4.1
A consistent concern raised during the inquiry was the limitations imposed on growing regional communities by sub-optimal access to both physical and digital infrastructure. This was particularly heightened during the COVID-19 pandemic when online connectivity became essential for schooling, work and services.
4.2
Even this inquiry was constrained by the poor telephone and internet connectivity in some regions. As travel was restricted, the Committee had no choice but to cancel its planned travel and hold hearings by tele- and videoconference. The Committee was frustrated by this because its preference is always to be in regional towns talking to people in person. However, it did give the Committee an opportunity to experience the frustration that regional residents feel when their work is interrupted by unreliable telephone and internet services as many public hearings were affected by the same issues.
4.3
Connectivity and infrastructure are critical drivers of regional development:
Connectivity and infrastructure can help provide the critical links between regional locations and the markets that sustain regional communities and help facilitate strong regional economies. This includes key transport links to connect communities and help people get home sooner and safer, efficient freight links and supply chains to help our regional industries and businesses to reach markets and be competitive, and digital technology to support communication, education, service delivery and business.
4.4
The RDA Limestone Coast concurred that the provision of infrastructure is fundamental to regional development:
Infrastructure is the foundations and resources that underlay the movement of ideas, data and information, energy, people and goods and services in a regional economy. This includes the traditional physical infrastructure but also social and environmental infrastructure and technology, along with wider knowledge infrastructure where they contribute to tapping into unrealised economic development.
4.5
Some inquiry participants highlighted the importance of infrastructure to an entire region. Regional Cities Victoria stated that reductions in grant funds had adversely affected cities’ ability to deliver community infrastructure, which affects not only local community members but also the people residing in the surrounding rural councils and shires.
4.6
RDA Barwon South West also noted disparities in connectivity throughout its region and its flow-on effects:
A significant factor influencing the region’s competitive advantage is digital access, affordability and capability barriers that are limiting businesses and communities being included in the digital economy. There are also significant differences in the access and service offerings for digital connectivity across the BSW region.
4.7
RDA Limestone Coast cited the importance of infrastructure in unlocking investment opportunities and suggested the:
Government should have a particular focus on enabling infrastructure that will unlock private investment and stimulate industry and business growth.
4.8
Tumut Regional Council pointed out the disparity in unemployment, average income and active businesses in Tumut and Yass, attributing the better outcomes in Yass to investment in road infrastructure between Canberra and Yass. Like Yass, the Tumut region has much to offer as a ‘dormitory town’ for Canberra workers, but lacks the road infrastructure to make this an attractive option.
4.9
The East Gippsland Shire Council noted the role of access to water, energy, transport and telecommunications as key enablers of development. RDA Barwon South West also noted the role played by digital connectivity in transforming regional economies:
A significant factor influencing the region’s competitive advantage is digital access, affordability and capability barriers that are limiting businesses and communities being included in the digital economy. There are also significant differences in the access and service offerings for digital connectivity across the [Barton South West] region.
4.10
In a similar vein, RDA Logan and Redlands emphasised the importance of inter-regional connectivity in fostering development:
Regions need to be accessible and connected. The challenges are many but in order to provide opportunities for driving economic development there is a need to ensure that our population has the means to traverse the region from wherever they dwell, be it satellite cities, inner city or coastal.
4.11
The Country Women’s Association of Australia spoke of the importance of technology in attracting business to regional areas and realising its attendant benefits:
Also, being able to provide access to technological improvements in relation to agricultural and other businesses that are located rurally or who want to relocate rurally, would be a big advantage in actually attracting more people to smaller communities, which should … broaden their economic base.
4.12
In addition to fostering economic development, infrastructure is also important for the delivery of services as noted by the Queensland Nurses & Midwives’ Union (QNMU):
The QNMU suggests that fundamental requirements for any new regional infrastructure should include high-quality physical, digital and social infrastructures, including public services such as a transport network. Inadequate transport networks restrict labour mobility, impede commerce and exacerbate the urban–rural divide.
