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Northern Territory Government Response to the Green Paper on Developing Northern AustraliaAugust 2014

Contents

Executive summary.............................................................................................................................................5

Infrastructure.....................................................................................................................................................7

Considerations for the White Paper............................................................................................................................7

Roads...........................................................................................................................................................................7

Economic infrastructure projects................................................................................................................................8

Private and public investment...................................................................................................................................10

Infrastructure funding allocation framework............................................................................................................11

What is the Northern Territory Government doing?.................................................................................................12

Land..................................................................................................................................................................13

Considerations for the White Paper..........................................................................................................................13

Land tenure information...........................................................................................................................................14

Research on land characteristics...............................................................................................................................14

Indigenous land.........................................................................................................................................................14

Government land......................................................................................................................................................17


Water................................................................................................................................................................20

Opportunity for development...................................................................................................................................20

Investing in infrastructure.........................................................................................................................................21

Management and planning.......................................................................................................................................21

Remote communities................................................................................................................................................22


Business, Trade and Investment.......................................................................................................................24


Trade.........................................................................................................................................................................25

Special economic zones.............................................................................................................................................25

Workforce shortages and welfare reform.................................................................................................................25

Skills shortages and overseas migration....................................................................................................................27

Visitor visas to engage with Asian tourism markets..................................................................................................28

Cruise cabotage.........................................................................................................................................................28

Aviation.....................................................................................................................................................................29

Rental vehicles..........................................................................................................................................................30

Red tape and regulation............................................................................................................................................30


Education, Research and Innovation................................................................................................................32


Networks and capabilities.........................................................................................................................................32

Skills and industry development...............................................................................................................................33

Fisheries....................................................................................................................................................................33

International education markets...............................................................................................................................33

Labour issues.............................................................................................................................................................34

Indigenous skills training...........................................................................................................................................34

Health........................................................................................................................................................................35


Governance......................................................................................................................................................37


Coordinated and cooperative governance arrangements.........................................................................................37

Relocation of Australian Government agencies........................................................................................................40

Place based approach to policy planning and implementation.................................................................................40

Defence.....................................................................................................................................................................40

Northern Australia Development Office....................................................................................................................41

Duplication of effort and governance in Indigenous service delivery........................................................................41


Summary..........................................................................................................................................................43

Executive summary

There is a need to develop a national narrative on the development of Northern Australia and its contribution to the future growth and prosperity of our nation. There has never been a better time to develop such a narrative and it is strongly recommended that the Australian Government and the three northern jurisdictions work together to develop and maintain clear and transparent dialogue around the strategic opportunities growing on our northern borders.

The Northern Territory has a clear advantage of physically neighbouring the Asian growth economies, and is well positioned as a transport and logistics hub for business and tourism. The Northern Territory already enjoys strong cultural and business linkages to our northern neighbours, including China. With developmental opportunities in food and energy production and an ideal marketing advantage to grow a significant tourism and trade-based economy, visionary policies backed by strong investment are keystones to a shared prosperity and regional growth.

In a sense, the term developing northern Australia is a misnomer, as the clear intention is the development of a stronger Australia through better realisation of the strategic opportunities and advantages provided by our northern regions. Developing Australia’s north to its full potential will be the biggest nation building exercise this country has seen in recent history and the benefits will be enjoyed by all Australians well into the future.

The Northern Territory Government response contains credible ideas and carefully identified priorities that require detailed consideration and action. It is necessary these priorities are included in the policy and funding platform that will form the White Paper on Developing Northern Australia.

From the Northern Territory Government’s perspective there are two keystone policy considerations that are fundamental to the successful development of northern Australia. The first is the need to invest in critical economic and transport infrastructure as a nation. The Northern Territory Government agrees that catalysing opportunities for private sector investment is an important tactical approach to achieving timely and affordable outcomes. A carefully mapped out strategy for infrastructure development that clearly identifies public and private sector roles and responsibilities in a collaborative process is fundamental to real success.

The importance of social infrastructure was de-emphasised in the Green Paper but this is an area that must be considered in the White Paper, particularly in the contexts of liveability and lifestyle opportunity to attract and retain population and social equity.

A summary of the Northern Territory’s priority infrastructure needs is part of this response. All are linked directly to allowing growth potential to be realised. Chief among these priorities are road development, linkage to the south-eastern gas grid, upgraded and extended rail links and port development to underpin economic and social development in the north. There should be a sense of urgency put on infrastructure investments to properly manage lead times for major projects. Decisive progress is needed to avoid slowing down the development agenda.

Attention is also given to the cost benefit analysis formula that is key to deciding infrastructure allocations nationally. Adherence to this formula will see little of the accelerated economic activity that is intrinsic to northern development. Alternate allocation formulae are required and the Australian Government is urged to consider alternate approaches, or a cost benefit formula which also takes into consideration the wider social and economic benefits of enabling infrastructure in northern Australia over the long term.

The second keystone policy arena is that of labour and skills shortages that require strategic and innovative solutions. Currently the Northern Territory lacks the population base and therefore the workforce to realise our true economic potential. Other than internal migration, there are two important potential sources of labour, namely engagement, training and development of our remote-area Indigenous population and through national and international migration. A number of measures are suggested to realise necessary change in both areas.

A high proportion of Australia’s Indigenous population live in northern Australia and these are some of Australia’s most disadvantaged people. Yet they are major land holders. There will be no holistic development of the Australian nation without lasting socioeconomic advancement of its Indigenous population. It is a moral and economic imperative that the Indigenous population of northern Australia enjoy all the benefits the development of northern Australia has to offer. Developing northern Australia and closing the gap on Indigenous disadvantage are inseparable.

5 Northern Territory Government’s Response to the Green Paper on Developing Northern Australia

The other important policy directions outlined in the Green Paper include discussion of issues and opportunities associated with land and water resourced development, business, trade and investment, education, research and innovation and governance.

The Northern Territory Government agrees that those areas represent drivers for economic and social development in northern Australia. Establishing certainty of access will build and reinforce investment confidence and lead to both infrastructure and workforce investment. Government at all levels needs to play an important role in facilitating access to development opportunities and in de-risking major projects to the point that investors have the degree of confidence to drive development forward. Clear advice is laid out in this response to the Green Paper so as to stimulate further discussion on these important matters as the White Paper is developed.

Generally, the critical concepts of policy interconnectedness and interdependence need to feature more centrally in the narrative about developing North Australia in the future. A good example of the importance of these concepts is that of water use and this draws on most, if not all of the policy directions. Firstly, scientific knowledge is needed to identify the characteristics of the water resource and, importantly, how much can safely be extracted. Cross-jurisdictional collaboration in water use will allow the fairest and most efficient research and infrastructure development. Economic infrastructure is required to deliver the water to where is needed to build industries and then get industry outputs to market. Social infrastructure and industry diversification are essential stabilisers, as has been experienced recently in the Northern Territory by the Nhulunbuy community. Lasting success will only come from weaving good policy across all areas of the development agenda.

There is a groundswell among Indigenous land owners to see their lands used to bring about the much needed socioeconomic development that ownership of, or interest in, land initially promised but has consistently and demonstrably failed to deliver. With its primacy in many areas of land administration, the Australian Government has an important role to play in any reforms. Reforms should include, but not be limited to, allowing land access to be decided by Northern Territory stakeholders rather than by Federal legislation. This would include allowing landowners

themselves much more say in how their land is used rather than being forced to work through large land councils.

Promotion of business, trade and investment in the Northern Territory is an area that lends itself to the low/no cost solutions discussed in the Green Paper. It is acknowledged that the Australian Government is not enthusiastic about northern Australia specific taxation reform however this remains an area of interest for the Northern Territory Government. In partnership with a range of stakeholders, including the Australian Government, the Northern Territory Government wishes to investigate the setting up of a Special Economic Zone that covers the entire Northern Territory.

Up-front investment in research, development and management planning are fundamentally important to successful growth of north Australia’s economy and community. Early investment in knowledge accrual systems through established research providers and new initiatives is identified as a key area for further discussion as the Australian Government’s White Paper is developed.

A priority in advancing education, research and innovation the Northern Territory is building on the impressive start already made in these areas rather than starting afresh. Another priority is in the establishment or relocation of educational and scientific institutions. Much of this will build on our proximity to Asia, our strong relationships with Asia and our position in, and knowledge of, the tropics.

An area that requires clarification and common agreement is what northern Australian governance arrangements jurisdictions will employ to produce an environment of coordination and cooperation. Governments must work toward an arrangement that minimises duplication and harmonises legislation to support northern development.

In the area of actions, this response will, where appropriate, make comment on the Green Paper’s proposed actions. It will also recommend actions based on the Northern Territory Government’s absolute commitment to being part of the development of northern Australia and on the Northern Territory Government’s unsurpassed knowledge of the challenges and opportunities existing in a huge and sparsely populated jurisdiction, blessed with abundant natural resources and situated on Asia’s doorstep.


Infrastructure

Considerations for the White Paper

The Northern Territory Government proposes the White Paper considers the following:

development of a long-term plan for critical infrastructure funding informed by the identified priority infrastructure needs of northern Australia, with an emphasis on all-weather roads

the development and implementation of an alternative nation building infrastructure allocation framework, that is not solely based on a cost/benefit analysis funding assessment framework, to plan investment in the enabling infrastructure that is needed to drive growth in northern Australia

funding commitment for the identification, preservation and acquisition of transport corridors

funding commitment to realise a connecting gas pipeline between the northern and eastern gas markets

funding commitment to realise the connecting railway spurs to Mt Isa and the Ord

funding commitment in order to reach an Indigenous land use agreement, carry out water infrastructure upgrades and extensions, and for essential roadwork in relation to the Ord Stage 3.

Despite the best efforts of the Northern Territory Government in a challenging environment, a lack of infrastructure will continue to undermine the Northern Territory efforts to capitalise on its highly advantageous strategic position, abundant and increasingly sought-after natural resources. Infrastructure is the primary northern Australia development issue, particularly road development.

The Northern Territory Government’s priority infrastructure areas are road improvements, a gas pipeline to the northern and eastern gas markets, rail extensions and a port extension.

Applying policy settings that are more supportive of major infrastructure developments are possible and will be pursued by the Northern Territory Government but in the absence of funding support, these will be rendered largely ineffective.

With its low population base, the Northern Territory too often misses out on major infrastructure spending due to the commonly used cost benefit analysis model. There are alternative methods available that put less weight on

population and consider other factors in infrastructure allocation with a view to developing underdeveloped areas. This approach has an element of ‘patient investment’. There will be quite limited northern development if the cost benefit analysis method continues to predominate in infrastructure allocation calculations.

In the area of major infrastructure development, there are few, if any, low or no cost solutions for government in the area of northern Australian development, as suggested in the Green Paper. Private enterprise has a critical role to play and all efforts should be made to make it easier for private enterprise to invest, but the Australian Government must contribute heavily to the development of enabling economic infrastructure.

The Green Paper’s lack of focus on social infrastructure is of concern as this is an area where significant development is needed. The Northern Territory’s currently deficient transport, telecommunications and utilities infrastructure can have social and economic roles and investment will have positive long-term economic development and social equity outcomes.

Roads

The Northern Territory Government is committed to delivering projects that increase all Territorian’s access to opportunities and resources and that encourage them to further contribute to and participate in the Northern Territory economy, particularly through employment. This includes developing infrastructure that addresses current and future transport needs.

As the Territory moves into the next period of growth our road network will be even more important in supporting economic opportunities and connecting Territorians across vast distances. Road development is the Northern Territory’s priority development issue.


Economic infrastructure projects

Other than roads, the following projects have been identified as having the potential to deliver significant economic and social benefits. The Territory is currently in the midst of a regional infrastructure review (the Regional Infrastructure Study) which will result in a 30 year regional infrastructure plan for the Northern Territory. It is anticipated that the Study will be completed in October 2014. However, in the interim the infrastructure projects listed below are considered to be priorities and it is expected that these projects will be classified as such in the Study.

Development of northern Australia will require significant planning and capital investment in infrastructure. Better standards in infrastructure not only unlock economic potential but increase the standard of living for some of our most remote Australians.

Gaps in transport infrastructure need to be addressed, particularly the limited access to remote locations across the vast distances of the Northern Territory. Planning, concept design and development is required for a number of major projects across the north to address these issues. New rail connections east and west are essential to support economic growth. Upgrades and all weather access to several key arterial roads such as the Tanami Road, Victoria Highway and Arnhem Highway will support the economy and provide better access for remote communities. Once the upgrades have occurred, increased maintenance funding will be required to maintain the standards.

Future development of railway infrastructure is a priority, including connections from the Northern Territory to Queensland and Western Australia, along with a gas pipeline to connect the northern and eastern gas markets through the Moomba Hub in South Australia. There is a need for “seed” funding to undertake the planning work associated with establishment of corridors. The feasibility and project planning work required will be extensive and could run into tens of millions of dollars.

