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BULLOO SHIRE COUNCIL SUBMISSION to the SENATE ECONOMICS REFERENCES COMMITTEE [email protected]

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BULLOO SHIRE COUNCIL SUBMISSION to the SENATE ECONOMICS REFERENCES COMMITTEE Economics.Sen@Aph.Gov.Au BULLOO SHIRE COUNCIL SUBMISSION TO THE SENATE ECONOMICS REFERENCES COMMITTEE [email protected] RESPONSE BY MAYOR JOHN FERGUSON ON BEHALF OF THE BULLOO SHIRE CONTACT DETAILS [email protected] Phone: 0746218000 Attention Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House CANBERRA ACT 2600 Submission Senate Economics References Committee Indicators of, and Impact of Regional Inequality in Australia May 2018 1 25 May 2018 Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House CANBERRA ACT 2600 Dear Mark Fitt, Inquiry into the indicators of, and impact of, regional inequality in Australia I am writing on behalf of the Bulloo Shire Council with a brief submission to the Inquiry into the indicators of, and impact of, regional inequality in Australia. Please see below an introduction to our Shire followed by individual responses to the questions. About the Bulloo Shire Council The Bulloo Shire is the third largest Shire in Queensland and includes the towns of Thargomindah, Hungerford, Noccundra, and Cameron Corner. Thargomindah is the hub of the Bulloo Shire and lies on the Bulloo River, approximately 1000 km due west from Brisbane along the Adventure Way. It has 3 other townships Hungerford, Noccundra and Cameron Corner, where the 3 States of Qld, NSW and SA meet. The main industries are Agriculture, resources, tourism and government services. http://www.visitbulloo.com.au/ 1. Experiences of individuals and localities of unequal access to opportunities and unequal outcomes in non-metropolitan areas The Bulloo as a remote outback town is presented with additional barriers, long recognised in many reports and studies, and they are summarized below: • Low levels of population retention • Remoteness and accessibility • High air fare costs for the one public transport offering - air • High construction costs translating into limited development • Land access is constrained to either landholders or small townships • Access to affordable housing due to low lending ratios • Low levels of advanced technologies and lack of technology • Volatility due to climate change and reliance on mining and agriculture • Tourists are ‘put off’ by the perception that all road networks are unsealed as well as the considerable driving distances between towns These issues constrain development opportunities and also limit local home ownership. The Council is a major employer and provides considerable housing and this also considers to a low home ownership statistic. For those that can afford to buy, bank lending ratios are also very low (40:60) so considerable amounts of capital are required for purchasing even small and inexpensive homes. Submission Senate Economics References Committee Indicators of, and Impact of Regional Inequality in Australia May 2018 2 The corporate nature of the Council employee/employer relationship also translates into low levels of entrepreneurship and risk taking especially in relation to business start-ups. 2. Views on the causes of inequality between regions, especially between capital cities and other areas The main causes of the Bulloo Shire Council’s inequality compared to metro areas are: • our remoteness • high costs of living, construction and development • Cyclical dominance of agricultural and mining sectors 3. Analysis of the economics of regional inequality, including wider impacts Whilst the main barrier to development is remoteness, isolation of the townships and access to our region, these have a negative effect on other major sectors such as employment (low levels of staff retention); access to skilled workforce; business & investment attraction; high travel costs; cost of living in general; access to specialized medical services and more. 3.1 Transport Road Funding is critical for all State roads to improve economic viability, tourism and lifestyle. This investment is multi-dimensional and both Industry and Tourism need good roads to connect our many Queensland attractions that are spread across both the Outback and the State. Currently the Queensland growth corridors are coastal and this directs significant amounts of funding to these areas. Whilst that is important, equitable funding should be considered, not only to improve economic viability, communication and connection for smaller communities. It should also be acknowledged that civil construction is a major employment activity for many small and remote councils so that this underpins employment and local spend. 3.2 Commonwealth Funding Ndrra Flood funding (Climate Change) The Commonwealth changes to the method of funding road damage under the Ndrra flood program have been greatly welcomed throughout Queensland as it now allows Council day labour workforces to participate and plant to be used for restoration works. Road making is still a critical activity for the Council and employs 50% of the workforce.There is a need for the same approach for drought through an ‘exceptional circumstances’ assessment process as in times of pro-longed drought the roads break up just as significantly however due to a lack of water and over a longer period of time. Commonwealth Drought Support and Relief programs have been a critical success factor during the 2014 – 2019 and have allowed many landholders to remain on properties building resilience. 2017/18 has been an exceptionally dry year, unlike many of our other Queensland counterparts and given the short good season in 2016, local landholders have remained in maintenance mode rather than building self-reliance. This is because environmentally whilst many areas may have experienced one or two good seasons, the climate has meant that this has been followed by significant drought. It must be acknowledged that resilience building is a Submission Senate Economics References Committee Indicators of, and Impact of Regional Inequality in Australia May 2018 3 slow process and thus this takes time. Currently exceptional circumstance support is still required to help maintain communities and populations. These programs also highlight the importance of the consideration of a national climate change policy position at the Federal Level. This would then allow more strategic alignment (and assistance) for Local Government. Intergovernmental Financial Assistance Grants Commonwealth Financial Assistance to Local Government – A detailed review of the National Principles governing the distribution of the Commonwealth Financial Assistance Grants was endorsed at the 2017 conference especially in relation to those small and remote councils that are heavily reliant on subsidy and support. The Commonwealth’s grant programs need to be reviewed to ensure that smaller areas are able to access funds such as the Regional Growth Fund. This $10m grant (50:50 subsidy) was out of the reach of many Councils including ours, however we are just as in need of economic growth support to create jobs. Continued funding for significant economic development projects, such as the Thargomindah Geothermal Project, is vital. It is also important to highlight that prospectus development needs to be supported to allow remote Councils to bring more projects to market. 3.3 Health Services There is still more opportunity for funding and telehealth in rural and remote and we highlight the success of initiatives such as the “Heart of Australia’ to provide specialist services on a rotational basis to rural communities. This is a wonderful and innovative solution and should be supported and the model replicated for all specialist and allied health services. Currently the RFDS provides an excellent service in Thargomindah however this is a fly in fly out service at great cost to the Commonwealth. We would like to see skills built at the local level so that local communities such as ours could work towards a sustainable model. We raise that subsidies for transport and travelling costs in relation to community care programs should also be reviewed to ensure equity as travel is an inevitable part of the remote lifestyle. Age care accommodation options needs to be considered as our communities age. Technology and robotics could add significant value to the construction costs of these types of options and more research and experimentation should be done in this domain. The Bulloo Shire still has a volunteer ambulance officer model, this is not safe and should be reviewed. Submission Senate Economics References Committee Indicators of, and Impact of Regional Inequality in Australia May 2018 4 3.4 Communication Connectivity is still an issue in remote areas such as ours as the majority of the landholders only have satellite access. Given the contribution to both State and National GDP additional options through Telstra should be canvassed. The Federal Government pays significant sums to providers such as Telstra under their Universal obligations policy. This should be better directed at filling the infrastructure gap and exploring technological innovations to establish low cost and high quality options. There may also be radio technology that can be supported to fill the gap in communication requirements, supplementing expensive satellite communications and allowing businesses to have multiple options for different data sets. 3.5 Tourism The economic benefits of tourism to remote communities are very significant however much of the tourism product is either under developed or only in the early stages. Commonwealth investment in development packaging would be instrumental in fostering and growing
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