A PRODUCTIVITY Commission review of regional economies should attack “sacred cows” like whether frogs should be allowed to halt the development of dams in regional Australia, says Nationals leader Barnaby Joyce.
Mr Joyce was commenting today after the Coalition government announced a new review of regional economies to be undertaken by the Commission.
An initial report is due to be provided to the federal government in April 2017 and a final version within 12 months.
Federal Treasurer Scott Morrison said the Australian economy’s transition away from the resources-led boom towards broader-based growth was presenting different challenges and opportunities for Australia’s regions.
He said in order to develop a better understanding of that situation the government had provided the Commission with terms of reference to commence a study on the impact of the transition, on regional economies.
“While Australia continues to benefit from strong commodity export growth and a transition to broader-based growth is underway, there are some parts of Australia doing it tougher than others,” he said.
“At the same time, our economy is reconciling the impacts of globalisation and technological change and the Turnbull government wants to ensure that Australians are not being left behind.
“By its nature, the transition will vary around the country - it will create considerable growth and prosperity in some regions, while presenting challenges for others.
“The study will help to determine how well different regions are adapting to the transition and the factors which influence their capacity to adapt to changes in economic circumstances and to identify those regions most at risk of failing to adjust.”
Mr Morrison said public consultation would be undertaken as part of the study and he wanted to promote regional economies that were able to be self-sustained rather than relying on subsidies.
Mr Joyce and his party’s deputy-leader and Regional Development Minister Fiona Nash both welcomed the Commission’s inquiry into regional economies.
Mr Joyce said it showed the role his party played in government to develop, decentralise and drive growth in regional Australia.
"I hope the Productivity Commission shoots a few sacred cows, for instance - should frogs stop the development of dams in regional Australia?” he said.
“When we build dams, and we do, we have the Greens stand up and say ‘you can’t because of a frog or you can’t because of a moss or you can’t because of some other basic reason that they come up with that we must stay where we are’.
“We want the Productivity Commission to basically say, ‘this really does stimulate economic growth; it really does move regional people ahead; and in the long term will give them long term prosperity’.
“We want them to deal with the sacred cows that have developed over the last couple of decades that are precisely against regional development and where we get sucked up into this view where people say, ’If it happens in the regional areas it’s pork barrelling (but) if it happens in Sydney or Melbourne it’s just good policy (or) if it stays in Canberra its good policy but if it moves to a regional area that’s bad’.”
Senator Nash said Australia's cities existed because of the regions which were responsible for 67 per cent of national exports, 45pc of domestic tourism, most food production and all production of the gas and electricity which powered city households.
“Regional Australia supplies the milk which city people put on their breakfast, the cheese which goes on their toast, the toast itself, the meat and vegetables most people eat for dinner and the fruit and cream they have for dessert, as well as most materials for the house they’re eating it in,” she said.
“Investing in regional Australia is like maintaining your car's alternator.
“You can ignore the alternator but if it stops working, your battery won't charge and your car won't start.
“When we invest in the regions, it gives them confidence and local business invests too, knowing government sees a future for the region.
“In the cities, multi-billion-dollar government investment is assumed into things like public transport.”
The two ministers said the new review would complement many other initiatives already in place or being rolled out, to continue to grow and diversify regional economies.
They highlighted Coalition programs in areas like health, education, regional infrastructure such as the inland rail and upgraded mobile phone towers, competition law reforms and changes to Country of Origin labelling laws.
Mr Joyce said after release of the government’s Agricultural White Paper, 2016-17 had provided the “biggest amount of farm production in the history of our nation” at over $60 billion.
“This is all part of a vision that delivers,” he said.
“This is a government at work.
“This is a government actually making sure that we get the returns - we get record returns - and we try to make sure that we do everything in our power so it is invested back into the farm and invested back into the fabric of towns.”
Mr Joyce said the Commission’s review showed the Coalition’s “impetus” for developing regional Australia in areas like building dams throughout the nation and the inland rail, while relocating agencies like the Australian Pesticides and Veterinary Medicines Authority (APVMA) and the Grains Research and Development Corporation from Canberra into regional areas.
He said Canberra’s development had been government policy with nothing there before-hand.
But every time his government talked about regional development – with the “classic” being the APVMA’s move to Armidale – critics say “that’s just pork barrelling”, he said.
“We have so much potential in this nation and it’s great to be part of a government that from top to bottom, and left to right within it, wants to make sure that the development of our nation doesn’t just happen in the cities but it happens in regional economies as well,” he said.
Mr Joyce said he looked forward to the Commission delivering an unbiased and “cold and clinical view” on how the government stimulate further economic development, with its inquiry into regional economies.