Advance Cairns Federal Budget submission October 2022

ADVANCE CAIRNS OUR REGION ONE VOICE

THE COMMITTEE FOR TROPICAL NORTH QUEENSLAND

2022-2023 CAIRNS TNQ

FEDERAL BUDGET SUBMISSION

FORGING A BRIGHTER FUTURE

FROM THE CHAIRMAN NICK TROMPF

BUDGET NEEDS TO TURN PROMISES INTO REALITY

C

airns is emerging from the COVID-19 pandemic with renewed vigour and a focus on forging a brighter, more sustainable future.

•

Workforce: Promoting regional skills development with $50m for a new CQUniversity campus in Cairns CBD

The far north’s ambition to rebuild our decimated tourism and hospitality sectors, and simultaneously diversify the economy, is gathering considerable momentum.

•

Roads: Improving safety and reliability of Kuranda Range Road through $210m for a essential safety upgrades and a detailed study of alternative routes to the Atherton Tablelands

However, as Australia’s most global regional city, Cairns faces increasing risks through rapidly rising inflation, labour shortages, supply chain pressures and geopolitical instability.

•

Water security: Ensuring long-term water supply for TNQ through $107.5m for Cairns Water Security – Stage 1 project.

Our economic recovery will be more sustainable thanks to the Albanese Government’s considerable commitments announced in the lead up to the 2022 federal election.

While the region is grateful to the ALP for those promises, this submission calls on the Government to turn its pledges into reality in its October 2022 Federal Budget including the following.

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•

Defence: Transforming the Cairns port through $150m for a new multi-user marine maintenance facility (matched by the State Government) as well as investing a further $24m across our shipyards

•

Tourism: Rebuilding international tourism into Cairns with the critical $15m announced in the March Federal Budget

•

Health: Enabling full-term medical degrees through JCU Cairns with 20 Commonwealth Supported Places from next year, as well as a further 40 in future years

Advance Cairns would again like to acknowledge the significant commitments from the ALP before the 2022 election and looks forward to working with the Albanese Government to see these pledges come to fruition to help our region forge a brighter, more sustainable future.

Nick Trompf Advance Cairns Executive Chairman

INFRASTRUCTURE & POLICY PRIORITIES THE OPPORTUNITIES SUMMARISED BELOW ARE PIVOTAL TO HELP CAIRNS TNQ REBUILD FOLLOWING THE DEVASTATING ECONOMIC IMPACTS OF COVID-19 AND, IMPORTANTLY, CREATE MUCH-NEEDED DIVERSIFICATION AND RESILIENCE IN THE REGION’S ECONOMY.

CAIRNS MARINE PRECINCT - P4 $300m Federal/State funding towards building a multi-user facility; $24m Federal funding stage 2 capacity increases; $155m HMAS Cairns.

TABLELANDS ACCESS - P12 $210m Federal funding Kuranda Range Road, including $21m business case; Extend National Highway A1 from Smithfield to Mareeba.

CAIRNS UNIVERSITY HOSPITAL REDEVELOPMENT - P6 $25m for 20 CSPs JCU Medical School plus 40 of 80 CSPs in March 2022 Budget; State funding for CHIC as per business case; funding for land for new acute clinical services building; State funding $250m surgical centre.

INLAND ROADS - P14 $398m State and Federal funding over 10 years Gulf Savannah Way; $25m Federal funding to complete upgrade Kennedy Developmental Road.

EDUCATION & RESEARCH - P8 $50m Federal funding new CQUniversity CBD campus; $25m funding 20 CSPs JCU Medical School plus 40 of 80 CSPs announced in March 2022 Budget.

FOOD AND WATER SECURITY - P16 $107.5m (State $107.5mFederal Federalfunding funding (State matched) Cairns matched) CairnsWater WaterSecurity Security - Stage Stage1;1;State Stateand andFederal Federal Governments facilitate Lakeland Governments facilitateDAs DAs Irrigation Project; $2.5m LakelandArea Irrigation Area Project; Federal Federal funding Etheridge Shire $2.5m funding Etheridge Irrigation Project;Project; $7m from NWIDF Shire Irrigation $7m from businessbusiness case North Johnstone NWIDF case North River diversion Johnstonescheme.

River diversion scheme.

TOURISM RECOVERY FUND - P10 $15m Federal funding TTNQ destination marketing to reignite international tourism; Federal reset for Export Market Development Grants and other programs.

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INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

CAIRNS MARINE PRECINCT COUNCIL: CAIRNS STATE ELECTORATE: CAIRNS FEDERAL ELECTORATE: LEICHHARDT

THE ISSUE BRIEFING NOTE SUMMARY • The Cairns Marine Precinct is vital to the economic diversification of Tropical North Queensland as the region recovers from devastating impacts of COVID-19 on its tourism and hospitality sectors.

• Cairns is a strategic port for Defence. The Navy has announced it requires its new Regional Maintenance Centre (RMC) North-East in Cairns to become operational by late 2022, following its launch in January when it became the first of four new RMCs in Australia.

• It is crucial that the Federal and State Governments work together to deliver on their commitment of $300m towards a Common User Facility as a centrepiece of fully developing the precinct infrastructure and tomorrow’s workforce.

• A commitment is needed to provide long-term continuous sustainment programs and to support the redevelopment of ship and boat building in the precinct.

The Cairns Marine Precinct (CMP) is a critical enabler of the Tropical North Queensland (TNQ) economy, supporting Australia’s strategic Defence and foreign policy initiatives, as well as border and fisheries, tourism, and maritime trade operations. The precinct is home to a large and diverse marine sector with 1603 commercial vessels across tourism, fishing and shipping, and cruising yacht sectors, in addition to several Royal Australian Navy (RAN) and Australian Border Force (ABF) vessels.

The precinct also hosts superyachts and cruise liners visiting the Pacific. COVID-19 exposed the fragility of Cairns’ tourism-based economy, and the continued growth of the CMP is critical for economic diversification in the region. A sustainable marine capacity to ensure that both strategic Defence priorities and industry needs are met is vital to provide growth and jobs for the TNQ region.

Over the past few years, growing tensions between the United States and China have elevated the strategic importance of the Pacific, and Australia is now more than ever a frontline player in terms of engagement and development of the region. Australia’s StepUp to the Pacific program, launched by the previous Federal Government, signalled a key change in Australia’s Defence posture as it prioritised the Indo-Pacific region.

The Albanese Government has further elevated the importance of Pacific engagement with new Foreign Affairs Minister, Penny Wong, making several trips to the region within weeks of the ALP’s election win. Additionally, in August the Government committed to delivering the

Pictured: The proposed Common User Facility for the Cairns Marine Precinct.

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most comprehensive Defence Strategic Review the country has seen in 35 years with its findings due by March 2023.

Under the Security of Critical Infrastructure Act (2018), the Cairns port is a critical national infrastructure asset. The port includes HMAS Cairns, Australia’s most northern naval base on the eastern seaboard, and it plays a key strategic role in Australia’s northern naval capability. In acknowledging this role, in 20172018 the Federal Government committed to upgrading the precinct through staged investment.

There is unmet and growing demand in naval, commercial and superyacht maintenance opportunities that supports a step change in ship sustainment capacity in the CMP. As outlined in Table 1, this investment needs to cater for larger vessels (up to 120m), have ship-lift capacity of 3500-5000 tonnes, provide up to 350m of extra wharf, see multiple large vessels simultaneously in dry dock, and allow considerable extra land for sustainment activities.

The State Government business case released in January 2022 identified necessary infrastructure and skills requirements to ensure future growth and development in the precinct.

This includes a common user facility, accessible by all shipyards. It is essential that the State and Federal Governments deliver on their $300m commitment towards funding the required infrastructure as outlined in the business case.

A commitment to long-term continuous maintenance programmes by the RAN will assist the individual shipyards to forward plan in their own businesses and give them the ability to make investments in their own infrastructure.

Understanding the opportunities in specialist boat and shipbuilding will also allow further private investment and give security to individual businesses of a pipeline of continuous work in the marine precinct.

The CMP expansion needs to be complemented by a significant step up in industry workforce skills and training, both within the shipyards and also within the sector’s support industries. To support the CMP, there is a major role for training to upskill existing workers and contextualise training for the marine sector, and to recruit and grow the workforce through stronger training pathways.

