Senate Select Committee into Jobs for the Future in Regional Areas Submission by Regional Council

The following submission is made by Rockhampton Regional Council (RRC) in response to the Senate Select Committee into Jobs for the Future in Regional Areas and associated matters covered by the Committee.

The unrelenting march toward metro centralisation of Australia and hollowing out of regions beyond commuting distance is at the heart of this submission. This trajectory is no longer acceptable and the consequences of policy inaction at both State and Federal levels and pursuit of government "business as usual" will be increasing disparity and inequity and increasing political instability in regional and Australia.

Talk of “just transitions” away from existing out-of-favour industries is interpreted by many as code for “we no longer need regional Australia” and its productive primary industries including resources and agriculture. Much of regional Australia has been on the wrong end of decades of unjust transitions – centralisation of decision making, economic activity and populations in metropolitan areas and struggling or declining regional and local economies and populations.

If we first focus on growing our regions and local economies, the need to even try and “manage” industry transitions will diminish.

This submission calls for Federal and State policy settings that actively nurture, sustain and grow our regions. We need policies, practices and investment to generate jobs and growth and affirmative action to favour the regions before market forces finish the regions.

Time is of the essence. Actions need to be urgent and untied from the protracted planning and analysis paralysis that mires many good intentions. There need to be defined, measured and localised targets for jobs and growth beyond the metro and peri-metro areas. There needs to be real partnerships between all three levels of government and those partnerships must be systemic rather than ad-hoc and be backed by real commitment and resources.

About Rockhampton Regional Council Council is the custodian of approximately $2.5 billion in assets on behalf of our community and employs over 900 people. Our annual operational budget is over $200 million and we will spend around $110 million per annum on capital projects over the coming three years. Council’s procurement policies result in approximately 75% of all spending on the supply of goods and services being with local businesses.

Council owns and operates the Rockhampton Airport and Fitzroy River Barrage and maintains some 2,000 kilometres of sealed and unsealed roads. It also operates and maintains extensive water and sewage treatment facilities and reticulation networks. In addition, Council provides facilities and services such as waste management, libraries, theatres, swimming pools and some 390 hectares of parks, sporting fields and recreational areas.

In recent years Council has taken a deliberate and necessary step to build its own economic development capabilities with the establishment of it’s Advance Rockhampton business unit.

Council and Local Government generally are deeply invested in their region – we drive on the roads we build, play on the fields and parks we maintain, serve our friends and neighbours, and are a part of every dimension of the community. Local Governments are also the only tier of government that is exclusively focused on local areas and as such are well positioned to identify local issues, potential solutions and local priorities.

Nationally, Australia's 537 local Councils employ around 189,500 people, own and manage nonfinancial assets with an estimated written down value of $428 billion (2016– 17), raises around 3.6% of Australia's total taxation revenue per annum and have an annual operational expenditure of around $36 billion (2016–17). Source: ALGA 2019 Federal Election document

Rockhampton Regional Council Submission September 2019 Page 1 About Rockhampton Rockhampton has a population of over 80,000 people. It is centrally located in the wider Central Queensland region and provides higher order retail, health, education, business and community services to a regional population of over 230,000 people. Rockhampton is also the headquarters for CQUniversity, the State's only dual sector university and TAFE, and is a regional hub for government services.

Rockhampton is strategically and centrally located on key intrastate road and rail networks and has an international standard airport catering for regular passenger services, international charter flights and both general and specialised heavy lift air freight.

Rockhampton also ranks highly in terms of cost of living and housing affordability.

Rockhampton has however been impacted by multiple significant natural disasters over the past 8 years including major flooding in 2011, 2013 and 2017, severe TC Marcia in 2015 and bushfires in the Gracemere area in 2018. These events have impacted on the community, the local economy and Council's finances. The cumulative cost to Council of these natural disasters is over $100 million.

Since the 2012-13 financial year, Council has spent $74 million on natural disaster recovery and reconstruction, $14.6m of which has been ratepayer funded. This in turn has affected Council’s insurance premiums which have increased on average by 19% pa since 2014-15 (an additional $1.05m).

Much of Queensland and Rockhampton's wider service catchment has also been impacted by extended periods of drought.

Individuals, families, businesses and communities are doing it tough in regional areas and Rockhampton is no exception.

