Chapter 8

A broader northern economy

8.1
The committee received a range of evidence in relation to the industry base in Northern Australia, in particular the opportunities to broaden the region's economic base. The following sections outline this evidence.
8.2
Northern Australia is already home to many long-standing, well-established industries. Trade and Investment Queensland reports that North Queensland currently exports 30 different commodity types, including copper, zinc, lead and sugar. Mining and minerals processing are major growth industries in the area, as is tropical science, international education and training, renewable energy, and food and agribusinesses. Additionally, the area features prominent domestic and international tourism industry, as it includes the Great Barrier Reef and World Heritage-listed wet tropics rainforest, amongst other natural features.1
8.3
In the Northern Territory, the largest industries include agribusiness, defence and defence support, energy, international education and training, minerals, space, tourism, and tropical health research.2 Northern Western Australia's comparable industries include agriculture, manufacturing, and tourism.3
8.4
At present, the Northern Australia agenda is very focused on a small number of traditional industries in the north. While these industries will continue to play a foundational role in Northern Australia and ought to be supported, there are opportunities to value add to these traditional industries and also to expand a broader range of emerging industries that have the potential to create greater economic stability across Northern Australia.
8.5
When appearing before the committee, Mr David Lynch, City Economist, Townsville City Council, described his concerns about the current balance between older and newer industries in the Northern Australia agenda:
I would, however, emphasise that part of that process is to traditionally look upon the strengths of northern Australia in regard to its natural resources. I don't see an issue with that; we need to start with our base. We certainly don't throw out the old and the foundation in relation to the prosperity that's been created from northern Australia, as far as national accounts is concerned. … You'll note that those things we focus on in the northern Australia agenda are those industries which are either static or declining. At the same time, we've seen a doubling of the services sector. It now accounts for more than 80 per cent of all employment in Australia, and there is no acknowledgement in the northern Australia agenda of the importance of those sectors to driving growth in Australia.4
8.6
Mr Lynch further stated that 'as we focus just on those traditional resource based areas then we will not capture the next wave of growth or the current wave of growth'.5 The committee notes the importance of knowledge-based and service industries to Northern Australia, as well as the critical need for a broader range of industries in Northern Australia that would provide a protective buffer against the intense fluctuations that can impact more traditional industries. Furthermore, such a broadening of economies would create greater and more stable employment in the region. This section of the report examines some of the economic opportunities available through value adding to the traditional industries and supporting emerging industries.
8.7
Due to the committee's broad terms of reference, it could not inquire into every industry that is beginning to emerge within Northern Australia. This section considers industries on which the committee received particular evidence from witnesses and submitters. Although the committee is limited in its scope in this particular chapter, the committee does acknowledge other industries that offer large opportunities for Northern Australia, such as advanced manufacturing (through projects such as the Lansdown Eco-Industrial Precinct), defence manufacturing, tropical science and services such as tropical architecture and disaster management, and extraction and processing of minerals (such as lithium and vanadium) for batteries and other new technologies.

White Paper

8.8
Our North, Our Future: White Paper on Developing Northern Australia (the White Paper) identified that 'more investment is needed in the north to diversify the economy as the investment phase of the mining boom transitions to its production phase'.6 As such, the White Paper stated:
The Commonwealth Government anticipates that five industries have bright growth prospects in the north: food and agribusiness; resources and energy; tourism and hospitality; international education; and healthcare, medical research and aged care.7
8.9
The White Paper stated that the Australian Government's aspirations for food and agribusiness are:
intensive beef production as its cornerstone, leveraging research leadership in beef genetics and value added processing;
aquaculture developments on a large scale incorporating world's best environmental practices; and
irrigated cropping sustaining multiple clusters of small scale, high premium horticultural and niche crop production, together with broadacre farming of crops such as sugar, soybeans and cotton. These will be enabled by the development of sustainable water harvesting from monsoonal flood water diversions, groundwater and selective development of dams.8
8.10
The White Paper also outlined the Australian Government's aspirations for the resource and energy sector as:
Australia positioned as Asia's energy supplier of choice from a balance of sources — natural gas, uranium, coal and next generation biofuels;
a diverse portfolio of mining across the north including existing large scale resources such as iron ore, base metals and gold, and new mines for strategic minerals such as rare earths or uranium;
the north playing a leading role as the fertiliser supplier to Asia's agricultural sector, becoming a net exporter of phosphate based fertiliser through new projects in the north, an entry into potash production, and capitalising on abundant gas to expand nitrogen fertiliser production;
rail links from the Northern Territory to Queensland through Mount Isa to transport minerals and agricultural products from the gulf country to Darwin, cutting shipping time and costs compared with hauling out to east coast ports;
expanded energy networks including connecting the north's gas resources with east coast markets, and delivering cost competitive energy to projects in the north; and
large scale development of next generation biofuels using algae, capitalising on the north's abundant land, water and sunshine.9
8.11
Similarly, the Australian Government stated that its aspirations for the tourism and hospitality sector are:
development of a range of hotels and resorts across the north; and
lifting overseas tourist horizons beyond the wonders of the Great Barrier Reef and the Daintree Rainforest, to an expanded appreciation for Kakadu National Park, the Kimberley and Broome.10
8.12
The White Paper also identified that the Australian Government would develop a national strategy for international education that would recognise 'the role of international education in extending cultural and economic relationships and driving economic growth in regional hubs, including in Northern Australia'.11 The White Paper also noted that Northern Australia's 'healthcare services and aged care providers could be at the forefront of tropical health solutions, delivered both in Australia and across the booming middle income markets of Asia and the Tropics'.12
8.13
However, despite this acknowledgement of a broader economy in the north, the White Paper—and, accordingly, the government's Northern Australia agenda—remains focused on the more traditional industries of agriculture, resources and mining and tourism. While these industries are foundational in Australia and ought to continue to have value added to them, the Northern Australia agenda ought to be supporting the growth of a broader economy and emerging industries in the north. The support of such a broader economy would not only provide more employment, but would also create greater economic stability and resilience to the historically volatile economic region.

