REBUILDING REGIONAL AUSTRALIA
The Case of the Capital Region
STATEMENT BY THE PRIME MINISTER
AND THE MINISTER FOR SPORT,
TERRITORIES LOCAL GOVERNMENT
Canberra, 13 December 1996
REBUILDING REGIONAL AUSTRALIA
The Case of the Capital Region
The Liberal-National Government is committed to rebuilding regional Australia. The
Government's priorities of responsible economic management, microeconomic reform,
small business and families will assist regions to maximise their potential and to
contribute to a prosperous Australia.
The Coalition is committed to promoting growth, supporting small and medium sized
enterprises and assisting families in the Australian Capital Region, which comprises
south east New South Wales and the Australian Capital Territory.
The Coalition has identified three broad aspects of the region where it can, and will,
provide strong and active support.
First, Canberra, as Australia's national capital, is the home of many of the institutions.
that define our national identity.
Second, it is the seat of government and centre of national administration which
provides opportunities for business in the region to provide goods and services to
departments and agencies.
Third, the Australian Capital Region is a centre of primary and tertiary production and
it contains a major transport node which links the region with many other parts of
Australia. The region's competitive strengths include its active business community, its centres of
-higher learning and research, its well educated workforce, its proximity to the nation's
centre of administration, its clean environment, its culturally diverse population and the
quality of its rural production.
A Region in Transition
When the Coalition came to power in March this year our first task was to redress the
spending and debt excesses of the former Labor government. We inherited a legacy of
continuing high unemployment and low national savings. We have had to turn around
the 1995-96 underlying deficit of $ 10.3 billion.
We had to stop the rising tide of government debt. Commonwealth debt on issue has
risen, in the last five years alone, from $ 43 billion in June 1991 to a massive $ 1
billion in June 1996. Stopping the debt spiral and restoring sound economic
management has required some hard decisions, but decisions that could no longer be
avoided. Our strong and fair budget aimed to reduce the underlying budget deficit by
around $ 7.2 billion over the next two years.
Fiscal consolidation is essential to increase national savings and thereby our growth
potential and employment. The Australian Capital Region will maximise the benefits of
fiscal consolidation if it develops a strong and vibrant mixed economy of private and
public sector employment through enterprise, self-reliance and diversity.
The Coalition Government acknowledges that its ambitious economic reform agenda
has implications for economic growth and development in the Australian Capital
Region. Although the region is home to nearly half a million Australians, its growth
rate has decreased significantly this decade, and now stands at around one percent per
annum. Although some local government areas such as Queanbeyan and Eurobodalla
are growing more strongly, we recognise that the generally low rate of growth is
having an adverse effect on many businesses in the region.
The rate of unemployment is particularly high in Eurobodalla but it is also a major
concern in Bega Valley, Snowy River, Young and elsewhere in the region. Timber
mills have closed in Eden and Moruya, as have bank branches in many of the region's
towns. Unless corrective measures are taken, this is likely to continue into the medium
term. The public sector will remain a substantial employer in the region as well as a
purchaser of goods and services from the local private sector. The focus of regional
activity and growth must, however, progressively shift to the private sector. The
Australian Capital Region must be repositioned to take advantage of the opportunities
which are emerging within new sectors of the Australian economy and the Asia-Pacific
region. The region already has a strong and active business sector. Canberra's private sector
exceeded that of the public sector in 1989 and now accounts for 52 of total
employment. The expansion of the private sector in the region provides a sound base
for future growth in servicing the needs of government. It is also a solid platform for
exporting goods and services and rural produce to the rest of Australia and to the Asia
Pacific Region.
The Government will play its part in encouraging growth and the recent budget will
contribute towards this end. Many of our policies will directly benefit the region. For
example, the high proportion of young families in the Region will benefit from the
Government's budget initiative which provides a $ 1 billion tax break for families.
Approximately ninety percent of the region's businesses employ less than twenty
people. Small businesses will benefit from the $ 180 million per annum reduction in
provisional tax, the provision of capital gains tax rollover relief for small business with
assets up to $ 5 million and from our commitment to do away with unnecessary
regulation and other bureaucratic imposts.
The report of the Small Business Deregulation Task Force, which was chaired by
Charlie Bell of McDonald's, recently reported on ways to reduce the burden of red
tape on small business. It has made 62 recommendations covering tax, regulatory
compliance and related issues. We will be responding positively to the report by mid
February of next year.
Reduced interest rates benefit families and small businesses alike, and provide powerful
incentives to invest and to create more employment. Since March, official interest
rates have been reduced three times, reflecting progress in locking in low inflation and
the fiscal consolidation strategy.
