1. Introduction

1.1
Regional Australia drives the nation’s economy, producing its essentials such as food, fibre and energy and is home to over 8 million people.
1.2
Regional Australia — ‘the bush’ — ‘the outback’ — is key to the nation’s identity both domestically and internationally, and the contribution it makes to the economy is significant. Overseas markets have recognised the quality of regional Australian produce, domestic and international tourists are drawn to the regions for their unique beauty and experiences.
1.3
The immense challenges of the past few years have put a once-in-a-generation strain on communities in regional Australia. They have been assaulted by drought, severe bushfires and the novel coronavirus (COVID19) pandemic. The impact of these challenges is already significant, and is unlikely to be fully realised for some time as communities begin to rebuild and reassess priorities.
1.4
The unprecedented scale and ferocity of the bushfires which tore through the country in the summer of 2019-2020 shocked the nation, damaged communities, destroyed properties and, sadly, took lives. The economic contribution of regional Australia was brought into focus by the fires, as the lost productivity, livestock and property have an ongoing impact on the national economy.
1.5
Estimates of damage caused by the bushfires have been given at around $4.5-$5 billion. One estimate took into account the direct costs to fire-affected regions from lost tourism, agricultural and retail income at $2 billion for the 2019-2020 financial year alone.1
1.6
Smoke haze lingering across cities and regions in early 2020 impacted productivity, consumer spending and health, and may have reduced the national economic output by around $500 million.2
1.7
The COVID-19 pandemic has forced the suspension of travel for work or leisure, community interaction and face-to-face education. The response to the pandemic has led to the reassessment of immediate priorities, and has brought into sharp focus the importance of Australian-made products and the supply chain that exists to allow Australians in regional and metropolitan areas to buy the products they need.
1.8
As communities sought to rebuild after the fires, and other communities worked through issues with their supply chain, or to attract local tourists while international and state borders were shut, more questions were being asked about infrastructure, population density and services in our regions.
1.9
This report explores regional Australia from a number of interlinked perspectives, the consideration of which is essential to securing our regions’ economic and social prosperity. In addition to planning, the report examines infrastructure, regional business, regional development, liveability and community.
1.10
The evidence received during the conduct of the inquiry indicates that regional Australia continues to have much to recommend it as a place in which to live, work and do business. There are, however, areas in which enhanced investment and policy attention will make our regions even stronger.

Definition of regional Australia

1.11
The towns and communities outside of the metropolitan areas of Australia are spread across a vast continent with specific geographic, socio-economic, industry, and climatic characteristics.
1.12
Australia’s regions are defined by different entities, often for different purposes. The House of Representatives Select Committee on Regional Australia (the Committee) has followed in the footsteps of the House of Representatives Select Committee on Regional Development and Decentralisation (former Select Committee) (45th Parliament) and has adopted a broad and inclusive definition of regional Australia, which includes all the towns, cities and areas outside Australia’s largest capital cities.3

About the inquiry

Objective and scope

1.13
On 25 July 2019, the Inquiry into matters affecting Regional Australia (the inquiry) was referred by the Assistant Minister for Children and Families, Hon Michelle Landry MP for inquiry and report.
1.14
As part of the inquiry, the Committee examined:
regional Australia’s contribution to Australia’s national and social identity, economy and environment;
services;
commerce, investment and business growth; and
planning, development, promoting population growth and sustainability.
1.15
The Committee was unable to present a fulsome interim report in July 2020, as required by the resolution of appointment. This was due to the significant impact of the COVID-19 pandemic, which prevented the Committee undertaking its planned programme of travel throughout Australia’s regions.
1.16
The Committee was granted an extension of time to report, until 31 March 2021, and offered organisations and individuals who had previously lodged a submission the opportunity to update their submissions in light of recent events.
1.17
On 8 December 2020 the Committee was granted an extension to
30 December 2021, to present its final report. On 30 November 2021 the House of Representatives granted the Committee an additional extension to present its final report to 1 April 2022.

