Regional Development Australia TROPICAL NORTH INC.

RDATN Economic Recovery and Reconstruction Strategy

Anne Stünzner, Senior Economic Strategist July 1st 2020

Regional Development Australia Tropical North Suite 12A, Ground Floor, The Conservatory 12‐14 Lake St PO Box 2738 CAIRNS QLD 4870

Phone: (07) 4041 1729 [email protected] | www.rdatropicalnorth.org.au

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Executive Summary

Regional Development Australia Tropical North (RDATN) has developed a far‐reaching regional recovery strategy for the post pandemic period. Priority projects across water, ports and roads have been identified as having the greatest influence on the economic sectors of tourism, agriculture, education and small business. Whilst each component of infrastructure development is integrated to provide direct or secondary benefits to each of the four sectors, investment in water and agriculture will consolidate the existing economic base providing necessary diversification in a largely tourism dependent economy.

The success of the strategy will depend upon adequate resourcing and acceptance at the three levels of government and collaboration across the wider region. The strategy will promote projects and initiatives that support regional growth through both the traditional economic base of the region, as well as identifying new innovative projects and financing for infrastructure opportunities in the short, medium and long term; that diversify and strengthen the regional economy against future shock.

All business and industry are underpinned by a strong regional economy and enabling infrastructure.

Water infrastructure is fundamentally the leading force behind building the regional economy in supporting existing core industries like tourism and agriculture. The Lakeland Irrigation Area Scheme (LIAS) will drive economic recovery in the short term and provide regional economic stability in the longer term.

To enable projects like the LIAS, there is an opportunity, and in fact an imperative, to cut through much of the red and green tape that is not relevant to regional projects or, in the circumstances, is not reasonable.

Increased high value agricultural product to domestic and international markets will be a catalyst for improved roads, airports, and ports; and underwrite the business case for investment into allied small business which make up 94.5% of the economy.

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Table of Contents

Executive Summary ...... 2

Background ...... 6

Current Position ...... 6

Building a Recovery Pathway ...... 7

Building on Current Foundations ...... 7 Cairns Convention Centre ...... 7 Peninsula Development Road ...... 8 Plastics Project ...... 8 The 10M Pre‐feasibility Study for the Lakeland Irrigation Area Scheme ...... 9 The Wangetti Walking Trail ...... 10

New Infrastructure Investment Pathways ...... 10 Water ...... 10 Gilbert River Irrigation Project ...... 11 Johnstone River Diversion ...... 12 Nullinga Dam ...... 13 Ports ...... 13 Cairns Marine Precinct ...... 13 Existing Port Facilities ...... 14 Airport ...... 15 Cairns Airport Commercial Aviation Precinct ...... 15 Road Infrastructure ...... 15 Lakeland to Weipa Link Road ...... 15 Cairns to Mareeba Link Road Upgrades ...... 15 Mareeba to Georgetown Link Road ...... 15 Ootann Road ...... 16

Industry Sectors ...... 16 Tourism ...... 16 Natural Assets ...... 16 Cairns Gallery Precinct ...... 16 Agriculture ...... 17

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Education ...... 17 Small Business ...... 18 Waste ...... 18 Incentive ...... 18 Sustainability ...... 18

Recommendations ...... 19 Water ...... 20 Lakeland Irrigation Area Scheme ...... 20 Road Upgrade Fund $200M ...... 20 Cairns to Mareeba Link Road Upgrades ...... 20 Peninsula Development Road ...... 21 Mareeba to Georgetown Link Road (ROSI + $35M) ...... 21 Ootann Road ...... 21 Education ...... 22 CQUniversity Cairns CBD Campus ...... 22 Art and Culture ...... 22 Cairns Gallery Precinct ...... 22

Projects – Further Assessment $3.5M ...... 22 Gilbert River Irrigation Precinct $500K ...... 22 Freight Study for The Cairns Region, Supply Chain Inefficiencies $500K ...... 22 Pre‐feasibility Green Hydrogen Economy Hub $2M ...... 23 Pre‐feasibility Biosecurity (Irradiation) Treatment Facility $500K ...... 24

Facilitate New Projects $2M ...... 24 Fast Track Approvals ...... 24 Deliver Projects ...... 24

Appendix A...... 25 Stakeholder Engagement ...... 25 Major Industry and Representatives ...... 25 Industry Bodies ...... 25 Economic Development Bodies ...... 25 Indigenous Representatives ...... 25 Local Government ...... 25 Queensland State Government ...... 26 Federal Government ...... 26

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Key Statutory Authorities ...... 26 Private Sector: ...... 26 Research Institutions ...... 27 General Public & Media ...... 27 Natural Resource Management ...... 27 Skills/Workforce Development ...... 27 Social Sector ...... 27

Appendix B ...... 28 Funding Pathways ...... 28

Appendix C ...... 29 Stimulus Initiatives Policy ...... 29 Policy Recommendations to be Developed ...... 29 Business Incentive Policy ...... 29 Marine Policy ...... 30 Northern Insurance ...... 30

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Background

The RDATN region is 273,157.4 square kilometres or 15.8% of Queensland’s land mass and 21 Local Government Areas. The region’s population of 286,799 comprises Cairns urban area (54%), Douglas/Cassowary Coast and Tablelands area (35%) and the Gulf, Cape and Torres area (11%). The population is expected to grow to over 328,000 by the year 2031.

The region is rich in cultural heritage with more than 60 Traditional Owner groups who make up 14% of the total population. Pre COVID‐19 the unemployment rate across the region was 8.5% compared to the Cairns city region at 5.8%.

Key industries in the region are grazing, tourism, agriculture, mining, health, education, marine, aviation and construction. Current Gross Regional Product (GRP) is estimated at $15.4 billion1 comprised of 23,900 businesses, 1,138 medium size companies and 165 large size companies with the bulk being small business at 94.5%.

Current Position

It is an unknown when the region will be fully released from current restrictions and when the economy will begin to recover.

Researchers from the University of South Australia Business School, Newcastle University’s Hunter Foundation Research Centre, and George Mason University in Washington DC have revealed an Economic Vulnerability Index (EVI) of 20 communities22, based on the resilience of their local economies. The study considered the economic impact of COVID‐19 on regions "likely to see the largest and most immediate negative effects on local economic activity and labour markets".

Tourism towns were prevalent on the index with Queensland accounting for six cities and towns on the most‐vulnerable list, including Cairns as most vulnerable. Unsurprisingly, The EVI research found centres relying on narrow economic bases were most at risk from lasting Coronavirus disruption, while towns and cities with broader economic foundations, including mining and agriculture, were more likely to recover faster.

