ACF Submission to the White Paper on Developing Northern Australia8 August 2014

This is the text only version in Word format for online submission. See also the printed and pdf version of this submission with maps and photographs.

ACF Contact Details Mr Graham Tupper; ACF Northern Australia Program ManagerEmail: xxxxxxxxxxxxxx Phone: xxxx xxx xxx Mail address: PO Box 2699 Canberra ACT 2601

White Paper Terms of ReferenceThe Government will produce a White Paper on Developing Northern Australia within 12 months. The White Paper will set out a clear, well-defined and timely policy platform for realising the full economic potential of the north, including a plan for implementing these policies over the next two, five, 10 and 20 years.

Northern Australia is broadly defined as the parts of Australia north of the Tropic of Capricorn, spanning Western Australia, Northern Territory and Queensland; an area of approximately 3 million square kilometres with a population of around one million people.

The White Paper will:

1. produce a stocktake of northern Australia’s natural, geographic and strategic assets, and the potential for further development of the region’s minerals, energy, agricultural, tourism, defence and other industries, as well as a comprehensive assessment of risks and impediments to growth;

2. set out agreed policy actions to:o harness opportunities which capitalise on the region’s strengths, including

ways to advance trade, cultural and investment links with the Asia Pacific region and provide a regulatory and economic environment that is conducive to business investment, competitiveness and competition.

o manage impediments to growth, including from regulatory frameworks, land access arrangements, environmental constraints, the lack of coordinated planning, participation of Indigenous people in the economy and access to markets, skills and services, and

o create the right conditions for private sector investment, innovation, enterprise growth and business formation (including in and for Indigenous communities);

3. identify the critical economic and social infrastructure needed to support the long-term growth of the region, and ways to incentivise public and private planning and investment in such infrastructure; and

4. include consideration of the policy options identified in the Coalition’s 2030 Vision for Developing Northern Australia.

Green Paper Questions addressed in this submission

What features of northern Australia are the most important to its current growth and future development?

What aspects of the northern Australian economy should be a focus for governments?

What are the opportunities to diversify northern Australia’s economy? How can Indigenous Australians in the north more actively participate in

economic development? What are the right policy directions for further developing northern Australia? How effective are programs and policies affecting northern Australia? What should be the respective roles of the Commonwealth, state, territory and

local governments, the private sector, non-government organisations and communities in pursuing these policy directions?

Additional questions which ACF recommends to the White Paper process:

What is the driving purpose for the development of northern Australia? Who should benefit from economic development and how? What existing natural, social and cultural values need to be maintained and

strengthened?

EXECUTIVE SUMMARYA better future for people and nature in northern Australia

Vision, goals and tests for the sustainable economic development of northern Australia

ACF believes that a strong, diverse and sustainable economy for northern Australia is necessary to underpin the wellbeing of its communities, the long term management of its natural resources, and to maintain its contribution to Australian society and to the world through its recognised universal values under World and National Heritage listings.

ACF highlights a core comparative advantage of northern Australia, included in the Green Paper - the natural advantage of northern Australia, along with the long term economic opportunities this brings.

“Northern Australia’s climate shapes its diverse landscapes, which include tropical rainforests, wetlands and mangroves, extensive grasslands and desert. Many of these are globally significant and support rich biodiversity, with plant and animal species found nowhere else in the world. This is an important part of Australia’s international reputation and tourism offering. The north is home to seven World Heritage Sites with outstanding natural and scientific values: the Great Barrier Reef, the Wet Tropics of Queensland, Kakadu National Park, Uluru-Kata Tjuta National Park, Ningaloo Coast, Purnululu National Park and the Riversleigh Australian Fossil Mammal Site. The cultural values of Kakadu and Uluru-Kata Tjuta are also recognised on the World Heritage List.

“As well as supporting the multi-billion dollar tourism industry, the region’s natural landscapes are integral to the lifestyles of northern Australians. Connection to country is an important part of Indigenous culture, and boating, recreational fishing, and four wheel driving are important recreational activities for many northern Australians.

“The conservation and natural resource management sector also makes an important contribution to the northern Australian economy. The growth markets for biodiversity and ecosystem services could provide further economic opportunities, particularly for Indigenous communities. “

However, ACF also notes that the White Paper’s narrow Terms of Reference and the limited policy directions advanced in the Green Paper act to constrain the scope that the White Paper appears to have to ensure this natural advantage, underpinning the tourism industry and long term productive capacity of healthy landscapes and river systems, is well protected and managed. We believe an additional policy direction must be included in the White Paper, namely:

Maintaining and strengthening the natural, social and cultural values of northern Australia in the context of the global megatrend of biodiversity decline as identified by the CSIRO.

For more detail refer to section 3.2 “A Natural Advantage” of the CSIRO Futures Report for the Queensland Government: The Future of Tourism in Queensland noting

that in relation to the landscape, rivers and biodiversity assets which northern Australia retains: “The economic laws of supply and demand mean that as a good or service becomes more scarce the price goes up.”

Despite the constraints in the White Paper Terms of Reference, this submission seeks to address these additional foundational issues in the response to the opportunities identified in the Green Paper and in the detailed recommendations which follow.

The Need for a Driving Vision – What is the destination of the plan?

ACF submits that the White Paper needs a long term vision with clear goals and genuine progress tests to achieve a better future for people and nature in northern Australia. Some of this may be implied in the Green Paper, and some useful options are raised (and noted in this submission), but a clearer purpose and long term vision needs to be explicit in the White Paper to inform communities and stakeholders in northern Australia as to the intended destination.

ACF urges the Northern Development Taskforce to add some other fundamental questions to those listed in the Green Paper in future community and sectoral consultations under the White Paper process and its subsequent implementation. The additional questions which need to be addressed include:

What is the driving purpose for the development of northern Australia? Who should benefit from economic development and how? What existing natural, social and cultural values need to be maintained

and strengthened?

ACF includes a 2030 vision for a better future for people and nature in northern Australia in this submission. This is informed by the science and analysis of the 2009 Land and Water Taskforce Report, and by efforts to engage with and include the aspirations of Indigenous communities, as well our efforts to find common ground and an inclusive vision with under sectors of the northern economy under the Kimberley to Cape Initiative (refer separate submission).

ACF would welcome opportunities to engage in forums under the White Paper development process to better understand and discuss a wider range perspectives and visions for the future of northern Australia from other stakeholders. The successful long term implementation of a White Paper plan will require broad community support based on an inclusive vision and clear goals.

