The big topic of interest at present is the Regional Development Australia Fund. The guidelines were released last month for this $1 billion five year program. Federal Minister Crean says this is a new approach to unlocking the potential of Australia’s regions via locally driven, creative solutions to regional needs. And he wants strong, well researched, strategic applications for projects that stack up.
Well a new approach was certainly needed. My advice to local councils is to take this very seriously. Let me explain why.
First, Crean’s mantra about wanting creative, locally driven solutions gives councils every right to seek a solid dialogue with him and his department. And much of this should be face to face, not via written submissions. So don’t be shy.
Secondly, there are 55 RDA Committees competing for the $1 billion. It won’t be divvied up exactly, but each region might expect roughly $40 million in grants on the basis that a notional $20 million from the Feds has to be matched by State, industry and perhaps council contributions.
This formula and process could become a permanent feature of the landscape – so best to get used to them!
Thirdly, the crying need – in rural Australia at least – is to find better ways of progressing good ideas. The stumbling block is the connectivity problem due to distance, cultural differences, Federal/State competition, personal rivalries, lack of familiarity with the issues, forgetfulness and stuff ups.
So when Crean and other Ministers talk about joined up agendas, tearing down silos in government, reducing red tape and fostering collaboration, it makes sense for Local Government to sign on to these ideals.
Indeed, you might think about making some of your RDA Fund projects a best practice collaboration model that delivers benefits far greater than the Federal grant.
Angles for RDA Fund projects
Putting the above ideals into context, Minister Crean says the RDA Fund will commit between $500,000 and $25 million per project. I forecast that very few projects will approach anywhere near $25 million due to demands on the program and associated equity reasons.
Crean says the funding will be directed towards lifting work skills and productivity, maximising the opportunity of broadband, sustaining our environment, promoting social inclusion and improving water and energy efficiency. Note too that they must also align with the RDA Plan for the particular region.
What sort of projects might really win favour? My preliminary thinking is that projects with the following angles will be highly regarded:
- creation of sustainable jobs in small towns, especially in ecotourism
- public infrastructure that facilitates globally connected, value added industries in rural regions, such as cool stores
- reduction of obesity and alcohol abuse through health and sports hubs
- better integration of migrants into communities
- Indigenous projects that have a realistic chance of creating sustainable jobs
- youth mentoring such as buddy systems involving mature age workers and pensioners
- vehicles for improved community cohesion like community centres and youth centres
- water and waste management including pipelines and aquifer storage
- revenue streams for the National Broadband Network.
I’d be wary of seeking funding for the following:
- roads and bridges – hard to make this innovative, and could be construed as cost shifting
- local airports – upgrades are critical in some regions to get bigger aircraft and lower airfares, but the costs are usually high and it could reduce your prospects for other projects
- regional transport hubs – regions should not get suckered into these when there is a separate Department of Infrastructure and the Infrastructure Australia agenda
- education infrastructure – surely the Building Education Revolution was enough – if not, go to the Department Education Employment and Workplace Relations
- health infrastructure – don’t get suckered here either.
- manufacturing and further processing – the days of subsidies to single firms are gone
- climate change – even the PM has given this the cold shoulder.
Crean and the independents should be applauded for this program and its aims. But there will be a deluge of submissions and many will be go nowhere because $1 billion isn’t much at a national level.
Councils should nevertheless work up their ideas, because I’ve got a hunch that the RDA Fund is going to evolve into an ongoing program. We are here to help.
‘Too late’ she cried
In 2005 I had a whinge in this column about the lack of weather radar coverage across central west and north west NSW, two of Australia’s most important agricultural regions. Farmers were desperate to anticipate upcoming rain belts to time their crop sowings and harvests.
The problem was that the radars at Moree and Wagga were too distant. The National Farmers Federation shared our concern.
Anyway I’d received the Ted Whitten flick pass from the Bureau of Meteorology (BOM) until I received an email later in 2005 indicating that BOM had received special funding in 2003 for a new radar at Gunnedah, and the expected completion date was in 2007. Well, the weather radar was finally commissioned at Gunnedah in September 2010!
The once in a generation benefits have been missed because the drought has come and gone, but the fact remains that eight years from decision to commissioning is a long time.
I’ve since been advised by a BOM spokesperson that Gunnedah was 20th on the list of 21 radars for upgrading or commissioning.
Clearly BOM management never made the connection between their radar roll out and its role in addressing the impact of the drought.
This is one small example of the lack of integrated planning across regional Australia, that is between agriculture, climate, transport, health, education, housing and community services.
As we keep saying, we need a Department of National Development.
Cowra Japanese Garden – correction
In the February edition, I highlighted the success factors of this facility despite it never having received financial assistance from Cowra Shire Council. However Mayor Bill West has written to explain that Council contributes around $250,000 per year to Cowra Tourism, which manages and operates the Garden. A substantial sum indeed.
It appears that my original source was referring to the lack of council support for capital works. This state of affairs surely reflects the constraints on cash strapped councils.
I got to thinking – seeing that the Feds have identified both the substandard quality of our regional tourism product and the critical importance of tourism in regenerating regions, would it entertain the notion of assuming joint responsibility (with state agencies) for capital works for regional tourism?
Such expenditure would need to meet a public interest test to ensure it didn’t simply subsidise the private sector. Such an arrangement would leave recurrent funding for tourism facilities to local councils, which are better placed in any case to determine such things.
To get back to the point, apologies to Cowra Shire Council for the unintended misrepresentation.
*Rod Brown is a Canberra-based consultant specialising in industry/regional development, investment attraction, clusters and accessing Federal grants. He also runs the Cockatoo Network. He can be contacted at apdcockatoo@iprimus.com.au or phone (02) 6231 7261.
