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LNP NQPC submission to Green Paper on Developing Northern Australia

LIBERAL NATIONAL PARTY NORTHERN DEVELOPMENT POLICY COMMITTEE

Response to the Green Paper on Developing Northern Australia

LNP Northern Development Policy Committee submission

8/8/2014

The submission responds to the Australian Government’s Green Paper on developing northern Australia. It addresses the terms of reference as it applies to the northern region of Queensland that is above the Tropic of Capricorn (the North Queensland Region) and where appropriate northern Australia).

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8 August 2014

Northern Australia TaskforceDepartment of the Prime Minister and CabinetPO Box 6500CANBERRA ACT 2600

Online: http://northernaustralia.dpmc.gov.au

Dear Northern Australia Taskforce

The Liberal National Party’s (LNP) Northern Development Policy Committee (the NDPC) responds to the Prime Minister the Hon Tony Abbott MP and the Deputy Prime Minister The Hon Warren Truss MP’s invitation for input into the Green Paper on Developing Northern Australia. The NDPC is a Committee of the LNP’s Policy Standing Committee.

The responses reflect the views of the LNP inasmuch as they pertain to the Queensland region above the Tropic of Capricorn and confined to issues that have direct relevance. More generally, where appropriate a view is expressed that refers to northern Australia.

The submission addresses the Terms of Reference stated in the Green Paper’s Appendix A.

The foundation of the LNP’s submission is the Party’s democratic principles which include:

(viii) looking primarily to the encouragement of individual initiative and private enterprise as the dynamic force of progress.”1

Thank you for your consideration of the attached submission. We would be pleased to provide further comment on any matters in our submission that may require clarification.

Yours sincerely

Signatures removed

Bruce McIver Robyn QuickPresident LNP Chair

LNP Northern Policy Development CommitteeCair2012

1 Liberal National Party, Constitution, Democratic Principles, p.9, at www.lnp.org.au.

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Contents

Covering letter 1

Contents 2

Section AProfile of Northern Australia 3 - 5

Section BOpportunities for Northern Australia 6 - 11

Section CBarriers to Development 12 - 15

Section DPolicy Directions 16 - 20

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SECTION AProfile of Northern AustraliaA.1 Are these the major characteristics of northern Australia?

A.1.1 The characteristics identified in the Green Paper would be classified as being the most significant. Inherent in the north Queensland region (NQR) is each of these characteristics.For example:

There are 6 cities - Cairns, Townsville (the largest city), Mackay, Rockhampton, Mount Isa Charters Towers and diverse medium to small size towns. There are 50 local government associations.

At 30th June 2013 an estimated 807,938 persons lived across the four Australian Bureau Statistical Regions - some 18% of the total Queensland population. This equates to low population density.

The majority of the population is geographically centred along the eastern seaboard and to the immediate west of the Great Dividing Range. A small percentage of the region’ residents (approximately 4 per cent) live in shires with populations ranging from some 290 to 23,280 persons which indicates the variation in population across the region

The natural environment assets of the Great Barrier Reef, the World Heritage Listed Wet Topics, the Gulf of Carpentaria river system and the Gulf Savannah

The resources and energy sector incorporates the northern Bowen Basin, the untapped Galilee Basin, the North West Minerals Province and the Cape York Peninsula mining interests

The economic wealth generated in the region annually is estimated at $60 billion drawn from all sectors from minerals, to agriculture, to tourism, to construction to service etc.2 Other economic and statistical research data indicates that the collective output is some $74.5 billion.3 The estimated

value of projects currently underway, approved or proposed in the region is $78.23 billion.4

Northern Queensland has 17 State Electorates, and 4 Federal Divisions and some 50 Local Governments

A.2 How do these characteristics differ across and within northern Australia?

2 Michael, P. “North Queensland wants to go it alone and create its own economic zone,” the Courier Mail, 26 September 2012.3 Cairns Post, “Should Far North Queensland become its own state,” 13 July 2013.4 See Townsville Bulletin, “$78 billion investment pipeline boosts regional economy,” 11 February 2014. (Townsville Enterprise December Quarter Development Status Report).

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Far North Outback 35,327Cairns 240,184 Townsville 233,907Mackay 180,260 Rockhampton 118,260

Total 807,938


A.2.1 The characteristic differences are that the major population centres are in and adjacent to coastal cities and towns where there are businesses, employment and much social amenity. These major cities and towns form the dormitories for employees primarily in the resources sector. Rural and remote towns and communities struggle to maintain population and services due to advances in technology and communications, fly-in-fly- out or drive-in-drive-out workforces for the resources sector, drought and government decisions e.g. the withdrawal of government services and the overnight cessation of the live cattle export trade with Indonesia.

A.2.1.1The environmental and resource assets extend over the entire NQR.

A.3 What features of Northern Australia are the most important to the current growth and future development?

A.3.1 In terms of the NQR, its population base, its economic industries, its business and financial sectors, its natural environment, the diversity of resources, well established cities, ports and airport facilities, sound land tenure system and a service delivery system to meet current demand in the populated areas.

A.4 What do the population, demographic, employment and urbanisation trends mean for northern Australia?