The Need for Clear Long Term Goals

The long term goals for northern Australia must embrace social and environmental outcomes as well as for economic development, recognising that these three domains need to be well integrated to achieve genuinely sustainable development.

Consistent with the globally significant natural values of the north, and the need for effective Indigenous economic engagement, ACF submits the following two goals for inclusion into a White Paper plan for northern Australia:

1. To protect biodiversity and restore ecosystem resilience through integrated approaches that link social, cultural and economic dimensions of people and place, and recognise Indigenous peoples’ roles and rights.

2. To support Indigenous peoples’ sustainable management of their land and resources and encourage mutual learning about contributions to sustainability.

The Need for Genuine Progress Tests

ACF is a member of the Kimberley to Cape Initiative - a network of organisations and individuals drawn from multiple sectors across northern Australia, including Indigenous organisations, tourism, agriculture, NRM, regional planning and mining associations. The Kimberley to Cape Initiative has begun work to develop a more inclusive long term vision for northern Australia based on shared principles and to pursue recommended policy actions based on identified common ground issues. (Refer to separate Kimberley to Cape Initiative submission.) These shared principles shape the goals and the genuine progress tests against which economic development in northern Australia could be measured.

ACF believes the genuine progress tests in the White Paper should include at least the following:

1. Environmentally sustainable?Is the productive capacity of the land and river systems being maintained and strengthened, and globally-significant natural and cultural values safeguarded?

2. Economically resilient?Is the economy becoming more diverse, resilient, and sustainable and measurably improving the well-being of communities that live in the north?

3. Fair and equitable?Are the rights and interests of Indigenous communities being respected with full participation in economic development?

More detail on the scope and application of these progress tests are provided in the appendix to this submission.

Priority Opportunities for Northern AustraliaIn relation to the list of opportunities for northern Australia canvassed in the Green Paper ACF submits the following as priority areas:

1. Natural resources and landscapes: The north’s natural assets and resources are the foundation for long term economic opportunities in tourism, sustainable agriculture, and other industries, as well as for communities.

2. Indigenous economic development: Indigenous Australians must play a greater role in the northern economy, including through leveraging cultural, intellectual and land assets.

3. Economic diversification: A more diverse, regionally appropriate, northern economy which builds on its strengths beyond minerals and energy, will reduce exposure to volatile commodity markets and unlock potential across other industries.

4. Education, research and skills: The proximity to Asia and the north’s tropical expertise offer opportunities for education and training providers and research institutions to excel.

Summary Response to Green Paper Policy DirectionsNoting the need for an additional policy direction as recommended above, ACF submits the following general points in relation to the six policy directions canvassed in the Green Paper. These responses are elaborated in the detailed recommendations.

1. Infrastructure priorities need to be selected according to criteria which provide longer term and broadest scale social, environmental and economic benefits. That is, which provide the most benefit to the most number of people and economic sectors over the longer term.

2. There is a need for more flexibility in land use, under the recommended land-use compatibility framework, to provide more diverse economic opportunities for pastoral leases and for Indigenous landholders.

3. It is essential to invest in comprehensive water resource assessments, and ensure best practice planning and management before making decisions on water use, particularly on water infrastructure.

4. Business, trade and investment needs to be informed by sustainability criteria, analysis of long term market access issues, with efficient, effective regulation driven by independent agencies which provide community confidence and thereby, more business certainty.

ACF rejects many of the claims used to argue for a reduction in environmental regulation – the so called “cutting of green tape”. While there are opportunities to improve the efficiency of approval processes, the weakening of environmental safeguards will prove costly to all Australians in the long term, and ultimately will only serve to undermine business certainty.

5. Education, research and innovation is a huge opportunity for northern Australia and should be central to White Paper plans to build a smart knowledge based economy in the north offering the world expertise and training in tropical medicine, best practice water management in tropical agricultural systems, the deployment of distributed renewable energy systems in rural and remote locations (saving money from costly fossil fuel run generation systems) and in many other disciplines.

6. Governance in northern Australia can be improved by collaboration across governments to improve consistency in planning and regulation, and through more genuine participatory processes with local communities. In particular the White Paper should focus an enduring partnerships approach, based on informed consent, for engaging with Indigenous communities (refer recommendation 3) and on a robust and consistent regulatory regime across all jurisdictions to advance a more responsible mining sector (refer recommendation 7).

SUMMARY OF RECOMMENDATIONSA. WHITE PAPER GOALS, VISION AND PROCESS

1. Provide for community and stakeholder forums in the White Paper development process which invite additional responses to the following questions: What is the driving purpose for the development of northern Australia? Who should benefit from economic development and how? What existing natural, social and cultural values need to be maintained and

strengthened?

2. Draft a 2030 Vision for northern Australia as the basis for inviting and discussing various perspectives at community and stakeholder forums on the shape of the preferred future and of shared tests for genuine progress.

3. Add the following policy direction to the existing Green Paper framework:Maintain and strengthen the natural, social and cultural values of northern Australia in the context of the global megatrend of biodiversity decline as identified by the CSIRO.

Incorporate at least the following two goals into the White Paper:1. Protect biodiversity and restore ecosystem resilience through integrated approaches that link social, cultural and economic dimensions of people and place, and recognise Indigenous peoples’ roles and rights.2. Support Indigenous peoples’ sustainable management of their land and resources and encourage mutual learning about contributions to sustainability.

B. WHITE PAPER ACTIONS

Recommendation 1. Land-use Compatibility Framework, System of Environmental-Economic Accounting and Governance

1.1 Adopt a land-use compatibility framework to guide economic planning, based on science and Indigenous ecological knowledge, and which integrates the full value of all the outstanding natural and cultural values of northern Australia.

1.2 Undertake a comprehensive stocktake of natural assets information of Northern Australia unique and internationally significant landscape and biodiversity values.

1.3 Implement the UN System of Environmental-Economic Accounting, beginning with a focus on northern Australia to provide decision-makers at all levels of government, the private sector and local communities vital information about our the value of our natural assets, and the trade-offs inherent in economic development choices.

1.4 To ensure a coordinated and more consistent approach across jurisdictions, including the implementation of a land-use compatibility framework and delivery of federal programs, upgrade the federal Office of Northern Australia into a Commission on Northern Australia.