The RDATN region (as shown in ABS website), has the lowest socio‐economic communities as well as identified vulnerable populations in Australia. It is therefore an absolute imperative that the Tropical North, with Cairns as its administrative, commercial and logistics centre, builds economic and social resilience through a diversified economic base.

“Survivor” funding is by nature reactive as the situation changes rapidly and exponentially and requires planning, oversight, and flexibility to ensure the best economic and community outcome in the short term, i.e. keep businesses afloat and people employed.

It is vital to the success of any recovery strategy that projects, and initiatives are catalytic, fit for purpose and interconnected to guarantee the timely recovery of our region. RDATN has identified projects that will drive regional economic recovery and job creation in the short, medium, and longer term.

1 Source: National Institute of Economic and Industry Research 2016

2 https://www.abc.net.au/news/2020‐04‐14/coronavirus‐australias‐most‐vulnerable‐cities/12136670 RDA Tropical North Inc. Page | 6

Building a Recovery Pathway

Supporting the priority sectors of tourism, agriculture, education and small business through enabling infrastructure sits naturally and builds on the Northern Australia agenda and existing Government policy on water infrastructure, roads, resources, and education. Identified projects are evidence based and quantify the real benefit generated in extensive economic, environmental, and social advancements.

Indirect quantifiable benefits also exist and are not limited to:  Risk mitigation of narrow economic base  Closing the Gap with Indigenous Australians  Increased workplace participation rates in remote communities  Increased private sector investment and PPP  Upskilling and capacity building to growing a sustainable workforce  Community resilience and reduction of learned helplessness  Drought mitigation  Development of diverse allied industries through infrastructure provision

Water Infrastructure is the leading force behind diversifying the region’s economic base while supporting existing core industries like tourism and agriculture. The construction of the LIAS will drive economic recovery in the short term and provide regional economic stability in the longer term.

Increased high value agricultural product to domestic and international markets will force the imperative for improved roads, airports, and ports; and underwrite the business case for investment into allied small business.

Building on Current Foundations

There are several projects in the region either funded by the State and/or Federal Government or have a public funding commitment. RDATN recognises these existing opportunities and the proposed additional projects aim to build on these through physical and economic connectivity.

Cairns Convention Centre

Funded existing projects include the Cairns Convention Centre at $176M. The Cairns Convention Centre is currently at capacity, due to a combination of population growth, increased tourism and demand for the number and increasing size of trade shows. The Cairns Convention Centre Expansion Project (CCCE) has been proposed to meet the need of the growing venue demand in Cairns to host multiple trade shows and conventions.

The Department of Housing and Public Works (DHPW) is the project principal/client and Lendlease Building has been appointed as the Managing Contractor of the CCCE project which includes detailed design and construction responsibility.

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Peninsula Development Road

Bringing forward the funding from forward estimates for the $190M Peninsula Development Road PDR). The Federal Government is investing $190 million towards the Peninsula Development Road – Stage Two Project – to ensure sealing works along the road continue. The Queensland Government has also committed $47.5 million toward this important corridor. A total funding commitment of $237.5 million is committed under the ROSI program for the CYRP Stage 2.

The PDR has been listed as part of the Federal Government’s $3.5 billion Roads of Strategic Importance initiative. It will provide widespread employment and training opportunities for many Indigenous people and businesses throughout Cape York. It will also significantly improve access to Cape York for freight, tourists and other road users and better access to affordable fresh fruit, vegetables, and household goods.

Plastics Project

RDATN is investigating the potential for the development of a plastic production industry (including recycling) in Far North Queensland as a pilot for future regional centres across Australia. The project incorporates the full circle of resource recovery from education, collection and processing, through to remanufacturing.

This project will facilitate innovation in waste management and recycling, create local employment opportunities, reduce unnecessary freight costs, produce product for export or sale and facilitate the development of environmentally friendly products to be sold domestically. It will also help regional areas collect and manage their plastic waste, preventing leakages into the ocean and the pollution of our coastlines and waterways.

Through the development of a model that can be replicated across multiple regional centres, all levels of government can contribute to a coordinated approach in the management of waste and resource recovery, from education, collection, processing through to manufacturing.

Opportunities exist in the region for circular economy partnerships that not only demonstrate a viable end of life option for plastic resource, but also create a direct purchase from the same industry that generated the waste. These partnerships can assist in the redesign of industry and the future of combined plastic, resource recovery and waste through collaborative efforts, increased transparency, and a localised approach.

RDATN is partnering with key stakeholders and industry groups to analyse existing plastic recycling practices, investigate the viability of a facility in the region and develop a project model that can be replicated in other regional centres across Australia. The engagement of industry groups and local government will ensure a sound understanding of their roles in the provision of education programs, collections services and as members of regional bodies and groups. These partnerships will assist in the analysis of current practices and trends and will result in a rigorous assessment to demonstrate feasibility for the establishment of a comprehensive operation in FNQ as a model for future regional recycling and manufacturing hubs across Australia.

Plastic waste within Far North Queensland is currently sorted and freighted down to Brisbane for processing at excessive freight costs per year. Recycled products are then bought back from southern businesses generating further freight costs and emissions from transport.

A new study by Grand View Research Inc. states that the Global Plastics Market is expected to reach USD 654.38 billion by 2020, with Asia Pacific (excluding China) being listed as the fastest growing regional market with plastic valued at USD 105.39 billion in 2017. RDA Tropical North Inc. Page | 8

Key findings from the 2016‐17 Australian plastics recycling survey – national report:  A total of 3,513,100 tonnes of plastics were consumed in Australia in 2016–17.  A total of 293,900 tonnes of plastics were recycled in 2016–17, which is a fall of 10% from 2015–16 recovery. Including tyres, total plastics recovery was 415,200 tonnes.  In 2016–17, the national plastics recycling rate was 11.8%.  Of the 415,200 tonnes of plastics collected for recycling, 180,100 tonnes (43.4%) was reprocessed in Australia and 235,100 tonnes (56.6 per cent) was exported for reprocessing.  Local reprocessing was flat from 2015–16, with export for reprocessing falling by 20%.  In 2016‐2017, Australians used 5.66 billion single‐use plastic bags. The 10M Pre‐feasibility Study for the Lakeland Irrigation Area Scheme

The Lakeland Irrigation Area (LIA) was established over 70 years ago and boasts deep basalt soils growing a variety of crops. Water availability and security is the major inhibitor to the success and expansion of agriculture in the region.

The Department of Natural Resources, Mines and Energy has completed a comprehensive soil and crop analysis of the Lakeland basin as part of the strategic business case. This report identifies numerous opportunities for diversity.

In 2017, Cape York Sustainable Futures (CYSF) received $825,000 (ex GST) to undertake the LIA feasibility study to explore, identify and assess all aspects of expanding and improving agriculture in the LIA. The LIA feasibility study was part of the National Water Infrastructure Development Fund (NWIDF), an initiative of the Australian Government. CYSF engaged SMEC and the Department of Natural Resources, Mines and Energy (DNRME) to undertake a Water Feasibility Assessment.