A.4.1 In terms of the NQR, the population, employment and urbanisation trends are dependent on current and future public and private investment in infrastructure, industrial and social development and service delivery to provide the business and employment opportunities and community amenity. The Queensland Plan estimates that by 2036, Queensland’s population would double to almost 8 million with half of it living outside the populous south east corner.5 To achieve this there will need to be underpinning policies to incentivise population movement, increase private and public sector investments in industry, infrastructure, and services.

A.4.1.1 Infrastructure Australia (IA) predicts northern Australia’s population to increase to 1.77 million people in 2031, up from 1.2 million in 2011, with most of the growth occurring in North Queensland. However, other estimates put Townsville’s population as potentially growing to more than 1 million in the future.6 IA’s draft estimates indicates that almost 50 percent of the increase will be in the next 17 years with most of the growth to occur in North Queensland.7

A.4.1.2 Demographically, some 21% of the persons in the NQR are aged 0 – 14 years; 68% are aged 16 – 64 years; 10% are aged 65 years and over. The population ratio of people in the 45 – 64 age statistical bracket is 2.2 times the number currently in the 65 plus statistical bracket.8 Similar to other Australian regions, the trend is towards an increasing population over 65 years. In 2044, there is projected to be 2.7 people of working age to support every Queensland person aged 65 years and over, compared to 5.1 in 2011.9

5 Queensland Government, The Queensland Plan, p.5, 12.6 Templeton, A, “Townsville tipped to hit 1 m people”, Townsville Bulletin, July 1, 2014.7 Ibid.8 Regional Development Australia, Townsville and the North West, Joint Select Committee of Northern Australia, Submission, February 20149 The Queensland Government, The Queensland Plan, p.15.

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A.4.1.3 Over the last three years people have been relocating from metropolitan areas to the regions for “quality of life, jobs in the gas and mining industry and cheaper homes.10 Relocation policies and programs are necessary to assist industry and employees to move out of the populous south-east corner. A case, for example, could be made for southern urban based meat processing plants to move to major regional centres closer to beef cattle production areas.

A.4.1.4 Such relocation would lessen city/south east infrastructure requirements by reducing transport in and out, employee travel in and out and congestion. Moving the processor, would reduce the transport and productivity costs of the raw product for both the supplier and the processor and therefore the end user. Australian businesses would benefit by increased profitability.

A.5 What are the prospects for and major risks for the northern Australia economy over the next decade? What aspects of the northern Australian economy should be a focus for government?

A.5.1 The lack of planning for investment in and the development of essential physical and social infrastructure is a major risk to the growth of the northern economy. Maintaining a residential population to work on infrastructure projects without the necessary livability for families and young people is a significant risk. It would be disaster for such projects to fall to fly-in-fly-out or drive-in-drive-out workers. The immediate focus should be to establish the regulatory, taxation and economic environment and facilitation of funding the physical and social infrastructure so that potential residents can see a plan on which they can base any relocation.

A.5.1.1 To encourage the structural changes to population, attracting investment flows, securing the participation of the private sector, a concessional taxation regime for northern Australia has to be developed. These taxation arrangements would confer significant benefits on northern Australian residents in respect of: capital gains, fringe benefits and company taxation and personal rate of taxation. State and Territory Governments should make too, a contribution to the incentive program by a concessional taxation regime which should include land and payroll taxes, motor vehicle registration, stamp duty etc.

A.5.1.2 The fundamental requirements to progress the northern Australia economy include planning, private sector and public investment in infrastructure, security of energy and water supply, efficient transport infrastructure, population growth with the services to support such growth.

10 McCarthy, J. “Queenslanders moving to the bush for quality of life in gas and mining and cheap houses,” The Courier Mail, 21 January 2014. (Study by the Research Institute of Australia)

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SECTION BOpportunities for Northern Australia

B.1 Are these the major global and domestic trends that are creating opportunities for development in Northern Australia?

B.1.1 In terms of the NQR the characteristics identified in the Green Paper would be classified as being the most significant. For example:

The NQR is geographically situated within the Asian economies and able to participate in the trade and long-term economic growth of these economies. They have the potential to provide the markets for the NQR’s increasing agricultural and mining export capacity. In terms of the domestic projected capacities of these economies, the demand for resources, housing, food

and health care is projected to exceed the ability to supply these fundamental requirements of life. The tourist destinations of NQR should benefit from

the increasing affluence of the Asian economies. The NQR has three and one part energy basins - Laura, north Bowen,

Galilee and part Georgina Basins. The NQR has enormous potential for future growth and development derived from value adding to its suite of natural resources and its location as the gateway to the Asia. The NQR region is recognised internationally as an important source for a broad range of base metals coal production and mineral development opportunities. It contains an estimated 75% of Queensland's total metalliferous resources (e.g. copper, silver, lead and zinc) and is recognised as a world-class exploration destination.11

The NQR’s defence sector and industries are an integral part of Australia’s security and will remain so into the future. In terms of the NQR, the cities of Townsville, Cairns, and Rockhampton have significant defence presence and defence support industries. In terms of biosecurity, Australia has a

unique position in Asia. Biosecurity policies, practices and services must be best practice to capitalise on the geographical isolation that inhibits diseases and pests from entering this continent.

