Central SUBMISSION 22 Darling Shire Vast lands. Rich heritage. Diverse culture. 23rd March 2009 House Standing Committee on Infrastructure, Transport, Regional Development and Local Government House of Representatives Parliament House CANBERRA ACT 2600 Dear Committee members, Inquiry into the impact of the global financial crisis on regional Australia Central Darling Shire is particularly interested in providing input to your inquiry, given that the GFC is beginning to impact significantly on our economy. Our discussions with local councils in other remote regions suggest we are not alone. We would like to highlight some of the steps we are taking to advance our economic and social standing, and how the Commonwealth Government might improve our efforts to respond to the GFC and other economic and social shocks in the future. We also wish to invite your Committee to visit us, so that you can understand the issues first- hand. Background The Central Darling Shire is located in the Far West of NSW. The shire is the largest in the state, but with a population of only 2,000 or thereabouts, of which 50 per cent are Indigenous. Its distinguishing features are the Darling River and the Menindee Lakes, and four towns that are the quintessential Outback. Most Australians can relate to these places even if they haven't visited - Wilcannia (administrative centre), Menindee (horticultural crops), White Cliffs (opal mining) and Ivanhoe (Indian Pacific rail stop and rural service centre). Economic, social and environmental hardship is not new to us - the shire has been drought declared for over 8 years, river flows are irregular, the population is ageing, job creation is minimal and there is chronic unemployment, especially among the Indigenous population. The GFC is expected to exacerbate these problems by decreasing overall economic activity, restricting tourism numbers, tightening access to start-up business capital and making it even harder for our youth to find jobs in the region. Despite these difficulties, the community spirit is strong, and there is a sense of resilience in the face of adversity. What we wish to emphasise in this submission is the real opportunity for the Commonwealth Government is to become a partner with local and state government, as well as the private sector, in a collaborative regional recovery model. It comprises economic and social aspects that will ameliorate the negative aspects of the GFC. The opportunity is explained below. SUBMISSION 22 A. Economic development issues facing remote regions The collaborative regional recovery model that we have been developing is premised on identifying investment opportunities that build on our competitive advantages and provide triggers for further investments and jobs. As part of this process, we are keen to identify collaborative partners at the federal and state level that can share the cost of public infrastructure associated with these investments. Outlined below are two such investments and associated infrastructure requirements. They offer substantial promise to lift the local economy onto a higher plane and avoid the worst effects of the GFC. The first has stalled, while the other is still in the planning stage. Wilcannia Crossroads Project This project has been with the federal authorities for over two years. It initially sought approx. $2.0 million under the Regional Partnerships Program for an upgrade and refit of the former Post Office building. The proposal is for this iconic sandstone building to become a best practice enterprise hub and major tourist stop-over between Broken Hill and Cobar, and thus provide a trigger for the town's regeneration. It would show to the town, the region and to Australia that Wilcannia has a future. The components would include the Post Office, a one-stop-shop for federal and state program delivery, slow food and coffee-shop, a studio and sales outlet for Indigenous arts and crafts from across the region, Caravan Park, and the start point for heritage and cultural trails. The reason why this project cannot contribute to addressing the economic downturn is that its significant public interest components have not achieved traction with the relevant Commonwealth agencies. The specific shortcomings are: • Its inability to adopt a whole of government approach to this project, notwithstanding the fact that it has the total support of the local Indigenous community. " The ongoing delays, including the lack any regional development funding for two years. • The inability of federal agencies (Innovation, RET, FAHCSIA, Austrade) to engage with us due to distance factors and a possible perception that the project is too small or risky. Menindee Interpretative Centre The second example is a proposed quality tourism and education interpretive centre at Menindee. The aim of this project is to educate Australian and overseas visitors about the riverine ecology, and the Indigenous archaeology and heritage of the Menindee Lakes and wider region. It would be a sister development to the Wilcannia Crossroads project due to its eco-tourism spin-offs and its focus on job