The road maintenance formula used to calculate the distribution of funding to jurisdictions for maintaining the National Road Network disadvantages the Northern Territory as it does not take into account extreme environmental conditions due to the climatic extremes the Territory experiences, the higher cost of maintaining a large network spread across large areas with a sparsely spread low population. The

model needs to be reviewed with a stronger emphasis on community service obligations and less focus on roads that can be maintained via private investment. Essentially, the Northern Territory Department of Transport modelling demonstrates that about $38 million per annum is required to maintain the current performance standards on the National Highways as compared to the current allocation of $16.77 million. Growth in infrastructure investment needs to factor in long-term asset protection and maintenance. Repairs and maintenance across the Northern Territory network is always a challenge due to the climatic extremes, long distances and low revenue capacity. Therefore there is no capacity to divert funding from other Northern Territory roads to the National Road Network. Without the capacity to address the maintenance issue, the national road standard will deteriorate over time.

The Northern Territory Government does not have the capacity to fund these major infrastructure investments alone. Innovative funding solutions and investment by private industry and the Australian Government is essential to developing the north.

Gas Pipeline to connect the northern and eastern gas markets – creating a national gas grid

The northern gas market has significant exploration and development opportunity for both offshore and onshore gas resources with the Territory estimated to have potential conventional and unconventional gas reserves in excess of 200 trillion cubic feet (Tcf) across six on-shore basins and over 30Tcf off-shore. Infrastructure development is needed to unlock the development of these resources and deliver economic development and employment in regional and remote areas of the Northern Territory. Access to the eastern gas market will encourage accelerated exploration and development, provide energy security and support investment in gas processing and gas and energy consuming industries. The development of a national gas grid connecting the northern and eastern gas Markets is a priority for the Northern Territory Government and it is recommended that the Australian Government support this project.

The Northern Territory Government is working with the South Australian Government and industry to help build the business and economic case for a pipeline between the Northern Territory and the eastern gas market. The preferred route through the Moomba Hub provides access for gas


in the Territory to the rest of the eastern market through direct pipelines to Adelaide, Sydney and Brisbane and then through further pipelines to Melbourne and Tasmania. In this way, the Territory can help address the New South Wales and Victoria gas crisis and strengthen Australia’s energy security.

Gas suppliers, buyers and investors have a strong interest in and support for the gas pipeline project. The APA Group, for example, is investing $2 million in a feasibility study into a pipeline linking the group’s Territory assets to its east coast grid.

Many major Northern Territory towns and communities are not connected to mains power grids. In connecting the northern and eastern gas markets, there may be the opportunity to develop gas fired power stations in suitable sites which would reduce energy costs and deliver reliability and environmental benefits.

Ord Stage 3

Realisation of the Ord Stage 3 proposal represents a major agricultural development opportunity for the Territory and northern Australia. This project is clearly at the forefront of northern agricultural development and has the potential to create a new northern sugar industry, diversify our trade relationship with Asia, provide the momentum for investment in northern agricultural precincts, employ local Indigenous people and stimulate economic development.

Extensive work in Western Australia has seen the Western Australian irrigation channel come to within 6 kilometres of the Northern Territory border. The Ord Stage 3 project will expand irrigation channels and roads from Western Australia into the Territory to open up 14 500 hectares of new agricultural land, providing the scale required for further private sector investment. Inclusion of additional Northern Territory land would provide the scale required for investment of $700 million to re-establish a sugar industry.

The Northern Territory Government is targeting new private sector investment for construction of Ord Stage 3, estimated to be in the order of $450 million, and has already fielded significant interest ahead of marketing the opportunity. Completion of Ord Stage 3 would be the final stage in the realisation of the potential of Lake Argyle and the Ord Irrigation Scheme and would be a demonstration of government collaboration with the private sector to commercialise the development potential of northern Australia.

To facilitate development of Ord Stage 3, significant Australian Government funding assistance is needed to reach an Indigenous land use agreement, carry out water infrastructure upgrades and extensions and for essential roadwork.

Railway connectivity

In the longer term, the Northern Territory considers the following railway connections as important enablers:

Mt Isa to Tennant Creek, which would connect north-western Queensland with the AustralAsia line to Darwin

Western Australia’s Kimberley region, including Ord River, to Katherine, to also connect with the AustralAsia line to Darwin

both the east and west rail corridors are yet to be preserved, identified or acquired.

East Arm Port extension and second port at Glyde Point

Infrastructure Australia’s National Infrastructure Plan has identified the East Arm Port extension as a threshold project on the National Infrastructure priority list. The $336 million extension is designed to handle increases in the export of iron ore, phosphate and other minerals.

The Northern Territory Government is also examining the possibility of a second port at Glyde Point. The project is in its infancy and more detail is expected as a result of work being undertaken by Northern Territory Government agencies.

The access corridor to Glyde Point has been identified in the Northern Territory Planning Scheme but is yet to be fully acquired.

Essential services infrastructure

The Northern Territory Government is taking the initiative in looking for ways to improve essential services to our remote communities. An example of this is the recent partnership with the Australian Renewable Energy Agency (ARENA) to install hybrid diesel/solar units across a small range of remote communities. The $60 million project will reduce the reliance on diesel and in turn reduce the cost of providing electricity services to the communities involved.

Further to this, an assessment has been completed of the state of essential services infrastructure across 72 remote communities and documentation prepared for a submission to


Infrastructure Australia to replace old and failing infrastructure to support the development of these remote communities.

This assessment forms an integral part of the current Northern Territory Infrastructure Study and the essential services system upgrade will be considered by the Northern Territory Government within the overall Major Projects priorities.

Telecommunications infrastructure

There are serious deficiencies in the Northern Territory’s telecommunications infrastructure. Telecommunication infrastructure has obvious economic and social importance. In 2014, 32 Northern Territory communities with a population greater than 200 have no optic fibre, 39 have no ADSL broadband and 25 have no mobile phone coverage. The mobile coverage of our major highways (Stuart, Victoria, Arnhem, Kakadu and Barkly) is largely incomplete.

The Northern Territory Government, in partnership with Telstra, is completing the delivery of 3G mobile phone services to eight remote communities and ADSL2+ broadband to six communities. This will make a vast difference to these communities and opens up real opportunities in the areas of health and education and potentially, enterprise development.

The partnership with Telstra has been established out of necessity due to the stated position from NBN Co of providing third tier technology to all remote communities in the form of satellite communications. In many instances this ignores existing terrestrial infrastructure in communities that could be used to provide a first or second tier telecommunications service. The lack of plans for investment in terrestrial telecommunications infrastructure severely restricts capacity to develop across the Northern Territory and unlock the potential of much of our region.

The responsibility for delivering reliable and effective telecommunications to Australian citizens and businesses rests with the Australian Government and is to be achieved through the NBN. NBN Co is not meeting this requirement for the Northern Territory beyond first tier standard services in the Darwin urban area. NBN Co’s standard of services planned for the main Territory regional communities of Katherine, Tennant Creek, Nhulunbuy and Alice Springs is presently unknown. Greater certainty from NBN Co, a better standard of service aligned to needs and sensible utilisation of existing telecommunications infrastructure are core prerequisites to effective telecommunications and

therefore to the development of northern Australia.

Telstra, through its historical connections, has the largest telecommunications infrastructure footprint in the Territory. To meet the pressing demand, particularly from remote Indigenous communities, the Northern Territory Government has had to take up the reins and collaborate with Telstra to provide some much needed telecommunications services that will, in turn, enable the delivery of vital electronic health and education services as well as improving social outcomes. Importantly, reliable and appropriate telecommunications provide a foundation for economic development within these communities. This situation has required active Northern Territory Government engagement and contribution to an area of clear federal responsibility which warrants and justifies financial commitment from the Australian Government.

Significant funding is required to delivery 21st century telecommunications to much of the Northern Territory in the interests of economic development and social equity.

Private and public investment

It is unlikely many of the required Northern Territory infrastructure projects, particularly those categorised as social infrastructure, will attract private sector investment. A prime potential source of private sector investment is overseas investment. The Foreign Investment Review Board (FIRB) examines proposals by foreign persons to invest in Australia and makes recommendations to the Treasurer on those subject to the Foreign Acquisitions and Takeovers Act 1975 and Australia's foreign investment policy. The Northern Territory Government is increasingly active in its efforts to attract foreign investment and recommends that the FIRB looks at all foreign investment proposals in the Northern Territory through a lens favourable to the critical role infrastructure investment has in the developing of northern Australia.

The Northern Territory Government has commenced consideration of ways in which it is able to package government owned infrastructure and assets to attract private sector funds and promote sustained private sector investment. We recognise the importance of strategic economic and social infrastructure assets remaining within government ownership and control. However, opportunities for these assets to be used to stimulate or facilitate critical economic development investment must be considered. The


Northern Territory Government also recognises that its small size and current stage of economic development means that it needs to rely on partnership and support from the Australian Government.

Five important ways to stimulate private sector investment are government – private sector partnerships, the development of comprehensive information packages, the marketing of investment opportunities, de-risking investments and the identification and removal of regulatory barriers. All warrant consideration in the White Paper.

Infrastructure funding allocation framework

The biggest hindrances to the current and future economic development of northern Australia are the overlapping beliefs that potential investments in northern Australian should be assessed on the same terms as potential investments in the larger, more populous and more domestic oriented parts of Australia and that government should assess potential investments on the same basis as a private sector investor might. By using cost benefit analysis as a tool to enforce these beliefs government is filtering out important economic and social development opportunities that would benefit northern Australia and the country as a whole. Even Australian Government agencies suggest that neither the Sydney Harbour Bridge nor the Alice Springs to Darwin rail link would be approved if they were assessed using cost benefit analysis as applied by the Australian Government today. Case study 1 illustrates just how important the Alice Springs to Darwin rail link is the Territory’s economy. northern Australia is disadvantaged not only by the tools used to select projects worthy of investment, but also by the beliefs used to determine which tools are most suitable. A change to mindset is critical.

The Northern Territory Government firmly believes that the traditional approach to investment by government should be revisited with a new approach applied to northern Australia in order to unlock economic potential. The traditional role of government has been to finance infrastructure to establish a firm foundation and act as a catalyst for future economic growth. This means that as an early stage investor Government accepts the risk and uncertainty involved but invests patiently whilst being unsure of exactly when the economic benefit will arise. Many of the transformative infrastructure projects that occurred in south east Australia last century were justified on this basis. Governments should

invest in a future defined by a well-developed vision, instead of relying upon tools unsuited to their vision. Unfortunately the Australian Government has been slow to amend their investment appraisal process to recognise wider economic benefits, and the social and equity issues that are a feature of many potential infrastructure investments across northern Australia. The Australian Government should take the lead in recognising and responding to these weaknesses in their appraisal processes. The Northern Territory Government is willing to partner the Australian Government in this discussion, but clearly it needs a matching commitment and will from both parties.

Case study 1: The value of the Alice Springs to Darwin rail link

The Alice Springs to Darwin railway is a crucial and necessary link towards a comprehensive national freight and passenger rail network. In its first year of operation the line carried 600 000 tonnes of domestic freight and 20 000 tonnes of international cargo.

Freight volumes grew quickly as new mines opened along the rail corridor, with bulk minerals increasing from 45 000 tonnes in 2006 to 3.6 million tonnes in 2012. The Australian Defence Force had initially noted that it would continue to use its existing non-rail transport modes. However, it was quick to change its attitude and take advantage of the railway’s ability to cost-effectively move heavy equipment such as tanks. Using the cost benefit analysis infrastructure allocation model would have missed these mining, defence and other benefits, because they would be ‘unknown unknowns’.

The construction of the railway has greatly reduced reliance on the Stuart Highway whilst improving the cost effectiveness of transportation. Around 90 per cent of the contestable freight task into the Territory is transported by rail. The rail link has also been instrumental in supporting economic development along its corridor. It has been the piece of critical infrastructure that has enabled the establishment of several mining operations such as Bootu Creek (manganese) and Roper River and Roper Bar (both iron ore). In providing cost effective transport for these projects, these mining operations became viable.

Substantial increases in freight to South Australian and Northern Territory ports are predicted as the transport infrastructure makes new mines economic, including the potential Olympic Dam expansion in South Australia. The railway has supported the development of other enabling infrastructure, such as a common user terminal and business park near Darwin’s East Arm Port and a rapid expansion of logistics businesses on the back of the railway. The steady growth of domestic freight movements along the central corridor between South Australia and the Northern Territory has continued with the operators


reporting growth of approximately 9 per cent per annum in intermodal freight.

The overall tourism economic benefit of ‘Ghan’ tourism traffic on the rail is estimated at $70 million per annum. Between the start of passenger services in February 2004 to the end of June 2014 the Ghan carried 555 172 passengers. In 2013-14 the Darwin to Alice Springs Ghan line generated $39 million in ticket sales. Regional tourism operators have gained from passengers making short trips to nearby attractions. Tourism in the Darwin region has benefitted. Extended stays by passengers in Darwin have resulted in an estimated tourism benefit of $26 million dollars per annum in Darwin and $4 million dollars in Alice Springs. The popularity of experiential train journeys is on the rise and in response Great Southern Rail is in the process of expanding the Ghan’s service with a four day Ghan itinerary from Darwin to Adelaide.

What is the Northern Territory Government doing?

The Northern Territory Government is currently undertaking the following:

Northern Australia Infrastructure Audit: The Northern Territory Government is working with the Australian Government to ensure Territory projects are included in the critical infrastructure requirements list as part of the Northern Australia Infrastructure Audit.