The Coalition’s 2030 vision for Northern Australia points to the creation of an education hub with world class vocational and higher education campuses in selected areas. In the NQR, a reputable learning hub is based around The

James Cook University (JCU) centred on Townsville with campuses in Cairns12, Mackay,13 Mount Isa14 and Thursday Island15. JCU also has a Singapore Campus. The Central Queensland University (CQ Uni) centred

11 Department of Natural Resources and Mines, “Queensland Mineral and Energy Province Report and Data Package,” March 2011.12 The JCU Cairns Campus offers both undergraduate and post graduate courses13 The new JCU Mackay Education and Research Centre are located at the Mackay Base Hospital. The centre accommodates the teaching of the JCU Social Work degree and provides a larger facility for medical and dental clinical placements. The JCU Health and Medicine Faculty in partnership with the Mackay Mater offer a Bachelor of Nursing Science.14 JCU’s Mount Isa Centre for Rural and Remote Health creates access to health education for the remote west region. It facilitates research and education for rural, remote and indigenous health issues.15 JCU Thursday Island provides teaching and learning facilities for nursing and education students in the Torres Strait region at the northern tip of Australia.

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on Rockhampton has campuses that include Mackay16 and Cairns17. These provide the foundation for the establishment of world class tropical medical centres of excellence in the North. The establishment of Centres of

Excellence in tropical agriculture and mining would grow exports of technical skills related to resources and agriculture into a $7 billion a year industry. 18

The NQR has a diverse and established economy incorporating all sectors with the capacity for expansion with the necessary infrastructure, services

and investments. The NQR’s Indigenous economic development has much potential and

rests on an all level-whole-of-government approach that works with the Communities and Islanders and industry on investments.

Groundwater supply, for industrial development for agriculture and mining is essential for each sector to reach its potential. Developing mines in the Galilee Basin should avoid accessing and utiilsing the artesian groundwater. The NQR’s landscapes and natural environmental assets attract and support a growing tourism industry and are the foundation of a strong industrial sector that includes mineral, coal and agricultural development.

B.2 What does the rise of Asia mean for Northern Australia? How could new opportunities be pursued?

B.2.1 The economies of Asia have the potential to provide the markets for the NQR’s increasing agricultural and mining export capacity. In terms of the domestic projected capacities of the economies of Asia the demand for resources, housing, food and health care is projected to exceed the ability supply these fundamental requirements of life.

B.2.1.1 New opportunities can be pursued via additional economic reforms and infrastructure efficiencies at both state and federal levels. The Free Trade Agreements signed with Japan and South Korea will provide new opportunities and enhance the region’s trade and investments links with enlarged markets. The Trans Pacific Partnership Agreements has the scope and competence to provide a liberalised trade framework on which to build trade relations between Australia and Asia. The increasing affluence of the residents of these economies will provide economic tourism opportunities for NQR’s tourist attractions.

B.3 What are the prospects to further expand Northern Australia’s minerals and energy sector?

B3.1 There are vast deposits of coal in the developing Galilee Basin. The Queensland Government declared in June 2014, the Galilee Basin State Development Area to support the development of the Galilee Basin, and provide an efficient way to transport coal to the Port of Abbot Point. It includes the Carmichael Mine which is set to be one of the largest coal mines in the world. There are prospects for significant mineral development in the North West Minerals Province, the North East Minerals province east of Cairns and the alumina rich deposits of Cape York.

16 Central Queensland University (CQUni) Mackay has five Schools - Business and Law, Education and the Arts, Engineering and Technology, Human, Health and Social Sciences, Medical and Applied Sciences and Nursing and Midwifery.17 CQUni Cairns Distance Education Study Centre. 18 The Coalition’s 2030 Vision for Developing Northern Australia, June 2013, p.2.

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B3.1.1 The prospects for energy expansion are enormous. Future mineral, agricultural, community, social and commercial development is dependent on a competent and secure power supply. The construction of a coal fired, base load power station in the region is an urgent need to for communities and industry to prosper.

B.4 What impact does the strategic environment have on northern Australia’s economic development?

B4.1 The defence and biosecurity services are essential to the ongoing economic development of northern Australia, and, indeed the nation. The impact of these services, if diminished in anyway would undermine economic investment and social confidence across all of northern Australia.

B.4.1.1 The positive economic impact of defence is recognised by the Queensland Government which has established a Defence Industries Queensland entity that supports national and international prime contractors to find defence capabilities, helps companies working or wishing to work in defence to up-skill and make connections with defence contractors and suppliers and assists the Australian Defence Force to expand its presence in Queensland.

B.4.1.2 Referring to border security and the Federal Government’s recently announced Australian Border force, elements of this should be based in the North of Australia and an associate training facility located in the region.

B.4.1.3 Australia’s strict biosecurity protocols have a positive impact on economic development and enhance agricultural products in the Asian markets. Biosecurity policies, practices and services must be best practice to minimise risk to each agricultural sector; to ensure access to global markets and developing new opportunities for world-class farm products. Australia must advise its trading partners that its biosecurity protection measures are not intended to frustrate or impede trade but are genuinely there to protect the delicate ecology, flora and fauna of Australia from introduced threats.

B.5 What are the major opportunities to grow education, research, and skills development in the North? What comparative advantages do northern institutions have?

