Torres Cape Indigenous Council Alliance Inc.

16 January 2020

Select Committee on the Effectiveness of the Australian Government's Northern Agenda Department of the Senate PO Box 6100 Parliament House CANBERRA ACT 2600

Dear Committee

Thank you for the opportunity to provide this submission to the Select Committee's inquiry into the effectiveness of the objectives, design, implementation and evaluation of the Australian Government's Northern Australia agenda.

TCICA is a membership-based alliance of local governing authorities from the Torres Strait, Cape York and Gulf region of Far North . We operate as a collaborative partnership to represent the common interests of local governing bodies in the region. Our members are committed to working together with the State and Federal Governments to help shape place-based responses and solutions to the challenges and opportunities in front of us.

12 of Queensland's 17 Indigenous local governments are members of TCICA, representing one of the largest formal and regular gatherings of Indigenous Mayors across the country. The calibre of Indigenous leadership in our organisation and our commitment to collaboration is second to none. Our ability to effectively engage with the Australian and Queensland Governments means they have the confidence to partner with us on the development of a range of policies and programs impacting our region.

Our members are: Aurukun Shire Council; Cook Shire Council; Hope Vale Aboriginal Shire Council; Kowanyama Aboriginal Shire Council; Lockhart River Aboriginal Shire Council; Mapoon Aboriginal Shire Council; Mornington Shire Council; Napranum Aboriginal Shire Council; Northern Peninsula Area Regional Council; Pormpuraaw Aboriginal Shire Council; Torres Shire Council; Torres Strait Island Regional Council; Town Authority; and Aboriginal Shire Council.

Our region encompasses 13 per cent of the total land area of Queensland and is home to 0.6 per cent of Queensland's total population, or around 28,000 residents. More than 65 per cent of people living in our region are Aboriginal or Torres Strait Islander peoples, compared to 4

Torres Cape Indigenous Council Alliance (TCICA) Inc. 225a Sheridan Street, Qld 4870 E: [email protected] P: 07 4050 1808 TCICA.com.au 2• Page

per cent for the whole of Queensland. Our entire region is classified as Remote or Very Remote Australia and 71.1 per cent of people are in the most disadvantaged quintile for relative socio-economic disadvantage. Our region generates around $1.4 billion in gross regional product each year, driven by industries including mining, agriculture, and public administration. As one of Australia's last real frontiers, tourism is a growth industry.

General comments

The Commonwealth's Northern Australia agenda has generated considerable expectation around the potential of Australia's north to drive economic growth and prosperity for the nation. Significant investments to date in strategic road and water infrastructure projects through programs like the Northern Australia Roads Program and the National Water Infrastructure Development Fund, along with a focus on collaborative research and knowledge building are welcomed and will no doubt help deliver benefits for the north.

While investments in infrastructure are extremely important, these alone will not not create a foundation for addressing broader regional disadvantage, particularly for remote and Indigenous communities. Overcoming the social disadvantage faced by many Aboriginal and Torres Strait Islander people living in remote communities must be front and centre if Northern Australia is to come close to realising its true potential. Lack of community infrastructure, housing shortages, poor regional connectivity, limited access to digital technologies, few business and employment opportunities, and poor access to health and education services all contribute to the social disadvantage faced by people in remote and Indigenous communities every single day.

The Northern Australia Strategic Partnership and Ministerial Forum on Northern Development (MFND) have to play a greater role in driving outcomes for remote Indigenous communities in the north, including through direct engagement with local governments. The current governance model for Northern Australia is not consultative and operates in isolation from major stakeholders in the region. Effort should be directed towards bringing TCICA into the Northern Australia development agenda so that our organisation as a whole can provide greater input and advice directly to the MFND on the development of our region.

Response to the Terms of Reference

Facilitation of public and private investment in infrastructure and economic development

As mentioned above, initiatives specific to Northern Australia that support investments in infrastructure like roads, dams, digital communication networks and renewable energy projects will help address infrastructure deficits across Northern Australia. But apart from these specific initiatives, there is little more than a business-as-usual approach to infrastructure and economic development in the north. Programs including the Building Better Regions Fund, Remote Airstrip Upgrade Program and the National Water Infrastructure Development Fund are held up as programs facilitating the development of the north, yet the funds are spread nation-wide. Northern Australia will not overcome its disadvantage if it has to continue to directly compete with the southern states for funding.

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The Australian Government must prioritise northern Australia infrastructure to overcome . service standard challenges, irrespective of the diseconomies resulting from the small scale of markets. The north will not grow in any meaningful way unless governments invest in nation building and transformative infrastructure now and recognise that the benefits will accrue long into the future. The Australian Government cannot expect the private sector to take responsibility for addressing gaps in public infrastructure like roads, ports and marine infra~tructure, energy networks, water storage facilities and telecommunications networks.