BACKGROUND

The Cairns region has the largest marine services sector in northern Australia, and has a skilled, year-round permanent marine and engineering workforce of 4600 across 270 organisations.

In 2017 the Federal Government committed to a Phase 1 $24m investment into Ports North Leaseholds to enhance and modernise the three shipyards within the Cairns Marine Precinct. In 2020, the State Government committed $28m for increased wharf capacity as well as $2m for the detailed business case to inform a stepchange within the precinct. Significantly, in the lead-up to the 2022 election, Federal ALP announced $150m towards the CMP, which was subsequently matched by the State Government.

The CMP is Australia’s maintenance centre for the RAN’s hydrographic vessels as well as Australian Border Force Cape Class vessels.

It has serviced the Defence, Border Force, and marine industries for many years and, as home to Fleet Base Pacific (HMAS Cairns), is one of the few ports in Australia that can offer the Department of Defence significant expansion opportunities in berth and land facilities. RAN is currently undertaking long-term planning for HMAS Cairns, and, in conjunction with Ports North Master Planning and the CMP business case, is looking at expansion of the current site as well as future purpose and requirements for the base.

The CMP is the first of four new Regional Maintenance Centres (RMCs) for the RAN as part of Plan Galileo. The RMC NorthEast provides a national naval sustainment and maintenance hub, enabling the CMP to build on its present commitments of servicing vessels from HMAS Cairns, Darwin, the United States, and the Pacific Islands.

The State Government business case (released January 2022) highlights that one in six vessels in Australia over 15m – and four

in five NQ registered vessels – are serviced in Cairns. The business case also highlights the existing shipyards are at or near capacity and that future demand will not be met with current capabilities.

In August, Federal Labor announced details of the first Defence Strategic Review the country has seen since 2012 and the most comprehensive in 35 years. Defence Minister Richard Marles said the review, which will be led by former Minister for Defence Stephen Smith and former Chief of the Australian Defence Force Sir Angus Houston, will ensure the ADF is well positioned to meet security challenges amid “more aggressive posture” from China.

With these current geopolitical tensions, particularly in the Indo-Pacific region, and with internationally significant events such as China’s security deal with the Solomon Islands, it is essential that this review sees a strengthening of Defence Force operations in far northern Australia.

Without a significant step-up in infrastructure and capability at the CMP, existing operators may not be able to compete for all future sustainment contracts, and/or maintain or grow their business. This will result in a potential decline in market share and loss of economic opportunity, while overall regional activity levels in allied industries will also sharply decline.

The objectives of the Defence Industrial Capability Plan are to broaden, deepen,

and grow the industrial base of Defence to enhance Australia’s national security.

NEXT STEPS

To ensure further growth and job creation in the region, to attract greater private investment, and to enable Defence to achieve its strategic goals, the following commitments for the CMP are needed to facilitate a transformation in the overall capacity and capability of the precinct: • Delivery of the joint State and Federal commitment of $300m towards infrastructure and support as outlined by the Cairns Marine Precinct business case released in January 2022.

• A commitment of $24m across two years for stage two capacity increases within the three existing shipyards.

• A commitment from Defence to provide additional vessels in Cairns and longterm continuous maintenance and sustainment programmes.

• Support for ongoing innovation and re-establishment of a boat and small ship building industry in the precinct.

• Consideration of a virtual sustainment college through the Great Barrier Reef International Marine College. The College will develop and deliver agile micro credentials that meet future Defence sustainment demands (see Education & Research priority).

INFRASTRUCTURE

SHORT TERM

LONGER TERM

Capability (vessels)

Vessels to 120m LOA - homeported RAN fleets and majority of regionally based commercial vessels

Vessels 150m to 175m LOA – majority RAN fleet/maximal commercial vessel opportunities

Lift out capacity (shiplift/ dock)

3,500 to 5,000 tonnes capacity

8000 tonnes capacity

Berth length

3 to 4 vessels at any one time; additional berth of 150 – 350m

800m to 1km of quayside, separate superyacht berth facility comprising floating pontoons

Extra yard and warehouse facilities, plus out of water capacity

3 to 4 vessels up to 120m LOA; 5 hectares of additional land + SPMT corridors; additional paint/blast workshops; ability to sub-divide land areas for security/ship type purposes

6 – 8 hectares of additional land for vessel lay down purposes, separate landside areas for superyacht maintenance and refits (up to 3 hectares)

OUR RECOMMENDATION • That the Federal and State Governments deliver on their commitment to provide $300m towards the Common User Facility as outlined in the Cairns Marine Precinct expansion project business case.

• Defence investment in HMAS Cairns, including a commitment to base and sustain additional vessels in Cairns.

• That the Federal Government commits $24m over two years for stage 2 capacity increases within the three existing shipyards.

• That the Queensland Government supports and facilitates the Federal expansion of HMAS Cairns, ensuring the Department of Defence delivers on the initial $155m upgrade of the Navy base by 2025.

• That the $28m for early works to deliver in-water maintenance berths for the Cairns Marine Precinct expansion be constructed by the end of 2022.

ESTIMATED PROJECT COST $507m

2022 2023

2023 2024

2024 2025

2025 2026

Recommended Federal/State Investment (split 50:50) Construction of $10m Common User Facility Recommended Federal Investment

$50m

Stage 2 shipyards

$12m

$12m

$120m

$120m

$45m

$40m

Federal Funded, Delivery Required HMAS Cairns infrastructure

$20m

$50m

State Funded, Delivery Required CMP wharf improvements

$28m

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INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

CAIRNS UNIVERSITY HOSPITAL REDEVELOPMENT COUNCIL: CAIRNS STATE ELECTORATES: BARRON RIVER, CAIRNS, COOK, MULGRAVE FEDERAL ELECTORATES: KENNEDY, LEICHHARDT

BRIEFING NOTE SUMMARY • Investment in expanded health facilities, services and staff at Cairns Hospital is critical to meeting the health needs of Tropical North Queensland communities in the medium and long term. Cairns Hospital is already at capacity.

• Transitioning to university hospital status will allow Cairns Hospital to achieve its vision to grow its already impressive capabilities to ultimately provide the community and staff with more complex clinical services closer to home. This will be based on cutting-edge research, clinical trials and expanded education to support the current and future health needs of our community.

• An on-going commitment is needed from Federal and State Governments to support the development of Cairns Hospital in two phases: º Phase 1 is the Cairns Hospital Capacity Expansion Project by 2026 and the Cairns Health and Innovation Centre, for which further funding is needed. º Phase 2 is a new acute services building on an expanded Cairns Hospital footprint. Planning and an initial funding commitment are required now to enable Cairns Hospital to meet the continued projected growth in demand for health services.

The two phases of the Cairns Hospital Expansion and University Status have broad partner support and seek to build on successive government investments. CHHHS, supported by the Northern Queensland Primary Healthcare Network (NQPHN), James Cook University and other tertiary institutions, is seeking to improve the ability of Cairns to build its own medical, nursing, and allied health workforce, to expand its clinical services and translate research into practice to improve health outcomes for the communities of Tropical North Queensland.

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THE ISSUE

The Cairns and Hinterland Hospital and Health Service’s (CHHHS) operations extend across North Queensland regions to some of the most remote communities in the state, with a population increasingly experiencing complex, chronic conditions above national averages.

Expanded health services, clinical research, and education are critical to meeting the health needs of Tropical North Queensland’s (TNQ) growing population.

Cairns Hospital faces a number of sustainability challenges. These include: • Short- and long-term infrastructure capacity – Cairns Hospital is now at capacity across all bed types and there is no hospital bypass option. By 2036/37, this gap will be more than 360 beds. Capacity is a critical risk and immediate planning is needed for a new acute clinical services building to ensure sustainable health service delivery for the medium term.

• Site constraints and resilience – Cairns Hospital is the smallest block of developable land for comparable hospitals, and the waterfront location creates service continuity risk (via flooding and storm surge).

• Workforce and Innovation – the CHHHS needs to increase its locally grown health workforce to enable it to deliver expanded services closer to home. Attraction and retention of skilled clinicians and researchers will be vital to achieving the necessary innovation and associated research.

Transitioning Cairns Hospital to university hospital status will allow it to deliver world-class, high-quality care to address the critical current and future health challenges facing TNQ. This will result in more complex medical and surgical

services, with more skilled and highly trained clinicians.