Education

B.5.1 The Coalition’s 2030 vision for Northern Australia points to the creation of an education hub with world class vocational and higher education campuses in selected areas.

B.5.1.1 An educational hub exists through the James Cook University (JCU) centred on Townsville with campuses in Cairns19, Mackay,20 Mount Isa21 and

19 The JCU Cairns Campus offers both undergraduate and post graduate courses20 The new JCU Mackay Education and Research Centre are located at the Mackay Base Hospital. The centre accommodates the teaching of the JCU Social Work degree and provides a larger facility for medical and dental clinical placements. The JCU Health and Medicine Faculty in partnership with the Mackay Mater offer a Bachelor of Nursing Science.21 JCU’s Mount Isa Centre for Rural and Remote Health creates access to health education for the remote west region. It facilitates research and education for rural, remote and indigenous health issues.

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Thursday Island22. JCU also has a Singapore Campus. The Central Queensland University (CQ Uni) centred on Rockhampton has campuses that include Mackay23 and Cairns24. The CQ Uni operates the Cannonvale Study Hub in partnership with the Barrier Reef Institute of TAFE campus.

B.5.1.2 Opportunities to grow education, research and skills may be developed through:

Building on the world class School of Public Health tropical medical established by the James Cook University

Establishing Centres of Excellence in tropical agriculture and mining Developing of agricultural colleges, particularly in areas of specialist tropical

and rangeland expertise, with colleges offering flagship courses of expertise

Providing trade training in the region’s TAFEs to supply technical expertise for:

(i) the growing mining industry in Papua New Guinea (PNG) and Indonesia and actively market training places for the PNG and Indonesian resources sector,

(ii) other mining areas in the region to meet the demand for skilled workers and(iii) practical hands on training for skilled workers within the agricultural

fields

Continuing the Direct Instruction initiatives as being trialed by the Cape York Institute

Establishing trade training centres at Yarrabah and Palm Island, in conjunction with VET programs and local high schools

B.5.1.3 The comparative advantage learning institutions in the NQR have rest on the different skills sets e.g. ecological and climatic challenges, natural resource and environmental management, animal husbandry, tropical health, tropical medicine and diseases.

B.5.1.4 The initiatives being developed by the Australian Government to support the education of the youth of Australia in tertiary institutions in Asia would be applicable for future cultural relations particularly for northern Australia and would support the economic and trade relations of the future.

B.6 How can Indigenous Australians in the north more actively participate in economic development?

B.6.1 Individual self-reliance and independence through economic and social (e.g. health and education) development, employment and business opportunities will erode the reliance on welfare and enhance the capacity of communities, families and individuals leading to the management their own affairs.

22 JCU Thursday Island provides teaching and learning facilities for nursing and education students in the Torres Strait region at the northern tip of Australia.23 Central Queensland University (CQUni) Mackay has five Schools - Business and Law, Education and the Arts, Engineering and Technology, Human, Health and Social Sciences, Medical and Applied Sciences and Nursing and Midwifery.24 CQUni Cairns Distance Education Study Centre.

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B.6.1.1 Industry, business and employment opportunities has the potential to improve the quality of live and standard of living and engagement in economic development by Indigenous Communities and the Torres Strait Island people.

B.6.1.2 Where possible, there must be a concerted effort to assist with investment opportunities to provide economic and productive use and outcomes of Native Title lands. For example the Yarrabah Community has a detailed development plan and is seeking private investment to advance it; Hopevale is an example of a community where home ownership is now possible and a banana farm and production centre has been established - although impacted by the recent Cyclone Ita.

B.6.1.3 The potential for Indigenous Communities’ and Torres Strait Islander economic growth and development rests on an all level-whole-of-government approach that works in cooperation with the Communities and Islanders. Coordination of policies and programs between governments has the potential to deliver better outcomes.

B.7 What are the opportunities to diversify northern Australia’s economy? What could be done to grow established sectors, such as agriculture or tourism?

B.7.1 The opportunities to diversify the NQR’s economy are enormous if there are investments in the essential physical and social infrastructure, energy and economic development. The minerals sector is open for diversification arising from the rich and largely untapped deposits in the North West Minerals province. The Queensland Government has begun to investigate ways to unlock $4 billion worth of mineral resources, which includes the potential for developing commercially viable deposits of rare earth elements in the North West Minerals Province. The former Mary Kathleen uranium mine is one of the potential locations for rare earth resource development.25

B.7.1.1 There is bauxite projects either under consideration or planned for Cape York. These include the Aurukun Bauxite Project, Cape Alumina and the Wongai Projects. The Queensland Government announced for the recommencement of uranium mining in Queensland, governed by strict environmental, safety and approval processes. Potential mineral developments in the region are considerable, but to proceed these must be underpinned by efficient transport and energy networks.

B.7.1.2 The agricultural industry has the capacity to expand significantly if there are investments in energy, transport networks, water projects and new markets. There is scope to grow agriculture by bringing to fruition such schemes as:

• Gilbert River and Flinders Precincts26

• Upper Herbert River alluviums (i.e. Tirrabella, Euramo Stations etc.)• Further expansion of Mareeba Dimbulah Irrigation Area via the proposed

Nullinga Dam27

25 Cripps, Hon A. “$4 billion mineral bounty in North West Queensland,” 5 December 2012.26 The Queensland Government announced July 2012 a release of 80,000 and 15,000 megalitres of water reserved for new irrigation developments in the Flinders and Gilbert Catchments respectively. In May 2013 the Minister for Natural Resources and Mines announced the successful tenders. Cotton Australia is of the view that the industry can expand onto the Flinders, assuming improved transport infrastructure and eventually a cotton gin.