Rockhampton has experienced persistently high unemployment averaging 8.0% over the past five years and currently sitting at 7.4% (March 2019). It has experienced negative GRP growth in 2015, 2016 and 2018 and has effectively had no net increase in jobs or population in the five years to June 2019.

Source: id.ecomony (National Economics NIEIR)

If these local circumstances were reflected at a State or National level it would be seen as an economic crisis and significant policy and fiscal stimulus measures would be implemented.

Rockhampton Regional Council Submission September 2019 Page 2 More broadly, but also in Rockhampton, wage growth has been low and people’s discretionary income has been decreasing with costs of living outpacing wages growth. The retail sector is reported to already be in recession with margins under intense pressure and online sales continuing to grow and erode traditional retailers. Building approvals in many areas, including Rockhampton, are significantly below longer term averages which flows directly on to viability and stability of the construction sector.

Similar to other non-metropolitan, Rockhampton also experiences negative wealth effects through differential rates of property value appreciation when compared to Australia's major cities and nearby regions.

Regions outside of metropolitan areas experience diseconomies of scale that could be reversed at least in part through better policy settings. Building critical mass of population in regional cities such as Rockhampton would support both their efficiency and sustainability. Regions and regional infrastructure projects are also structurally and systemically disadvantaged in competing with metropolitan business cases, including via both Building Queensland and Infrastructure Australia assessment frameworks.

Advances in technology and telecommunications were hailed as solutions to the tyranny of distance for regional areas. It could be argued that while regional areas are now generally better connected socially, the economic impacts have been the opposite with both government and private sectors able to centralise and increase the efficiency of their service delivery and with on-line retail being able to service a national market form a single or small number of distribution centres. These large highly automated centres, either owned or third party logistics providers include operators such as Amazon (Melbourne and Sydney), Toll (Preston, Sydney), eStore Logistics and Cotton On (Avalon and ).

Arguably, technology has widened the metro-regional divide rather than bridging it.

Rockhampton Regional Council Submission September 2019 Page 3 Fighting for Our Future

In the five years to 30 June 2018, 94.1% of Queensland's population growth was in South East Queensland (SEQ). Growth in Townville and Cairns was 4.9% of the total and the remaining 1% was spread across the balance of Queensland.

Queensland Government population projections (2018 edition) forecast SEQ's population will grow by 1,945,771 by 2041 and represent 84% of total growth in the State.

The Rest of Queensland is expected to grow by only 367,012 people (16% of total growth) with nearly half of that growth (49.3%) concentrated in and Cairns. Based on the historical share of growth over the five years to June 2018 (5.9%) the 16% projection may be optimistic.

Between December 2013 and December 2018 there were 204,076 jobs created in Queensland with a 219,515 net gain in SEQ and 15,439 net loss in the Rest of Queensland. The two years to December 2018 isn't as bad for the Rest of Queensland with an increase of 17,163 jobs (but still just 12.6% of the total increase in State labour force over that same period). Over the same two years the SEQ labour force increased by 119,270 (87.4%). Of the 17,163 jobs created across the Rest of Queensland in the two years to Dec 2018 11,433 jobs were created in Townsville and 5,043 jobs were created in Cairns with Townsville and Cairns make up 96% of the labour market increase across the rest of Queensland.

Federal Government employment projections suggest 150,400 new jobs will be created in SEQ in the next 5 years (86.6% of total employment growth in Queensland) and 23,200 new jobs created in the balance of Queensland (a meagre 13.4% of the total). Of those 23,200 jobs in the Rest of Queensland some 9,907 (42.7%) are projected to be created in Townsville and Cairns.

While not as robust as SEQ, the performance of Townsville and Cairns could be interpreted to suggest these two larger regional cities have reached a "critical mass" that attracts growth and insulates them in part from economic volatility.

The stark comparisons above paint a dim future for those living outside of the great South East (or any other metropolitan or near-metropolitan areas in Australia). The consequences of policy inaction at both State and Federal levels and pursuit of government "business as usual" will be increasing disparity and inequity and increasing political instability in regional Queensland and Australia.

The consequence of these trends and the system of proportional representation will also mean a diminishing voice and influence in government.

Is this the future we as a nation want for regional Australia? If not how do we respond?