Northern Territory Regional Infrastructure Plan: The Northern Territory Government is developing its 30 year Regional Infrastructure Plan that can be taken to public or private investment markets. Work is progressing to schedule and due for completion at the end of 2014 and has allocated the largest budget to date to road spending.

Water infrastructure: The Northern Territory Government Department of Land Resource Management has provided seven priority water infrastructure projects for the Northern Territory for consideration by the Australian Government Water Infrastructure Taskforce.

Road program 2014-15: The Northern Territory Government’s 2014-15 Budget for its road program is one of the biggest in the Territory’s history with a total of $377.8 million of Northern Territory and Australian Government funding. This includes $81.2 million for repairs and maintenance, $83 million for Tiger Brennan Drive, $30 million for strategic economic development roads, $3 million for the Larapinta Drive/Lovegrove Drive intersection and $7.3 million to improve the Outback Way roads.


Land



facilitation of further research into soil, water, vegetation and marine resources, accelerated investment in geoscience, exploration incentives and facilitation of land access to stimulate energy and minerals research

development of a policy position on how the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) can be structured to better support economic development for traditional land owners, including consideration of which government is best placed to administer Northern Territory lands. This should include potential delegations and timing of modifications. In particular:o in-depth consideration of government

policy on secure tenure and rent payments on Indigenous land. This should include reviewing how top of the range market rates set by government have distorted the market and shut out private sector investment

o development of a standard leasing system for Indigenous land rather than the current situation where a range of place-based leases is emerging. This would reduce complexity for private investment.

o examination of the existing land council model from the perspective of developing options that might better support traditional land owners in their continuing efforts to gain economic advantages from their vast land holdings

o examination of ways of offering traditional land owners the opportunity to gain clear freehold title to their land in a way similar to the proposed Queensland model

o development of a joint framework that enables and supports the commercial development of Indigenous lands, including townships, to benefit residents of remote communities.

development of a long-term plan to normalise town camps so that ordinary freehold tile prevails and home ownership and commercial activity is enabled

development of methods to expedite native title processes to the mutual benefit of all parties

expediting the analysis of Australian Government land holdings in the Northern Territory with a view to deciding on how best non-essential parcels of that land could best be used in the interests of developing northern Australia.

Two types of information on land issues are important in attracting investment and development in the Northern Territory:

information about land tenure information about the physical characteristics

of the land.

Discussions on Indigenous land tenure are ongoing between the Northern Territory and Australian governments. The Northern Territory’s objective is to ensure that land access and tenure arrangements and their allied processes support the development of its economic and social wellbeing, its regions and industries.

Indigenous land tenure arrangements in the Northern Territory are largely subject to Federal legislation. From both governments’ perspective, a priority is modifying, where appropriate, existing land tenure arrangements to a form that better allows for sorely needed socioeconomic development in remote regions whilst maintaining security of title for land owners. Existing arrangements, however well-intentioned, have demonstrably been a barrier to development. If the issue of land tenure is not dealt with, important infrastructure developments will ultimately be delayed.

As yet, information on the physical characteristics of land (and seabed) in the Northern Territory is far from complete. Potential investors in land-based enterprises rely heavily on such information and not having a comprehensive collection of data continues to inhibit economic development.

There are considerable areas of the Northern Territory controlled by the Australian Government. The Northern Territory Government believes that some of this land could be made available for uses that would further the development of the Northern Territory.


Land tenure information

The Northern Territory Government places a high priority on the production and dissemination of information relating to land tenure and land use. Given the range of land tenure arrangements in the Northern Territory, the provision of timely and accurate information is a vital precursor to developmental activities. It is recommended that the White Paper develops options that will make data on land tenure accurate, user-friendly and accessible. The Northern Territory Government will be placing an increased emphasis on providing user friendly and accessible data relevant to land tenure, access, availability and processes for negotiating potential land use.

Research on land characteristics

It is critical that more research is commissioned to better describe the characteristics of the Northern Territory relevant to development. To that end, a Northern Territory Government initiative titled Creating Opportunities for Resource Exploration (CORE) is designed to maximise opportunities for the exploration and discovery of new mineral and petroleum resources.

In its submission to the Joint Select Committee on Northern Australia, the Northern Territory Government called for:

accelerated investigation and research into the Territory’s soil, vegetation, water and marine resources to inform the identification of priority areas for development

accelerated investment in geoscience, exploration incentives and facilitation of land access to stimulate energy and minerals research.

The Northern Territory Government has committed to an active program of land and water suitability assessment during 2014, with a purpose of identifying parcels of land that co-exist with water resources to establish new agricultural precincts.

The desire of the Northern Territory Government to develop the north is highlighted by the allocation of $2.4 million in its2014-15 budget for an increased program of land and water suitability assessments over the next four years.

This work will complement the activity also underway on the Tiwi Islands, off the coast of Darwin, where land and water suitability assessments are being undertaken on a 10 000 hectare area. Almost $2 million in Northern Territory Government resources have been

committed to this activity to find arable land for local development and investment.

Scientific assessment of the natural resources to determine the potential suitability and productivity of the land, and whether it is conducive to agricultural purposes and ultimately economic development, is essential for underpinning successful agricultural developments. The availability of this information is also the key to accelerating and attracting private investment. It can be also used to greatly reduce the risk to investors of potential business failures, while mitigating potential land, water, flora and fauna degradation.

An opportunity exists for the Australian Government to partner with the Territory on land and water suitability assessment to achieve our shared vision of developing the north. The Northern Territory Government wishes to reconfirm the importance of the above and recommends that the White Paper contains clear and well defined actions to address the above issues.

Indigenous land

It is important that the difference between the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth) (the ALRA) and the Native Title Act (Cth) are understood. Unlike other jurisdictions, the Northern Territory is subject to two types of Indigenous land tenures under two separate pieces of Federal legislation:

Aboriginal freehold under ALRA which applies only to the Northern Territory and covers approximately 50 per cent of the Northern Territory’s land mass and 85 per cent of its coastline

over 40 per cent of the Northern Territory is pastoral and therefore land subject to native title under the Native Title Act.

There are significant differences in the statutory application of ALRA and the Native Title Act, and each must be considered separately in their own right to gain the full understanding of the impact each has on use and access to land in the Northern Territory. The Green Paper does not explain the Indigenous land tenure situation in the Territory very well.

ALRA provides a deliberately structured form of communal land tenure that mitigates against transfer, investment and individual ownership. A project requiring security of tenure on ALRA land requires extensive negotiations between


numerous parties including traditional owners, land councils and Australian and Territory governments. The negotiations can often be drawn out and provide little certainty for any proponent that their project could/will proceed and when. Often development projects on ALRA land simply become too hard. To provide an example

of the challenge posed to development under current arrangements, often as many as 70 per cent of outstanding mineral exploration licence applications fall under the ALRA negotiation process.

The flow chart below provides a clear summary of the complexity the current ALRA process presents to development.


There is also a significant backlog of claims or unresolved Indigenous Land Use Agreements in relation to land under the Native Title Act. It is most often a lengthy and costly process to reach a determination or negotiate an Indigenous Land Use Agreement to extinguish native title. There is no settled process of valuation of native title rights when compensation for extinguishment is being negotiated. Timelines and processes can create a barrier to the conversion of vacant Crown Land and pastoral leases to higher forms of tenure. Where proposed projects require the resolution of native title, the timeframes can lead to significant delays or abandonment of the project.

Case study 2: Mineral titles in the Northern Territory

Northern Territory law divides mining for minerals into two types of mining - Mining for minerals and mining for extractive minerals. Oil or gas mining is governed by separate Northern Territory statutes.

There are two main Northern Territory laws for mining minerals and extractive minerals:

the Mineral Titles Act (the MT Act), and the Mineral Titles Regulations are the laws under which exploration and mining approvals are granted or refused

the Mining Management Act is the law that controls how mines are managed and the obligations imposed on mining companies to protect the

environment once an exploration or mining approval has been granted.

An Extractive Mineral Lease (EML) is a mineral title that gives the title holder:

the right to occupy the title area specified in the EML the exclusive right to conduct mining and associated

activities for extractive minerals in the title area.

A Mineral Lease (ML) is a mineral title that gives the title holder:

the right to occupy the title area specified in the ML the exclusive right to conduct mining for minerals

and associated activities.

Of the 30 EMLs granted between 1/1/2003 and 14/01/2014:

the average time to grant from the date of advertising was approximately 38 months

the average time to grant from the Right to Negotiate (RTN) being given under the Native Title Act (Cth) was approximately 34 months

the shortest time to grant from the date of advertising was approximately 15.5 months

the longest time to grant from the date of advertising was approximately 169 months

the shortest time to grant from the RTN was approximately 16 months

the longest time to grant from the RTN was approximately 165 months.

Of the 42 MLs granted between 17/11/2004 and 21/1/2014:


he average time to grant from the date of advertising was approximately 36 months

he average time to grant from the RTN was approximately 32 months

he shortest time to grant from the date of advertising was approximately 6.5 months

he longest time to grant from the date of advertising was approximately 103 months

he shortest time to grant from the RTN was approximately 2.5 months

he longest time to grant from the RTN was approximately 99.5 months.

Relatively recently, the practice of government securing land for assets has changed the way traditional owners, land councils and government do business. Paying rent for Indigenous land is a major step in seeing land owners derive economic benefits from their land. But there have been unintended and undesirable consequences, chief among them the near total absence of private investment and development, which had been a primary reason for the changed practice or the new way of doing business.

The Northern Territory Government is keen to improve processes under both pieces of legislation in order to allow Indigenous land holders to fully realise economic and social benefits from their land assets. To this end, the Northern Territory Government has established a chief executive working group to examine Indigenous land tenure matters in the Territory and to propose mutually acceptable solutions with a view to ensuring Indigenous land holders are able to derive maximum economic and social benefits from their land. It is anticipated that the work of the chief executive group will inform future discussions with the Australian Government and relevant Indigenous representative groups.

Given the Australian Government’s primacy in the area of Northern Territory Indigenous land tenure, the Northern Territory Government urges the Australian Government to expedite discussions with the Northern Territory Government and other stakeholders on the following in the interest of the development of northern Australia and its residents, particularly those in remote communities:

investigating reform to ALRA that would include considering which government is best placed to administer Northern Territory lands. This should include potential delegations and timing of modifications.

examination of the existing land council model from the perspective of developing options that might better support traditional land

owners in their continuing efforts to gain economic advantages from their vast land holdings

in relation to the above, look at ways of offering traditional land owners the opportunity to gain clear freehold title to their land in a way similar to the proposed Queensland model

development of a joint framework that enables and supports the commercial development of Indigenous lands, including townships, to benefit residents of remote communities.

Government land

With regard to opening up land in northern Australia for new and different purposes, the Northern Territory is in the fortunate position of having large areas of land controlled by either the Northern Territory or Australian Government which could be released to support residential, industrial and commercial development. The Northern Territory Government the Australian Government should consider which of its land holdings could be made available for developmental purposes.



Non-pastoral activities on pastoral leases: By passing amendments to the Pastoral Land Act the Northern Territory Government is supporting pastoral lease holders by providing opportunities to diversify and develop new income streams. The amendments to the Act provide pastoralists with a scheme to diversify economic opportunities on land held under pastoral tenure. The amendments provide the certainty required to develop non-pastoral operations such as tourism, horticulture, extensive agricultural developments and forestry on portions of pastoral leases.

Case study 3 – Pastoral diversification


The Northern Territory Government has created economic opportunities for pastoralists to diversify income streams and capitalise on the growing demand for produce through the reduction of red tape within the Pastoral Land Act. Using the large tracts of pastoral land, which constitute almost half of the Northern Territory land mass, to support non-pastoral activities is an key principle of this government’s vision to accelerate development of the north.

Several pastoral lessees have taken up the opportunity to develop non-pastoral activities to support their cattle enterprises. These alternate business model activities range from growing mangoes in the Douglas-Daly and Gulf regions to a small-scale forestry trial east of Katherine. Enquiries have been received from investors and pastoral lessees about the development of large-scale aquaculture operations, sandalwood forestry operations, palm oil plantations and rice or cotton growing operations on pastoral leases.

The Northern Territory Government’s 2014 amendments to the Pastoral Land Act and the introduction of the Poppy Regulation Act have paved the way for the Territory’s first irrigated agriculture crop of Papaver somniferum (poppies) on a pastoral lease. This 8 square kilometre proposal to grow poppies demonstrates the endless possibilities for those with a vision to develop new industries and meet market demands for product.

Many pastoralists are taking advantage of their beautiful surroundings by offering tourism opportunities on their properties. Tourism is one of the Territory’s biggest industries and can co-exist and prosper along with the cattle enterprises.

Release of Crown Land: An audit is being conducted of all Crown Land in the Northern Territory for potential release to market. Development requirements will be attached to Crown Land sales to ensure economic objectives are achieved and land-banking avoided.

Conversion of pastoral leases: Policy work is underway examining barriers and methods of converting pastoral leases to higher forms of tenure. The Northern Territory Government will monitor conversions to ensure the ongoing viability of the pastoral industry.

Strategic planning: The Northern Territory Government created an Independent Planning Commission in 2013 to prepare integrated strategic plans; research future land use and development, take into account projected economic, social and demographic changes,

review the Northern Territory Planning Scheme and prepare guidelines and assessment criteria.

