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Investment in airports needed for regions to fly

Regional Capitals Australia (RCA) has called on the Federal Government to invest in regional airports, advocating for funding for important programs to continue so regional airports are able to fly.

Regional Capitals Australia Chair and current Mayor of the City of Albury Cr Kylie King recently led a delegation of members to Canberra to advocate to the Minister for Infrastructure, Transport and Regional Development the Hon Catherine King MP for additional support for regional airports, in anticipation of the release of the Government’s Aviation Green Paper.

“Regional airports are extremely hard-working community assets with a big role to play in the life of regional Australia and indeed our nation’s broader economy and security,” Cr King explained.

“Regional airports are too important to fail – beyond servicing passenger services they provide critical functions essential for our nation’s health and safety including border protection, medivac, defence and disaster response,” Cr King said.

An estimated 200 regional airports are owned and operated by local councils but rising operating, regulation and security costs means that many airports are operating at a loss and a burden on regional ratepayers.

The Australian Airports Association estimates that prior to the pandemic, regional Australia accounted for 45% of output from Australia’s tourism sector, with regional airports acting as critical connecting points for international and domestic tourists. 

Regional airports are also key gateways for the movement of Australia’s estimated 100,000 FIFO workers, air freight, business travel and the growth of new jobs and aviation industries.

Regional airports play an indispensable role in the security, wellbeing and equity of our nation, with the Australian Airports Association estimating that regional airports facilitate over 6,000 emergency medical evacuations per year and house over 500 firefighting aircraft across Australia.

“Unfortunately, the reality is most regional airports are under significant financial strain with an estimated 60 per cent of regional airports operating at a loss due to ageing infrastructure, security cost pressures, high staffing costs, and an increasing regulatory burden,” Cr King explained.

The Regional Capitals Australia delegation made the case to Federal leaders that regional airports struggle with disproportionately high regulatory and security costs imposed by Federal authorities, in comparison to major metro airports.

“Regional Capitals Australia are calling on the Federal Government to provide recurrent funding for the regulatory costs in running airports which account for 12 per cent of total expenditure as well as funding for important upgrade of regional airports, and to develop a sustainable long term plan for the regional aviation network,” Cr King concluded.

Regional communities key in race to renewables

Regional Capitals Australia (RCA) has called on the Federal Government to introduce new safeguards to ensure regional communities are appropriately consulted and protected in the race to meet Australia’s renewable energy targets by 2030.

RCA Chair and Mayor of the City of Albury Cr Kylie King said Australia’s rapid escalation into renewable energy meant that countless regional communities were potentially going to be affected by the impacts of wind and solar installations or new transmission lines.

“Regional communities are facing unfamiliar territory as they try and negotiate life on the frontline of Australia’s renewable energy transition,” Cr King said.

Minister for Climate Change and Energy Chris Bowen estimates that to achieve Australia’s emissions reduction targets Australia will need to install about forty 7-megawatt wind turbines every month until 2030, and more than 22,000 500-watt solar panels every day or 60 million by 2030.

In New South Wales alone, the Electricity Infrastructure Roadmap estimates that there will be a $32 billion investment in regional energy infrastructure by 2030 by a multitude of private companies, creating the potential for a piecemeal approach to community consultation, particularly where multiple investments are taking place in the one region.

“A nationally consistent framework that delivers baseline community investment and best-practice consultation should assist in delivery of a social licence,” Cr King said.

“Adherence to this framework should be a regulatory requirement for all project proponents seeking to operate in regional communities,” Cr King explained.

Front-line impacts of renewable energy installations can include loss of vegetation and wildlife, loss of public and private land, pollution (noise/air/ground), visual impacts and loss of local amenity and long construction phase and itinerant workforce leading to impacts on local roads, housing and services.

“RCA believes that regional stakeholders deserve a seat at the decision-making table to ensure that local communities have a real voice on the massive infrastructure projects occurring in their own backyard,” Cr King concluded.

Regional Capitals welcome budget balancing act

Regional Capitals Australia (RCA) has welcomed the release of the Albanese Government’s 2023-24 Federal Budget, which includes a new investment framework for the regions.

RCA Chair Cr Kylie King said the budget included important funding programs for the health and welfare of our communities as well as the transition to a clean energy economy.

“This budget is a welcome step to help those in our community who are struggling with the cost of living and making ends meet,” Cr King said.

Key initiatives announced that impact regional capital cities include:

Regional Programs
New Regional Investment Framework to establish a regional development forum for Australian Government agencies to better inform government decisions across 4 key areas: investing in services, people, places and industry; and
$600 million for the Growing Regions Program (Round 1) (announced in the 2022-23 Budget – funding available in July 2023).