Evidence received by the committee

8.14
Witnesses were critical of the White Paper, arguing that it does not adequately identify emerging industries or acknowledge any likely shift in demands for goods and services which will impact Northern Australia in the future.13 As such, the committee received evidence identifying emerging industries which may offer valuable opportunities across Northern Australia.

Nature-based economy

8.15
The Wet Tropics Management Authority (WTMA) noted that the White Paper identifies Northern Australia as possessing 'exceptional biodiversity, holding spiritual and cultural significance for its Indigenous peoples, and underpinning human wellbeing'.14
8.16
However, the WTMA submitted that the White Paper 'fails to deliver a long term vision of protection of this asset, nor is there any consideration of incorporating the environment as a component of the economy'. The WTMA submitted that the Australian Government's Northern Australia agenda should 'offer a vision for a transformative economy based on working with nature'.15
8.17
The WTMA argued that nature-based jobs such as the management of invasive pests, and landscape-level management and restoration programs would deliver a range of benefits including:
Enhance resilience, reduce emissions (carbon abatement), augment wildlife corridors, buffer refugia and provide social, environmental, cultural and economic co-benefits, particularly for World Heritage values, environmental services, adjacent landholders and Traditional Owners.16
8.18
The WTMA also submitted that challenges such as invasive pest management programs 'provide employment opportunities without which other jobs, such as in the agriculture and tourism industries, may be at risk'.17 The WTMA explained:
These programs also provide security for tourism and tourism jobs, through demonstrable actions that give confidence to residents and visitors alike that something can be and is being done, and that their enjoyment of the Area can help it, not depreciate it.18
8.19
In Tropical North Queensland, over 20 organisations have developed the Green and Blue Economic Stimulus Package. This is designed to create jobs and new business opportunities by supporting projects that better protect the region’s reefs and rainforests.19 Ms Lucy Graham, Director, Cairns and Far North Environment Centre, described this package as 'an agenda we believe will ensure our economy, our people and our environment prosper and grow stronger together'.20 Ms Graham described the groups that took part in developing the project:
… it brings together a really broad range of sectors. We've been collaborating with the chamber of commerce, Advance Cairns, FNQRoC, a lot of different Aboriginal groups and a lot of our smaller groups who are involved in the on-ground delivery. It's very rare to have such cross-sectoral involvement in an agenda for our region, and we're really proud of that work we've done to come together.21
8.20
Ms Graham then described the wider benefits of the program:
The first component is the boots on the ground, fins in the water, which is a very simple response to the pandemic. As you were highlighting with one of our other members earlier, the severe impact of unemployment that our region faces and the fact that natural resource management has a variety of different jobs available to both unskilled workers and skilled workers …
The second component is about the smart green capital. What we're talking about there is how we invest in innovative industries that diversify our economy and strengthen it. At the moment, we celebrate and love our tourism, but when tourism takes a hit our economy takes a big hit. What we want to do is strengthen other industries around it. That talks about innovative agriculture. It talks about new renewable energies. … it's about how we develop new industries that look after our environments but also create an economy that employs people and strengthens that economy.22
8.21
The committee welcomes this project as a prime example of an inventive and collaborative local stimulus, and congratulates the Cairns and Far North Environment Centre and its partner organisations on their work so far.

