ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury

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ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
ADVANCE
                                                 CAIRNS
                                                    OUR REGION ONE VOICE
                                THE COMMITTEE FOR TROPICAL NORTH QUEENSLAND

CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
FROM THE CHAIRMAN
                                                NICK TROMPF

                    Forge / forge                         (vb.)
                                              to create (something) strong, enduring or successful.
                                                                                                                                     Oxford Dictionary

             HOW THE FEDERAL BUDGET CAN BUILD RESILIENCE                                      •          Rebuilding international tourism via $30m for
             FOR CAIRNS TNQ                                                                   aviation attraction, $40m for destination marketing and
                                                                                              $10m for security upgrades at Cairns International Airport
             Against the backdrop of the ongoing global pandemic,
             leaders of business and industry in the Cairns region                            •         Ensuring urban water security and opportunity for
             have developed an integrated series of initiatives to drive                      agricultural growth through $250m+ investment
             renewal, resilience and greater diversity in the far north’s
                                                                                              •         Further upgrading capacity and connectivity of the
             economy.
                                                                                              region’s key roads, as well as a strategic recommendation
             This year’s Federal Budget will be pivotal in bringing to life                   to extend the National Highway A1 from Cairns’ northern
             central elements of this Forging a Brighter Future plan.                         suburbs to the Atherton Tablelands
             With COVID-19 continuing to disrupt key sectors such as                          We readily acknowledge the considerable investment by
             tourism and hospitality for a considerable time ahead, the                       the Federal Government in the far north in recent years
             integrated plan in this document provides opportunity for                        – highlighted by more than $1.5bn in road construction
             renewal.                                                                         underway, along with a host of other support measures such
                                                                                              as JobKeeper.
             Opportunity for the Federal Government to build on its
             already significant support by providing further backing for                     Despite this Federal support, the adverse impacts of
             catalytic infrastructure and policy reform.                                      COVID-19 on this region are starkly illustrated by a slump
                                                                                              in the Cairns labour force, which has shrunk by 4400* (or
             And opportunity for the private sector to invest heavily off
                                                                                              -4.9%) people in work. This contrasts starkly with other QLD
             the back of this government support, in both existing and
                                                                                              regions like the Gold Coast (+51,600* or 14.2%), Townsville
             emerging industries.
                                                                                              (+8100* or 4.5%) and the Sunshine Coast (+2200* or
             Central to this plan is creating jobs - in traditional & advanced                0.6%).
             manufacturing, health & allied industries, ground-breaking
                                                                                              Regardless, business and industry leaders are absolutely
             research, education, primary production & processing and
                                                                                              confident the long-term future for Cairns TNQ is bright –
             civil construction.
                                                                                              and we look forward to the Federal Government providing
             Defence is as a centrepiece, given heightening geopolitical                      much-needed, immediate impetus through investments
             tensions in the south-west Pacific region, and the fact that                     outlined in this plan.
             Cairns is home to Queensland’s only Navy base.
             A brighter future will be forged for Cairns TNQ through with
             Federal Budget support for the following:
             •         Building sovereign Defence capability through
             transforming the Cairns port and expanding HMAS Cairns,
             including a new $300-$400m common user facility
             •         Addressing actuate skills shortages through a
             $50m new CBD campus for CQUniversity plus 80 CSPs in
             medicine across James Cook University campuses in Cairns,
             Townsville and Mackay

*Source: Conus Consulting/ABS monthly labour market indicators February 2020-September 2021
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
INFRASTRUCTURE & POLICY PRIORITIES
THE OPPORTUNITIES SUMMARISED BELOW ARE PIVOTAL TO HELP CAIRNS TNQ REBOUND FROM
THE DEVASTATING ECONOMIC IMPACTS OF COVID-19 AND, IMPORTANTLY, CREATE MUCH-NEEDED
DIVERSIFICATION AND RESILIENCE IN THE REGION’S ECONOMY.

 INFRASTRUCTURE                                                    POLICY

                CAIRNS MARINE PRECINCT - P4                                 REGIONAL HEALTH PLANNING - P18
                Federal/State funding to fund construction                  $6m Federal funding palliative care hospice
                of Common User Facility; $24m Federal                       and $10.5 million State recurrent operational
                funding slipways; $155m HMAS Cairns;                        funding; Federal/State (50:50) funding chronic
                                                                            condition care facility; 80 extra CSPs JCU
                $28m State funding new wharves.
                                                                            medical school.

                EDUCATION & RESEARCH - P6                                   SPECIALIST BOAT BUILDING - P20
                $50m Federal funding new CQUniversity CBD                   Cairns be recognised by Federal Government
                                                                            as a high priority alternative for specialist boat
                campus; $11.2m Federal funding Great Barrier                building; State and Federal Governments
                Reef International Marine College; 80 additional            commit to working with SeaSwift to ensure
                places JCU medical school.                                  their vessel upgrades occur in Cairns.

                CAIRNS AIRPORT - REBUILDING                                 TNQ TOURISM RECOVERY FUND - P22
                AVIATION - P8                                               $40m Federal funding destination marketing,
                                                                            cruise shipping, domestic & international
                $10m Federal funding infrastructure
                                                                            airline partner support; State and Federal
                upgrade Cairns Airport; $20m joint funding                  Government detailed roadmap to reopening
                aviation attraction.                                        international tourism into QLD and Cairns.

                FOOD AND WATER SECURITY - P10                               PACIFIC ENGAGEMENT - P24
                State and Federal Governments facilitate DAs                Operational headquarters in Cairns for
                Lakeland Irrigation Area Project; $215m Federal/
                                                                            DFAT Office of the Pacific; Cairns designated
                State (50:50) Cairns Water Security - Stage 1;
                $2m Federal funding Etheridge Shire Irrigation              Australia’s northern hub for Step-Up to the
                Project; $7m from NWIDF business case North                 Pacific.
                Johnstone River diversion scheme.

                COASTAL ROADS - P12                                         FRANCHISE REFORM - P26
                Federal funding $527m Cairns Ring Road;                     Broaden automotive franchisee protections
                State funding $132m Cairns Ring Road;                       to cover all motor vehicle categories;
                strategic transport plan linking Cairns-                    extend some or all of these protections to
                                                                            other franchisee categories.
                Townsville.

                TABLELANDS ACCESS - P14                                     FUTURE GROWTH - P28
                Extend National Highway A1 from Smithfield                  $80m joint State and Federal funding
                to Mareeba; $20m Federal/State (50:50)                      for the Strategic Integrated Urban
                funding Kuranda Range Rd business case;                     Development and Transport Plan.
                State to follow up on findings from Cairns to
                Northern Tablelands Access Study.

                INLAND ROADS - P16                                          ENHANCING URBAN LANDSCAPES - P30
                $398m State and Federal funding over 10                     $29.4m Federal Government commitment to
                years Gulf Savannah Way; $25m Federal                       implementing the Enhancing Natural Urban
                funding to complete upgrade Kennedy                         Landscapes - from Rainforest to Reef initiative.
                Developmental Road.