The Cairns University Hospital will also enable enhanced education and research, meaning more Cairns and TNQ locals can complete their entire health education and training in the Cairns region. It will also facilitate research in areas that are relevant to our region and embed the research outcomes into better health services.

The many elements that combine to become Cairns University Hospital will have the added benefit of attracting and retaining staff and clinical expertise.

Complementing the vision to transition to a university hospital, the Federal Government has committed $25m for 20 Commonwealth Supported Places for local students to study their medical degree at JCU in Cairns. This would enable James Cook University to offer the full 6-year program in Cairns to expand the junior medical workforce. Additionally, the Morrison Government’s March 2022 Federal Budget announced 80 CSPs to be allocated nationally via competitive process. JCU is now seeking allocation of 40 of the 80 CSPs. The Queensland Government has committed funding to help address short term capacity challenges through short-term relocation of subacute services off site from Cairns Hospital and a commitment to develop a new surgical centre.

To deliver on the vision of Cairns University Hospital, CHHHS needs to progress phase 1 (CHIC and increased bed capacity at Cairns Hospital) and urgently commence planning for phase 2 (new acute clinical services building) – with both facilities in close proximity to Cairns Hospital.

PHASE 1 (2022-2026) Capacity Expansion Project » Relocate subacute care offsite to free up capacity for acute services at Cairns Hospital (by June 2023) » Develop the Cairns Surgical Centre to enable increased surgical capacity and increase bed capacity to Cairns Hospital for additional acute care beds

Cairns Health and Innovation Centre » Construction of new Health and Innovation building adjacent to James Cook University planned building on land adjacent to Cairns Hospital. » Deliver new, innovative care models – virtual health, ambulatory care, clinical trials (reducing bed pressures at Cairns Hospital)

PHASE 2 (2022-2036+) New acute clinical services building (Transform) » Invest in an expanded hospital footprint to meet projected services demand (360+ beds by 2036) » New Acute Services Building to meet critical care needs – expanded emergency dept, theatres, ICU, wards » Expanded sub-acute services

BACKGROUND

The Cairns and Hinterland Hospital and Health Service (CHHHS) needs to support a growing population whose demand for healthcare services consistently outstrips population growth. The CHHHS annual report for 2020-2021 highlighted that Cairns Hospital supports an estimated resident population of 285,000, including the regular provision of acute medical services for residents of the Cape and Torres region, an area larger than Victoria. Combined with estimated population growth of 2.13% (compound annual growth rate) per annum and an ageing population, the report estimated that by 2032 an additional 67,000 people will reside in the catchment area with more than one in five residents aged over 60 – a third more than the national average1.

Cairns Hospital continues to see increased demand on its Emergency Department. In 2021 there were more than 86,000 presentations to the Cairns Hospital Emergency Department (a 10,000 increase on the previous year), averaging 236 patients per day. Since the beginning of 2022 there has been further increased pressure on the Emergency Department with a record-breaking 314 patient presentations on May 4, its busiest day ever on record and a 10% jump on the previous record set in February 20212. Increasingly, there is demand for specialist services and elective surgery, placing additional pressure on Cairns Hospital.

In the 2022-23 State Budget, funding was committed for accelerated capital works to help address the most urgent bed pressures at Cairns Hospital. These include the relocation of subacute care offsite (45 beds) to help address existing bed capacity issues at Cairns Hospital. Additionally, there is $250m planned for a new surgical centre and additional bed capacity to be built by 2026 to help repurpose some existing areas of Cairns Hospital for acute care.

NEXT STEPS

To successfully transition Cairns Hospital to Cairns University Hospital, an expansion of bed capacity and selected specialty services is required over coming years, potentially including endoscopy, paediatrics, and other medical and surgical specialties. This will also include new expanded clinical and professorial roles. This will be delivered through strong partnerships, the right infrastructure, and expanded provision of safe and sustainable clinical services for Tropical North Queensland.

• Progress the business case for the Cairns Health and Innovation Centre (part of Phase 1) and secure a funding commitment for its construction on land adjacent to James Cook University’s site in North Cairns, which will accelerate innovation and enable the much-needed workforce of the future. The CHIC will be a critical step towards realising Cairns University Hospital.

• Complete planning of the $250m Cairns Surgical Centre (part of phase 1) by the end of 2022 and progress construction of the centre on a five year timeline toincrease surgical capacity and refurbish parts of Cairns Hospital for additional acute care beds, delivering an additional 96 beds by 2026 to help address short term capacity needs.

• Immediately secure a commitment for

OUR RECOMMENDATION • That the Federal Government includes in its October 2022 Budget $25m in funding for 20 Commonwealth Supported Places for the JCU Bachelor of Medicine, Bachelor of Surgery (MBBS) in Cairns (to begin in 2023) plus allocates JCU 40 of the additional 80 CSPs in the March 2022 Budget.

• That the State Government commits the full funding for the Cairns Health Innovation Centre (as outlined in the business case) in 2023.

• That planning of the $250m Cairns Surgical Centre is completed by end of calendar year and construction is progressed on a five year timeline (part of phase 1).

• That funding is committed now to acquire land to support the new acute clinical services building (phase 2).

• That the State Government starts planning now for the new acute clinical service building to enable Cairns Hospital to meet medium-term health service demands (phase 2).

ESTIMATED PROJECT COST

the medium-term sustainability of the Cairns Hospital, including the land purchase, planning, and construction of a new acute clinical services building near Cairns Hospital with construction to occur between 2027 to 2032 to expand the hospital footprint and address resilience risks.

• Establish a planning commitment for a broader Health and Wellbeing Precinct within a 2000m radius of Cairns Hospital.

The Health and Wellbeing Precinct will bring together a range of both private and public health services, closely located to the sporting precinct of Cairns and enabling co-location of health and wellbeing services for the benefit of the community.

1. State of Queensland (Cairns and Hinterland Hospital and Health Service) Annual Report 2020-2021.

2. https://www.tropicnow.com.au/2022/may/4/cairnshospital-emergency-department-records-its-busiest-day-inhistory

2022-2023

2022-2026

2027-2036

Recommended Federal Investment JCU Medical School

$25m for 20 CSPs plus additional 40 of 80 from March 2022 Budget

Recommended State Investment $250m surgical centre* Phase 1 Capacity Expansion Project Recurrent operational costs offsite subacute care facility* Phase 1 Cairns Full funding Detailed business case* Health and Innovaas per costs in tion Centre business case Purchase land Phase 2 New acute Commence planning** clinical services buildings Phase 1 and 2 Delivery of projects

To be completed and services open with construction to begin 2027.

Full funding as per costs in business cases

*Funding delivered, timing pending for detailed business case ** Timing pending on Capacity Expansion Project

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INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

EDUCATION AND RESEARCH COUNCIL: CAIRNS STATE ELECTORATE: CAIRNS FEDERAL ELECTORATE: LEICHHARDT

BRIEFING NOTE SUMMARY • Tropical North Queensland’s education sector includes two universities, six TAFE campuses, 35 secondary schools, and private language and business schools.

• Youth unemployment sits at 12.4% and the region faces a skills shortage in health, allied health, aviation, and a number of other STEM professions.

• Two key infrastructure projects have been identified to address regional skills shortages, with $50m committed by Federal Labor in November 2021 for a permanent new CQUniversity campus in the Cairns CBD and $13.4m required from the State Government for the Great Barrier Reef International Marine College expansion.

• The CQU campus project is shovel-ready and will create an estimated 330 jobs (direct and indirect) during construction and contribute $549m to the regional economy over 10 years.

The project will address current skills shortages in allied health, engineering, and technology.

• Regional medical shortages will also be addressed by enabling students to complete James Cook University’s full Bachelor of Medicine, Bachelor of Surgery program in Cairns following bi-partisan support for 20 Commonwealth Supported Places in the lead-up to the federal election. Support is also sought for allocation of a further 40 of the 80 CSPs included in the March Federal Budget.

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THE ISSUE

Tropical North Queensland has a dynamic and vibrant education sector with two universities, six TAFE campuses, 35 secondary schools, and a number of private language and business schools. In 2020/21, more than 11,000 people were employed in education and training in TNQ, contributing $950m to the local economy1. The region is shifting towards a knowledge-based economy, which has implications for educators and regional training facilities. To accommodate the shift, the sector has invested hundreds of millions of dollars in infrastructure in recent years, and additional projects are flagged for investment.