Science-based jobs

8.22
The committee received evidence that science should be considered as a catalyst for jobs in Northern Australia in the future. Opportunity exists for universities, research institutions, not-for-profit entities, industries and key economic and business agencies to collaborate to form stronger strategic alliances and to develop a clear framework for the building of a focused knowledge economy in Northern Australia.23
8.23
The WTMA noted that James Cook University (JCU) is world renowned for its tropical sciences. In particular, the Centre for Tropical Environment and Sustainability Science is developing, implementing and exporting solutions to environment and sustainability issues faced by Australia and the rapidly developing tropical world. The WTMA noted that the JCU attracts students from 100 countries around the globe to study and conduct research in the region.24
8.24
The WTMA argued that there are significant opportunities for developing a vibrant, world-class research region, developing and exporting advances in fields such as climate change science, infrastructure management, biodiversity monitoring and recovery, and restoration ecology, as well as the intersection between tourism and regional development. However, in order to capitalise on this research investment, Northern Australia needs to retain and foster the best trained people, infrastructure, research programs and resourcing.25

Renewable energy and hydrogen

8.25
The committee received evidence that while Northern Australia's economy is currently focused on fossil fuels, opportunities exist in other energy sources such as 'green' hydrogen and solar.26 The Northern Territory and Queensland currently both have a renewable energy target of 50 per cent by 2030, while Western Australia currently has no renewable energy target. The Northern Territory has a substantial way to go on its goal, as it currently sources just eight per cent of its energy from renewables.27 Queensland sits at 14.1 per cent and Western Australia at 20.9 per cent, as at December 2020.28
8.26
Currently, Northern Australia has many major projects and proposed projects, including:
Origin Energy's proposed electrolyser in Townsville;29
Jacana Energy's Katherine Solar Farm;30
Australian Gas Infrastructure Group's Hydrogen Park Gladstone project;31
Genex Power's Kidston Pumped Storage Hydro Project;32
Sun Cable's plan to build industrial and utility-scale solar farms across Northern Australia, including a major plant near Elliott, in the Barly Region of the Northern Territory, to enable power exports to South East Asia;33 and
the Asian Renewable Enery Hub, which is to be based in the Pilbara region and would utilise wind, solar, green hydrogen and green ammonia, again to enable power exports to South East Asia.34
8.27
Professor Ken Baldwin, Professor Tony Dreise, Associate Professor Janet Hunt, Dr Lily O'Neill, Dr Katherine Thorburn, Dr Emma Aisbett, and Brad Riley (Baldwin et al) submitted that the White Paper 'fails to mention the renewable energy industry in any assessment of resources in the north'. Baldwin et al described this as:
…significant oversight when considering that wind and solar photovoltaics accounted for 60 per cent of new net capacity additions to global energy supply in 2017 (Baldwin et al 2018), and Northern Australia is especially well placed to contribute to this global energy transformation.35
8.28
Baldwin et al submitted that 'renewable energy can and will play an increasingly important role in the future of northern development'.36 Councillor Jenny Hill, Board Member, Local Government Association of Queensland, and Mayor of Townsville, noted that there was an appetite for renewable energy in the Northern Australia:
The north has an opportunity in terms of setting a new frontier for Australia. Many of you know Hughenden. The mayor there, Jane McNamara, is very keen for her wind project. We're very keen for our projects around the mix of different renewables that we could use to run our eco precinct at Lansdown. There's a real opportunity for northern Australia to take the lead in advanced manufacturing using a mixture of models—whether they be pumped hydro, solar, wind—and the new technologies that are coming through, I think, will allow us in the next five to 10 years to have renewables and stabilise the grid.37
8.29
Baldwin et al noted in particular that 'Australia has the highest solar radiation per square metre of any continent, providing the best solar energy resource in the world'.38 Baldwin et al further noted that Northern Australia is 'characterised by large, sparsely populated land areas of high solar energy potential, co-located with night time wind resources, and in close proximity to export opportunities in Asia'.39 As such, Northern Australia has:
… significant comparative advantages for the large-scale production of renewable energy, both in the form of electricity through wind and solar photovoltaics and in the form of green fuels – i.e. hydrogen and ammonia.40
8.30
Baldwin et al concluded that:
Neglecting renewable energy from any resource assessment of Northern Australia is a deficit in both the near and long term, with both local and global trends indicating that the shift towards renewable energy as a preferred energy source is already underway.41
8.31
Mr Ry Collins, Project Coordinator, Economic Development, Whitsunday Regional Council, told the committee that the council views alternative energy sources as 'potential solutions to future energy problems and potential drivers for jobs'.42 Mr Collins stated:
The region's been lucky to have a number of large solar projects that have been constructed and delivered. The region sees a future for coalmining and for those coal based industries, and we're also looking at other forms of energy that may provide a solution, whether it be for the local area or to feed into the national power system. I'm very interested in potential projects around biofutures and waste to energy.43
8.32
The committee heard that there have been a range of alternative energy projects in Western Australia. Councillor Peter Long, Mayor, City of Karratha, told the committee that:
…we see renewable energy, in particular, as something sustainable that will be here when the iron ore and all the others run out. Not that they are going to run out soon, but we think that it is important that we come up with different industries which diversify our income and stabilise our community.44
8.33
Councillor Long explained that the north of Western Australia has 'the highest solar flux in the country', large areas of vacant land, and is therefore 'perfect for solar panels' for use in the production of renewable hydrogen. Councillor Long stated:
