Insurance Review Releases Issues Paper

The Natural Disaster Insurance Review has released an issues paper for comment and submission by 14 July. The Review, which was commissioned by Assistant Treasurer Bill Shorten, has been asked to look at flood insurance and related matters following the experiences in Queensland and other states over the summer. It is due to report to Mr Shorten by 30 September 2011. The Review will look at a full range of issues but of interest to local government is its remit to consider mitigation measures undertaken by state and local government and their impact on insurance availability and cost, and whether existing arrangements, such as the Natural Disaster Relief and Recovery Arrangements (NDRRA), should be augmented by a new national disaster fund to support the rebuilding of damaged public infrastructure.

The Review is seeking submissions from all parties, including councils and the issues paper is available here. ALGA has commissioned a study on local government disaster insurance and is working with state local government associations to obtain a clearer picture of the extent to which councils insure, the problems they face and the impact on councils of recent changes to the NDRRA, which introduce stronger requirements on governments to insure. ALGA will use this work as the basis for its own submission to the Review.

Garnaut Final Climate Change Report Calls for $20-$30 per tonne

Professor Ross Garnaut released his final report on climate change on 31 May and recommended an initial carbon price in the range of $20-$30 per tonne. In making a recommendation for a carbon price, Professor Garnaut stated that it would be harder and more expensive for Australia to address emissions reduction without a carbon price. The ALGA policy position supports a market-based price on carbon but also emphasises the need for effective adaptation measures and support for structural adjustment in communities, councils and businesses. ALGA has also sought to ensure that legacy waste is not covered by any carbon price, which the Government accepts, and that there is a resolution to some of the outstanding technical measurement issues related to inclusion of other waste under a carbon price/emissions reduction scheme.

ALGA commissions study on climate change legal liability

Following extensive consultation with state and territory local government associations and councils ALGA has commissioned a national study on Climate Change Adaptation and Local Government Liability. In October 2010, the ALGA Board adopted a climate change policy position and endorsed an ALGA Climate Change Implementation Plan. Legal liability was identified as one of nine priority issues that needed to be dealt with to assist councils manage and adapt to climate change. This project will be one of the first deliverables under the Climate Change Implementation Plan 2010-2014 and will be an important resource for ALGA and local government to work with other levels of government to help progress this important issue.

The ALGA Climate Change Implementation Plan 2010-2014 identifies the following policy outputs:

• Improved local data and information to assist councils to address climate change;
• Accelerate risk assessment and risk management planning across local government;
• Embedding climate change into local government strategic and corporate plans;
• Integration of council plans with regional plans;
• Greater clarity on roles and responsibilities in particular on the management of public assets;
• National technology platform to share information, resources, templates, ideas and plans;
• Nationally consistent communication and locally relevant education templates; and
• Policy alignment between the three levels of government.

The ALGA Climate Change Policy Position is available here .

Australian Government launches National Digital Economy Strategy

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, has launched the National Digital Economy Strategy, which plots out how the Federal Government aims to leverage the National Broadband Network (NBN) to drive productivity in the Australian economy.

Senator Conroy said the National Digital Economy Strategy identifies eight goals that the Australian Government plans to achieve by 2020. These include that:

• Australia will rank in the top five Organisation for Economic Cooperation (OECD) countries in the portion of households that connect to broadband at home;
• Australia will rank in the top five OECD countries in the portion of businesses and not-for-profit organisations using online opportunities;
• Australian schools, TAFEs, universities and higher education institutions will have the connectivity to develop and collaborate on innovative educational services that will extend the opportunities for online learning;
• Australia will have at least doubled its level of teleworking so that at least 12 per cent of Australian employees may work away from the traditional workplace;
• The gap between households and businesses in capital cities and those in regional areas will have narrowed significantly.

ALGA has long pushed to ensure broadband covers as much of the country as possible. Senator Conroy will be addressing such issues at the upcoming National General Assembly.

For more information about the National Digital Economy, click here.

Last week's release of the latest report to be issued by the Grattan Institute - Investing in regions: Making a Difference - has sparked widespread debate about economic development in regional Australia.

The report critically examines the real economic benefits arising from successive regional development programs. It suggests that the billions of taxpayer dollars being invested in rural and regional areas are failing to deliver promised economic development and that regional development programs are largely misdirected and inefficient in gaining substantive financial return.