Rockhampton Regional Council Submission September 2019 Page 4 Business as usual will not create the substantial change required to shift the dial and is no longer an acceptable option. Rockhampton Regional Council has petitioned the Queensland Parliament for A Fair Go for All Queenslanders and proposed a number of policy initiatives in representations to the Deputy Prime Minister.

The proposed dimensions for "A Fair Go" action are in the areas of policy, practice and projects. The proposed actions are also grouped into three domains of Local Partnerships, Regional Capitals and Affirmative Action.

1. REAL INTERGOVERNMENTAL PARTNERSHIPS • Federal and State Governments to directly and formally partner with individual Local Governments via "Local Partnerships" to advance local and regional development. • Establish regional offices of both Department of Premier and Cabinet and Department of Prime Minister and Cabinet to collaboratively develop and manage individual Local Partnership agreements across a portfolio of Local Governments in their regions. • Reform and increase funding to local government and commit to ongoing “Local Partnership Program” foundation funding.

2. REGIONAL CAPITALS POLICY AND ACTION • Establish a policy and practice for and public investment in “Regional Capitals” (populations over 60,000) to develop a network of large regional cities across Australia to rebalance urban growth and take growth pressure of metropolitan and near-metro areas. • Build critical mass and economies of scale in regional cities to address the current disadvantage of diseconomies of scale.

3. AFFIRMATIVE ACTION FOR REGIONAL GROWTH AND DEVELOPMENT • Develop and implement Federal and State taxation and relocation incentives; • Accelerate the delivery of major infrastructure and project; • Aggressively plan and pursue regional industry development; • Fund and finance catalytic development infrastructure; • Support and partner in projects development and business cases; and • Pursue targeted decentralisation

Rockhampton Regional Council Submission September 2019 Page 5 The following information is provided with specific reference to the Select Committee terms of reference. Issue 1 - New industries and employment opportunities that can be created in the regions The notion that "new industries" will bring jobs, a "just transition" (from old or out-of-favour industries) and prosperity to regional areas is largely fanciful and with some limited examples such as the LNG industry, without any real supporting evidence. "New industries" such as those in the information technology, biotechnology, aerospace and alternative energy sectors are far more likely to develop and be concentrated in metropolitan areas that demonstrate agglomeration and clustering benefits, where manufacturing can be undertaken at scale and where workforces are a much larger scale, better skilled and more diverse.

There is rarely latent capability for these industries in regional areas. As a result, establishing in regions would be highly reliant on government policy and investment facilitation practice and most likely accompanying incentives to break the nexus with metropolitan attraction.

These same industries could be located in regional cities such as Rockhampton that also have some level of tertiary education and research capabilities. Government policies and practices in the form of those proposed by Council’s “Affirmative Action” policy would provide levers for attracting and retaining both private and public investment and jobs in a range of “new industry” sectors. Determining the local comparative advantages, best fit industry and planning for this development would also be via Council’s proposed Local Partnerships.

The following broad industry opportunities have been identified by and are currently being promoted by Rockhampton Regional Council. These represent where Council believes there are realistic opportunities for industry and jobs growth in our region. Few of these are “sue things” and we fight for every scrap we can get.

Accelerating Major Projects - The has a number committed and publicly funded major infrastructure projects, however many of these have been delayed or remain in their planning phases. They are also regularly subjects of counterproductive political posturing and point-scoring. These projects are critical for our future and need to be accelerated to provide both short term jobs and essential economic stimulus for the region. Unnecessary delay of these projects have an immediate and ongoing economic dis-benefit (see attached major projects update)

Agricultural Industry – Pursuing agricultural industry investment and development associated with Rookwood Weir represents a significant opportunity for Rockhampton and the surrounding region. This is a traditional industry that will build on existing capabilities, particularly in but not limited to the beef and meat processing sectors. The State and Federal Governments need to get on with the job of building the weir while also recognising that the weir is just the first step on a journey to develop intensive and high value agricultural industries in the Rockhampton region.

Aquaculture Industry – Opportunity exists in pursuing industry investment and development through the Aquaculture Development Areas (ADA) identified by the Queensland Government. The Queensland Government has identified six Land-based marine aquaculture development areas (ADAs) to promote and grow a sustainable aquaculture industry in the State. The six areas total some 7,048 ha with two locations and just over 50% of the total area located in the Rockhampton region. This would largely be a new industry for our region but is still fundamentally a primary industry. Council is currently finalising an Aquaculture Industry Development Strategy but its implementation will require support from both State and Federal governments to promote and facilitate private sector investment.

