Regional Capitals Australia is today renewing our calls for the Federal Government to formally recognise the vulnerability of regional aviation and act to ensure regional routes operated by Rex Airlines continue.
Today’s call comes in the face of news that Rex Airlines has appointed voluntary administrators and suspended operations between major cities.
RCA Chair and Mayor of Albury City Council, Cr Kylie King stated that airlines that service regional Australia, in a cost competitive nature, are fundamental to the success of regional capital cities.
“Regional airlines support a range of industries to thrive including tourism, mining, construction and broader professional services,” Cr King said.
“Regional aviation connects people living in regional capital cities to better health and education services,” Cr King continued.
Today’s developments by also means that regional airports, which have made costly adjustments to accommodate new services through infrastructure upgrades, increased security measures and staffing are at risk of being left stranded with empty departure gates.
Almost 60% of regional airports operate at a loss, burdened by overwhelming regulatory and security costs and inadequate support for infrastructure funding.
In April this year Regional Capitals Australia warned that Bonza was unlikely to be the last airline that will face challenging economic circumstances.
“Recognising the urgency of this challenge, Regional Capitals Australia has put clear recommendations to the Federal Government as part of the Aviation White Paper consultation to sufficiently fund regional airports, reduce the burden of security costs and improve the competitiveness of regional aviation,” Cr King said.
“Supporting regional aviation should be a national priority, one that allows for equality of opportunity to be connected – regardless of where you live,” Cr King concluded.
News
RCA welcomes new members
Regional Capitals Australia is delighted to welcome on board new members Goulburn Mulwaree Council in New South Wales and City of Palmerston in the Northern Territory.
Located in the Southern Tablelands, Goulburn Mulwaree encompasses a land area of 3223 square kilometres and has a current population of 32,138 people.
The region produced over $1.74 billion in Gross Regional Product in 2021 with its largest employing industries being Health Care & Social Assistance, Construction, Retail Trade, and Public Administration & Safety.
Situated within a two hour drive of Sydney, Goulburn Mulwaree is a significant growth area as more and more people migrate from Sydney to our regional capitals.
Palmerston is the second largest city in the Northern Territory, located 20 kilometres from the Territory capital of Darwin.
Palmerston is a diverse community which is popular with young families and defence personnel.
With a fast growing population of 37,247, the city is currently undergoing a significant period of infrastructure growth and development.
IMAGE above is the newly constructed SWELL fitness and leisure centre in the Northern Territory city of Palmerston.
IMAGE below is an aerial photo of the NSW City of Goulburn.
Policy Update – Inquiry into Local Government Sustainability
Regional Capitals Australia has lodged a submission to the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport’s Inquiry into Local Government Sustainability.
The submission focuses on the challenges with:
- The current funding environment for local government, including rate pegging (NSW) and rate capping (Victoria);
- Declining Finanical Assistance Grants;
- the variable nature of State and Federal grant funding; and
- the expanding delivery role of regional city local governments amidst a growing population and cost shifting environment.
RCA’s submission breaks down the difference between regional capital city local governments and those in metropolitan settings. RCA has made the case that our members have a greater service and infrastructure burden not borne by metropolitan cities including:
- Water/utilities;
- Airports;
- Regional arts and culture facilities; and
- Larger road networks.
The role of regional cities as service hubs for their wider region is also highlighted using the example of regional airports and case studies.
From the Chair – July 2024
The first half of 2024 has been a busy and productive one for Regional Capitals Australia.
As the trusted voice for our regional capitals, RCA continues to provide strong advocacy and representation for our members on the issues impacting our cities.
RCA’s long standing and hard-earned reputation has us well placed to influence national policy, programs and guidelines – as evidenced in the 2024-2025 Federal budget.
Following advocacy from RCA at our Federal delegation and pre-budget submission, the Federal Government has provided $40 million in funding over three years to re-establish the Regional Airport Fund.
It was also pleasing to see a number our members named among the initial recipients of the Housing Support Program – another RCA recommendation.
RCA recently lodged a submission into the Inquiry into Local Government Sustainability which focused on the current funding environment, including rate pegging in NSW and rate capping in Victoria, and cost shifting to local government.