The 2015 Northern Australia Audit provided a good overview of critical infrastructure needs across the north although it did not consider the infrastructure needs of remote centres with small populations and limited economic activity. There is no indication that the Australian Government is focussing effort towards addressing these infrastructure gaps as part of its agenda.

The Northern Australia Infrastructure Facility (NAIF) has not been effective in securing private sector investment in Northern Australia, despite the widening of its investment mandate to incorporate social infrastructure, the relatively broad risk appetite of the NAIF, its concessional loan terms and its ongoing efforts to engage with potential proponents. As a proponent-led organisation, this likely reflects the lack of viable, large-scale, private sector projects planned for the north. Metro Mining's $47.5 million NAIF loan facility is the only known project NAIF has agreed to finance in Cape York, the Torres Strait and Gulf region.

A real gap inhibiting infrastructure investment is the lack of funding available for feasibility studies and business cases, particularly for projects in remote regions, and the significant costs associated with regulatory compliance (for example, the Environment Protection and Biodiversity Conservation Act 1999). Lack of policy alignment between the Australian and Queensland Governments is also limiting the full scope of investment opportunity.

Complex Native Title and land tenure arrangements can often be seen as a barrier to development. Conflicting interests amongst Traditional Owners and the limited organisational capacity and resourcing of many registered native title bodies corporate (RNTBC) to manage their affairs or carry out their responsibilities can lead to a loss of investor confidence. These issues also tend to result in drawn out and complex negotiations, sometimes with onerous conditions, and may impact on the viability of projects. Similarly, native title can challenge the ability of some Indigenous local governments to deliver much needed public infrastructure such as social housing and community services where they are forced to compete with another legally-recognised Indigenous governance arrangement. Local governments have a statutory requirement to provide essential infrastructure which benefits the whole community and be able to deliver services amicably without external native title divisions. Ongoing support to build the capacity and resourcing of RNTBCs is critical if the aim of tenure resolution is to deliver equitable economic, social and cultural benefits to communities.

While there are many great ideas for innovative new businesses, access to seed funding for business start-ups in remote areas is virtually non-existent and is stifling economic growth and job opportunities. Initiatives like the Indigenous Business Sector Strategy and Indigenous Business Australia can help improve outcomes in regional cities but are limited in focus when it comes to facilitating business opportunities locally in remote areas. They also rely on potential business operators first knowing where to find help, which is often the challenge for people in remote communities with limited or even no access to digital technologies.

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Funding is needed to support local delivery of business support services aimed at new business start-ups and growing businesses in remote and Indigenous communities through opportunities to leverage public sector investments. This may include embedding business development facilitators within local governments, or developing local business hubs that have direct links to local governments, as we are very often the largest employers in remote regions. The design of such hubs must be done with the local community to ensure that they understand the needs of local people and are appropriate to the local business environment, and that all existing support mechanisms are effectively leveraged.

Funding is also needed to support business cases for small-scale business opportunities to help evaluate innovative new ideas and attract commercial financing .

Economic and social benefit arising from that investment for Northern Australia, in particular First Nations people

The absence of any real focus in the Northern Australia White Paper on addressing the social disadvantage faced by remote and Indigenous communities means there are no discernible benefits arising from specific investments to date. There is however strong potential to deliver economic and social benefits through investments where remote and Indigenous local governments and local communities themselves play a key role in infrastructure delivery.

Indigenous procurement policies are helping to drive this change, although more focus on supporting Indigenous-owned businesses to access tendering opportunities for large-scale infrastructure projects in their local area is needed. The practice of 'Black cladding' need to stop if local people are to benefit from government investments through business development opportunities, supply and servicing arrangements, and employment and training. Indigenous Employment Opportunities Plans should form part of all government-funded projects and should require commitments to over 50 per cent Indigenous employment outcomes.

Stage One of the Cape York Regional Package, a five-year $260.5 million program of works jointly funded by the Australian and Queensland Governments to upgrade critical infrastructure in Cape York, created employment and training opportunities for over 100 local Indigenous people and during various stages supported up to 30 Indigenous businesses or joint ventures. TCICA members in Cape York will again facilitate the delivery of nearly $50 million worth of projects under the second stage of the package. This is money that will largely stay in the region through contracts delivered by Indigenous owned or led businesses, or councils delivering the projects themselves.

Investments in remote Indigenous housing under the previous National Partnership on Remote Housing resulted in 850 jobs for Indigenous people in Queensland. 87 per cent of people employed on projects funded under the program were Indigenous, far exceeding the target of 20 per cent set by the Commonwealth. TCICA members themselves delivered more than 80 per cent of housing construction projects.

Tripartite agreements like Regional Deals have the potential to deliver genuine, long term economic and social benefits for communities and should become a key feature of the Northern Development agenda, particularly where Indigenous local governments are involved.

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Funding models and policy measures that capture the full value of existing and emerging industries

The costs of doing business in remote regions is a major inhibitor to economic growth. Rising costs of electricity, insurance and freight make it very challenging for businesses to be competitive, or to encourage competition to enter the market.

