Senator O'Brien asked the Minister representing the Minister for Transport and Regional Services, upon notice, on 5 August 1999:

(1) Did a trial regional forum, as part of the Regional Forums Australia Program (RFAP), take place in the Spencer Gulf region of South Australia on 22 and 23 July 1999: (a) if so: (i) where did the forum take place, (ii) who attended the forum, and (iii) what organisation did each attendee represent; and (b) if not: (i) when is the trial forum now scheduled to take place, and (ii) why was the forum postponed.

(2) (a) What was the agenda for the trial forum; and (b) was a report produced of the forum's proceedings, as was required by the contract with the forum facilitator, if so, can a copy of the report from the trial forum be provided.

(3) If there has not been a report or record of the forum produced: (a) why not; and (b) when will the report be available.

(4) (a) What was the cost of the trial forum; and (b) can a detailed breakdown of that cost be provided.

Senator Ian Macdonald (Regional Services, Territories and Local Government) —The Minister for Transport and Regional Services has provided the following answer to the honourable senator's question:

(1) Yes (a) (i) Whyalla, (ii) and (iii) a list of the attendees and the organisations they represented is provided attached.

(2) (a) and (b) Copies of the agenda and the record of forum proceedings are available from the Table Office.

(3) Not applicable.

(4) (a) and (b) the cost of the forum and a breakdown of the cost is attached.

ATTACHMENT A

ATTACHMENT D

COST OF SPENCER GULF AREA TRIAL REGIONAL FORUM AND BREAKDOWN OF COSTS

* The Facilitator, Brian Elton and Associates, was engaged to:

undertake lead up work for six weeks prior to the forum (including preparing the Spencer Gulf Area Regional Future Brief); organise and facilitate the forum; and work with the region on identifying and progressing priorities identified for up to four months after the forum. It is estimated that the work done by the facilitator on the forum itself (preparation, facilitation etc.) amounted to approximately $15,000 of the total consultancy fee.

Spencer Gulf Regional Forum

Whyalla, 22nd-23rd July 1999

Summary Report of Outcomes

Day 1- July 22nd

Welcome

Terry Price-Regional Program Manager, Australian Broadcasting Corporation

Henry Croft+ Administrator, Buttlingarra Aboriginal Corporation

John Smith-Mayor Whyalla City Council

Federal Minister's Address

(Provided as Appendix 1).

State Minister's Response

The Honourable Rob Kerin

Deputy Premier, Minister for Primary Industries, Natural Resources & Regional Development

Mr Kerin welcomed Senator Macdonald, Lyn Breuer-Member of Giles, Barry Wakelin-Member for Grey, Mayor John Smith and forum participants. His response included the following points:

. He acknowledged the Federal commitment to regional development over the last two budgets.

. The forum process represents an opportunity to deliver a message to Canberra on how funding could be best used in the region.

. A lot of thought is required to achieve the outcomes that add value to the region communities. It is acknowledged that the government has not always made the best decisions on regional development in the past.

. Care should be taken to ensure that the proposed Rural Transaction Centres don't impact on local businesses.

. The Federal Governments Regional Economic Development Organisation's (REDO's) initiative lacked synergy in a region which is extremely large, diverse and includes coastal cities and remote areas. There should be care taken not to revisit the confusion that was created by having two layers of regional development bodies in the same area. There is a good system of state and local Regional Development Boards and it should be recognised that one size doesn't fit all.

. He commented on the difficulty for the Federal Government in providing flexible programs and acknowledged contributions made in a number of areas including: rail reform, Agriculture Advancing Australia and telecommunications infrastructure funds.

. The State Government has reviewed Regional Development in South Australia with the preparation of the Regional Development Task Force Report. This has brought about a changed definition of Regional Development that considers regions in economic, social and environmental terms.

. The State Government has a number of ways to assist regions and has established the Office of Regional Development.

. Examples of current issues in the Spencer Gulf area include:

. The Eyre Peninsula region has strong growth in aquaculture. Towns such as Cowell have received a strong employment boost with the introduction of aquaculture activities and one micro-economic indicator is the fact that training is now required to play for the B grade football team.

