House debates

Monday, 23 November 2009

Committees

Infrastructure, Transport, Regional Development and Local Government Committee; Report

8:51 pm

Photo of Ms Catherine KingMs Catherine King (Ballarat, Australian Labor Party) Share this | | Hansard source

On behalf of the Standing Committee on Infrastructure, Transport, Regional Development and Local Government, I present the committee’s report entitled The Global Financial Crisis and regional Australia, together with the minutes of proceedings and evidence received by the committee.

Ordered that the report be made a parliamentary paper.

From the CBD of Sydney to the CBD of Burnie, the effects of the global financial crisis, or the GFC, have been felt around Australia. Regional Australia has been described as the economic backbone of the nation’s prosperity. The regions are home to major export industries as well as small- and medium-sized businesses. Many of these have struggled during the crisis and behind each of these businesses are owners and employees, some of whom have faced the prospect of business closure, reduced working hours and job losses.

It was the committee’s intention in undertaking this inquiry to assist the government to better understand how economic downturns affect regional Australia so that it will be in a better position to formulate regional development policy aimed at strengthening the economic resilience of our regions. In doing so, the committee travelled to each state and territory over the course of this year. The evidence gathered told a story about how the crisis had affected regional business, populations and local government.

The crisis unfolded as the committee gathered evidence, so it was often difficult to ascertain the extent of its impact and the outcomes of government assistance. Nevertheless, the committee has made recommendations and comments where appropriate. Its report begins by examining industry sectors such as manufacturing, resources, tourism, retail and construction. In each case, the committee has noted the impact of the GFC on the sector and the ways in which the government is assisting.

The committee recommends that the government examine the use of structural adjustment funds as a response to economic downturns and their ability to assist small business. The committee has also recommended increased funding for the TQUAL Grants program, increased cooperation in identifying key tourism markets and setting priorities for marketing those locations as part of its investigation into regional tourism. Discussion about the government’s bank guarantee scheme has led the committee to support a review of its differential pricing structure and to comment on banking competition in regional Australia.

Support for small business is particularly important during these periods and, as such, the committee believes that the Small Business Advisory Service should continue to operate beyond its current two-year funding commitment. Small business can be further assisted by an increase in the number of AusIndustry representatives in regional Australia. Regional Australians are resilient people but, like everyone, from time to time they need assistance. Should unemployment continue to rise, the committee believes there may be a case for the introduction of a national unemployment mortgage assistance program, provided its impacts have been fully considered by government.

The GFC has demonstrated the need in regional Australia for the provision of localised, collective social services, so the committee has recommended increased funding to the Department of Human Services in order to expand its co-location site trials and to increase its local service provision activities. The work of the local employment coordinators may also serve as an example of how pathways to coordinated service provision may be enhanced. Offices of the Department of Human Services are located throughout regional Australia, assisting local populations but also generating employment opportunities.

To further grow employment options in regional Australia, the committee recommends that the government examine options for locating government departments or functions of government departments into regional areas. The GFC has not been the first nor will it be the last economic challenge faced by regional Australia. Its ability to respond to the future will depend on individual regions reaching their growth potential. The committee believes that this will only occur if local strategies are underpinned by Commonwealth government policies focusing on infrastructure, education and business support.

The Regional Development Australia network presents one option through which government can further policies that assist in the development of regional Australia. Its success will be based in part on its ability to generate region-specific community and economic development planning that is supported by the region, to maintain productive levels of cooperation between the three tiers of government, and to facilitate cooperation between various agencies and government programs in the region.

The GFC has highlighted the importance of having a mechanism such as RDA which can be used to advance regional development objectives. The crisis has also presented regional Australia and governments with an opportunity to examine the impact of change on regional Australia and to test policy responses. This inquiry has been greatly assisted by the help of committee members and I particularly acknowledge the deputy chair, the member for Hinkler, Mr Neville. Additionally, I thank the committee secretariat: Peter Keel, Julia Morris, Michael Crawford, Sophia Nicolle, Adrienne Batts, Kane Moir and Alison Wardrop. Once again, I want to thank all regional Australians who have participated in this inquiry. There is great spirit, drive and innovation within Australia’s regions and I am not surprised by the manner in which regional Australia has faced the challenges posed by the GFC. (Time expired)

8:57 pm

Photo of Robert OakeshottRobert Oakeshott (Lyne, Independent) Share this | | Hansard source

I rise as a committee member for this inquiry and I also assume to speak in the place of the deputy chair, the member for Hinkler, who is away. I congratulate the chair, the member for Ballarat and the full committee for a report that is essential reading for all members who represent regional areas and for those who, at a community level, are involved in regional development.

As a new member, I probably did not get to experience and learn from some of the other regions of Australia, but I was certainly a willing participant on behalf of my region. I enjoyed and valued the readings that came through and the substantial submissions that were put in from around Australia. I also enjoyed and valued the wide-ranging discussions that took place during committee meetings here in Canberra.

From my region I was drawing similar conclusions to the ones that this report has drawn. I am pleased that the foreword identifies the difficulty in putting together a report—on an inquiry that is happening almost in parallel with events as they unfold—on the impacts of a global financial crisis on regional Australia. In light of those circumstances, I think they have done an excellent job in tapping into some of the incredible resilience found in regional Australia, including the positive stories that are there for all to see, some of the challenges that are faced, and the unknowns, as we go into the first period without real stimulus. There will be no cheques in the letterbox this Christmas. The implications of that going into next year will be of interest to all of us to see whether we have been the lucky ones in surviving the GFC.

I got involved in this committee when I first turned up in this place because of an interest in local governments that had had some pretty significant exposure—with almost 25 per cent of their investments in collateralised debt obligations, or CDOs. On my arrival in this place in September 2008, a month before the stimulus package went through, there was certainly some interest on my part, and I made comments in my first speech about trying to get a handle on just how much public money had been lost.

Photo of Peter SlipperPeter Slipper (Fisher, Liberal Party) Share this | | Hansard source

Order! I apologise to the honourable member for Lyne. However, while his time has not expired, the time allotted for the debate has expired. I imagine the honourable member for Ballarat would like to move a motion in connection with the report to enable it to be debated on a later occasion.

9:00 pm

Photo of Ms Anna BurkeMs Anna Burke (Chisholm, Deputy-Speaker) Share this | | Hansard source

I move:

That the House take note of the report.

In accordance with standing order 39, the debate is adjourned. The resumption of the debate will be made an order of the day for the next sitting.