Welcome to the RDA Wheatbelt NSRF Information Session

Guest presenter - Colleen Yates, Executive Officer, RDA Perth

REGIONAL DEVELOPMENT AND THE NATIONAL STRONGER

REGIONS FUND

Colleen YatesExecutive Officer

RDA Perth

• Regional Development – what is it?

• National Stronger Regions Fund – essentials

• Preparing an application – some basics

TODAYS PRESENTATION

REGIONAL DEVELOPMENT IN AUSTRALIA

1993 – Regional Development Commission Act

Regional Development Australia uses the boundaries as defined by the 1993 Act

Alignment with Wheatbelt Development Commission boundaries

All regions utilise LGA boundaries

The Wheatbelt Region

• Comprises an area of 154,862 sq km. • Home to approximately 73,817 people.• Third most populous region in the State.

Central SouthBrooktonCorriginCuballingDumbleyungKondininKulinLake GraceNarrogin ShireNarrogin TownPingellyWaginWanderingWest ArthurWickepinWilliamsCentral MidlandsChitteringDalwallinuMooraVictoria PlainsWongan-BalliduCentral CoastDandaragan & Gingin

AvonBeverleyCunderdinDowerinGoomallingKoordaNorthamQuairadingTamminToodyayWyalkatchemYork

Central EastBruce RockKellerberrinMerredinMt MarshallMukinbudinNarembeenNungarinTrayningWestoniaYilgarn

Regional Development Australia (RDA) is a national network of committees fostering regional economic development.

RDA Committees work with all three tiers of government, regional business and the wider community to boost the

economic capability and performance of their region.

ALIGNMENTState:

1. Kimberley DC (4)2. Pilbara DC (4)3. Gascoyne DC (5)4. Mid West DC (17)5. Goldfields-Esperance DC

(9)6. Wheatbelt DC (43)7. Peel DC (5)8. South West DC (12)9. Great Southern DC (11)

Statutory Authorities

Department of Regional Development

Federal:

1. RDA Kimberley (4)2. RDA Pilbara (4)3. RDA Gascoyne/Mid

West (22)4. RDA Goldfields-

Esperance (9)5. RDA Wheatbelt (43)6. RDA Peel (5)7. RDA South West (12)8. RDA Great Southern

(11)9. RDA Perth (29)

Incorporated Bodies

Department of Infrastructure and Regional Development

2014-15 RDA Wheatbelt Priorities

Service Delivery Reform, with a specific focus on:Children’s Services - Aged Care - Workforce Development

Support the implementation of significant regional planning documents including the Wheatbelt Integrated Aged Support and Care Solutions and Wheatbelt Workforce Development PlanDevelop a Wheatbelt Children’s Services Plan

TelecommunicationsImplement priority actions identified in the Wheatbelt Digital Action Plan with a particular focus on digital learning, connectivity/access and leadership/advocacy

TransportProvide regional leadership and advocacy to guide investment decisions toward priority infrastructure required for the region to grow and prosper

Promote economic growth and development of the regionWork with the Wheatbelt Development Commission to produce and market sub-regional economic prospectuses

National Stronger Regions Fund

(NSRF) Overview

• $1 billion Commonwealth Government program

• Funding will be allocated over 5 years to fund priority infrastructure in local communities that promotes economic development in Australia’s regions and are sustainable into the future

• Assisting disadvantaged areas to achieve growth

• Encouraging strong partnerships with the private sector and local and state governments

Key Points

• Competitive grants programme

• Grants between $20,000 and $10 million are available

• Grant funding must be matched in cash on at least a dollar fordollar basis

• Funding will be provided for capital projects which involveconstruction of new infrastructure, or the upgrade, extension orenhancement of existing infrastructure

Key Points

• Projects selected for funding should deliver an economic benefit tothe region beyond the period of construction, and should supportdisadvantaged regions or areas of disadvantage within a region

• Round Two will open on 1 May 2015 and close 31 July 2015

• Applications to be appraised by the Department of Infrastructure andRegional Development who will make recommendations to aMinisterial Panel

• Decisions will be made in consultation with the NationalInfrastructure Committee of Cabinet

Eligibility – Who?

Eligible Organisations

Local councils

Not-for-profit organisations (not owned by a Local, State or Territory Govt)

Other organisations can participate where they are a member of a consortiumled by an eligible applicant

Ineligible Organisations

X State and Northern Territory governments

X State and Territory owned corporations and Not-for-profits

X Organisations primarily supported by other Commonwealth programmesand initiatives such as universities, technical colleges, schools, hospitals

X RDA Committees

X For profit organisations

Eligibility – What?

Eligible Projects must be:

Projects which involve the construction of new infrastructure, or the upgrade,extension or enhancement of existing infrastructure

Seek funding of at least $20,000 and up to $10MHave cash co-funding on at least $1 for $1Deliver an economic benefit to the region beyond the period of constructionComplete the NSRF funded component by 31 December 2019Provide all mandatory documents

Ineligible Projects are those that:

x Do not deliver sustainable economic benefitsx Are eligible for funding under the National Disaster Relief and Recovery

Arrangements (NDRRA)x Seek to shift costs from State or Local Govt to the Commonwealth; and/orx Are integral elements of hospitals (which are funded by other Govt initiatives)

Eligibility – What?