The Government also expects the ACT and NSW Governments and regional local
governments to be competitive, to minimise their taxes on industry and the community,
to ensure that their services are efficient and keenly priced and that they impose the
minimum of regulation and red tape on businesses.
The Nation's Capital
At the heart of the region is the nation's capital. Canberra has achieved its national and
international standing as Australia's capital largely through the foresight and
commitment of Prime Minister Sir Robert Menzies. His government established the
National Capital Development Commission and transferred many departments from
Melbourne to Canberra. The Menzies Government was instrumental in establishing
such national institutions as the Australian War Memorial and the Defence
headquarters at Russell. Lake Burley Griffin was developed during his time and the
Australian National University was a major beneficiary of his government.
More recently, Malcolm Fraser's government added to the cultural and heritage
infrastructure of the nation by commencing the New Parliament House competition,
the Australian Institute of Sport, the Australian Defence Force Academy, the High
Court of Australia and the National Gallery of Australia.
There is now a substantial investment in national institutions of culture, heritage and
learning in Canberra. Already, over 1.3 million visitors come to Parliament House
each year, over 800,000 visit the Australian War Memorial and nearly half a million
come to each of the National Gallery of Australia and Telstra Tower on Black
Mountain.
The Commonwealth Government, through the National Capital Authority ( NCA), has
an integral role in the planning and development of Canberra as Australia's National
Capital. In addition to its significant responsibilities in the preparation and administration of the
National Capital Plan, the NCA has important capital works and asset management
responsibilities for areas of national significance principally the Central National Area
which includes Lake Burley Griffin, national parklands and the Parliamentary Triangle.
Only this week, Territories Minister Warwick Smith announced the appointment of Air
Marshal David Evans as the new chairman of the NCA. Air Marshal Evans is a long
term resident of Canberra, whose leadership qualities will be of great assistance to the
NCA in its future activities.
A recent study of Australian's views about their National Capital delivered a very
strong message that people are willing to attend events and activities that reflect our
national identity. They also value the ideals of the National Capital, quality national
precincts and national institutions.
In response we have broadened the responsibilities of the former National Capital
Planning Authority which we have renamed the NCA to provide for a greater focus on
strategic development and raising the awareness of the nation's capital. A priority of
the Government is to ensure that the marketing and promotion of the national
institutions, culture and heritage are properly co-ordinated
Equally, the Government is committed to ensuring that the newly structured NCA and
other Commonwealth authorities work closely with the ACT and regional local
governments and the tourist industry to develop an annual calendar of events that has a
broad-based appeal to the Australian community and to international tourists. The
Federal Government stands behind a focussed and practical tourist development
strategy.
In the financial circumstances which the Government inherited from Labor, there is
limited capacity to undertake new building programs. However, within the resources
available, the refurbishment of Old Parliament House is continuing and there is funding
for refurbishment of the Australian War Memorial and an extension for the National
Gallery of Australia.
Consideration will be given to ways in which the parliamentary zone foreshore area can
be enlived and enriched to reinforce the national institutions already present and to
provide a community focal point for national innovation and enterprise events.
Funding has been provided for site and scoping studies for the National Museum of
Australia including the Australian Institute of Aboriginal and Torres Strait Islander
Studies ( AIATSIS) and the Government appointed leading Canberra businessman, Mr
Jim Service, as the new Chairman. The Board has now completed its studies. I am
delighted to announce that the Commonwealth accepts the committee's
recommendation that the Museum will be located on the Acton Peninsula. Funding
details will be announced in the 1997-98 budget context. As a downpayment on
further work, the Commonwealth will allocate $ 750,000 for a development brief to
commence in January 1997.
We are also continuing the refurbishment of the Old Parliament House and the
Australian War Memorial as well as an extension for the National Gallery.
We must maintain our efforts to make Canberra and the region even more attractive
for Australian families to visit. The museum will add an important new element to
their appreciation of their country's culture and heritage.
These initiatives will increase economic activity during their construction and operating
phases and will also have a wider multiplier effect through the increase in interstate and
international tourism.
The Seat of Government and National Administration
Canberra plays a significant role in Australian life as the seat of government and the
centre of national administration. It Is an important meeting place for Parliamentarians,
public servants, and the many national associations that represent the interests of
businesses, and community groups.
The Government is committed to reducing the cost of administration and to purchasing
from the most efficient providers of effective goods and services. These policies
improve the effectiveness of service delivery and will provide strong incentives for
employment growth in the private sector.
The region's business community has the capacity and drive to undertake the necessary
transition from a public service centre to a broad based region of growth. The
Coalition will be providing many of the opportunities. The Minister for Administrative
Services estimates that in his portfolio alone, there will be up to 2,500 jobs created in
the private sector to largely offset any job losses stemming from the 1996 Budget.