With a strong student base now established, CQUniversity (CQU) and James Cook University (JCU) continue to grow in the Cairns region.

Through collaborative partnerships and to address current gaps in education pathways, the two universities are working to build capacity across a range of industries and community initiatives.

CQU: Since commencing on-campus delivery in Cairns in 2016, CQU Cairns has experienced significant year on year growth2. Given this, it has outgrown its current premises and requires new purpose-built facilities. As part of its 2019 Community Impact Plan, CQU has a shovelready project to build a permanent new CQU Cairns CBD campus. The university currently operates from four leased premises across Cairns. The new campus may allow some consolidation of sites.

CQU welcomed Labor’s $50m commitment in November 2021 towards construction and fit out of the site, and now await delivery of the funding.

JCU: Building on 30 years of commitment to Cairns, bipartisan support was given for 20 Commonwealth Supported Places at JCU Medical School in Cairns during the 2022 federal election campaign, with another 80 to be allocated nationally via competitive process, as per the March Federal Budget. It is now critical that the university receives the committed $25m for 20 initial places and is further considered for 40 of the additional 80 CSPs. TAFE Queensland: The Great Barrier Reef International Marine College (GBRIMC) continues to grow and expand its range of innovative marine training capabilities, offering domestic and international students specialised maritime education in areas such as safety and survival, security, fire, communications, and electronic chart display information systems.

With the growth in Cairns as a strategic marine defence hub and a renewed focus on the Pacific as part of the Step-Up to the Pacific programme, in March 2021 TAFE Queensland and the GBRIMC were awarded the contract for the Department of Defence’s Pacific Maritime Training Services (PMTS), a key part of the Australian Defence Cooperation Program.

Under this 5-year contract (with three 3-year extension options) TAFE Qld has been awarded $36m to deliver vital maritime training to an estimated 320 Pacific Islands people annually, who will crew the 21 Guardian Patrol Boats gifted by the Federal Government to replace the existing pacific patrol boats that have been in-service since 1987. A GBRIMC Business Case has outlined $13.4m is required to upgrade and expand the college to meet the requirements of the PMTS program.

BACKGROUND

The TNQ region has an estimated resident population of 292,943, with that figure expected to reach 378,000 by 20413. ABS figures for 2016 showed the attainment of a university degree in Cairns was 54% lower than the national average at 14.3%, while 8.5% of residents had an Advanced Diploma or Diploma and 19.7% had a Vocational Certificate, on par with the rest of the state4.

In May 2022, the youth (15-24 years) unemployment rate stood at 12.4%5.

While Cairns has two universities, access to appropriate courses and pathways into university is critical in bridging the high youth unemployment rate and encouraging young people to enter the workforce.

Nationally over the next five years, an additional 85,000 health workers and 28,000 educators will be needed to fill jobs in regional areas. COVID-19 has also exacerbated shortages in other sectors in Cairns, most notably engineering.

Engineering is ranked as one of the major skills shortages nationwide, and this shortage is greater in regional areas. To fill this need, the importance of regional universities cannot be overstated with more than 65% of employed regional university graduates remaining in regional areas on completion of their studies6.

NEXT STEPS

In addressing youth unemployment and preparing the region’s workforce for the future, the following four projects have been identified as essential enablers.

1. CQU seeks delivery of the Albanese Government’s commitment of $50m to establish a permanent, purpose-built CBD campus for 4000+ students by 2030.

Located next to the Cairns Convention Centre, the new campus will complement existing infrastructure, effectively creating a knowledge hub precinct in the Cairns CBD. Most importantly, the campus will address the significant skill gaps identified in the region, particularly in terms of allied and mental health,

OUR RECOMMENDATION

engineering, and technology. The project is shovel-ready and will generate an estimated 330 jobs during construction (80 direct), plus more than 300 direct jobs through expanded university operations and staff and student expenditure in the region. The economic impact over 10 years will be around $549m7.

2. To support the training and recruitment of Cairns-based clinicians, JCU requires the promised 20 Commonwealth Supported Places for medicine students to be funded from 2023, plus allocation of 40 of the additional 80 designated Commonwealth Supported Places (CSPs) announced in the March Federal Budget.

3. TAFE Queensland, following preliminary design and planning work, seeks to undertake a facility extension to the GBRIMC campus, with site stabilisation works including pre-loading, construction of new classrooms, and a simulator suite. The cost of this extension is expected to be $13.4m. This extension will allow the provision of services to the 320 PMTS students expected each year as well as catering for the growth in Defence and other marine training, following commencement of the Regional Maintenance Centre for Defence in 2022.

• That the Federal Government includes in its October 2022 Budget the $50m to establish a new CBD campus for CQU. • That the Federal Government includes in its October 2022 Budget $25m in funding for 20 Commonwealth Supported Places for the JCU Bachelor of Medicine, Bachelor of Surgery (MBBS) in Cairns (to begin in 2023) plus allocates JCU 40 of the additional 80 CSPs in the March 2022 Budget.

• That the State Government supports the expansion of the GBRIMC with an investment of $13.4m, to enable training for the Pacific Patrol Boat training programme and other Defence and marine requirements.

ESTIMATED PROJECT COST

Source: 1. https://economy.id.com.au/fnqroc/value-add-by-industry?sEndYear=2020&WebID=10 2. https://www.tropicnow.com.au/2020/october/14/ cqunis-push-for-new-cbd-campus-picks-up-steam 3. https://www.statedevelopment.qld.gov.au/regions/ queensland/far-north-qld 4. https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/306 5. https://www.qgso.qld.gov.au/issues/3431/regional-youth-unemployment-202205.pdf 6. ACER JTD Research briefing (2011) Higher education and community benefits: The role of regional provision Volume 1, number 5 7. Cummings, W. Economic and Socio-Economic Impact Analysis: Proposed Development CQUniversity Campus May 2020 p16

2022 2023

Recommended Federal Investment CQUniversity CBD Campus JCU Medical School

$50m $25m for 20 CSPs plus additional 40 of 80 from March 2022 Budget

Recommended State Investment TAFE Queensland GBRIMC

$13.4m

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POLICY TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

TNQ TOURISM RECOVERY FUND COUNCIL: ALL TNQ STATE ELECTORATE: ALL TNQ

BRIEFING NOTE SUMMARY • Tropical North Queensland (TNQ) is world renowned as a leading tourism destination.

• The visitor economy supports one in six jobs directly and indirectly, and pre-COVID the tourism sector paid more than $1bn in State and Federal taxes per annum.

• To date, the regional economy has lost $5.3bn due to COVID-19 border closures.

• The region’s international recovery program needs to commence immediately, including the $15m budget commitment and extension of the eligibility for the Export Market Development Grant (EMDG).

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FEDERAL ELECTORATES: KENNEDY, LEICHHARDT

THE ISSUE

Tropical North Queensland (TNQ) is a significant tourism destination for both domestic and international visitors, with the region being the gateway to unique World Heritage assets.

With a tourism industry accounting for 17% of the regional economy, and international tourism representing 7.4%1, the local economy was the most impacted regional tourism economy in the early stages of the COVID-19 pandemic.

COVID-19 has devastated the TNQ tourism industry, and to date the regional economy has lost $5.3bn in Gross Regional Product (GRP) due to border closures. Domestic lockdowns and no international visitors have led to the region losing on average $7m a day, as well as more than 9000 jobs lost. This was one of the primary reasons the labour force in the Cairns SA4 region slumped by 4400* (or -4.9%) people in work in 2021.

This contrasts starkly with other QLD regions like the Gold Coast (+51,600* or 14.2%), Townsville (+8100* or 4.5%), and the Sunshine Coast (+2200* or 0.6%). Prior to COVID-19, annual tourism expenditure in the region was predicted to reach $5bn by 2029.

Prior to the pandemic the region’s tourism businesses paid over $1bn in tax per annum.

Pre-COVID figures showed more than 850,000 international tourists visited the region each year, staying nearly seven million nights and spending $1.1bn annually. This meant that closure of international borders impacted TNQ disproportionately. The international recovery in the region has been slower than predicted, and the re-introduction of international aviation capacity in the region is likely to be slow without a funding boost. Tourism Tropical North Queensland (TTNQ) gained commitment in the March Federal budget to a $15m international recovery commitment. This now needs to be rolled out for the region to thrive – this investment is forecast to generate in excess of $100m in additional visitor spend from 95,000 extra international visitors, supporting close to 1000 new jobs in our region.

