Luke Simpkins (Cowan, Liberal Party) Share this | Link to 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—interim report: economic development.

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

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

The committee visited the Indian Ocean territories in April 2015. During the visit, members gained insight into the day-to-day challenges that residents face—be it the high cost of living, slow Internet access or difficulties running a business in a remote location. What has emerged is that residents of the Indian Ocean territories are frustrated by a system of governance, which has many layers of bureaucracy and unclear delineations of responsibility. Addressing these complex issues is a priority and the committee is seeking further information before reporting. The interim report sets aside these more complex issues to deal quickly with some aspects of economic development where the evidence on how to proceed has been clear and consistent.

Unquestionably, the residents of the Indian Ocean territories want and need a sustainable and robust economy. This is especially the case on Christmas Island, which has experienced a boom and bust cycle with its mainstays—phosphate mining and immigration detention. The interim report makes three recommendations intended to boost the economy relatively quickly. Firstly, the committee recommends reopening the Christmas Island casino. This will require establishing the necessary policy, legislative and regulatory frameworks to allow for this. Once appropriate frameworks are in place, the Department of Infrastructure and Regional Development should conduct a process to assess proposals from private sector proponents. The community wants the casino reopened and work on this is long overdue.

Interestingly, on 18 June the Indian Ocean Territories Administrator issued a bulletin advising that the Australian government had agreed to undertake initial consultation regarding the proposal to re-establish a casino. Minister Briggs will consult with ministerial colleagues about the complex regulatory issues and undertake discussions with the Western Australian and Northern Territory governments. This is a promising start.

Secondly, the committee supports re-establishing the capacity for international fee-paying students at the Christmas Island high school. This had previously operated on Christmas Island for a short time and demonstrated the potential for a range of flow-on effects to the local economy.

Thirdly, in these remote communities of the Cocos (Keeling) Islands and Christmas Island a reliable and affordable shipping service is critical to residents to support business and development. The current shipping service may not best serve the needs of residents or, the largest single user, the Australian government. To determine if there is capacity to improve efficiency and achieve better value for money for shipping services the committee recommends that the Australian government test the market by calling for expressions of interest, to be followed, if need be, by a full tender.

Lastly, the committee highlights the Mining to Plant Enterprise Project on Christmas Island as an example of possible economic diversification. MINTOPE is working to establish agriculture on exhausted mining leases via a research partnership between Murdoch University and Christmas Island Phosphates. The committee saw for itself the success that MINTOPE had with a variety of crops. Community support and involvement are driving forces behind the project. A recent field day drew interest from many island residents.

More testing is required before individuals and groups can formulate reliable business cases for investment. If agricultural production is proven to be economically viable, there are potentially a range of opportunities. These include production of feed for animals, fish pellets, exporting vegetables to Asia and timber production, to name a few. The committee recognises the project's achievements to date and wants to see the project continue to flourish.

On behalf of my committee colleagues I thank Sara Edson, the inquiry secretary, and the rest of the committee secretariat for their great work. I commend the interim report to the House and move:

That the House take note of the report.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

In accordance with standing order 39, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.