Dean Smith (WA, Liberal Party) Share this | Hansard source

Last week, during the break in our sitting commitments here in Canberra, I was very pleased to again use the opportunity to head out into regional Western Australia, this time to Derby, to attend the Kimberley Economic Forum.

As everyone in this place understands, the current coalition government has made the development of Northern Australia one of its key priorities. After decades of both sides interminably discussing the opportunities for Northern Australia to make a greater contribution to national economic growth and prosperity, it took this government to put some meat on the bones of that great aspiration though the release of its white paper.

I notice that Senator Dodson is here in the chamber. Senator Dodson was part of the forum's proceedings. The purpose of the Kimberley Economic Forum was to help local businesses and communities from across the Kimberley region better understand what the white paper means for them and how best to take advantage of the opportunities it now presents. The forum also examined some fascinating trends in the emerging markets of Asia and, in particular, the factors driving growing consumer demand for high-quality agricultural goods—a market trend that Western Australia's north is uniquely equipped to exploit.

Of course, the Kimberley region is home to a significant number of Indigenous communities, and the forum also spent time discussing strategies to ensure that the economic development of our north also allows those communities to engage with, and prosper from, the opportunities in the years ahead.

As I have said in this place on many occasions previously, our ability to transform those opportunities into real lived experiences for local communities in the north of Western Australia comes back to one important thing, and that is the provision of infrastructure to support regional development. That is why initiatives put in place by this government, like the Northern Australia Infrastructure Facility, which will support such development, are so critical to long-term success of the region.

In a state as vast and as economically important as Western Australia, that means making certain our regional airports are meeting appropriate standards so that we can facilitate the movement of goods and people as safely and expeditiously as possible. Today, I would like to examine two of these airports that are absolutely critical to development in Western Australia—one in the far north of the state and the other in the south-west of Western Australia.

Turning first to the north, it is no secret that the Shire of Derby/West Kimberley has long been experiencing difficult times in economic terms and across its broader community. Compared to other areas in Western Australia and the nation, the Shire of Derby/West Kimberley has two times as many single parent families, three times the national average of school leavers, over three times the state average of low-income households, welfare-dependent families with children at almost double the state average, and long-term unemployment 3½ times greater than the metropolitan average. The downturn in the economy has seen the unemployment rate skyrocket to 27 per cent, the highest it has ever been. Numerous industries within the region have closed, resulting in the loss of thousands of jobs, which deeply affects an already disadvantaged community. In February this year the regular air passenger transport service to the region ceased due to cost pressures and a reduction in passenger demand due to a downturn in the economy following the end of the mining boom. This means that anyone wanting to access a flight to Perth must drive a 450-kilometre round trip to Broome in order to fly from Broome to Perth. In addition, national and international attention has been focused on the Kimberley following more tragic occurrences of youth suicide. There are numerous negative factors that are contributing towards this all too common occurrence in our regions; however, they are underwritten by intergenerational poverty and disadvantage.

However, thanks to a recent announcement, there is at least some fresh hope being given to this community in the far north of Australia. The Derby Airport redevelopment is but one example of how our regional communities are working to achieve positive outcomes. Thanks to support from many, including my colleague Melissa Price, the federal member for Durack, this coalition government has committed $5.09 million towards the $8 million redevelopment project, which includes upgrading the airport to facilitate the development of both a lower cost regular passenger transport capacity as well as a tourism air lounge which will see unemployed local people trained extensively and transitioned into new local jobs. More than that, it is a powerful symbol of the government's confidence in the region's capacity for economic growth and development. The associated infrastructure to support the terminal and lounge will allow for improved base infrastructure to facilitate further private investment, which will help boost tourism to the region and will directly benefit the Royal Flying Doctor Service, which uses the airport as a local base.

I turn now to the South West, and in particular the south-west of Western Australia, known to many here as Western Australia's premium tourism and holiday destination. It is interesting to note that Busselton has now overtaken Bunbury as the most populated region of Western Australia's south-west and is one of the fastest growing regional centres in the nation. In addition to its top quality wine and food, sweeping beaches and picturesque scenery, the region is also a drawcard for international surfing and ironman events—something I know you are very familiar with, Mr Acting Deputy President Gallacher—and has established itself as a major Australian film and festival centre.

However, less well understood is the importance to the South West of non-tourism related industries and the rapidly changing nature of those industries. In 2014, the gross regional product value of the South West was $17 billion, accounting for 6.9 per cent of Western Australia's gross state product. The value of agriculture from the South West is estimated at $613 million, and the industry directly employs over 3,500 people. The South West produces 90 per cent of the state's milk, the total of the state's avocado production, 86 per cent of the total value of potatoes, 76 per cent of the total value of apples and pears and 67 per cent of the total value of wine, as well as a host of other high-value gourmet foods and produce, including high-end lines such as abalone, marron, flowers, citrus, vegetables, truffles and Wagyu beef. It is also a significant producer of cattle, sheep, poultry, pork, wool, cereal crops and oilseeds.

Yet the one critical driver missing in the South West is a world-class transport hub in the form of an expanded airport, which could provide a direct link for overseas and interstate passengers and capitalise on short air-freight delivery times to many Asian and Middle Eastern markets. Upgrading the existing Busselton-Margaret River Regional Airport to a modern international standard would drive not only Western Australia's strong tourism industry but our lucrative and expanding agricultural and food exports as well. The region's safe, clean, green reputation, combined with a strong export culture, makes these products attractive for export to China's emerging middle class, whose tastes are evolving into more Western cuts of beef and lamb. This has been one of the successes of the WA premium wine industry, which has capitalised on supplying the demands of tourists, both here and when they return home. And it is a strategy that is working well in other agricultural related industries, especially for producers who are set to benefit from the reduction of the livestock tariff from 10 per cent to eight per cent and a further two per cent next year under the new China free trade agreement.

Last December, local meat processor V & V Walsh became the first red-meat processor in Australia to receive full accreditation from Chinese authorities to export chilled sheep, goat and beef meat, and provide a market for a further 500,000 lambs from the South West each year. The company's co-owner, Peter Walsh, has already said they could send 90 tonnes of chilled beef and lamb a week to China from the Busselton-Margaret River Airport, with bigger volumes to follow as the business grew. Since acquiring Harvey Beef around two years ago, Andrew Forrest has invested over $30 million in upgrading the chiller capacity and retail-ready packaging facilities to meet the growing international demand for beef and sheep meat. Winemakers, fishermen, fruit and vegetable growers, dairy farmers and cut flower suppliers also want a direct air link with China and South-East Asia.

Early this year, Volga-Dnepr, operators of the Antonov An-225, the world's largest plane, met with the City of Busselton to discuss using the airport as a regional transport hub flying direct to Singapore. The WA state government has committed $55.9 million to upgrade the Busselton airport to cater for flights from the eastern states and, thanks to the support from WA Liberal senators and our local parliamentarian, the member for Forrest, Nola Marino, the federal government has committed $9.78 million which will allow the airport to increase the runway length to cater for international air freight. This is another significant vote of confidence in regional Western Australia. (Time expired)