Inquiry conduct

1.18
A media release announcing the inquiry was issued on 20 September 2019, calling for submissions to be received by mid-November 2019.
1.19
The Committee also invited submissions from regional bodies, the agriculture, tourism, arts and education sectors and government bodies.
1.20
The inquiry received 89 submissions and 27 exhibits, which are listed at Appendix A and B respectively.
1.21
The Committee undertook public hearings in regional Tasmania, New South Wales and Western Australia. A more extensive program of travel could not be undertaken due to the COVID-19 pandemic, and virtual public hearings were held with witnesses appearing by a combination of videoconferencing and teleconferencing facilities. A list of hearings, witnesses and organisations is at Appendix C.
1.22
A survey asking questions relating to life in the regions was circulated online and via social media and received 3244 responses. A second survey, asking for metropolitan views on living in a regional area and received 706 responses. The Committee is very grateful to those who took the time to participate in the inquiry in this way. Summaries of the survey results are at Appendix D.
1.23
The Committee would like to thank all participants for their contributions, and for their flexibility in appearing in virtual public hearings due to the inability of the Committee to travel and undertake its work in the usual way. The Committee was disappointed not to travel more broadly but considered the health and safety of the regions to be paramount.

Other inquiries and reports

1.24
A number of inquiries into aspects of regional Australia have been completed by House of Representatives committees in recent years. This report will build on the work of the Committee’s predecessors.
1.25
The Committee notes the completed and ongoing work on regional Australia by other parliamentary committees recently, including the:
House of Representatives Standing Committee on Employment, Education and Training’s report on Education in Remote and Complex Environments;4
Senate Standing Committees on Economics’ report on Regional Inequality in Australia;5
Senate Rural and Regional Affairs and Transport References Committee’s inquiry into The Federal Government’s response to the drought, and the adequacy and appropriateness of policies and measures to support farmers, regional communities and the Australian economy;6 and the
Joint Standing Committee on Migration’s report on migration in regional Australia.7

Regions at the Ready: Investing in Australia’s future

1.26
The Committee acknowledges the comprehensive work undertaken by the Select Committee on Regional Development and Decentralisation of the 45th Parliament, which inquired into ‘best practice approaches to regional development, the decentralisation of Commonwealth entities and supporting corporate decentralisation’.
1.27
The former Select Committee tabled its final report ‘Regions at the Ready: Investing in Australia’s Future’ on 28 June 2018 following an issues paper on tabled 24 August 2017 and an interim report tabled on 8 December 2017.
1.28
The final report was principles-based, articulating the principles for ‘building and sustaining regional Australia’:8
These principles challenge traditional thinking about regional development, and set a new foundation for developing the regions, particularly in a modern, globalised and mobile era. The 12 principles emphasise the importance of:
long term, flexible, and committed policy making;
decentralised government and corporate entities;
identified national regional development priorities;
local education and training to build human capital;
collaboration between all levels of government, the private sector and community; and
universal access to reasonable services.
It is the Committee’s view that all regional development policy should be based on these principles.9*
1.29
The final report made 13 recommendations, a number of which addressed the relocation of Commonwealth Government departments and agencies to regional areas. The former Select Committee also proposed a strategy for the development of regional Australia consisting of six elements:
build the enabling infrastructure for regional development;
identify national regional development priorities;
establish a Regional City Deals program;
strengthen the Regional Development Australia network;
establish a public sector decentralisation policy; and
strengthen the role of regional universities.10
1.30
In addition, the former Select Committee also called for the development of a Regional White Paper and the establishment of a Joint Standing Committee on Regional Development and Decentralisation.11
1.31
The Government response to the report was tabled in the House of Representatives on 13 February 2019. The response provided government agreement, or agreement in principle, to nine of the 13 recommendations.12
1.32
The final report was referred to by inquiry participants, and some overlap between the former and current Select Committees was noted. Regional Development Australia—Peel WA noted topics in common:
Investment in building enabling infrastructure;
Development of coordinated regional strategic plans;
Strengthening the role of the Regional Development Australia (RDA) program, including leading cross government collaboration, attracting catalytic investment from state and federal governments;
Decentralisation of Government agencies.13
1.33
The Committee thanks members of the former Select Committee for their work, and has drawn from its reports and issues papers.
1.34
It is clear from this Committee’s and its predecessors’ work, and from the range of parliamentary reports noted above, that there is a need for more consistent parliamentary oversight of Government policies and programs for regional development as well as to investigate issues concerning regional Australia in detail. Committees are how the Parliament takes itself to the people and regional Australians should not have to wait for ad-hoc select committees to have their Parliament listen to them.
1.35
The University of Western Australia’s Centre for Regional Development submitted that each term of reference for this inquiry could in itself be a PhD thesis.14 The Committee agrees. This report has been a broad examination of the issues before it, each one of which could have been a report in itself. The Committee therefore recommends that its work continue in the form of a Standing Committee on Regional Australia – this will give the Parliament greater oversight over the Government’s agenda for regional Australia, as well as giving the Parliament the capacity to inquire into issues affecting it in detail.