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• Areas within Cape York28

Fitzroy Agricultural Corridor29

The Urannah Water Storage Scheme30

The Connors River project31

B.7.1.3 The region’s natural environment, climate, diverse culture and unique natural heritage provides for substantial tourism growth. The Queensland Government is in the process of awarding two new casino licenses to be integrated into resort developments in regional Queensland.32

B7.1.4 A potential major project is the proposed $8.3 billion Aquis resort development north of Cairns. It has received from the Queensland Government the final terms of reference for the development of the environmental impact statement.33 South of Cairns is the $1.2 billion Ella Bay Integrated Resort proposed development.34 On the Capricorn Coast, significant development from Japanese and Australian syndications are expected in this area in the next 2-4 years - worth hundreds of millions of dollars. Upgraded road networks would increase substantially outback tourism.

B.8 Are the north’s natural assets and resources underutilized? What can be done to realise the opportunities provided by the region’s unique natural qualities?

B.8.1 The natural assets and resources are underutilised due to lack of human and financial capital and infrastructure to either showcase or develop the resources. Commitment to the development of northern Australia underpinned by a policy framework that incorporates a comprehensive program of service delivery and fiscal incentives would initiate the step to realise the opportunities provided by the region’s unique natural qualities.

27 E.g. The moderation/upgrading of the current irrigation system for the MDIA. The Nullinga Dam has the capacity to relieve pressure on the Tinaroo Dam by supplying water to the western parts of the MDIA i.e. the Mutchilba-Dimbulah localities and could also allow for further expansion of the MDIA.28 The Project is a large scale integrated farm and processing precinct in the Gulf Savannah -250 kilometres south west of Cairns. It is a Greenfield agricultural enterprise comprising 50,000 hectares of irrigated cropping land, co-located processing facilities and associated water, electricity and logistics infrastructure will be established. The Queensland Government has declared it a coordinated project, which gives it a streamlined approval process. See Dalton, C. “A $2 billion agricultural project 250km south west of Cairns gets state backing,” Cairns Post, 26th December 2013.29 Capricorn Tourism and Economic Development Ltd Strategic Plan 2010-2013 p 26. Agribusiness value-adding based around existing and potential production in Fitzroy Agricultural Corridor. Landry, M. “Landry urges leaders to keep pushing for Fitzroy food bowl,” 15 January 2014. 30 The proposed Urannah Dam is located on the Broken River adjacent to Urannah Creek. It is centred on the upper Bowen/Broken River valley, south of Bowen and north-west of Mackay and south of Collinsville. The Wirri and Birrigubba people have the native title right to the dam site. It is their aim for the dam to be built with longterm benefits accruing to them. The proposed scheme has the potential to provide water for the developing Galilee Basin and the established Bowen Basin. It has the potential to provide new irrigation opportunities for the horticulture, cane growing, feedlotting, and aquaculture industries, for industrial development, social amenity and tourism.31 The proposed dam is located on the Connors River, near Mount Bridget, approximately 110 kilometres due east of Moranbah and 70km south of Sarina. It has the potential to provide irrigation for the mining sector and agricultural production including broadacre cereal crops and feedlotting, industrial development, social amenity and tourism.32 Seeney, Hon J. “Race for regional integrated resorts starts today,” Media Statement, 19 December, 2013.33 Seeney, Hon J. “Aquis evaluation Coordinator-Generals 200th decision,” Media Statement, 4 October, 2013.34 See http://www.ellabay.com.au/

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SECTION CBarriers to DevelopmentC.1 Are these the major barriers to further economic development to northern Australia? What are the impacts on industries and communities?

C.1.1 The Green Paper identifies barriers to development which include:

1. Remoteness, climate and livability2. Infrastructure3. Land access and use4. Water and energy security5. Business, trade and investment6. Governance

C.1.1.1The view is that these include the major barriers to further economic development. More emphasis should be put on service delivery such as education and primary health.

C.2 What are the main factors that attract or deter people from living and working in northern Australia?

C.2.1 The main factors that attract people to the NQR include: secure employment, sound business or investment opportunities, training, education, and family or climate/environment factors. The major cities and towns with the leisure pursuits, services and consumer outlets are attractive to the general populous.

C.2.1.1Deterrents to people living and working in the north distant from the major cities include the absence of or minimal services and no or inefficient physical and social infrastructure. The absence or of reliable energy supplies, transport networks, token or no leisure pursuits, consumer outlets, health and education services are impediments. Livability without these diminishes quality of life and standard of living and is exacerbated when climate is included.

C.3 What are the infrastructure limitations across northern Australia?

C3.1 The infrastructure limitations in terms of the NQR include:

A secure power supply for mineral, agriculture, industrial, community and social development

Water storages for industry development adjacent to the Gilbert, Flinders, Herbert, Connors and Broken Rivers

Communications - landline, internet and mobile services Remote and rural highways that are not upgraded and maintained e.g.