We have close relationships with Japan as one of the major owners of the North West Shelf development and with major companies as well. So we have the land, we have the sun and we have the export capability already. We're relatively close to the Asian economies which will need this renewable hydrogen, particularly Japan. So we've been working on that for quite some time. We've funded studies ourselves to look at where we should go next. We had Murdoch University and the Hydrogen Society doing some work on that. We have the Norwegian company, Yara. There's a Yara Pilbara. They have an ammonia plant and an ammonium nitrate plant. They are progressing with a renewable hydrogen project now and they've asked for federal government funding. So hopefully that will come through. That would be terrific. It would be the nation's first truly renewable hydrogen plant.45
8.34
Mr Glendon Graham, Chief Executive Officer, Mount Isa to Townsville Economic Zone, similarly described the range of renewable energy projects in Queensland and stated that 'the renewable energy story is fairly remarkable. We are certainly endowed with wonderful resources here. There's no doubt we have plenty of sunlight. In addition to that, around Julia Creek there is what they call hot rocks. Geothermal energy can be harnessed'. Mr Graham noted that infrastructure is required to allow for the transmission of such energy.46
8.35
The Shop, Distributive and Allied Employees' Association (SDA) also noted the opportunities which the 'clean-tech and renewables' sector offer Northern Australia. The SDA submitted that this sector could target not only Australia's energy demands, but those of neighbouring countries such as Timor Leste, Papua New Guinea and Indonesia. The SDA submitted:
The Northern Territory's location leaves it uniquely suited to be the energy-export hub of Australia. The vociferous demand for energy - including clean energy - in Australia's immediate north will expand over the coming years. With the collective population of the ASEAN nations expected to reach 650 million by 2050, these markets present enormous opportunities for Australia's north. This reality has informed investment decisions in the resources sector, and should be considered justification for the further exploration of alternative energy solutions to Australia's neighbours.47
8.36
The Queensland Council of Unions highlighted that the 'predominant cause of a decline in manufacturing in Australia is the exorbitant cost of power'. It submitted that 'a failure to embrace renewable energy and the sale of public assets is attributed to exponential increase in power prices that has so adversely impacted upon Australian manufacturing'.48 This was echoed by CopperString who submitted that in the North West Minerals Province centred on the towns of Mount Isa and Cloncurry:
…perhaps the most pressing issue in sustaining existing production and attracting new investment is the cost of electricity. The concentration of the electricity supply market and 100% reliance on gas fired generation means electricity in the NWMP is amongst the highest cost in the world compared to competing minerals mining and processing jurisdictions.49
8.37
Mr Walter Giordani, State Organiser, North Queensland, Electrical Trades Union, told the committee that the Australian Government should 'be looking to turn North Queensland into the renewables capital of Australia, not only with solar farms and windfarms but with more renewable storage infrastructure, like pumped hydro and solar thermal'.50 Mr Giordani stated:
We believe this situation would in turn attract new manufacturing industries, both manufacturers looking to offset their carbon footprint and new manufacturers looking to provide the renewable hardware, such as solar panels, inverters and battery storage—just to name a few. This increase in manufacturing would in turn provide good, stable permanent jobs which the region strongly requires at this time.51
8.38
CopperString noted that there is a growing expectation from export customers and investors, both domestic and international, that commodities are produced at lower carbon intensities. CopperString stated that for Northern Australia, this represents both a risk and an opportunity 'given the large amount of thermal energy resources such as coal and gas as well as world-class wind and solar resources can be combined to create a low-carbon and low-cost energy mix'. CopperString submitted that de-carbonisation should be led by industry, facilitated by government (including through the funding for common-use infrastructure), and developed as a competitive advantage for Northern Australian exports.52
8.39
Wilmar Sugar submitted that sugar mills generate base load, dispatchable and renewable energy, but have 'been marginalised in the energy debate and policy considerations'. Wilmar Sugar noted that it is a leading generator of renewable energy in Australia, but that:
In the absence of a cohesive national energy policy encompassing renewable energy, Wilmar and other millers face declining revenue and increased price volatility for the energy we export to the grid. We also fear the increasing risk of ad hoc isolation from a grid saturated at times with cheap, daylight hour solar energy. This environment creates uncertainty about further investment in energy generation.53
8.40
Wilmar Sugar concluded with a recommendation that the Australian Government develop:
…a cohesive national energy policy that addresses challenges in generation, distribution and pricing. The policy should clearly identify the role for, and value of, renewable energy and provide incentive for investment in base load, dispatchable generation.54
8.41
Other witnesses however expressed doubt regarding the reliability of renewable energy55 and noted that some renewable projects have been difficult and complex with a high cost associated with them.56 Some witnesses argued that 'gas is necessary in the transition to renewables because of the intermittent nature of the generation of renewable energy'.57
8.42
Ms Marion Scrymgour, Chief Executive Officer, Northern Land Council, offered her support for a reduction in the use of fossil fuels such as diesel, and the uptake of solar power in Aboriginal communities. Ms Scrymgour stated:
Aboriginal people and their communities are wanting to get away from expensive and polluting diesel generation, which is the only source of electricity for them. It is expensive, and it is a big impost, not just on governments but also on people living in remote communities. The Northern Territory government has rolled out some solar facilities in a number of communities. Hopefully this will expand and we'll see the amount of diesel used to generate power being reduced.58
8.43
This was echoed by Mr Roger Lloyd, Managing Director and Chief Executive Officer, Palisade Investment Partners, who noted that a large proportion of the diesel-generated electricity used in Aboriginal communities goes to treating water. Mr Lloyd stated:
I think there is a huge opportunity to be a hell of a lot more efficient with government money and get investment from the private sector using those community support funds [for the supply of low-cost energy]. It drives the skills of the communities as well. That is another benefit that we can get from that. Ultimately, bringing a cleaner, greener source of energy more cost efficiently and providing skills generation within those communities is something that we would like to be involved in.59

