Australian Government, 2012‑13 Budget
Budget

Foreword

Our Government's commitment to regional Australia is strong and longstanding.

Last year, we made one of the biggest investments ever in regional health, education, infrastructure and skills development.

With our economy in transition, we set out to position regions to embrace the huge economic transformation occurring globally, to seize the opportunities in it and not be threatened by it.

Much has been done to lay the foundations for success, but there is much more to be done.

We want our regions to be their best — and positioning them to seize future opportunities for growth and economic diversification remains one of our highest priorities.

Regionalism's time has come

Our Government understands the fundamental importance of regionalism to contribute more effectively to the strength of the nation.

This is supported by the OECD which last year stated that 'strong regions are the building blocks for strong countries' and that 'the performance of a single region can have a larger overall impact than the performance of a country'.

Regionalism's time has come; stronger regions make for a strong nation and our Government is determined to ensure that all of the patches in our patchwork economy contribute to and share the benefits of growth.

We have the opportunity to strengthen regions and the nation, if we think smarter and build a new basis for long-term competitiveness.

Power of localism

Localism can be the greatest generator of our nation's collective strength, diversity and prosperity.

But it requires leadership and vision driving the ideas.

It also requires genuine partnerships across all three levels of government, the private sector and the community.

To that end, we are actively engaging the regions to identify new opportunities to diversify and strengthen their economic base.

In last year's Federal Budget, we provided $4.3 billion for regional health, hospitals, education, infrastructure and skills development and put in place the programs and mechanisms to enable local communities to identify local solutions to local issues.

We have strengthened the network of 55 RDA Committees, and the role of local governments in working with them.

We have established the Ministerial Advisory Council of Regional Australia (MACRA) — to work with RDAs on location-based solutions to regional priorities and on how best to grow regional economies.

We have also established the new Regional Australia Institute — because sound policy research can help turn challenges into opportunities.

And in terms of driving new partnerships, we are also working with State and local governments to develop new cooperative agreements and frameworks to advance economic diversity on a place by place basis — applying good on-the-ground knowledge to drive practical and effective local solutions.

In last year's Budget, we announced $1.0 billion through our Regional Development Australia Fund (RDAF) to support investment-ready projects that will distribute the proceeds of the resource boom to the regions of Australia.

The $150.0 million Round One of RDAF delivered funding to 35 projects across the country and the outcomes of the $200.0 million Round Two will be announced shortly — and the passage of the Minerals Resource Rent Tax (MRRT) legislation paves the way for three more rounds before mid-2013.

Under this new ground-up structure, local leadership have refined and strengthened their vision and priorities.

National Broadband Network

Our Government has worked hard to help position regional communities to seize the opportunities ahead.

And one of the greatest enablers of the regions — for economic diversification, growth and service delivery — is the National Broadband Network.

More than 3.5 million homes, businesses, schools and hospitals will have construction of the National Broadband Network either commenced or completed within the next three years as part of the first three-year fibre rollout plan. This includes 238 regional centres.

The NBN will change the way all Australians live and work.

It will end the tyranny of distance between rural and regional Australia and will transform the way regional businesses operate, how health services are delivered and how regional students access educational and career opportunities.

When I go to the regions, all people want to know is when and how they can access it.

The NBN will ensure that every community gets fair and equal access to affordable high-speed broadband, including prices that are the same in the regions as they are in the city.

There is enormous potential in sectors such as e-commerce, e-health and e-education.

But the NBN is only the highway — the challenge for the regions is to join the dots and develop the applications that will become the vehicles to go on the highway.

A Cleaner Energy Future

Wherever I go in the regions, two common themes have emerged: a willingness to diversify their economic base and embrace a cleaner energy future.

This is reflected in the RDA's regional plans.

Communities, local government and businesses have determined the 'what'. Our programs help them join the dots and understand the 'how'.

That is what goes to the heart of our Clean Energy Future Plan.

A carbon market is one of the newest markets of all — a market that will reward good behaviour and reward creativity and innovation, playing to the strengths of our regions and create new job opportunities.

We want regions to realise their vision of a more sustainable future, but we don't expect them to do it alone.

That is why we are providing support for new manufacturing jobs, new service jobs and green jobs from green energy solutions.

There is also a Jobs and Skills package to develop green job skills to build our capability to develop better our competitiveness, a competitiveness that a carbon market will value and will reward.

The farm sector and local government can also be big winners.

Carbon farming will open up new income streams for farmers and other landholders through the sale of carbon credits on domestic and international markets.

And local councils or landfill operators can invest in equipment to capture methane and destroy it, or even more cleverly, turn it into electricity.

Locking in regional growth

Our Government is determined to embed regionalism into the way Australia is governed.

We are looking beyond the electoral cycle to enable regions to unlock their potential — and lock in jobs and growth for the future.

We believe in the regions and their inherent capability.

We believe in the power of localism, the knowledge and skills of local communities to decide their priorities and fashion their responses to economic, social and environmental challenges.

The challenge for regions is to identify local projects that stack up and to work with all levels of government, the private sector and community organisations to make it happen.

That is what we are committed to doing.

We look forward to strengthening our partnerships across Australia to drive even stronger regional growth, and a more sustainable nation.

Simon Crean

Minister for Regional Australia,
Regional Development and
Local Government

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