                                                                                                                                 03
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
INFRASTRUCTURE TO FORGE OUR FUTURE
                    CAIRNS TNQ REGIONAL PRIORITIES 2022-23

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

                                            THE ISSUE                                              Pacific engagement, signalling a key
                                                                                                change in Australia’s Defence posture as it
BRIEFING NOTE                                   The Cairns Marine Precinct (CMP) is
                                                                                                prioritises the Indo-Pacific region.
SUMMARY                                      a critical enabler of the Tropical North
                                                                                                   Under the Security of Critical Infrastructure
                                             Queensland (TNQ) economy, supporting
• The Cairns Marine Precinct                                                                    Act (2018), the Cairns port is a critical national
                                             Australia’s strategic Defence and foreign
  is vital for the economic                                                                     infrastructure asset. The port includes HMAS
  diversification of the Tropical            policy initiatives, as well as border and
                                                                                                Cairns, Australia’s most northern naval
  North Queensland region                    fisheries, tourism, and maritime trade
                                                                                                base on the eastern seaboard, and it plays
  that has been hard hit by                  operations. The precinct is home to a
                                                                                                a key strategic role in Australia’s northern
  COVID-19.                                  large and diverse marine sector with 1603
                                                                                                naval capability. In acknowledging this
                                             commercial vessels across tourism, fishing
• Cairns is a strategic port                                                                    role, in 2017-2018 the Federal Government
                                             and shipping, and cruising yacht sectors,
  for Defence. The Navy                                                                         committed to upgrading the precinct through
                                             in addition to several Royal Australian Navy
  has announced it requires                                                                     staged investment.
                                             (RAN) and Australian Border Force (ABF)
  its planned Regional                                                                             There is unmet and growing demand
                                             vessels. The precinct also hosts superyachts
  Maintenance Centre (RMC)                                                                      in naval, commercial and superyacht
                                             and cruise liners visiting the Pacific. COVID-19
  North-East in Cairns to begin                                                                 maintenance opportunities that supports a
                                             exposed the fragility of Cairns’ tourism-based
  operating by 2022 – the first of                                                              step change in ship sustainment capacity
                                             economy, and the continued growth of
  four new RMCs in Australia.                                                                   in the CMP. As outlined in Table 1, this
                                             the Marine Precinct is critical for economic
                                                                                                investment needs to cater for larger vessels
• The Federal and State                      diversification in the region. A sustainable
                                                                                                (up to 120m), have ship-lift capacity of
  Governments work together                  marine capacity to ensure that both strategic
                                                                                                3500-5000 tonnes, provide up to 350m
  to deliver a $300-$400m                    Defence priorities and industry needs are
                                                                                                of extra wharf, see multiple large vessels
  Common User Facility                       met is vital to provide growth and jobs for the
  as a centrepiece of fully                                                                     simultaneously in dry dock, and allow
                                             TNQ region.
  developing the precinct                                                                       considerable extra land for sustainment
                                                Over the past few years, growing tensions
  infrastructure and tomorrow’s                                                                 activities.
                                             between the United States and China have
  workforce.                                                                                       The State Government business case
                                             elevated the strategic importance of the
                                                                                                released in January 2022 has identified
• A commitment is needed to                  Pacific, and Australia is now more than ever
                                                                                                necessary infrastructure and skills
  provide long-term continuous               a frontline player in terms of engagement
                                                                                                requirements to ensure future growth
  sustainment programs and to                and development of the region. Australia’s
                                                                                                and development in the precinct. This
  support the re-development                 Step-Up to the Pacific program, which sees
                                                                                                includes a common user facility, accessible
  of ship and boat building in               engagement in the Pacific as one of the
                                                                                                by all shipyards. It is essential that a $300-
  the precinct.                              highest priorities of Government, is tied to the
                                                                                                $400m commitment to fund the required
                                             2017 Foreign Policy White Paper and commits
                                                                                                infrastructure is made by both the Federal and
                                             Australia to a more ambitious level of
                                                                                                QLD Governments.
                                                                                                   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 the 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
Pictured: The proposed Common User Facility for the Cairns Marine Precinct.                     training pathways.

04
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
BACKGROUND                                         commitments of servicing vessels from HMAS
                                                                                                                NEXT STEPS
The Cairns region has the largest marine                                                                            To ensure further growth and job
                                                   Cairns, Darwin, the United States, and the                    creation in the region, to attract greater
services sector in Northern Australia, and has
                                                   Pacific Islands.                                              private investment, and to enable Defence
a skilled, year-round permanent marine and
                                                      The State Government business case                         to achieve their strategic goals, the
engineering workforce of 4600 across 270
                                                   (released January 2022) highlights that one                   following commitments for the Cairns
organisations.                                                                                                   Marine Precinct are needed to facilitate a
                                                   in six vessels in Australia over 15m – and four
   In 2017 the Federal Government committed                                                                      transformation in the overall capacity and
                                                   in five NQ registered vessels – are serviced in
to a Phase 1 $24 million investment into Ports                                                                   capability of the precinct:
                                                   Cairns. The business case also highlights the                 • $300-$400m Federal/State investment
North Leaseholds to enhance and modernise
                                                   existing shipyards are at or near capacity and                in infrastructure and support as outlined by
the three shipyards within the Cairns Marine
                                                   that future demand will not be met with current               the Cairns Marine Precinct business case
Precinct. In 2020, the State Government
                                                   capabilities.                                                 released in January 2022.
committed $28M for increased wharf capacity                                                                      • A commitment from Defence to provide
                                                      Without a significant step-up in infrastructure
as well as $2M for the detailed business case                                                                    additional vessels in Cairns and long-term
                                                   and capability at the Cairns Marine Precinct,
to inform a step-change within the precinct.                                                                     continuous maintenance and sustainment
                                                   existing operators may not be able to compete
   The CMP is Australia’s maintenance centre                                                                     programmes.
                                                   for all future sustainment contracts, and/or                  • Support for ongoing innovation and
for the RAN’s hydrographic vessels as well as
                                                   maintain or grow their business. This will result             re-establishment of a boat and small ship
Australian Border Force Cape Class vessels. It
                                                   in a potential decline in market share and                    building industry in the precinct.
has serviced the Defence, Border Force, and
                                                   loss of economic opportunity, while overall                   • Consideration of a virtual sustainment
marine industries for many years and, as home                                                                    college through the Great Barrier Reef
                                                   regional activity levels in allied industries
to Fleet Base Pacific (HMAS Cairns), is one                                                                      International Maritime College. The
                                                   will also sharply decline. The objectives of
of the few ports in Australia that can offer the                                                                 College will develop and deliver agile
                                                   the Defence Industrial Capability Plan are to                 micro credentials that meet future Defence
Department of Defence significant expansion
                                                   broaden, deepen and grow the industrial base                  sustainment demands (see Education &
opportunities in berth and land facilities. RAN
                                                   of Defence to enhance Australia’s national                    Research priority).
is currently undertaking long-term planning for
                                                   security.
HMAS Cairns, and, in conjunction with Ports
North Master Planning and the marine precinct
business case, are looking at expansion of          INFRASTRUCTURE                  SHORT TERM                                   LONGER TERM
the current site as well as future purpose and      Capability (vessels)            Vessels to 120m LOA -                        Vessels 150m to 175m LOA –
requirements for the base.                                                          homeported RAN fleets and majority of        majority RAN fleet/maximal commercial
                                                                                    regionally based commercial vessels          vessel opportunities
   The CMP will be the first of four new
                                                    Lift out capacity (shiplift/    3500 to 5000 tonnes capacity                 8000 tonnes capacity
Regional Maintenance Centres (RMCs) for the         dock)
Royal Australian Navy (RAN) as part of Plan         Berth length                    3 to 4 vessels at any one time; additional   800m to 1km of quayside, separate
Galileo. The RMC North-East will provide a                                          berth of 150 – 350m                          superyacht berth facility comprising
                                                                                                                                 floating pontoons
national naval sustainment and maintenance
                                                    Extra yard and warehouse        3 to 4 vessels up to 120m LOA; 5 hectares    6 – 8 hectares of additional land for
hub, enabling the CMP to build on its present       facilities, plus out of water   of additional land + SPMT corridors;         vessel lay down purposes, separate
                                                    capacity                        additional paint/blast workshops; ability    landside areas for superyacht
                                                                                    to sub-divide land areas for a security/     maintenance and refits (up to 3
                                                                                    ship type purposes                           hectares)