Native title and renewable energy opportunities

8.44
These renewable energy opportunities are already being targeted by the Asian Renewable Energy Hub which 'will generate 15,000+ MW of renewable energy in Western Australia. 3,000+ MW will be dedicated to large energy users in the Pilbara region, which could include new and expanded mines, downstream mineral processing and the large-scale production of hydrogen for domestic and export markets.'60 This development is on the exclusive possession native title land of the Nyangumarta people.
8.45
There is the opportunity for multi-generational benefits for Australian First Nations communities. Large scale developments such as these provide significant potential for First Nations benefit - primarily through negotiated access and benefit agreement making and opportunities for First Nations enterprise in services for this new industry. The Nyangumarta people are currently engaged in the process of negotiating an Indigenous Land Use Agreement (ILUA) with the developers of the AREH project.
8.46
In examining the history of agreement making practice in the extractives industry in Australia, our research (O'Neill, Thorburn and Hunt 2019) finds that broader economic and social benefits for Indigenous landholders are more likely if:
Indigenous communities and organisations are well informed and well resourced;
Indigenous communities and organisations are engaged with meaningfully in the development process;
developments are progressed in accordance with community priorities; and
developments include provision for community equity and/or ownership.
8.47
Strong government support for Native Title Representative Bodies, enabling them to provide the best possible advice and support to the native title holders negotiating these agreements, can help maximise outcomes for First Nations people from these developments.61
8.48
Carbon sequestration and emissions abatement is another emerging industry that has significant potential for success in Northern Australia. However, current funding models and policy measures have done little to secure benefits from the carbon industry for Cape York's Aboriginal people.62
8.49
Instead, much of the industry has been captured by multinational corporations and most benefits are enjoyed by people who are not from Northern Australia rather than the First Nations people who act as the underwriters. The Northern Australia agenda should recommend a review of the carbon industry model so that more of the benefits from this industry remain in Northern Australia and accrue to Aboriginal people where their land is providing carbon sequestration and emission abatement services.63
8.50
However, Mr Colin Saltmere, Director, Dugalunji Aboriginal Corporation; and Committee Member, Northern Australia Indigenous Reference Group, emphasised that the advancement of technology in areas that included the environment should not happen at the expense of people, and further noted that the establishment of better infrastructure and social outcomes is a large, outstanding issue in Northern Australia that must be resolved.64

Carbon sequestration

8.51
Carbon sequestration and carbon trading schemes seek to abate carbon emissions and 'carbon farming has become firmly established as commercial activity whereby land owners are paid for sequestering carbon and mitigating emissions'.65 The Cape York Land Council (CYLC) submitted that carbon farming 'is one of the most prospective commercial activities' in Northern Australia. As such, the Australian Government's Northern Australia agenda 'should be broadened to recognise this trend and identify supporting investment sources'.66
8.52
Professor Jeremy Russell-Smith and Dr Kamaljit K Sangha (Russell-Smith and Sangha) submitted that the rapid development and take-up, particularly by First Nations land sector organisations, of commercial 'savanna burning' carbon conservation and greenhouse gas emissions abatement projects, illustrates the enormous potential for developing innovative, culturally supportive enterprises. Russell-Smith and Sangha highlighted that savanna burning markets alone are likely to expand very significantly in the near future with the addition of proposed new carbon sequestration methods under Australia's national emissions regulatory framework.67
8.53
Russell-Smith and Sangha also noted that there has been a rapid expansion of innovative carbon market opportunities in the pastoral industry. Russell-Smith and Sangha highlighted consequential productivity benefits, including: reducing ruminant emissions through feed supplements; increasing efficiency of fertiliser use; enhancing carbon in agricultural soils; sequestering carbon through more effective stock management, revegetation and reforestation.68
8.54
The Cooperative Centre for Research on Developing Northern Australia (CRCNA) also identified that Northern Australia is home to 48 per cent of Australia's total forests, and that forestry provides sequestration and other ecosystem services, regardless of whether the trees are plantation grown or native forests. The CRCNA submitted that an opportunity to 'invest in carbon incentive and sequestration schemes' exists in Northern Australia.69

