Regional Cooperation and Development Forum
Plenary address
The Hon Warren Truss MP, Minister for Transport and Regional Services
12.10pm - 7 November 2005 National Convention Centre, Canberra
See also: 2005 Regional Cooperation and Development ForumThank you for inviting me to give the plenary address at this ninth Regional Co-operation and Development Forum. This is the first opportunity I've had to talk to an ALGA event as Minister for Transport and Regional Services and it is a pleasure to be here.
As many of you may know, I have a long history with local government. Before my Parliamentary life, I was a Member of the Kingaroy Shire Council for 14 years, from 1976 to 1990 - the last seven as Mayor. The strong relationship between the Australian Government and local governments, both individually and collectively, is something I value.
Introduction
It was a good choice to focus today's Forum on infrastructure - always a hot topic. With the new State of the Regions report launched this morning, Dr [Peter] Brain has given us a provocative, interesting and - importantly - plain English view of local government infrastructure issues across Australia. I look forward to reading the report in more detail.
As Minister for Transport and Regional Services, it's hard to stop me talking about AusLink and the Australian Government's commitment to more effective use of our infrastructure dollars. I'm sure today's audience is well aware of AusLink's five-year $12.7 billion program of Australian Government investment to build our national transport future. AusLink is the biggest program of its kind in our nation's history, or, as my predecessor John Anderson likes to say, the equivalent of two Snowy Mountains Schemes in today's money.
The $12.7 billion figure includes $1.35 billion for the extended Roads to Recovery program - in addition to untied Financial Assistance Grants to councils for roads and other purposes. The Government is committed to creating a transport system that meets Australia's growing transport needs. Australia's economic wellbeing is inextricably linked to the ability of our roads, railways and ports to transport goods throughout Australia and across the world. Our freight task is protected to increase dramatically in coming years, which is why AusLink is so important. The decisions we make now under AusLink on when and where we invest will have a major influence on Australia's growth and economic competitiveness for generations to come.
We are doing the groundwork now. Twenty-four corridor strategies will be completed by 2007, with several pilot studies by the end of this year. A tremendous effort is being put into getting them right. AusLink also demonstrates the Government's commitment to ensure Australia has a transport system that helps connect rural and regional Australians. Better connections between our major cities and towns not only make good economic sense - they help us build stronger rural and regional communities. But I'm not going to speak in detail about AusLink today. Instead, I'm going to talk about an issue of growing importance in today's modern world - telecommunications infrastructure and services, including broadband.
Context of telecommunications in Australia
Our geography and dispersed population presents unique challenges. Australia's barriers of distance have always made it hard to provide essential services, or just for people to keep in touch. Against that context, it is easy to understand why many Australians, particularly those living in regional areas, place the availability and quality of telecommunications services amongst their most important concerns.
Much has changed in the telecommunications sector over the past ten or so years. We now have rigorous competition in many parts of the industry, and in many regions. Australians, including regional Australians, have never had so much choice. New technologies are improving our quality of life. Imagine what the originators of the first Schools of the Air back in the 1950s would think about the ability of today's remote students to access the world through satellite broadband Internet connections. As more Australians are connecting to broadband, prices have come down, and more providers are entering the market. Broadband is now affordable for many people and businesses, and its availability has moved further out from the capital cities. It is clear there is strong demand.
Broadband has been able to reach so many Australians is, in part, due to Government funding assistance. But we need to keep broadband in perspective. It is not something everyone wants, and it is not always as cheap as lower bandwidth services. Due to technical limitations, broadband is not something that is going to be available at extraordinarily high speeds everywhere, immediately. That is why it is important to ensure that traditional telecommunications services are performing adequately as well.
Services, not infrastructure
I understand that, after lunch, you'll be talking about ICT in the community: the practical applications of information technology and communications infrastructure. Too often, the focus tends to be on the 'hardware', such as fibre optics and wireless technology, rather than what they mean for consumers. The next generation of the latest gizmo might excite the technical experts, but what do these technologies really mean in terms of improved services or greater convenience for customers?
It is about making the lives of Australians easier and more productive by technology. Technology helps our industry to be more efficient and internationally competitive. It ensures our health, education and other essential services can be up-to-date with changing community expectations and it facilitates the better flow of information between governments and citizens in both directions. Of course, as the minister responsible for regional services, I keep an eye on how regional businesses and communities can best take advantage of these opportunities. We cannot allow regional Australians to fall behind, and the Government does not intend that to happen.
Government telecommunications initiatives
I have touched on the range of uses that telecommunications has for various parts of the Australian community. Similarly, the Australian Government has a broad collection of strong laws, effective regulation and targeted funding assistance to ensure Australians of different needs and locations have access to quality and up-to-date telecommunications services. In terms of funding, one of the most prominent Government programs, established in response to the 2002 Estens Inquiry, was the Higher Bandwidth Incentive Scheme, or HiBIS.
I think we can be justifiably proud of what HiBIS has achieved over the last year and a half. It has supported the extension of Telstra's multi-billion-dollar broadband network to more than 660 communities in the bush, and helped establish the networks of 30 wireless broadband providers and three cable providers. And all with $158 million of Government funding - spent the right way to make real outcomes on the ground.