In the case of freight, coastal shipping is the only supply link for general cargo and heavy freight including fuels, machinery and business construction materials for island communities in the Torres Strait and Mornington Shire in the . Many other communities in our region also rely on regular coastal shipping services for general cargo and fresh produce. During the wet season when roads are impassable for months at a time, there is no viable alternative to shipping. The lack of competition in intrastate shipping in the Torres Strait, Cape and Gulf region, and limited backhaul opportunities, contributes significantly to the operational costs for businesses and local governments alike.

Policies and programs are needed to drive down these costs for businesses and industries to help them become more sustainable and to encourage competition and innovation. Communities in our region have been raising the issue of freight subsidies for many years as a way to reduce costs, particularly for island communities such as those in the Torres Strait and . A scheme like the Tasmanian Freight Equalisation Scheme, which helps to reduce the cost of transporting goods by sea, would not only help to address high living costs, but would open our region to greater development and market opportunities.

A key area of opportunity is the progressive sealing of the Peninsula Development Road (PDR), which will increase road freight movements and bring thousands more tourists into the region. The ports at Weipa and Seisia at the tip of Cape York, will become strategically important in the supply chain between the Cape and Torres Strait, with sea freight movements and passengers expected to increase between Weipa and Seisia and the main islands in the Torres Strait. There are also export opportunities out of the port of Wei pa including cattle, timber and other agricultural products. Whilst intrastate shipping has been traditionally north to south, 'shipping highways' for commodities and cargo could help facilitate northern development through the expansion of marine precincts and new processing facilities for direct . export to international markets.

Another area of opportunity is the international shipping lane that traverses the Torres Strait. Port expansions at strategic locations in the Torres Strait could help to deliver economic benefits through opportunities such as marine servicing and sustainment. With around 3000 shipping movements through the Torres Strait each year, capturing the benefits would be significant in a region where shipping is seen as a lifeblood. It should be noted that the Torres Strait has a history as a trading port for ships traveling to and from India and Asia, as well as a stop-over point for mail and supplies. The establishment and growth of was driven by the international shipping industry, so its potential as a strategic port should not be overlooked.

Consideration should be given to policy measures that ensure critical infrastructure is in place to support efficient supply chains, increased passenger movements and greater economic activity in the region as a result of the sealing of the PDR, and the potential of marine industry development in the Torres Strait region to provide services to foreign flagged vessels using the international shipping lane.

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Measures to develop an appropriately skilled workforce

People living in remote and Indigenous communities are at a significant disadvantage in terms of being able to access education, training and employment opportunities, particularly where there are no permanent or long term jobs available once training has been completed. There are no apparent measures within the Northern Australia agenda specifically aimed at developing the skills of Aboriginal and Torres Strait Islanders living in remote communities, although it is noted that Indigenous Procurement Policies are helping to drive Indigenous employment and supplier use.

Tourism is a key industry for potential growth across the Cape York, Torres Strait and Gulf region, driven by a demand for authentic cultural and nature-based experiences. The 's designation of 2020 as the Year of Indigenous Tourism is positive recognition of the role tourism plays in Indigenous economic development and wellbeing. It also recognises the importance of showcasing and protecting our ancient Indigenous traditions through genuine engagement by visitors with our thriving Indigenous cultures.

While there are many opportunities to develop high-end tourism products and experiences, they will not be fully captured until programs focussed on building the skills and capacity of local people are embedded in communities. As noted above, programs and policies that bring local governments to the table as key delivery partners have the potential to develop skilled workforces in communities that can lead on to opportunities for private sector business development.

Emerging national and international trends and their impact on Northern Australia

The TCICA is currently developing a strategic opportunities plan for the Cape, Torres Strait and Gulf region which will help define our place in the nation and the key role we can play in the economic prosperity of the north. The plan will outline the key challenges, transformational strategies and priority actions to shape our region into one of Australia's most recognisable, sustainable an'd economically-diverse regions.

The plan is expected to identify strategies for regional development and economic diversification as a result of investments in projects and industry development, as well as opportunities to leverage new and emerging technologies, domestic and global trends.

The TCICA looks forward to the opportunity to participate in the public-hearings process to discuss our submission with members of the Senate Select Committee. We strongly encourage the Committee to consider holding public hearings in remote regions in Far , which may include Cooktown, Weipa and Thursday Island, with potential travel to surrounding Indigenous communities. This would certainly help the Committee to understand the challenges faced by remote and Indigenous communities as well as the opportunities to further develop our part of Northern Australia.

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If your office requires any further information, please contact TCICA's Executive Officer Melinda Eades

Yours sincerely

Chair

NOTE: The TC/CA shares some members with the Regional Organisation of Councils, therefore it is recommended that this submission be read in conjunction with theirs.

TCICA.com.au