Data availability: The Northern Territory Government will be placing an increased emphasis on providing user friendly and accessible data relevant to information on land tenure, access, availability and processes for negotiating potential land use.

One-stop-shop environmental approvals: A draft assessment bilateral agreement has been negotiated between the Northern Territory and Australian governments which may reduce duplication and save time in the environmental approval process by allowing proponents to undertake a single assessment process. An approvals bi-lateral agreement is also under negotiation, which will provide a single entry end to end environmental assessment and approvals process.

Environmental Impact Statements: Statements have been completed for five proposed mines. EISs are underway for nine mines, two tidal power generation projects and two residential estates.

Indigenous land and development timeframes: The Territory is currently mapping statutory timeframes for native title processes in mining and gas exploration, including comparing them to processes under ALRA. Data on actual timeframes for processes under both the Native Title Tribunal and ALRA is being extracted to assist in identifying where opportunities for improvement exist.

Use it or lose it: The Northern Territory Government has amended its Petroleum Act (the Act) to provide for a more strategic and controlled release of vacant land; and allow for the acceptance of multiple applications for exploration permits over that vacant land. The amendments to the Act are intended to encourage oil and gas explorers to increase exploration activity towards finding and proving-up energy resources. The amendments also encourage less active explorers to relinquish held tenure, freeing up land for more active companies to then explore.

Creating Opportunities for Resource Exploration (CORE): CORE is an initiative of the Northern Territory Government designed to maximise opportunities for the exploration and discovery of new mineral and petroleum resources. The initiative focusses on acquiring new precompetitive geoscience information to stimulate exploration, as well as industry grants for high-risk exploration and programs to attract


international investment into projects in the Territory. Northern Territory Government funding of $3.95 million has been provided to support CORE. In addition, the Northern Territory Government has allocated $2 million per annum for four years from 2014-15 to 2017-18 for an accelerated collaborative program to assess the Territory’s shale gas potential and resources.

Oil and gas Potential: Assessment of shale gas potential of selected basins is being carried out. This includes collaboration with industry and Geoscience Australia on analysis of the properties of shales and mapping of ‘sweet spots’ for potential oil, condensate and/or gas production.


Water


dedicated funding to complete Northern Territory databases on water use and access to support future development

research into, and implementation of, conjunctive water use models

funding for comprehensive research into safe extraction levels for northern Australian aquifers

introduction of the Water Project Development Fund for northern Australia

CSIRO research into flood harvest, off-stream storage and conjunctive use of surface water and groundwater

assistance to ensure the long-term water supply security of remote communities, including research and funding.

The Northern Territory Government’s 50 Year Water Plan is close to completion and will provide a clear policy framework for the long-term management of the Northern Territory’s water resources. The framework will provide a clear statement of the intent to maximise the sustainable use of water resources to support economic development.

Investment in water infrastructure is considered a priority to aid development of the Territory. Providing a future water supply for developing Darwin as a major northern Australian city and certainty of supply for regional and remote communities requires significant government investment. Australian Government investment through a Water Project Development Fund has great potential in advancing the necessary planning and infrastructure.

In the Northern Territory the opportunities for economic development through irrigated agriculture production is highly dependent on a good understanding of the soil and water availability in areas located close to existing infrastructure. In the 2014-15 Northern Territory Budget additional funding was provided to expand the land and water assessment program to find new agricultural precincts throughout the Territory. Australian Government support in scientific research to determine sustainable extraction rates for ground water resources is also critical to viable long term development and liveability.

Opportunity for development

In the Northern Territory there are very few areas of uniform soils with flat relief that offer opportunities for broad scale irrigated agriculture development similar to the Ord River Irrigation Scheme. The greatest opportunity for expanded irrigated agriculture in the Territory will be around developing small pockets of arable soil that overlie potable aquifers. This will deliver a mosaic of irrigation developments throughout the Territory. The Territory is facilitating this opportunity by allowing further long-term diversification of the extensive pastoral holdings in the Territory. Similar opportunities exist for extensive tracts of scheduled land under the Aboriginal Land Rights (Northern Territory) Act. The priority for the Territory is identifying where the arable soils for agriculture development exist and determining the capacity and quality of any underlying aquifers to support irrigation.

The challenges in accessing water for irrigated agriculture include the impact of high evaporation rate on surface water resources, including water in open storages, and the relatively flat topography for the transportation of water by gravity. Therefore water for agriculture is predominately from groundwater resources, extracted close to the point of use.

There is a reasonable amount of data available on the Northern Territory’s water resources but there are unquestionably areas where more research is needed. Gaining additional water resource data and investigating greenfield regions is of equal importance to addressing data gaps in terms of available volumes and recharge levels of groundwater aquifers.

Water planners have high quality modelling tools to analyse and assess existing water resource information in all key areas that are currently under development pressure or have strong prospects for future development. These modelling tools are, however, “data hungry” and there is not always sufficient data on which to make the strongest predictions of the effects of development on water resources and, consequently, the reliability or security with which development can proceed. There is a growing need to strategically review the data gaps that limit understanding of the likely effect on water resource systems of different development scenarios and possible climate change. Consequently our ability to inform current and


potential developers and planning and regulatory agencies is limited. Filling the strategic gaps will be fundamental to improving adaptive management capacity, whereby new resource information, modelling predictions and monitoring results can be fed back into planning, development and regulatory adaptive management decisions to better ensure long-term environmentally sustainable use of water to maintain and grow development.

Investing in infrastructure

In parallel to better access to water for irrigation development in the Northern Territory, development of better transportation, communication and social infrastructure development is needed. This is a priority. Supporting infrastructure is crucial to water extraction and use. Developing such infrastructure has to be based on sound economic modelling and should not be the sole responsibility of government.

It is noted that the White Paper will consider the introduction of a Water Project Development Fund for Northern Australia. This concept is supported and would be important in providing critical water infrastructure in the Northern Territory to underpin development. The Territory is exploring opportunities for strategic dams, off-stream storage facilities and managed aquifer recharge to meet domestic water supply demand provide more water for irrigated agriculture and support developing industries.

The Darwin Regional Water Supply Strategy identified options for augmenting the Darwin region’s water supply in the medium term to meet urban growth and demand. Securing new water sources will enable Darwin to grow and reach its full potential as a major, if not the major, northern city.

The Northern Territory Government endorsed three potential dam sites in 1990. A dam on the upper Adelaide River is the priority option. This option offers advantages in terms of minimising environmental impact and evaporation rates. The Northern Territory Government does not have the financial capacity to develop this critical enabler of development. Another option on the Adelaide River is off-stream storage in an already identified natural basin that would be replenished by harvesting wet season flood flows. Limited civil work would be required in its construction.

Management and planning

Water is essential for the future development of northern Australia. Careful planning and management of this resource is required for the north to flourish in the future.

There is a reasonable amount of knowledge of Northern Territory aquifers but the area where the science is lacking is how much we can safely extract, in the context of recharge rates. At the moment the Northern Territory uses the best available science and modelling and is taking a conservative approach to extraction rates. It is considered likely that with better scientific knowledge, extraction can be safely increased. The Australian Government has to play a leading role in funding the required research. This critical research is beyond the financial capacity of the Northern Territory Government.

Regarding the CSIRO ‘rapid appraisal of river catchments across northern Australia’ referenced in the Green Paper. The applicability to the Northern Territory is questionable. The CSIRO must adequately consider the location of arable soils associated with dam sites, the economics of building dams in remote areas and being able to deliver water to irrigators and other users at acceptable cost as well as the environmental consequences upstream and downstream. If the CSIRO assessment is also about flood harvest, off-stream storage and use of surface water and groundwater then it may prove to be money well spent in the Northern Territory.

Off-stream storage, through harvesting by diversion or pumping of post-peak flows to suitable land forms or constructed earthen “tanks” is feasible in a number of drainage basins in the Top End of the Northern Territory, without adversely affecting the area’s river system. This opportunity exists to facilitate agriculture and associated regional development where water is able to be diverted at strategically located sites close to soils with good agriculture potential. Suitable drainage basins, in decreasing order of potential, are the Daly, McArthur, Roper, Victoria, Moyle, Victoria, Mary, Baines and Blythe river basins. There is a requirement for modelling of river flows and water harvesting options along with the identification of topography that is suitable for off-stream storage and for the assessment of soils suitable for agriculture.

The Northern Territory is investigating the opportunities for increased water storage through managed aquifer recharge (MAR). MAR involves artificial aquifer recharge from surface water


sources such as those available during high-flow events. This can increase the amount of the water available for allocation and improve water improve security and reliability of access. MAR ensures the reliability of water supply to irrigated agriculture whilst allowing environmental flows of rivers to be maintained during the dry season. This has the potential to offer major benefits in terms of economic, social and environmental development through significantly improved efficiencies in water management and use.

These investigations require significant investment in specialised research. This will require both Australian and Northern Territory government input as well as private sector involvement.

Remote communities

A number of Northern Territory remote communities are facing catastrophic failures of their water supplies in the not-too-distant future. The Northern Territory Government is maximising, within its funding limitations, its efforts to prevent this happening. The Northern Territory Government calls on the Australian Government to assist where possible in preventing this happening. Having the viability of remote communities severely compromised is the very antithesis of northern development.

Case study 4 – Indigenous Essential Services

The Northern Territory Government, through its Indigenous Essential Services (IES) business arm, feels there is a need for better understanding of water resource location, extent, and quality and of source protection. Better water management, is needed, as is the planning of new water infrastructure.

IES services 72 communities with a combined population of 38 000 spread across the Northern Territory. Associated power, water and sewer services have an asset replacement value of $1.6 billion. The remote locations of most remote communities locations increases the complexity of service delivery.

A total of 70 separate water supplies are tapped with 95 per cent being reliant on groundwater. Operations are in a range of environments from the tropical Top End to southern desert. Regional geologies present a range of difficulties in locating and exploiting water resources.

The risks for IES communities are:

variable water quality which necessitates advanced water treatment in some places

demand exceeding sustainable yield from

aquifers in some communities

unknown aquifer size in 30 per cent of communities

increasing community water demand with increasing population

ageing infrastructure.

The CSIRO Northern Australia Sustainable Yields project identified gaps in groundwater and surface water monitoring networks and deficient data and information to inform modelling. This project only covered the top third of the Northern Territory. The Bureau of Meteorology (BOM) has invested in Northern Territory water monitoring infrastructure. A lack of funding to keep existing and new BOM-funded monitoring networks operating is problematic. North Australian Indigenous Land and Sea Management Alliance research on Indigenous water use and water planning in northern Australia could be built on to develop water planning strategies around communities where IES operates.

What is required is a coordinated approach to water resource assessment to see effective use of the technical resources available to Northern Territory Government and other stakeholders. Water source scarcity is a barrier to community development. Investment is needed in water resource monitoring infrastructure, and technical resources to analyse, interpret data and assess water resource availability.



Resource assessment of agricultural precincts: The Northern Territory Government has committed an additional $2.4 million for expanded assessment of soil and water resources in the Northern Territory to determine new agricultural precincts.

Ord Stage 3: The Northern Territory Government continues its activities to facilitate the extension of the Ord River irrigation scheme into the Northern Territory in the form of Ord Stage 3.

Bathurst Island: Water, land, and flora and fauna investigations are underway on Bathurst Island to identify suitable areas for irrigated horticultural production.

Darwin Regional Water Use Strategy: The strategy identifies options for augmenting rapidly growing Darwin region’s water supply in the medium term to meet urban, commercial, industrial and irrigation demands. This includes


pumping of post-peak flows into suitable land forms or constructed earthen tanks without adversely affecting river systems.

Allocation of water resources: Supporting sustainable economic development by granting 103 licences which equates to the allocation 146GL/ year in total of the Territory’s water resources.


Business, trade and investment



the development and implementation of a Special Economic Zone in northern Australia

identification and implementation of meaningful changes to resolve labour and skills shortages, primarily through welfare reform to transition latent talent to the workforce and the ongoing development of migration policies to address critical skill shortages in northern Australia

continuation of the focus on red tape reduction and regulatory reform to improve business certainty and create opportunity. Specific recommendations include:o a strategic revision of the Coastal Trading

(Revitalising Australian Shipping) Act 2012 to allow development of a viable expedition cruise ship tourism sector able to operate between northern Australian ports without the need to transit through international ports

o implementation of a trial across the three northern Australia jurisdictions to harmonise rental vehicle taxes and regulation, with a view to the scheme being extended across the country in future

o Consideration of regional tax reforms that establish personal and business incentives to operate from northern Australian regional business hubs

arrangements to capitalise on the geographic and logistical positioning of the Northern Territory as Australia’s closest port to South East Asia by investing in airports and airport operations to open tourism and trade opportunities

reforming airport security through:o sharing airport security costs across the

national aviation network, similar to Air Services Australia’s provision of air traffic control and aviation fire and rescue services at major airports, which would see the cost shared equally per passenger; or

o establishing a new risk profiling approach that recognises the Territory’s airports are low risk compared to other major airports

that the RAAF be required to upgrade its ARFFS category at Tindal to adapt to the changing trend of the use of larger, narrow body aircraft This should be at no cost to the Territory given the tourism and trade opportunities that will flow

consideration of the easing of current cabotage rules for air service, taking into account the potential impact on Australian carriers and services operating in the Northern Territory, along with other border protection requirements

simplification and streamlining of Australian Government decision-making criteria and service provision for aircraft cargo arriving at a non-international airport

continuation of the Australian Government’s trade liberalisation initiatives.