Recommendation 2. Regionally Driven, Diverse and Resilient Economies

2.1 Adopt a regionally driven long term economic planning process which builds diverse and resilient economies, appropriate to the very different needs and comparative advantages of different regions – from the larger cities of Cairns and Darwin, to medium size towns such as Broome and Cooktown, to rural and remote communities.

2.2 Develop and embed in regional planning and review processes a set of agreed social, environmental and economic goals and genuine progress tests.

Recommendation 3. Full Economic Participation of Indigenous Communities

3.1 Ensure the rights and interests of Indigenous people are core to economic development planning and regional governance processes based on the principles and practise of Free, Prior and Informed Consent.

3.2 Incorporate and build on the prior work of Traditional Owner groups in Country Based Planning processes, IPA Plans of Management, Healthy Country Plans, economic prospectus’ of various local groups, and to the pan northern Australia work of Indigenous bodies such as the North Australian Indigenous Experts Forum on Sustainable Economic Development.

3.3 Recognise and build on the public investment in Indigenous Ranger and other related programs which provide a foundation for skills and capacity development, and build on this to generate Indigenous business development opportunities, especially under fee for service contracts, by developing guidelines for government and business to design and manage contracting processes that allow smaller local Indigenous businesses to compete and to build capacity over time.

Recommendation 4. Land and water management: environmental services

4.1 Invest in land and water management as the basis for delivery of environmental services, including Indigenous Rangers, for fire management and carbon farming, pest and weed control, to build a strong foundation and the capabilities required to develop and manage other economic activities which rely on maintaining the productive capacity of the country.

4.2 Lift the current target for the employment of Indigenous rangers from 730 position to at least 1,000 rangers by 2016, with a focus on high natural and cultural heritage areas including the Kimberley, Kakadu, Cape York and the Great Barrier Reef.

4.3 Commit new long term investment to protect well-functioning ecosystems with targeted action to conserve wildlife, manage key threats and sequester carbon in biodiversity hotspots.

Recommendation 5. Tourism Development

5.1 Invest in appropriate tourism development - which protects and maintains the natural and cultural assets of the north and which spreads the benefits of tourism

revenue and employment to more people in rural and remote communities, particularly to Indigenous communities.

5.2 Consistent with the recommendations of the KLC, NAILSMA, QTIC, Advance Cairns and others, include policies that result in increased workforce participation and business development opportunities for Indigenous people in the tourism sector.

5.3 Provide policy support to the development of new and innovative tourism partnerships and products, to provide new tourism experiences and supporting services, including a new federal program to support a package of training and infrastructure, targeted to remote Indigenous communities, to boost tourism in areas with declared natural and cultural values.

Recommendation 6. Water Development, Agriculture and Industry

6.1 Establish a moratorium on the industrial and commercial development of river systems until scientifically robust National Water Initiative compliant plans are in place and used to inform future decision making.

6.2 Recognise the freshwater river systems in northern Australia as nationally significant with a national goal to maintain their hydrological connectivity.

6.3 Embed the lessons of costly mistakes from irrigation schemes in southern and northern Australia into the decision making processes under a White Paper plan and take a precautionary approach based on robust and independent science.

6.4 Make research and development a priority for tropical agricultural systems with best practice water management including to: retain and adequately resource the National Water Commission, and establish a new Cooperative Research Centre in the north that achieves these

purposes.

Recommendation 7. Mining and Energy

Establish a robust and consistent regulatory regime across all jurisdictions in northern Australia to advance a responsible mining sector.

Place a moratorium on unconventional gas exploration and development (CSG, shale gas) until extensive studies are conducted on cumulative long term environmental impacts.

End plans for new or expanded uranium mining and promote responsible radioactive waste management based on transparent process, sound science and community consent.

Halt the expansion and development of new coal mines. Establish policy enablers which promote investment in a strong renewable energy

economy (including expertise in the deployment of appropriate technology in rural and remote areas), based on the long term comparative advantages of northern Australia in solar and other renewable energies.

INTRODUCTION

A better future for people and nature in northern AustraliaStretching over 2,500 kilometres from the Kimberley in the west, through Kakadu and Arnhem Land in the Northern Territory, to the Gulf country and Cape York Peninsula in the east, and including vast fringing reef marine parks of Ningaloo and the Great Barrier Reef, northern Australia is home to the largest, most ecologically intact ecosystems left on earth. According to Tourism Australia research, Australia is regarded by international visitors as the world’s number one destination for outstanding beauty and natural environment (Tourism Australia 2013: Consumer Demand Project, Nature)The landscapes in the north form a sweep of forests, woodlands and spinifex clad ranges, threaded by a mosaic of wetlands and meandering pristine rivers. It is world renowned for its natural and cultural values, recognised in both National and World Heritage proclamations. This supports thousands of jobs and livelihoods in tourism, arts, and land and sea management.The north is worth our strongest efforts to protect and conserve in line with the aspirations of Indigenous peoples who have been its custodians for tens of thousands of years.

The need for economic development that fits the nature of the country

For a range of compelling reasons, including to address Indigenous disadvantage, northern Australia requires a sustainable economic development pathway. This pathway needs to fit the nature of the country and capitalise on its natural assets rather than depend on large-scale irrigation or land-clearing, or the unfettered expansion of the mining sector.

Existing economic activities and natural values supported by the land and water resources of northern Australia, along with the uncertainties associated with development of water resources, demand that best practice water management and planning be in place before developing water resources or allocating water entitlement or use licences. Crucially, development must avoid repeating the mistakes of the past such as the over-extraction of water from the Murray-Darling Basin, now costing the tax-payer $13 billion to restore. The complex interconnections between surface and groundwater are poorly understood in northern Australia and water extractions from one place could have significant impacts some distance away, and sometime in the future.

Turning threats into opportunities

There is a need to reverse the long term trend of environmental decline in Australia and to address the socio-economic development needs of Indigenous people.The particular threats for northern Australia include the steady invasion of pests and weeds, a rapid decline of small mammal species, the growing impacts of climate change and ill-considered proposals to mine, dam and clear swathes of the north which would only degrade the north’s National and World Heritage listed natural and cultural values.The expansion of Indigenous Protected Areas and the growth of the Indigenous Rangers program are indicators of a strong new movement in the north to “keep country healthy”. This includes the steady development of land and sea management services by Indigenous communities such as the control of pests and weeds, fire

management and carbon farming - commonly referred to as the environmental services sector. This sector provides reliable employment and income for many remote Indigenous communities, lifts skill levels and establishes the physical and administrative infrastructure required to establish and support other economic activities.