A significant focus for RCA in 2024-2025 will be our continued involvement in the National Urban Policy Network and ensuring there is a place for regional cities in the National Urban Policy.
We will also continue our advocacy to Government to make the case that the national migration strategy includes migration settings that work for our regional capitals.
RCA will send a delegation to Canberra next month to meet with both sides of Government to discuss our priorities.
Finally, it was wonderful to catch up with so many of our members at the RCA dinner (held in conjunction with Regional Cities New South Wales) in Canberra in ALGA and reflect on our recent successes and future priorities.
Kind regards,
Cr Kylie King,
Chair, Regional Capitals Australia
August Delegation
RCA is planning its next delegation to Canberra on Wednesday 14 August.
This is a valuable opportunity to directly engage with both sides of Government on RCA’s priorities and the issues impacting regional capitals.
The August board meeting will be held in Canberra on Tuesday 13 August.
IMAGE: Pictured from left to right at RCA’s Federal delegation to Canberra earlier this year are Cr Russell Webb Mayor of Tamworth Regional Council, Cr Daniel Scott Mayor of City of Karratha, Cr Kirsty Dellar Deputy Mayor of City of Kalgoorlie Boulder, Cr Kylie King Mayor of Albury City Council, Hon Catherine King MP Minister for Infrastructure, Transport, Regional Development and Local Government, Cr Mathew Dickerson Mayor of Dubbo Regional Council, Cr Phill Cronin Mayor of the City of Busselton, Cr Dallas Tout Mayor of Wagga Wagga City Council
Spotlight on Goulburn Mulwaree Council – Fast 5 with Mayor Peter Walker
Q: How is your community changing and what is driving the growth in the Goulburn Mulwaree region?
A: Growth in the Goulburn Mulwaree region can be attested to the diversification of industries, and growth in manufacturing.
This growth is further supported by our strategic proximity to road and rail ports, as well as major capital cities. Export opportunities are enhanced by the re-expansion of Canberra Airport.
Goulburn is a thriving regional city with urban advantages, but without the stress of traffic jams and supermarket queues. With quality affordable housing, beautiful landscapes and two major cities close by, many people are making the move to our region for a great work/life balance.
Q: What are the biggest priorities for Goulburn Mulwaree Council right now?
A: The Key Council projects are –
- Transport Infrastructure Funding
- Housing – Social, Affordable and Affordability
- Supporting a Sustainable Motorsport Industry
- Marulan Master Planning
- Waterway Improvement
- Goulburn Mulwaree – A No “Waste to Energy” LGA
Q: What are the most significant infrastructure challenges facing Council over the next 5 year and how are you adapting to meet those challenges?
A: Over the next five years, Council anticipates facing significant infrastructure challenges in the Goulburn Mulwaree region primarily stemming from the population growth in the region.
These challenges predominantly revolve around the need for upgrades in essential infrastructure such as water and sewer in both Goulburn and Marulan, schools, roads, and rail networks to accommodate the increasing population demands.
To address these challenges, Council is proactively adapting by implementing strategic planning measures and infrastructure development projects.
This includes conducting thorough assessments to identify areas requiring upgrades, collaborating with relevant stakeholders to secure funding for infrastructure projects, and prioritising investments in key infrastructure sectors.
By taking a proactive and forward-thinking approach, Council aims to effectively meet the infrastructure demands posed by population growth and ensure the sustainable development of the region’s essential services.
Q: Goulburn Mulwaree Council recently announced the CBD and Surrounds Transformation Project. Tell us about the project and how it aligns with Council’s vision for the future.
A: The initiation of the CBD and Surrounds Transformation Project, a visionary endeavour aimed at revitalising the heart of the city while preserving its rich heritage. This project, led by the Council, aligns with the objectives outlined in the Local Strategic Planning Statement (LSPS) and Urban and Fringe Housing Strategy (UFHS).
The proposed changes include amendments to the Goulburn Mulwaree Local Environmental Plan (GM LEP) and Development Control Plan (GM DCP). These changes seek to promote residential development within the Central Business District (CBD) and medium-density residential areas on its perimeter.