Energy
$1.4 billion as part of the Powering the Regions Fund including:
$400 million over 4 years from 2023-24 to establish the Industrial Transformation Stream for reduction of emissions at industrial facilities or clean energy development in regional Australia;
$89 million to support the energy transition investments in regional Australia; and
$12 million over 3 years from 2023-24 for a review of environmental management and consultation requirements for offshore energy developments.

Roads
$250 million for the Local Roads and Community Infrastructure Fund (totalling $500m for Phase 4 announced on 3 May 2023 – funding available from July 2023);
$85 million per annum for the Bridges Renewal Program;
$500 million for the Roads to Recovery Program;
$110 million per year to maintain the Black Spot Program to improve road safety; and
$976.7 million to continue delivery of the Road Safety Program across 2023-24 and 2024-25.

Skills and Employment
$26.3 million over 5 years from 2022-23 to boost employment services and trial a new regional employment service.

Arts
$11.8 million over 4 years from 2023-24 to pilot long-term loans of National Gallery of Australia works to regional and suburban cultural institutions (announced as part of the Revive strategy); and
$8.5 million over 4 years from 2023–24 (and $2.2 million per year ongoing) to increase funding for the Regional Arts Fund (announced as part of the Revive strategy).

Regional Health (specific to the regions)
$358 million over 5 years to deliver Medicare Urgent Care Clinics, including an additional 8 clinics for regional communities and outer suburbs to access a GP; and
$79.5 million over 4 years to double the Regional Pharmacy Maintenance Allowance to assist community pharmacies in regional Australia.

Regional Housing
Expanding the Regional First Home Buyer Guarantee to any two eligible borrowers such as friends and siblings and making it available to non-first home buyers if they haven’t owned a property in Australia in the last 10 years.

Migration (not specific to the regions)
Allocating around 70 per cent of places in the 2023-24 permanent Migration Program to skilled migrants;
Providing an extra 2 years of post-study work rights to Temporary Graduate visa holders with select degrees to improve the pipeline of skilled labour in key sectors; and
Providing additional training places for Pacific Australia Labour Mobility scheme workers in priority sectors.

Natural Disasters
$200 million per year to support disaster risk reduction projects in regional Australia, under the Disaster Ready Fund;
$236 million over 10 years to improve flood forecasting and warnings; and
Creating a new National Messaging Service to provide real-time information to mobile phones during an emergency.

Education
$146 million over 4 years to increase Commonwealth Grant Scheme funding for regional university campuses by 3.5 per cent a year;
$48.8 million over 4 years to establish new partnerships between regional universities and other higher education providers and industry for research; and
$17.1 million over 4 years to provide demand-driven Commonwealth Supported Places to eligible higher education providers for First Nations students from a regional area.

“We look forward to working with the Federal Government to identify further opportunities to invest in the regions particularly in the areas of aviation and housing” Cr King explained.

“We acknowledge that building a budget is a balancing act and congratulate the Federal Government on funding regional Australia when our communities and businesses are under a significant level of stress from cost of living issues” Cr King concluded.



 
Read the Federal Budget 2023-24

National Alliance for Regionalisation

Regional Capitals Australia (RCA) joined the new National Alliance for Regionalisation for its history-making launch in Canberra, as a proud partner in this new alliance to help shape the future of regional Australia. 

National Alliance members include over 30 leading peak bodies from across Australia spanning business, health, education and regional development.

Coordinated by the Regional Australia Institute the alliance will focus on activating the policy goals outlined in the Regionalisation Ambition 2032 – a Framework to Rebalance the Nation

This framework aims to support more Australians living prosperously in the regions and is underpinned by 20 targets across five policy pillars.

The Working Group has already met to begin activating the five policy pillars:

  • Sustainability and Resilience
  • Population
  • Jobs and Skills
  • Liveability
  • Productivity and Innovation

RCA sees the National Regionalisation Alliance as a collaborative call to action to the Federal Government on regional issues, as well as a tool to measure the broader success of our own organisations on advancing the sustainable development of our shared communities.

RCA has strongly supported the Regionalisation Ambition 2023 in the past by making a pledge that aligns to the Population Pillar. 

RCA pledged to plan for and advocate for a greater share of Australia’s population through the development of a national population plan that includes:

  • An accelerated immigration policy with distinct regional streams of visas;
  • Support for continuing education infrastructure and services that builds the skills and contributions of our community; and
  • Connectivity and liveability infrastructure that allows our member cities to be nationally and internationally competitive as the best places to live and work.

Renewable Energy

The installation of renewable energy infrastructure is being accelerated across the country to meet the increased targets set by the Australian and State Governments.