Tourism is one particular opportunity which can build on the social, administrative and physical infrastructure established with the Indigenous ranger programs, - particularly high value nature and culture based tourism. The future development of the tourism sector in the north must ensure more of the income and employment benefits flow to rural and remote communities, particularly to Indigenous communities who do the hard work of keeping the natural assets of the north in good order, particularly under Indigenous Protected Areas.

Another comparative advantage for northern Australia is solar energy, and in some areas tidal energy, with the opportunity for communities in the north to be energy self-sufficient and to supply both southern Australia and Asia with clean renewable energy. A focus on developing renewable energy in northern Australia reduces costs and provide greater security for industry and communities living in remote locations over the long term. Solar energy has been shown to work in over 130 remote Indigenous communities to date, with significant savings in fuel costs. Cleaner, smarter renewable energy for rural and remote communities can be the basis of a future strong knowledge and skills export economy consistent with maintaining the cultural and natural values of the north.

Understanding the nature of northern Australia and the vital role of water

Northern Australia has a much higher Indigenous population and a much larger Indigenous owned estate compared to southern Australia – around 30% in both cases. The overlap of the Indigenous estate with the conservation estate is a unique and fundamental feature of the north - which supports the world’s oldest living culture, where many Indigenous people continue to live on country, often in very remote, significantly disadvantaged communities.

Any consideration of economic futures for northern Australia must recognise the region’s significance for Indigenous people and their intrinsic and continuing connection to land and water.

Northern Australia has a richness in biodiversity which is rare by world standards existing in the only developed nation with a large tropical region. It supports the world’s largest remaining tropical savannah, one of the world’s largest networks of free-flowing tropical rivers, and the world’s largest near-shore tropical marine ecosystem.

The north is strongly monsoonal with an almost rainless dry season followed by a shorter season of storms, cyclones and torrential rain. The harsh climate shapes the landscape and dictates the types of land use activities the north can sustain. Very few rivers in northern Australia flow year-round and those that do are highly valued. They support complex and healthy ecosystems. These are freshwater systems of national significance.

Perennial rivers in northern Australia are rainfall dependent in the wet season and sustained by localised groundwater discharge during the dry season. The seamless interconnection between surface water flows and groundwater discharge (and recharge) is critical to their integrity.

Understanding of northern landscapes will be deepened through an integration and application of both western and Indigenous knowledge. Building the adaptive capacity of landscapes and the resilience of communities to respond to climate change in northern Australia is critical.

A CSIRO coordinated Northern Australia Land and Water Science Review in 2009 examined a range of options for use of land and water in northern Australia and the likely consequences of those uses, for communities, businesses and the environment. The Review detailed the key limitations and enablers required for future development in the north, including environmental, social, economic and governance considerations.

While the review did not provide sustainable development ‘solutions’ for northern Australia, it did provide data and recommend processes to ensure that developments are designed and selected to proceed with sustainability and equity.

The geographic scope of the science review was confined to a smaller area than the boundaries of northern Australia defined for the purposes of this Inquiry - the scope of the data in the 2009 science review were the river basins within the Timor Sea and Gulf of Carpentaria drainage divisions, and that part of the North East Coast drainage division north of Cairns - taking in the area north of Broome in the west and Port Douglas in the east.

The population of this region is about 200,000, which is about 20 per cent of the ‘north of Capricorn’ total population excluding major northern centres of population and industry such as Cairns and Townsville.

The review found that the northern Australian culture and economy is heavily based on natural resources, especially water, comprising:

tourism and recreation (around A$2,800 million), pastoralism (around A$1,000 m), fishing and aquaculture (greater than A$160 m), irrigated agriculture (around A$160 m) defence (greater than A$1,000 m) mining (around A$9,100 m).

The review found that all future economic development and diversification opportunities rely on access to water, making virtually all water resources significant. Future expansion of these industries may generate increased competition amongst water uses and users.

Some key factors that were considered in the science review included:

The environment as a key water userLife in northern Australia is extraordinarily dependent on the region’s high natural values and intact landscapes. Development can directly reduce these values by depleting water, reducing water quality or by changing the natural flow of water in the landscape; all of which impact the animals and plants that live on the land and in the seas and rivers of the north.

Customary management, Indigenous livelihoods and water resource planningIndigenous livelihoods are heavily reliant on water-dependent natural resources, which intersect and support its customary, state and market sectors. Indigenous people in northern Australia comprise a third of the north’s population. Clarity of

water rights in northern Australia affects Indigenous people’s access to water and commercial opportunities, and could impact future unresolved Native Title claims.

Of the significant volume of rainfall that falls in northern Australia between October and April each year, the CSIRO review found that this water performs important roles and is not “wasted”.

20 per cent flows through streams to the ocean: this flow maintains industries like fishing and tourism by providing the conditions required to support fish life. Reducing stream flow reduces nutrients and the food required for fishery stocks such as barramundi, threadfin and prawns to breed and grow.

15 per cent becomes groundwater:: this water keeps the landscape and people alive and industries operating in the dry season. Remote communities draw most of their drinking water from groundwater.

65 per cent evaporates from soils, plants and water bodies: evaporation is not just lost; this water plays an important role in the water cycle, enables plants to grow and maintains the climate in the north.

The review found that the expansion of irrigated agriculture had historically been limited by several factors: a lack of skills and experience in dealing with a challenging climate; sufficient water and quality soil that occur together; and economic, logistical and social isolation. These challenges still exist to varying degrees, but none on its own was sufficient to prevent further development. The Review found that there may be enough water and soil to support a doubling or tripling of the existing irrigated agriculture area. Technological advances, such as the use of more efficient irrigation methods or plants that use water more efficiently, could increase the opportunities for irrigated agriculture by making better use of scarce water resources.

A 2030 VISION FOR NORTHERN AUSTRALIA By 2030 Northern Australia has applied lessons from the past and become a world leader in sustainable resource management – building a resilient economy which has provided secure higher skilled jobs, lifted service delivery and dramatically reduced the disadvantage faced by many Indigenous Australians.

This has been driven by a transformative change to integrate the full value of ecologically healthy landscapes and river systems into economic decision making. This process and the choices it presented now underpin a high value thriving tourism industry which is proving vital to managing climate change impacts on northern Australia, including for the agricultural sector. It has also helped the northern Australian economy become more resilient to the consequent economic shocks arising from climate change impacts and other megatrends as documented by the CSIRO affecting the Asia-Pacific and tropical regions.