4.13
Regional Capitals Australia submitted that investment in both transport and digital infrastructure can alleviate the additional costs associated with remoteness:
Connectivity through the regularity of plane services, faster rail, high-speed broadband and mobile access is key to overcoming the tyranny of distance. Efficiency and effectiveness across connectivity measures will enable regions to be brought closer - closing the digital divide and increasing productivity. To maximise the potential of regional capital cities, connectivity across physical and digital infrastructure needs to be prioritised for investment.
4.14
Frustration with the lack of infrastructure in regional Australia was also expressed by respondents to the survey of regional Australians undertaken by the Committee:
Lack of general infrastructure that you take for granted in the suburbs—water, electricity, sewerage, internet.
Great people, but second class infrastructure
Lack of infrastructure, particularly communications
Benefits include quality of life. The challenges include lack of infrastructure including good roads, dams, affordable electricity for irrigation.
4.15
Respondents to the Committee’s second survey of Australians living in metropolitan areas expressed concerns about inferior infrastructure, which appears to be a disincentive to move to regional Australia:
I have absolutely no desire to live in regional towns, transport is not efficient enough to allow me to enjoy football and live music, and infrastructure is too poor for anything else.
Until there is better (read functioning) infrastructure such as rail link and RELIABLE internet service I cannot move to my preferred rural area.
Box 4.1: International example: Oresund cross-border infrastructure collaboration
The Oresund cross-border area of over 21 000 square kilometre hosts a 20 kilometre bridge and tunnel connecting Copenhagen and the Zealand Regions of Denmark with Skane, the southernmost county of Sweden. At the core of the Oresund is the link between Copenhagen and Malmo.
The rationale for the establishment of the Oresund was the achievement of greater critical mass. This can create economies of scale through larger labour markets, more efficient investment and access to wider investment opportunities.
For the Swedish side, which has a lower population, it enables reaping the benefits of agglomeration economies by linking to a larger metropolitan region serves to overcome the disadvantages of peripherality.
Potentially, the Oresund connections can deliver both the advantages of a larger economy without the usual drawbacks of congestion and high land and housing costs.
4.16
The Department of Infrastructure, Transport, Cities and Regional Development (Department of Infrastructure) noted the importance of infrastructure investment in regions:
We know that investing in connectivity now in our regions is going to help us build a bridge to recovery by ensuring that normal life doesn't stop completely and that people and essential goods and services can be directed and get to where they need to be.
4.17
Andrew McKenna, Policy Director, Business SA said that helping businesses to build their online presence was a key area for government support, particularly in the context of the recent COVID-19 restrictions.
…a lot of businesses that are events related and tourism related have really suffered. From their perspective, they’re really looking for support in bringing people back to main-street retail. We recognise that that’s also going to include helping a lot of those regional businesses with their online presence. A lot of the businesses that are still managing to do well have an online presence or are looking at growing it. That is a key area for government support.
4.18
While some areas have had the capacity to adapt rapidly, others have been limited in their resilience. Professor Helen Lochhead, President, Australian Institute of Architects, said that infrastructure investment will be critical in recovering from the twin disasters of the 2019-2020 bushfires and the pandemic:
Each regional community has its own opportunities and challenges to face, and not all will be on a growth pathway—more so, in recent times, with our extreme bushfire season damaging so much of the fabric of many regional towns and communities, and now with COVID-19 disrupting a return to normal. Investment in quality infrastructure is even more critical and will provide local economic stimulus with lasting benefits.
4.19
The Department of Agriculture, Water and the Environment (Department of Agriculture) found that the COVID-19 pandemic has resulted in a surge of regional innovation with ‘… online wool options and even saleyards moving to using more digital technology’.
Telecommunications infrastructure
4.20
Throughout the inquiry, the importance of telecommunications connectivity and addressing limited regional access were presented to the Committee as a means of facilitating growth and achieving regional potential.