Health and human services

8.55
Beyond the critical importance of adequate healthcare as an essential service for northern communities, the healthcare industry is a significant source of employment opportunities. Nationally the health and social assistance sector is projected to be the greatest source of employment growth and demand over the next five years, continuing the trend of the past decade.70
8.56
The CRCNA identified a number of opportunities in the healthcare area, which are detailed below:
Improving the stability and cultural responsiveness of the health workforce in the North and supporting locally-led needs-based planning and research.
Substantial changes in technology, such as eHealth and telehealth technology and diagnostics, which will allow considerable improvements in the health and wellbeing of people living in Northern Australia.
Health services in Northern Australia have the potential to be at the forefront of tropical health solutions, delivered in Australia and across the booming middle-income markets of Asia and the Tropics. This includes health export opportunities to a rapidly growing and urbanising Asian region that are demanding high quality health services.
There is significant potential for the discovery of proteins, peptides and small molecules derived from tropically based parasites, spiders and marine fauna from Northern Australia that show promise as novel therapeutics for treating human inflammatory and chronic diseases or as vaccine targets, which are in global demand.
Health export opportunities include:
Health workforce education and training
Health research
Medical tourism
Knowledge transfer in workforce models; human resources planning and system administration; non-communicable disease management, and tropical and remote health.71
8.57
Mr Tony Gambling, Director of Regional Development, Regional Development Australia Central and Western Queensland, also noted that the ageing population is likely to generate significant growth in allied health and aged-care worker positions in the future.72
8.58
Witnesses highlighted the value of the healthcare industry as providing a range of employment opportunities in Northern Australia. For example, Indigenous Allied Health Australia (IAHA) submitted that:
The health workforce is a highly skilled, high value workforce with direct employment and related downstream economic impacts. Local health workforces are not only likely to be more cost effective in providing quality and sustainable services, but also to contribute more (especially over time) to local economies, communities and further development.73
8.59
Services for Australian Rural and Remote Allied Health (SARRAH) noted that in addition to providing skills and employment directly; allied health services support the health and wellbeing of individual community members which sustains optimal levels of economic participation and productivity in every sector.74
8.60
Similarly, the IAHA highlighted that 'health services underpin, enable and complement other industries, employment and quality of life in rural and remote Australia'. As such:
They are neither an alternative to nor a drain on other industry development, support or employment. Rural communities, including local employers, industries, workers and their families benefit when health services are available.75
8.61
As discussed earlier, the Australian Government has identified tropical health research as a priority for Northern Australia. The committee heard that the Northern Territory Government has also prioritised a number of tropical health research areas. Ms Claire George, Director, Industry Development, Northern Territory Department of Trade, Business and Innovation stated:
The Northern Territory government has priority on a number of those sectors in terms of development. Tropical health and research, with our strong capacity through the Menzies School of Health Research, is an area of strength that the Northern Territory currently has. Areas like the increased demand from the Indo-Pacific area, the tropical environments for increased efficiencies in relation to health and delivery and for improvements through medical health research, and the tackling of long-known problems within that marketplace…76
8.62
Ms George also noted that the Menzies School of Health Research was the beneficiary of funding from the Australian Government under the White Paper, and told the committee that any future funding for health research would be 'of strong interest to the Northern Territory government'.77
8.63
JCU submitted that tropical health and science had particular value as an export commodity to nearby countries:
Research and policy development through vehicles such as the CRCNA and the Queensland Government’s Rural Economies Centre of Excellence lead directly to tangible benefits in Northern Australia in key areas including agriculture, food and tropical health. Our proximity and geopolitical value in PNG and the Pacific, our research and expertise in service delivery for remote and underserved communities, particularly in human services and health, and our environmental expertise in land and seacare, including aquaculture and sustainable primary production represent important focus for ongoing investment.78
8.64
In giving evidence to the inquiry, Dr Allan Dale Chair, Developing Northern Australia Conference; Chief Scientist, Cooperative Research Centre for Developing Northern Australia; and Professor of Tropical Regional Development, James Cook University, noted importance of research in the north to all sectors in the region:
The ag sector and resources sector are where our traditional business has been. I would love to see the northern development agenda recognise the opportunity of other major sectors that are moving forward. And they actually all complement each other. At the heart of that, innovation, research and capability is really crucial. And it's crucial to productivity in all sectors, from agriculture to resources to human services.79

Space technology and exploration

8.65
Due to Northern Australia's particular geographical layout, it has much to offer in the area of space technology and exploration. The Australian Space Agency recently added access to space (launch capability) as one of its civil space priorities after successful lobbying from the Northern Territory Government.80 The Darwin Major Business Group submitted that Equatorial Launch Australia is well progressed on plans for its Arnhem Space Centre, which would be Australia’s first launch facility.81
8.66
Indigenous Business Australia (IBA) described in its submission how, in partnership with the Centre for Appropriate Technology Ltd, IBA has invested capital which will assist build Australia’s first earth ground station:
This proposed development, supported by IBA, consists of a ground station with related infrastructure and connectivity (including two satellite dishes). The construction will be undertaken by CfAT.
The investment by IBA in the venture will bring new jobs and economic opportunities to Aboriginal and Torres Strait Islander people in Central Australia. In addition, this project will enable an Indigenous company in Central Australia to be a leading participant and key player in the burgeoning global satellite and space industry.82

