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Interim Report PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA Interim Report House of Representatives Select Committee on Regional Development and Decentralisation December 2017 CANBERRA © Commonwealth of Australia ISBN 978-1-74366-759-0 (Printed Version) ISBN 978-1-74366-760-6 (HTML Version) This work is licensed under the Creative Commons Attribution- NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/. Terms of Reference The inquiry’s Terms of Reference are included in the Committee's Resolution of Appointment. They are: 1 This House establish a select committee, to be known as the Select Committee on Regional Development and Decentralisation, to inquire and report on the following matters: a. best practice approaches to regional development, considering Australian and international examples, that support i. growing and sustaining the rural and regional population base; ii. the benefits of economic growth and opportunity being shared right across Australia; iii. developing the capabilities of regional Australians; iv. growing and diversifying of the regional economic and employment base; v. an improved quality of life for regional Australians; vi. vibrant, more cohesive and engaged regional communities; vii. leveraging long-term private investment; and viii.a place-based approach that considers local circumstances, competitive advantages and involves collective governance; b. decentralisation of Commonwealth entities or functions, as a mechanism to increase growth and prosperity in regional areas, considering Australian and international examples, including: i. examining the potential for decentralisation to improve governance and service delivery for all Australians, considering the administrative arrangements required for good government; iii iv ii. identifying the characteristics of entities that would be suited to decentralisation without impacting on the ability to perform their functions; iii. identifying the characteristics of locations suitable to support decentralised entities or functions, including consideration of infrastructure and communication connectivity requirements; iv. considering different models of decentralisation, including: relocation of all or part of a Commonwealth entity to a regional area; decentralisation of specific positions, with individual employees telecommuting, considering any limitations to this in current Australian Public Service employment conditions and rules; and co-location of decentralised Commonwealth entities or employees in existing regionally based Commonwealth or State Government offices; and examining the family, social and community impacts of decentralising; c. actions of the Commonwealth that would encourage greater corporate decentralisation and what can be learned from corporate decentralisation approaches, including: i. considering the role of the private sector in sustainably driving employment and growth opportunities in regional areas in both existing and new industries; ii. comparing the access to early stage equity and or debt finance of metropolitan and regional businesses for both start up and established businesses; iii. examining access to capital for regional business, including agribusiness, manufacturing and technology; iv. considering the adequacy of regional businesses access to early stage accelerators and incubators, including access to business mentors, business networks and capital (debt or equity); v. considering the adequacy to support the private sector to attract and retain skilled labour to regional areas; and vi. examining the extent to which employment and growth can be supported by growing existing and new industries in regional v areas, leveraging strong transport and communications connectivity; and d. any related matters. Members Chair Dr John McVeigh MP Deputy Chair Ms Meryl Swanson MP Members Ms Lisa Chesters MP Hon Damian Drum MP Mr Stephen Jones MP Mr David Littleproud MP Ms Cathy McGowan AO, MP Mr Tony Pasin MP Ms Melissa Price MP Mr Rowan Ramsey MP vii viii Secretariat Secretary Ms Julia Agostino Ms Lynley Ducker (8 August – 1 September 2017) Inquiry Secretary Ms Fran Denny Senior Research Officer Dr Andrew Gaczol Research Officer Mr Danton Leary Administration Officer Ms Kelly Burt Contents Terms of Reference ............................................................................................................................iii Members ............................................................................................................................................vii The Report 1 Introduction...............................................................................................................1 2 Progress of the inquiry............................................................................................3 Appendix A. Submissions Data .....................................................................................13 Appendix B. List of Australian Experts.........................................................................17 Appendix C. List of Witnesses........................................................................................19 ix 1. Introduction 1.1 On 1 June 2017, the House of Representatives passed a resolution to establish the Select Committee on Regional Development and Decentralisation. 1.2 The Committee is to inquire into and report on best practice approaches to regional development, the decentralisation of Commonwealth entities and supporting corporate decentralisation. The Terms of Reference for the Committee’s inquiry can be found on page iii of this report. 1.3 The purpose of this interim report is to provide an update on the work the Committee has undertaken to date, and the work it intends to complete in coming months. 1.4 As this is intended to provide a factual outline of the progress of the inquiry to date, the Committee is of the opinion that it would be premature to provide recommendations or views about any of the issues raised in submissions or in evidence given at hearings. 1.5 Rather, the Committee notes that there is still extensive work to be done and information to be analysed. This will include a number of public hearings that are yet to be scheduled for early 2018 and thorough analysis of all of the written submissions received by the Committee. 1.6 The Committee draws attention to the Issues Paper it tabled in August 2017 and its purpose to: . Provide more information on some of the matters set out in the Terms of Reference; and 1 2 INTERIM REPORT . Provide an overview of some recent research and inquiries undertaken on regional development and decentralisation, and highlight gaps or areas that may warrant closer examination by the Committee.1 1.7 The Committee will not revisit in this report, the issues raised and resources noted in the Issues Paper. Instead, the Committee will outline all new work undertaken, and notes that it will publish a final report in 2018 that contains detailed analysis of information received throughout the course of this inquiry. Acknowledgements 1.8 The Committee takes this opportunity to acknowledge the numerous individuals and organisations who have taken the time to make written submissions and to appear in person at its public hearings. 1 House of Representatives Select Committee on Regional Development and Decentralisation, Issues Paper, August 2017; Introduction, <https://www.aph.gov.au/Parliamentary_Business/Committees/House/Regional_Development_ and_Decentralisation/RDD/Issues_Paper> accessed 24 October 2017. 2. Progress of the inquiry Launch of inquiry 2.1 The House of Representatives passed a resolution on 1 June 2017 to establish the Select Committee on Regional Development and Decentralisation (the Committee). 2.2 Prior to calling for submissions, the Committee carefully considered the Terms of Reference and how to approach the inquiry to obtain the most meaningful and relevant information about best practice for regional development and decentralisation. 2.3 The Committee launched the inquiry on 27 July 2017 with a media release from the Chair of the Committee, Dr John McVeigh MP, who stated: The Select Committee on Regional Development and Decentralisation is calling for submissions to its inquiry. The Committee will examine best practice approaches to regional development, the decentralisation of Commonwealth entities and supporting corporate decentralisation. …the Committee’s inquiry is wide ranging and will explore ways to increase the growth and prosperity of regional and rural Australia. While decentralisation of Commonwealth entities has been identified as a potential means to achieve this, the Committee wants to examine, more broadly, how public and private investment can assist in building and sustaining our regional communities.1 1 Media Release: ‘Committee launches inquiry into regional development and decentralisation’, dated 27 July 2017, <https://www.aph.gov.au/Parliamentary_Business/Committees/House/Regional_Development_ and_Decentralisation/RDD/Media_Releases>, accessed 24 October 2017. 3 4 INTERIM REPORT 2.4 Dr McVeigh also flagged that the Committee planned to hold public hearings across regional Australia to learn more about best practice approaches to regional development, and decentralisation opportunities.2 2.5 The Committee has undertaken a range of work since the resolution was passed in June. It takes this opportunity to provide an interim report that outlines its progress
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