It is clear that significant strategic opportunity lies to Australia’s north and that mutually advantageous engagement with Asia is an important nation building exercise in terms of economic, cultural and strategic development.

The Northern Territory is ideally situated to act as a strategic hub for Australia. Most of Asia’s population lives within a five hour flight of Darwin and shipping times to Darwin are significantly shorter than to the rest of Australia. The coincidence of position, transport and logistics, available and potential energy and food resources, well-developed relationships with Asia and an increasingly affluent Asian society puts the Northern Territory in the box seat to capitalise in terms of accelerated economic development under the right policy settings and with strategic early investment in critical infrastructure.

A low population base and associated shortages of labour are critical inhibitors to the economic and social development of the Northern Territory. There are three significant potential major sources of labour for the Northern Territory: internal migration, overseas migration and the high number of unemployed or underemployed remote area residents. There are a range of measures, mostly low or no cost, which could be introduced to boost the Northern Territory’s population and therefore its workforce.


Reducing the current regulatory burden on business is another opportunity for low cost change, particularly in the tourism industry. Tourism is a significant contributor to the Territory’s economy. It is anticipated that with the right policy and regulatory settings, most of which sits in the Federal domain, tourism can be worth $2.2 billion to the Northern Territory by 2020.

Trade

In a display of its commitment to strengthening economic, and cultural ties with South East Asia, and to further build on its international profile, the Northern Territory Government has recently engaged former Chief Minister Terry Mills as the Northern Territory’s Commissioner to Indonesia and the Association of South East Asian Nations . An important part of the Commissioner’s role will be to rebuild the live cattle trade and to help the Northern Territory conduct more business and build closer ties with the region.

The Northern Territory Government urges the continuation of a collaborative approach to trade liberalisation. In this context, it congratulates the Australian Government on finalising the Free Trade Agreement with Japan and encourages finalisation of Free Trade Agreements with Korea and with China and finalisation of the Trans-Pacific Partnership Agreement.

A number of more specific policy reform initiatives are identified below that aim to strengthen and incentivise strong trade relationships and business opportunities for northern Australia. These recommendations are built on an understanding of operating efficiencies and challenges in more remote regional centres in northern Australia.

Special economic zones

The Northern Territory Government believes that the role of government is to create a regulatory and economic environment that fosters viable private investment. One way governments can achieve this is through the establishment of a Special Economic Zone (SEZ).

SEZs take various forms and names across the world, depending of course on the particular focus or purpose of each SEZ. However, in simple terms a SEZ is generally a special geographical area in which incentives are offered to drive certain activities. These incentives may include tax incentives, simplified regulations and access to infrastructure arrangements. The aim of a SEZ is to facilitate greater business investment in northern Australia, and in Australia, than would

otherwise have been achievable thus delivering economic, social and community benefits to the north and to the nation more broadly.

It is clear that bold and innovative action is required to capitalise on the opportunities arising from the rapid development of Asia’s middleclass. Establishing a SEZ is regarded by the Northern Territory Government as a strategic move to strengthen and diversify the economy of all three jurisdictions in northern Australia, acting as a catalyst for northern service delivery hubs into the emerging Asian marketplace.

In order to implement a successful SEZ in northern Australia, the Australian Government needs to support the initiative and implement a number of legislative and policy changes. No jurisdiction can on its own create the necessary policy and regulatory environment required for a SEZ to be successful.

The Northern Territory Government is looking to engage in further discussions with the Australian Government about developing a SEZ for the Northern Territory.

Workforce shortages and welfare reform

Integral to the sustained development of northern Australia is increased prosperity in remote and Indigenous communities across the north. A recent Reconciliation Australia report stated that the economic benefits of closing the gap in Indigenous employment outcomes would benefit Australia’s GDP by $24 billion by 2031, with the biggest gains to be made in the north.

World Bank and other international research demonstrates that sustained growth increases prosperity and lifts living standards for all. Increased investment in services to and in remote communities is essential to sustained socioeconomic growth.

A large ‘latent’ pool of labour exists in the Northern Territory in the form of unemployed or underemployed residents of remote communities in the Northern Territory. It is expected that a one third reduction in unemployment benefits across the Northern Territory would save the Australian Government $262 million per year. The Northern Territory Government urges the Australian Government to commence a dialogue with governments and communities on the implementation of models that can move welfare dependant people into the workforce, especially in remote communities.


The long-term social wellbeing of remote and regional communities relies on sustainable economic growth. This growth will, in the longer term, contribute to the national economy through greater private sector economic activity and increased labour force participation, lessening the need for welfare programs in remote and Indigenous communities. The Northern Territory Government has initiated innovative ways of unlocking and supporting economic development in remote and Indigenous communities to increase the social and economic participation of Territorians living in communities.

The Northern Territory maintains that the Australian Government’s recent introduction of the Remote Jobs and Communities Program appears to have reduced the critical wrap around support that saw previous employment programs succeed in regional areas. Wrap around support would include, but not be limited to, improved linkages between registered training organisations, employment service providers, employers and Centrelink to improve outcomes for job seekers.

Such support is provided through the Northern Territory Government’s Indigenous Employment Program, which is a pre-employment program specifically designed to attract Indigenous jobseekers. The program aims to equip each trainee with a foundation of skills relevant to entry level positions. Trainees undertake a targeted training program that incorporates accredited vocational training. This is complemented by work readiness development and work-based learning. On successful completion participants will receive a permanent position within the Northern Territory Public Service where support continues. Indigenous employment in this sector has increased from 5 per cent in 2002 to 8.4 per cent in 2013.

Further, failure to recognise and promote practical application of wrap around support makes innovative employment programs such as Sentenced to Job pilot programs difficult to fund under a single funding stream due to the multi-faceted nature of the program. (case study below).

A key element to sustainable employment is having programs that get people into jobs and continue to develop them in those jobs. This approach would see a critical mass of Indigenous workers moving through a range of levels in a work environment where they can experience success, rather than having workers come into jobs through unemployment programs without systemic support for progression.

In association with the above, initiatives are required to assist Indigenous Australians in joining our increasingly mobile workforce. This would not simply be a matter of moving people on to fill a job. A more holistic approach is required, one that will give careful consideration to coordinating the cohort of workers between jobs (labour hire) and examining how such a mobilised workforce might be sustained and supported when they are back in community and between jobs.

Given the history of, and predominance of, entrenched welfare dependency in parts of the Territory, it is difficult to see how job outcomes can be improved without changes to existing welfare arrangements. Such changes are entirely consistent with the holistic approach referred to earlier.

The Northern Territory notes the recently released Forrest Review and is committed to working collaboratively with the Australian Government to develop innovative ways to support Indigenous people to move towards meaningful, appropriate and secure employment. The social benefits of people being engaged in meaningful work cannot be understated. It is essential for the successful development of the north that we ensure our people in rural and remote northern Australia have the means and opportunity to work. The Northern Territory Government would like to be further engaged and is currently drafting a position paper to assist in identifying pilot sites and approaches to better engage Indigenous people and their communities into economic participation.

Case study 5 – Sentenced to a Job

One of the challenges confronting the correctional system in the Territory is the continued overrepresentation of Indigenous people in prisons. Indigenous people represent approximately 30 per cent of the Territory population, but comprise 82 per cent of the adult prisoner population.

The Northern Territory prison population has grown over the last 20 years at a rate greater than other jurisdictions and recorded the highest recidivism rate with 49 per cent of prisoners returning to prison within two years.

This continued re-offending and subsequent re-imprisonment is contributing to unsustainable growth in the prison population.

Indigenous people, upon release from prison, face a number of challenges reintegrating into the community, in particular, finding employment and accommodation. These challenges are often exacerbated by low levels of literacy, numeracy and basic skills, and lack of employment options in remote communities.


The Northern Territory Government (is determined to reduce re-offending and improve public safety by assisting prisoners to obtain educational and vocational qualifications to get real jobs.

Sentenced to a Job Program

Under the Sentenced to a Job program, the Northern Territory Department of Correctional Services is working to ensure that its adult correctional centres are providing appropriate work-readiness skills, literacy and numeracy education, and employment opportunities for as many prisoners as possible.

The Sentenced to a Job program also forms part of the Government’s Work Not Play election commitment. Work placement, training and development opportunities offered by employers in the community help prisoners to get real life familiarity with employment. This is crucial to helping offenders resettle into the community and to lead productive, law abiding lives.

The program is designed to:

give prisoners an opportunity to integrate and adjust to community life prior to release

teach prisoners good work ethics and boost their own esteem and to continue in employment after release

assist prisoners to renew their community ties and make new social relationships and take responsibility for their own behaviour through privileges associated with the program

assist the prisoner to financially support their family or dependents

assist the prisoner in the payment of fines and levies.

Prisoners performing paid work under the Program contribute 5 per cent of their salaries and wages to support Northern Territory victims of crime, pay board and lodgings and pay taxes.

The program is open to any prisoner serving sentences of between 3 months to 14 months, subject to suitable history.

Outcomes

At 6 November 2013, 55 prisoners were in paid employment and 49 were undertaking volunteer (unpaid) employment opportunities. Participation rates fluctuate on a daily basis due to prisoners being released and prisoners having achieved the correct security rating. Since September 2012, a range of short term employment contracts for prisoners have been offered by numerous Territory businesses.

From January 2012 to 31 October 2013 the reoffending rates of prisoners participating in the Sentenced to a Job program are:

84 in Darwin, 11 returned to prison 21 in Alice Springs, 6 returned to prison 20 in Barkly, 5 returned to prison.

Of the above total of 125 prisoners in paid employment, only 22 returned to prison, a recidivism rate of only 17.6 per cent, compared to the recidivism rate of the general prison population of 49 per cent.

Indigenous prisoners in the Northern Territory have responded well to the Sentenced to a Job Program. It provides skills that are useful and transferable to a wide range of work settings in the external environment, attaches prisoners to a connected network that are all focussed on the same outcome, namely transitioning them successfully, many for the first time, to a mainstream living experience that includes paid work and that strengthens them to avoid returning to prison..

Skills shortages and overseas migration

Solutions to skills shortages in Australia need to be fit-for-purpose. The Northern Territory Government welcomes the implementation of a pilot Designated Area Migration Agreement in the Northern Territory and will continue to work closely with the Australian Government to finalise implementation planning.

Given the importance of overseas workers supplementing the Northern Territory’s workforce, the Northern Territory Government will use every opportunity to lobby for change to skilled visa/migration programs so that they have the flexibility to meet the needs of Northern Territory employers. In a submission to Australia’s Migration Programme 2014-15, the Northern Territory Government highlighted a range of policy and process changes needed to suit the Northern Territory’s labour force demands. A submission to the Independent Integrity Review of the subclass 457 visa program further canvassed policy/process changes to make that type of visa sensitive to the needs of Northern Territory employers.

Geographical dispersion is fundamentally important for Australia to gain maximum benefit from skilled migration, but is currently not occurring effectively. Successive changes to skilled migration policy in recent years have virtually removed concessions and/or incentives to encourage skilled migrants to settle outside major Australian metropolitan centres. Refocusing on the needs of regional Australia will be essential to encourage the skilled migration necessary to develop northern Australia.

Other changes to migration policy should:


provide business-friendly support mechanisms to assist small and medium enterprise employers through the complex processes and confusing electronic systems for permanent employer nominations

ensure employment in the tourism industry is included as eligible prescribed work for the Working Holiday Maker second visa

allow for the introduction of full work rights for the dependents of student visa holders who are studying in university campuses in regional Australia

revise the interpretation of the international student visa work entitlements to allow the level of flexibility that the Knight Review recommendations intended

simplify the administrative process required to gain approved employer status, and a reduction of the administrative requirements placed on employers to participate in the seasonal worker program

revise the Training Benchmarks to reflect the difficulties small employers face in recruiting and training Australians in regions where access to workers is extremely limited or where unemployment levels are low.

Visitor visas to engage with Asian tourism markets

The cost and ease of access to visitor visas contributes to the overall cost of a holiday to Australia. The process of seeking a visa is often a consumer’s first impression of Australia and onerous visa processes can make Australia less competitive. Tourism is a significant contributor to the Northern Territory economy.

With access identified as a critical issue, priority should be given to moving towards online processing and allowing applications in an applicant’s language. While an Electronic Travel Authority is available for 32 countries at cost of $20 (being a service fee for online applications), these are skewed towards western European and Commonwealth countries with the Electronic Travel Authority not available to some of our neighbours to the north. For example, there is current inequity in the direction of travel, with a visa to Indonesia for Australians costing US$25, however a visa to Australia for Indonesians costing a minimum of $130. Australia should move towards online visa processing, with Indonesia and East Timorese nationals prioritised. This changed arrangement should also be reflected in pricing structure.