BACKGROUND

TNQ stretches from Cardwell to the Torres Strait and west to the Northern Territory border. Pre-COVID-19, TNQ received nearly three million domestic and international visitors annually. This equated to an estimated $3.5bn in annual visitor spend in the year ended March 20201 generating $1bn of tax revenue annually. Two-thirds of the region’s visitor nights are domestic travellers, and one-third international. The visitor economy, made up of holiday, visiting friends and relatives, business events, major events, and education visitors, contributes over 17% of GRP in the region, supporting one in six jobs directly and indirectly.

Over the past decade, the funds available for tourism marketing in the state have not kept pace with the increased level of competition both in Australia and globally, and the impact of global travel restrictions from COVID-19 has seen the visitor economy come to a virtual standstill since March 2020.

A $10m investment in the region’s domestic marketing efforts through the Recovery for the Regions program has generated immediate results. TTNQ has been able to invest these funds to generate over $300m of additional visitor expenditure and $75m in business events leads – flowing through to see the region exceed its 2019 domestic visitor spend by more than $700m.

A $15m investment was committed in the March 2022 Federal Budget to deliver three priority programs – supporting new aviation routes with demand driving, trade and market re-engagement, and lifting the global profile of the Great Barrier Reef.

Cairns Airport is the nation’s seventh busiest in terms of combined international and domestic passenger movements. It has historically handled around 130,000 aircraft and more than 5.2m passenger movements per year. The airport is widely recognised as one of the most significant economic drivers in the Tropical North Queensland (TNQ) region and its facilities are critical pieces of economic infrastructure. With international flights returning to Cairns, there is an immediate need to drive demand to ensure these services are sustained and new services can open.

Rebuilding the supply chain – including sourcing new products and suppliers, attracting new international airline partners, restarting the international cruise ship market, and developing new international source markets – will require significant investment in destination marketing and brand building.

Finally, development of an accelerated reopening pathway with timeframes would allow the industry to be able to plan for the future and give confidence to travellers and the TNQ tourism sector.

The result will be a framework for more sustainable, affordable, and efficient growth, enabling the region to influence population trends rather than respond to them. The strategy will also provide input to the state population plan, complement the Federal Government’s Thrive 2030 visitor economy aspirations and programs to drive new migrants to regional cities, and inform the Queensland Government’s delivery of the National Partnership on the Skilling Australians Fund.

OUR RECOMMENDATION • That the Federal Government immediately enter into an agreement with Tourism Tropical North Queensland (TTNQ) to invest $15m over three years for destination marketing and trade activities to rebuild and source international markets to market the secured aviation routes into the region and boost demand.

• That the State and Federal Governments commit to extend or reset programs, such as the Export Market Development Grants and international trade subsidies, to businesses that have exceeded their timeframe for eligibility, to ensure international trade activities restart and drive the recovery of the region’s $1bn international market.

NEXT STEPS

To drive the recovery of the TNQ tourism industry and wider regional economy, it is vital that there is investment in targeted support that will drive measurable outcomes. The TNQ visitor supply chain has been severely damaged as a result of COVID-19, and 20 years of investment in destination marketing has been disrupted.

1 Tourism Research Australia, 2021

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INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

TABLELANDS ACCESS COUNCILS: CAIRNS, MAREEBA, TABLELANDS STATE ELECTORATES: BARRON RIVER, CAIRNS, COOK, MULGRAVE, HILL, TRAEGER FEDERAL ELECTORATES: KENNEDY, LEICHHARDT

THE ISSUE BRIEFING NOTE SUMMARY • There are four main roads linking Cairns with the Atherton Tablelands: Palmerston Highway, Gillies Range Road, Kuranda Range Road, and Mossman Mt Molloy Road.

• The Kuranda Range Road has already exceeded its capacity of 9500 vehicle movements per day, catering for up to 11,000 daily traffic movements.

On average the road is closed 44 times every year for around 6.6 hours each time.

• The Palmerston Highway connects Innisfail to Millaa Millaa on the Southern Tablelands. It is a critical road to connect the agriculture and mining sectors of Tropical North Queensland with the port of Mourilyan.

• Extending the NLTN from Smithfield to Mareeba will ensure continued economic and social development of the region and will improve national and regional connectivity.

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The road networks linking Cairns with the vital agricultural, mining, and tourism regions of the Atherton Tablelands and beyond are critical enablers of the regional economy. With sizeable growth in both agriculture and mining in the region predicted in the next decade, a safe and reliable road network that enables increased heavy vehicle traffic is vital for economic growth and prosperity in the region. The road network in and out of Cairns acts as the main distribution hub for the region and is essential to further developing the agricultural and mining exports of the region. However, meeting the growing demands for freight has strained existing infrastructure, impacting transport costs and service levels across the supply chain.

There are four main roads linking Cairns with the Atherton Tablelands: Palmerston Highway and Gillies Range Road servicing the Southern Tablelands, and the Kuranda Range Road and Mossman Mount Molloy Road for the Northern Tablelands. Two of these roads, the Palmerston Highway and Kuranda Range Road, are considered priority transport routes for goods to and from the region1. All roads pass through World Heritage-listed areas, increasing the complexity of any potential transport solution.

The Palmerston Highway connects Innisfail to Millaa Millaa on the Southern Tablelands. It is a critical road to connect the agriculture and mining sectors of Tropical North Queensland with the port of Mourilyan. However, it requires significant upgrades to allow road trains to use the route on a regular basis.

The Kuranda Range Road (Kennedy Highway, Cairns/Mareeba section) links Smithfield with Kuranda and is the main coastal gateway to the Atherton Tablelands, Cape York Peninsula, and the Gulf Savannah. It is a critical link for commuter, commercial, and visitor traffic in Tropical North Queensland and a vital strategic corridor linking the Atherton Tablelands, North Tropical Coast, and Cape York to the Cairns Airport and

seaports. The Kuranda Range Road underpins the commercial viability of primary industries, producers, and exporters in the region in providing access to markets through the Cairns air and seaports, and road links to southern markets2.

In recent years, there has been a rapid increase in traffic demand due to growth in tourism, freight movement, and residential development on the Tablelands. FNQROC reports the road is now operating beyond capacity with safety and traffic efficiency now at critical levels for action.

There are other impediments to a safe and efficient transport corridor from Cairns to the Tablelands. The Barron River Bridge on the Kennedy Highway at Kuranda was reduced to one lane and load limited to 50.5 tonnes for a year due to concerns over the safety and stability of the bridge. The State Government in March 2021 announced a $2.1m investigation into long-term solutions for either replacing or rehabilitating the bridge3.

In July 2020, the then Federal Government released the 2019 National Land Transport Network (NLTN) Determination Review, confirming the National Highway A1 would be extended from Cairns to Smithfield. The objectives of an integrated land transport network include improving national and regional connectivity for communities and industry; improving national, regional, and international logistics; and trade and consistency with viable, long-term economic and social outcomes4.

Continuing the NLTN from Smithfield to Mareeba would meet these objectives and ensure the continued economic and social development of the Atherton Tablelands region and beyond.

It would be the next logical step in the network, with Mareeba being the gateway to the region’s agriculture production areas of Atherton Tablelands, Cape York Peninsula, and the Gulf of Carpentaria.

BACKGROUND

In late 2021, the Queensland Department of Transport and Main Roads began a $30m project to upgrade Intelligent Transport Systems (ITS) on the Kuranda Range Road, adding variable message signs, variable speed limits, radar technology (to determine travel times and traffic levels), and closed-circuit television. The department has since completed its $1.6m Cairns to Northern Tablelands Access Strategy, looking at improving the capacity and efficiency of transport routes between Cairns and the Northern Tablelands5. This study investigated current problems and future needs with the aim to determine the most appropriate solutions for the existing routes.

The Access Strategy identified Kuranda Range Road as high significance to the regional economy due to its direct line of access to Cairns CBD, the port, and the airport for traffic and freight. It acknowledged regular road closures related to weather and traffic crashes have significant impacts on the reliability of the corridors and delays to motorists. However, the study also found none of the existing corridors were operating at capacity and modelling had identified major infrastructure upgrades or new alignments were not required in the short to medium term.

The study has recommended an alternative route as a potential long-term solution and that actions to progress this planning should begin.