Indigenous people are central in land and water planning, management and decision making. There is adequate provision is made for environmental and Indigenous cultural water use, with regular review as new information on land and water management becomes available, including from the impacts of climate change.

There are thriving joint venture business development activities initiated by Indigenous people under innovative partnerships utilising traditional knowledge and cultural assets. A core source of revenue is income from the global trade in carbon – which is also having widespread benefit for primary producers across the north as a way to diversify their income and keep their country productive. Skill levels in sustainable land management have increased on the back of more effective use in resources for training and education, and is the basis for a booming “knowledge economy” exporting training and expertise to other tropical regions.

Thanks to Australia’s growing reputation as the number one destination for natural beauty and environment, and in timely well targeted investments to develop new tourism products and transport infrastructure, the tourism industry has broadened its reach to a diverse range of market and ‘experience’ segments and is providing reliable income and employment to small towns and remote communities across the north. In particular, Indigenous communities are engaged in and receiving substantial direct benefit from tourism – some of which is being reinvested back into managing the health of country, maintaining infrastructure and supporting services.

The national and international recognition of the natural and cultural landscapes of northern Australia, combined with the systematic application of a science based land-use compatibility framework, including reforms to provide more flexibility of land use on leasehold land, is improving the health and ecological connectivity of the landscape. Despite some adverse impacts from climate change, the ecological integrity and health is improving for National and World Heritage areas, Indigenous Protected Areas, National Parks, private wildlife sanctuaries, areas under conservation covenants and Ramsar listed wetlands. This has helped to reverse the decline of small mammals and other threatened plants and animals and enabled Australia to avoid a wave of extinctions.

Northern Australia is regarded as the go to place for world’s best practice in the use and management of its tropical freshwater systems. This is based on the systematic delivery of a strengthened National Water Initiative across the north. Reflecting their

social, cultural and economic values, these freshwater systems are now declared assets of national significance. All river basins and their associated aquifers have implemented water management plans that comply with the objectives of the National Water Initiative. This was achieved through a sustained investment by Australian governments in addressing critical knowledge gaps and involving communities in water planning.

Water use efficiency on irrigation farms has increased dramatically through the adoption of advanced water delivery technologies – and is the basis for a thriving skills and knowledge export industry. Farms use a ‘closed system’ approach, where excess water no longer drains into aquifers and rivers and nutrient and pesticide use have been stopped or dramatically reduced, minimising the impact of agriculture while improving farmers’ net income.

Small scale irrigation systems are thriving in suitable areas which combine arable land with sustainable water use and access to markets. These new ‘mosaic systems’ have allowed landholders to increase overall unit productivity and better manage risk and consolidate diverse, dynamic and distributed economic activity.

The northern pastoral industry has increased its productivity with improved technologies and best practice land management (to decrease water use and methane production), and is contributing to better environmental outcomes through stewardship partnerships. The success of business development and management support programs has significantly improved the viability of a large number of Indigenous pastoral properties.

Improved rehabilitation and environmental mitigation strategies and practises across former mine sites and mining affected areas are leading to improved environmental outcomes and supporting the development of a new international market for Australian skills and technology.

Northern Australia has become a global hotspot in the development and deployment of renewable energy, particularly in solar systems applied to rural and remote communities, which has enabled all communities across the north, including the larger cities, to become energy self-sufficient and to build an innovative and strong renewable energy knowledge and skills based export economy.

DETAILED RECOMMENDATIONS AND ACTIONSRecommendation 1. Land-use Compatibility Framework, System of Environmental-Economic Accounting and Governance

1.1 Adopt a land-use compatibility framework to guide economic planning, based on science and Indigenous ecological knowledge, and which integrates the full value of all the outstanding natural and cultural values of northern Australia.

1.2 Undertake a comprehensive stocktake of natural assets information of Northern Australia unique and internationally significant landscape and biodiversity values.

1.3 Implement the UN System of Environmental-Economic Accounting, beginning with a focus on northern Australia, to provide decision-makers at all levels of government, the private sector and local communities vital information about our the value of our natural assets, and the trade-offs inherent in economic development choices.

1.4 To ensure a coordinated and more consistent approach across jurisdictions, including the implementation of a land-use compatibility framework and delivery of federal programs, upgrade the federal Office of Northern Australia into a Commission on Northern Australia.

To shift development in the north onto a pathway that protects and maintains natural values and ecological processes which keep the country healthy, planning needs to be based on: The establishment of core areas to be managed primarily for conservation; Constraints on activities that are directly or indirectly destructive to the natural

values and ecological processes of the north; The promotion of economic activities that are compatible with those values and

processes.

This will require a network of protected areas, building on the current Indigenous Protected Areas network, which maintain the environmental integrity or connectivity of landscapes, and the health of river systems and wetlands. However, conservation in northern Australia also requires a different approach based on a land-use compatibility framework is required which: 1. Properly accounts for, and maintains the natural and cultural values, of northern

Australia landscapes and waterways;2. Maintains the ecological integrity of the processes that keep country healthy,

particularly in response to the likely impacts of climate change;3. Involves all property-holders and land managers, particularly Indigenous

communities, to enable environmentally sustainable economic development.

The aim of the land-use compatibility framework approach is to increase economic activities which directly help to maintain, or can be made to be compatible with, the ecological processes and natural and cultural values of northern Australia. This in turns underpins the long term productivity and environmental sustainability of

northern Australia economies – capable of withstanding future waves of global economic and environmental changes and shocks.

A Land-use Compatibility Framework for Northern AustraliaSource: Woinarski et al, The Nature of Northern Australia. ANU E Press, 2007

Classification of economic activity Description Examples

Conservation Activities that directly and actively help to maintain ecological processes and natural values.

• Some government services (border control and quarantine)• Conservation management of country• National Parks, Indigenous Protected Areas, off-reserve management• Feral animal control and harvesting

Compatible Activities that rarely if ever degrade, but may simply be neutral to the environment.

• Most government services (defence, health, education, provision of infrastructure)• Visual and creative arts, including the Indigenous arts and crafts sector• Nature and culture-based tourism• Information technology services• Biotechnology (e.g. bioprospecting); for example, identifying new medicines using traditional knowledge

Potentially compatible Activities that can be compatible with maintaining natural values and processes if done with care and in particular ways.