Recommendation 1

1.36
The Committee recommends that the House of Representatives establish a Standing Committee on Regional Australia.

Report structure

1.37
Chapter Two explores the theme of supporting regional communities including responses to natural disasters and COVID-19. Community resilience, character and volunteerism are also examined as well as the need for place-based policy approaches.
1.38
Chapter Three explores regional liveability including access to services such and health and education. Housing and natural and cultural amenity are also examined.
1.39
Chapter Four explores the theme of regional connectivity including its role in regional development and the consequences of both physical and digital infrastructure deficits. Regional infrastructure investment including its funding is also examined.
1.40
Chapter Five discusses how to build regional business including policy and program delivery, overcoming barriers to success and promoting regionally-based businesses. Supporting regional employment including access to skilled labour is also examined.
1.41
Chapter Six examines the role of master planning for Australia’s regions and the need for a population plan which encompasses targets for and reporting on regional population growth. It also explores the promotion of regional centres and the need to avoid the evolution of two megacities in Australia.
1.42
The report highlights, through case studies, innovations throughout Australia’s regions and internationally.

  • 1
    Hunter, S., ‘Economic impact of the bushfires’, Oxford Economics, webinar, 24 January 2020; Rose, D., ‘Bushfires set to cost Australian economy $5b, Westpac warns’, The West Australian, 13 January 2020, https://thewest.com.au/business/economy/bushfires-set-to-cost-australian-economy-5b-westpac-warns-ng-b881431565z, accessed 3 November 2021; Fensom, A., ‘Up in smoke: Australia’s bushfires darken economic outlook’, The Diplomat, 13 January 2020, https://thediplomat.com/2020/01/up-in-smoke-australias-bushfires-darken-economic-outlook, accessed 3 November 2021.
  • 2
    Irvine, J., ‘Economic cost of bushfires estimate at $2 billion and rising’, Sydney Morning Herald, 7 January 2020, https://www.smh.com.au/business/the-economy/economic-cost-of-bushfires-estimated-at-2-billion-and-rising-20200106-p53pac.html, accessed 3 November 2021.
  • 3
    House of Representatives Select Committee on Regional Development and Decentralisation (45th Parliament), Regions at the Ready: Investing in Australia’s Future, June 2018, p. 21.
  • 4
    House of Representatives Standing Committee on Employment, Education and Training, Education in Remote and Complex Environments, November 2020, Canberra.
  • 5
    Senate Standing Committees on Economics, Inquiry into the indicators of, and impact of, regional inequality in Australia (46th Parliament), December 2020, Canberra.
  • 6
    Senate Standing Committee on Rural and Regional Affairs and Transport References Committee, Federal Government’s response to the drought, and the adequacy and appropriateness of policies and measures to support farmers, regional communities and the Australian economy, October 2021, Canberra.
  • 7
    Joint Standing Committee on Migration, Report of the Inquiry into Migration in Regional Australia, June 2020, Canberra.
  • 8
    House of Representatives Select Committee on Regional Development and Decentralisation, Regions at the Ready: Investing in Australia’s Future, June 2018, p. xxviii.
  • 9
    House of Representatives Select Committee on Regional Development and Decentralisation, Regions at the Ready: Investing in Australia’s Future, June 2018, p. xxviii.
  • 10
    House of Representatives Select Committee on Regional Development and Decentralisation, Regions at the Ready: Investing in Australia’s Future, June 2018, p. xxviii.
  • 11
    House of Representatives Select Committee on Regional Development and Decentralisation, Regions at the Ready: Investing in Australia’s Future, June 2018, p. xxviii-xxix.
  • 12
    Australian Government, Australian Government Response – Regions at the Ready: Investing in Australia’s Future, February 2019, https://www.aph.gov.au/Parliamentary_Business/Committees/
    House/Former_Committees/Regional_Development_and_Decentralisation/RDD/Government_Response, accessed 14 May 2020.
  • 13
    Regional Development Australia Peel WA, Submission 30, p. 1.
  • 14
    University of Western Australia, Centre for Regional Development, School of Earth and Environment, Submission 25, p. 1.

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