Case Study 6 – Visitor visa example

At present a Chinese tourist generally applies for a tourist stream visitor visa, which comprises a 20 page form to be completed in English, plus a form (in Chinese) setting out family composition and providing evidence they have the financial means to support themselves while on holiday in Australia. If a child is to travel, a consent form is required which is also in English. Applications need to be submitted to an Australian visa application centre (located in Beijing, Shanghai and Guangzhou) in person, or sent by mail or courier. Chinese people cannot apply for a tourist visa online. The visa costs $130.

Cruise cabotage

Growth in tourism will be a major contributor to the accelerated development of northern Australia. Tourism is worth more than $1.5 billion annually to the Northern Territory economy with the opportunity achieve a $2.2 billion contribution by 2020. To allow this to happen, all avenues to generate tourism opportunities must be explored.

There is considerable potential to develop an expedition cruise ship tourism sector in the Northern Territory. Federal Government legislation, in the form of the Coastal Trading (Revitalising Australian Shipping) Act 2012 is a major inhibitor to this sector.

This results in unrealised economic opportunities for coastal communities in northern Australia and particularly impacts on Indigenous communities that can offer art sales and cultural experiences. Scheduled and opportunistic cruise ship visits represent a major economic development opportunities for coastal communities and ports such as Darwin and Broome but this is being stifled by current Federal legislation. The Australian Government is urged to alter the Act to allow these opportunities to be realised.

Cabotage restrictions on expedition cruise ships impact on their ability to visit remote communities and inject economic stimulus in these areas. This legislation forces foreign flagged cruise ships under 5000 gross tonnes to travel to a foreign port in transit between two Australian ports. Passenger ship ventures operating in northern Australia are typically under 5000 gross tonnes, forcing transit through international ports in between Australian ports. For example, a ship travelling between Broome and Darwin has to go via East Timor to meet current requirements. This effectively precludes going via the Kimberley coast, which is a tourism drawcard and it exacerbates risks to biosecurity. Main ports in the


regions also miss out on revenue from the provision of shore-side services such as fuel, port fees, pilotage, food provisions, water and waste services and maintenance.

Case Study 7: National Geographic Orion

The Orion is foreign-flagged passenger vessel under 5000 gross tonnes which was introduced in 2005, offering Tasmanian, East Coast, Barrier Reef, Top End and Kimberley itineraries. Increased regulation around coastal trading in recent years has resulted in significant new barriers and costs for small expedition cruise operations in Australia.

Orion has advised that it costs approximately$50 b000 per voyage to sail to East Timor in order to comply with cabotage on the Kimberley route between Darwin and Broome. The on-board experience for passengers suffers, as this requires two days sailing with no scope for expedition activities.

Lindblad, which operates the cruises, has advised that from 2015 it is increasing its cruises around Borneo and reducing its cruises from Darwin to Broome. This means it will have reduced their time in northern Australia by 50 per cent compared to the past few years. It is reasonable to assume that the cost impost of cabotage was a major reason for the company’s decision.

Aviation

Improving air access to the Territory from interstate and overseas, as well as ensuring regional and remote connectivity, is critical for realising the developing Australia’s north agenda.

National aviation regulatory requirements continue to have a disproportionate impact on the Northern Territory compared to other jurisdictions.

For example, the Passenger Movement Charge of $55 per person applies to all passenger departures on international flights from Australia. As the majority of international departures from Darwin International Airport are short-haul South East Asian flights, the charge constitutes a much higher percentage of the airfare (generally more than 13 per cent) compared to flights departing other Australian capitals.

In March 2014, the United Kingdom announced it was reducing its Air Passenger Duty in recognition that this was expected to support export trade confidence by strengthening links to overseas markets. A revised method of determining the Air Passenger Duty now applies that involves a differential rate determined on factors such as the distance and class of travel.

Australian Government security requirements impose a disproportionate cost burden on low

passenger volume airports. Fixed security costs dictate the cost-recovery charge and are markedly higher in the Northern Territory than other major Australian airports. Security requirements not only impact on the cost of air travel, they also act as inhibitor for the use of larger aircraft that could service the Territory’s regional and remote areas, and decrease the attractiveness of the Territory’s airports to airlines, particularly low cost airlines and airlines operating marginal routes.

A 2010 Access Economics study undertaken for the Northern Territory Government found that having the Australian Government fully fund airport security at Alice Springs and Darwin would generate $110.3 million in real output (real GSP) and $33.1 million in real household consumption (a proxy for economic welfare) for the Northern Territory. Benefits would be considerably larger if the policy change induced additional capacity.

RAAF Base Tindal (Katherine) is currently nominated as the standard alternate airport for Darwin International Airport, with Aerodrome Rescue and Fire Fighting Services (ARFFS) provided by RAAF personnel. Other alternate airports are too far from Darwin to be commercially viable. In 2013, Malaysia Airlines commenced Boeing 737-800 operations from Kuala Lumpur to Darwin. A number of airlines, including SilkAir, are opting to operate newer generation aircraft such as the B737-800. These aircraft are larger, and require higher category ARFFS facilities to be implemented at alternate destinations to remain engaged in the local market. RAAF personnel are providing higher category ARFFS as required and charging costs to the Northern Territory Government, creating a short term solution. The Northern Territory Government is seeking engagement and investment from the Australian Government to implement the necessary changes that will secure opportunity in the long-term.

In the aviation context, cabotage refers to the right of a non-Australian airline to carry domestic passengers on domestic legs within Australia. In its February 2014 submission to the Federal Parliamentary Inquiry, the Northern Territory advocated that the Australian Government ease cabotage rules for air services to enable increased access, and frequency of services, within northern Australia. The Northern Territory Government recognises the need to take into consideration the potential impact on Australian carriers and


services operating within the Northern Territory, along with other border protection requirements, but also sees national merit in incentivising greater access to the Australian market by international carriers, and particularly carriers servicing the Asian tourism market.

Complex and fragmented Australian Government requirements in relation to aircraft landings at non-international airports are currently impacting the aviation sector in Alice Springs. The current circumstances act as a disincentive to business and a simplification of decision-making criteria and service provision for aircraft cargo arriving at a non-International airports is strongly recommended as a part of a policy framework that intends to realise developmental potential in northern Australia.

Case Study 8: Asia Pacific Aircraft StoragePty Ltd

Asia Pacific Aircraft Storage Pty Ltd (APAS) provides an aircraft storage facility that caters for the short, medium and long-term storage needs of the airline industry. The facility is on a 100 hectare site within the Alice Springs Airport complex and has capacity to expand. Alice Springs provide the perfect environmental conditions for aircraft storage and is the first of its kind in the Asia-Pacific region. APAS has recently signed an agreement for the storage of multiple aircraft from an Asian based carrier.

The National Passenger Processing Committee, which is the Australian Government decision-making body for aircraft landings at non-international airports recently rejected an application from APAS to have an aircraft (which was carrying no passengers or freight) processed at Alice Springs Airport. That aircraft, and others arriving since, have been required to land in Darwin for customs and quarantine purposes before continuing onto Alice Springs, incurring additional landing fees, ground handling fees (aircraft marshalling and tow push-back), extra fuel costs resulting from a non-direct flight path and additional descent and take off, additional crew hours and engagement of a certifying engineer in Darwin and Alice Springs to meet the arriving aircraft.

Rental vehicles

Rental vehicle use is a significant contributor to the tourism and mining industries. It is estimated that 14 per cent of interstate holiday visitors and 10 per cent of international holiday visitors to the Northern Territory use rental vehicles. Regional tourism operators across northern Australia rely heavily on road-based tourism, and rental campervans have high appeal for international travellers.

At present, as vehicles move around the country, national rental operators are required to comply with the eight state and territory-based regulatory regimes. Each jurisdiction requires vehicles to be garaged for certain periods of time in order to fulfil the requirements for registration and compulsory third party insurance. This can distort the market and creates onerous requirements on rental operators, particularly during seasonal periods of demand in one jurisdiction. In extreme cases, rental operators will truck empty vehicles back to ‘home base’, which is counter-productive to efficient business operations in seeking to maximise occupancy, reduce costs and carbon emissions.

It is recommended that policy reform be considered, commencing with a pilot process to trial the harmonisation of regulation (including taxation) of the industry across the three jurisdictions that occupy northern Australia. The development of a successful scheme would create the potential to transfer to national implementation at a later date.

Red tape and regulation

The Northern Territory Government supports the Australian Government’s commitment to reduce the regulatory burden on doing business in northern Australia. In an effort to reduce the red tape burden on Territory businesses the Northern Territory Government has introduced the:

Red Tape Business Advocate who provides a high-level contact and advocacy in government for business owners and managers to raise issues or concerns regarding red tape impacting on their businesses or investment proposals and working to remove or reduce all unnecessary red tape impediments

Red Tape Hotline which provides a direct connection to the Red Tape Business Advocate or to an alternative senior officer


Red Tape Abolition Squad which aims to eliminate unnecessary red tape and minimise necessary red tape in the Northern Territory. This includes working across all levels of government.

The Northern Territory Government encourages an ongoing dialogue through the COAG process.



Free Trade Agreements: The Northern Territory Chief Minister has encouraged and supported the Federal Trade Minister and the Prime Minister in progressing and finalising free trade agreements with Japan, Korea and China. The Northern Territory Government welcomed the establishment of a Timor Leste Consulate General’s Office in Darwin.

Strategic trade missions: The Northern Territory Government, in partnership with local business, has embarked on a program of overseas trade missions to priority markets including China, Japan, Indonesia, Vietnam, Thailand, Singapore and Malaysia. The Northern Territory Government has also recently appointed a Commissioner to Indonesia and ASEAN. A clear message now being promoted is that the Northern Territory and northern Australia offer significant investment opportunities to help service the growing food and energy demands of Asia. This includes investment in food production, mining and energy and new infrastructure. This message is being promoted at a range of high level business conferences and meetings overseas and interstate.

Investment support: To supplement our strategic trade missions, a whole-of-government investment guide and directory has been updated with refreshed information on investment opportunities. This publication is available online in English, Japanese, Chinese and Indonesian languages. A draft Asian Engagement, Trade and Investment Strategy has been developed which provides a whole-of-government focus on priority markets and sectors. Agriculture and aquaculture investment opportunities are featured in the Investment Directory on the InvestNT website. The Northern Territory Government Department of Primary Industry and Fisheries is an active participant in Austrade’s Agribusiness

Working Group and has submitted Ord Stage 3 and Tiwi Islands for inclusion in the Australian Government’s soon to be released Investment Pipeline publication. A significant number of agriculture and aquaculture investment enquiries have been made through Austrade and InvestNT.

Trade Support Scheme: The Northern Territory Government has modified its Trade Support Scheme to further support the trade and investment needs of local business by enabling them to bring in overseas buyers and investors to see first-hand Northern Territory products, services and commercial opportunities. The Northern Territory Government has also continued its campaign to support local manufacturers by directly connecting them to prime global contractors associated with a number of the Territory’s major projects such as Ichthys and the Shell Prelude Project.

Food industry market development: The Department of Primary Industry and Fisheries has established the Food Industry Development Group. The group is charged with looking at pathways to drive food export into niche high value markets in Asia. The Northern Territory Government has been successful in developing new markets for cattle, and more recently buffalo, into Vietnam with record numbers of cattle being exported to Vietnam this year. The focus will be the maintenance of existing livestock markets to Indonesia and Vietnam (through a range of programs), an increased focus on the export of our horticultural products and will also include potential seafood and meat products.

Port and infrastructure: The Northern Territory Government, in partnership with the Darwin Port Corporation, has jointly promoted the capabilities of the Darwin Port and associated infrastructure, including the new Marine Supply Base, and the ability to service the neighbouring Asian region. This includes presentations and exhibition stands at strategic industry conferences such as South East Asian Australia Offshore Conference and Australian Oil and Gas Conference.

Aviation: An issues paper has been released to commence a process to develop a Northern Territory Aviation Industry and Services Strategy. Submissions are being sought on opportunities for, and impediments to, establishing the Northern Territory as northern Australia’s gateway to the nation, Asia and the rest of the world.


Education, research and innovation



funding the development of the AgNorth CRC development of regional advisory committees

to prioritise and assess research needs that apply for funding under the Fisheries Research and Development Corporation

funding the transition of existing research partnerships between government and the Charles Darwin University to a Centre of Excellence in Tropical Aquatic Resource Management

prioritising northern Australia, and specifically the Northern Territory, as a preferred destination for international students in the upcoming Australian Government international education strategy

funding the Cooperative Health Research Projects of regional significance

providing establishment and recurrent funding for the development of a prevocational medical education and training centre based in Darwin.

The Northern Territory already has a solid base of well-regarded education, training and research institutions. As such the Northern Territory is ideally positioned to expand its involvement in knowledge markets to meet the needs of the emerging economies in neighbouring countries that share our tropical conditions. For example, Charles Darwin University, the Menzies School of Health Research, Royal Darwin Hospital’s National Critical Care and Trauma Response Centre and the CSIRO facility all have established research and education footprints and internationally recognised expertise in fields pertinent to Asian engagement.

The Australian Government is strongly encouraged to investigate and fund the further development of existing institutions and new cooperative initiatives to catalyse greater engagement with developing economies to our north. Such institutions are powerful population attractants and will do much to improve the Northern Territory’s skills base and Australia’s position as a regional knowledge provider.