4.21
Digital connectivity was also discussed by the Department of Agriculture as an area of increasing focus, as ‘… businesses in the agriculture sector and the food supply chain are generally starting to use those digital channels more.…’
4.22
The 2018 report of the Independent Regional Telecommunications Review Committee noted the continuing disparity in access to regional communications:
We are now faced with the situation where some regional businesses, particularly those near more densely populated areas, can access broadband services through many different networks. In comparison, those businesses situated in the less populated areas in rural and remote Australia have access to just one satellite broadband network.
4.23
Improved connectivity is essential for our regions. A poor internet connection acts as a barrier to both businesses and individuals. Additionally, a lack of technical skills needed to work remotely is also an impediment for individuals wishing to re-join the workforce or work more flexibly. Addressing these deficits is vital to developing a remote workforce in our regions.
4.24
The Country Women’s Association of Australia also noted the importance of technology in attracting business to regional areas and realising its attendant benefits:
… being able to provide access to technological improvements in relation to agricultural and other businesses that are located rurally or who want to relocate rurally, would be a big advantage in actually attracting more people to smaller communities, which should … broaden their economic base.
4.25
Mrs Rachel Browne of the Nyabing Progress Association reiterated the importance of good internet and phone services for livelihoods in regional areas:
Our mobile phones now are used so extensively for business. It’s not just making a phone call to someone. It’s business. You can miss markets, you can miss grain marketing deadlines and you can miss important phone calls. … I don’t know what the answer is other than more towers in more appropriate places. I can see a tower from my place, but I still have to buy boosters for my home and the workshop to get enough signal to make a phone call and, if the power goes out, I have no phone.
4.26
In a similar vein, Business SA spoke of the significance of communications infrastructure in building regional communities:
Digital connectivity is clearly very, very important in our regional towns and cities. If COVID-19 has taught us anything it has been to embrace digital infrastructure and digital technology, be that education, be that program support or be that TAFE studies. Effectively, it starts with infrastructure to ensure that our towns and cities around South Australia have adequate digital infrastructure. We can't build those communities unless we have that infrastructure in place.
4.27
Ms Tracey Squire, Deputy CEO, Albury City Council, noted the role of the NBN in making the area attractive to potential residents:
Certainly Albury Wodonga may be different to some other regional areas in that we were on the early NBN rollout program. In terms of the perceptions or the experiences of individual relocators, I can't speak to that, but, based on the feedback that we have from those that have moved, obviously we have areas that have extremely good telecommunications coverage. There is no doubt there are pockets in the surrounding area where there may still be challenges. But I would say overall that the feedback we've had is positive.
4.28
The Department of Communications and the Arts set out its work in delivering digital connectivity for high value agricultural, tourism and resources areas to benefit regional business:
The Regional Connectivity Program (RCP) will use a 'place-based' approach to target strategic investment to provide economic opportunities and enable full participation in the digital economy for regional communities and businesses.
4.29
The Department of Infrastructure noted an ‘extraordinary’ increase in data usage since the start of the COVID-19 pandemic. Despite this increased strain the Department has stressed that rushing into technical solutions to increase connectivity would have been ill-advised, as:
Satellite technology is changing quite rapidly, so there may be other options that emerge that provide good connectivity and coverage across large areas with relatively low population densities. We don't want to jump too early to pursue one technology solution if others are beginning to emerge. By that, I'm talking about new constellations of low-earth-orbiting satellites, high-altitude platform systems and even the possibility of other commercial satellites which have an NBN payload on them as well.
Remote work
4.30
The evidence received by the Committee makes it clear that ongoing investment in digital infrastructure will equip Australia’s regions to participate more comprehensively in the broader national economy. This is especially true in the contribution remote work can make to regional Australia.
