2. The Challenge for Regional Australia
Australia's regions play a vital role in the economic development of the nation — generating 65 per cent of Australia's export income and employing over a third of Australia's workforce.
Rural and regional Australia faces a number of significant challenges — and the Government will work in partnership with our regional communities to deal with these pressing challenges.
Skill shortages
There are major skill shortages evident across regional Australia. Whether it is doctors, tradespeople, nurses, teachers or engineers, access to skilled professionals is more difficult than for metropolitan businesses.
Regional businesses that want to acquire skills have diminished access to education and training. For example, the existing training system is not flexible enough to address the problems of a business owner having to spend three, or more, days away to attend a half-day course in the city, or to lose a valued employee for up to four weeks while they undertake block training for their apprenticeship.
Infrastructure
Infrastructure provides the platform for future business. Our infrastructure is under pressure with growing levels of demand. Better planning and coordination are vital to ensure that infrastructure investment is efficient and appropriately targeted.
For regional Australia, access to good infrastructure is a critical priority. Freight must be able to move seamlessly from farm gates to kitchen tables and from mines to ports. Better regulation and the use of new technology, particularly in the areas of transport, communication, energy and water, will make our existing infrastructure more efficient and productive.
Communications
To succeed and grow in today's global market, regional economies and their businesses must be able to connect with the rest of the country and the world. Over the past decade, communication technologies such as mobile phones, the internet and email are now an essential part of life. Service levels in rural and remote areas are widely regarded as lagging behind those in urban areas. The high capital costs of upgrading telecommunications services in rural and remote Australia, and the relatively poor returns that are likely from such investments, have generally deterred spending on such infrastructure.
Climate change and environmental pressures
Climate change represents a significant challenge for rural and regional Australia, with many communities having endured one of the worst droughts on record over the past six years. Ongoing and increasing climate variability will require rural and regional communities to adapt to maintain social and economic prosperity.
There is an urgent need to start planning for a future that is likely to mean reduced water availability for towns, farms and industries; increased frequency of extreme weather events such as drought and flooding; and changed crop yields and quality.
As well as a changing climate, there are a broad range of other environmental pressures facing regional Australia that need ongoing action. These include salinity, weeds, loss of biodiversity, water management, soil erosion, feral pests and degradation of river systems.
Costs of inaction are high, and if not addressed would be borne by future generations. Land and water degradation and weeds are already estimated to cost up to $7.5 billion a year. Most environmental issues require a long-term commitment to address degradation and embed a more sustainable approach to their use.
Biosecurity
As a nation that exports around two-thirds of its total agricultural production, the success of Australia's primary industries has been built on access to international markets.
Increased movements across borders also mean that the risk of exotic pests and diseases is far greater than ever before. The Government is working to deliver a robust biosecurity and quarantine system in Australia to protect our favourable pest and disease status. In addition to the recently completed inquiry into the outbreak of equine influenza in Australia, a review of quarantine and biosecurity arrangements now underway, headed by Roger Beale AO, is expected to report by 30 September 2008.
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