. Land access for the Aboriginal population is a key issue for the region.

. The Asia crisis has impacted on the mineral sectors of the Upper Spencer Gulf, however some further development has occurred at Roxby and Beverley and the potential exists for magnesium mining at Pt Augusta.

. In closing he made two requests:

. Firstly that all three levels of government work together and focus on outcomes

. Secondly that all leaders be positive about what happens in regional areas through improved marketing of the region. Decision-makers want to hear positive messages, although it is acknowledged that government requires a "belt" from time to time and some regions need more assistance than others.

SESSION 1

Presentation and Discussion of Spencer Gulf Area and its Constituent Regions Regional Future Brief

Session objective: To present and discuss the current context of the Spencer Gulf Area and its constituent regions and to identify area specific economic, social and environmental priorities.

Spencer Gulf Area

Barry Wakelin, Federal Member for Grey

Barry Wakelin, Federal member for Grey, provided a description of key issues in the region from a personal perspective. His presentation included the following:

. The Federal seat of Grey comprises 92% of South Australia. He has been the elected member since 1993 and comes from Kimba on the Eyre Peninsula.

. The Government is committed to the region and now has stronger regional representation than in 1996 including the recent appointment of John Anderson as Deputy Prime Minister. Barry Wakelin is a member the steering committee for a regional Summit to be conducted in October this year.

. Great diversity has brought great strength in the region and self-reliance is a trademark.

. Some government programs, which have not been high cost, have demonstrated success including: The Job Network (50% improvement over 12 months compared to the CES) and Work for the Dole schemes.

. Development issues in the electorate have included: Western Mining, Beverley, Aquaculture and other existing industries. (70% of new investment comes from existing business)

. Long term commitment to the region by Government is important. The Government anticipates that there will be significant improvement in mobile phone coverage over the next two years.

. The small population base of the region is difficult to provide programs for and the region. Government policy over a period has resulted in a number of inequities for the region including: health, education and roads.

. There needs to be an improvement in the relationships between Federal, State and regional bureaucracies.

Upper Spencer Gulf

Phil Tyler-Chief Executive Officer, Whyalla Economic Development Board

Mark Malcolm-Executive Manager, Port Pirie Regional Development Board

Eyre Peninsula

Ian Nightingale-Chief Executive Officer Eyre Regional Development Board

Vance Thomas-Executive Officer Eyre Peninsula Local Government Association

Yorke/Mid-North/Flinders

Don Pfitzner-Chairman, Mid North Regional Development Board

Far North

Bill Macintosh-Chairman, Outback Areas Community Development Trust

SESSION 2

Presentation by Commonwealth

Sema Varova: First Assistant Secretary, Regional Services, Development and Local Government Division, Department of Transport and Regional Services

Session objective: To present a Commonwealth perspective on the range of approaches and initiatives required to improve the Commonwealth's responsiveness to regional needs.

Ms Varova provided a brief outline of the broad range of Commonwealth activity in the Spencer Gulf area and its constituent regions. She described the work to date of the Commonwealth Interdepartmental working group on the Regional Forums Australia Programme and how this mechanism is designed to assist Federal agencies to take a whole of government approach rather than looking at

issues from their own portfolio perspective and dealing with a region in isolation from other portfolios. She also described the task of the Transport and Regional Services portfolio in being responsible for coordinating cross-portfolio issues in relation to regional Australia.

Ms Varova and other Federal agency representatives also took questions from the floor on the Federal Government's approach to regional Australia and particularly the Spencer Gulf Area.

Facilitated Discussion of Commonwealth Position Paper

Issues Raised:

. There is a need for regional development programs that provide initiatives, which allow regions to become competitive. A focus on services doesn't allow this. While services such as Austrade and Invest Australia are excellent, they should be considered as the next step after the establishment of a regional development program.

. The Federal Government's Green Paper on higher education discusses the potential role of local universities in the regional economy. The Lincoln Science Centre and Rural Health unit at Whyalla indicate that a model exists for building up regional university campuses. A critical issue is human resources and there is a case for providing funding to create higher level academic positions in areas such as agribusiness that would subsequently attract research students and allow building up rather than down sizing.