• Pastoralism dependent on native pasture and operating within carrying capacities• Mining operations that have minimal water requirements and small ecological footprints• Low input aquaculture; for example, with natural feeding stock (e.g. shellfish, sponges)• Harvesting of native plants and animals from the wild• Fishing (commercial, recreational and Indigenous)• New residential and tourist developments• Mass tourism• Military training• Trophy hunting of feral or native animals

Incompatible Activities that are inherently degrading to natural values and processes, for which significant damage can only be reduced, and generally not to a satisfactory level.

• Permanent and large-scale clearing of native vegetation for agriculture• Mining operations with a large ecological footprint (such as strip mining without adequate rehabilitation or protection of hydrological systems)• Large-scale water off-takes, impoundments and irrigation• Extensive plantation development• Extensive aquaculture developments with high input (e.g. fish fed other fish)• Genetically-modified crops• Pastoralism using invasive introduced grasses

Federal Budget Reform and System of Environmental-Economic Accounting

Another vital step to integrating the full value of the outstanding natural and cultural values of northern Australia into long term planning and decision making is to develop a national balance sheet, including Australia’s natural assets and forward projections, and use it to drive more informed planning and priority setting, including for northern Australia.

Australia has played a very important role in the development of the UN System of Environmental-Economic Accounting (SEEA), a globally agreed statistical standard equivalent to GDP. This needs to be applied and the best place to start is in relation to future development options for northern Australia.

Beginning with a focus on northern Australia the federal government should allocate $20 million per year to implement UN System of Environmental-Economic Accounting and provide decision-makers at all levels of government, the private sector and local communities with vital information about our natural assets, and the trade-offs inherent in economic development choices.

Balance sheets are central to decision-making in every business, ensuring assets are not run down just to generate short-term revenues. Just as this evidence base is critical for good decision making in business, it is also needed to inform are good decision making by government, with communities, in economic planning. Such a balance sheet would help highlight issues in the policy and budget priorities that are currently invisible, such as resource depletion and the run down of critical infrastructure such as transport systems or of foundation ecological or green infrastructure such as healthy rivers and their catchments.

A further step to inform decision making for northern Australia is to expand the budget paper “Economic Outlook” for Australia into a “National Outlook” which takes into account a broader set of issues that will affect the nation’s future, and breaks this down by regions – beginning with northern Australia.

Non-market production, such as looking after culture and country and caring for relatives, together with ecological production, such as clean water, soil production and climate regulation, are just as important as the production we currently count in the market place, if not more important to the functioning of our society. GDP represents perhaps only a third of total productive activity in Australia. So the full picture “National Outlook”, not just an “Economic Outlook” budget paper, would help complete the budget and inform better decision making.

Recommendation 2. Regionally Driven, Diverse and Resilient Economies

2.1 Adopt a regionally driven long term economic planning process which builds diverse and resilient economies, appropriate to the very different needs and comparative advantages of different regions – from the larger cities of Cairns and Darwin, to medium size towns such as Broome and Cooktown, to rural and remote communities.

2.2 Develop and embed in regional planning and review processes a set of agreed social, environmental and economic goals and genuine progress tests.

ACF supports the following observation from the Green Paper in support of building a smarter knowledge and skill based economy for northern Australia:

“A particular area of potential is the concept of the ‘tropical economy’. As part of one of the world’s few developed countries that includes the tropics, northern Australian businesses and institutions can meet the needs of tropical markets. This includes providing services and expertise in areas such as mining, agriculture, fisheries management, building design, marine science, disaster management and conservation.”

In considering how this is implemented across the very different regions of Northern Australia ACF commends the 2013 report of the Regional Australia Institute Rethinking the future of northern Australia’s regions – More than mines, dams and development dreams, to recommend that any strategy for northern development needs to recognise these differences to be successful, and requires more detailed assessment across these distinctive regions to identify the specific barriers to economic development in northern Australia including infrastructure, health and education. The report highlights a need for economic diversification in some regions (dominated by mining) and for prioritising value adding in others – including to develop a knowledge economy to meet the needs of growing Asian and Pacific markets.

The Regional Australia Institute report notes that to be successful in more remote regions an economic development strategy needs to “value the pristine natural environment and incorporate sustainability approaches to development”.

Policy priorities to assist with economic diversification noted in the Regional Australia Institute (and highlighted in the KLC submission to the Inquiry) include:

1. Resolving the complex impediments to using leasehold and Indigenous land and water as a flexible economic asset;

2. Reforming the governance of public investment to provide remote communities with more responsibility and say over their future.

ACF strongly recommends that federal and state/territory governments: allow adequate time for communities in the north to engage in the detail of

economic proposals; transparently engage stakeholders in planning and decision making; and take a whole of government approach to planning and management.

Fundamental to informed decision making for long term economically resilient development is recognising the full economic value of the environmental and cultural assets of northern Australia and incorporating these into government priorities and investments.

Plans for agricultural development in northern Australia must be driven by:

1. Being the right fit for country: appropriate for northern Australia’s unique environment, in particular the soils, climate, hydrology, natural values, social fabric, viability of existing or new infrastructure, access to markets.

2. Looking before we leap: the scope, scale and characteristics of agricultural development should be underpinned by science - requiring substantial and strategic investment land use capability and water use science to understand which areas may be suitable for sustainable, productive, profitable development.

In summary, economic development plans for northern Australia need to understand and reflect the enormous diversity of the regions in the north with proper valuing of the pristine natural environment and the incorporation of sustainability approaches.

Recommendation 3. Full Economic Participation of Indigenous Communities

3.1 Ensure the rights and interests of Indigenous people are core to economic development planning and regional governance processes based on the principles and practise of Free, Prior and Informed Consent.

3.2 Incorporate and build on the prior work of Traditional Owner groups in Country Based Planning processes, IPA Plans of Management, Healthy Country Plans, economic prospectus’ of various local groups, and to the pan northern Australia work of Indigenous bodies such as the North Australian Indigenous Experts Forum on Sustainable Economic Development.

3.3 Recognise and build on the public investment in Indigenous Ranger and other related programs which provide a foundation for skills and capacity development, and build on this to generate Indigenous business development opportunities, especially under fee for service contracts, by developing guidelines for government and business to design and manage contracting processes that allow smaller local Indigenous businesses to compete and to build capacity over time.

ACF commends to the White Paper taskforce the extensive analysis provided by the ANU Centre for Aboriginal Economic Policy Research (CAEPR), noting that at present, “legal Indigenous land interests cover nearly half of northern Australia and this proportion is set to expand”.