Industrial Development - While Rockhampton has a good mining and industrial services base, it has received little tangible support from State or Federal Governments for its efforts to build this important sector. Stanwell Power Station and the Gracemere Stanwell Industrial Corridor represent undercapitalised opportunities. Council does however welcome the recent State Government announcement to invest $5 million in the next stage of assessing the feasibility of 10MW or larger hydrogen electrolysis plant at the Stanwell Power Station.

The State Government plays an important role in attracting and facilitating industrial investment and development in Queensland. Its role includes the planning, acquisition and development of industrial estates across the State, however, Rockhampton has been obvious by its omission form these investments over an extended period. Council’s proposed Local Partnerships, Regional Capitals and Affirmative Action policies (and practice) seek to redress this issue with higher expectations of joint planning and delivery of jobs and growth outcomes for the local area.

Rockhampton Regional Council Submission September 2019 Page 6 Resources Sector and Gateway to the Galilee - Council has been a consistent and vocal supporter of the Adani Carmichael Mine and, along with Townsville, will be one of the mine's fly-in-fly-out hubs. Council sees significant potential to leverage this position with other Galilee Basin resource projects along with establishing Regular Passenger Transport (RPT) air services between Rockhampton and the Central West. Rockhampton is already an established dormitory for workers who drive-in-dive-out to Bowen Basin mines. (see attached map of proximity to resource projects)

The Queensland Resources Council (QRC) estimates the 2017-2018 economic contribution of the resources sector to Rockhampton to include 1,089 direct and 4,750 indirect jobs, $1.1 billion contribution to Rockhampton’s gross regional product and $351 million spent on goods and services and community contributions. While this is significant, capturing a greater share of the resources sector benefits could deliver significant jobs and growth to Rockhampton. Both industry and government could contribute to a higher proportion of benefits staying in regional areas.

A degree of automation in the mining and resources sector appears inevitable. While this may be the case, impacts on regional employment would be compounded by centralisation of control centres in metropolitan areas. Retaining control centres in regional areas and building local capability and capacity to maintain these autonomous systems is highly desirable.

Tourism and Events - Again this is a traditional industry but one that Council has actively sought to grow in the region. Council has strongly supported the attraction and growth of events (eg Beef Expo, River Festival and RockyNats) and building suitable tourism product with sufficient scale and quality to increase the visitor night stays and spend in the region.

Significant investments have been made over recent years into redeveloping the Rockhampton Riverfront, Kershaw Gardens, Mount Archer access and amenities and boating and fishing infrastructure. Further local tourism opportunities include the new Rockhampton Art Gallery (under construction), leveraging Mount Morgan's history and pre-history (including reopening of the Fire Clay Caverns), enhancing the Dreamtime Cultural Centre, Heritage Village, Botanic Gardens and Rockhampton Zoo. Opportunities also exist to enhance sporting and events facilities and infrastructure to both meet local needs and support attraction of higher level sporting carnivals and events.

Defence Industry - Rockhampton is the natural gateway to the Shoalwater Bay Military Training Area (SBMTA) which hosts Australian, Allied and Singaporean training exercises that can be both combined (across Army, Navy and Air Force) and joint (with other forces such as the USA in Exercise Talisman Sabre). While this is the case and Rockhampton acts as a key staging point, benefits are transient and small scale when compared to locations such as Townsville where personnel are permanently stationed.

Rockhampton would benefit substantially form positioning significant Australian Defence Force (ADF) personnel in Rockhampton based on proximity to SBMTA and Gladstone Port and on a key transport route between Brisbane and Darwin and Brisbane and Townsville. Further regional disposition of ADF would also enhance personnel recruitment and retention outcomes.

With ADF force modernisation well underway there could also be opportunities in equipment and technical systems development, manufacture and maintenance. Initiatives such as the Land 400 and establishment of the Rheinmetall Land 400 facility at Redbank (and their Military Vehicle Centre of Excellence) are seen as a lost opportunity for regional development – and could have been established in a regional city such as Rockhampton.

Defence force disposition and associated industries are one potential lever for the Federal Government to advance regional development in a complementary way.