. The inequity between the money collected from fuel taxes and the level of expenditure on roads.

SESSION 3

The Key Strategies and the Agenda for Change

An interactive session with a panel drawn from Commonwealth, State, Local Government and regional leaders:

Session objective: To bring together all spheres of government and regional leaders to begin to identify and agree regional priorities for post-Forum action.

Panel members:

Issues Raised:

. A key policy issue for State, Commonwealth and Local Governments is how to turn a limited amount of money to the strategic advantage of many varying regions. It is critical to develop a communication strategy so people in the regions can understand what can be offered by various government agencies.

. There is a need for a whole of government approach.

. State employment programs ie Kickstart have provided an excellent example of empowering local communities to determine the priority and direction of funding.

. A problem for Regional Development Boards is tapping into funding programs, which are very competitive and require time-consuming submissions. The marketing and communication of these programs also needs improving.

. Dollar for dollar matching funding programs of the Commonwealth, disenfranchise poorer areas who most need assistance.

. State employment programs eg Kickstart have greater flexibility and give more responsibility to the regions than Commonwealth programs. The region would like to see this "mature" type of relationship develop with the Commonwealth.

. The SA Regional Development Taskforce report produced a number of excellent recommendations. Ways of implementing these should be investigated.

. Projects in Aboriginal lands (eg Gawler Craton) offer employment benefits to local communities and tribal people do not want to hold up development. There is however a need for improved communication in relation to sacred site issues as there have been instances where developers have not acknowledged these issues (Lake Gairdner). Aboriginal people are happy to work cooperatively with Councils to identify areas, which do not have sacred site status. (Wudinna)

. The Area Consultative Committee (ACC) should have a broad cross section from the community including representatives from the business sector. It should work with all levels of government and the regional economic development boards.

. There are inequities with Commonwealth funding for local roads and Financial Assist ance Grants, between the eastern states and this region. The per capita formulas used for these funds disadvantage the Spencer Gulf area.

. Equity of outcomes is a key issue, people shouldn't be disadvantaged by lesser services because of their decision to live in a regional area.

. Equity of access to funding should be given to the regions along with the responsibility for dispersing it. Transparency in funding provision is required to built trust.

. There is a current lack of coordination in funding programs.

. Regions need to be clearly defined for funding programs. Some AusIndustry programs have been unsuitable for implementation in some regions.

. Solutions should be defined to fit regions.

. Many reports have been prepared for Aboriginal people by State and Federal government including those on health, deaths in custody and employment. Many of these have not been acted on and funding associated with reports has not reached indigenous people. Services should be better coordinated to reach people who really need it.

. Equity of access to intellectual capital. There is a need for access to a wider range of tertiary courses in regional areas.

. An expectation in coming to the forum was that people wouldn't be told there was no more money and that more innovation is required.

. There are opportunities for employment in regional areas. These opportunities and the benefits of country living should be marketed at the Federal and State level. The Federal government could provide economic development officers in established economic development boards.

. Access to and equity in social service provision. There are a growing number of people dependent on welfare and services and an increase in the number of social problems. Economic development initiatives may benefit larger regional centres but have alarming affects on smaller centres through shifting of resources.

. The time taken in getting approval for regional projects (eg 3 years) can result in lost opportunities.

. There is an opportunity to channel ACC funds into Regional Development boards.

. Lack of infrastructure creates loss of development and can constrain associated employment opportunities. Eg Winery expansion disapproved by Council due to insufficient road infrastructure.

. ATSIC funding is divided into many programs with different guidelines. Aboriginal people have limited access to funding programs. CDC funding has not benefited Aboriginal communities in the region. (eg Gulf Link Ferry, Oyster farm).

. Regional Development boards and the ACC should take a leadership role in the region and develop telecommunications expertise.

. Regional areas have greater access to fresh air and an environment with lower levels of crime and stress.

. Environmental issues should be seen as opportunities. Ways of integrating economic and environmental issues should be investigated.

. Outback mining developments tend to have significant levels of "fly-in fly-out" employees and use contractors. These issues need to be considered in estimating their value to the region.