Key objectives of the transformation project include enhancing foot traffic in the CBD to bolster local businesses, fostering a vibrant streetscape, and increasing housing diversity, with a focus on smaller units and apartments to improve affordability.
Despite the ambitious scope, the project is mindful of Goulburn’s historic character, particularly within the Goulburn City Heritage Conservation Area. Through a careful balance of development and preservation, the project aims to uphold the city’s identity as Australia’s first inland city.
The proposed amendments will be concentrated in four key areas: the CBD Core (Goulburn Central), the Northern Gateway Precinct, the Southern Gateway Precinct, and the Mixed-Use Edge.
Upon completion of further technical assessments and drafting, a subsequent report will be presented to Council for endorsement to proceed to a Gateway Determination.
Updates on this project will be made available on Council’s website at https://www.goulburn.nsw.gov.au/Development/Plans-Strategies#section-12
Q: How do you see the role of regional capitals in the broader context of Australia’s growth?
A: I think that it gives the Goulburn Mulwaree Local Government Area a seat at the table when dealing with federal issues.
Additionally, Goulburn’s strategic location near major cities such as Sydney and Canberra, as well easy connectivity to other significant centres along the Hume Highway like Albury, Ballarat, Wagga Wagga, and Griffith, enables us to form partnerships and alliances that contribute to the overall progress and betterment of Southeastern Australia.
2024-2025 Budget outcomes
As the trusted national voice for Regional Capitals, Government is listening to RCA and its members.
The impact of our advocacy work and strength of our united voice was evidenced in the 2024-2025 Federal budget, where a number of our key priority areas and initiatives received funding as outlined below:
|
POLICY AREA |
RCA ASK |
OUTCOME |
| Arts and Culture | 1. Enhance the role of arts, culture and creative activities and equitable distribution of funding in regional Australia | * $8.6 million for the Revive Live program to support small to medium music events and festivals
* A review of the financial sustainability of arts training organisations (Arts8), resulting in an additional $117.2 million over four years. |
| Regional Infrastructure | 1. Continued funding of the Growing Regions Program – $1 billion over four years – including a stream exclusive to regions. | * $600 million for the Growing Regions Program and $400 million for the regional specific Regional Precincts and Partnerships Program (announced in the previous year’s budget – rounds ongoing) |
| Local Roads | 1. Increased Roads to Recovery Funding
2. Increased funding and scope for Black Spot program |
* Roads to Recovery increased from $500 million to $1 billion a year
* New $200 million Safer Local Roads and Infrastructure Program * Increased Black Spot funding from $110 million to $150 million per year. |
| Regional Airports | 1. Re-establish the Regional Airport Fund – $500 million over four years | * Re-establishment of the Regional Airport Fund – $40 million over three years. |
| Regional Housing | 1. Continued funding for the Housing Support Program | * Establishment of the $500m Housing Support Program |
| Housing Skills | 1. Increasing skilled migration
2. Scholarships and subsidies for degrees and training in skills shortage areas 3. Greater investment in technical education and apprenticeships |
*$88.8 million to deliver 20,000 additional Fee-Free TAFE and VET places in courses relevant to construction, including increased access to pre–apprenticeship programs.
* $1.8 million to deliver streamlined skills assessments for around 1,900 migrants from comparable countries who wish to work in Australia’s housing construction industry. |
The re-establishment of the Regional Airport Program followed strong representations from RCA and while the initial investment of $40 million is welcome, RCA chair, Albury City Council Mayor, Kylie King, said RCA will work with Government to increase that investment in order to bridge the current service and infrastructure gaps.
2024-2025 Priorities
RCA will continue actively seeking opportunities to influence and contribute to national policy, programs and guidelines on behalf of our members while also continuing our involvement in stakeholder forums including –
- Departmental National Urban Policy Consultative Forum;
- Departmental Regional and Remote Housing Roundtable;
- Ministerial Regional Roundtable; and
- Federal Peak Body Alliance for Regionalisation.
Some of our key priorities for 2024-2025 include –
- National Urban Policy: Ensuring there is a place for regional cities in the national urban policy.
- Regional Housing: Continuing to advocate for a fair share of the housing funding, programs and initiatives included in the Federal budget including –
- A regional stream of the Housing Support Program with guidelines to allow for a flexible approach to project delivery; and
- The establishment of a Housing Innovation Program.