Despite the Access Strategy’s conclusion, local industry experts and stakeholders firmly believe the road has already exceeded its capacity of 9500 vehicle movements per day, catering for up to 11,000 daily traffic movements. Each year the road experiences an average of 44 closures, each one impacting traffic for as long as 6.6 hours5. The corridor has been the subject of multiple impact assessments and design studies dating back to 2000 but is yet to see any major upgrades other than targeted safety measures. While the need to improve the link and undertake necessary long-term planning was identified in the 2009-2031 Far North Queensland Infrastructure Plan6, more than 13 years on this remains a critical infrastructure project that is yet to secure significant funding.

In the lead up to the 2022 federal election, the ALP committed $210m towards safety and capacity upgrades on the Kuranda Range Road. It is now vital that we see this money in the October 2022 Budget.

NEXT STEPS

To address short-term safety, it is vital that the Federal Government’s $210m commitment is included in the October 2022 Budget, including $21m to undertake a Strategic Assessment of Service Requirements (SASR) and preliminary business case, led by the FNQ Regional Organisation of Councils, to provide much-needed certainty for the project.

There have been 21 years of studies on the Kuranda Range Road with most recommendations not implemented. As a result, safety, capacity, and efficiency issues are now at a critical point. Failure to address this issue has also resulted in constraints on economic development in the region, as evidenced by the now abandoned $600m KUR-World tourism development project. Continued growth in tourism, agriculture, mining, and population on the Atherton Tablelands and beyond mean it is imperative that a solution is developed for access from Cairns to the Tablelands prior to a major crisis.

1 FNQROC (2020), State Government Regional Priorities, Far North Queensland Regional Organisation of Councils (https://www.fnqroc.qld.gov.au/files/media/original/004/d6c/243/58c/State-Delegation-Brief-August-2020Web-V2.0.pdf) 2 FNQROC Kuranda Range Road Far North Queensland Regional Priority August 2019 (https://www.fnqroc.qld.gov. au/files/media/original/004/98d/138/272/FNQROC-Kuranda-Range-Road-August-2019-_DIGITAL.PDF) 3 Cluff R. Government investigates replacement of Barron River Bridge, Tropic Now. 2020 18 Mar. Available from: https://www.tropicnow.com.au/2021/march/18/government-investigates-replacement-of-barron-river-bridge 4 Australian Government Infrastructure Investment Program, What is Infrastructure Investment?, (https://investment. infrastructure.gov.au/about/what_is_infr3astructure_investment.aspx).

5 Department of Transport and Main Roads https://www.tmr.qld.gov.au/projects/cairns-to-northern-tablelands-access-strategy-planning 6 Queensland Government 2009, Far North Queensland Infrastructure Plan 2009 – 2031, https://cabinet.qld.gov. au/documents/2009/feb/far%20north%20queensland%20infrastructure%20plan/Attachments/Final%20FNQ%20 Infrastructure%20Plan.pdf

OUR RECOMMENDATION

• That the Federal Government delivers on its election commitment and includes $210m for Kuranda Range Road in the October Budget, including $21m for a preliminary evaluation and business case to future proof this vital economic corridor.

• That the Queensland Government works with the Federal Government to amend the National Land Transport Act 2014 to extend the national highway designation from its current terminus at the intersection of Captain Cook and Kennedy Highways to the intersection of the Kennedy Highway and the Mulligan Highway.

ESTIMATED PROJECT 2022-2023 2023-2024 COST $210M Recommended Federal Investment Kuranda Range Road Business Case

$21m

Kuranda Range Road Safety Upgrades

$30m

$159m*

*Funding allocated over several years

13

INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

INLAND ROADS COUNCILS: BURKE, CARPENTARIA, DOOMADGEE, FLINDERS, ETHERIDGE, CROYDON STATE ELECTORATES: HILL, TRAEGER FEDERAL ELECTORATE: KENNEDY

BRIEFING NOTE SUMMARY • The Savannah Way stretches for 3700km and is considered one of the top 10 Great Australian Drives, linking Cairns in Tropical North Queensland to Broome in Western Australia’s Kimberley, and delivering $69.8m into the Gulf region annually in drive tourism.

• Segments of the Queensland section of the Savannah Way are unsealed and flood prone, isolating communities during the wet season and limiting the economic value of this northern road link.

• The Kennedy Developmental Road is a key strategic link from northern Australia to the southern freight hubs of Brisbane, Sydney, and Melbourne.

• To realise the benefits of a fully sealed inland road between Cairns and Melbourne, it is critical that funding be provided to complete the remaining 11km of the Kennedy Developmental Road and complete a heavy vehicle safety upgrade at White Cliffs.

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THE ISSUE

The inland roads of Tropical North Queensland (TNQ) are vital to enhancing the productivity of northern Australia, while contributing to the national economy through providing improved connectivity to southern markets1. With the growth in population, employment, tourism, and freight volumes, the safety and capacity issues on these roads will only be exacerbated, resulting in nationally significant productivity losses. It is for these reasons the Gulf Developmental Road (Savannah Way Gulf Section) and the Kennedy Developmental Road were highlighted as priority roads in the Infrastructure Australia Priority list for 20212.

The Savannah Way traverses northern Australia, linking Cairns in TNQ to Broome in Western Australia’s Kimberley. The route is approximately 3700km long, crossing 15 national parks and five World Heritage areas as it traverses across the Top End. Considered to be in the top 10 road trips of Australia, the self-drive tourism market delivers $69.8m annually into the Gulf region3, with 38% of visitors starting the journey in Cairns.

The Gulf section of the Savannah Way (Gulf Developmental Road) takes in 888km from Forty Mile Scrub west of Mt Garnet to the Northern Territory border, with significant sections of the road already sealed. However, there are many substantial sections that require pavement upgrades, bitumen seal, minor realignment of substandard curves, concrete causeways, and four major river crossing upgrades.

The Kennedy Developmental Road is a key strategic link from northern Australia to the southern freight hubs of Brisbane, Sydney, and Melbourne. However, for many years sections of the road remained unsealed, causing safety issues for the locals, tourists, and transport companies that regularly used the road.

To address these concerns, in 2017 under the $600m Northern Australia Roads Program, the Federal and State Governments provided $53.3m

to complete 42km of sealing of the Kennedy Developmental Road between the Lynd and Hughenden, and a 3.4km section of road widening and sealing between Mount Garnet and the Lynd.

A further $50m was secured in 2018 to complete the remaining 48km of the Kennedy Developmental Road. However, with funding now fully expended as of June 2022, there is still a remaining 11km of the highway yet to be sealed. Additional funding support to seal the remaining 11km on the Kennedy Developmental Road as well as a safety upgrade at White Cliffs would accelerate this project to timely completion and finalise an important link for tourism, horticulture, freight, and cattle movement through Queensland’s north and north-west region. This would reduce the cost of transporting cattle which, at times, can cost a third of their final value to transport to market.

The completed highway will be of tremendous economic benefit to the entire Cairns region, providing a direct transport corridor for banana and other fruit growers and primary producers to freight goods from TNQ to southern markets faster and more reliably than the existing Bruce Highway route.

BACKGROUND

1.

Savannah Way (Gulf Section): In recognising the need to seal the Gulf section of the Savannah Way, in 2019 the Federal and State Governments committed $62.5m for road upgrades through the Roads of Strategic Importance – next priorities initiative, along with an additional $31.6m in the March 2022 Federal Budget. This will be spent across various shire councils, with a prioritised list formulated in 2021. Garnet to Carpentaria Shire border section is 510.5km and requires funding to upgrade the road and floodways for reliability and to meet current construction and safety standards for heavy vehicles, tourists, and commuters. Burke Shire to the Northern Territory border is approximately 302km long with less than 50% of the road sealed.

Kennedy Developmental Road: Sealing the road in its entirety is a priority project as it will reduce costs and increase safety for all road users travelling from TNQ to southern parts of Australia. A fully sealed highway would provide a year-round, all-weather route to southern markets for agricultural produce and livestock.

With an expanding population base and rapid growth in agricultural production, the importance of the route for economic, tourism, and critical connection has increased in recent years. Completion of the road sealing would:

2.

3.

4.

5.

Ensure an alternate supply route to TNQ – vital when the Bruce Highway traffic is disrupted due to extreme weather events.

Reduce the cost of transport to market from TNQ, supporting the sustainability of primary production in northern Australia. Using this inland alternative, the distance between Cairns and Melbourne is reduced by 800km, saving 8-10 hours in travel time.