While the benefits of renewable energy and emissions reduction are well-documented, the impacts of these installations on local communities must also be appropriately managed and planned for.

Regional Capitals Australia (RCA) has recently developed a policy paper to address the legitimate concerns of regional communities and highlighted the importance of genuine consultation in the planning phase of energy projects.

In particular, RCA is seeking that:

  1. Best practice stakeholder engagement standards: should be established by the Australian Government to ensure that project proponents are aware of their responsibilities for consultation and engagement; and
  • Strategic stakeholders must have a seat at the table: in key consultation forums to ensure there is a deep understanding of local and regional issues.

The outcomes of effective consultation can play an important role in the success of a project and RCA looks forward to working with the government to ensure these principles are adopted.

Spotlight on: Fraser Coast – Fast 5 with Fraser Coast Mayor Cr George Seymour

  1. How is your community changing/growing, and what are the biggest priorities for Fraser Coast?

The Fraser Coast has a rapidly growing population led by both lifestyle and employment opportunities in the region.  This will require greater investment in education, health and community infrastructure over the coming years.  We also have a significant level of disadvantage with lower attainment rates in education so there is a major priority to lift those standards in coming years.

2. What are the most significant infrastructure challenges facing the council over the next 5 yrs and how are you adapting to meet those challenges? 

New sewerage treatment plants and new road infrastructure to cope with population growth is an immediate priority.  In the past, Council has discounted developer headworks charges to encourage building and investment.  These incentives, which were essentially funded by the community, are no longer required due to the popularity of the area and new developments will need to be addressed differently in the future.

Following community feedback, the Fraser Coast Regional Council will move ahead with plans to upgrade the Pulgul Sewage Treatment Plant and expand its recycled water reuse scheme to ensure it can meet the needs of a growing city.

It is anticipated that the Hervey Bay population will increase significantly and the Pulgul plant is already near capacity. The decision to expand the Pulgul treatment works and reuse scheme followed months of community engagement and feedback.

The feedback also helped shape the Recycled Water Strategy which was adopted this year (2023). Initial estimates put the value of the total project at $66 million, including $9 million to expand the reuse scheme.

3. Fraser Coast is one of the fastest growing regions in Qld, and is also famously home to the delicate Great Sandy Biosphere – how do you balance population growth and the environment? 

The health of the Mary River is a major priority for us, particularly the preservation of the Mary River Turtle, Mary River Lungfish and the Mary River Cod all of which are threatened with extinction.  Since the cancellation of the Traveston Dam in 2009 by Federal Environment Minister Peter Garrett, it has been acknowledged that more needs to be done to protect the river’s ecosystem and implementation of a Threatened Species Action Plan remains a priority.  The flooding last year also wiped out a significant proportion of seagrass beds which has had a big impact on the sea turtle and dugong population. 

From a town planning perspective, we are encouraging new development to take place on land that has previously been cleared for farming, and not in areas of native vegetation.  There is a conversation to be had with the community about the merits of higher density living and what is a better outcome for the environment.  Previously, people have preferred to live on a large outer suburban block however, there is a lot of value in higher density living where less land clearing is required and often neighbourhoods are more connected through bike paths and the like.

The Fraser Coast recycled water scheme will expand to cater for population growth, while infrastructure improvements will cut almost $12 million from the capital expenditure budget over the next decade.

4. Fraser Coast Council was the subject of national news in 2022 after a temporary leveee erected by Council saved Maryborough from a second devastating flood in a matter of weeks.  How is your region adapting to climate change? 

Since the floods of 2022, where we experienced two major floods and two minor floods, we have been working closely with the State Government to undertake buybacks of flood-affected properties.  Properties that have been repeatedly flooded have been bought back, retrofitted or raised under the Resilient Homes Fund.

We are also developing a plan to deal with coastal erosion, including managing public infrastructure that might be exposed to future erosion.  We have also been adapting our planning scheme to take into consideration the changes we expect to see into the next century.

As part of Council’s continual improvement of our flood response, especially in light of expected weather changes due to global warming, it has invested in a number of studies to improve our flood mapping.  Funding has been received from the Queensland Reconstruction Authority and the Disaster Recovery Funding Agreement working with the Federal and State Governments to invest in planning and flood related infrastructure to assist with adapting to climate change.

5. How do you see the role of regional capitals in the broader context of Australia’s growth?

There has been a huge societal shift where people want to move to regional capitals for the lifestyle benefits on offer.  There are tremendous professional as well as personal opportunities for those living in our city. 

In the Fraser Coast region, people can have really fulfilling and challenging careers but finish work at 5pm and be on the beach by 5.10pm.