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    Trade and Investment Queensland, Regional investment opportunities: North Queensland and Far North Queensland, https://www.tiq.qld.gov.au/invest/regional-investment-opportunities/ (accessed 22 April 2021).
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    Government of Western Australia, Guide to industries, https://migration.wa.gov.au/working-in-western-australia/guide-to-industries (accessed 22 April 2021).
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    Mr David Lynch, City Economist, Townsville City Council, Committee Hansard, Townsville, 9 October 2019, p. 18.
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    Mr Lynch, Townsville City Council, Committee Hansard, Townsville, 9 October 2019, p. 19.
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    Our North, Our Future: White Paper on Developing Northern Australia, p. 56.
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    Our North, Our Future: White Paper on Developing Northern Australia, p. 56.
  • 8
    Our North, Our Future: White Paper on Developing Northern Australia, p. 57.
  • 9
    Our North, Our Future: White Paper on Developing Northern Australia, p. 57.
  • 10
    Our North, Our Future: White Paper on Developing Northern Australia, p. 58.
  • 11
    Our North, Our Future: White Paper on Developing Northern Australia, p. 58.
  • 12
    Our North, Our Future: White Paper on Developing Northern Australia, p. 58.
  • 13
    Northern Australian Indigenous Land and Sea Management Alliance, Submission 62, p. 3.
  • 14
    Wet Tropics Management Authority (WTMA), Submission 16, p. 5.
  • 15
    WTMA, Submission 16, p. 5.
  • 16
    WTMA, Submission 16, p. 5.
  • 17
    WTMA, Submission 16, p. 5.
  • 18
    WTMA, Submission 16, p. 5.
  • 19
    Cairns and Far North Environment Centre, Green and Blue Stimulus Package, https://cafnec.org.au/all-campaigns/green-and-blue-stimulus-package/ (accessed 23 April 2021).
  • 20
    Ms Lucy Graham, Director, Cairns and Far North Environment Centre, Committee Hansard, Cairns, 15 December 2020, p. 58.
  • 21
    Ms Graham, Cairns and Far North Environment Centre, Committee Hansard, Cairns, 15 December 2020, p. 59.
  • 22
    Ms Graham, Cairns and Far North Environment Centre, Committee Hansard, Cairns, 15 December 2020, p. 59.
  • 23
    WTMA, Submission 16, p. 7.
  • 24
    WTMA, Submission 16, p. 7.
  • 25
    WTMA, Submission 16, p. 7.
  • 26
    Gladstone Conservation Council, Submission 1, pp. 1–2.
  • 27
    Clean Energy Council, Clean Energy Australia Report 2020, March 2021, p. 30.
  • 28
    Clean Energy Council, Clean Energy Australia Report 2020, March 2021, p. 10.
  • 29
    Giles Parkinson, 'Origin eyes huge Townsville green hydrogen project, five big battery options', Renew Economy, 26 November 2020.
  • 30
    Clean Energy Council, Clean Energy Australia Report 2020, March 2021, p. 30.
  • 31
    Imogen Hartmann, 'Gladstone hydrogen plant hits milestone', Energy, 1 March 2021.
  • 32
    Genex, 250MW Kidston Pumped Storage Hydro Project (K2-Hydro), https://www.genexpower.com.au/project-details.html (accessed 23 April 2021).
  • 33
    Sophie Vorrath, 'Sun Cable submits plans for gigawatt-scale solar manufacturing plant in Darwin', Renew Economy, 31 March 2021.
  • 34
    The Asian Renewable Energy Hub, About the Asian Renewable Energy Hub, https://asianrehub.com/about/ (accessed 23 April 2021).
  • 35
    Professor Ken Baldwin and others, Submission 10, p. 1.
  • 36
    Professor Ken Baldwin and others, Submission 10, p. 2.
  • 37
    Councillor Jenny Hill, Board Member, Local Government Association of Queensland, and Mayor of Townsville, Committee Hansard, Townsville, 12 March 2021, p. 44.
  • 38
    Professor Ken Baldwin and others, Submission 10, pp. 2–3.
  • 39
    Professor Ken Baldwin and others, Submission 10, pp. 2–3.
  • 40
    Professor Ken Baldwin and others, Submission 10, pp. 2–3. See also Mr John Hines, Submission 68, p. 4.
  • 41
    Professor Ken Baldwin and others, Submission 10, p. 2.
  • 42
    Mr Ry Collins, Project Coordinator, Economic Development, Whitsunday Regional Council, Committee Hansard, Mackay, 12 March 2020, p. 5.
  • 43
    Mr Collins, Economic Development, Whitsunday Regional Council, Committee Hansard, Mackay, 12 March 2020, p. 5.
  • 44
    Councillor Peter Long, Mayor, City of Karratha, Committee Hansard, Canberra, 11 February 2021, p. 11.
  • 45
