skilled personnel;
Adapting to climate change, with an increased likelihood of extreme climate events;
The rapid growth of the digital economy, with many parts of Northern Australia not having access to reliable internet;
Housing and accommodation shortages;
Continued supply chain interruptions;
Inadequate digital, physical and social infrastructure in parts of Northern Australia;
The availability and affordability of insurance; and
Increases to the cost of doing business, including those related to energy.
Historical versus current challenges
1.51Successive Australian governments have prioritised policies on, and funding for, infrastructure projects (particularly roads) and improved connectivity, such as mobile phone coverage and internet access. Ongoing projects that have led to measurable improvements for Northern Australia include infrastructure grants provided through the Northern Australia Infrastructure Facility and the Mobile Black Spot Program.
1.52This focus on capital infrastructure and communications infrastructure was essential: access to and connectivity across the region are required as a first step in the broader development of Northern Australia.
1.53However, we are in the midst of a transition to a new phase. Excluding housing, which was the main issue raised in submissions, for many parts of Northern Australia, social infrastructure appears to have overtaken capital infrastructure and connectivity as the primary impediment most stakeholders listed to workforce development. Social infrastructure, in the context of this inquiry, includes:
Health services;
Childcare;
Aged care;
Disability services;
Education;
Social housing; and
Justice and emergency services.
1.54Historically, issues with limited social infrastructure, digital connectivity, housing affordability and the high cost of transport were partly mitigated by high wages, salary package incentives and remote zone tax offsets. However, the Northern Territory Government argued that current incentives, such as remote zone tax offsets and regional area allowance schemes, 'are low and have become ineffective in meeting their policy intent' because, 'in the absence of indexing, the value of incentives has decreased significantly over time, and have not increased since 1993'.
1.55Over the coming decades, it is anticipated that Australian citizens will demand, better quality, accessibility, and variety of social infrastructure, to a greater degree than in the past. This is particularly relevant for younger people and families, who may choose not to live in Northern Australia because of a perceived or actual lack of social infrastructure.
1.56It should be noted that parts of Northern Australia still need significant investment in infrastructure.
1.57Nonetheless, the committee refers the Federal Government to this shift in focus. Challenges with attracting and retaining a long-term or permanent workforce to Northern Australia cannot be overcome without concrete initiatives to address housing and social infrastructure.
Final committee comment
1.58As stated earlier, it is the committee's intention to focus on some of the key issues outlined above in greater detail across this parliament, beginning with hearings into Aboriginal and Torres Strait Islander workforce development and what should replace the Community Development Program.
1.59The committee appreciates the ongoing involvement of state and territory governments in this inquiry because the key issues that most impact workforce development in Northern Australia are, for the most part, a shared responsibility between different levels of government. As noted above, the lines of responsibility and funding are not always clear.
1.60Many of the major issues impeding workforce development in Northern Australia are Australia-wide issues. This reflects the fact that the committee's remit includes examining problems that exist across half of the Australian landmass. Entire committees are dedicated to, for example, health and education, which necessitates an approach that narrows down areas of investigation.
1.61The issues affecting workforce development are numerous and have been discussed in other forums and reports. The committee will focus on issues in this paper that will have the greatest impact on workforce development in Northern Australia—areas in which the committee can propose practical, implementable, measurable recommendations to government.
1.62The committee invites stakeholders to provide submissions or supplementary submissions in response to any of the questions set out in this issues paper, and to provide greater detail on the issues outlined below.