Luke Simpkins (Cowan, Liberal Party) Share this | Hansard source

On behalf of the Joint Standing Committee on the National Capital and External Territories, I present the committee’s report entitled Governance in the Indian Ocean Territories—Final report: Economic development and governance. I seek leave to make a short statement in connection with the report.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—The inquiry was referred to the committee in March 2015 by the Assistant Minister for Infrastructure and Regional Development. The terms of reference directed the committee to examine governance and administrative arrangements in the Indian Ocean Territories, and identify opportunities for economic diversification and development.

In June 2015 the committee tabled an interim report which focused on some aspects of economic development where the evidence on how to proceed was clear and consistent. The committee made recommendations to reopen the Christmas Island casino, to allow international students to study on Christmas Island again and to improve sea freight services.

Today the committee tables its final report for the inquiry and makes 19 recommendations. It builds on the economic development recommendations of the earlier report before turning to address longstanding service delivery and governance issues.

In assessing what else is needed to stimulate economic activity in the Indian Ocean Territories the report looks at ways to increase tourism. Recommendations include establishing closer links with Tourism Western Australia to facilitate access to tourism support services, and measures to promote the Indian Ocean Territories as a unique destination with capacity-building assistance for the local tourism associations from Tourism Australia.

The committee also makes recommendations to improve land management. The need to conduct a detailed geological survey on Christmas Island is a priority, as is clarifying the operation of the land trust on the Cocos (Keeling) Islands. A crown land management framework which makes clear the principles governing the release of crown land and processes that developers need to follow to lease and purchase crown land is also essential.

Throughout the inquiry, it was apparent that there is dissatisfaction amongst residents with the management and delivery of services. At one point there were valid concerns that fire and emergency services on Christmas Island were in jeopardy when existing arrangements were due to expire and new arrangements had not been negotiated. Although ultimately resolved, such a situation should never be allowed to occur again. The committee makes a number of recommendations to improve consultation with the community and increase transparency and accountability.

It also became apparent that the role of the Indian Ocean Territories Administrator has diminished over time. It appears that public servants within the Department of Infrastructure and Regional Development have assumed some of the responsibilities that were previously assigned to the Administrator. Successive Administrators have also sought to make the role their own. The result is that the Indian Ocean Territories communities are increasingly uncertain about who is responsible for what. To remedy this, the committee recommends that the role and responsibilities of the Indian Ocean Territories Administrator be clarified, including outlining specified delegations.   

The final chapter of the report examines options for reform. At the local level there may be scope to streamline and amalgamate some functions of the Indian Ocean Territories shire governments. However fundamental reform may be needed to achieve significant improvements in governance for the Indian Ocean Territories.

It has been over two decades since the proposal for incorporation of the Indian Ocean Territories into a state or territory was last mooted. Bringing governance arrangements into line with the rest of Australia could significantly improve investor confidence and enhance economic prospects. Therefore the committee recommends that the Australian government fully investigate the option of incorporating the Indian Ocean Territories into a state or territory as a longer term solution for the Indian Ocean Territories.

Initially this would involve making formal approaches to the relevant state and territory governments and extensive consultation with residents of the Indian Ocean Territories. Although significant reform of this type would not be without its challenges, it may be the most appropriate way to achieve a stronger foundation and new strategic direction for the Indian Ocean Territories, and in the best interests of all those who live there.

On behalf of the committee, I wish to thank everyone who contributed to the inquiry, especially residents of the Indian Ocean Territories, for sharing their views and experiences.

I also acknowledge important contributions from the current Indian Ocean Territories Administrator, Mr Barry Haase, former administrators and retired public servants.

Finally, I thank the secretariat for their hard and dedicated work for the committee. Thank you to our secretary, Dr Alison Clegg; inquiry secretary, Sara Edson; and our researcher, Samantha Leahy, who are here today.

Mr Speaker, I commend this report to the House.

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