OUR RECOMMENDATION
                                                                                    ESTIMATED
• That the Federal Government commits to deliver the outcomes of                    PROJECT COST                     2021 -        2022 -        2023 -         2024 -
  the Cairns Marine Precinct expansion project business case with                                                    2022          2023          2024           2025
                                                                                    $607M
  investment as outlined in the Cairns Marine Precinct business case.                FUNDING REQUIRED
• Defence investment in HMAS Cairns, including a commitment to
                                                                                    Construction of Common
  base and sustain additional vessels in Cairns.                                    User Facility in CMP                  -        $30M           $50M          $100M
• That the Federal Government commits $24 million for stage 2                       (Federal/State)
  capacity increases within the three existing shipyards, in time for               Stage 2 shipyards request
  the Regional Maintenance Centre North-East starting operation in                  (Federal)                                      $24m
  2022.                                                                              FUNDED, DELIVERY
• That the Queensland Government supports and facilitates the
                                                                                     HMAS Cairns infrastructure      $20m           $50m          $45m          $40m
  Federal expansion of HMAS Cairns, ensuring the Department of                       (Federal)
  Defence delivers on the initial $155 million upgrade of the navy
                                                                                     CMP wharf improvements
  base by 2025.                                                                      (State)
                                                                                                                     $28m
• That the QLD Government $2m business case be completed by
  end of 2021 and the $28 million for early works to deliver in-water
  maintenance berths for the Cairns Marine Precinct expansion be
  constructed by the end of 2022.

                                                                                                                                                                         05
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
INFRASTRUCTURE TO FORGE OUR FUTURE
                     CAIRNS TNQ REGIONAL PRIORITIES 2022-23

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

                                      THE ISSUE                                           premises across Cairns. The proposed new
                                                                                          campus will allow the consolidation of these
BRIEFING NOTE                            Tropical North Queensland has a dynamic
                                                                                          sites.
                                      and vibrant education sector with two
SUMMARY                               universities, six TAFE campuses, 35 secondary
                                                                                             TAFE Queensland: The Great Barrier
• Tropical North Queensland’s                                                             Reef International Marine College (GBRIMC)
                                      schools, and a number of private language
  education sector includes two                                                           continues to grow and expand its range of
                                      and business schools. In 2019/20, nearly
  universities, six TAFE campuses,                                                        innovative marine training capabilities. With
                                      13,000 people were employed in education
  35 secondary schools, and                                                               the growth in Cairns as a strategic marine
                                      and training in TNQ, contributing $900M to
  private language and business                                                           defence hub and a renewed focus on the
                                      the economy, an increase of 200% in 5 years1.
  schools.                                                                                Pacific as part of the Step-Up to the Pacific
                                      The region is shifting towards a knowledge-
• Youth unemployment sits at                                                              programme, the Department of Defence
                                      based economy, which has implications for
  12.6% and the region faces a                                                            awarded the contract for Pacific Maritime
                                      educators and regional training facilities. To
  skills shortage in health, allied                                                       Training Services (PMTS) to TAFE Queensland
                                      accommodate the shift, the sector has invested
  health, aviation, and a number                                                          and the GBRIMC in March 2021. This
                                      hundreds of millions of dollars in infrastructure
  of other STEM professions.                                                              programme will enable GBRIMC to provide all
                                      in recent years, and a number of additional
                                                                                          technical and non-technical training, as well as
• Two key infrastructure projects     projects are flagged for investment.
                                                                                          pastoral care services to Pacific Island Country
  have been identified to address        With a strong student base now established,
                                                                                          crew who have been gifted Guardian Class
  regional skills shortages,          CQUniversity (CQU) and James Cook University
  with $50 million sought for a                                                           patrol boats from the Australian Government,
                                      (JCU) continue to grow in the Cairns region.
  permanent new CQUniversity                                                              estimated to be 320 crew annually.
                                      Through collaborative partnerships and to
  campus in the Cairns CBD and                                                               JCU: Building on 30 years of commitment
                                      address current gaps in education pathways,
  $11.2M for the Great Barrier                                                            to Cairns and the Far North, James Cook
                                      the two universities are working to build
  Reef International Marine                                                               University proposes to expand Cairns-based
                                      capacity across a range of industries and
  College expansion.                                                                      activity to ensure that students can study a
                                      community initiatives.
                                                                                          full medical degree in Cairns. Currently, JCU
• The CQU campus project is              CQU: Since commencing on-campus
                                                                                          only offers years 1-6 of its medical degree in
  shovel-ready and will create an     delivery in Cairns in 2016, CQU Cairns has
  estimated 330 jobs (direct and                                                          Townsville, while Cairns is limited to years 4-6.
                                      experienced more than 20% year on year
  indirect) during construction                                                           This means that future medical students are
                                      growth2. Given this, it has outgrown its current
  and contribute $549 million to                                                          required to leave Cairns to commence their
                                      premises and requires new purpose-built
  the regional economy over 10                                                            studies elsewhere. Research has shown that
                                      facilities. As part of its 2019 Community Impact
  years. The project will address                                                         once students leave regional areas they often
                                      Plan, CQU has a shovel-ready project to build
  current skills shortages in                                                             do not return. It is vital that Cairns and TNQ
                                      a permanent new CQU Cairns CBD campus
  allied health, engineering, and                                                         retain their local talent in the region and have a
                                      ($50M for construction/fit out).
  technology.                                                                             full year 1-6 medical program.
                                         CQU currently operates from four leased
• Regional medical shortages
  will also be addressed by James
  Cook University by establishing
  a complete medical school in
  Cairns, with support sought for
  80 designated Commonwealth
  Supported Places for domestic
  students, enabling students to
  complete JCU’s full Bachelor of
  Medicine, Bachelor of Surgery
  program in Cairns.