4.31
The Committee heard that the COVID-19 pandemic had unexpectedly highlighted the possibilities of working remotely. This offers the potential to benefit regional communities:
I'm certain that by building capacity in rural communities to leverage remote work we can: create jobs; increase business revenues; stimulate rural economies; attract and retain rural populations; increase rural entrepreneurship, particularly in Indigenous led businesses; increase workforce participation, particularly for women; and build resilience post natural disasters and COVID-19. I see remote work as a way to genuinely decentralise our population. By supporting employers to allow their employees to work from anywhere, we can repopulate rural communities with families who are looking for a different life to one that involves hours of commuting and unaffordable mortgages.
Box 4.2: International–Vermont Remote Workers
Remote work opens the possibility of workers taking their jobs with them to regional locations. This was realised by the state of Vermont, a small state in the north east of the United States which offered USD 5,000 to USD10,000 grants to those who moved to the state, bringing their job.
The grant program provided funds to individuals to offset the cost of relocating to work in the state. This program has increased Vermont’s population of taxpayers, and has increased the number of children enrolled in Vermont schools. This strategy and incentive also helped strengthen Vermont’s employment base, at a time when Vermont faced a workforce shortage and employers were struggling to find workers.
The scheme opened on 1 January 2019 and proved so popular that the first round of funding was exhausted by 6 January 2020.
Throughout 2020, more regions started similar incentive programs as the COVID-19 pandemic forced people to work from home full-time and workers were able to control where they work. There are immediate financial benefits to the region:
…the remote worker is instantly employed. There is no lag period attempting to match a job with a person. Finally, the average state incentive for a job assumes that the new job will pay about $29 per hour. Remote workers cluster in technology and design fields, which tend to be salaried employees making more than $150,000 per year. They also tend to be more likely to live in multi-wage earner households. With reasonable assumptions about some of these criteria, the value of a remote worker is at least 10 times greater than the expected value of a new, unfilled job.
Transport infrastructure
4.32
While the COVID-19 pandemic has brought the significance of digital connectivity into particular focus, transport infrastructure still remains an ongoing concern for regional communities and business. Regional Development Australia (RDA) Limestone Coast noted the necessity of more efficient transport for growing regional industry:
The cost of transport poses a significant cost to the industry, particularly in a country where the cost of production is already high due to the cost of power and wages. … Creating efficiencies and cost reductions in transport must remain at the forefront to continue to support industry growth.
4.33
Efficient road, rail, aviation and shipping infrastructure are all important elements of building thriving regional communities and businesses. High-quality transport infrastructure contributes to providing greater employment opportunities, reducing costs for business and enhancing liveability.
Roads
4.34
A robust road network is essential for regional communities to travel to their places of education, employment and to access services, as well as goods transport. RDA Barwon South West noted that its road networks carry one third of the region’s freight.
4.35
The Premier of Western Australia also acknowledged the significance of road infrastructure:
Investment in regional transport infrastructure is essential for an efficient and effective freight network to support new and existing industries including in the resource and agriculture sectors. Ongoing investment in transport infrastructure upgrades and maintenance is also essential to ensure residents of remote communities have uninterrupted access to essential goods and services throughout the year.
4.36
The National Road Transport Association (NatRoad) noted that roads are a crucial component of transporting people and bulk freight:
Road transport is vital for the country’s economic and social well-being, inclusive of regional Australia where the majority of Australia’s agricultural products are transported by road.
4.37
The significance of roads for regional Australia makes it imperative that they are upgraded and maintained both for functionality and also for safety. NatRoad further noted:
Appropriate road infrastructure, including suitable rest areas for heavy vehicles, is a critical component of the road freight task in servicing regional Australia. It is vital that key interstate freight networks are upgraded for the expected increase in the freight task expected over the next decade.
Box 4.3: Northern Australia Infrastructure Facility
The $5 billion Northern Australia Infrastructure Facility (NAIF) is a lending facility which offers loans for the development of new—or material enhancement of existing—infrastructure in northern Australia. Providing there is appropriate risk-sharing, NAIF can lend up to 100 per cent of the debt. As NAIF projects must have public benefit, they are usually able to service multiple users.