Councils are on the front line of Australia’s big shift and this internal migration trend requires a huge investment in health, education and community facilities over the next decade.

Aviation White Paper

The Role of Regional Airports

The contribution of regional airports to local communities is well documented, with regional cities heavily reliant on airports for emergency services, tourism, trade and economic growth. 

Regional airports are a key connector to the social and economic life of regional Australia, bridging the sometimes large distances between regional capital cities and in some instances international markets.

It is estimated that more than 200 regional airports are owned and operated by local government, with more than 40 per cent of Australia’s domestic aviation passengers travelling through regional airports. 

Regional airports play a vital role in the movement of FIFO workers, generate significant economic benefits via tourism and trade, facilitate business travel as well as playing a vital role in the protection of Australia’s physical assets by enabling aerial firefighting and supporting law enforcement bodies.

However, there are significant and increasing costs associated with maintaining airport services at a time of unprecedented financial challenges for local government, with approximately 60 per cent of regional airports currently operating at a loss.

Aviation White Paper

Regional Capitals Australia (RCA) has welcomed the Federal Government’s Terms of Reference and timeframes for an Aviation White Paper that will set the principles and direction for Australian aviation over five years commencing from 2025.

In response, RCA has submitted its Regional Airports Policy Paper for consideration by the Government.

However in the intervening years, RCA is advocating that recurrent funding for regional airports be made immediately available, as an essential interim measure until the Aviation White Paper is finalised in 2025.

In the 2019-20 Budget the Australian Government committed $100 million over four years until 2022-23 for the Regional Airports Program. The total spend to date is $98.7 million with no funding for future years allocated to date for this important program.

RCA will continue to advocate in the lead-up to the May budget that funding for the Regional Airports Program is a national priority. RCA members with an airport are strongly encouraged to complete the Airport Case Studies survey to help build a strong case about the vital role of regional airports.

REVIVE – What does Australia’s new Cultural Policy mean for the regions?

Revive – Australia’s new cultural policy

The Federal Government’s new arts and cultural policy “Revive – A Place for Every Story, A Story for Every Place” establishes a five-year time frame to achieve significant change across five policy pillars:

  • First Nations First;
  • A Place for Every Story;
  • Centrality of the Artist;
  • Strong Cultural Infrastructure; and
  • Engaging the Audience.

Impacts on regional Australia

The Federal Government’s new ‘Revive’ policy provides $8.5 million in increased support for regional arts and culture through a boost to the Regional Arts Fund and a continuation of the Festivals Australia Program. 

Regional Capitals Australia welcomes this investment particularly given our long-standing advocacy for the arts sector to be better supported by the Australian Government. This policy reflects the need to invest in regional stories and specific regional funding to be increased.

‘Revive’ also provides a commitment to share the national collection by establishing a program of long-term loans of works from the National Gallery of Australia’s collection to regional cultural institutions. 

Other notable commitments in Revive that are relevant to regional Australia include:

  • Deliver improvements to the National Broadband Network and regional connectivity to improve digital inclusion, and social and economic opportunities for all Australians.
  • Continue collaboration with the arts and cultural sector to deliver on the national visitor economy strategy, THRIVE 2030, by supporting artistic and cultural events and incorporating cultural assets into destination marketing and campaigns.
  • Increase support for community broadcasting to deliver local news, tell local stories, and provide a platform for diverse voices and Australian music.

What is missing?

In regional Australia, arts and culture help to shape the character of our communities and are an important expression of regional life. Importantly, as more people move to the regions, the liveability value of a vibrant arts sector plays a major role in attracting and retaining people who move to regional capitals.

Funding for arts and culture in Australia needs to better align with the post-Covid population distribution and fairly recognise the almost eight million residents of regional Australia.

Regional Capitals Australia (RCA) endorses the recommendation by the 2021 Australian Infrastructure Plan to capture, measure and assess the quadruple bottom-line benefits of social infrastructure including arts and culture and use this framework to collaboratively plan, develop and invest in arts and cultural infrastructure.

While the ‘Revive’ policy commits to investing in local arts and cultural infrastructure across Australia, there was no dollar figure attached to this commitment and the Minister indicated that additional funding and details could potentially be forthcoming in the May Federal Budget.

Currently, a disproportionate burden of regional arts and cultural infrastructure falls on the shoulders of local government, in comparison to their metro counterparts.   However while these facilities are funded by the ratepayers of regional capitals they are utilised heavily by a significantly greater population of outlying communities in the wider region.