Peninsula Developmental Road, Hann Highway, Savannah Way A reliable all weather transport link to southern markets A reliable highway from the south to the north - the Bruce Highway The road networks utlised by B doubles and road train hauliers need to be

improved and extended Efficient rail corridor between Mount Isa and Townsville The Mareeba airport inability to function for domestic and cargo use Costly air services to southern and regional centres and inefficient air

services particularly in Cape York and the Gulf

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C.4 How effective are the arrangements for accessing and using land in northern Australia?

C4.1 The NQR has an established land tenure system incorporating the full suite of Queensland land tenures of which the majority is state owned land. Leasehold land in several forms is the main tenure.35

C.4.1.1 The Queensland Government in 2012 instigated an inquiry into the ‘Future and Continued Relevance of Government Land Tenure across Queensland’. As a consequence, reforms have commenced to promote greater certainty for rural leasehold land. This includes red tape reduction in lease renewal and setting clear pathways to upgrade from leasehold to freehold. Additionally, it is the government’s intention to reform the Land Act 1994 and other land legislation to modernise the principles and purposes of land administration, management and disposal. The focus will be on:

investment certainty and sustainable land management focusing on leases for tourism and other commercial purposes

management of reserves and roads including stock routes.

In parallel, there will be the development of a smoother approach to native title negotiation and incentives for all parties to seek resolution.36

C.4.1.2These recent and proposed changes have the potential to enable more diverse uses within tenures and clarify access and use rights where there are various entitlement holders. Evolving agriculture and industrial developments will require attention to additional tenures such as water and biodiversity and to clarify indigenous interest in land and water.

C.5 How effective has water infrastructure and planning been in northern Australia? What impact has this had on economic development industry growth and development?

C.5.1 In terms of NQR, there are excellent examples of water infrastructure and planning. The prime example is the Burdekin Falls Dam. There was long term planning commencing in the 1950s with establishment of the Burdekin River Irrigation Area on 7,500 hectares at Clare, Millaroo and Dalbeg. In March 1980, the Queensland Parliament authorised the establishment of the Burdekin River Project - the largest land and water conservation scheme undertaken in Queensland. The project supplied water for the irrigation of new and existing farms in the lower Burdekin River region and to supplement the urban and industrial needs of the twin cities of Townsville and Thuringowa.

C.5.1.1Further examples are the Mareeba-Dimbulah Irrigation Area, which relies on the Tinaroo Dam. Construction of this dam started in 1953 and was completed in 1958; and the Julius Dam constructed 1976 for town water supply for Mount Isa and irrigation. The Burdekin, Tinaroo and Julius Dams, as examples have been the foundation of substantial economic and social development attracting population, industry and services to the NQR.

35 E.g. See www.dnrm.qld.gov.au/36 Department of Natural Resources and Mines, “Queensland Government response to the Inquiry into the Future and Continued Relevance of Government Land Tenure across Queensland,” http://www.parliament.qld.gov.au/documents/committees/SDIIC/2012/01-Government-land-tenure/gr-rpt25-23Aug2013.pdf.

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C.5.1.2Planning and funding for further water storage schemes to progress such as for the Urranah Water Storage Scheme; the Connors River Project and further expansion of the Mareeba Dimbulah Irrigation Area via the proposed Nullinga Dam.

C.6 What is impeding further business growth, trade and investment in the north? How do these challenges affect different industries?

C.6.1 Impediments to business growth include:

The chronic shortage of public and private sector capital investment for social and economic development

The inadequate economic and social infrastructure The inadequate communication services in rural and remote towns The inadequate delivery of services to meet demand for potential

developments The inadequate transport road network system for rural and remote areas The onerous and time consuming environmental and business regulatory

obligation and costs; The inadequate freight services to rural and remote centres Under resourced primary health care and education services in rural and

remote areas Visa restrictions that impede tourist transitions and movements The lack of skilled labour force exacerbated by the resource sector’s fly-in-

fly- out workforce Workplace relations (the Fair Work Act) High insurance costs

Impediments to trade include:

The application of full cost recovery for inspection services to most export industries. (Cost recovery should be waived on export inspection services

for new industries in defined export investment zones for a period of time, with full inspection charges phased in over a period of time thereafter.)

New or existing or developing existing industries will have to respond to an increasingly competitive market place from trade liberalisation. (Additional economic reforms and infrastructure efficiencies at both federal and state levels must occur to allow these to compete.)

Infrastructure deficiencies and inefficiencies Any failure to protect export enterprises from anti-competitive conduct such as dumping

Impediments to investment include:

The absence of a comprehensive plan of service and fiscal incentives large enough to initiate and sustain economic development growth and achieve a significant shift in the present population distribution.

The absence of a local skilled workforce Financial risk on new infrastructure projects e.g. e.g. investing equity in rail

and port infrastructure

C.6.1.1Industry for investment purposes requires efficient transport infrastructure whether it is agriculture, tourism, services, construction or resources.

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C.7 What are the governance challenges in northern Australia? How do they manifest in cities, towns and remote communities? How do they affect economic development in the north?