  06
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
BACKGROUND                                                                                           pre-loading, construction of new
                                                                                                     classrooms, and a simulator suite.
     The TNQ region has an estimated
resident population of 286,873 and
population growth of 1.1% per annum. The
attainment of a university degree in Cairns
is 54% lower than the national average at
14.3%, while 8.5% of residents have an
Advanced Diploma or Diploma and 22.9%
have a Vocational Certificate, on par with
the rest of the state3.
    In September 2021, the youth (15-24
years) unemployment rate stood at 11.7%4.
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.
                                                     hub precinct in the Cairns CBD. The            pre-loading, construction of new
    Nationally over the next five years, an
                                                     close proximity to the Convention              classrooms, and a simulator suite. The
additional 85,000 health workers and
                                                     Centre provides an important link for          cost of this extension is expected to
28,000 educators will be needed to fill
                                                     conference organisers and allows for           be $11.2 million. This extension will
jobs in regional areas. COVID-19 has also
                                                     greater co-operation with regard to            allow the provision of services to the
exacerbated shortages in other sectors
                                                     facilities and human resources such            320 PMTS students expected each
in Cairns, most notably engineering.
                                                     as the employment of students for              year as well as catering for the growth
Engineering is ranked as one of the major
                                                     events. Most importantly, the new              in Defence and other marine training,
skills shortages nationwide, and this
                                                     campus will address the significant            following the commencement of the
shortage is greater in regional areas. To
                                                     skill gaps identified in the region,           Regional Maintenance Centre for
fill this need, the importance of regional
                                                     particularly in terms of allied and            Defence in 2022.
universities cannot be overstated with
                                                     mental health, engineering, and             3. To support the training and recruitment
more than 65% of employed regional
                                                     technology. The allied health courses          of Cairns-based clinicians, JCU
university graduates remaining in regional
                                                     will be supported by the establishment         requires an additional 80 designated
areas on completion of their studies5.
                                                     of on-campus health clinics staffed            Commonwealth Supported Places
                                                     by supervised student practitioners.           (CSP) recurrent for the JCU Bachelor of
NEXT STEPS                                           The project is shovel-ready and will           Medicine, Bachelor of Surgery (MBBS)
  In addressing youth unemployment and               generate an estimated 330 jobs                 program. This will allow JCU to offer
preparing the region’s workforce for the             during construction (80 direct), plus          Years 1-6 of the MBBS in Cairns.
future, the following four projects have             more than 300 direct jobs through
been identified as essential enablers.               expanded university operations and              Source:
1. CQU seeks $50 million to establish a              staff and student expenditure in the
                                                                                                     1 https://economy.id.com.au/cairns/output-by-indus-
                                                                                                     try?StartYear=20190932
   permanent, purpose-built CBD campus               region. The economic impact over 10             2 https://www.tropicnow.com.au/2020/october/14/
   capable of accommodating 4,000+                   years will be around $549 million6.
                                                                                                     cqunis-push-for-new-cbd-campus-picks-up-steam
                                                                                                     3 https://quickstats.censusdata.abs.gov.au/census_ser-
   students by 2030. Due to the proposed          2. TAFE Queensland, following                      vices/getproduct/census/2016/quickstat/306
                                                                                                     4 Regional youth unemployment, Sep 21 (qgso.qld.gov.au)
   location adjacent to the Cairns                   preliminary design and planning                 5 ACER JTD Research briefing (2011) Higher education and
   Convention Centre, the new campus                 work, seeks to undertake a facility
                                                                                                     community benefits: The role of regional provision Volume
                                                                                                     1, number 5 .
   will complement existing infrastructure,          extension to the GBRIMC campus,                 6 Cummings, W. Economic and Socio-Economic Impact
   effectively creating a knowledge                  with site stabilisation works including
                                                                                                     Analysis: Proposed Development CQUniversity Campus
                                                                                                     May 2020 p16.

 OUR RECOMMENDATION
 • That the Federal Government invests $50M to establish a                 ESTIMATED                              2021 - 2022
   new CBD campus for CQU.                                                 PROJECT COST
 • That the Federal Government supports the expansion of
                                                                                                CQUniversity         JCU Medical       TAFE Queensland
   the GBRIMC with an investment of $11.2 million, to enable                                    CBD Campus             School              GBRIMC
   training for the Pacific Patrol Boat training programme and             Recommended
   other Defence and marine requirements.                                  Federal Investment     $50M              80 additional           $11.2M
                                                                                                                        CSPs
 • That to support the training of a regional medical workforce,
   the Federal Government allocates an additional 80
   Commonwealth Supported Places recurrent, plus an
   allocation of Destination Australia scholarships to JCU’s
   School of Medicine and Dentistry.

                                                                                                                                                           07
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
INFRASTRUCTURE TO FORGE OUR FUTURE
                   CAIRNS TNQ REGIONAL PRIORITIES 2022-23

CAIRNS AIRPORT – REBUILDING AVIATION
     COUNCIL: ALL TNQ STATE ELECTORATE: ALL TNQ FEDERAL ELECTORATES: KENNEDY, LEICHHARDT

BRIEFING NOTE
SUMMARY
• COVID-19 has had a
  disproportionate impact on
  the Far North Queensland
  region with an estimated
  loss of $2.2 billion of visitor
  spending in 2021, impacting
  more than 7,700 jobs in the
  visitor economy.
• Investing in the rebuilding of
  aviation will deliver a strong
  ROI resulting from increased
  tax revenue, while playing
  a critical role supporting job
  creation in the tourism and
  accommodation industries.           THE ISSUE                                          connectivity be built back differently.
                                         When international travel ceased in March
• Cairns Airport has committed                                                              Key issues for consideration during the
                                      2020, it removed a structurally important
  to upgrading the International                                                         international aviation rebuild include:
                                      component of the $3.3B tourism industry in
  Terminal to support                                                                       Maintaining a stable cost base for
                                      Far North Queensland (FNQ). International
  the rebuilding of direct                                                               airline partners
                                      visitors not only account for 7.4% of the
  international aviation. This                                                              Cash constrained airlines are highly
                                      region’s economy, but they also smooth the
  follows completion of the                                                              sensitive to increased costs of doing business
                                      annual demand cycle because they travel
  Domestic Terminal upgrade in                                                           with airports in the current environment.
                                      when domestic demand is low, which allows
  2020.                                                                                     Mandated security upgrades will cost
                                      operators to retain a year-round work force.
                                                                                         Cairns Airport $10M, significantly increasing
• Government support to               The current absence of international tourists
                                                                                         the International Passenger Service Charge
  meet the costs of Federally         has operators juggling resourcing to service
                                                                                         and International Passenger Security Charge
  Mandated security upgrades          stop-start domestic demand and missing out
  will avoid cost prohibitive                                                            levied to airlines, particularly as costs would
                                      on the opportunity to serve their premium
  increases to the International                                                         be shared across a reduced number of
                                      customers.
  Passenger Service Charge                                                               passengers during the aviation rebuild.
                                         FNQ’s high value airfreight export
  and International Passenger                                                               Establishing new point-to-point routes
                                      industries are also dependent on international
  Security Charge during the                                                             for the covid-cautious traveller
                                      connectivity and currently rely heavily on the
  aviation rebuild period.                                                                  Route development has also been
                                      Federal Government’s IFAM program. Whilst
                                                                                         impacted as passengers now prefer to avoid
• Targeted route development,         this program has been a lifeline, private sector
                                                                                         hubs and fly point-to-point. Thankfully, Cairns
  with a strong focus on Japan        businesses are relying on the resumption of
                                                                                         has a long history of direct connectivity to
  and Europe is required to           international connectivity to provide freight
                                                                                         Japan upon which to rebuild, and modern
  replace Chinese visitors            capacity beyond July when the IFAM program
                                                                                         long-range wide-body aircraft (A350 and
  who were previously the             concludes.
                                                                                         B767) are creating opportunities for long-haul
  most valuable international            Cairns Airport is working to achieve a
                                                                                         point-to-point routes, including the possibility
  customer segment for Tourism        strong, fast international recovery for the
                                                                                         of direct flights into central-western Europe.
  in the region.                      benefit of the region’s tourism industry and
                                                                                            Airlines rely on direct financial support to
                                      exporters. This international aviation rebuild
• New aircraft technology                                                                offset the increased risk and cost associated
                                      will be achieved from a standing start as
  provides the opportunity                                                               with new routes, especially long-haul point-
                                      the Cairns International terminal has been
  for direct flights from Cairns                                                         to-point routes which are a departure from
                                      closed to commercial traffic for two years due
  to Europe, which would be                                                              the pre-covid playbook. In a cash constrained
  a game changer for Cairns’          to ongoing travel restrictions. The aviation
                                                                                         environment, all stakeholders have weak
  tourism and international           rebuild will also take place in a changed
                                                                                         balance sheets and must work together to
  trade. Cairns is the only airport   and challenging operating environment
                                                                                         support the re-establishment of international
  in Queensland that can reach        where geopolitical developments, rapidly
                                                                                         routes.
  Europe with direct flights.         evolving customer needs and high degrees of
                                      operational risk dictate that international