For example, analysis conducted by the City of Bunbury on visitation to the Bunbury Regional Art Gallery estimated that only approximately 26 per cent of visitors to the gallery were residents of the City of Bunbury, the remaining visitors were from the wider region and even further afield. The Bunbury Regional Art Gallery is solely owned, funded and operated by the ratepayers of the City of Bunbury.

Unfortunately, the funding capacity of regional local government is limited by their smaller rate base, rate caps and broader service provision to their residents in challenging regional environments.

Our call to action

RCA continues to advocate that investment in arts and cultural infrastructure for regional Australia should be a major priority for the arts portfolio in the forthcoming May Budget, including a more equitable distribution of arts funding that better reflects the population growth of regional Australia.

Regional Capitals support landmark new alliance

Pictured: Chair of RCA Cr Kylie King around the table in Canberra with National Alliance for Regionalisation Chair Mr Mike Mrdak AO and Regional Australia Institute CEO Ms Liz Ritchie

Regional Capitals Australia (RCA) has today joined 30 national peak bodies to form the National Alliance for Regionalisation with the aim of working together for a better future for regional Australia.

Established by the Regional Australia Institute (RAI), the new Alliance is the first of its kind in Australia spanning business, health, education, infrastructure and environment.

“Today is an important day, we know regional Australia is the economic engine room of this country, but to make the most of this competitive advantage we have real challenges we need to address so our communities thrive,” Cr Kylie King Chair of Regional Capitals Australia said.

“RCA is thrilled to represent our members in the National Alliance for Regionalisation to ensure we are working collectively to put regions in the driving seat and create growing, liveable and productive regional capitals,” Cr Kylie King Chair of Regional Capitals Australia said.

The National Alliance for Regionalisation will have the task of advancing targets set out in the RAI’s Regionalisation Ambition 2032 – a 10 year framework to rebalance the nation. The Alliance will also advocate for the policy priorities needed to create a fairer, more prosperous, more balanced regional Australia.

RCA made a pledge to seal a commitment to 2032 Ambition.  RCA pledged to support our members to plan for accommodating a greater share of Australia’s population. RCA also pledged to advocate for the development of a national population plan that incorporates:

  1. An accelerated immigration policy with distinct regional streams of visas;
  2. Investment in education infrastructure and programs that build the skills and contributions of our communities; and
  3. Connectivity and liveability infrastructure that allows our member cities to be nationally and internationally competitive as the best places to live and work.

“RCA would like to congratulate the RAI leading the formation of this important forum, I’m optimistic that through the power of collective action we can deliver critical change to address key areas such as population growth, regional housing, community infrastructure and workforce skills,” Cr King explained.

Regional Capitals Australia (RCA) can offer a unique insight into existing regional policy challenges, as the only voice of Australia’s 51 regional capitals representing the needs of an estimated 9 million people.

Regional funding needs a rethink

Ahead of the 2023 Federal Budget Regional Capitals Australia is making a call for funding shortfalls in infrastructure grants to be addressed by the federal government.
 
Cr Kylie King, Chair of Regional Capitals Australia said the cost of infrastructure delivery was becoming a shave or shelve concept as cost blowouts crunch local government budgets.
 
“Due to the extraordinary rise in the cost of infrastructure delivery, our member councils who have received federal grants for important social and economic infrastructure, are having to make the tough calls on the future of projects,” Cr King said.
 
“If the Federal Government does not play its part in assisting with these cost blowouts, our members have only two options – shelve the project and return the grant money or shave funding from other important local initiatives to meet the shortfall” she said.
 
“We are concerned that due to the size of the budget shortfall many projects will fall in the shelve category and regional Australians will miss out on important infrastructure required to meet the demand of our growing cities” Cr King explained.  
 
In one case study cited by Broken Hill City Council, the proposed CBD Revitalisation Project was designed to include a new library and archives facility in addition to upgraded public infrastructure in the heart of the city, however with the project facing a significant shortfall due to cost escalations, the Council is now forced to try and seek alternative funding options to ensure the project can go ahead.
 
In another example at the City of Wagga Wagga, the proposed 5 kilometre Dunns Road upgrade has been affected by increases in materials and metal prices resulting in a budget shortfall of over $2 million. 
 
According to Infrastructure Australia, public infrastructure projects including small capital projects, face a shortage of 214,000 skilled workers and in 2023 labour demand is projected to peak at 442,000 or more than double the projected available supply.
 
The RCA Pre Budget Submission 2023-24 also seeks to ease the burden on regional councils who often struggle to complete onerous business case requirements.
 
“Regional Australia is punching above its economic weight at the moment, but when supply chains and labour markets are tight we need to find a more efficient way so grant dollars can go further  in our local communities” Cr King explained.

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