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REGIONAL AUSTRALIA:
PARTNERS IN GROWTH

STATEMENT BY

THE HONOURABLE JOHN ANDERSON, MP
DEPUTY PRIME MINISTER
MINISTER FOR TRANSPORT AND REGIONAL SERVICES

AND

SENATOR THE HONOURABLE IAN MACDONALD
MINISTER FOR REGIONAL SERVICES,
TERRITORIES AND LOCAL GOVERNMENT

22 MAY 2001

© Commonwealth of Australia 2001

ISBN 0642 45750-6

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from AusInfo. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Legislative Services, AusInfo, GPO Box 1920, Canberra ACT 2601.

Contents

Overview

Regional Australia: Partners in growth

Regional Budget Highlights

Income support and employment assistance
Communications
Roads and rail
Environment
Health
Structural adjustment
Flood mitigation

Equity of Services

Employment

Australians Working Together - Helping People to Move Forward
Job Network
Work for the Dole
Indigenous employment
Small Business Enterprise Culture Programme
Employee Entitlements Support Scheme

Family services

Trusts and companies
Centrelink services to regional Australia
Family Assistance Office
Legal and family law
Measures for older Australians
Initiatives for women
Stronger Families and Communities Strategy
National research and education strategy to prevent problem gambling
Child care services
Jobs, Education and Training Programme
The Reconnect Programme

Health and aged care

Regional health initiatives
Alcohol Education and Rehabilitation Foundation
More Options, Better Outcomes in Mental Health
Restructuring rural and urban fringe aged care
Community visitors scheme
Update on ongoing rural health initiatives
Veterans' Affairs
Sport: Backing Australia's Sporting Ability - A More Active Australia

Education and training

Youth Pathways Action Plan Taskforce report: Footprints to the Future
Higher education places for regional universities and campuses
New on-line initiatives mean more educational support for rural and regional Australia
Rural and Regional Australia benefits from Vocational and Education training programmes
Assistance for Isolated Children Scheme
Country Areas Programme
Indigenous education programmes

Australia's Territories

Indian Ocean Territories
Jervis Bay Territory
Norfolk Island

Communications and information technology

Government's response to the Telecommunications Service Inquiry
New Connections Toolkit
ABC/SBS funding
Regional Equalisation Plan: digital television services
Regional Communications Partnership
Television Fund
ABC Local Radio Self-Help Rebroadcasting Subsidy Scheme for cyclone-incident areas in northern Australia
ABC capital works programme
SBS Self-Help Retransmission Subsidy Scheme
Universal Service Obligation
Digital Data Service Obligation
Information Technology Online Programme
Social Bonus initiatives in telecommunications

Arts

Maintenance of the funding base of the Cultural Development Programme
Renewed support to the Regional Arts Fund
National Regional Arts Volunteer Training Programme
Regional Arts Panel
OZeCulture: eBusiness for cultural organisations
Federation Fund initiatives in regional Australia

Economic and Business Development

Regional infrastructure

Roads
Rail
Torres Strait infrastructure
Indigenous housing
Defence infrastructure

Industry and science

AusIndustry
Innovation - Backing Australia's Ability
Invest Australia

Industry sector-specific initiatives

Minerals and energy
Agriculture and forestry
Shipbuilding and shipping
Improvements in search and rescue arrangements
Aviation
Automotive
Tourism
Textiles, clothing and footwear
Space

Fostering business

Australian Competition and Consumer Commission Initiatives
Australian Taxation Office: service delivery initiatives in regional and rural Australia
Business Entry Point
Business incubators
Regional Assistance Programme
Area Consultative Committees
Dairy Regional Assistance Programme
Exports and investment

Sustainable natural resource management

Natural Heritage Trust
The National Action Plan for Salinity and Water Quality
Great Artesian Basin Sustainability Initiative
Murray - Darling Basin
Greenhouse international policy and reporting, and greenhouse sinks
Domestic greenhouse policy development expenses
Bush for Greenhouse
Renewable Remote Power Generation Programme
Administration of the fuel quality legislation
National Pollutant Inventory
Great Barrier Reef Marine Park
Wildlife programmes and biodiversity conservation responsibilities
Conservation of rural and regional historic hotels
Goondiwindi Serpentine Water Park
Cape York Natural Heritage Trust Plan
Lake Eyre Basin management arrangements
Lake Eyre Basin Agreement
National Oceans Office
ChemCollect
Community-based Rabbit Control Programme
Diesel and Alternative Fuel Grant Scheme

Community empowerment

Community partnerships

Regional Solutions Programme
South West Forests Structural Adjustment Package
Commonwealth Flood Assistance Package for Central and Northern New South Wales and Southern Queensland
Federal Flood Mitigation Programme
Follow-up to the Northern Australia Forum
Local government
Immigration

Creating capacity

Stronger Families and Communities Strategy

Service delivery

More Accessible Government
Remote Communities Liaison Service
Rural Transaction Centres Programme
Bureau of Meteorology
AUSLIG

Overview

Regional Australia: Partners in growth

Since coming to office in 1996, the Federal Government's policy agenda has been firmly directed towards ensuring Australia faces its future with confidence and certainty.