Following the closure of CYSF in 2018, RDATN entered into an agreement to deliver the draft and final Strategic Business Case.

The report assessed four options and identified the Palmer River as the most favourable site. The Palmer River flows west to the Mitchell catchment and into the Gulf of Carpentaria. It has been highly degraded by mining over the past century and will leave no impact on the Great Barrier Reef.

The water will be pumped from the dam to the top of the Byerstown Range to a holding dam where it will be gravity fed through a hydro plant and distributed to growers by a pipe system. The hydro plant will power the pumps with some potential to return excess to the main grid.

There are presently over 6,000ha under cropping with 1550ha of irrigation on freehold land in the Lakeland basin and no further tree clearing is required to achieve maximum utilisation of identified arable land. There is potential for a further 10,000 ha of downstream grazing land to benefit from fodder production. Benefits include:

 Access to a reliable and affordable water supply capable of supporting a majority of soils suitable to horticulture and broadacre cropping in the Lakeland Irrigation Area region.  Increased volume of water available for agriculture  Ability to grow higher value and more diverse range crops in suitable areas  Improved confidence of irrigators to invest in long term business operations  Benefits to regional business activity and prosperity through increased agricultural activity and the creation of 1000 construction jobs followed by 1200 FTE positions on completion.

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 RDATN has worked with Federal and State Governments to progress the project further, receiving $10m in funding to undertake the detailed business case (DBC) in May 2020. SMEC has been appointed as the principle project manager. The DBC is due for completion September 2022.

The Wangetti Walking Trail

The $41.4M Wangetti Trail is Queensland’s first purpose built dual walking and mountain biking track in a national park. The 94km trail will stretch from Palm Cove to Port Douglas and will showcase the stunning coastal and hinterland scenery of the World Heritage‐listed Wet Tropics and the Great Barrier Reef. The Trail is a priority for Tropical North Queensland and is also a National Tourism Icon project with $41.4 million allocated to fully construct the Trail which is expected to create 75 jobs during construction, over 150 jobs once operational.

Construction is currently underway on the first stage of the Wangetti Trail at the new Mowbray River Pedestrian Bridge, due for completion by mid‐2020. It is expected the Queensland Government will soon release a tender for the first stage of construction works for the main Trail.

The Project Team has lodged a permit application with the Wet Tropics Management Authority and is finalising a suite of environmental assessment applications for referring to the Commonwealth Government under the Environmental Protection and Biodiversity Conservation Act 1999.

The Project Team is also working with local Traditional Owners to increase their capabilities to become job and business ready for opportunities that will result from the Trail.

It is anticipated the Wangetti Trail will be completed and open to the public by 2022, attracting thousands of new tourists and injecting up to $300 million into the local economy.

New Infrastructure Investment Pathways

Water

Ensuring the long‐term water security needs for our region is critical to the economic growth and development of Far North Queensland. The opportunity of water infrastructure development includes the Lakeland Irrigation Area Scheme, Gilbert River Irrigation Project and Nullinga Dam. Lakeland Irrigation Area Scheme.

The LIAS is a $556 million dam, irrigation and hydro scheme to deliver 70,000Ml of medium priority water to over 8000ha of high value horticultural produce. Projected jobs during construction 1210 with 1144 on‐going full‐time positions in full operation. Conservative economic multipliers estimate the downstream per annum flow through effect to be in excess of $1.5billion with over 3400 full time positions3.

Early studies by SMEC and AEC indicate the potential value of produce from the additional water is in excess of $559m per annum with an internal rate of return at 11.3%. This is a 50% increase per annum of the value of current agricultural produce from Far North Queensland. At today’s rate, this is

3 https://www.wallstreetmojo.com/multiplier‐formula/ RDA Tropical North Inc. Page | 10

$18,447,000,000 over the lifetime of the project. Currently the Federal Government has funded a $10m Environmental Impact Assessment (EIA) and pre‐feasibility study into the project. https://www.rdafnqts.org.au/about/initiatives/lakeland‐irrigation‐scheme/

The proposed funding model for the LIAS is a government grant for the $150,000,000 for the dam wall and buffer and a combination of equity and loan through private investors and NAIF for the water delivery infrastructure. Nominally, if the Federal Government provides a grant, then the cost to growers is the delivery mechanism – powered by pumped hydro under piped pressure to the farm gate ‐ along with the annual maintenance.

The figures on the LIAS are good, however the $10M pre‐feasibility study is not due until 2022. To make this project appealing for investors, actively sourcing in principal water offtake agreements from growers and a bringing forward of any moveable aspects of the process is vital. These actions would go a long way to underwrite a letter of support from NAIF and provide a measure of confidence for Government. Any “bring forwards” in the work should be actively pursued.

Private investment companies have indicated that at 8% on a brownfields site the project is appealing – a suggested determining factor is that the water be administered through a special purpose vehicle like the existing North Queensland Water Infrastructure Authority under direction from the National Water Grid.

Produce transported from Lakeland will support the business case for roads, ports and airports upgrade. Lakeland will also be the catalyst for biosecurity treatment facilities and extensive food trail tourism from Atherton north. With 94.5% of the region’s economy comprising small business – this is a game changer for the Tropical North.

Gilbert River Irrigation Project The project proposes to construct a major water storage, and delivery mechanism with an annual nominal allocation of 130,000 ML. It is proposed that the scale of the development might sustain the development of local processing facilities, such as fruit and/or nut packing sheds and a cotton gin.4

Current position: Etheridge Shire Council is currently formulating a Detailed Business Case (DBC) funded under the Queensland State Government Maturing the Infrastructure Pipeline Program Stage 2 (MIPP2). Timeframe: Draft Business Case to be delivered by Jacobs March 2020 Cost: A risk adjusted (P90) estimate has been calculated to be $887.2 million Funding model: 50% Federal Grant, 35% grower contributions (water allocation) and 15% private equity. Jobs: 370 Jobs in construction, 5,468 ongoing jobs related to the Etheridge Shire agricultural area. Of this, 2,200 jobs will be directly in agriculture and 3,268 jobs will be indirectly related to agriculture3. Benefit: Preliminary economic and financial modelling estimates gross benefits from agricultural production in the region of $536 million per annum.

4 Jacobs Gilbert River Irrigation Project Etheridge Shire Council Chapter 1 ‐ Executive Summary RDA Tropical North Inc. Page | 11

Local rainfall and temperatures will suit a range of irrigated crops such as high‐value annual crops (e.g. cotton, peanuts and fodder crops including sorghum), lower value rotation grain crops (e.g. pulses), and high‐value horticultural crops (e.g. avocados, bananas, citrus and mangos).