- Regional Airports: Working with Government following the release of the Aviation White Paper to build on the initial commitment of $40 million over three years for the Regional Airport Fund; and
- Immigration: Continuing to provide a strong voice and recommendations on the Federal Government’s Supporting Strong and Sustainable Regions Review of Regional Migration settings discussion paper.
Provide feedback on the Review of Regional Migration settings HERE
Statement on the Federal Budget
Regional Capitals Australia (RCA) has welcomed investment in key manufacturing and skills programs as part of the 2024-25 Federal Budget.
RCA Chair Cr Kylie King said the Budget included important funding programs such as the $1.7 billion Future Made Australia Innovation Fund and 15,000 Fee Free TAFE and VET places as well as 5000 places in pre-apprenticeship programs to increase housing supply.
“Regional Australia has a continuing role as the heart of manufacturing in Australia. Our communities will continue to play their part advancing Australia’s capabilities in this area,” Cr King said.
“Regional communities are, however, suffering from the lack of housing, we know that one of the big bottlenecks to this challenge is the lack of qualified trades, investing in this area is an important measure for our communities,” Cr King said.
The Budget also confirmed already announced programs to address the decline of regional roads, including the top up of Roads to Recovery (now a total of $1 billion investment) and the establishment of the $200 million New Safer Local Roads and Infrastructure Program. A new allocation of $32 million Road Trauma package was included to address road safety awareness.
The Government has also begun the process of addressing challenges in water security in regional areas with an almost $175 million in new investment for regional water projects.
Cr King however noted that while investment into re-establishing the Regional Airports Program was very welcome, the commitment of $40 million over three years was not expected to meet the growing demand on local government to bridge the infrastructure and service gap.
“Investment in these important and hardworking community facilities is fundamental to the success of regions, particularly at a time when regional aviation was still experiencing broad reliability issues,” Cr King said.
“We look forward to working with the Federal Government to identify further opportunities to invest in the regions particularly as the government releases their Aviation White Paper later this year,” Cr King explained.
“We acknowledge that building a Budget is a balancing act particularly when communities and businesses are under a significant level of stress from cost of living issues, this Budget is a reflection of this task,” Cr King concluded.
Key initiatives announced that impact regional capital cities include:
Manufacturing
- $1.7 billion for the Future Made in Australia Innovation Fund: supporting innovation and pre-commercial activities in Future Made in Australia eligible priority sectors.
Communications
- $1.2 billion (2024-25) for NBN Co’songoing fibre upgrade program.
Rail
- $540 million for the Australian Rail Track Corporation’s interstate freight rail network; and
- $100 million for the Kalgoorlie in Western Australia and Tarcoola in South Australia rail line upgrade.
Roads
- $500 million (additional) for Roads to Recovery per year in funding taking this to $1 billion per year (already announced);
- $200 million for the Safer Local Roads and Infrastructure Program per year (already announced); and
- $32 million for a Road Trauma Package to improve road safety awareness.
Airports
- $40.0 million for the Regional Airports Program for infrastructure upgrades over three years from 2024-25.
Health
- $227 million for 29 (additional) Medicare Urgent Care clinics and boost support for clinics in regional and remote Australia;
- $17.4 million (2024-25) for primary health and support services in thin markets in rural and regional areas; and
- $21 million (2024-25) for Primary Health Networks to continue the Targeted Regional Initiative for Suicide Prevention.
Active Transport
- $100 million for a new national Active Transport Fund.
Skills and Employment
- $62.4 million for 15,000 Fee-Free TAFE and VET places over two years from 1 January 2025; and
- $26.4 million for 5,000 places in pre-apprenticeship programs over two years from 1 January 2025.
Water
- $119.6 million for water security projects over 4 years;
- $20.7 million for ten new water infrastructure projects in regional and remote First Nations communities; and
- $34.3 million for 22 research projects and business cases to better understand Australia’s water resources.
Arts and Culture
- $8.6 million (2024-25) to support Australian live music venues and festivals, supporting small-to-medium sized live music venues and festivals across Australia.