Further to these broad industry opportunities Council believes there are specific areas that warrant further investigation, through mechanisms such as those policies proposed by Council.

Rockhampton Airport Development – The Rockhampton Airport is owned and operated by Rockhampton Regional Council. Annual passenger numbers are approximately 600,000 per annum and in addition to the current Regular Passenger Transport (RPT) services, the airport functions to support the Australian Defence Force, Singapore Armed Forces, United States Military and Australia’s regional Allies during training exercises. The Singapore Armed Forces currently utilise a site on the airport for storage and maintenance of equipment.

Rockhampton Regional Council Submission September 2019 Page 7 Opportunities exist to build on this key strategic asset through apron extensions, improved freight facilities, redevelopment of the passenger terminal and upgrading of associated infrastructure. Council will soon commence a feasibility assessment of flood mitigation options to reduce the risk of flooding of the airport.

CBD Revitalisation Project – Council has been working toward revitalisation of its CBD over a number of years with the planning and delivery of a number of catalytic projects including the Riverfront Redevelopment and new Rockhampton Art Gallery (under construction). In spite of these efforts the CBD continues to struggle – in part because of prevailing economic conditions. Council continues to explore opportunities for revitalisation of the CBD including potential mixed-use redevelopment of Council owned land. This is one of a number of potential opportunities that might be supported by the proposed intergovernmental Local Partnerships.

Health and Education – Rockhampton is the regional headquarters of the CQ University and CQ health and Hospital Service. The University and Health Service are both large employers in the region and provide essential higher-order services to Rockhampton and the wider region. Opportunities exist to build on these existing capabilities including opportunities for further collaboration between the two.

Sports and Events Precincts Development – Council recognises the need for quality community infrastructure that support healthier lifestyles and accommodate both major events and sports (including the need for marquee grounds to attract state and national games). Council is currently working toward master planning of a number of multi-use precincts that will support both community and economic outcomes.

SmartHub Incubator – Most regional cities have made efforts to support the formation of new and technologically savvy businesses. Rockhampton’s manifestation of this is via our SmartHub which is to provide support and assistance to start-ups, entrepreneurs and small business owners. The SmartHub, an initiative of Council’s Smart Way Forward Strategy provides an affordable co-working space where members can collaborate with others, learn and grow from the sense of community plus have access to a variety of programs and events that support innovation and business development.

In addition to pursuing targeted opportunities to support jobs and growth, there is a need to also address barriers to growth. One of the key constraints for Rockhampton is flooding.

Disaster Resilience – Natural disasters have been prominent in Rockhampton’s history and not only cause direct and tangible damage to private and public assets but also cause significant and ongoing reputational damage that discourages investment and growth. Rockhampton cannot afford to let these circumstances prevail and has pursued decisive action to mitigate flooding and improve the resilience and reputation of our region. Central elements include construction of the South Rockhampton Flood Levee, completion of the North Rockhampton Flood Mitigation works and investigation and planning for an Airport Levee.

These are major undertakings and require all levels of government to work together. Council’s proposed Local Partnerships model could provide a mechanism for collaboration and delivery of important projects, initiatives and outcomes in this area.

Issue 2 - the number of existing jobs in regional areas in clean energy technology and ecological services and their future significance Council does not have access to jobs statistics at this level of granularity but would be interested in accessing statistics if they are available. It would be reasonably suspected that many of these jobs (beyond short term construction jobs on projects such as solar and wind farms) will also be located in metropolitan areas. In the local Rockhampton region, there have been no large scale renewable energy projects constructed to date.

Rockhampton Regional Council Submission September 2019 Page 8 Issue 3 - lessons learned from structural adjustments in the automotive, manufacturing and forestry industries and energy privatisation and their impact on labour markets and local economies Rockhampton has had a proud history and association with the beef industry, resources sector, railways and defence. Significant change in these industries has negatively impacted on Rockhampton including recent closure of the railway workshops that at their peak employed thousands of people. This was the result of decisions of government over time to invest in new maintenance facilities and largely prior to the privatisation of Aurizon. Some support services have been retained and returned but have not fully offsetting the losses.

Rockhampton also historically had a more significant Australian Defence Force presence that has diminished over time as restructures of the force have occurred. In spite of being the gateway to the Shoalwater Bay Military Training Area, permanent Australian Defence Force numbers are minimal.