There are high water flows during the summer wet season in the Gilbert River and the potential for up to 200,000 ML of water entitlements to be issued under the Gulf Water Plan to support water infrastructure.

The sealing of the Gulf Development Road, construction of the high‐level bridge over the Einasleigh River and the construction of a 132 kV transmission line have opened the area to development not previously viable due to lack of infrastructure.

Delivery of water to irrigators will be through an 81.6 km network of pipelines and plastic lined open channels, requiring a pump station and balancing storage. The network extends to customers up to 60 km downstream (north west) of the dam and up to 70 km west of Georgetown.

Strong demand for the water delivered by the project has been demonstrated from existing landholders and non‐landholders through a non‐binding demand assessment. The demand assessment process considered an up‐front customer capital contribution of $3,000 per ML for high priority (agriculture) and $1,000 per ML for a medium priority allocation.

Market sounding has identified strong demand with a combination of existing and potential landholders responding with a written expression of interest for at least 85% of the available water. This demand would need to be contractually locked in after the detailed business case, but prior to construction.

Government funding will be required for the project to be successful and deliver the predicted level of benefits for regional development, community employment and food security. The most financially viable model assumes that the project receives a 50% Federal Government grant ($496.9 million) for example, from the National Water Infrastructure Development Fund (NWIDF) – and receives $186.9 million funding from another source, with the amount of grant funding necessary to make the project financially viable. The remainder of funding ($310 million) is provided through the sale of water allocations to irrigators.

Johnstone River Diversion A proposal to construct a pipe to tunnel water from the North Johnstone River near Malanda to Kenny Creek, a tributary of the Barron River, to supplement the level of Tinaroo Dam and improve reliability for all downstream users, has been discussed for several years.

The proposed diversion of water from the river into the dam forms part of a three‐point plan put forward by the Mareeba Dimbulah Irrigation Council, comprising FNQ Growers and Tablelands Canegrowers, to guarantee future growth and sustainability. Modernisation of the Mareeba Dimbulah Water Supply Scheme, currently underway, and the proposed Nullinga Dam, for which a detailed business case is being developed, also form part of the plan.

The irrigation council firmly believes that the implementation of all three elements would deliver tangible results by way of an additional 50,000 to 60,000 megalitres of water for irrigated cropping on the northern Tablelands.

Various hydrological, engineering and environmental desktop studies have been carried out, however, given there has been some time since the reports were released (mid 1996), it would be imperative that the studies are updated to reflect current hydrological, environmental and economic feasibilities.

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Nullinga Dam Nullinga Dam proposes to dam the Walsh River in Far North Queensland, about 55 km south‐west of Cairns and 24 km south‐west of Mareeba. Costed at up to $975 million, Nullinga Dam was first proposed in the 1950s, but Tinaroo Falls Dam was built as the more favourable option.

Building Queensland completed a preliminary business case in 2018 with a secondary business case released in 2019. The business case identifies that:

 Cairns Regional Council has plans in place to cover water supply for at least the next 40 years.  Water would cost upward from $15,900 per megalitre but customers only wanted to, and could, pay around $2000‐$3000 per megalitre.  Both the smaller and larger dam options considered would result in poor economic returns and poor financial outcomes.

The Queensland Palaszczuk Government will protect the proposed Nullinga Dam site and pursue alternative water supply options for the Far North. Ports Cairns Marine Precinct Cairns is strategically located 1,600kms North of Brisbane, yet still 1,000km from the tip of Cape York. At the northern end of the Bruce Highway and north/south rail link. Between two world heritage areas (the Great Barrier Reef and Rainforest), with a domestic and international airport, two universities, a Naval Base, and an extensive maritime services sector. Sitting on the western edge of the Pacific Ocean and relatively close to emerging Pacific Nations such as Papua New Guinea and the Solomon Islands.

Cairns has Queensland’s largest locally based marine fleet. This includes Australia’s largest tourism fleet, comprising 187 registered passenger vessels carrying over one million visitors to the reef each year, Australia’s largest fishing industry port with 700 registered vessels, the largest fleet of cargo and work vessels home ported in Northern Australia. It is also is home to Australia’s north eastern naval base and other government vessels e.g. Border Force. In addition, Cairns is the home port to the largest number of commercial vessels registered in Queensland at 1,603. The next closest is Brisbane at 1,188 vessels.

The majority of containerised international freight is delivered by vessel through the Great Barrier Reef bypassing Cairns for the Port of Brisbane, before being either trucked or railed back into Cairns. The financial and carbon cost is significant as is the cost to National highway maintenance.

A similar problem has been identified in the Pilbara, but for different reasons. There, the key driver of the freight task is the massive mining and oil & gas output. In this case the freight from Singapore bypasses the target market of the Pilbara, is shipped south to Fremantle, then being placed on truck to be delivered back into the Pilbara. In November 2018, the City of Karratha identified this situation and commissioned a study to identify the issues, and importantly the solutions required. Found here at: https://karratha.wa.gov.au/sites/default/files/uploads/OCR171902%20Pilbara%20Freight%20Study %20‐%20FINAL.pdf

This study is a model for how freight flow analysis highlights the inefficiencies that have been embedded over time, particularly in the Northern Australian context. A report of this nature for the Cairns Port would provide an overarching business case for the positioning of the Port of Cairns for both inbound and outbound freight.

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Leveraging off the work Cairns Port Authority is doing with the recently commissioned GH&D strategic review will support greater investment in Cairns Port infrastructure to provide greater diversity away from majority reliance on leasehold and tourism revenue streams.

Identified components of the Cairns Marine Precinct include the deepening of the Trinity Inlet shipping channel, defence capacity (HMAS Cairns), the super yacht sector, and international freight delivery.

Existing Port Facilities Part of the Cairns Marine Precinct development is the $127 million widening and deepening of the existing Trinity Inlet shipping channel. This will facilitate cruise ship growth for vessels up to 300m, with a forecast demand of up to 150 cruise ships through the Port of Cairns by 2031. With the increased capacity for visiting vessels, there are opportunities across the tourism and marine sectors to capitalise on this regionally significant investment with property and leasing opportunities available in areas adjacent to the Cairns CBD, as well as port‐related development at industrial locations. Defence (HMAS Cairns): The presence of HMAS Cairns provides the opportunity for businesses of all sizes to sell and contract to the Australian Department of Defence. There is also further opportunity to recruit skilled personnel on their departure from the service.