As a nation, we are operating in an international economic environment - the decisions we have made will ensure Australia remains strong, competitive and technologically advanced in this new century.

The Government's economic management has achieved sustained low inflation and low interest rates, boosted employment growth, provided a strong platform for national development and international investment, and seen our country continue to prosper despite difficult and uncertain international circumstances.

In recent times, the global economic outlook has again become clouded, but given the reforms we have made, we can be confident of Australia's economic strength.

The Government recognises, however, that globalisation and structural reform have been difficult for some sectors of our community. While many regions are reaping the benefits of economic reform and successfully attracting national and international investment across a broad range of industries, others are continuing to struggle with change.

This Government's goal is to ensure that all Australians share in the wealth of the nation and the opportunities presented in this new century, regardless of where they live.

We have been listening to what communities are saying about what `a future' in remote, rural and regional Australia should mean. We have heard that communities want governments to invest in the building blocks of development - health, education, communications and a sustainable environment. We have done so, and we will continue to do so, to help communities in regional Australia remain strong and resilient.

We will also continue to ensure that Australia has a strong economy capable of delivering employment growth. However, we will focus our attention more strongly on the impact of economic and social policy on individual communities.

The Government is committed to addressing the challenges of change in partnership with rural and regional communities, the private sector and all spheres of government. Two major forums - the Regional Australia Summit held in October 1999 and the Northern Australia Forum held in October 2000 - and an intensive series of local consultations have identified the priority areas for action.

These include, for example, improving access to essential services, upgrading physical infrastructure, designing more flexible assistance programmes, addressing major environmental concerns and, importantly, empowering communities to drive their own futures.

The Government's policy responses in previous Budgets, and again in this year's Budget, strongly reflect these priorities.

For example, in its response to the Telecommunications Service Inquiry, the Government is providing more than $163 million over five years to ensure Australians living in regional and rural communities have access to a decent, affordable and reliable phone service. The funding will strengthen the Customer Service Guarantee and Universal Service Obligation, improve and extend mobile phone coverage, provide for better quality and faster access to dial-up internet services, improve payphone and other services for Indigenous communities in remote areas, and assist significant telecommunications projects in the education and health services sectors.

Measures to enhance rural nursing opportunities, totalling $117.3 million over four years, reinforce our policy commitment to rebuilding a quality health workforce in rural and regional Australia by encouraging people living in rural Australia to consider nursing as a career and providing incentives for doctors to employ nurses within rural practices.

The allocation of $1 billion over five years for the extension of the Natural Heritage Trust will continue to address the many environmental challenges facing this nation, while the $1.4 billion National Action Plan for Salinity and Water Quality will address two of the most critical issues facing our regions. The Government will also contribute $75 million to a joint Federal, New South Wales and Victorian Government effort to improve the environmental flows down our magnificent Murray River.

The largest Budgetary allocation in almost a decade - more than $1.8 billion in 2001-02 - is being directed towards our nation's roads. This includes $722.3 million for local governments and $48.8 million to help eliminate around 400 crash `black spots', almost half of which are in rural and regional areas. Another $110 million in 2001-02 will be directed towards the $1 billion Alice Springs to Darwin railway, which will generate 2,000 jobs during its three-year construction.

We have recently seen the devastation exotic diseases such as foot and mouth can wreak on agricultural industries. The Government is providing around $600 million over five years to strengthen our defences against the threat of such diseases.

The Federal Government is also committed to supporting individuals and families when they need it, no matter where they live.

An increase to the maximum pensioner rebate and low-income aged persons' rebate will help take the pressure off some of the more vulnerable members of our community by enabling pensioners and self-funded retirees to earn substantially more income before they have to pay income tax.

The Government has also listened to the concerns of farmers in implementing its changes to the treatment of private trusts and private companies, to ensure that `succession planning' for farms is not adversely affected. It is also providing a $17.4 million over three years extension to the Rural Financial Counselling Service.

Through our welfare support system, Australia provides a strong safety net for when people need it most, but that system can be improved, particularly for those of working age.

A $480 million over four years boost to Centrelink to provide more assistance to people who are having difficulty finding or holding down a job is another critical component of this year's Budget. With almost half of this funding to be spent in regional Australia, the package will significantly enhance services for people living beyond the major metropolitan centres, particularly in areas where unemployment remains high. An additional $112 million is also being provided to the Job Network, with 40 per cent of that funding to be spent in rural and regional areas to ensure all Australians get a fair go.