The report argues that government money spent in slow-growing regions not only fails to accelerate growth in these areas but may hinder national economic growth, stating that "government spending cannot make economic water flow uphill".

Such sentiments prompted Regional Australia Minister Simon Crean to reassure all regions that the Federal Government would never divide regional Australia into winners and losers, declaring: "We are supporting regions nationwide and will continue to work side-by-side with them to help them unlock their potential." He confirmed his support for regional development, saying that maximizing growth in the regions is not only good for the regions but also benefits the national economy.

I agree that it is not in the national interest to rank regions against each other by dividing key centres into "bolting regions" and "lagging regions," as all regions contribute to the national economy and each requires investment in key infrastructure, education, health and hospitals. But I would go one step further by adding that the real challenge in strengthening the economic performance of regional Australia lies in the Federal Government helping regions to make the most of their individual strengths and supporting important sectors such as manufacturing, mining and food production.

The challenges of regional development and the need for respective governments to allocate scarce public funds efficiently and equitably are just some of the issues that will be discussed at the upcoming Regional Cooperation and Development Forum to be held in Canberra on 19 June, 2011. I am pleased to report that we have more than 300 delegates attending this event and that all regions of Australia appear to be represented.

The discussions, together with the findings of this year's State of the Regions Report will provide ALGA with essential information that I can share with Ministers at the first meeting of the new Regional Development Standing Committee later this year.

Mayor Genia McCaffery
ALGA President

Briefs

Constitutional recognition of local government

More than 240 councils have now advised ALGA that they have passed resolutions in support of constitutional recognition. Councils which have this week advised ALGA of their resolutions are:

Any councils requiring further information should contact Monica Telesny on 02 61229433 or at monica.telesny@alga.asn.au.

Economy affected by drop in exports

A collapse in Australia's export earnings in the March quarter has ended any prospect of interest rates rising in the next few months.

In the biggest reversal since the 1970s, export volumes dropped by nine per cent for the quarter, mainly due to the impact of summer's natural disasters on shipments of coal and other natural resources.

Minerals and energy exports slumped by 14 per cent, and coal exports by 27 per cent.

The figures were worse than expected, and have firmed up predictions that national accounts figures will show the economy contracted in the March quarter.

Separate figures showing a drop in building approvals in April and falling house prices are pointing to more gloom in the June quarter.

Before the release of the latest export figures this week, financial markets were pricing in a slim chance of an interest rate hike when the Reserve Bank board meets next Tuesday. Now they are pricing in a zero probability of a rise at that meeting, and a negligible probability until November.

Major Project Facilitation status: Aurora Algae Project

Major Project Facilitation (MPF) status has been given to Aurora Algae Pty Ltd's waste conversion project.

The project seeks to commercialise new technology which takes algae and waste CO2 from industrial processes such as those employed in the production of LNG and ammonia to produce: biodiesel for the mining sector; protein-rich biomass for aquaculture and animal feed; and omega-3 oils for human nutrition.

Aurora Algae could have its first commercial scale facility up and running in the Western Australian town of Karratha by early 2013. It is a $100 million project which would create more than 200 jobs during construction and up to 100 ongoing full time jobs.

Future planning for NSW councils

The NSW Minister for Local Government, Don Page, has outlined a series of initiatives for changing planning, funding and structural arrangements for local councils.

Mr Page announced a summit for mayors and general managers to come up with ideas to make the sector sustainable for the next 25 years.

He also said the government would review the agreement between it and councils on cost shifting, where councils feel they are forced to pay for services that Macquarie Street should fund.

Mr Page said work was under way on legislation to allow councils to run their own local government elections from next year instead of the NSW Electoral Commissioner running them.

Promoting awareness of cybersecurity risks

National Cybersecurity Awareness Week was opened this week to help Australians better understand cybersecurity risks and the simple steps they can take to protect themselves and their children online.

This year, there are eight simple tips that all Australians are encouraged to follow for better online security. These include:

1. Install and renew your security software and set it to scan regularly.
2. Turn on automatic updates on all your software, including your operating system and other applications.
3. Think carefully before you click on links and attachments, particularly in emails and on social networking sites.
4. Regularly adjust your privacy settings on social networking sites.