The superyacht sector is a high growth and high yielding segment of the regional economy. In December 2019, the Federal Government passed the Special Recreational Vessels Bill 2019 allowing superyachts to charter in Australia. “Prior to this bill, foreign‐owned superyachts were not able to operate commercially within Australia without fully importing the vessel. Australia would commonly lose market share to our geographical neighbours, such as New Zealand, Fiji and Tahiti, who had fewer restrictions. Now, foreign‐ owned superyachts may enter Australian waters under a temporary Coastal Trading Licence, allowing Australia to compete with neighbouring economies”.

The Super Yacht Group Great Barrier Reef Inc (SYGGBR) is a not‐for‐profit organisation focused on continuing to develop the region’s super yacht sector by undertaking marketing, business development and advocacy activities that encourage additional super yacht visitation and increased length of stay. A tripartite (Federal, State and Local Government) funding arrangement for SYGGBR is required to continue to expand the organisation’s operations, which will contribute to the continued development of this strategic industry sector.

A study of the Cairns Port and supply chain opportunities will help understand the agricultural development and produce flow for export that is linked to further growing the agricultural sector in the region through the Lakeland agricultural precinct.

The overarching connectivity in the ports space is understanding the relationship Cairns Port plays in the greater regional supply chain structure. The study should also identify the relationship and opportunity with Weipa Port and the Torres Strait Landing Facilities. There is no point in providing the same services as say Townsville Port – rather what is the integration of “Port of Difference” with Cairns Port.

Far North Queensland (Cairns to Cape and Kurumba) contains numerous Aboriginal and Islander communities, all of which require barge servicing during the monsoon season, and more than half all year round. This infrastructure is in aging and varying condition and was built originally for smaller barges and vessels. Upgrading this infrastructure as part of a regional stimulus package will provide better access for communities and importantly lay the foundations for microeconomic activities for these communities such as fishing and transport/ferry linkages.

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Airport Cairns Airport Commercial Aviation Precinct Cairns Airport Precinct of Aviation Excellence has 105 acres of land available for development, with excellent access to Australia and the Asia Pacific region providing an opportunity to establish a presence within an emerging global Aviation, Aerospace, and Advanced Manufacturing cluster,.

There are linkage opportunities between high value agricultural product and irradiation treatments for exports. The 105 acres site would be well positioned on the north of town between the Kuranda Range Road and the Port of Cairns – as well as airport access.

Road Infrastructure

Improving and investing in the region’s road network to ensure the efficient transport of people and goods and connecting the region to seaports, airports and southern markets is integral to regional growth (and the growth of Northern Australia). Road transport infrastructure networks need to enable supply chain connectivity and link with agricultural precincts, ports, and airport into our markets. Pre‐planning road infrastructure development can be a significant cost and prioritised roads need to secure allocated funding to this end as soon as possible. Lakeland to Weipa Link Road Complete sealing and bridge upgrades of the remaining sections of the Peninsula Development Road (PDR) through to Weipa (not undertaken by the Cape York Regional Package) to improve access across Cape York and to improve the transportation of export produce from FNQ’s agricultural areas to the Port of Weipa. A little under 200 km of unsealed road remains between Lakeland and the Rio Tinto boundary outside of Weipa.

Cairns to Mareeba Link Road Upgrades Commencement of urgent upgrades to the Kennedy Highway linking Cairns to Mareeba are needed to prevent it from becoming increasingly uncompetitive as a freight route and negatively impacting the economic performance of the Cairns seaport and airport and demonstrably stifling economic development and urban growth in the Cairns, Mareeba, Cape York Peninsula, Atherton Tablelands and Gulf Savannah regions.

The development of Lakeland and the expansion of agricultural produce from the Tablelands will see increasing pressure on the road. The opportunity for expanded tourism is also impacted by road congestion. Three bridges on the Mulligan Highway section of the road also need upgrading to ensure all year‐round access in the short term.

The business case for the upgrade of the range road section needs to be prioritised in the medium term.

Mareeba to Georgetown Link Road Improvements and upgrades to the Gulf Developmental Road are necessary to improve connectivity to the west of the region and facilitate the movement of goods. The Gulf Development Road links Normanton (Burke Development Road) to Cairns (Kennedy Highway). It connects the Gulf with the Eastern Seaboard and forms the principal transport link within the region for cattle, mining, tourism, freight and passenger travel. Sections of single lane seal and poor road conditions combined with the road train and tourist traffic on these routes create potential safety hazards.

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Ootann Road Prioritisation of the Ootann Road, a critical connector between the Burke Development Road and the Kennedy Highway to the south is needed. Ootann Road is a key link for Type 1 and 2 road trains and an economic enabler for expanding agriculture, cattle and supply chains for Cape York Peninsula, Gulf of Carpentaria and the Atherton Tablelands. It creates an inland alternative to the Bruce Highway and, linking with the Hann Highway, improves connectivity to air and seaports and southern and Asian markets. The road is technically a council owned asset, yet its usage of the road is more aligned with that of a state‐owned asset. The cost of upgrading this road (roughly $65 million) is well beyond the capacity of Mareeba Shire Council.

Industry Sectors

Tourism

Cairns and Far North Queensland are leading Australia tourism destinations. As the gateway to the Great Barrier Reef, its world‐class natural attractions provide the basis for a thriving tourism industry. Far North Queensland tourism employed a total of 28,000 people and contributed $3 billion to total GRP in 2017/18. Visitation continues to grow with the region attracting 1.8 million domestic visitors (spending $2.1billion) and nearly 1 million international visitors (spending $1.1 billion) each year.

Natural Assets

There is an excellent opportunity to link tourism with the renewable energy sector to develop a 30 year strategy that would see the region, the custodian of two World Heritage listed areas, provide the additional visitor experience by travelling to our high value natural sites by public transport powered by renewably generated fuels ‐ energy that is derived from within the regions such as hydro/solar electricity and hydrogen.

The renewables strategy also links innovation and education through smart technologies research. By positioning the far north as a Hydrogen fuels research and application hub, there is the opportunity to model and implement the entire cane train network on hydrogen fuel and in the longer‐term export green hydrogen through ports like Mourilyan. The opportunity to value add on the “clean green” asset base comes through the emerging international markets of Scope 3 carbon emissions. Scope 3 carbon credits from green hydrogen production for export fuel as well as a carbon reduction credits from the use of hydrogen fuels in projects like the cane train network are a significant opportunity to our agricultural sector and link smart science with productivity, manufacturing and tourism brand protection.

Cairns Gallery Precinct

This $40 million project aims to connect three regionally significant buildings, the existing Cairns Art Gallery, the Old Courthouse, and the former Mulgrave Shire Council offices. This initiative will play a key role in the emergence of Cairns as the Arts and Cultural Capital of Northern Australia, providing a vibrant and expansive arts precinct showcasing international and domestic touring exhibitions as well as contemporary local and Indigenous art. The project will create 176 jobs.