08
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
BACKGROUND                                       and cosmetic components of the terminal
                                                 refresh, most likely with NAIF loans.
                                                                                                    rebuild its international route network, to
                                                                                                    bring valuable international tourists back into
   Cairns Airport maintains strong
                                                 However, to maintain a stable cost base            the region. Government funding to cover the
relationships with airlines based on fair
                                                 for airline partners Cairns Airport call upon      security upgrade requirements will eliminate
pricing and a constructive approach to
                                                 the Federal Government to fund the                 the need for increases to the International
the airline-airport partnership. These
                                                 mandated security upgrades as it has               Passenger Service Charge and International
relationships enable it to secure increased
                                                 done for other non-capital city airports via       Passenger Security Charge, supporting the
aviation capacity, which in turn facilitates
                                                 the Regional Airport Security Screening            recovery of the region’s tourism industry.
regional growth. Cairns Airport has a
                                                 Fund. Cairns Airport understands that it              Cairns Airport investment: Cairns
successful track record of investment in
                                                 sits outside the eligibility parameters for        Airport is supporting the regional economic
international route development and a
                                                 this program but is concerned that a new           recovery by investing in initiatives that
history of successful collaboration with
                                                 commercial disincentive to fly into Cairns         increase the appeal of direct flights to
government to deliver positive regional and
                                                 during the rebuild period would negatively         international airlines.
industry outcomes.
                                                 impact the recovery of the international              Aviation attraction funding: To rebuild
   In FY19 Cairns International Airport
                                                 tourism industry at a time when the region         traditional direct routes and to provide direct
facilitated 4,400 direct international
                                                 needs all the support it can get.                  connectivity to new destinations without
flights and 660,000 direct international
                                                    Cairns Airport has had to reevaluate            exposing passengers to hub airports. Cairns
passenger movements. During that
                                                 its approach to international route                Airport seeks to work with State and Federal
period, international visitors accounted for
                                                 development for the COVID-normal                   Governments in attracting a full-service carrier
6.9M room nights and $1.1B in regional
                                                 operating environment.                             into Japan and establishing a direct service
expenditure in Far North Queensland, while
                                                    The rebuilding of key tourism markets           into Europe. To achieve this, government will
airfreight exports ex Cairns Airport totalled
                                                 such as Japan back to its peak in the late         be called upon to help de-risk these service
3,075 tonnes with a total value of $146M.
                                                 2000s would largely offset the recent loss of      through the direct provision of aviation
   Now that vaccination thresholds have
                                                 direct Chinese arrivals from Hong Kong and         attraction funding to Cairns Airport.
been achieved, Cairns Airport is once again
                                                 mainland China, and modern, fuel-efficient
seeking to support the re-establishment
                                                 aircraft now make it possible to establish
of critical international links to enable
                                                 direct connections from Cairns to Europe. A
industries to continue operation.
                                                 Cairns-Frankfurt service would make Cairns
   Cairns Airport is engaging with NAIF
                                                 (and Queensland) a single-hop destination
to revitalise the International Terminal on
                                                 for covid-cautious European travellers.
the basis that that a modern and efficient
                                                 There is no precedent for such direct
international terminal will be a more
                                                 connectivity from Cairns, so interested
attractive destination for international
                                                 airlines would seek to minimise commercial
airlines and will provide an improved
                                                 risk through government support.
passenger experience for the FNQ tourism
                                                    Cairns Airport has a solid track record
industry.
                                                 of delivering a strong ROI on government
   Government mandated security
                                                 aviation investment and this would
upgrades would be completed as part of
                                                 be opportunity for another successful
the terminal refresh project however the
                                                 partnership.
incremental cost of security upgrades, if
funded by Cairns Airport, would be passed
through to airlines via increases in the        NEXT STEPS
International Passenger Service Charge and        Mandated security upgrade:
International Passenger Security Charge.        Maintaining stable costs for airlines is a
   Cairns Airport will fund the functional      high priority for Cairns Airport as it works to

   OUR RECOMMENDATION
        •    To maximise success, Cairns Airport calls on the Federal
             government to make the following commitments:
                                                                                  ESTIMATED              2022 -     2023 -      2024 -     2025 -
             º    $10 million towards Security Infrastructure upgrades,           PROJECT COST
                  to support the recovery of the region’s international
                                                                                                         2023       2024        2025       2026
                                                                                  $30M
                  tourism industry, by allowing Cairns Airport to                 Recommended Federal Investment
                  maintain a stable cost base for airlines during the
                  international aviation rebuild period.                          Infrastructure
                                                                                  $10 million            $10m
             º    $20 million ($5M per year for four years from State             Recommended State and Federal Investment
                  and Federal Governments) in aviation attraction
                  funding directly to Cairns Airport, to support                  Aviation attraction
                  attraction of an historic direct central-western                support                $5m         $5m         $5m        $5m
                  European international connection and to rebuild                $20 million
                  Japan back to peak visitor numbers.

                                                                                                                                                  09
ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
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

                                       THE ISSUE
BRIEFING NOTE                             Tropical North Queensland (TNQ) has seen
SUMMARY                                sustained population growth during the past 30
• The ability to meet increased        years underpinned by the expansion of industries
  demand for fresh Australian
                                       including agriculture, tourism, fisheries,
  food from North Queensland is
  at risk due to the lack of a long-   education, health, and retail. Throughout 2020,
  term water implementation            agriculture has been a continuing success story
  strategy.                            for the region and vitally important in driving
• To cater for growing demand          post-COVID-19 economic recovery. At the
  for water, four significant water    forefront of agricultural growth has been the
  supply and infrastructure
  projects are considered              Atherton Tablelands, driven by the Mareeba
  essential enablers for the           Dimbulah Water Supply Scheme (MDWSS)
  region: Lakeland Area                with rapid expansion in high-value crops such
  Irrigation Scheme, Cairns
  Water Security – Stage 1             as avocados, bananas, berries, and sugarcane.
  project, Etheridge Shire             Water is now 100% allocated1 and 80% used,
  Agricultural and Irrigation          with purchase prices rising more than three-fold
  Precinct Project, and North
  Johnstone River Diversion            since 2011, peaking at $4000ML.
  Scheme.                                 To address high prices and supply issues on
• All four projects require            the Tablelands, short- and long-term action is
                                                                                            through Cairns Airport within a decade.
  bilateral commitment and             urgently needed. The Queensland Government,
  shared investment to facilitate                                                              Urban demand also continues to increase
                                       via the Regional Water Assessment Program, is
  environmental approvals and                                                               with Cairns’ population growth averaging 1.1%
                                       currently undertaking a $3M investigation into
  to progress to construction                                                               per annum. This, combined with a long-running
  stage.                               possible additional water supply and long-term
                                                                                            history of attracting an estimated three million
                                       water security across the broader Tablelands
• A $7M investment is required                                                              tourists visiting TNQ annually pre-COVID, means
  to progress a North Johnstone        region. Sunwater is undertaking much-needed
  River Diversion Scheme                                                                    an effective and multi-faceted water supply
                                       improvements in the MDWSS to provide
  business case with completion                                                             strategy is required to ensure the growing
                                       efficiencies in the short term, but the scheme
  of the business case by June                                                              needs of the region can be met. Addressing
  2022, to enable and inform a         will also need supplementing with extra supply
                                                                                            this urban need will also reduce the impact
  rewrite of the water resource        through the proposed North Johnstone River
  plans for both the Barron and                                                             on agricultural water supply. In Cairns itself,
                                       Diversion Scheme.
  Wet Tropics catchments.                                                                   modelling by the Cairns Regional Council shows
                                          In addition, agriculture in areas such as
• A $2M investment is needed                                                                that demand for water will outstrip supply within
                                       the Lakeland district near Cooktown and
  to progress the Etheridge                                                                 the next five years. As a result, the Cairns Water
  Agricultural and Irrigation          surrounding the Gilbert River in Etheridge Shire
                                                                                            Security – Stage 1 project is an essential piece of
  Precinct implementation              has the potential to expand rapidly through value
  strategy which includes an                                                                infrastructure to secure urban water supply for
                                       crops such as bananas, grains, cotton, legumes,
  Economic, Environmental, and                                                              Cairns well into the future.
  Social Impact Assessment;            and watermelons. Water security has been a
                                                                                               In summary, four significant water supply and
  farming land analysis; and           concern for a number of years and is now limiting
  synthesis of existing work on                                                             infrastructure projects are considered essential
                                       supply in both regions.
  the Gilbert River to identify                                                             enablers for water security and growth in the
                                          Agricultural exports are vital to TNQ with the
  available and potential water                                                             region:
  supply with a view to obtaining      industry sector output currently valued at $1.6B2,
                                                                                            • Lakeland Irrigation Area Project
  pre-approval for the key             constrained mainly by factors such as irrigation
  components of the precinct.                                                               • Cairns Water Security – Stage 1 project
                                       and access to market. A landmark supply chain
                                                                                            • Etheridge Shire Agricultural and Irrigation
                                       study titled Export 2030 – Fresh Food Fast3 was
                                                                                            Precinct Project
                                       released in June 2020, which highlighted the
                                                                                            • North Johnstone River Diversion Scheme.
                                       potential to double high-value food exports