C.7.1 The prime governance challenge is that the decision-making is distant from cities, towns and communities that form the region of northern Australia. Decision making is slow and cumbersome drip fed through multiple layers of governments and bureaucracies. Communications and travel from cities, towns and remote communities for input to any aspect of the decision making process is costly and time consuming. Distant or elongated decision making deters or frustrates economic or social development.

C.7.1.1The Federal Government should initiate a program of institutional commitment to northern Australia in which appropriate government agencies of a substantial nature relocate under the auspices of a specific ministry, authority or commission.

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SECTION DPolicy DirectionsD.1 What are the right policy directions for developing northern Australia? How can we support industry and community growth?

D.1.1 The Government has identified the six possible policy directions to develop northern Australia as:

1. Delivering economic infrastructure2. Improving land use and access3. Improving water access and management4. Promoting trade and investment and strengthening the business

environment5. Fostering education, research and innovation6. Enhancing governance

D.1.1.1These policy directions require a bold and visionary policy framework, which incorporates a comprehensive program of service delivery and fiscal incentives large enough to initiate and sustain economic growth and achieve a significant shift in the present population distribution. To encourage the structural changes to population, attract investment flows and to secure the participation of the private sector, a concessional taxation regime for northern Australian has to be developed. As indicated in A.5.1.1 these taxation arrangements would confer significant benefits on northern Australia residents in respect of capital gains, fringe benefits, company taxation and personal rates of taxation. Essential government infrastructure should be financed by Northern Development Infrastructure Bonds, which would have zero taxation and could be used to mobilise the nation’s significant superannuation savings.

D.1.1.1.1 Incremental progress is being made in delivering large-scale economic infrastructure as identified in D1 of the Green Paper. Each of these significant projects is important to the development of northern Australia. In terms of the NQR, the upgrade of the Bruce Highway as the major transport network from the south is recognised as a priority. A reliable all weather transport link is vital to both Queensland’s and the NQR’s economies and the Hann Highway should be seen as alternative route with the unsealed section (Hughenden to Lynd Junction) completed. The sealing of this section would benefit the cattle industry, long distance transport, tourism, mining safety and the social and economic development of the NQR.

D.1.1.1.2 The upgrading of and improving access to major and secondary roads and other routes for B double and road trains is necessary for the beef/sheep industry and freight transport sectors. The efficiencies of the rail corridor between Mount Isa and Townsville should be improved to enhance commodity and freight movement.

D.1.1.2Land tenure and access is fundamental to provide investor and community confidence and certainty. To develop the NQR’s potential, land tenure and access must enable financial and security in development/property markets; and development planning and economic growth strategies.

D.1.1.2.1. The Queensland Government has introduced much needed and acclaimed reforms to land tenure across the State. In particular these have

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provided greater certainty for rural leasehold land. This includes red tape reduction in lease renewal and setting clear pathways to upgrade from leasehold to freehold. Additionally, it is the government’s intention to reform the Land Act 1994 and other legislation to modernise the principles and purposes of land administration, management and disposal. The focus will be on:

Investment certainty and sustainable land management focusing on leases for tourism and other commercial purposes.

Management of reserves and roads including stock routes.

In parallel, there will be the development of a smoother approach to native title renegotiation and incentives for all parties to seek resolution.37

D.1.1.3Improving water access and management in the NQR will be a priority in view of evolving agriculture and industrial developments. Attention will have to be given to additional tenures such as water and biodiversity and to the clarification of indigenous interest in land and water.

D.1.1.4Promoting trade and investment and strengthening the business environment must be an ongoing requirement for all governments for the industry sectors that rely on external markets. In developing new or existing industries, the regions businesses will have to respond to increasingly competitive market place and trade liberalisation. Additional economic reforms and infrastructure efficiencies at both state and federal level must occur to allow business to compete.

D.1.1.5The NQR has a world class education, research and innovation capability through vocational and higher educational facilities. It can be construed that it has the hallmarks of an education hub in the mould envisaged in the Coalition’s 2030 Vision. Further advances are needed such as Centres of Excellence in tropical agriculture and mining and the provision of trade training in the region’s Technical and Further Education colleges.

D.1.1.6 Multiple layers of governments, bureaucracies, statutory authorities and quasi government entities comprise the governance arrangements of Northern Australia. Responsibilities are split between these entities making communications slow and cumbersome. These various layers frequently duplicate actions of each other. An appropriately resourced and funded distinct northern Australia ministry, authority or commission with defined powers would bring conviction and reality to achieving the vision. The elongated processes in obtaining advice or outcomes diminish local community spirit and capacity building.

D.2 How effective are programmes and policies affecting northern Australia? How could they be approved?

D.2.1 Each jurisdiction has policies and programmes that generally apply and others that are specifically targeted to northern Australia.

D.2.1.1 The effectiveness of these policies and programmes is mixed ranging from success to mediocre to fail.