    Councillor Long, City of Karratha, Committee Hansard, Canberra, 11 February 2021, p. 11.
  • 46
    Mr Glendon Graham, Chief Executive Officer, Mount Isa to Townsville Economic Zone, Committee Hansard, Mount Isa, 10 October 2019, p. 7.
  • 47
    Shop, Distributive and Allied Employees' Association, Submission 57, p. 13.
  • 48
    Queensland Council of Unions, Submission 90, p. 4.
  • 49
    CopperString, Submission 49, p. 4
  • 50
    Mr Walter Giordani, State Organiser, North Queensland, Electrical Trades Union, Committee Hansard, Townsville, 9 October 2019, p. 37. See also Mr Ben Driscoll, Community and Campaigns Organiser, Queensland and Northern Territory Branch, Australian Manufacturing Workers Union, Committee Hansard, Townsville, 9 October 2019, p. 38.
  • 51
    Mr Giordani, North Queensland, Electrical Trades Union, Committee Hansard, Townsville, 9 October 2019, p. 37. See also Mr Ben Driscoll, Community and Campaigns Organiser, Queensland and Northern Territory Branch, Australian Manufacturing Workers Union, Committee Hansard, Townsville, 9 October 2019, p. 38.
  • 52
    CopperString, Submission 49, p. 4
  • 53
    Wilmar Sugar, Submission 53, p. 9.
  • 54
    Wilmar Sugar, Submission 53, p. 9.
  • 55
    Mrs Vicki Rigg, Executive Director, Palisade Investment Partners Ltd, Committee Hansard, Townsville, 12 March 2021, pp. 40–41.
  • 56
    Councillor Jane McNamara, Mayor, Flinders Shire Council, Committee Hansard, Townsville, 9 October 2019, p. 19.
  • 57
    Mr Roger Lloyd, Managing Director and Chief Executive Officer, Palisade Investment Partners, Committee Hansard, Townsville, 12 March 2021, p. 40; Mrs Vicki Rigg, Executive Director, Palisade Investment Partners Ltd, Committee Hansard, Townsville, 12 March 2021, p. 40.
  • 58
    Ms Marion Scrymgour, Chief Executive Officer, Northern Land Council, Committee Hansard, Darwin, 6 November 2019, p. 14.
  • 59
    Mr Lloyd, Palisade Investment Partners, Committee Hansard, Townsville, 12 March 2021, p. 40.
  • 60
    Professor Ken Baldwin and others, Submission 10, p. 3.
  • 61
    Professor Ken Baldwin and others, Submission 10, pp. 3–4.
  • 62
    Cape York Land Council, Submission 58, p. 18.
  • 63
    Cape York Land Council, Submission 58, p. 18.
  • 64
    Mr Colin Saltmere, Director, Dugalunji Aboriginal Corporation; and Committee Member, Northern Australia Indigenous Reference Group, Committee Hansard, Mt Isa, 10 October 2019, p. 29.
  • 65
    Cape York Land Council, Submission 58, p. 19.
  • 66
    Cape York Land Council, Submission 58, p. 19. See also Gladstone Conservation Council, Submission 1, p. 2.
  • 67
    Professor Jeremy Russell-Smith and Dr Kamaljit K Sangha, Submission 11, p. 4. See also Cooperative Research Centre for Developing Northern Australia, Submission 15, Attachment 2, p. 35.
  • 68
    Professor Jeremy Russell-Smith and Dr Kamaljit K Sangha, Submission 11, p. 4.
  • 69
    Cooperative Research Centre for Developing Northern Australia (CRCNA), Submission 15, Attachment 2, p. 31.
  • 70
    Services for Australian Rural and Remote Allied Health (SARRAH), Submission 66, pp. 3–4.
  • 71
    CRCNA, Submission 15, Attachment 2, pp. 36–37.
  • 72
    Mr Tony Gambling, Director of Regional Development, Regional Development Australia Central and Western Queensland, Committee Hansard, Mackay, 12 March 2020, p. 11.
  • 73
    Indigenous Allied Health Australia (IAHA), Submission 61, p. 3.
  • 74
    SARRAH, Submission 66, p. 4. See also IAHA, Submission 61, p. 3.
  • 75
    IAHA, Submission 61, p. 2.
  • 76
    Ms Claire George, Director, Industry Development, Northern Territory Department of Trade, Business and Innovation, Committee Hansard, Darwin, 6 November 2019, p. 3.
  • 77
    Ms George, Industry Development, Northern Territory Department of Trade, Business and Innovation, Committee Hansard, Darwin, 6 November 2019, p. 3.
  • 78
    James Cook University, Submission 42, p. 2.
  • 79
    Dr Allan Dale, Chair, Developing Northern Australia Conference; Chief Scientist, Cooperative Research Centre for Developing Northern Australia; and Professor of Tropical Regional Development, James Cook University, Committee Hansard, Cairns, 15 December 2020, p. 10.
  • 80
    Darwin Major Business Group, Submission 72, p. 5.
  • 81
    Darwin Major Business Group, Submission 72, p. 5.
  • 82
    Indigenous Business Australia, Submission 91, p. 13.

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