creation and career paths for the local youths. This project will have difficulty getting past the planning stage because of the modus operandi of the federal government, specifically: • The absence of any regional development or other funding capable of recognising the multi-layered public benefits of the project i.e. indigenous investment and jobs, tourism infrastructure, environmental and heritage education, small town planning. B The lack of collaboration between federal agencies, which means we have to adopt a piecemeal approach to formulating a shared funding package. The need to then negotiate with state agencies, as well as the distance factor, are added complications. Proposed Solutions We believe that the only realistic way to progress both these projects is for the key federal agencies to agree to use the region as a pilot for a best practice regional funding model, and to then convene workshops in the respective towns. This would allow for the key federal and state officials to conduct a site inspection and to then get involved in serious negotiations around the Please address all correspondence to: The General Manager PO Box 165 WILCANNIA NSW 2836 Phone: (08) 8083 8900 Fax: (08) 8091 5994 www.centraldarling.nsw.gov.au SUBMISSION 22 3 table on how collaboration could realise these priority projects. Given our recent experience, we believe that strong Ministerial or political pressure is required for this to happen - hence our raising it with the Standing Committee. B. Social development issues facing remote regions The Central Darling Shire is the second most disadvantaged local government area in NSW1, according to the ABS. As touched on earlier, the townships of Central Darling Shire have good community spirit - despite a chronic lack of employment opportunities, poor community health, low educational attainment and a lack of access to services. Community members are frustrated by their immersion within a cycle of disadvantage. They want to see change, because without change they know they will continue to experience disadvantage. The reality is that addressing the cycle of disadvantage is such a complex task that no single service can make a measurable impact on the wellbeing of the communities. A localised and coordinated approach by the three levels of government. To this end, Council recently finalised a major report2 based on research conducted in association with Charles Sturt University. It documents an analysis of the delivery of human services programs in the Central Darling Shire. The study found that 46 organisations deliver services to the communities within the shire, and that around 70% of this funding is committed to education and training. Despite this activity, there is no evidence that lasting progress is being made. Why is this? The most alarming finding of the research is that of 'remote control'. This phrase was used by local Indigenous leaders at the Wilcannia Education and Employment Forum in July 2008. It captures the feelings of locals that they have lost control of their lives. The view put to the Forum was that most decisions regarding the community are made without consulting the community, and are then managed by people who do not live in the community. Remote Control is an inherent part of out-reach service delivery. A related finding was that the current system of service delivery operates in ad hoc fashion. There is little coordination between agencies, because many of the programs are delivered by remote control. As a result, the service deliverers cannot fully grasp the nature of the local circumstances, and the problem is compounded by Indigenous services being coordinated from Dubbo, a considerable distance away. Human services are also delivered with little recognition of their relationship to social capital and the local infrastructure. Finally, there is no leadership or local coordination point. Proposed Solutions The Remote Communities report (copies attached) suggest solutions directly relevant to your Inquiry because it offers a more effective means of assisting those that become the victims of the GFC. The relevant recommendations are: • The appointment of a Regional Human Services Coordinator, co-located with service providers at the Cross Roads in Wilcannia (refer related project above). This person will provide much needed leadership and coordination, and reduce the delays between community consultation and program delivery. 1 Australian Bureau of Statistics - Preliminary Index of Relative Socio-economic Advantage and Disadvantage, ABS 2006. 2 Remote Control Communities - action agendas to improve the delivery of human services in Central Darling Shire (March 2009). Please address all correspondence to: The General Manager PO Box 165 WILCANNIA NSW 2836 Phone: (08) 8083 8900 Fax: (08) 8091 5994 www.centraldarling.nsw.gov.au SUBMISSION 22 • The Regional Human Services Coordinator should convene twice-yearly Agency Coordination Workshops. These should be fine-tuned for implementation in other remote Shires. • Funding programs delivered in the Shire should be a minimum of three to five years.