As at 12 October 2020, NAIF has made financing commitments of $3.1 billion to projects in northern Australia. These projects are forecast to generate $16 billion in economic impact and support more than 10,000 jobs (during construction and operations).
In the Northern Territory loans have been provided to projects across a range of sectors such as marine infrastructure, education, airport facilities and aquaculture. Support has been provided to Charles Darwin University, a new Ship Lift in Darwin, for expansion of facilities at Humpty Doo Barramundi, and upgrades to airport infrastructure. To date, NAIF has fully or conditionally approved nearly $800m in support to projects with a total value of $1.4bn. Around $2bn of public benefit is forecast through these projects, alongside more than 2,613 jobs.
In Queensland loans have been provided to a pumped storage hydro- project, student accommodation at James Cook University, upgrade of terminal facilities at Townsville Airport, a beef processing facility, and a multi-user community training centre. Queensland is the largest beneficiary of NAIF’s approved loans to date, with $913m in approved loans to eight projects, and around 2,241 jobs to be provided or supported.
In Western Australia, three loans have been approved for energy and resource projects, marine support base, a sulphate of potash project, and power-related infrastructure. To date a total of $438m in loans has been approved and 1,982 jobs are forecast to be supported through the projects.
Rail
4.38
Rail remains an integral component of Australia’s infrastructure system for moving goods and people. The sector contributes over $26 billion to the national economy and employs over 142,000 people both directly and indirectly. According to Austrade, ‘Australia’s heavy haul railways transport some of the heaviest and longest freight trains.’
4.39
In addition to moving many of our regional commodities, rail can connect regional communities to major centres. The Bureau of Infrastructure, Transport and Regional Economics noted:
…strategic investments in track and trains on some of regional Victoria’s railway corridors have brought exceptionally strong patronage growth.
4.40
While investments may have improved the quality of rail offerings, there is still room for improvement. A number of participants in the survey conducted as part of the inquiry noted the poor quality of rail links as an issue:
If we have to go to Melbourne, rail transport is unreliable, bad rail links, need better rail and roads, and being ignored by State and Federal government ie infrastructure such as rail, in particular passenger rail.
Box 4.4: Melbourne to Brisbane Inland Rail
The $9.3 billion Melbourne to Brisbane Inland Rail is a national stand-alone freight rail line. Regions are expected to enjoy direct benefits from the enhanced infrastructure in addition to realising indirect benefits such as market-driven investment.
It is anticipated that the Inland rail will support approximately 16,000 jobs at the peak of construction and boost Australia’s GDP by $16 billion over the next 50 years.
The project provides incentives for private investment:
Parkes Shire Council recently facilitated a National Logistics Hub which enabled Australia's largest rail freight operator, Pacific National, to commit to a $35 million development for the company's Parkes Logistics Terminal. This is the largest private sector investment in freight infrastructure in regional Australia…
The Australian Government has established nine new and relocated positions in Toowoomba, Dubbo, Wodonga and Moree to support the construction of this project. This presence along the Inland Rail corridor will enable local people to have face-to-face contact about the potential opportunities and benefits on hand including local procurement and employment opportunities.
4.41
Many submissions to the inquiry called for improved rail connectivity between regional and urban centres to not only improve regional residents’ access to urban amenities but also to enhance regional development opportunities. The ACT Government noted the wide range of benefits faster rail would bring to the region:
Enhanced rail capacity between Canberra and Sydney would complement new tourism, freight and business investment opportunities created by the availability of international flights at Canberra Airport. There are also potential opportunities for regional urban development, unlocking land for affordable housing, and promoting better land use and transport integration.
Additionally, new and improved rail connections between Canberra and the Port of Eden would link Australia’s national capital and the Canberra Region’s international gateway with its closest deep-water port and a thriving cruise ship terminal. This would create [significant] new tourism and economic development opportunities.