Retail is also potentially in structural decline locally and across regional Australia with trends toward on-line shopping – much of which is now via large scale centralised and automated distribution centres. While this is not necessarily unique to regional areas, its effects are often magnified by the absence of alternative employment and critical mass of local communities. This structural change is also projected to continue with increasing penetration of on-line sales in the retail market.

Another major dimension is structural adjustment of the population itself and shift to metropolitan and near metropolitan areas. This shift is compounded by continuing disproportionate growth between metropolitan and non-metropolitan regions.

The lessons learned are that structural change can be insidious (death by a thousand cuts) and can in fact be driven or caused by government decisions and policy, whether intended or not.

Issue 4 - the importance of long-term planning to support the diversification of supply chain industries and local economies State and Federal Governments commit significant attention and resources to the long term land use and infrastructure planning associated with fast growing metropolitan and peri-metropolitan areas. They also focus on the development of targeted industry sectors and associated investment attraction and facilitation. Their focus on regional development tends to be through these lenses rather than local economies. The importance of sectoral approaches isn’t disputed, however this approach isn’t universally or uniformly translated to incorporate or benefit regional and local economies. This approach benefits some regions and local economies while effectively disadvantaging others (by exclusion or omission).

It is widely recognised that regions are not homogeneous and as a consequence their needs differ. The same is also true for Local Government areas within regions and even communities within Local Government boundaries. It is also recognised regions and local communities are often best placed to identify issues and opportunities and develop and implement solutions.

The notion of place-based planning and delivery has gained momentum in recent years and is now widely acknowledged as a beneficial approach that recognises and responds to the sometimes unique characteristics of local places and communities. Delivering better, more timely and integrated decisions and outcomes benefits both communities and government.

This gives rise to the need for a different approach to regions and local economies. The City and Regional Deals have been held up as an alternative approach to planning and development of regions. The approach has however resulted in the Federal and State Governments “picking winners” and by omission losers.

Rockhampton Regional Council proposes a “third way” that builds on the intent of the “deals” approach but is applied to all local governments. This Local Partnerships model seeks a real and ongoing intergovernmental partnership across the three tiers of government. It is founded on the principles of place based planning and action and systemic reform of funding arrangements with local government. It will require the commitment of resources to develop and manage these partnerships but will promote more equitable outcomes, particularly for non-metropolitan regions.

In addition to more localised placed based planning and action, new approaches to regional development policy and practice are required. Business as usual will not address the issues regional Australia is facing.

Rockhampton Regional Council Submission September 2019 Page 9

Issue 5 - measures to guide the transition into new industries and employment, including: • community infrastructure to attract investment and job creation; • the need for a public authority to manage the transition; • meaningful community consultation to guide the transition; and • the role of vocational education providers, including TAFE, in enabling reskilling and retraining Rather than focusing on what appears to be poorly defined “transition into new industries” which could mean many things to many people, the broader intent of how to sustain and grow regional areas within the context of a variety of local, national and global factors should be considered.

Council strongly supports the principles of subsidiary which is often referred to in the context of relations between the Federal and State Governments, however can be logically extended to Local Government. Subsidiary suggests that powers and responsibilities should be left with the lowest level of government practicable, meaning greater local input into decision-making while the Federal and State Governments continue to perform those tasks which cannot be performed at a more local level.

Given the significant fiscal imbalance across the three tiers of government, and particularly Local Government, a more realistic approach is the notion of shared responsibility - even if only in targeted areas of interest. The Local Partnerships model proposed by Council is consistent with these principles.

Local Government has been described at the "tier of last resort and first choice" but is caught in a contradiction of having the greatest interest in development of small places but the least capacity amongst the three tiers of government to achieve it. Prof Andrew Beer, Regions Rising Summit April 2019

Council also strongly favours the notion of localism over regionalism. Council sees existing regional institutions as largely ineffective if not counterproductive. The relatively narrow scope of shared interest at a regional scale is often in areas of State and Federal responsibility (such as State controlled roads) and is overshadowed by competitive tensions between "regional" or local interests. Organisations such as Regional Development Australia Committees (RDAs) and Regional Organisations of Councils (ROCs) may have their place but they are disproportionately held up as means of addressing regional issues - which are in effect largely local and should be addressed locally. At worst, these regional structures are forums for "keeping an eye on the neighbours", getting priorities on a “list” and securing part of the funding pie.