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Agriculture

Agriculture, fisheries and forestry contributes approximately $1 billion to the regional economy each year with leading exports including raw sugar, live cattle, tropical horticulture and tropical pasture seed. A large fishing industry and aquaculture sector supplies Asian and domestic markets with fish and shellfish. With a turnover of $3.44 billion, the sector employed 10,595 people across the region and contributed $1.347 billion to Far North Queensland GRP in 2018.

The additional high production for the Lakeland Irrigation Area will increase the value of regional produce by more than 50%. Additional opportunities exist in building drought resilience through irrigated fodder production to augment feed lotting opportunities.

Education

Investment in tertiary education to attract and retain essential skills in the region is integral to the region’s economic growth. Cairns is an education city with two leading universities, James Cook University and CQUniversity, ‐ as well as a leading vocational TAFE college, TAFE North. The education sector offers strong diversity with over 140 schools and world‐class training facilities servicing the marine, aviation, mining, tourism, and hospitality sectors. International students make up an increasingly important part of the local education economy, with over 32,000 international students studying in Cairns in 2020.

Cairns (and region) has a dynamic and vibrant education sector that includes two universities, six TAFE campuses and 35 secondary schools. The sector currently employs 13,000 people, contributing $1.1 billion to the regional economy. Despite this, the attainment of higher education in Cairns (and region) is almost half the national average. This statistic is typical of regional areas. It is well documented that the gap in education opportunities between regional and metropolitan communities in Australia, is both wide and persistent.

There are a number of proposed investment opportunities with both CQU and JCU, these include:  Queensland’s first Comprehensive University High School ‐ CQUniversity and Cairns State High School ($35 million)  Stage 2 and 3 CQUniversity Asia Pacific Aviation Hub ($45 million)  Permanent new CQUniversity Cairns CBD campus ($50 million)  James Cook University’s Innovation Centre ($30 million)  James Cook University’s Cairns Tropical Enterprise Centre ($60 million)

CQUniversity is experiencing rapid growth in the Cairns region but has hit a ceiling due to space constraints. It currently operates from a leased building with aging infrastructure, which is not fit‐ for‐ purpose. This limits the capacity of CQUniversity to deliver a full range of courses in this region. A purpose‐built campus would provide CQUniversity the ability to offer additional courses to help meet the needs of the growing local community, address workforce skills gaps and build regional capacity.

CQUniversity is currently seeking grant money to assist with the $50million campus project. This project would contribute upwards of $115 million to the local economy in the short‐term, and $165 million over the longer term. The social benefits for the region are perhaps more significant. The business case for the new city campus building has been two years in the making. It has become more urgent for CQUniversity to “shore up” further domestic education opportunities post COVID‐ 19 due to a drop in income from international students.

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Small Business Waste Waste management is an area of city operations likely to be subject to significant change in the short, medium and long term, particularly in light of the consistent population growth Cairns is experiencing, increased regulation and changing community attitudes towards waste. It is an area where a ‘whole of region’ approach is critical if investments in infrastructure are to deliver affordable and effective waste management solutions. Potential impacts of waste management approaches and solutions on the region’s iconic natural assets are also key considerations. https://www.qld.gov.au/environment/pollution/management/waste/recovery/strategy https://www.mccullough.com.au/2018/07/04/the‐future‐of‐waste‐management‐in‐queensland/

Public Sector Waste Management: Options are being explored for potential partnerships with organisations specialising in closed loop management of organics. The planning phase begins in 2020 with implementation for 2026.

Incentive Edmonton Business Park: The site includes space for over 100,000sqm of gross floor space with the ability to accommodate investors across a broad range of sectors, including Knowledge and Research, Technology, Logistics, Exporters, Retail, Light Industrial, Hospital and Health.

Start‐ups: Cairns is an ideal place to build your business with excellent connectivity, unprecedented investment, a supportive local authority, and affordable commercial space. There is also additional cross‐ sector support through organisations such as the Manufacturing Hub, FNQ Food Incubator and co‐ working space offered through private organisations.

Sustainability Carbon offsetting: There are opportunities to invest in carbon offsetting initiatives in the Babinda area through Jaragun Natural Resource Management, resulting in reinstatement of endangered rainforest.

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Recommendations

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Water

Ensuring the long‐term water security needs for our region is critical to the economic growth and development of Far North Queensland. The opportunity of water infrastructure development includes both Lakeland, Gilbert River, and the Johnson River Diversion.

Lakeland Irrigation Area Scheme The Lakeland irrigation precinct and hydro scheme to deliver up to 80,000ML of medium priority water to over 8000ha of high value horticultural produce.

Current position: The prefeasibility study is complete, $10 million provided to undertake the Detailed Business case, the EIS and predesign are underway.

Timeframe: Due late 2022 with the potential to fast track Cost: Estimated $556 million to construct the dam, irrigation scheme and hydro generation. Funding model: $150 million via Federal Grant (NWIDF), with the balance to be received from NAIF and Queensland State Private equity Investors. Jobs: Construction 1200 and 1150 FTE in full operation (est.) Benefit: Economic multipliers estimate $1.5 billion per annum with over 3,400 FTE with $559 million per annum production.

Road Upgrade Fund $200M Cairns to Mareeba Link Road Upgrades Commencement of urgent upgrades to the Kennedy Highway linking Cairns to Mareeba to prevent it from becoming increasingly uncompetitive as a freight route and negatively impacting the economic performance of the Cairns seaport and airport and demonstrably stifling economic development and urban growth in the Cairns, Mareeba, Cape York Peninsula, Atherton Tablelands and Gulf Savannah regions.

The Lakeland irrigation precinct will require reliable access to markets via road, rail and air freight. Three bridges have been identified on the Mulligan Highway at $20 million each at Spear Creek, Rifle Creek and McLeod River. These regularly go underwater and prevent all weather access between Lakeland and southern markets.

Current position: $1.25 million Safety Study Underway

Timeframe: Immediate Cost: $60 million (3 x $20 million) Funding model: Federal Grant Jobs: TBA Benefit: Enabling the economic growth and access to markets for Far North Queensland.

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Peninsula Development Road The Federal Government has committed $215.5 million towards to progressively upgrade 527km of the Peninsula Developmental Road between Lakeland and the Rio Tinto Boundary, south of Weipa. Stage one has been completed. Stage Two has been brought forward to seal 54.5kms of the PDR between Laura and Coen.

It has been identified that bringing forward the Laura River Bridge Crossing would provide all weather access on the PDR.

Current position: Stage One finished – Stage Two funded – Stage Three needed

Timeframe: Immediate Cost: $30M Laura River Bridge Funding model: Federal Grant Jobs: 73 Benefit: Enabling the economic growth and access to markets for Far North Queensland.