4.42
The Greater Shepparton City Council highlighted how the benefits of the region care were not being fully realised:
Greater Shepparton continues to apply great effort towards enhancing the region’s diverse tourism. The new Shepparton Art Museum will aim to attract visitations from throughout Australia and internationally. The region also presents an enviable major events calendar that offers locals and visitors with the opportunity to experience Greater Shepparton’s various major event offerings which includes but isn’t limited to sport, art, music, culture, food and history. The region’s extensive tourism potential is however currently undermined by a below average passenger rail service.
4.43
Mildura Rural City Council also noted this deficit—despite being serviced by an airport with capital city connections, and its location as a major regional centre, it has no passenger rail services.
Aviation
4.44
The long distances in Australia mean that a strong regional aviation sector is essential. Regional Capitals Australia wrote about the importance of regional aviation:
The airports in regional capital cities play a crucial role as essential infrastructure in connecting individuals, facilitating trade, providing employment and supporting tourism. Regional airports are hubs for emergency and medical services and also play a large role in same day business travel to metropolitan/capital cities and enabling FIFO employment.
4.45
Given the role it plays in the region’s liveability, tourism and business, the City of Kalgoorlie-Boulder is undertaking a number of actions to make regional airfares more accessible:
To encourage affordable airfares, the City is currently seeking EOI’s from the general aviation industry to provide flight services to Kalgoorlie-Boulder. This includes flight services to Perth and possible destinations such as Esperance, Adelaide, and even Broome. Interested aviation operators are being encouraged to submit proposals which create recreation, tourism and business travel options for both Kalgoorlie-Boulder residents and visitors.
4.46
Australian Government programs are available to support regional airports:
To further assist connectivity with regional centres, the Government is providing $100 million in grant funding over four years from 2019-20 for a new Regional Airports Program as a key enabler of regional communities transport, supporting employment in regions. The program provides assistance to the owners of regional airports to undertake essential works, promoting aviation safety and access for communities.
4.47
In addition to transporting people, aviation is also essential to the movement of high-value, low-volume exports and regional airports have a role to play in increasing Australia’s overall airport capacity:
Airfreight is also an emerging opportunity for regional economies where the existence of regions premium goods are in demand from growing world markets. Across Australia in 2016-17, airfreight trade was worth $130 billion, or 21% of total trade. As capital city airports continue to face the demands of population growth, unlocking the potential of regional airports to increase airfreight capacity and share in the airfreight trade presents a win-win for the Australian economy.
Shipping
4.48
Shipping is important for our regional economies as our maritime industry is responsible for transporting 99 per cent of our exports. In addition, coastal shipping is used for a substantial proportion of our domestic freight.
4.49
Exports were also raised as an area for regional business growth and expansion; the Townsville City Council suggested the expansion of its sea exports as one avenue through which to develop the region as an ‘export gateway and leading lifestyle community’.
4.50
The Port of Newcastle, located in Australia’s largest regional economy, is also the world’s leading coal export port, with mining accounting for 38 per cent of the region’s exports by value.
Box 4.5: Port of Eden
The cruise industry contributes $5.2 billion to the Australian economy annually. In September 2019, a $44 million port redevelopment was opened in Eden, on the picturesque NSW south coast to drive regional cruise tourism.
Jointly funded by the Australian Government, NSW Government and Bega Valley Shire Council, the new wharf aims to cement Eden’s place on the Australian Cruise map and drive economic growth in the region.
A new Welcome Centre at the Port will have the capacity to greet over
100,000 visitors per year.
Although the Port has been closed to cruise ships since March 2020 due to the COVID-19 pandemic, when it is fully operational, it should drive a significant boost to tourism in the region.
Tourism infrastructure
4.51
Inquiry participants raised the importance of tourism infrastructure in the regions. RDA Yorke and Mid North articulated the array of benefits of investing in the sector:
Investing in tourism infrastructure and products creates new jobs in both construction and on-going operational phases and the improved tourism experiences will have an impact on increasing overnight visitor numbers and expenditure.