 10
BACKGROUND                                       for the project.
                                                     Cairns Water Security – Stage 1 project:
                                                                                                       up to 50,000ML. A $7M investment is sought
                                                                                                       for a full business case to enable and inform
   Water and food security have become
                                                 With forecasts indicating that supply to the          the rewrite of the Water Resource Plans for
priority national policy issues on the back
                                                 Cairns urban region is due to be at capacity          both the Barron River and Wet Tropics in
of record drought periods in Australia, as
                                                 by 2026, the Cairns Water Security – Stage 1          subsequent years.
well as disruption to supply chains through
                                                 project is a critical piece of infrastructure for
COVID-19. In 2020, the Federal Government
committed a further $2B to the National
                                                 the city. The project has been identified by          NEXT STEPS
                                                 the Cairns Regional Council’s Water Security             Development of the four proposed water
Water Infrastructure Fund to build resilience
                                                 Advisory Group (WSAG) as a key priority               infrastructure projects would meet a range of
in regions and to help grow the agricultural
                                                 to meet the short- to medium-term water               state and national policy objectives, including:
sector. A National Water Grid Authority has
                                                 security needs of the Cairns community. The
also been established to develop investment                                                            • Expanding northern Australia’s agricultural
                                                 project is estimated to cost about $215M
frameworks. In strengthening the role of                                                               productive capacity – this is nationally
                                                 and will provide an estimated 630 FTE jobs
northern Australia as a food bowl, substantial                                                         significant given the impact of drought on
                                                 and contribute an estimated $159M in Gross
feasibility work has progressed in the past                                                            food and water security in southern Australia.
                                                 Regional Product (GRP) during the project’s
three years to explore new agricultural                                                                • Increasing northern Australia’s contribution
                                                 construction phase4.
development opportunities. With many
                                                     Etheridge Shire Agricultural and                  to GDP through an increase in agricultural
of these studies now coming to a close,
                                                 Irrigation Precinct Project: Etheridge                production.
there are clear priorities for progressing
                                                 Shire Council, in conjunction with Regional           • Diversifying northern Australia’s economic
environmental impact and construction
                                                 Development Australia Tropical North,                 capabilities to facilitate investment and reduce
activities, and a coordinated approach to
                                                 proposes to develop an agricultural and               reliance on tourism.
development is required.
                                                 irrigation precinct in the Shire. The project         • Strengthening Australia’s international
   Lakeland Area Irrigation Scheme
                                                 aims to establish protocols that facilitate           competitiveness through proximity to Asia.
Project: Regional Development Australia
                                                 the approval and expansion of agriculture
Tropical North, through the National Water
                                                 and horticulture across the precinct on a
Infrastructure Development Fund (NWIDF),
                                                 regional basis. As much as 530,000ha of
funded a preliminary business case that
                                                 Class A and B soil is potentially available in the
investigated new water storage options
                                                 Shire, but there are barriers to water access
to expand the Lakeland irrigation area.
                                                 and security. Around 495,000ML of water
Once constructed, the proposed dam will
                                                 is available in the Gilbert River catchment
store 200,000ML with a secure output
                                                 area. A $2m investment is proposed for an
of 80,000ML per annum, irrigating up to
                                                 implementation strategy to analyse the best
10,000ha of highly irrigable land. Federal
                                                 means of accessing water and irrigating up to
Government funding of $10M to further
                                                 50,000ha of land to diversify crop types and
develop the business case has seen work
                                                 drive economic growth in the area.
advance materially with aerial mapping,
                                                     North Johnstone River Diversion
geological drilling and sampling, and dry
                                                 Scheme: Sunwater completed a preliminary
season ecology fieldwork all completed.
                                                 feasibility study in early 2020 with favourable
The draft Reference Design was completed                                                                 1 https://www.sunwater.com.au/schemes/
                                                 findings, and the Queensland Department                 MareebaDimbulah/
in December 2021. Further work on the                                                                    2 https://www.abs.gov.au/ausstats/abs@.nsf/
                                                 of Resources has since been undertaking                 Lookup/by%20Subject/1001.0~2016-17~Main%20
business case is continuing, with completion                                                             Features~2015-16%20Agricultural%20Census~10002
                                                 detailed hydrological modelling. The                    3 https://www.advancecairns.com/project/
scheduled for September 2022. Bilateral                                                                  export2030-delivering-fresh-food-fast/
                                                 diversion scheme is considered a viable
government support will be required to                                                                   4 https://www.cairns.qld.gov.au/water-waste-roads/
                                                 option to stimulate the economy, delivering             water/security
further the development approval processes

    OUR RECOMMENDATION
    • That the Federal and Queensland Governments work
      together to facilitate and coordinate the development
      approval processes for the Lakeland Irrigation Area Project.
                                                                                    ESTIMATED              2021 -         2021 -        2024 -          2025 -
    • That in 2022-2023 the Federal Government commits funding                      PROJECT COST           2022           2022          2025            2026
                                                                                                             North      Etheridge      Cairns Water Cairns Water
      towards the Cairns Water Security - Stage 1 project as per                    $230M                  Johnstone    Shire scoping    Security -      Security -
      the Town and City Water Security High Priority Infrastructure                                       business case study         Stage 1 project Stage 1 project
      Initiative identified by Infrastructure Australia.                            Recommended
                                                                                                            $7M            $2M           $55M           $52.5M
    • That the Federal Government provides $2M over two years                       Federal Investment
      for the implementation strategy for the Etheridge Shire                       Recommended
                                                                                                                                         $55M          $52.5M
      Agricultural and Irrigation Precinct Project.                                 State Investment

    • That the Queensland Government applies to the National
      Water Infrastructure Development Fund (NWIDF) in 2021-
      2022 for $7m to progress a full business case for the North
      Johnstone River diversion scheme.