Specific initiatives to be undertaken with this funding include expanding job search facilities in rural Australia, reducing disincentives to taking up intermittent and casual work (such as harvest work), improving older workers' chances of getting a job, and promoting self-reliance for Indigenous people.

Education, too, remains a strong focus, being a critical plank for future growth. The Government is providing funding for an additional 670 undergraduate student places for regional higher education institutions and campuses, with the number rising to more than 1,800 places per year as students continue through the system.

These initiatives build on the solid foundations that have been laid in previous Federal Budgets, foundations that include the $309.4 million Agriculture - Advancing Australia Package; $562.1 million Regional Health Strategy; $250 million Networking the Nation Programme; $260 million Regional Equalisation Plan; $240 million Stronger Families and Communities Strategy; the Regional Solutions and Rural Transaction Centre Programmes; and region-specific structural adjustment measures such as the $1.8 billion dairy package.

These substantial measures are aimed at improving rural and regional access to essential health, telecommunications, community and financial services. Importantly, they are also helping individuals and communities to identify and develop local solutions to local problems.

The Government also believes in celebrating what it is to be Australian, particularly in this year of the Centenary of Federation. The Centenary of Federation Fund is helping to support a broad range of projects across Australia, including many in regional areas, which will make a significant and ongoing social and cultural contribution to local communities.

This Government has, and will continue to respond to the challenges that Australians, no matter where they live, rightly expect their government to manage.

Our sound macro and micro-economic management of the Australian economy, and specifically tailored policy initiatives, are beginning to make a real difference in regional Australia. Many communities are discovering new industries and are beginning to reap the benefits of diversifying their economic base, while those still reliant on traditional agricultural industries are also benefiting from booming export markets for our commodities.

We have embraced, and will continue to work towards, achieving the national goal for the future development of regional Australia articulated by the Regional Australia Summit Steering Committee -

A strong and resilient regional Australia which, by 2010, has the resources, recognition and skills to play a pivotal role in building Australia's future and is able to turn uncertainty and change into opportunity and prosperity.

Regional Budget Highlights

Budget initiatives highlighted in this section are covered in more detail in the main body of this Statement, as well as in the Budget papers. Highlights for 2001-02 include:

Income support and employment assistance

A $480 million boost to Centrelink will provide more assistance to people who are having difficulties in finding or keeping a job. Measures that particularly affect regional Australians include:

In addition:

The Working Credit initiative will benefit rural workers in seasonal jobs such as harvest work, allowing the smoothing out of income over time and removing disincentives to report earned income.

Changes to trusts and companies address farmers' concerns about succession planning. From 1 January 2002, the Social Security means test treatment of private trusts and private companies will change so that the assets and income of these structures will be attributed to the person who controls, or has contributed significant assets to, the structures.

The training credit for Work for the Dole and voluntary work includes expenditure of around $20 million in regional Australia.

Communications

As part of its response to the Telecommunications Service Inquiry report (the Besley Report), $163.1 million is being provided to improve telecommunications access in regional Australia. Initiatives include:

Roads and rail

The largest allocation in almost a decade - $1,819.6 million - is being directed to the nation's roads, including around $722.3 million to local governments for discretionary roads spending and $48.8 million to eliminate approximately 400 crash `black spots', about half of which are in regional areas.

The Government is committing $110 million in 2001-02 to the $1 billion Alice Springs to Darwin railway, which will generate 2,000 jobs during its three-year construction.

Environment

A $1 billion extension of the Natural Heritage Trust will continue to address the many environmental challenges facing Australia, this will build on the the $1.4 billion National Action Plan for Salinity and Water Quality, addressing two of the most critical issues facing rural and regional areas. The Government will also contribute $75 million to a joint Federal, New South Wales and Victorian Government effort to improve the environmental flows down the Murray and Snowy Rivers and key alpine rivers.

Health

Measures worth $117.3 million provide incentives for doctors to employ nurses within rural practices, and encourage rural Australians to consider nursing as a career, or to return to nursing through:

Structural adjustment

Assistance worth $26.4 million over four years for the Agricultural Development Partnerships programme. This will support structural adjustment targeted to specific agricultural industries and regions experiencing significant problems that are affecting farm profitability and sustainability.

The South West Forests of Western Australia Structural Adjustment Package responds to changes in the timber industry in that region, by providing $5 million to support industry diversification and employment generation.

In addition $17.4 million over three years will extend the Rural Financial Counselling Service, which assists businesses in rural Australia - particularly farm businesses - to deal with a range of financial pressures and adjustment issues.

Flood mitigation

A new Federal Flood Mitigation Programme of $40 million over four years will assist State and Territory Governments and local agencies to reduce the risk and damage caused by floods in regional, rural and outer metropolitan areas of Australia. It will boost safety, economic prosperity and employment in those parts of Australia most prone to flood events and cyclone-related flooding.

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