OPENING REMARKS - AUSTRALIAN COUNCIL OF LOCAL GOVERNMENT

GS018/2008
18 November 2008

1:15pm - 2:45pm

Theme: Strengthening regional economies, including broadband, communications and tourism.

Introduction

Thank you for joining me today and welcome to this session on strengthening our regional economies, including broadband, communications and tourism.

During this session we will discuss the role of a strong economy in raising the living standards of all Australians, and how local government can use communication and infrastructure to achieve this.

And, due to its ever increasing value in local communities and local economies, I have also asked our Minister for Tourism, Martin Ferguson, to make some opening remarks.

To get us started, we will have a few short presentations from our speakers before opening the floor up for discussion.

Our purpose is to come up with about five priorities and issues under our theme to help inform the future work of the ACLG and of local and federal governments.

But before we do, I'd like to set the scene a little.

Australian Council of Local Government

The Rudd Labor Government is serious about forging a new nation-building partnership with local government.

This relationship is not only about a new way of governing, but also about making sure that local government is part of our nation-building reform agenda.

The Rudd Government has a strong commitment to securing the future of a viable and independent local government structure in Australia.

We have already flagged significant areas of reform in federal-state relations through COAG, but we want to make sure that local government is included.

This is why we have established the Australian Council of Local Government - to start a new dialogue about how we can work together to improve our local communities.

We are committed to a fresh approach and we are genuinely interested in the creative and innovative ideas you will generate today.

We want to engage with you because we know that empowered local communities make the greatest contribution to the well being of their residents and to the national interest.
Today we are here to listen and to talk about the challenges they face. Discussion will focus on ideas to improve both federal and local government policies.

Strengthening regional economies

Each regional Australian economy is unique, but they face similar challenges to strengthen their local economic performance. These challenges include:

• the current global financial crisis;
• skills shortages; including health and education specialties
• attracting new residents
• housing constraints; and
• water, energy

The Government recognises the challenges and while we acknowledge there will be gaps and needs we are putting in place a number of strategies to address them. For example, you will be aware that the Government has recently announced a $10.4 billion economic security strategy to strengthen our national economy.

We are also investing heavily in transport and communications infrastructure to improve regional linkages with the aim of improving regional economic performance.

This year alone, the Australian Government is investing $3.2 billion into the road and rail network, which includes almost $560 million to make an early start on a number of infrastructure projects.  We are also providing local government with nearly $1 billion to maintain and improve local roads.

Local government is a major contributor to regional economic development through the provision of local and regional infrastructure, the delivery of a range of local services and as leaders in planning for local areas.

The Australian Government has a new vision for strengthening Australia's local and regional economies. To achieve this, we understand that increasingly our regions need high quality infrastructure, proper communications, and incentives for businesses to grow and prosper.

The Government is determined to work with all levels of government, industry and the community to achieve better outcomes for regional areas.

To achieve this, the Government has committed:

• to the Building Australia Fund, for investment in nationally significant infrastructure;
• $176 million to provide regional Australia with the community facilities and services Simon Crean announced in the election last year - we call it the Better Regions Program;
• Nearly $1.9 billion in financial assistance grants to local councils in 2008-09 to spend on priorities including improving local roads, environment protection and community facilities. The second quarterly instalment of $466 million will be paid this week to shires and councils across Australia.

The Australian Government is also supporting regional economic development through a series of initiatives, including:

• A representative from ALGA is a member of the Regional Development Council
• We have established the Office of Northern Australia to understand the special needs of the north - I will meet separately with northern Australian mayors.
• The Government is also developing a new regional network, called Regional Development Australia (RDA), to develop strategic regional input into national programs. In establishing RDA, I am determined that local government will have a greater role, and that we and the States will work together more co-operatively in your local communities. We are also hopeful of successfully amalgamating state and territory based development commissions and authorities in to a first stop RDA.

The Australian Government is also developing a new regional and local community infrastructure program, to deliver major investments in appropriate infrastructure projects including recreational, community and environmental initiatives.

In line with the Rudd Government's national approach to infrastructure investment, our new regional and local community infrastructure program will be accountable; transparent; based on community needs; and will link to local Government and regional initiatives.

The message to regional communities is clear - this Government will listen to you and work with you.

You will not get everything you asked for but you will be heard and that will better inform us.

We will bring fresh ideas and a new approach which will harness the potential of our regions and develop them for a better future.

Broadband

The Australian Government understands that access to high-speed broadband services is critical to Australia's future social and economic prosperity.

The Government is committed to delivering top-class broadband to all Australians no matter where they live.

We are investing $4.7 billion, in partnership with the private sector, to deliver exactly that.

The Government has received a strong response to the National Broadband Network Request for Proposals and anticipates a competitive tender process.

We expected a very robust public debate when we put $4.7 billion on the table and we have not been disappointed. However, we will not be taking part in the public conjecture.

Regional Broadband Initiatives

The Government recognises the importance of telecommunications to people living in regional, rural and remote parts of Australia. 

On Budget night, the Treasurer announced that the Government had allocated $270.7 million over the next four years to fund the Australian Broadband Guarantee.

The Government has committed up to $400 million to implement its response to the recommendations of the Regional Telecommunications Independent Review Committee.

Tourism

Tourism is an important economic driver for many of Australia's 560 Local Government Areas. It continues to be Australia's largest services export industry.

Tourism's direct contribution to Australia's GDP in 06-07 was $38.9 billion, up 7.8 per cent (or $2.8 billion) on the previous year.

Tourism directly employs more than 480,000 workers across Australia and contributes significantly to regional economies. In fact, over 46 cents in every tourism dollar is spent in regional Australia.

Tourism helps to create sustainable and diverse local economies and provides business and employment opportunities for residents.

Many tourism ventures are dreams - family business, a couple risking it all to build a business - we need to back their courage and imagination.

Local Councils play an important role in determining visitor demand for their local area through tourism policy, planning strategies, investment, infrastructure, marketing and visitor servicing.

Councils in some of Australia's cities also recognise the value of tourism and are taking extra steps to develop this industry through long term tourism planning and visitor management, event tourism and marketing strategies.

Planning for tourism is important if we want to create sustainable tourism destinations with adequate infrastructure and community support. The involvement of local governments in this activity is essential for success.

Earlier this year, my colleague Tourism Minister Martin Ferguson, announced the development of a National Long Term Tourism Strategy.

The Strategy will provide a long term vision for the tourism industry and will focus on the productive capacity, or supply side, of the industry.

The Strategy Steering Committee will be consulting widely with stakeholders and has sought input from local government organisations, recognising the importance of Local Government in tourism industry development.

Once again, I welcome you here today, and I look forward to participating in this discussion.

Thank you.