. A beneficial aspect of the forum is the opportunity it provides for regional people to link up with Commonwealth agency representatives and pursue issues relating to specific programs.

SESSION 4

Identification of Priority Issues for Day 2 Working Groups

Session objective: Participants identified four to five topics drawn from agreed regional priorities for more detailed examination in facilitated Working Groups on Day 2.

The following six workshop topics were identified following Session 4

Workshop No. 1: Partnering for Regional Development

Workshop No. 2: Equity for Regions

Workshop No. 3: Opportunities for the Region

Workshop No. 4: Infrastructure & Planning

Workshop No. 5: Breaking Down the "Silos" and sharing control

Workshop No. 6: Better Co-ordination for Aboriginal Development

Day 2- July 23rd

Working Breakfast "The Bishop's Wake-up Call"

Bishop Eugene Hurley, Bishop of Port Pirie

SESSION 5:

Facilitated Working Groups on Regional Priorities

Session objective: Facilitated Working Groups on agreed regional priorities. The working groups developed implementation strategies and recommended actions.

Workshop No 1: Partnering for Regional Development

Key targeted projects:

. In 3 months to explore whether we can have a "signed off" memorandum of understanding (MOU) on the recommendations of the Spencer Gulf Common Purpose Group Report

. Explore areas for more flexibility in the special purpose funding for infrastructure—roads, power & water

. Steering group to develop and facilitate a communication process network between AusIndustry and potential clients in the Spencer Gulf region

. ATSIC suggests a proposal for developing an agreed and defined partnerships between the Steering Group and the new ATSIC Regional Council

. A memorandum of understanding to be developed by Department of Transport and Regional Services to offer a "case manager" service to requests/enquiries from the Spencer Gulf region.

Criteria for models on partnership-to be tested:

. Process must be merit driven

. Government as a broker

. Advocacy

. Government to provide a "case manager"

. Potential for early communication and advice

. Distilling from previous models for success

. How to build personal relationships?

. Marketing programs and also the regional group

. Flexible time length (set in MOU)

. Develop a model MOU for use with all projects (either by service or region)

. Learn lessons from "excellent" contact officers- what works and what would help

. Explore flexibility in: approach, process, application, reporting, evaluation & funding models

. 2 way approach to streamlining & rationalisation- "We don't just want more-we are all prepared to give and take"

Workshop No. 2: Equity for Regions

Scope:

. Program/funding information

. Funding (including : Local Government Financial Assistance Grants (FAGs), GST, Tax Share)

. Intellectual capital/education

. Health and social services

. Information & technology

. Government services

Focus on:

1. Gaining improved equity from traditional sources ie FAGs, road grants, GST allocation, major State/Federal programs

2. Improving equity for the region by community action in attracting and holding private investment-self help

3. Inclusive decision making processes-a holistic approach which gets the regions in the decision making loop from day 1

. New investment opportunities

. Withdrawal of services and

. Structural adjustment processes

All underpinned by the need for flexibility—one size, one process doesn't fit all.

The Action Plan

Over the next four months we want to engage with Federal, State, Local and regional leaders to examine

. Funding formulae in relation to major regional grants. Action: Nominate a working group within 2 weeks of today and meet within 1 month

. Live case study around investment proposal- 2 or 3 projects. Action: Selection of studies and a working group to consider inclusive decision making structures and processes within 1 month.

Message: Renewal fostering of leadership

Workshop No. 3: Opportunities for the Region

. There is a need to develop

. A belief in the region. "Be different and tell people"

. Partnerships with both government and the private sector

. The right mindset to build on opportunities

. Campaigns to market itself both within and outside the region

. Involvement from the media

. A regional brand

A number of opportunities that could be developed or further built upon include:

. Cuttlefish diving

. Tourism in Cooper Pedy

. Oyster farming

. Flinders Ranges

. An education city

. Recreation

. Fishing

. Roxby Downs expansion

. Pichi Richi Rail

. Steel works tours

Action Plan: Market the region to investors with Commonwealth, State & Local Government groups

Workshop No. 4: Infrastructure & Planning

1. Funding Programs- State and Federal Governments to consult on guidelines—identify the representative group to consult with.