4.52
Similarly, the Australian Hotels Association and Tourism Accommodation Australia wrote of the positive flow-on effects of tourism investment:
With investment in regional tourism facilities comes the opportunity for more tourism operators, accommodation providers, and hospitality businesses to operate in the regions, which would ultimately require a suitable workforce.
4.53
Industry-wide collaboration on tourism infrastructure projects presents opportunities for regional growth. There is support for the continuation of the Regional Tourism Infrastructure Investment Attraction Strategy, developed jointly by Austrade and Tourism Australia.
4.54
Work on developing a new long-term tourism strategy was put on hold due to the COVID-19 pandemic and, at the time of writing, work had recommenced on a strategy for long-term growth of Australia’s visitor economy.
Regional infrastructure investment
4.55
The Committee received evidence regarding the critical role of infrastructure investment in attracting people and fostering economic development and resilience in our regions.
4.56
Government stimulus activity through existing programs such as the Roads to Recovery program was discussed by the Department of Infrastructure as an avenue they were investigating in order to best support regional Australia.
Government investment in transport and telecommunications infrastructure has enhanced the way in which regional Australians work, live and transport goods. The Australian Government has contributed to this through measures such as the $100 billion infrastructure pipeline to upgrade and maintain key transport corridors; Inland Rail; the National Water Grid Authority; the Faster Rail, Freight and Supply Strategy; upgrading regional airports; investment in National Broadband Network and Mobile Black Spot Program telecommunications; and digital regional hubs.
4.57
Regional Capitals Australia noted that in addition to providing connectivity, investing in regional roads infrastructure also:
…contributes directly to a city’s economy by providing jobs, increasing value-add spending and lifting productivity both within the regional capital city and the surrounding region.
4.58
RDA Limestone Coast contended that the role of governments is to incentivise infrastructure which can make regions more competitive and attractive to investors. It further submitted the need for governments to focus upon enabling infrastructure which can create ‘… private investment-ready projects’.
4.59
This view was shared by RDA Kimberley who noted that ‘… private investment is critical to the development and sustainability of regional Australia’.
4.60
The Hunter Business Chamber agreed with this sentiment:
Investment in regional infrastructure will be essential to unlocking the economic potential of the Hunter and continuing to build a diverse and resilient regional economy for the long term.
4.61
The Tasmanian Government announced the State’s first Infrastructure Pipeline in 2018, which mapped out infrastructure development for the next 10 years:
The updated Infrastructure Pipeline was released on 28 August 2019, including projects capturing an estimated $15.2 billion, with 38 of the 265 projects worth more than $50 million.
4.62
RDA Tasmania also noted the importance of information for potential infrastructure investments. It recommended that a template be developed jointly with Infrastructure Australia that could be used to list investment priorities to inform both government and the private sector.
Infrastructure funding
4.63
The Planning Institute of Australia noted that infrastructure planning requires the advance determination of funding mechanisms. One possible solution to funding infrastructure is the use of private-public partnerships. If an area can attract private investment, the benefits of spending public dollars are enhanced:
Public Private Partnerships (PPPs) are an important project delivery model for complex or large projects and a major mechanism to allocate risks, maximise value for money and competition; and a key mechanism to inject private investment into public infrastructure projects.
4.64
The Australian Housing and Urban Research Institute suggested that funding for infrastructure be:
…linked to mining royalty revenue and partnership approaches with industry to see some of the benefits of the mining flow to the local community.
4.65
Smaller regional areas can experience difficulty in gaining access to funding for infrastructure projects. Inquiry participants highlighted that grant funding can play an important role in facilitating community development and growth; however, this funding is ‘… often the only way in which smaller communities can access new infrastructure and services’. The application process has been criticised as being a complex undertaking.