37 Department of Natural Resources and Mines, “Queensland Government response to the Inquiry into the Future and Continued Relevance of Government Land Tenure across Queensland,” http://www.parliament.qld.gov.au/documents/committees/SDIIC/2012/01-Government-land-tenure/gr-rpt25-23Aug2013.pdf

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D.2.1.2 Substantial success outcomes include policies and the programmes that underpinned the establishment of higher education, health and economic development projects such as the Queensland Burdekin Irrigation Area in 1980, the construction of the Burdekin Dam commencing in 1984 and completion in 1987 and the establishment of Western Australian Ord River Irrigation Area in 1959, the construction of the Ord River Diversion Dam commencing in 1960 and completion in 1963 and ongoing developments of each has enabled the growth and development of industry, services, city and towns. Equally, the policies and programmes that support the resource projects in northern Australia have enabled and contributed to the nation’s wealth. Similar long term policies and programmes are required to drive growth and development in the service, resource and industry sectors in the current era.

D.2.1.3 Service e.g. health, education, communications, and power/ energy to maintain and grow communities range from excellent in areas of high population to at best mediocre or poor as demonstrated by small regional towns losing services. The focus on the dollar value of the provision of the services rather than maintaining community strength and wellbeing is an impediment to growth. There must be an attitudinal shift in service delivery policies and programmes for northern Australia - to the future - maintaining families, populations, attracting new residents, businesses, industry and building capacity and capability in and across communities. Without the provision of services, there will not be a population shift.

D.2.1.4 Policies and programmes that have failed include those that refer to indigenous communities. The recent Andrew Forest Review of Indigenous Employment and Training (and which appears to address other life matters) has been embraced by several indigenous leaders and provides a pathway forward for indigenous policies and programmes, service delivery and economic development.

D.3 What should be the respective role of the Commonwealth, state, territory and local governments, the private sector, non-government organisations and communities in pursuing these policy directions?

D.3.1 The green / white paper purpose is to set the policy platform for promoting growth across northern Australia to realise its economic potential. In delivering the policy platform each level of government, the private sector, non-government organisations and communities will have specific roles. Government’s role is to create the policy frameworks, develop the policies and programmes and the regulatory and economic environment to initiate innovation, enable service delivery and to provide the private sector with the certainty and confidence to invest or participate infrastructure or projects in national, state and community interest.

D.3.1.1 The private sector’s role is to engender economic activity and innovation that delivers growth, employment and development that is in the national, state or community interest and generate wealth along the value chain within the confines of the government’s policies and programmes.

D.3.1.2 The role of non government organisations whilst varied, should ultimately to be the voice of its membership ensuring that policies and programmes are the best fit for the sector and deliver the outcomes anticipated. These organisations have the capacity to be powerful lobbies for their various sectors and be a sound source for draft policy/programme consultation and development.

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D.3.1.3 Communities are at the end of policy and programme chain. It is essential that communities are consulted about the meaning or impact of policies and programmes on their communities and regions over the near, medium and longer terms. Community engagement is essential for delivering social and economic change to alleviate shock or angst.

D.4 How should natural approaches be tailored to support development in northern Australia? What would this mean for other parts of Australia?

D.4.1 It is not clear to what “natural approaches” refers but it is inferred it relates to the natural environment and natural assets.

D.4.1.1 Northern Australia provides a rich and diverse biological and cultural heritage. The challenge is to protect it and foster sustainable economic development where it is appropriate. Governments must and should be responsible for protecting the unique beauty and biodiversity and for enhancing any sustainable management of natural resources.

D.4.1.2 An excellent example of natural asset protection and sustainable economic development is Skyrail in North Queensland, which provides and environmental tourism experience over 7.5 kilometres of World Heritage listed Tropical Rainforest canopy from Cairns to Kuranda and return.

D.4.1.3 The Environmental Protection and Biodiversity Act 1999 is the central piece of environmental legislation providing the legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places. This Act tailors the approach for any proposed project that comes within its sphere. Likewise State and Territory Governments have legislative and regulatory requirements that tailor the approaches to natural assets or any proposal for a sustainable development project. It is important that duplication and red-tape is minimised.

D.4.1.4 There must be legislative and regulatory consistency whether the natural asset is in northern or southern Australia.

D.5 In view of these policy directions what specific actions should be taken to develop northern Australia? By whom? Over what time period?

D.5.1 The Coalition Government has established the Northern Australia Strategic Partnership comprising the Prime Minister, the Deputy Prime Minister, the Premiers of Queensland and Western Australia and Chief Minister of the Northern Territory to provide a forum for coordinated national leadership on the development of northern Australia. As important as the Strategic Partnership is in terms of coordinated leadership it is another reporting and decision making layer.

D.5.1.1 As indicated in A.1.7 the view is that a specific action to develop northern Australia should be an appropriately resourced and funded distinct northern Australia ministry, authority or commission with defined powers to coordinate and bring conviction and reality to achieving the vision articulated in the Coalition’s 2030 Vision for Developing Northern Australia. The multiple layers of governance and reporting and decision-making are cumbersome, and steeped in duplicating red tape.

D.5.1.2 The Strategic Partnership at its first opportunity should establish such a ministry, authority or commission to assess the submissions from the Green Paper

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and prepare the white paper. It should be a “one-stop-shop” to achieve the vision. It is important that communities, residents, industry sectors in Northern Australia and private sector entities aspiring to invest in the region are able to identify with, have access to decision makers and able to communicate them on major decisions or policies without having to “bounce from one to another.”

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response to the green paper on developing northern web view... will provide economic tourism...

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