2. Federal Government response to executive summary of Regional Future Brief

3. Planning Issues. Pilot on industrial land zoning performance measures—Newcastle-BHP

4. Integration of Federal/State/Local Government regional development efforts. eg rural counselling

5. Infrastructure Audit: Establish priorities; include strategies in an information clearing house/ GIS system for all infrastructure related information.

6. Develop skills and expertise in smaller communities to take full advantage of information technology and fund human resources in Councils and Regional Development Boards to input information into the "clearing house"

7. Business case development to ensure that all parts of the region have access to telecommunication infrastructure at reasonable prices.

8. Genuine commitment to establishing Places of Presence (POP's) in the Spencer Gulf

9. Amend the criteria for funding mobile telephones to enable improved access for remote locations

10. Review of funding criteria for: road funding, FAGs. Consider different equations in recognition of hardships

11. Better market approval processes

12. Pilot cooperative investment projects + market models

. Tourism-Interpretative centre

. Federal/State/Local and private investment

. Effluent treatment

. Economies of scale in offering a number of infrastructure projects

. Facilitate process through Invest Australia

Workshop No. 5: Breaking Down the "Silos" and sharing control

Regional agreement upon a real development opportunity as a test case in two discrete zones

. Coastal

. Non coastal

Along the way the project must have all agencies agreeing with the process

. Define projects

. Terms of reference

. Long term model covering economic environmental and social considerations

. Time Line

. 1 month for regions to agree on the project

. 2 months for all parties to meet

. 3 months DECISION to go

Workshop No. 6: Better Co-ordination for Aboriginal Development

1. Regional autonomy

. More direct funding to the regions would offer benefits including reduced time constraints, which is commercially beneficial. Two regional plans currently exist in the region. Port Augusta & Ceduna. Approach to RCC. Refer SA Regional Development Taskforce.

2. Promotion of positive achievements

. Eg Public relations, Ministerial endorsement for local initiatives. Eg Buttlingarra

3. Building trust/brokering—

. A brokering role by Regional Development Boards could improve project credibility

4. Consider a changed perception of accountability

. ATSIC has comprehensive evaluation and audit processes. Regional communities also have a responsibility in relation to accountability.

SESSION 6

Constituent Regions De-briefing+Chaired by Regional Steering Group Members

Session objective: Opportunity for participants from each of the four regions to de-brief with their representative on the Steering Group prior to the Steering Group considering the Post-Forum Action Plan. The focus was on proposed strategic actions and accompanying timetables for four-month period after the Forum.

Feed-back from Steering Group members on Proposed strategic actions and Timetables for Post- Forum Action Plan

COMMON PURPOSE GROUP

1. Memorandum of understanding with the Common Purpose Group—Strategic plan

2. State/Federal/Local Government. Memorandum of understanding on forum issues. Communications—Local Government.

3. Review of criteria for Local Government funding—roads

4. Department of Transport & Regional Services (Case Manager)

EYRE PENINSULA

Signposts

1. More certainty in planning and development processes

2. Equity in funding—the case for a regional development fund

3. Practical outcomes

4. Lift the regions game in advocacy/marketing

Outcomes

. Commitment to change

MID NORTH/YORKE/FLINDERS

1. Direct Federal Government involvement in existing regional development boards (including appropriate funding)

2. Access to Regional Assistance Program funding for an infrastructure audit

3. Marketing (equity issue) by Federal Government on opportunity and contribution of country Australia. (Leadership by Federal Government)

4. Information technology infrastructure as a priority for Government.

5. Funding review—economic outcome driven

FAR NORTH

1. Authorities have a better understanding of the types of disadvantages and commit to assisting on a needs basis rather than per capita basis.

2. Infrastructure and communications are a priority with more interaction between the Anangu Pitjantjatjara (Aboriginal) lands and the rest of the region

3. Commitment to organising partnerships dedicated to achieving results and having a network of people known to these partnerships in terms of who they are and what they do.

4. No change to FAGs grants except to find a way that enhances them for small Councils

The forum concluded with agreement that further outcomes will be documented as they are deter mined through the Regional Forum Programme process.