Mareeba to Georgetown Link Road (ROSI + $35M) Make necessary improvements and upgrades to the Gulf Developmental Road to improve connectivity to the west of the region to facilitate the movement of goods. The Gulf Development Road links Normanton (Burke Development Road) to Cairns (Kennedy Highway). It connects the Gulf with the Eastern Seaboard and forms the principal transport link within the region for cattle, mining, tourism, freight and passenger travel. Sections of single lane seal and poor road conditions combined with the road train and tourist traffic on these routes create potential safety hazards.

The Federal and State Government are currently negotiating which sections of the single lane access should be prioritised. In addition, the Gulf Development Road from Normanton to the Border is also under consideration. Some ROSI funds are available however an estimated additional $35M is needed to complete the route.

Ootann Road Prioritise the Ootann Road – a critical connector between the Burke Development Road and the Kennedy Highway to the south. Ootann Road is a key link for Type 1 and 2 road trains and an economic enabler for expanding agriculture, cattle and supply chains for Cape York Peninsula, Gulf of Carpentaria and Atherton Tablelands. It creates an inland alternative to the Bruce Highway and, linking with the Hann Highway, improves connectivity to air and seaports and southern and Asian markets. The road is technically a Council owned asset, yet its usage of the road is more aligned with that of a State‐owned asset. The cost of upgrading this road (roughly $65 million) is well beyond the capacity of Mareeba Shire Council.

Queensland Department of Transport have indicated that they will look to prioritise the remaining section of Ootan Road (Hahn Highway) under the Local Roads of Regional Significance Program. The Federal Government could offer to co‐fund this road in an attempt to bring it forward. Estimated costs to seal the road are $1 million per kilometre (the business case will be provided shortly by TMR.)

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Education CQUniversity Cairns CBD Campus CQUniversity is experiencing rapid growth in the Cairns region but has hit a ceiling due to space constraints. It currently operates from a leased building with aging infrastructure, which is not fit‐ for‐ purpose. This limits the capacity of CQUniversity to deliver a full range of courses in this region. A purpose‐built campus would provide CQUniversity with the ability to offer additional courses to help meet the needs of the growing local community, address workforce skills gaps and build regional capacity.

Current position: The Business case for the new city campus building has been two years in the making. It has become more urgent for CQU to “shore up” further domestic education opportunities post COVID19 due to a drop in income from international students. Timeframe: Ready to go Cost: $50 million Funding model: Federal Grant Jobs: 50 in construction and 40 longer term Benefit: $115 million short term and $165 million longer term

Art and Culture Cairns Gallery Precinct This $40m project aims to connect three regionally significant buildings, the existing Cairns Art Gallery, the Old Courthouse, and the former Mulgrave Shire Council offices. This initiative will play a key role in the emergence of Cairns as the Arts and Cultural Capital of Northern Australia, providing a vibrant and expansive arts precinct showcasing international and domestic touring exhibitions as well as contemporary local and Indigenous art.

Projects – Further Assessment $3.5M

Gilbert River Irrigation Precinct $500K

The project proposes to construct a major water storage, and delivery mechanism with an annual nominal allocation of 130,000 ML. It is proposed t the scale of the development might sustain the development of local processing facilities, such as fruit and/or nut packing sheds and a cotton gin.

Water assessments in this region to date have focussed on individual aspects of the greater Gilbert Catchment. There is a strong argument for an overarching piece of work that looks at a strategy for the entire system.

Freight Study for The Cairns Region, Supply Chain Inefficiencies $500K

Cairns has Queensland’s largest locally based marine fleet. This includes Australia’s largest tourism fleet ‐ 187 passenger vessels registered carrying over one million visitors to the reef each year, Australia’s largest fishing industry port with 700 registered vessels, the largest fleet of cargo and work vessels home

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ported in Northern Australia and is home to Australia’s north eastern naval base and other government vessels e.g. Border Force. In addition, Cairns is home port to the largest number of commercial vessels registered in Queensland – 1,603 next closest is Brisbane at 1,188 vessels.

In the case of Cairns, most of the containerised International freight is delivered by vessel through the Great Barrier Reef, past Cairns to the Port of Brisbane, before being either trucked or railed back into Cairns from Brisbane. The supply chain is extremely inefficient.

The purpose of the freight study will look at where Cairns Port sits in relation to regional servicing to best optimise its potential. Which port infrastructure to invest in will fall naturally from an overarching understanding of port service and supply chains.  Weipa Port Development  Torres Strait island Landing Facilities upgrade

Pre‐feasibility Green Hydrogen Economy Hub $2M

Australia’s National Hydrogen Strategy sets a vision for a clean, innovative, safe and competitive hydrogen industry that benefits all Australians.

The strategy outlines an adaptive approach that equips Australia to scale up quickly as the hydrogen market grows. It includes a set of nationally coordinated actions involving governments, industry, and the community.

Given abundant Hydro and solar assets in Far North Queensland, becoming a trial site for a Hydrogen based Hub is a natural extension of the region’s assets. The extensive cane train and cane processing mill network is a good example of where this technology might be used in a practical sense.

Current position: Federal Government has nominated funds for hydrogen hub research Timeframe: ASAP Cost: $2million from Federal fund Funding model: Grant Jobs: TBA Benefit: Environmental; sustainability and reduced emissions within the great barrier reef catchment. Credits in a potential market for Scope Three emissions

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Pre‐feasibility Biosecurity (Irradiation) Treatment Facility $500K

Current position: Expanded agricultural production from Lakeland will necessitate a localised biosecurity treatment facility. Current produce is trucked to Brisbane and markets south for treatment prior to redistribution overseas and back into northern regions. Cobalt irradiation facilities can service both the agricultural and medical industries.

Fresh vegetables lose significant nutritional content in a three to five day post‐ harvest period. As an example, spinach loses over 60% of folic acids after five days post‐harvest. In some cases, fruit and vegetables from the Cairns region are harvested, trucked to Brisbane, sold at market and re‐transported to Far North Queensland for distribution to remote communities. In some cases, this can take up to two weeks.