For more information, visit the Australian Government's cybersecurity website, Stay Smart Online

Figures for domestic airport travel released

According to the Bureau of Infrastructure, Transport and Regional Economics (BITRE), domestic airport passenger numbers rose seven per cent in 2010 after recording almost no growth during the previous twelve months.

During the 12 months to 31 December 2010, the fastest growth occurred on routes between:

• Gold Coast - Newcastle, up 26 per cent;
• Darwin - Melbourne, up 19.8 per cent;
• Cairns - Melbourne, up 15.7 per cent;
• Karratha - Perth, up 13.3 per cent; and
• Adelaide - Brisbane, up 12.6 per cent.

The five busiest routes in 2010 were:

• Melbourne - Sydney with 7.9 million passengers;
• Brisbane - Sydney with 4.4 million passengers;
• Brisbane - Melbourne with 3 million passengers;
• Gold Coast - Sydney with 2.4 million passengers; and
• Adelaide - Melbourne with 2.3 million passengers.

Amongst the nation's ten biggest domestic airports, the Gold Coast recorded the fastest growth in the number of passengers transiting through it, up 10.5 per cent on the year before to more than 4.7 million.

Multiculturalism inquiry submission

The Municpal Association of Victoria (MAV) has lodged a submission to the Federal Parliamentary Joint Standing Committee on Migration inquiry into multiculturalism.

The submission seeks a more clearly articulated, strategic and mutually agreed position on the respective roles and responsibilities of federal, state and local governments around settlement of newly arriving migrants and refugees, and related cultural diversity policy and programs for the wider community.

It also seeks greater inter-governmental engagement and co-ordination from the Federal Government; and a modest Federal Government investment in collaboratively producing a national local government good practice handbook to assist councils in developing consistent multicultural policy, settlement planning and related community relations engagement.

To view, click here.

DIAC presents regional migration seminars

The Department of Immigration and Citizenship (DIAC) will be staging regional migration forums in major regional centres across Western Australia throughout the next month, to provide local employers with information on the skilled migration programs available to address their labour needs.

DIAC is delivering the forums in cooperation with the WA Department of Training and Workforce Development.

At the forums, employers can get an overview of skilled migration options or pathways available to those seeking to address skill shortages in regional and remote areas of the state across a range of industries.

For information about the regional migration forums email roo.wa@immi.gov.au

2011 National General Assembly (NGA) the biggest in Canberra yet!

This year's NGA is shaping up to be one of the most significant local government events of the century.

Over 750 registrations have already been received and we anticipate receiving over 780 registrations which will make it the biggest NGA ever held in Canberra.

With speakers including the Prime Minister, Minister for Local Government and high profile people such as the CEO of Woolworths, Grant O'Brien, the program is guaranteed to entertain and inform.

If you haven't already registered, there is still time to do so, but hurry. Both NGA Dinners are sold out and accommodation is getting really tight.

To register click here. For further information contact the ALGA Secretariat on 02 6122 9400.

Celebrating 60 years of ALGWA

Time is running out to reserve your seat at Old Parliament House for the special dinner to celebrate the sixtieth anniversary of the Australian Local Government Women's Association.

Her Excellency Quentin Bryce, Governor General of Australia, will be attending along with Cr Genia McCaffery, ALGA National President and the Hon Kate Ellis, Minister for Women's Affairs; Senator Judith Troeth; Senator Michaelia Cash; the Hon Anna Burke; the Hon Kelly O'Dwyer; the Hon Michelle Rowland; Ms Glenys Beauchamp and Professor Graham Sansom.

All are invited to join the celebration on Sunday, 19 June, after the National General Assembly welcome drinks. Buses will be available to transport guests from the National Convention Centre to the historic venue and return to hotels.

Information and registration here.

Snapshot of our regions competition

Minister for Regional Australia Simon Crean is encouraging local photographers to focus their lens on regional Australia and enter the Federal Government's inaugural My Region National Photographic Competition.

Australians of all ages are invited to submit images taken over the past year to showcase the people, places, wildlife, landscapes and nature they believed made their unique patch of the nation special.

All images will be showcased on the new MyRegion website - which will be launched in July and developed in stages to provide information about government services and expenditure, as well as opportunities to provide feedback on a range of regional issues.

The competition closes on 26 June 2011 and the winning photos will be exhibited at the National Film and Sound Archive in July. To find out more about the competition click here.