Not so Bonza outcome for regional airports
In the wake of the news that Bonza has moved to voluntary administration, Regional Capitals Australia is renewing our calls for the federal government to recognise the vulnerability of regional aviation and heed the warning of ongoing challenges to the viability of regional airports.
The grounding of the Bonza of course means that regional airports who have made costly adjustments to accommodate new services through infrastructure upgrades, increased security measures and staffing could well be left stranded with empty departure gates.
This rapid development should send a clear message to the Australian government that regional airport’s, from Albury to Geraldton, face a multitude of financial risks that can sometimes materialise overnight.
A regional airport is one of the hardest working assets in any community. Despite largely being owned and operated by Local Government, the facilities allow state and federal governments to deliver services that range from healthcare, emergency services and border protection, as well as connecting agriculture, tourism and mining broader opportunities.
It is not well known that almost 60% of regional airports operate at a loss, burdened by overwhelming regulatory and security costs and inadequate support for infrastructure funding.
This unsustainable situation threatens not only the airports themselves but also the local economies they support. Local governments, and by extension regional rate payers, are often required to subsidise these deficits, providing at times an impossible choice for local leaders on how to prioritise funding.
Recognising the urgency of these challenges, RCA has laid out clear recommendations as the Federal Government creates its new aviation policy to ensure these crucial community facilities can continue to serve regional residents and businesses.
The most important of these is to allocate $500 million to allow for regional airport maintenance and upgrades as well as support to ensure security arrangements are not creating extra costs for regional travellers.
The reliable operation of regional airports is not merely a convenience but a necessity for maintaining the socio-economic fabric of regional communities.
Bonza is not the first, nor do we suspect, the last airline that will face challenging economic circumstances.
It is our hope that a solution can be found to allow their operations to soar once again. Regardless of new developments for Bonza, supporting regional airports should be a national priority, one that allows for equality opportunities to be connected – regardless of where you live.
Survey shows housing crisis impacting regional health and industry
In new survey results from Regional Capitals Australia members, 100 percent reported that local health services are affected by the housing shortage, with a further 93 percent of member councils indicating that major local industries are also impacted.
Cr Kylie King, Chair of Regional Capitals Australia (RCA) said the increasing shortage of available and affordable housing was impacting the ability of regional cities to function as essential service centres for the broader regional population.
“Unfortunately, the housing crisis is now becoming a health and employment crisis,” Cr King said.
“The critical shortage of housing in regional Australia is severely impacting local employment, essential services and the delivery of major national projects such as our transition to renewables,” Cr King explained.
In-depth case studies of RCA member councils Albury, Ballarat, Geelong and Port Hedland reveal common challenges of high cost of delivering enabling infrastructure, skills shortages and under-utilisation of existing land/properties.
Regional Capitals Australia acknowledged the commitment from all levels of government to address the ongoing shortage of suitable and affordable housing, however it urged further action on the issue.
Regional Capitals Australia recommends the following to address the housing crisis:
- Release of more crown land for social and affordable housing;
- Planning guidelines for social and affordable housing to include mandatory inclusionary zoning or pre-set ratios;
- Flexibility for infill development in established areas;
- Refurbishment or redevelopment of government owned derelict housing;
- Innovation housing solutions such as 3D printing, modular or prefabricated housing;
- Support to facilitate development of project partnerships with local housing providers; and
- Ongoing support for enabling infrastructure costs.
RCA member councils also noted that skills shortages is one of the major contributing factors, with 87 percent of RCA member councils identifying a shortage of builders and tradespeople as the most significant barrier to new housing.
Furthermore, 73 percent of RCA members reported a shortage of strategic and statutory planners and other essential positions necessary to plan and approve residential housing.
Regional Capitals Australia recommends the following to address skills shortages:
- Ensuring that skilled migration can meet regional needs;
- Scholarships and subsidies for degrees and training and in skills shortage areas – particularly planners;
- Greater investment in technical education and apprenticeships; and
- Investment in vocational education in more locations as travel costs are a major barrier to completion.
“Regional housing supply has not kept pace with demographic change, and we need the policy settings to be more responsive, innovative and dynamic to allow regional councils to deliver the best fit for their community,” Cr King concluded.