Reforms within the Department of Administrative Services, particularly the
outsourcing of commercial activities, will greatly expand opportunities for the private
sector to compete for Government business.
I understand that the Canberra business community has expressed some concern that
the packaging of these outsourcing tenders will effectively freeze out small business.
This Government is strongly committed to increasing opportunities for the private
sector and our outsourcing programme reflects our commitment to both large and
small to medium enterprises.
When we examine how best to manage our outsourcing programme, it is clear that our
highest priority will be to maximise both efficiency and savings for the Commonwealth.
On occasion, this may lead to the packaging of tenders in large bundles more suited to
the capacity of large business. The small business sector should not, however, feel
overlooked, for such contracts include a wealth of subcontracting opportunities ideally
tailored to that sector.
Nevertheless, the Government has heard your concerns and I will ensure that all
outsourcing proposals are closely examined with a view to maximising opportunities
for small to medium enterprises.
As a first step, just yesterday, a roundtable discussion took place between the Canberra
business community and government officials in relation to outsourcing. It was agreed
that the business community would be consulted in the preparation and development of
outsourcing guidelines.
The Government has also reaffirmed its commitment to Canberra's role as the centre of
national administration through the continuation of the major Defence and Australian
Geological Survey Organisation projects and through the development of a new
headquarters for the Patents Office. Other national administration projects will be
considered in future budgets according to their relative priority and the prevailing fiscal
outlook.
The Capital Region a Centre of Economic Growth
The Commonwealth's economic reform agenda will assist regions to maximise their
potential. Equally, renewed growth in regional Australia will contribute significantly to
national micro-economic reform and will reduce pressure on infrastructure in Sydney
and Melbourne. The Government recognises the role that the Australian Capital
Region can play in this regard.
The region is already undertaking the transition from a heavy reliance on the public
service to becoming an important economic and transport centre. Canberra provides
high order commerce and other services for the entire south east of NSW, but further
reductions in transport costs will directly benefit primary producers and other
businesses in the region. The region is also well placed to take some of the pressure
off Sydney's airport and arterial roads through improved rail services and providing
direct air access to the Asia Pacific Region.
Vei-y East Traiui
The initiative of the private sector to propose the funding and operation of a high
speed rail service between Sydney and Canberra is a major demonstration of
confidence in this region and in the nation. The Coalition believes that a viable very
fast train project, with its potential to extend to Melbourne, Brisbane and Adelaide,
could potentially have a major Impact on the nation as a whole.
If the project's viability is established, it will result in a substantial investment of private
sector funds. It would generate major new construction and operational employment
and markedly reduce travel times and costs for both the business sector and the
community in the Australian Capital Region. It could potentially remove more than
five percent of the current load on Sydney Airport and reduce vehicle traffic on
Sydney's arterial road system. The environmental benefits are of a similar scale.
As I announced on 4 December 1996 the Commonwealth Government has decided to
proceed with a joint Commonwealth/ New South Wales/ ACT approach to the
investigation of options to provide a commercially viable high speed train service.
We will establish a competitive tender process and seek expressions of interest from
interested parties. The Commonwealth will participate in a joint project control group
with New South Wales and the ACT to oversight the tender process.
For twenty years, governments have been closing outdated railways. The Coalition
welcomes private sector interest in the construction of new, efficient and competitive
rail systems that can make a significant contribution to competition in the transport
sector and to national economic reform.
Canberria A irport
Through Canberra's airport, the region now has direct access to many cities in
Australia, with benefits for regional economic efficiency and reduced congestion at
Sydney Airport.
The ACT and regional local governments and industries have the challenge to generate
a demand for charter and scheduled international air services that will, by their very
nature, establish the viability of a Canberra International Airport. The Commonwealth
will actively play its part through marketing the region's attractions to the Asia Pacific
Region and New Zealand. This includes the many world class exhibitions at the
National Gallery of Australia and events at the Australian War Memorial, the National
Science and Technology Centre, the National Library of Australia and elsewhere.
Direct overseas exports of rural produce from the Australian Capital Region will also
generate additional local employment growth. The region is an extremely efficient
centre of agriculture and has an extremely clean environment. Such initiatives are
integral to the Supermarket to Asia Strategy which I announced recently.
The demand for international travel by the growing service sector and higher education
and research institutions in the region will also contribute passenger and freight loads
to a Canberra International Airport and would reduce the number of movements
through Sydney Airport. Indeed, if the Canberra-Sydney high speed train eventuates,
Canberra Airport could occasionally take pressure off Sydney Airport.
For our part, the Government undertakes that services such as customs will be
available as and when required to support international services.