                                                                                                                                                                   11
INFRASTRUCTURE TO FORGE OUR FUTURE
                      CAIRNS TNQ REGIONAL PRIORITIES 2022-23

    COASTAL ROADS
    COUNCILS: CAIRNS , CASSOWARY COAST, HINCHINBROOK, TOWNSVILLE STATE ELECTORATES: CAIRNS, HINCHINBROOK
    FEDERAL ELECTORATES: HERBERT, KENNEDY, LEICHHARDT

                                 THE ISSUE
BRIEFING NOTE                        An integrated and efficient road transport
SUMMARY                            network is critical for economic stability
                                   and growth in Tropical North Queensland
• TNQ’s road transport
                                   (TNQ) and the coastal road network plays an
  system is under pressure
                                   important part. The main coastal roads for TNQ
  due to population growth,
  particularly on the coastal      that require significant upgrading are:
  road network around               1. The Bruce Highway A1 (Cairns to
  Cairns, which is the main            Townsville)
  distribution hub for the          2. The Cairns Ring Road (comprising the
  region.                              Captain Cook Highway and the Cairns
                                       Western Arterial Road)
• The Bruce Highway is one
                                    In TNQ, the road network underpins the
  of Australia’s highest risk
                                 economy. The road network is vital to the
  roads, and in the 5 years
                                 resident population of 256 0391 (with up to
  to 2020 there were 604
  casualty crashes and 33        50,000 tourists during peak holiday season)
  fatalities on the stretch      ensuring accessibility to health, education,
  between Cairns and             community services, and trade. Due to
  Townsville.                    sustained population growth, TNQ’s road
                                 transport system faces increasing pressure.
• When the Captain Cook
                                 Meeting the growing demand for freight has
  Highway is flooded, the
                                 strained existing infrastructure, impacting on
  Cairns Western Arterial
                                 transport costs and service levels across the
  Road is the only flood-free
                                 supply chain. The strain has been exacerbated
  access route between
  Cairns, the Northern           by uneven population dispersion, competing
  Beaches, and the Kennedy       road users, and resilience gaps in the road
  Highway.                       network which is frequently impacted by
                                 weather events. Traffic congestion, safety issues,
•In the 2021-22 budget,
                                 and a loss of liveability and connectivity are the
  the Federal Government                                                              the key port locations difficult. While there is
                                 key issues for these roads.
  allocated $240 million to                                                           significant potential to expand export activities
                                    The Bruce Highway is part of the National
  duplicate the entire length                                                         for the TNQ region, particularly to Asian
                                 Highway A1, providing the vital link between
  of the Cairns Western                                                               markets, connectivity between ports is a critical
  Arterial Road. Additionally,   Cairns and Townsville, other Queensland
                                                                                      enabling factor in the future development of
  the Queensland                 coastal cities, and Brisbane. The highway also
                                                                                      Cairns as an export and service hub.
  Government promised            supports the transport of freight into and out of
                                                                                          Cairns’ population is forecast to grow by
  $60 million for the road       the region. Cairns and Townsville are northern
                                                                                      42%2 by 2046, and with its geography highly
  in the lead-up to the last     Australia’s largest cities, yet the mostly single
                                                                                      constrained by World Heritage-listed mountains
  election.                      carriageway highway is inadequate for the
                                                                                      and rainforest to the west and the Great Barrier
                                 population base and is frequently closed due to
                                                                                      Reef Marine Park to the east, the ability to
                                 flooding.
                                                                                      build new roads is severely limited. Therefore,
                                    There is significant traffic congestion on the
                                                                                      it is imperative for the future prosperity and
                                 Captain Cook Highway and along the Cairns
                                                                                      liveability of Cairns that both the Bruce Highway
                                 Western Arterial Road, both of which lead from
                                                                                      and the Cairns Ring Road be upgraded.
                                 the Northern Beaches into the city. This makes
                                 the transport of freight to, from, and between

    12
BACKGROUND                                         The Cairns Arterial Road network has
                                                                                               NEXT STEPS
   The Bruce Highway: Over the                                                                     A number of significant investments
                                                been underfunded for many years in terms
past decade, the Bruce Highway has                                                               announced to address safety and efficiency
                                                of capacity upgrades, with residential and
consistently been rated one of Australia’s                                                       challenges on the TNQ road network must
                                                industrial land development outpacing
highest risk roads. In 2016 the highway                                                          be commenced as soon as possible.
                                                road project investments.
accounted for 17% of national casualty                                                           • Bruce Highway, Cairns to Townsville:
                                                   The Cairns Western Arterial Road is
crashes on only 7.5% of the entire national                                                         Develop a strategic transport plan
                                                considered a priority infrastructure project
network. On the 299km section between                                                               for the Bruce Highway, which links
                                                as the road is heavily congested on a daily
Cairns and Townsville, which carries an                                                             northern Australia’s two largest centres,
                                                basis. Furthermore, when the Captain
estimated 17,250 vehicles per day, in the                                                           Cairns and Townsville.
                                                Cook Highway is flooded during wet
five years to 2020 there were 604 casualty                                                       • Bruce Highway, Innisfail Bypass:
                                                season or natural disaster, it is the only
crashes and 33 fatalities3. The mostly single                                                       Continue to preserve the existing
                                                flood-free access route between Cairns,
carriageway is slow, dangerous, and often                                                           bypass corridor and continue transport
                                                the Northern Beaches, and the Kennedy
closed during flooding.                                                                             project planning ($9 million) with a view
                                                Highway.
   Cairns Ring Road (Captain Cook                                                                   to completion by 2024-25.
                                                   Upgrading the state-owned Western
Highway section): The National                                                                   • Bruce Highway, Ingham to Cardwell
                                                Arterial section of the Cairns Ring
Highway A1 was extended by the Federal                                                              Range Deviation: Continue to preserve
                                                Road, which carries approximately
Government in 2020 to the intersection                                                              the existing transport corridor and
                                                42,000 vehicles per day2, is essential to
of Captain Cook and Kennedy Highways                                                                commence transport project planning
                                                connecting Cairns’ freight routes with the
and Mount Milman Drive, Smithfield, north                                                           ($48 million) with a view to completion
                                                region’s premier agriculture producing
of Cairns. In 2019, just before this road                                                           by 2024-25.
                                                areas (Atherton Tablelands, Cape York
re-classification, the Federal Government                                                        • Captain Cook Highway: Complete
                                                Peninsula, and Mossman), while also
announced it would undertake the majority                                                           planning for upgrade between Cairns
                                                meeting demand for daily commuter
of funding ($287 million of $359 million)                                                           and Smithfield and include $359
                                                traffic. At the 2020 State Election, the
for road upgrades to Smithfield. The need                                                           million (State and Federal) allocated
                                                State Government pledged $60 million
to upgrade Captain Cook Highway to                                                                  for construction in budget forward
                                                to the Western Arterial Road. In the May
enhance connectivity was recognised                                                                 estimates for 2022-2025.
                                                2021-22 budget, the Federal Government
by the Federal Government in its July                                                            • Cairns Western Arterial Road: Now that
                                                committed $240 million for the duplication
2020 release of the 2019 National Land                                                              the Federal Government has committed
                                                of the remaining single carriageway
Transport Network (NLTN) Determination                                                              to $240 million in the 2021-22 budget,
                                                section of the road. It is now imperative
Review, and works on the first phase                                                                it is imperative that planning for the
                                                that the State Government commits to the
between James Street and Airport Avenue                                                             duplication of the road between
                                                balance of funding and that planning gets
are to begin in late 2021.                                                                          Smithfield and Redlynch be completed
                                                underway to ensure the duplication work is
   Cairns Ring Road (Cairns Western                                                                 to enable works to commence as soon
                                                undertaken as soon as possible.
Arterial Road section): The effectiveness                                                           as possible.
                                                   Infrastructure Australia has listed
and safety of the road transport network
                                                both the Bruce Highway and the Cairns
in and around Cairns will continue to
                                                Western Arterial Road on its 2021 list of         Source:
be adversely impacted until the Cairns                                                            1 https://profile.id.com.au/cairns/population-estimate
                                                infrastructure priorities4.                       2 https://www.infrastructureaustralia.gov.au/map/cairns-west-
Western Arterial Road is fully duplicated                                                         ern-arterial-road-capacity
from Redlynch to Smithfield as well as                                                            3 https://www.data.qld.gov.au/dataset/crash-data-from-
                                                                                                  queensland-roads
major intersections being upgraded.                                                               4 https://www.infrastructureaustralia.gov.au/publications/Infra-
                                                                                                  structure_Priority_List_2021