Produce from Lakeland could effectively be picked, washed and treated in Cairns and back into remote communities within 3 days. Timeframe: Immediate Cost: $1million Funding model: Federal grant Jobs: TBA Benefit: Creating local markets and export hubs

Facilitate New Projects $2M

 Project Assessment Tool  Identify Regional Projects and Proponents  Assess the process and viability  Identify potential funds for projects  Collaborate with proponents, departments, Councils, NAIF & NGO’s Fast Track Approvals

 Projects of national & regional significance  Projects over the value of $250M  Projects that attract finance approvals  Projects that are sector driven  Projects that are based in the regions Deliver Projects

 Connected and catalytic  Commercially viable  Shape and influence government policy  Reduce red/green tape  Strategic importance and interregional  Employment focus with significant economic multipliers RDA Tropical North Inc. Page | 24

Appendix A

Stakeholder Engagement Major Industry and Representatives  Tourism Tropical North Queensland (TTNQ) and FNQ LTOs  Study Cairns  Superyacht Group Great Barrier Reef  Cairns Airport  Ports North / North Qld Bulk Ports  FNQ Growers  Urban Development Institute of Australia (UDIA)  Master Builders Association Queensland (FNQ)  Infrastructure Association of Queensland  Infrastructure Sustainability Council of Australia  TAFE/JCU/CQU

Industry Bodies  AgForce  NFF  Growcom  Horticulture Innovation Australia Limited

Economic Development Bodies  Advance Cairns  Cairns Chamber of Commerce and Industry  Cairns Chamber of Commerce (and other regional chambers)  Gulf Savannah Development  Tablelands Futures Corporation  Enterprise North

Indigenous Representatives  Cape York Institute  Balkanu ‐ Cape York Economic Development Corporation  Cape York and North Qld Land Councils  Various Prescribed Body Corporates, Indigenous organisations and Traditional Owners

Local Government  21 LGAs across the FNQ&TS region  Far North Queensland Regional Organisation of Councils  Torres & Cape Indigenous Councils Alliance

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Queensland State Government  Department of State Development, Manufacturing, Infrastructure & Planning  Department of Aboriginal & Torres Strait Islander Partnerships  Department of the Premier and Cabinet  Department of Transport and Main Roads  Department of Natural Resources, Mines and Energy  Department of Employment, Small Business and Training  Department of Agriculture and Fisheries  Building Queensland  Members/Relevant Ministers and opposition

Federal Government  Department of Infrastructure, Transport, Regional Development and Communication  Infrastructure Australia  Northern Australia Infrastructure Facility  Department of Industry, Innovation & Science  Austrade  Office of Northern Australia  Department of Environment & Energy  Department of Agriculture & Water Resources  Department of Foreign Affairs & Trade  Department of Prime Minister & Cabinet  Assistant Minister for Regional Development and Territories Nola Marino MP  Deputy Prime Minister Michael McCormack – Infrastructure & Water  Minister David Littleproud – Agriculture  Minister Karen Andrews – Innovation & Science  Minister Keith Pitt – Northern Australia and Resources  Minister Angus Taylor – Energy (Hydrogen)  Senator Matthew Canavan  Senator Murray Watt  Senator Susan McDonald  Warren Entsch MP  Senator Nita Green

Key Statutory Authorities  Wet Tropics Management Authority  Great Barrier Reef Marine Park Authority  Torres Strait Regional Authority

Private Sector:  Individuals and companies across the tourism, pastoral, agriculture, mining, manufacturing, retail, construction, renewable energy, consulting/professional services, training sectors.

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Research Institutions  CSIRO  Reef & Rainforest Research Centre  James Cook University  Central Qld University  Regional Australia Institute  Cooperative Research Centre Northern Australia

General Public & Media  The Cairns Post, Mareeba Express, Radio/TV, various local free publications  Australian Financial Review, Courier Mail, Australian

Natural Resource Management  Northern Gulf Resource Management Group  Cape York NRM  Terrain NRM  Torres Strait Regional Authority

Skills/Workforce Development  Queensland Agricultural Workforce Network  Workforce North  Construction Skills Queensland  Australian Government Workforce Facilitator

Social Sector  Cairns Alliance of Social Services (CASS)  Qld Council of Social Services (QCOSS)

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Appendix B

Funding Pathways

 NAIF  Building Better Regions Fund – coronavirus recovery round (Federal)  Works for Queensland – coronavirus recovery round (State)  Attracting Tourism Fund – coronavirus recovery round (State)  Jobs and Regional Growth Fund – coronavirus recovery round (State)  Program adaption – coronavirus recovery support (Various)  Events funding (various)  Tourism funding – Cairns/TNQ (various)  Business case funding program – coronavirus recovery projects (various)

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Appendix C

Stimulus Initiatives Policy

 Domestic aviation connectivity and capacity  Pacific Patrol Boat/Guardian Patrol Boat training  Export Market Development Grant (EMDG) reset and reimbursement  Commonwealth and international supported places (JCU Medical School)

Policy Recommendations to be Developed Red and Green Tape  Identify entrenched red and green tape hampering regional growth.  Collaborate with industry groups and growers to identify specific compliance issues.  Set up adequate ‘fast‐track’ processes to help strip away bureaucratic red tape.

Business Incentive Policy

 Policy Recommendation 1 – Negotiate pre‐determined trades and labour rates for all Public infrastructure projects across Northern Australia. These rates are the only approved rates to be used on Government infrastructure projects  Policy Recommendation 2 – Cap public sector salaries across Northern Australia and link them to private sector wage rates  Policy Recommendation 4 – Implement a two‐tier tax rebate zone for Northern Australia for residents only offset with a 15% Zonal GST  Policy Recommendation 5 – Create a mechanism to allow freehold tenure for First Nations people who chose to live and work on their traditional lands  Policy Recommendation 6 – Review and implement new investment return criteria for critical multigeneration infrastructure projects  Policy Recommendation 7 – Creation of a National Trades Initiative as a National (but focused on Northern Australia) program that offers trades and skills‐based programs to all school leavers who are not going on to study.  Policy Recommendation 8 – Review Policy for Ports development across Northern Australia with a view to expanding existing facilities and installation of Micro‐Ports as import hubs  Policy Recommendation 9 – Review Local, State, and Federal Government Supply and Transport Policies and ensure preference is given to lower cost, and lower Carbon cost supply modes

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Marine Policy

Remote Marine Infrastructure Action 3.1.1: ‐ Financial modelling of available options showing efficiency gains vs cost of new depot  Remote Marine Infrastructure Action 3.1.2: ‐  Lobby and liaise with Cairns Regional Council, Port Authority, and State Member for Cairns on preferred option  Remote Marine Infrastructure Action 3.2.1: ‐ Financial modelling of jetty and cold‐room  Remote Marine Infrastructure Action 3.2.2: ‐ Lobby and liaise with Lockhart River Council, Port Authority, and State Member for Cook on opportunity  Remote Marine Infrastructure Action 3.2.3: ‐ Establish funding/title offset with Ports North to allow for local community ownership and engagement  Remote Marine Infrastructure Action 3.3.1: ‐ Financial modelling of jetty and cold‐room costs  Remote Marine Infrastructure Action 3.3.2: ‐ Lobby and liaise with TSIRC, and State Member for Cook on opportunity

Northern Insurance

Diverting regional zone tax rebate into insurance offsets for high impact zones for natural disasters.  Assess the process and viability  Identify potential funds for projects  Collaborate with proponents, departments, Councils, NAIF & NGO’s

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