Provide the opportunity for economic development and growth in agriculture (including irrigation), mining, tourism, and freight along with a multitude of employment, lifestyle, and social benefits that will follow.

Enhance Queensland’s road infrastructure, demonstrating the integrated capacity as a catalyst for development in northern Australia.

Enhance supply chains in time of need, providing sovereign capability. Over the course of the Kennedy Developmental Road upgrade, it has been estimated that 130 jobs were created, including Indigenous employment, with more than 100km of highway being sealed.

NEXT STEPS

Savannah Way (Gulf Section): Upgrading the remaining sections is estimated to require at least $39.8m

Inland Roads

annually over 10 years (including the $94.1m already committed). Completing the project over 10 years with annual investments to local councils will allow for incremental improvements on this road and ensure the retention of a local roads workforce. The estimated investment breakdown over 10 years for each local shire is as follows: • Burke Shire to NT Border - ~$64m • Carpentaria Shire - ~$185m • Croydon Shire - ~$78m • Etheridge Shire - ~$71m The project will extend across northwest Queensland, travelling along the Gulf of Carpentaria from Forty Mile Scrub to the Northern Territory border, passing through remote towns including Croydon, Burketown, and Doomadgee in Queensland and connecting to Wollogorang in the Northern Territory.

Kennedy Developmental Road: In the most recent round of government funding of $50m under the Northern Australia Roads Program, the Flinders and Etheridge Shire have completed 21.8km of sealing and widening works with a further 16km currently underway, and a further 12km of sealing works were completed in June 2022. However, the final 11km section of unsealed road on the Hann Highway will not be covered under the current funding agreement. Sealing the remaining section as well as the White Cliffs realignment is expected to cost $25m.

Savannah Way Kennedy Developmental Road

Mareeba

Hells Gate Burketown Doomadgee

Normanton 1

Croydon

Ravenshoe

Mount Surprise

Blackbull Georgetown

Forty Mile Scub 62

Lynd Roadhouse

QUEENSLAND

NORTHERN TERRITORY

Cairns

Atherton

Mount Isa

Cloncurry

Hughenden

Townsville

Charters Towers

1 https://www.northqueenslandregister.com.au/story/5611276/inlandqueensland-road-network-strategy-launched/ 2 https://www.infrastructureaustralia.gov.au/map/queensland-inland-roadnetwork-upgrade 3 Keirle, P, (2018) Gulf Savannah Way Tourism Survey Report, Gulf Savannah Devlopment

OUR RECOMMENDATION • That the Federal and State Governments support the sealing and improved flood resilience of the Gulf section of the Savannah Way by providing project funding, and that allocation of funds be distributed to the controlling Local Government Authorities in equal portions over a 10-year period from 2023-24 onwards.

• That the Federal Government provides $25m to seal the final 11km of the Kennedy Developmental Road and complete the White Cliffs realignment to ensure this key strategic route between Cairns and southern freight hubs is sealed in its entirety.

ESTIMATED 20232024PROJECT COST 2024 2025 $423M Recommended Federal Investment Savannah Way (Gulf $31.84m $31.84m Section) Kennedy $15m Development Road Recommended State Investment Savannah Way (Gulf $7.96m $7.96m Section)

20252026

20262027*

$31.84m $31.84m $10m $7.96m $7.96m

* Funding is ongoing to 2032-2033

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INFRASTRUCTURE TO FORGE OUR FUTURE CAIRNS TNQ REGIONAL PRIORITIES 2022-23

FOOD AND WATER SECURITY COUNCILS: CAIRNS, MAREEBA, ETHERIDGE, COOK, TABLELANDS STATE ELECTORATES: BARRON RIVER, CAIRNS, HILL, TRAEGER FEDERAL ELECTORATES: KENNEDY, LEICHHARDT

BRIEFING NOTE SUMMARY • The ability to meet increased demand for fresh Australian food from North Queensland is at risk due to the lack of a longterm water implementation strategy.

• To cater for growing demand for water, four significant water supply and infrastructure projects are considered essential enablers for the region: Lakeland Area Irrigation Scheme, Cairns Water Security – Stage 1 project, Etheridge Shire Agricultural and Irrigation Precinct Project, and North Johnstone River Diversion Scheme.

• All four projects require the following bilateral commitment and shared investment to facilitate environmental approvals and to progress to construction stage: º $107.5m from the Federal Government to deliver on its election promise and match the Queensland Budget commitment for Cairns Water Security – Stage 1 º Federal and State Governments working together to coordinate development approval processes for Lakeland Irrigation Area Project, including early review of the Mitchell River Water Resource Plan º $2.5m over two years to progress the Etheridge Agricultural and Irrigation Precinct implementation strategy º $7m for a full North Johnstone River Diversion Scheme business case.

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THE ISSUE

Tropical North Queensland (TNQ) has seen sustained population growth over the past 30 years, underpinned by the expansion of industries including agriculture, tourism, fisheries, education, health, and retail.

Throughout COVID, agriculture was a continuing success story for the region and vitally important in driving post-COVID-19 economic recovery.

At the forefront of agricultural growth has been the Atherton Tablelands, driven by the Mareeba Dimbulah Water Supply Scheme (MDWSS) with rapid expansion in high-value crops such as avocados, bananas, berries, and sugarcane.

Water is now 100% allocated1 and 80% used, with purchase prices rising more than four-fold since 2011, peaking at $4000/ML. To address high prices and supply issues on the Tablelands, short- and long-term action is urgently needed. The Queensland Government, via the Regional Water Assessment Program, is currently undertaking a $3m investigation into possible additional water supply and long-term water security across the broader Tablelands region. Sunwater has carried out much-needed improvements in the MDWSS to provide efficiencies in the short term, but the scheme will also need supplementing with extra supply through the proposed North Johnstone River Diversion Scheme.

In addition, agriculture in areas such as the Lakeland district near Cooktown and surrounding the Gilbert River in Etheridge Shire has the potential to expand rapidly through value crops such as bananas, grains, cotton, legumes, and watermelons. Water security has been a concern for a number of years and is now limiting supply in both regions.

Agricultural exports are vital to TNQ with the industry sector output currently valued at $1.6bn2, constrained mainly by factors such as irrigation and access to market. A landmark supply chain study titled Export 2030 – Fresh Food Fast3 was released in June 2020, which highlighted the potential to double high-value food exports through Cairns Airport within a decade.

Urban demand also continues to increase with Cairns’ population growth averaging 0.9% per annum over the past five years4. This, combined with a long-running history of three million tourists visiting TNQ annually (pre-COVID), means an effective and multi-faceted water supply strategy is required to ensure the growing needs of the region can be met. Addressing

this urban need will also reduce the impact on agricultural water supply. In Cairns itself, modelling by the Cairns Regional Council shows that demand for water will outstrip supply within the next five years. As a result, the Cairns Water Security – Stage 1 project is an essential piece of infrastructure to secure urban water supply for Cairns well into the future.

In summary, four significant water supply and infrastructure projects are considered essential enablers for water security and growth in the region: • Cairns Water Security – Stage 1 project • Lakeland Irrigation Area Project • Etheridge Shire Agricultural and Irrigation Precinct Project • North Johnstone River Diversion Scheme.

1. https://www.sunwater.com.au/schemes/MareebaDimbulah/ 2. https://www.abs.gov.au/ausstats/abs@.nsf/ Lookup/by%20 Subject/1001.0~2016-17~Main%20 Features~2015-16%20 Agricultural%20Census~10002 3. https://www.advancecairns.com/project/export2030-delivering-freshfood-fast/ 4. https://profile.id.com.au/cairns/population-estimate 5. https://www.cairns.qld.gov.au/council/projects-and-priorities/ advocacy/security 6. https://alp-assets.s3.ap-southeast-2.amazonaws.com/documents/ ALP_Election_Costing_2022.pdf 7. https://statements.qld.gov.au/statements/95451

BACKGROUND

Water and food security have become priority national policy issues on the back of record drought periods in Australia, as well as disruption to supply chains through COVID-19 and recent flooding. In 2020, the Federal Government committed a further $2bn to the National Water Infrastructure Fund to build resilience in regions and to help grow the agricultural sector. A National Water Grid Authority has also been established to develop investment frameworks. In strengthening the role of northern Australia as a food bowl, substantial feasibility work has progressed in the past three years to explore new agricultural development opportunities. With many of these studies now coming to a close, there are clear priorities for progressing environmental impact and construction activities, and a coordinated approach to development is required.