ACF highlights the CAEPR recommendation that a proper account need to be taken of the environmental benefits of land rights and native title alongside other benefits that might accrue to land owners from mining and other forms of intensive commercial land use. (Refer also to Recommendation 2)

ACF supports the call by the Northern Land Council made to the ADC Summit on Northern Development in Townsville (27 July 2014) that new models of enduring partnership are required which embrace Indigenous difference and are based on an informed consent approach around a set of Indigenous economic prospectus’ appropriate to each region and locality. This requires ongoing investment with Indigenous groups in mapping and planning, and in capacity to develop and assess options under an economic prospectus approach, informed by robust science and traditional ecological knowledge. It also requires a different approach by government and business to provide proper respect to Indigenous decision making processes by engaging early and allowing adequate time for full consideration of proposals and options.

ACF commends to the White Paper Taskforce the principles and aspirations in the report of a Kimberley Appropriate Economies Roundtables organised by ACF in collaboration with the Kimberley Land Council and Environs Kimberley in 2005, and of subsequent research reports by the Kimberley Land Council in identifying the opportunities, and the constraints, to advancing a cultural and conservation economy.

In particular, ACF recommends the following principles are applied to the development and implementation of economic development plans in northern Australia from the Proceedings of Kimberley Appropriate Economies Roundtable at Fitzroy Crossing 2005:

1. Development proposals acknowledge that culture guides economic activity for Indigenous people and appropriate development must be based on healthy country and strong culture.2. Development proposals recognise and respect the rights of Traditional Owners to make decisions about their country.3. Conservation and cultural management are recognised as important valuable and important contributions to the economy and society: The local economies of hunting, fishing, looking after people, culture and country

are valued and supported; The rights of Traditional Owners are recognised when conservation areas are

established; Senior Indigenous people are supported in the transmission of knowledge and

confidence to young people; Benefits from cultural information are returned to the holders of that information.4. The people of the region are able to participate in planning for the region, are supported by government in that process, and their views are respected and included when implementing outcomes.

ACF also commends to the White Paper taskforce these subsequent recommendations to the Parliamentary Inquiry on Northern Australia advanced by the Kimberley Land Council:1. The economic value of the environmental and cultural values of the Kimberley, and northern Australia generally, must be recognised; 2. Economic development policies should recognise and build on the unique position that Traditional Owners have, based on their knowledge of country which is relevant to: diversified economic activities such as cultural and environmental services; tourism; defence, quarantine and biosecurity.3. The Australian Government support for ranger networks across Australia is maintained while commercial opportunities from cultural and natural resource management are developed.

One particular opportunity to promote more local Indigenous business opportunities (for example in service delivery such as fencing or local infrastructure maintenance) which needs to be addressed in fee for service contracts by government and business is to avoid big contracts which squeeze out potential local suppliers and undermine Indigenous capacity.

The White Paper should recognise that the public investment in Indigenous Ranger and other related programs provides the foundation for skills and capacity for further business development in fee for service activities – as long as the contracts are designed in way that enables small Indigenous businesses to compete and to develop over time. Refer also to Recommendation 4.

Applying the principles of Free Prior and Informed Consent (FPIC)

Consistent with the explicit right to Free, Prior and Informed Consent (FPIC) contained in the 2007 United Nations Declaration on the Rights of Indigenous Peoples, ACF recommends that the following principles be adopted for future economic planning and activity in northern Australia:

1. Government must obtain Free, Prior and Informed Consent of Indigenous peoples before adopting and implementing legislative or administrative measures which may

affect them or their traditional lands, waters, or related resources (including minerals, water, cultural sites, fauna and flora)2. Indigenous People not be forcibly removed or relocated, permanently or temporarily, from their traditional lands or waters without their Free, Prior and Informed Consent.3. Indigenous Peoples must give their Free, Prior and Informed Consent before hazardous materials are stored or disposed of on or in their traditional lands and waters.4. Indigenous Peoples must have access to mechanisms to resolve disputes in relation to Free, Prior and Informed Consent with governments and other parties.

ACF supports and commends the general application of the guidelines developed by the federal Department of Environment: “Ask First: A guide to respecting heritage places and values”.

Recommendation 4. Land and water management: environmental services

4.1 Invest in land and water management as the basis for delivery of environmental services, including Indigenous Rangers, for fire management and carbon farming, pest and weed control, to build a strong foundation and the capabilities required to develop and manage other economic activities which rely on maintaining the productive capacity of the country.

4.2 Lift the current target for the employment of Indigenous rangers from 730 position to at least 1,000 rangers by 2016, with a focus on high natural and cultural heritage areas including the Kimberley, Kakadu, Cape York and the Great Barrier Reef.

4.3 Commit new long term investment to protect well-functioning ecosystems with targeted action to conserve wildlife, manage key threats and sequester carbon in biodiversity hotspots.

ACF recommends a focus on developing a resilient cultural and conservation economy in northern Australia. The scope of this economy and how it is advanced has been articulated in comprehensive reports including the 2005 Kimberley Appropriate Economies Roundtable Forum Proceedings, and the 2013 NAILSMA report: Developing an Indigenous prospectus for northern development” Second North Australian Indigenous Experts Forum on Sustainable Economic Development.

The environmental services stream in the Indigenous prospectus for northern development recognises the potential Indigenous people could play in northern Australia in meeting the growing demand of goods and services from Asia, whilst still maintaining environmental outcomes and cultural values. This stream aims to promote Indigenous involvement in Natural Resource Management (NRM) for the commercial delivery of environmental and social benefits. Likewise, this stream seeks to establish NRM programs as a means of offsetting any environmental consequences that may occur in other proposals for Indigenous economic participation, such as in agriculture.

ACF submits that the White Paper should focus on the barriers to advancing the environmental services stream, identified in the Second Indigenous Experts Forum, which include: A lack of participation or recognition of expertise in Indigenous skills; Failure to engage with Indigenous interests and landholders, particularly groups

whom are already involved in environmental services projects in northern Australia;

Overcoming existing or potential market failures to advance the delivery of goods and services;

Identifying which regions and/or Indigenous groups are most appropriate to implement existing or potential proposals; and

Uncertainty on what structures, processes and criteria are necessary to build robust enterprises and create permanent employment opportunities in order to meet economic ambitions and targets.