4.66
In response to concerns that the common ‘dollar-for-dollar’ matching of funds between local and federal government was unrealistic given the unprecedented economic stresses of 2020, the Department of Infrastructure responded:
I certainly take on board your point that, particularly in today's climate and particularly for those who are affected by drought and floods—we shouldn't forget the floods either—we might have to have a bit of a rethink. We're happy to go away and have a bit of a look at flexibility.
4.67
The Department of Communications and the Arts is aware of the importance of planning for telecommunications services, especially in regional areas and outlined their role in this process. The Australian Government has established the Telecommunications in New Developments (TIND) policy to ensure access to appropriate telecommunications infrastructure. The Department reported that it promotes ‘… the importance of forward planning for telecommunications through its involvement in the City Deals program, some of which include regional areas’.
4.68
The efficient movement of freight is essential for ensuring that regional goods can access markets. NatRoad proposed several reforms which would improve the transport of freight in regional Australia. These reforms, however, cannot be undertaken in isolation from other related policy areas:
…the issue of access reform needs systemic reform of other policy areas. The first is a requirement to have an extensive pre-approved road network mapped out that should make the task of planning heavy vehicle routes simpler and more consistent. Secondly, road funding needs to be linked with levels of service provided to heavy vehicle freight movements.
4.69
RDA Yorke Mid North noted that considerable planning will be required to accommodate the infrastructure required to service the expected population changes:
…in the Copper Coast local government area within our region expects a large migration of ‘sea-changers’ within the next 3-5 years. … When they make the transition to full-time retirement and hence move full-time into their holiday homes there will be a significant increased demand placed upon infrastructure and services. For example, expansion of Community Wastewater Management Schemes (CWMS) will need to be factored in, through to the availability of ‘typically’ required medical and allied health services. These types of issues require long-term transitional planning so that communities can prepare, develop and implement required infrastructure needs and build up the required workforce to meet demand.
4.70
Business SA acknowledged that while infrastructure investment is essential, it needs to be viewed through a long-term lens:
We need to start with planning longer-term projects like the Dukes Highway duplication and the Augusta Highway duplication. Those sorts of projects would set up growth for businesses, but it won't happen overnight. It's not going to happen in one political term.
4.71
A similar point was made by the East Gippsland Shire Council which advocated for planning to ensure that the economic benefits of mining were realised for the community, without compromising other amenities:
Mining is another key opportunity for regional development, provided it is subject to careful planning and control to ensure that the environment, and other values enjoyed by local residents that form part of why they live where they do, are not compromised. This is a key challenge. Another is that mining projects can involve a significant scale up of jobs and requirements for community infrastructure for a relatively short period of time. Again, careful planning is required to ensure such developments leave a positive legacy.
Committee comment
4.72
Investment in infrastructure is a key component of regional growth. It is, however, important to note the caution of the Organisation for Economic Co-operation and Development:
Where infrastructure deficits do need to be addressed, it is important to tackle them in conjunction with other policies so as to ensure that the full benefits are realised.
4.73
The COVID-19 pandemic has highlighted the need for improved digital connectivity in our regions. The current sub-optimal connectivity experienced in some regions creates a multitude of flow-on effects including impeded access to markets and services and fewer employment opportunities.
4.74
Investment in infrastructure can make the regions more attractive to migrants from the cities, facilitating development in the former and easing congestion in the latter. The Committee believes that connectivity investment in the regions will provide more benefits to the nation than large-scale road infrastructure in cities to alleviate congestion.
4.75
Infrastructure planning is essential for the economic and social development of Australia’s regions. This process is part of the coordinated planning recommended in Chapter 6.
4.76
While the importance of infrastructure investment for regional Australia has been highlighted, greater attention needs to be given to funding mechanisms.
4.77
The Committee recommends that the Australian Government develop a nationwide Regional Development Plan which considers the current and future infrastructure needs of regional Australia. The Regional Development Plan should focus on telecommunications and internet connectivity, road, rail, ports and airports along with soft infrastructure.
4.78
The Committee recommends that the Australian Government develop mechanisms to encourage private public partnerships to fund regional infrastructure.