Kristy McBain (Eden-Monaro, Australian Labor Party, Minister for Regional Development, Local Government and Territories) Share this | Hansard source

The Northern Australia Infrastructure Facility Amendment (Miscellaneous Measures) Bill 2023 seeks to amend the Northern Australia Infrastructure Facility Act 2016 and extend eligibility for NAIF financing to Christmas Island and the Cocos (Keeling) Islands, affectionately known across parliament as the Indian Ocean Territories. This is a fantastic outcome for those external territories and one that we have been advocating for. The NAIF provides a basis for economic growth in Northern Australia and helps to stimulate population growth.

The bill amends section 5 of the act to incorporate the territory of Christmas Island, the territory of the Cocos (Keeling) Islands and the territorial sea adjacent to these territories within the definition of the term 'northern Australia'. By extending the definition of northern Australia in this manner, the bill will enable NAIF to provide financial assistance for the development of economic infrastructure that provides a basis for growth or that stimulates population growth in the IOTs. Enabling the Indian Ocean Territories to access NAIF financial assistance will support opportunities for residents and for businesses to diversify, and it will create more economic development opportunities across the IOTs. The economies of the IOTs exist in very unique circumstances, and there are potential benefits for investment in sustainable diversification. The NAIF can assist proponents in the Indian Ocean Territories to realise this potential by providing concessional loans and other financing solutions to eligible projects.

As the minister for territories, I want to congratulate my colleague and friend the Minister for Resources and Minister for Northern Australia, Madeleine King, on taking this important step to include the IOTs in the NAIF. Yesterday I heard the Leader of the Nationals speaking about how wonderful it was that the IOTs are now a part of the NAIF. It begs the question: why wasn't it done by those opposite when they were in government for over nine years?

The Indian Ocean Territories are unique and they deserve access to funding that will help them diversify their economies. We know that providing economic assistance and growth in our remote territories is incredibly important, and it's taken a Labor government to ensure that our external territories are starting to have access to important programs such as the NAIF. Under the previous government, we saw external territories excluded from grants programs and frameworks frequently, and it is a shame, because we know that so many people in our external territories could effect change by having access to grants available from the Australian government. Since becoming the minister, it has been one of my key priorities to ensure that our external territories are able to access Australian government grants. I am pleased to report the process is going well, and I am looking forward to updating the House in the future about this progress.

On my recent trip to the Indian Ocean Territories, to both the Cocos (Keeling) Islands and Christmas Island, it was fantastic to see some of the bespoke grant opportunities that have been provided working out so well. Agricultural grants in the Cocos (Keeling) Islands show a new and different way of growing fresh food and making that fresh food easier to access and more available to locals. We're seeing renewable energy grants which can harness the availability of sun and wind power and reduce the reliance on imported diesel, which is hugely important across the Indian Ocean Territories. Innovation grants are helping small businesses get off the ground and helping communities who need support to make sure that they've got that lift behind them as they first get into a new business.

Since its inception, for every dollar invested by NAIF we've seen a return of $2.70 unlocked by the private sector. That's a fantastic return on investment that we want to see continue to grow. I think there will be some fantastic outcomes for the Indian Ocean Territories having access to NAIF. There are some fantastic ideas. My colleague the member for Lingiari is wandering in at the moment, and she is the local representative for the Indian Ocean Territories. She too knows how fantastic those communities are over there—their innovation, their desire to be more resilient and their desire to move away from having to wait for ships for fresh food, diesel and other supplies from the mainland. They want to do more for themselves, but they need a little bit of assistance every now and then to get some of these projects off the ground. So it was fantastic to see some of the agricultural trials being run on Cocos island. It is fantastic to see the innovation that is coming forward, such as fresh food being grown entirely in buckets of water without entering the soil at all. There are some really exciting things happening.

There is more to do in this space, which is why our government's committing to extending NAIF to include the Indian Ocean territories is such a win for two communities that are already doing so much. It is going to be a fantastic opportunity for the residents and businesses and community across the Indian Ocean territories to be able to apply to NAIF to see what else can be done across their communities. We know that they have ongoing challenges. We know that there have been significant issues with coastal erosion on Cocos island. We need to make sure that we are working with those communities on how best to protect them but also on how best to enhance the other opportunities they have on the island. Christmas Island is a beautiful place, one with enormous opportunity and potential. We've seen that already with a number of businesses there, but there is so much more to do. In my recent trip there, the desire to have bespoke tourism opportunities available on Christmas Island was something that the community was crying out for—what else can we do to attract people to the island to holiday?—but also to put in those businesses investments. Extending NAIF to include the Indian Ocean territories is going to give some certainty and confidence to those people on the islands who are keen to invest and grow businesses but also give some certainty and confidence to those people who aren't permanently on the island but who want to look at what they can do to increase the business and tourism opportunities across the island as well.

Again, I commend my colleague Minister King for the work she has done in extending the NAIF program to include the Indian Ocean territories. It will be a real win for those communities. I know my colleague the member for Lingiari is especially excited about this. There has been a tonne of work advocating to make sure that we include the Indian Ocean territories as part of NAIF. It is a job that should have been done by the previous government a lot earlier but is one that I know the residents of those islands will be very happy has been done. Their advocacy has not gone unnoticed, and we thank them for their continued support of the Australian government to make sure that they can look at the opportunities that exist for them to do more for their own communities, to grow their own foods and to look at the different ideas they have around energy rather than relying on imported diesel all the time. So congratulations to Minister King, thank you to the member for Lingiari and a big congratulations to the residents of the Indian Ocean territories for their continued advocacy.

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