As a tangible demonstration of our commitment, the Minister for Transport and
Regional Development recently announced that the Federal Airports Corporation will
undertake a feasibility study on the upgrade of the airport to handle international
flights. This study is now underway.
The Feder-al anid Barltn Highways
Improvements to the Australian Capital Region's road infrastructure will enhance the
growth of local industry and improve road safety. Increased accessibility within the
region will build on the benefits of improved rail and airport facilities. It will
encourage the establishment of important economic activity such as wholesale markets
for the region's produce and major freight distribution complexes, adding to those
already at Goulburn.
The Commonwealth is already investing heavily in the completion of the dual
carriageway for the Federal Highway. The project is targetted for completion in
1998/ 9.
The Government recognises that an upgrading of the Barton Highway to a dual
carriageway will greatly increase access to the major producer areas that form part of a
wide sweep to the north of Yass. Planning studies for some sections are already
underway as part of that upgrade.
Liaisonuwifh the Comm uni'
The Coalition has a policy of actively liaising with local communities. In a positive
demonstration of this commitment, I have established a forum in which the
Commonwealth Government is liaising regularly with the Canberra business
community and the ACT Government. The Forum is chaired by the Minister for
Territories, the Hon Warwick Smith and the Forum has met twice. The Forum has
been briefed by representatives from the offices of the Minister for Transport, the
Minister for Communication and the Arts and the Minister for Administrative Services.
The prime objective of this very high level group is the promotion of private sector job
growth in the region.
At the local level, bodies such as the Australian Capital Region Development Council,
the Canberra Business Council and the Regional Leaders Forum are also actively
promoting regional growth.
Pu/ p anid Payer Mi/ I
One major opportunity for the region is the development of a pulp and paper mill,
drawing on the considerable and underutilised softwood pulp resources of Bombala,
Tumut and the ACT. The Government stands ready to give its approval when the
project meets the necessary requirements. An upgrade of the Tumut to Canberra road
link would not only enhance the economics of this project but would improve regional
access to the west and increase tourism potential. The new category of road funding
introduced in the last budget " Roads of National Importance" enables the Federal
Government to fund such projects.
Bornyba/ a Bidges
The Forum is also being briefed on the benefits of upgrading the bridges near Bombala.
This would allow B_-Double heavy transport vehicles to operate between Gippsland
and the Australian Capital Region and beyond. A further important initiative is the
three stage feasibility study into a multi-purpose export wharf in the Eden area. Such a
facility would considerably enhance the opportunity to process and export the region's
softwood timber and other resources.
Other Regional Opportunities
In another regional initiative near Goulburn, the Bredalbane Industry Park feasibility
study is examining the potential for increasing the value of regional primary production
by co-locating industries with specific environmental management needs on the one
site. Canberra, as the region's commercial and administrative centre, is the natural location
for a number of government regional offices. However, there has been a trend in
recent years for some of these offices to be closed down or scaled back and relocated
to other centres outside of the region. I have asked my Ministers to ensure that any
such future rationalisation of central or regional offices is properly assessed in the light
of administrative efficiency and the Government's regional policies. Discussions will be
held with relevant groups as each proposal is considered.
I would also like to extend an invitation to the Canberra Business Council to coordinate
a submission, on behalf of the Australian Capital Region business community,
to the Government on its budgetary policies and priorities as part of the annual Budget
process. The region has already developed a recognised reputation for its research and higher
learning. It is home to four significant Universities, many Divisions of the CSIRO, and
the Canberra Institute of Technology. A number of private companies are also heavily
involved in research and development. The region stands to benefit further from the
Government's increased investment in higher education research infrastructure, joint
industry-university research and increased post-graduate scholarships, as well as from
the major increase in base funding for the CSIRO.
Canberra is also a centre for sporting excellence through the Australian Institute of
Sport which attracts top overseas athletes and provides world-class competition and
facilities for local athletes.
Conclusion The Australian Capital Region is a region in transition. The region's business
community is well placed to take on many of the roles previously performed by
government. The Liberal-National Government is committed to enhancing the promotion of
Canberra as the nation's capital. The Government will also encourage the many
exciting opportunities that will markedly upgrade the region's transport and
communication infrastructure and development projects. The region can expand its
growing transport hub in Canberra to provide a first class link between the region and
the rest of Australia and Asia Pacific. It will also have a significant benefit on Sydney
infrastructure. The Government is committed to rebuilding Australia, to pursuing economic reform
and to assisting families. The Australian Capital Region is an important part of the
Government's vision for a prosperous nation. I believe that our policies will see
Canberra and the region emerge as a more vibrant and diverse reflection of Australia
while remaining a focus of national pride and achievement.