• In addition grant funding from the NSRF cannot be used for the following:

X expenditure incurred prior to the announcement that the project hasbeen successful in its application for NSRF funding

X provision of services and support activities

X soft infrastructure, including computer software or hardware that is notan integral part of the funded capital project

X payment of salaries for new or existing staff or contractors, or

X administrative overhead items, including office equipment, vehicles ormobile capital equipment, for example trucks and earthmovingequipment

Assessment Criteria – Economic Growth

• Criterion 1: the extent to which the Project contributes to economic growth in the region

Most important criterion as it has been given a 50% weighting

Guidelines contain examples of what might constitute economic growth

Demonstrate link between project and economic growth

Provide evidence to support claims

Identify any social and community benefits

What is Economic Growth?

Economic growth relates to those benefits

generated by new or improved infrastructure, and

can be described in terms of the ability to generate

additional income through more efficient use of

resources and improved trade opportunities.

What is Economic Growth?

You have two cows….

JAPANESE: You redesign them so they are 1/10 the size of an ordinary cow, and produce the milk of 20 cows. You then create a clever cow cartoon image called cowkimon and market them worldwide.

ITALIAN: You don’t know where they are. You decide to have lunch.

BRITISH: Both are mad.

AUSTRALIAN: Business seems pretty good. You close the office and go for a few beers to celebrate.

AMERICAN: You sell one, and force the other to produce the milk of four cows. Later, you hire a consultant to analyse why the cow has dropped dead.

What is Economic Growth?

Does the project support and encourage:

• Job creation and economic participation • Opportunities for participation of local and

regional businesses• Opportunities for new business investment• Jobs and pathways to employment for

disadvantaged communities

What is Economic Growth?

ECONOMIC IMPACT (Multipliers! Multipliers! Multipliers!)

Demonstrate the return on public investment: that every dollar invested creates more than a dollar’s worth of value in the community, such as:

Direct impacts. Measured by new health and community services, and number of jobs generated by grantee activities (e.g., wages, salaries and benefits paid directly to grant-supported employees/contractors)

Indirect impacts. Result of “second round” of spending that occurs when grantees purchase goods and services from local businesses

Induced impacts. Occur when employees of the grantees and of firms that sell goods and services to the grantees in turn spend their earnings on local goods and services

Assessment Criteria – Addresses disadvantage

Criterion 2: Demonstrate the extent to which the Project supportsor addresses disadvantage in a region

Project should support disadvantaged regions or areas ofdisadvantage

Demonstrate link between project and disadvantage

Provide evidence to demonstrate link and benefits

Guidelines give examples of indicators that could be used todemonstrate disadvantage

What is disadvantage?

Does the project address relative lack of opportunity and community disadvantage

• Transport issues

• Areas of high unemployment

• Youth issues

• Indigenous disadvantage

• Weak social networks

• Aging demographics

• Health and wellbeing

What is disadvantage?

Paper on community disadvantage

https://www3.aifs.gov.au/cfca/publications/what-community-disadvantage-understanding-issues-ov

Socio-economic Indexes for Areas

http://www.abs.gov.au/ausstats/abs@.nsf/mf/2033.0.55.001/

Assessment Criteria – Partnerships

• Criterion 3: the extent to which the Project increases investment and builds partnerships in the region:

• Consideration should be given to:

• Partner cash contributions in addition to the mandatory 50%

• Number of significant partners (do not have to be eligible organisations)

• In-kind support for the project

• Extent and nature of partnerships

Partnerships

$50,000PROJECT

CONSORDIUMPARTNER 1: $2,000

PARTNER 2: $10,000PARTNER 3: 12,000PARTNER 4: $1,000

50% $ 1.00

GOVERNMENT$25,000

Assessment Criteria – Viability and sustainability

Criterion 4: the extent to which the Project and Applicant are viable and sustainable -should consider:

The project has been scoped, costed and planned sufficiently that the Commonwealth is confident the supplier market can be formally approached and the project will not be unnecessarily delayed by known or expected factors

Is the project ‘Investment Ready’ – i.e. will it be ready to start construction within 12 months of signing the funding agreement?

Risks associated with project delivery & mitigation of these

The applicant’s capacity to deliver the project (financial/experience)

Project is sustainable beyond project completion

Risk Management

• Do you own the site or asset? If not, what arrangements are in place?

• Have you spoken to your LGA/other approving authority?

• Have you aligned your project with a relevant strategic plan?

• What approvals are required to get the project development application ready?

• Are there any of the following issues?– Environmental

– Heritage

– Utility

Risk Management

• Has your organisation managed a project before?

• Will you need to hire a project manager?

• How will the built asset upon completion be maintained?

Basic Application Guides

Take time to prepare and plan

Undertake cost benefit analysis through out the project

Let the project be outcome based

Address criteria with evidence – statistics and analysis, surveys

DO NOT spend all your time talking about your organisation and its objectives

Refer to accomplishments as part of your organisational capacity statement not as the reason to fund your project

Identify the need and what your project will do to address it

Basic Application Guides

NO ORGANISATION IS AN ISLAND

Communicate with your community and other relevant organisations

Speak to your local members

Ask for letters of support

Be open and transparent

Role of Regional Development Australia

Promoting the NSRF and helping to identify potential infrastructure projects that contribute to long term economic growth

Identification of regional priorities

Bring parties together with respect to projects

Assisting proponents with applications

How to apply

• Via the online application form at http://gms.infrastructure.gov.au/UI along with supporting documents (up to 20) to be uploaded (page 9 of the guidelines)

• Guidelines, Frequently Asked Questions, Sample Application Form on the Department of Infrastructure and Regional Development’s website –www.infrastructure.gov.au/nsrf

• Questions can be emailed to nsrf@infrastructure.gov.au