The Northern Territory has been active in investigating a range of long term initiatives, including the establishment of a Centre of

Research Excellence in Rural and Remote Health, a Centre for Communicable Disease and a medical centre in Darwin (with potential to expand into Asia). The Northern Territory has also built on the existing National Critical Care and Trauma Response Centre at the Royal Darwin Hospital and is looking at an international grammar school. Seed funding has also been put into the development of a Research Centre of Excellence for Aquatic Resource Science to instigate the development of critical knowledge about aquatic resource use. The Northern Territory envisages becoming an international education and training hub involving private and public providers with on-site and on-line delivery facilities. Depending on funding assistance, much of this can be achieved by building on the Northern Territory’s existing institutions, which is a low cost approach relative to building new institutions.

Networks and capabilities

The Northern Territory Government, in partnership with Japanese gas and oil corporation Inpex, has committed $11.6 million to build a new Open Education Centre in Darwin that will open in June 2016. The Centre currently delivers online education and training to approximately 550 students in Years 10-12 across the NT. The number of students and variety of courses delivered is limited by bandwidth and access issues. This situation is particularly problematic for people living in remote Indigenous communities and outstations, who, with appropriate skills gained through training and education, would be able to get jobs in areas where there are medium to long-term skill shortages. This is particularly relevant for the pastoral, seafood and mining industries, and health related service areas.

Additional investment in state of the art telecommunications architecture would also allow the Centre to commence on-line training and education courses in targeted parts of South East Asia. For example, a ready market exists in the eastern provinces of Indonesia, especially in health related services and for secondary school students requiring International English Language Testing System qualification for tertiary entry. The Northern Territory Department of Education is currently negotiating with the South Australian Certificate of Education Board (SACE) to deliver the International SACE qualification to south-east Asian students. This approach would enhance


pathways to further study at Charles Darwin University, a wide number of international universities and also into skilled workforce vacancies across northern Australia.

Skills and industry development

Northern Agriculture Co-operative Research Centre

The Northern Territory Government has been leading and coordinating work on the establishment of a Northern Agriculture Co-operative Research Centre (known as the AgNorth CRC). The partners are the Northern Territory, Queensland and Western Australian governments, the Rural Industries Research and Development Corporation, University of Queensland, James Cook University, Charles Darwin University and the CSIRO. Other bid members are University of Western Australia, Australian Bureau of Agriculture and Resource Economics and Sciences, the Bureau of Meteorology and Southern Cross University.

The AgNorth CRC is intended to provide a collaborative platform to address challenges that have constrained food production and broader development for 150 years. The AgNorth CRC will draw together the best partners and collaborators to address the six policy priorities outlined in the Green Paper. While it is understood that the Australian Government may consider an alternative delivery mode that that of a CRC, the background work for the AgNorth proposal is well developed and backed by considerable intellectual horsepower that has evolved through a thorough planning process, which will be a solid base for any research model that the Australian Government is considering.

Northern Territory Research Precinct

The Northern Territory Government wishes to establish a Research Precinct at the Charles Darwin University. It is intended all research bodies in the Northern Territory will be co-located at, or intimately linked to the Precinct. The development of a Research Precinct will provide greater synergy to knowledge inputs driving northern development.

Fisheries

The work being done in fishery research and management is a good example of cooperative governance across northern Australia. Existing arrangements provide for the shared management of fishery resources across tropical

Australia. For example, the Northern Territory actively manages the harvest of offshore tropical snapper species from two fisheries, the Timor Reef and Demersal fisheries, by joint authority arrangement with the Australian Government.

Initiatives are already underway to extend the coordination of fisheries management between neighbouring jurisdictions. Memoranda of Understanding exist between Queensland, the Northern Territory and Western Australia to coordinate how shared stocks are managed. Executive-level officers with strategic oversight of tropical fisheries in Australia meet regularly as the Northern Australia Fisheries Committee to ensure a coordinated approach to tropical fisheries resource use and development is taken. That committee has a strategic plan in place that paves the way for future development processes.

Another example of cooperative management and research is the Northern Research Partnership involving all northern jurisdictions and the Australian Government. The partnership is moving into its third year of operation and has led to a coordinated and collegiate approach to fisheries research and development for tropical waters in Australia

The Northern Territory Government, through the Department of Primary Industry and Fisheries, has invested in a strategic partnership with Charles Darwin University to establish a Centre for Applied Aquatic Research. The partnership is based on talented early career specialists in aquatic resource science. The intent of the partnership is to identify strategic investment partnerships that would catalyse the establishment of a regional research Centre of Excellence in Tropical Aquatic Resource Management.

International education markets

The Northern Territory Government will shortly be announcing a 10 year strategic plan to grow the number of international students studying in the Territory. In 2012-13 international education and training contributed approximately $50 million to the NT economy and was our 11th largest export earner. Through focussing on niche markets the strategy, collaboratively developed by government, business, industry, higher education and training providers and the Asia Education Foundation, plans for international education and training to move into the top five of Northern Territory export earners by 2024.

An international education and training hub, with a specific focus on Asia, is to commence operations


in Darwin in October 2014 and is fully funded by the Northern Territory Government.

The Northern Territory Government wishes to pursue the development of an International Grammar School with a boarding facility to service the secondary education needs of a niche clientele based primarily in south-east Asia. Research partners with high brand recognition will also be invited to establish a presence in the Northern Territory to co-deliver courses from the Charles Darwin University’s new School of Business at the Waterfront. [Source: International Education and Training Strategy 2014-2024]

Labour issues

The Northern Territory is currently experiencing a period of unprecedented economic growth which is predicted to continue in the coming years. With this growth comes an increased demand for labour and in particular, skilled labour. The demand for skilled workers is also increasing due to the multiple major projects underway or planned.

A challenge we face is that a continued high demand for skilled labour and low unemployment rates makes finding any worker, let alone skilled workers, problematic for Territory businesses. Along with a general labour shortage, skill shortages are still marked, particularly in professional and most trade occupations.

The Northern Territory Government makes a significant investment into vocational education and training in the Northern Territory. Funding for training delivery is targeted at supporting Territorians to develop the in-demand competencies and skills in areas aligned with growth industries and sectors. The Northern Territory is investing in training that will address skills shortages and that meets the current industry demands for skilled labour.

Looking to the future, as well as continuing to address skills shortages and meet existing demand for skilled workers, investment in training will also need to be strategically aligned to key sectors of economic development and growth, such as agriculture, mining, energy and tourism to name a few. Other major industry drivers of growth into the future are expected to be health, construction and education and training and it is expected that a demand for skilled workers for these industries will increase further, resulting in a need for increased training effort in these areas.

The delivery of vocational education and training operates within a national framework, which for

an individual, means they can achieve the same qualification no matter which state or territory they study in and the skills they develop are portable across borders. This national system of training also establishes a sound base for the Northern Territory, Western Australia and Queensland to work closer together on workforce development across the north of Australia. Such activity could focus on those aspects that are unique to the northern workforce and in particular, the foundation and emerging industries present in all three jurisdictions, for example, fisheries, mining, oil and gas.

Indigenous skills training

All northern jurisdictions have relatively high Indigenous populations. Indigenous communities have the potential to become a valuable source of skilled and semi-skilled labour. Vocational education and training will play an important role in developing the skills and knowledge of Indigenous Australians to enable them to actively participate in the future economic development of the north. A cross-border training effort will likely be necessary to achieve this outcome.

The Northern Territory Government believes that Defence could play a bigger role in engaging remote and regional Indigenous Australians. In particular, Defence could build on the success of its Regional Force Surveillance Units. Norforce, 51st Battalion and the Pilbara Regiment has been very successful in engaging Indigenous Australians. The Northern Territory Government sees an opportunity for these regiments to broaden their role to provide training, leadership development and provide role models across the north.

Consideration should be given to expanding the Norforce concept to Central Australia to form a Central Australia emergency response force or specialist search and rescue unit. The Northern Territory Government acknowledges that Norforce already has a presence in Alice Springs, but their focus is Borroloola. The new unit could encompass the Central Desert communities, APY lands, Wiluna and Docker River.

Thought should also be given to what role Defence could play in working with Indigenous persons in prison. Other jurisdictions for example the United Kingdom) utilise Defence service as a mechanism to transition prisoners to a structured role outside of prison. Inmates are already alcohol and drug free, have access to medical services and are probably in the best environment to transition to a role with Defence.


It is an avenue that is worth pursuing and would link in the Northern Territory Government’s Sentenced to a Job program.

Health

The Northern Australia Health Round Table is a group of senior health and education leaders from the northern jurisdictions. The group has identified a range of potential areas in which collaborative work could benefit the jurisdictions if suitable funding was available. These include the management of tropical diseases and the ability to maintain a sustainable workforce. It was also acknowledged that due to the proximity to Asia and Papua New Guinea, there were specific challenges and opportunities in relation to international health and clinical education.

The Director Generals, or equivalents, of health in Western Australia, Queensland, South Australia and the Northern Territory have identified Darwin as the future site for a Centre for Prevocational Medical Education and Training. The Centre will coordinate the recruitment, accreditation and education and training for prevocational medical trainees.

The establishment of this Centre will also provide opportunities for effective workforce planning and for supporting medical graduates into education and training programs and medical services in northern Australia. At present infrastructure funding in the region of $2 million dollars is being sought for the Centre. Recurrent funding must also be identified.

Case Study 9: A centre of excellence in integrated health education, training and innovation.

It is well recognised that the skills needed to generate health service innovations are not taught at health professional schools. Even after health practitioners graduate and begin to practice, the emphasis remains on quality improvement rather than development of new models of care and innovation. Without training in the skills, tools and methods of innovation, health services often respond to cost pressures by cutting services, which is counter-productive. By providing training in healthcare process innovation, it is possible to transform services to meet present needs and expectations, control the rise in health care costs and improve satisfaction.

With the Northern Territory’s unique geographical, demographic and logistical characteristics, the establishment of a single Centre for multidisciplinary education and training that focuses on innovating new models of care has merit.

Such a Centre would also provide an opportunity for different health professionals to come together and complement professional-specific training and to experiment with role contraction and expansions to find the model that is right for delivery of care in the Northern Territory. The scope of such a Centre would extend from pre-entry into health professional training to continuing professional development throughout the health professional’s career.

In future, an established Centre could enable service delivery models across the geographic region as a strategic expansion into servicing South East Asia with innovative education models.

The Northern Territory Government considers it an imperative that a full examination of policy options to develop innovative approaches to health service delivery and skills training be undertaken whilst developing the White Paper. Prime strategic options include (as examples):

the development of a Centre of Excellence via the Menzies School of Health Research

establishment of innovative regional training and workforce development models including programs such as the Aboriginal and Torres Strait Islander Health Practitioner Workforce initiative.



International education strategy: The International Education and Training Strategy Taskforce has finalised its report on development of a 10-year strategic plan for an international education hub in the Territory.

Indigenous education: The Share in the Future review of Indigenous education in the Northern Territory was completed in April 2014. The review report noted that despite many years of increased effort and resourcing, little improvement in the education outcomes for Indigenous students attending remote and very remote schools has been made. The review recommends a strategic program across all years of schooling and emphasises the need for long-term planning and resourcing to gain significant improvement in outcomes for Indigenous students.

In response to the review of Indigenous education in the Northern Territory a draft Indigenous Education Strategic Plan is being developed for implementation over a 10 year period.


Northern Territory Medical Program: The Northern Territory Government will work with Flinders University and Charles Darwin University to increase capacity of the Northern Territory


Medical Program and attract more medical students from the Indo Pacific region.

Northern Territory Centre for Disease Control: There is potential for the Northern Territory to develop a Centre for Disease Control similar to the tropical medicine centre in Townsville that has recently received Australian Government funding.

Agriculture Co-operative Research Centre (AgNorth CRC): The Australian Government

have suspended CRC funding for this year’s round, however they have encouraged continuation of the Northern Agriculture bid, which may be funded through the Developing Northern Australia White Paper process. The Northern Territory Government welcomes the establishment of this CRC in the Northern Territory.


Governance


The Northern Territory Government proposes the following:

the continuation of the Northern Australia Strategic Partnership in order to drive coordination and engagement in service delivery, infrastructure and engagement

the establishment of a ministerial council to support the work of the Northern Australia Strategic Partnership and to ensure that the northern Australia policy agenda and initiatives progress between meetings of the Strategic Partnership

to maximise the best use of all available resources, consideration be given to utilising existing governance structures, such as those in place to develop the National Remote and Regional Transport Strategy, to ensure the efficient implementation of White Paper initiatives.

relocation to the Northern Territory of Australian Government agencies or authorities, including Defence, where there are identified mutual benefits to such moves

a commitment to the sharing of data in relation to service delivery, particularly in Indigenous communities, to reduce the occurrence of duplication of effort by government and non-government organisations.

The Green Paper states that greater cooperation and coordination across government and effective community engagement is the key to ensuring governance arrangements support development in northern Australia. The Northern Territory Government agrees, and is committed to working with other jurisdictions and the Australian Government to drive and maximise the best use of all available resources. All levels of government need to work cooperatively and effectively to develop northern Australia.