Any proposal to establish a “public authority” to manage the “transition” should use and enhance existing government structures. The last thing regions and communities need is another quango or defacto fourth tier of government. Council’s proposed Local Partnerships model seeks to bring together the three tiers of government to focus on regional development outcomes at a local level. It also shifts the discussion from consulting with Local Government to collaborating and partnering with Local Government. Local Governments are also generally well connected with their communities and have tools to support local engagement.

Council considers infrastructure, including community infrastructure, is critical to supporting local jobs and growth.

“Infrastructure is a crucial input into strong, sustainable, long term growth. The right infrastructure can lift incomes, create opportunities, support economic development and help alleviate poverty.” John Fraser, Secretary to the Treasury (Australian Government), 26 February 2016

As noted earlier in this submission, Council has identified a number of industry sectors that present opportunities for investment and growth over the coming decade. Council acknowledges the importance of these sectors and strongly supports continuing development of public and private infrastructure to ensure these industries can grow and related opportunities can be realised. Council is also focused on continuing to plan for and develop essential water and waste infrastructure and services that are crucial to supporting growth and maintaining the health of our community and our environment.

Rockhampton Regional Council Submission September 2019 Page 10 Rockhampton is a regional hub in many respects. Sport, recreation, cultural and community facilities (community infrastructure) not only support our local community and lifestyle but are also enjoyed and provide benefit to the wider region. It is also critical to attracting and retaining people and by direct association the businesses that employ those people. Continuing development and enhancement of these facilities have both social and economic benefits.

Rockhampton has a SEIFA Index of Relative Socioeconomic Disadvantage below State and national averages with 39.1% of the population in the most disadvantaged quartile. Rockhampton has higher rates of people receiving social service payments than Queensland averages. It also has a lower rates of educational attainment in both school and non-school qualifications.

As such, Council believes improved education and training outcomes are fundamental to the region’s future, whether in skilling or re-skilling. Vocational education plays an important role but industry development and jobs growth need to come first and then training delivered to support those industries.

Council also recognises and uses the 70:20:10 model for learning and development where the majority of employee development should be on-the-job experience and learning (experiential). A further 20% is informal learning through the sharing of knowledge and peer to peer interactions. The remaining 10% is via formal training and more structured learning. With this in mind, formal vocational education and training is only part of a more complex system of acquiring skills.

Issue 6 - the use of renewable resources in Northern Australia to build a clean energy export industry to export into Asia Council is not in a position to offer any comment on this issue.

Issue 7 - any related matter As noted earlier in this submission Council has seen it necessary to develop its own in-house economic development capability and capacity. It could be reasonably asked why regional Local Governments are taking a more proactive role in economic development. The answer may lay in the current performance and trajectory of regions and local economies and the apparent inability of State and Federal Governments to facilitate local outcomes that benefit those local economies and communities.

An example of Rockhampton Regional Council taking a more proactive approach to jobs and growth can be seen in its recently launched housing assistance grants. In this initiative Council is providing $5,000 grants to stimulate the construction of new homes in the Rockhampton region. The intent is to ensure there is an adequate supply of housing to accommodate anticipated major projects as well as supporting the region’s depressed residential construction sector.

As suggested earlier, business as usual is no longer acceptable and current policy, practice and investment of governments are failing our communities. This has been one of the drivers of Rockhampton Regional Council’s proposed policies for Local Partnerships, Regional Capitals and Affirmative Action.

Time is of the essence in the current economic climate. Agile, responsive and fit-for-purpose approaches are needed along with a sense of urgency. If the will exists, Council’s proposed Local Partnerships model provide a potential pathway to combine intimate local knowledge with State and Federal Government expertise and resources to rapidly identify local initiatives in parallel with the development and refinement of Regional Capitals and Affirmative Action policies and practices.

Maybe both large and mid-sized private corporations that are increasingly being virtuous (or seeking to be seen to be virtuous) should consider regional Australia as a virtuous cause and contribute to creating jobs and growth outside of their metropolitan enclaves. Such a move might also be in the interests of their customers and shareholders. Qantas' regional pilot training centres are one of very few examples and will be driven more by airspace congestion and business need that by virtue.

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