Recent future-proofing package
By now you will have undoubtedly heard of the Government's $1.1 billion Connect Australia initiative announced in August. I'd just like to take a moment to dwell on this - it's fantastic news. There are four different parts of the package. Each focuses on particular outcomes. Firstly, there is $878 million for Broadband Connect. That funding will build on the success of HiBIS to further extend the availability of affordable broadband to more communities across Australia. With the $113 million Clever Networks program, the Australian Government will be supporting new infrastructure that allows essential services such as health and education in regional areas to be delivered in innovative ways.
The $30 million Mobile Connect program will expand terrestrial mobile coverage even further - where it is viable - and also continue the Government's subsidy for satellite phone handsets.
Finally, the $90 million Backing Indigenous Ability program. This component looks at the broader communications needs of Australia's Indigenous communities. It will deliver community phones, Internet and videoconferencing in remote indigenous communities and improved radio and television services. I should point out that this funding will be delivered in ways that are neutral to choice of technology and provider. Australia's current and future needs will be best met through a range of technologies, most likely including copper, fibre, wireless and satellite. As a Government, we do not want to pick winners amongst technologies or carriers, we want to choose on-the-ground outcomes.
In addition to the $1.1 billion package starting from next year, the Government has established a $2 billion Communications Fund to future-proof telecommunications services in rural, regional and remote Australia. The fund will provide an income stream to ensure that regional, rural and remote Australians will be able to access affordable and reliable telecommunications services into the future. Spending from the fund will be tied to independent, regular reviews of regional telecommunications services. The first review will be conducted in 2008 with subsequent reviews to follow every three and a half years.
It is clear that the need for broadband capability will increase in the future. More advanced services may require higher speeds than what is generally accepted today. But, with the pace of technological change, who knows what will be the best way to encourage this in 10 years or even longer? The regular reviews and the support available from the Communications Fund ensures that we have flexibility to make sure funding goes to the most appropriate and relevant outcomes in the future.
Senator Helen Coonan, the Minister for Communications, Information Technology and the Arts, is keenly aware of the importance of telecommunications for regional Australians. She has done a marvellous job in developing a range of funding streams and regulatory reforms to meet tomorrow's challenges.
Local government and demand aggregation
Earlier this year, the then very new Telstra chief executive, Sol Trujillo, commented that he wished to see the company work more closely with local government to improve services in rural areas. I know this caused some raised eyebrows at ALGA. I don't think Mr Trujillo was necessarily talking about a financial contribution from councils. But it is important that local governments understand what's happening in their region, and how they can best make a positive contribution.
Here are a few activities that I think that local governments across Australia might do - and are doing.
Probably the simplest thing is to improve information - to help your residents and businesses understand what is available where. For example, do any of the smaller wireless broadband providers operate in your geographic area? Has one of the Telstra exchanges recently been enabled for ADSL broadband? It can't hurt to let your residents and businesses know.
A more sophisticated way might be through encouraging demand aggregation. Demand aggregation involves working with communities, industry and institutions to make a more viable business case for broadband infrastructure and services, bringing demand together to achieve better access, choice and prices.
The Australian Government has funded the establishment of a system of Demand Aggregation Brokers. In the main, they focus on regional, rural and remote areas of Australia. The Brokers help to develop sustainable broadband markets where pockets of existing or potential demand may be currently either too small or too isolated to be attractive to suppliers. The program has three tiers - at national, state and territory and community levels.
Whilst the national brokers work across jurisdictions in targeted areas such as health and education, the community-based brokers work to improve broadband access in specific regions. A number of local governments have played an active role in seeking funding to facilitate these community-based brokers.
One example is Macedon Ranges Shire Council in Victoria, for a project covering the Shires of Macedon, Mitchell and Murrindindi, working with communities including Lancefield, Kyneton, Woodend, Romsey, Gisborne and Wallan. This is a region of more than 6,000 square kilometres with approximately 80,000 people.
Another successful project covers my own electorate - with the Wide Bay Burnett Regional Organisation of Councils in Queensland, This project utilises the critical mass of major centres such as Bundaberg and Maryborough to leverage infrastructure provision in the Wide Bay Burnett's smaller communities.
I'm particularly heartened that these projects are clear evidence of local governments looking at their regional context and working with their neighbours and other important local players. And I guess this gets to the core of what today's forum is about: co-operation and development, working together and establishing partnerships to improve real outcomes on the ground.
I have heard some suggesting that local governments might form a telecommunications carrier themselves or in partnership with the private sector. This is an interesting and innovative concept, and worth greater thought. However, I don't think it should be necessarily rushed into: it seems an idea that carries much risk and needs skills that generally aren't core to local government staff. But it's certainly an option. I hope that local governments might consider accessing relevant Australian Government programs, or perhaps just act as sources of information or as coordination points.
Conclusion
To conclude, I'd like to encourage local government to continue down the path of regional co-operation, and make the most of the opportunities for improving telecommunications infrastructure and services.
The Government has a comprehensive and sound telecommunications policy framework. More than a billion dollars has been spent by the Australian Government on regional telecommunications since 1997. And, as I have outlined, there will be significant expenditure in the future. Regional Australia, in particular, has much to gain over the next few years.
I wish you well for the remainder of today's Forum, and for the General Assembly over the next few days.
Thank you.
The Hon. Warren Truss MP
7 November 2005, Canberra
