ADVANCE CAIRNS - CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23 - Treasury
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ADVANCE CAIRNS OUR REGION ONE VOICE THE COMMITTEE FOR TROPICAL NORTH QUEENSLAND CAIRNS TNQ FEDERAL BUDGET SUBMISSION 2022-23
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
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
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
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
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
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
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
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
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 14
You can also read