                                                                                   ESTIMATED                2021 -          2022 -           2023 -
  OUR RECOMMENDATION                                                               PROJECT COST             2022            2023             2024
  • That through the Bruce Highway program, the State and Federal                   BRUCE HIGHWAY - funding required $57m
    Governments honour their promise to upgrade North Queensland
    sections of the National Highway A1 ($57M) and commit to                       Recommended
                                                                                   Federal Investment       $7.2m            $16m           $22.4m
    developing a strategic transport plan linking Cairns and Townsville.
  • That the Federal Government commitment of $287.2 million for                   Recommended
    Captain Cook Highway upgrade and $240 million for the CWAR                     State Investment         $1.8m             $4m            $5.6m
    duplication be allocated in forward estimates.
                                                                                    ESTIMATED
                                                                                    PROJECT COST
                                                                                   CAIRNS RING ROAD - funded, delivery by 2025 $659m
                                                                                                          Captain Cook       Western         Cairns Ring
                                                                                                            Highway        Arterial Road        Road

                                                                                   Recommended
                                                                                   Federal Investment       $287m           $240m            $527m

                                                                                    Recommended             $72m             $60m            $132m
                                                                                    State Investment                         (Pledged)

                                                                                                                                                             13
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

BRIEFING NOTE                    THE ISSUE                                            Tropical Coast, and Cape York to the Cairns
                                                                                      Airport and seaports. The Kuranda Range Road
                                    The road networks linking Cairns with the vital
SUMMARY                          agricultural, mining, and tourism regions of the
                                                                                      underpins the commercial viability of primary
                                                                                      industries, producers, and exporters in the
• There are four main roads      Atherton Tablelands and beyond are critical
                                                                                      region in providing access to markets through
  linking Cairns with the        enablers of the regional economy. With sizeable
  Atherton Tablelands:                                                                the Cairns air and seaports, and road links to
                                 growth in both agriculture and mining in the
  Palmerston Highway,                                                                 southern markets2. In recent years, there has
                                 region predicted in the next decade, a safe and
  Gillies Range Road,                                                                 been rapid growth in traffic demand due to
                                 reliable road network that enables increased
  Kuranda Range Road, and                                                             growth in tourism, freight movement, and
                                 heavy vehicle traffic is vital for economic growth
  Mossman Mt Molloy Road.                                                             residential development on the Tablelands. The
                                 and prosperity in the region. The road network
                                                                                      road is now operating beyond capacity with
• The Kuranda Range Road         in and out of Cairns acts as the main distribution
                                                                                      safety and traffic efficiency now at critical levels
  has already exceeded its       hub for the region and is essential to further
                                                                                      for action.
  capacity of 9,500 vehicle      developing the agricultural and mining exports
                                                                                         There are other impediments to a safe and
  movements per day,             of the region. However, meeting the growing
  catering for up to 10,000                                                           efficient transport corridor from Cairns to the
                                 demands for freight has strained existing
  daily traffic movements.                                                            Tablelands. The Barron River Bridge on the
                                 infrastructure, impacting transport costs and
  In 2018-2019, the road                                                              Kennedy Highway at Kuranda was reduced to
                                 service levels across the supply chain.
  was closed more than 130                                                            one lane and load limited to 50.5 tonnes for a
                                     There are four main roads linking Cairns with
  times due to crashes and                                                            year due to concerns over the safety and stability
                                 the Atherton Tablelands: Palmerston Highway
  debris.                                                                             of the bridge. The State Government in March
                                 and Gillies Range Road servicing the Southern
                                                                                      2021 announced a $2.1 million investigation
• The Palmerston Highway         Tablelands, and the Kuranda Range Road and
                                                                                      into long-term solutions for either replacing or
  connects Innisfail to Millaa   Mossman Mount Molloy Road for the Northern
  Millaa on the Southern                                                              rehabilitating the bridge3.
                                 Tablelands. Two of these roads, the Palmerston
  Tablelands. It is a critical                                                           The Federal Government, in its July 2020
                                 Highway and Kuranda Range Road, are
  road to connect the                                                                 release of the 2019 National Land Transport
                                 considered priority transport routes for goods
  agriculture and mining                                                              Network (NLTN) Determination Review,
                                 to and from the region1. All roads pass through
  sectors of Tropical North                                                           confirmed the National Highway A1 would
                                 World Heritage-listed areas, increasing the
  Queensland with the port                                                            be extended from Cairns to Smithfield. The
                                 complexity of any potential transport solution.
  of Mourilyan.                                                                       objectives of an integrated land transport
                                    The Palmerston Highway connects Innisfail
                                                                                      network include improving national and regional
• Extending the NLTN from        to Millaa Millaa on the Southern Tablelands. It
                                                                                      connectivity for communities and industry;
  Smithfield to Mareeba          is a critical road to connect the agriculture and
  will ensure continued                                                               improving national, regional, and international
                                 mining sectors of Tropical North Queensland
  economic and social                                                                 logistics; and trade and consistency with viable,
                                 with the port of Mourilyan. However, it requires
  development of the region                                                           long-term economic and social outcomes4.
                                 significant upgrades to allow heavy vehicles to
  and will improve national                                                           Continuing the NLTN from Smithfield to Mareeba
                                 use the route on a regular basis.
  and regional connectivity.                                                          would meet these objectives as well as ensuring
                                    The Kuranda Range Road (Kennedy Highway,
  It will also ensure there                                                           the continued economic and social development
                                 Cairns/Mareeba section) links Smithfield with
  is a clear partnership                                                              of the Atherton Tablelands region and beyond.
                                 Kuranda and is the main coastal gateway to
  between State and Federal                                                           It would be the next logical step in the network,
                                 the Atherton Tablelands, Cape York Peninsula,
  Governments for future                                                              with Mareeba being the gateway to the region’s
                                 and the Gulf Savannah. It is a critical link for
  investment in the lead-up                                                           agriculture production areas of Atherton
                                 commuter, commercial, and visitor traffic in
  to the last election.                                                               Tablelands, Cape York Peninsula, and the Gulf of
                                 Tropical North Queensland and a vital strategic
                                                                                      Carpentaria.
                                 corridor linking the Atherton Tablelands, North

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