Insofar as community engagement is concerned, the Northern Territory Government is committed to ensuring constituents are actively engaged with government in developing the Northern Territory through the work of the recently established Northern Australia Development Office.

The Green Paper also suggests that there may be some consideration of Australian Government agencies relocating to, or establishing a presence

in, northern Australia. The Northern Territory Government believes that there is merit in further examining possible relocation or collocation of government agencies in northern Australia, as well as place-based approaches to government policy planning and implementation in regional and remote areas.

The Green Paper also mentions the role local government plays in developing the north. The Northern Territory Government acknowledges the importance of local government in representing communities and in delivering services, particularly in remote communities. The Territory Government has made a number of recent changes to the framework for councils in regional/remote communities to ensure that communities have a voice in local decision making affecting them, including the introduction of regional councils and local authorities to support communities in council decision making processes.

Coordinated and cooperative governance arrangements

The Northern Territory Government believes that it is essential that the Northern Australia Strategic Partnership continues beyond the release of the White Paper in order to ensure that the goodwill and momentum which has been built during the Green/White Paper process is not lost. Strong and decisive leadership at the highest level will be essential to the governance structures that will drive the development of northern Australia.

The Northern Territory Government is supportive of using existing governance structures to ensure that initiatives under the White Paper are implemented efficiently and without duplication. A good example in point is the National Remote and Regional Transport Strategy.


Case Study 10: National Remote and Regional Transport Strategy

The Territory Government is leading the development of the National Remote and Regional Transport Strategy in partnership with the Queensland, Western Australia, South Australia and Australian governments.

The Strategy development process is underpinned by a governance structure that includes: an inter-jurisdiction officer working group established to develop the Strategy; jurisdiction specific industry/community test groups; the Transport and Infrastructure Senior Officials Committee; and the Transport and Infrastructure Council.

Given transport infrastructure is a key focus for both the Strategy and the developing northern Australia agenda, the governance structure that underpins the Strategy could be utilised as a key mechanism for facilitating the implementation of transport infrastructure actions included in the White Paper.

New governance architecture to drive delivery of outcomes into the future

The Northern Territory Government proposes that new governance structure in the following diagram is adopted to drive the northern Australia policy agenda in the future.

Strategic policy implementation that meets the intent of the top tier leadership provided will require the formation of new governance networking, including the creation of a Northern Development Ministerial Council that brings the

policy leadership of relevant ministers from the Australian Government and the three northern jurisdictions together as the prime movers of policy action. That Ministerial Forum will require strategic support from an independent Stakeholder Advisory Group and specialist advice from leaders in the areas of Indigenous development, natural resource and primary production development, regional and rural innovation and health services.

This is regarded as a minimum level of governance networking needed to coordinate development of northern Australia with clarity and tactical discipline. Other areas of expertise will be essential, particularly in the research and knowledge arena. They do not appear within the structure only because they are regarded as ‘shaping’ systems that will work with and influence all levels of the governance structure.

The Territory Government has already seen the benefits a ministerial forum can produce in relation to the work of the Committee of North Australian Agricultural Ministers. A key principle which binds the group is that northern Australia’s ability to supply markets to our north will be beyond the scope of any one jurisdiction and that a cooperative effort will be more effective in achieving better market access, which should translate into better profitability for northern producers.



COAG

North Australia Strategic Partnership

Regional Health Committee

Northern Agriculture Ministerial Commitee

Northern Development

Ministerial Forum

Strategic Stakeholder Advisory Group

Indigenous Reference Group

Regional Innovation Advisory Group

Regional and Rural Infrastructure

Commitee

North Australia Strategy Group

Outcomes and findings of the North Australia Joint Select Committee

Established Regional Development Australia Committees

Developing North Australia Online Forums and Open Engagement Strategies

Relocation of Australian Government agencies

The Northern Territory Government welcomes discussion about the partial or whole scale relocation of Australian Government departments and agencies to the Northern Territory and will do what is possible to facilitate such moves. Relocation is particularly suited to those agencies with responsibilities relevant to the development of northern Australia. As stated in the Green Paper, this could include the CSIRO, Biosecurity section of the Department of Agriculture, the Department of Infrastructure and Regional Development and Defence.

The Department of Infrastructure and Regional Development currently has a limited presence in the Northern Territory. An on-the-ground understanding of the Territory’s significant infrastructure and regional development needs and close working relationship would benefit both the Territory and Australian governments

Place based approach to policy planning and implementation

In addition to relocation of Australian government agencies to northern Australia, the White Paper should also consider ‘place-based approaches’ to policy planning and implementation in regional and remote areas. The development of place-based approaches has the potential to improve utilisation of resources on the ground, coordinate implementation effort and reduce the negative impact of short term funding. Place-based approaches are generally supported by cross agency and regionally based community governance structures that build local capacity to understand and support policy outcomes and drive improved planning in partnership with industry and community institutions.

The development of northern Australia is challenged by the significant loss of people with policy and governance experience and expertise in understanding the broader and specific issues in the complex governance systems that operate across northern Australia at a point when they are seeking career advancement and are at a highly productive time in their careers. There is a need to retain talented and experienced staff by developing opportunities for middle and senior managers to operate programs across the jurisdiction from northern Australian offices, ensuring their corporate knowledge and expertise benefits future development and planning. A place-based approach to regional and remote

policy initiatives in northern Australia is one way of ensuring that our middle and senior managers get the exposure and experience required to succeed in the unique northern Australia environment.

Defence

The Northern Territory Government will continue to lobby the Australian Government to increase the defence presence in the Northern Territory, including the United States Marine Corps. To support deployment to the Northern Territory the Northern Territory Government will continue negotiating with the Australian Government to identify land and other requisites to see the development of more training areas, port facilities, storage facilities and housing. Negotiations with prime defence contractors to establish facilities in the Northern Territory continue and the shared use of such facilities with industry, where appropriate, will be a priority

Using local industry and requiring prime contractors, currently concentrated in southern Australia, to provide support close to where Defence is based and operating in northern Australia, will grow industry capability and create increased volumes of work, bringing economies of scale. These changes can also have a significant long-term positive impact on the Defence budget through reduced costs as well as increasing Defence capability by increasing equipment availability and reducing response times.

Defence maintenance contracts awarded for delivery off-base, or ‘outside the wire’, have the potential to create a critical mass of work for industry when combined with civilian contracts. A business able to deliver a Defence contract outside the wire can benefit from existing work and infrastructure outside the wire, sharing overheads, reducing costs and improving viability through a broader client base.

Investment in shared infrastructure can develop new capability, contribute to a critical mass of work and increase the availability of infrastructure and viability of businesses. The development of a hardened barge ramp and associated hardstand and the use of existing commercial fuel terminal facilities by Navy in Darwin are examples of projects where commercial costs can be shared with benefits to Defence, industry and community. The long term nature of Defence contracts and the early identification of Defence as a user of infrastructure will attract investors and developers to new infrastructure projects in northern Australia.


The relocation and growth of Defence in northern Australia over the years has not been accompanied by a relocation and growth of Defence industry which remains entrenched in southern Australia. Defence is encouraged to review their procurement policy to account for the move of Defence to the north and encourage an industry posture aligned with that of Defence.

The growth in Defence in northern Australia and the increasing complexity of platforms based and operating there provides opportunities and challenges. An expanded Defence Materiel Organisation (DMO) presence in the Northern Territory will assist Defence and DMO to capitalise on the existing industry capability as well as further develop the capability to meet changing Defence requirements. The expanded DMO presence and understanding of industry capability can reduce support costs by increasing the level of support in location.

The Northern Territory Government has substantial amounts of land available for development. However, as development in northern Australia continues apace, land which would be of a strategic benefit to Defence may be allocated for other purposes. The Northern Territory Government is keen to undertake long-term planning in relation to the development of the Northern Territory with Defence and industry to avoid the urban encroachment issues so prevalent in southern states. Early engagement will also enable Defence specific requirements to be integrated into developments.

The Northern Territory Government would like to see the Defence Science and Technology Organisation (DSTO) undertake increased tropical research capability in northern Australia which would enable research more closely aligned to the area of operations for a large portion of Defence equipment and people. The Northern Australia Centre for Oil and Gas established at the Charles Darwin University to support the growing oil and gas sector is a strong example of collaboration between Government and industry with benefits to research and development as well as training. To this end, it is encouraging that the DSTO and Charles Darwin University have signed a partnership agreement focussing on issues such as long-term strategic engagement, improved mutual access to world class research infrastructure, identifying and developing education and training programs and promoting them to Defence employees.

Northern Australia Development Office

The Northern Australia Development Office (NADO) has been established and is contributing to developing the northern Australia agenda. NADO is designed to support industry, investors and the private sector interested in doing business in Northern Australia. . By bringing together key stakeholders, the Northern Territory Government has created a one-stop-shop for business and industry with an interest in northern development.

The Northern Territory Government supports the Northern Australia Strategic Partnership and would like to see this continue after the White Paper is released to drive coordination and to maintain the development of northern Australia as a priority.

Duplication of effort and governance in Indigenous service delivery

The Northern Territory Government commenced a review of Indigenous programs and expenditure in Aboriginal communities in early 2013 to identify inefficiencies and duplication. Data has been collected in the target communities but the project was deferred due to a need for Australian Government participation to gain a complete picture. This information, reporting from the National Partnership Agreement on Remote Service Delivery and a review of Stronger Futures implementation plans would provide a good base to work with the Australian Government in improving client outcomes by simplifying programs.



Champion Program: The Northern Territory Government has commenced the Community Champions Program which gives remote towns a direct linkage to Cabinet. Ministers and senior executives travel to remote communities for direct communication with leaders on issues and opportunities. Specific economic development projects proposed by the community may then be championed across whole of government.

First Circles Program: The Northern Territory Government is involving up to 30 Indigenous Territorians in its Indigenous policy decision making process. This will involve getting members’ views on how they would like to see


northern Australia develop. Members will develop leadership skills while being actively involved in decision making around Indigenous issues. There is a focus on emerging leaders.

Family Responsibility Program – Remote Northern Territory Communities: In close consultation with remote communities, this program aims to develop a pilot Northern Territory version of Queensland’s Family Responsibility Commission. Issues to be addressed are child safety, school attendance, lawful behaviour and responsible tenancy.

The trial will also seek to empower local community leaders to assist with enhancing individual responsibility, strengthening parental responsibility, supporting community and individual aspirations to engage in the real economy and will provide support for community members to engage with service providers.

Regional CounciIs and Local Authorities: In January 2014, the new category of councils, namely regional councils, was introduced under amendments to the Local Government Act. Regional councils have similar functions, roles, and responsibilities to municipal and shire

councils. However, unlike municipal and shire councils, regional councils have local authorities. Local authorities are intended to bring the voice of communities to the council table. They will have an active role in council decision-making, including budget decisions. The chair of a local authority will be a council member who represents a relevant ward. This will ensure there is direct line and voice from local authorities to the council. Local authorities will have a direct role in community planning which will contribute to the plan of a regional council.

Indigenous Governance and Leadership Development Project: The Northern Territory Government has a project where a team from Charles Darwin University is researching local governance systems and arrangements and developing a series of activities and resources to support and enhance the governance and leadership capacity of individuals and community decision making groups located in remote Northern Territory towns.


Summary

In the Northern Territory Government’s opinion the Australian Government’s decision to drive growth and development of northern Australia is timely and necessary. The natural resource, social and cultural capital of northern Australia, and the Northern Territory in particular, offers an outstanding opportunity for Australia to engage with the emerging powerhouse of the Asian economy. The Northern Territory is ideally positioned as a business and tourism hub to lead the way for Australia in this space. We offer Australia’s most proximal port to South East Asia and have an innovative way of delivering outcomes.

The policy platforms that are necessary if developing northern Australia is going to be successful and enduring are significant and most importantly strongly interdependent. The need for investment in keystone policy areas of economic and transport infrastructure are essential. However, infrastructure alone will not drive success.

Innovative solutions to up-skilling and activating a larger local workforce, coupled with innovative and streamlined skilled labour importation are also critical and the two issues go hand in hand: without workforce solutions the ability and need to roll out significant infrastructure programs is delayed.

Furthermore, without significant policy outcomes around reducing red tape and addressing a raft of transport, business and trade, knowledge, regulatory and governance related challenges, private sector investment will remain risk shy. Clear access entitlements to the natural resources of the Northern Territory (on land and in or under the sea), a business operating environment that provides flexibility and certainty and the knowledge needs to make optimal use of resources are all outstanding requirements that the Northern Territory Government was pleased to see a narrative emerging around in the Australian Government’s Green Paper.

Doing the work to convert the early narrative into a mature dialogue and clear policy direction will require ongoing collaboration between private industry, communities, the Australian Government and the three northern jurisdictions. How that collaboration is formed and how it operates under effective and fair governance arrangements remains a significant conversation point. It is a key reference point for how the issues of interconnectedness and integration will work – which in turn will define business confidence and investment. The Northern Territory Government looks forward to working closely with the Australian Government and our neighbours, communities and business partners to make real the outstanding opportunities that developing northern Australia offers us as a nation.


Documents

Web viewSEZs take various forms and names across the world, ... In 2013, Malaysia Airlines commenced Boeing 737-800 operations from Kuala Lumpur to Darwin