Cairns Water Security – Stage 1 project: Forecasts indicate that by 2026, the city of Cairns will be at risk of a drinking water shortfall. The Cairns Water Security – Stage 1 project is therefore a critical piece of infrastructure for the city, securing urban water supply well into the next decade. The project was identified as a key priority by Cairns Regional Council’s Water Security Advisory Group (WSAG), with the group highlighting that continued population growth means increased storage capacity is urgently required to access more of the plentiful rainfall the region receives during wet season. To reduce the financial burden on Cairns water users, Council has sought a combined $215 million contribution from the State and Federal Governments ($107.5 million each) towards the project’s capital cost. In its June State Budget the Queensland Government committed $107.5m towards the project to match the pre-election commitment made by Federal

Labor. A confirmed Federal commitment of $107.5m is now required in the October 2022 Budget, delivering an estimated 1658 FTE jobs (direct and indirect) and an estimated $243m in Gross Regional Product (GRP)5 during project construction.

Lakeland Area Irrigation Scheme Project: Regional Development Australia Tropical North, through the National Water Infrastructure Development Fund (NWIDF), funded a preliminary business case that investigated new water storage options to expand the Lakeland irrigation area. Once constructed, the proposed dam will store 200,000ML with a secure output of 80,000ML per annum, irrigating up to 10,000ha of highly irrigable land.

Federal Government funding of $10m to further develop the detailed business case has seen work advance materially with aerial mapping, geological drilling and sampling, and dry season ecology fieldwork all completed. The draft Reference Design was completed in December 2021, while the detailed business case is scheduled for completion late this year. Bilateral government support is now required to further the development approval processes for the project, including accelerating the review of the Mitchell River Water Resource Plan.

Etheridge Shire Agricultural and Irrigation Precinct Project: Etheridge Shire Council, in conjunction with Regional Development Australia Tropical North, proposes to develop an agricultural and irrigation precinct in the Shire. The project aims to establish protocols that facilitate the approval and expansion of agriculture and horticulture across the precinct on a regional basis. As much as 530,000ha of Class A and B soil is potentially available in the Shire, but there are barriers to water access and security. Around 495,000ML of water is available in the Gilbert River catchment area. A $2.5m investment is proposed for an implementation strategy to analyse the best means of accessing

water and irrigating up to 50,000ha of land to diversify crop types and drive economic growth in the area.

North Johnstone River Diversion Scheme: Sunwater completed a preliminary feasibility study in early 2020 indicating the diversion scheme could deliver up 50,000ML annually into Lake Tinaroo. In 2021 the State Government announced a $9m Regional Water Assessment Program for three regions, one of which was the Atherton Tablelands.

The State says the RWA program will ‘set a roadmap for economic growth, building on previous water supply investigations in each region and will take a comprehensive view of local water needs and identify gaps to be filled. The assessments will set out how infrastructure and non-infrastructure solutions can be used to maximise water supply in each area and drive economic growth’. This study must be a catalyst for much-needed investment in water security on the Tablelands. A $7m investment is sought for a full business case into the North Johnstone diversion scheme.

NEXT STEPS

Development of the four proposed water infrastructure projects would meet a range of state and national policy objectives, including: • Expanding northern Australia’s agricultural productive capacity – this is nationally significant given the impact of drought on food and water security in southern Australia.

• Increasing northern Australia’s contribution to GDP through an increase in agricultural production.

• Diversifying northern Australia’s economic capabilities to facilitate investment and reduce reliance on tourism.

• Strengthening Australia’s international competitiveness through proximity to Asia.

OUR RECOMMENDATION • That the Federal Government delivers on its election promise to commit $107.5m in the October 2022 Budget towards the Cairns Water Security Stage 1 project.

• That the State and Federal Governments work together to facilitate and coordinate the development approval processes for the Lakeland Irrigation Area Project.

• That the Federal Government provides $2.5m over two years for the Etheridge Shire Agricultural and Irrigation Precinct Project implementation strategy.

• That the Queensland Government gives consideration to an early review of the Mitchell River Water Resource Plan.

• That the Queensland Government completes and releases its Regional Water Assessment for the Atherton Tablelands by early 2023, and applies to the National Water Infrastructure Development Fund for $7m for a full business case for the North Johnstone River diversion scheme.

•

ESTIMATED PROJECT COST $230M

2022 - 2023 - 2024 - 2025 2023 2024 2025 2026

Recommended Federal Investment Cairns Water Security - Stage 1 project6

$10m

Etheridge Shire scoping study

$1.5m

North Johnstone Business Case

$7m

$43.8m

$53.8m

$1m

Recommended State Investment Cairns Water Security - Stage 1 project7

$55m

$52.5m

17

FAST FACTS

CAIRNS CITY HAS GROWN AN AVERAGE OF

CAIRNS CITY POPULATION

REGIONAL POPULATION

168,853 281,094

1.12%

EACH YEAR OVER THE PAST DECADE

CAIRNS IS THE FOURTH LARGEST REGIONAL CITY IN QUEENSLAND AND THE ELEVENTH LARGEST IN AUSTRALIA

L

ocated in the heart of Tropical North Queensland, Cairns is the hub of a diverse and innovative economy and offers a quality of life appreciated by a consistently growing population.

Uniquely located between two World Heritage-listed sites – the Great Barrier Reef and the Wet Tropics Rainforest – the region is more than simply a worldclass tourist destination.

It is fast becoming known for its tropical expertise in health, agriculture, maritime, marine science, construction, and education.

The region is well connected to the rest of Australia with direct airline links to major capital cities as well as a growing number of key international routes from the Tropical North.

The past decade has seen a considerable diversification in the workforce with health and allied industries emerging strongly as the largest employing sector and predicted to account for up to one in three new jobs over the next five years.

Education & training has also enjoyed significant growth, along with construction.

TROPICAL NORTH QUEENSLAND BOASTS A

TOP 3 GROWTH SECTORS

2016/172020/21

An analysis of jobs held by the TNQ Regional workforce in 2020/2021 shows the five largest sectors were:

$17.03B

GROSS REGIONAL PRODUCT

+37.2% WHOLESALE TRADE +30.4% HEALTH CARE & SOCIAL ASSISTANCE

+25.4% CONSTRUCTION OUTPUT BY INDUSTRY SECTOR $M

20/21%

Construction

3,870.9

12.3

Agriculture, Forestry and Fishing

3,116.0

9.9

Manufacturing

2,737.8

8.7

Health Care and Social Assistance

2,580.0

8.2

Rental, Hiring and Real Estate Services

2,377.7

7.6

Transport, Postal and Warehousing

2,161.0

6.9

Public Administration and Safety

1,839.8

5.8

Accommodation and Food Services

1,686.3

5.4

Professional, Scientific and Technical Services

1,439.7

4.6

Mining

1,339.3

4.3

12,508 (9.4%)

Education and Training

1,338.1

4.3

Retail Trade

1,296.6

4.1

RETAIL TRADE

Electricity, Gas, Water and Waste Services

1,200.8

3.8

Financial and Insurance Services

1,003.9

3.2

Administrative and Support Services

934.2

3.0

Wholesale Trade

916.7

2.9

Other Services

908.2

2.9

Arts and Recreation Services

462.4

1.5

HEALTH CARE & SOCIAL ASSISTANCE

19,394 (14.6%)

ACCOMMODATION & FOOD SERVICES

13,505 (10.1%) CONSTRUCTION

12,380 (9.3%) EDUCATION AND TRAINING

11,312 (8.5%) These five industries accounted for 69,099 people, or 52% of the total TNQ Regional workforce.

INDUSTRY

Information Media and Telecommunications Total Industries

244.0

0.8

31,453.4

100.0

Source: Far North Queensland Regional Organisation of Councils, Economic and Community Profiles (.id - the population experts), Australian Bureau of Statistics Regional Population Growth

19

ADVANCE CAIRNS

ADVANCE CAIRNS

THE COMMITTEE FOR TROPICAL NORTH QUEENSLAND

THE COMMITTEE FOR TROPICAL NORTH QUEENSLAND

OUR REGION ONE VOICE

OUR REGION ONE VOICE

c o n t a c t : N i c k Tr o m p f e:nicktrompf@advancecairns.com p:07 4080 2900