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Foreign Affairs, Defence and Trade References Committee The Senate Foreign Affairs, Defence and Trade References Committee Impact of Defence training activities and facilities on rural and regional communities Second interim report September 2017 Commonwealth of Australia 2017 ISBN 978-1-76010-649-2 Foreign Affairs, Defence and Trade Committee Department of the Senate PO Box 6100 Parliament House Canberra ACT 2600 Australia Phone: + 61 2 6277 3535 Fax: + 61 2 6277 5818 Email: [email protected] Internet: http://www.aph.gov.au/senate_fadt This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/ Printed by the Senate Printing Unit, Parliament House, Canberra. ii Committee Membership Senator Alex Gallacher, Chair ALP, SA Senator Chris Back, Deputy Chair (until 22 June 2017 and 12 to 14 July 2017) LP, WA Senator Bridget McKenzie, Deputy Chair (from 14 July 2017) NATS, VIC Senator David Fawcett LP, SA Senator Kimberley Kitching ALP, VIC Senator Claire Moore ALP, QLD Senator Jacqui Lambie (from 9 August 2017) JLN, TAS Senator Scott Ludlam (to 14 July 2017) AG, WA Participating members Senator Chris Back (23 June 2017 to 31 July 2017) LP, WA Secretariat Ms Lyn Beverley, Committee Secretary Ms Suzanne O'Neill, Senior Research Officer Ms Margaret Cahill, Research Officer Ms Shannon Ross, Administrative Officer iii iv Table of contents Committee Membership ................................................................................... iii Recommendations .............................................................................................vii Chapter 1.............................................................................................................. 1 Referral ................................................................................................................... 1 Conduct of the inquiry ............................................................................................ 1 Interim report .......................................................................................................... 1 Acknowledgement .................................................................................................. 1 Background ............................................................................................................. 2 Focus of the inquiry ................................................................................................ 6 Defence presence, expenditure and new investment in the region ........................ 7 Chapter 2............................................................................................................ 13 Issues raised with the committee in Rockhampton ............................................. 13 Facilitating opportunities for regional and local business .................................... 13 Mechanisms to enhance engagement ................................................................... 19 Communication about exercises ........................................................................... 24 Communication about proposed expansion of training areas and land acquisition .............................................................................................................................. 25 Further opportunities ............................................................................................ 31 Environmental impacts of Defence activities ....................................................... 35 Other initiatives in the procurement area ............................................................. 37 Chapter 3............................................................................................................ 41 Issues raised with the committee in Townsville ................................................... 41 Facilitating opportunities for regional and local business .................................... 41 Communication mechanisms................................................................................ 52 Expansion of training areas and land acquisition ................................................. 55 The need for more transparency regarding regional engagement ........................ 58 Environmental impact of Defence activities ........................................................ 59 Chapter 4............................................................................................................ 61 Conclusion and recommendations ........................................................................ 61 Appendix 1 ......................................................................................................... 67 Submissions ............................................................................................................. 67 Appendix 2 ......................................................................................................... 69 Public hearings and witnesses ............................................................................... 69 Wednesday 12 July 2017 Rockhampton .............................................................. 69 Friday 14 July 2017 Townsville ........................................................................... 71 vi Recommendations Recommendation 1 4.8 The committee recommends that, in consultation with the local councils, Defence review its mechanisms for communication and coordination in the Fitzroy and Townsville regions to ensure the most effective flow of information including plans which may generate potential business opportunities. Recommendation 2 4.10 The committee recommends that Defence make information available to local communities about Defence expenditure in the area. Recommendation 3 4.13 The committee recommends that Defence commission an independent economic impact assessment of the loss of rateable land which would result from the proposed expansions in these areas. Recommendation 4 4.22 The committee recommends that Defence review its formal mechanisms for communication and coordination in the areas around the Shoalwater Bay Training Area to ensure that: • as much information about upcoming training exercises is being disseminated to the local community with as much advance notice as possible; and • that a contact point regarding local exercises is available on an ongoing basis and this this information is disseminated regularly. vii viii Chapter 1 Referral 1.1 On 8 February 2017 the Senate referred the following matter to the Senate Foreign Affairs, Defence and Trade References Committee for inquiry and report by 30 November 2017: The impact of Defence training activities and facilities on rural and regional communities, with particular reference to: a. economic, social and environmental impacts; b. consultation and communication with local government and community organisations; c. investments in new facilities, infrastructure and operations; d. utilisation of local suppliers and service providers to achieve value for money; e. encouraging awareness of tendering opportunities for rural and regional businesses; and f. any other related matters.1 Conduct of the inquiry 1.2 Details of the inquiry were placed on the committee's website at: http://www.aph.gov.au/senate_fadt. The committee also contacted a number of relevant individuals and organisations to notify them of the inquiry and invite submissions by 28 April 2017. Submissions received are listed at Appendix 1. Interim report 1.3 The committee tabled an interim report on 14 August 2017 which focussed on the evidence it received at a public hearing in Port Augusta on 8 June 2017. 1.4 On 12 July and 14 July 2017 the committee held public hearings in Rockhampton and Townsville, Queensland, respectively. A list of witnesses who gave evidence is available at Appendix 2.2 The committee has decided to table an interim report which focuses the evidence received in Rockhampton and Townsville. 1.5 Submissions and the Hansard transcript of evidence may be accessed through the committee website. Acknowledgement 1.6 The committee thanks the organisations and individuals who participated in the public hearings in Rockhampton and Townsville as well as those that made written submissions. 1 Journals of the Senate, No 25—8 February 2017, pp 852-853. 2 Note: The committee has also held additional hearings in Darwin on 22 August 2017 and Katherine on 23 August 2017. These hearings will be covered in an upcoming report. 2 Background 2016 Defence White Paper 1.7 The committee's first interim report covers the policy framework. Briefly, the 2016 Defence White Paper (White Paper) indicates that a number of Australian Defence Force (ADF) training areas in northern Australia will receive upgrades by 2020, including Shoalwater Bay along with a range of ADF bases including Lavarack Barracks in Townsville.3 As noted in that report, the White Paper sets out the government's increase in Defence funding by $29.9 billion over the period to 2025-26 and enabling investment of $195 billion in Defence capabilities over 10 years.4 1.8 The proposed investment projects outlined in the White Paper in the Townsville and Rockhampton regions are as follows: • Upgrades at Lavarack Barracks to support new and upgraded land combat and amphibious warfare capabilities, representing an investment over the next decade of about $50 million. (An additional $550 million planned from 2025/26 out to 2035/36). • Updating facilities at RAAF Base Townsville over the next
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