Boost the Indigenous Ranger programIndigenous land and sea management is a highly successful and growing sector of the Northern Australian Economy. Indigenous ranger programs are highly successful in terms of job retention, employment of women, and local community ownership (Allen

Consulting 2011). They provide entry level employment for unskilled and semi-skilled workers but also a clear career structure for those with the capacity and ambition for up-skilling. This includes on-the-job training, obtaining trade certificates and opportunities for improving literacy and numeracy. The success of this sector over the last two decades has resulted both from not only the enduring commitment of local communities, but also the willingness of governments to tailor the programs to ensure they are practical and workable for remote areas.

ACF recommends that the current target for the employment of Indigenous rangers is lifted from 730 at least 1,000 rangers by 2016, with a focus on high natural and cultural heritage areas including the Kimberley, Kakadu, Cape York and the Great Barrier Reef.

Since federal support for Indigenous rangers was established in 2006 this program has demonstrated enormous success in terms of conservation outcomes and cost effective Indigenous training and employment. A 2011 Allen Consulting Group assessment found the true cost of the program was 23% lower than the program budget because of reduced welfare payments and increased taxation revenue. In addition, more than $12million accrued in benefits flowed to local communities serviced by the program, beyond those people directly employed. Indigenous ranger teams are now managing over 1.5 million square kilometres of land and sea country with over 90% of projects managing matters of National Environmental Significance under the EPBC and over 60% addressing key threatening processes such as the invasion of pests and weeds. These benefits accrue to individuals and their communities, but also reduce government spending in other service areas, such as law enforcement and health costs.

The Indigenous Ranger program provides the training and local capacity to build other economic opportunities in environmental fee for service contracts, tourism, bush products and enterprises consistent with the goals of Indigenous people to keep their country healthy and build strong community livelihoods.

ACF recommends the federal government commit new investment to protect well-functioning ecosystems with targeted action to conserve wildlife, manage key threats and sequester carbon in biodiversity hotspots.

This includes increasing federal investment, to be matched by States and Territory, in research and development to support management, understanding and monitoring of the Australian environment and the impacts of climate change on ecosystems; to implement a nationally consistent accounting and reporting of conservation progress and its associated economic and social benefits, and to invest in long-term strategic national connectivity conservation programs which reverse the decline of biodiversity in Australia.

Critical success factors for building a durable cultural and conservation economy

ACF has collated an analysis of the preconditions and critical success factors for the long term economic sustainability of cultural and conservation economy activities with Indigenous communities with particular reference on the role of the federal government agencies. The following summary draws on a variety of case studies and research by other organisations including the KLC and the Kimberley Appropriate Economies Roundtable, NAILSMA, and the ANU Centre for Aboriginal Economic Policy Research (CAEPR).

The Critical Success Factors are:

1. Security of tenure, with community support and mandate from traditional owners. A strong mandate from traditional Aboriginal owners and high levels of community support, with effective participatory planning, governance models and operational structures.

2. Strong Indigenous leadership. A key driver of success is engagement of senior community leaders. These leaders need to be appropriately remunerated for their work.

3. Clear relationships with community organisations, particularly host organisations. Enterprises need independent incorporation and/or defined working arrangements, set out in Service Level Agreements, with the organisations hosting or supporting them.

4. Capacity building, training and organisational development. The more sustainable organisations have a strong focus on continually growing and strengthening their organisation particularly through building the capacity and skill levels of their staff.

5. Access to science and research support. The strongest projects have developed when there are researchers with ‘western science’ approaches operating alongside Indigenous managers with their local ecological knowledge and skills using a ‘two tool-box’ approach involving long-term partnerships between effective research institutions and Indigenous communities.

6. Coordinated delivery of support by government agencies. It is more effective and efficient to negotiate a broad collaborative funding arrangement for an area rather than negotiate collaborative arrangements for individual projects on a case-by-case basis.

7. Longer-term partnerships with government agencies and/or businesses in the region. Indigenous groups which, by virtue of their location, skills and networks, are able to attract longer-term partnerships with government agencies and businesses, are more likely to successfully develop as sustainable organisations. Where government agencies have been able to deliver funding for periods of three years or more, the quality has increased significantly, due to security of funding for staff, equipment and planning.

8. Resources and time allocated to participatory planning and negotiations with Indigenous groups so that support is more tailored to local needs and priorities. Government agencies that have dedicated staff either in the field, or who are able to visit Indigenous groups for reasonable periods of time, can ‘put a face’ to a program and work with Indigenous groups and land councils on developing their projects. This is seen as more successful than the traditional grant application model. Where there is consistency of government staff working on a program, the benefits of this approach increase dramatically.

Recommendation 5. Tourism Development 5.1 Invest in appropriate tourism development - which protects and maintains the natural and cultural assets of the north and which spreads the benefits of tourism revenue and employment to more people in rural and remote communities, particularly to Indigenous communities.

5.2 Consistent with the recommendations of the KLC, NAILSMA, QTIC, Advance Cairns and others, include policies that result in increased workforce participation and business development opportunities for Indigenous people in the tourism sector.

5.3 Provide policy support to the development of new and innovative tourism partnerships and products, to provide new tourism experiences and supporting services, including a new federal program to support a package of training and infrastructure, targeted to remote Indigenous communities, to boost tourism in areas with declared natural and cultural values.

ACF highlights the following issues raised in the Green Paper That tourism plays an important role in the northern Australian economy –

particularly in employment terms. For example: Tourism related employment is nearly triple the national average in the Northern Territory with one in eight Territorians employed in the sector (Tourism NT).

That the vast majority of visitors to northern Australia (around 90 per cent) are domestic tourists (Tourism Research Australia 2013).

That there has been a recent decline in tourism industry particularly in international visitor numbers: down around 17 per cent since 2005 compared to national growth of almost 18 per cent (Tourism Research Australia 2014) due to northern Australia being seen as a relatively remote and high cost tourist destination.

That by global standards local tourism products are underdeveloped with increasing competition from lower cost, more accessible destinations, including in south east Asia.

ACF strongly supports the proposition in the Green Paper that:“A concerted effort to reinvigorate the north’s tourism industry will ensure it meets its full potential. World class facilities, a well trained workforce and commercially sustainable transport.”

Such a concerted effort needs to be based on research commissioned by Tourism Australia, which found that Australia ranks as the world’s number one destination for “world class beauty and natural environment”, coming in ahead of Hawaii, Switzerland, New Zealand and Canada as having some of the most naturally outstanding places on earth.

The nature and culture based tourism sector is a relatively stable and significant driver of income and employment across all of Australia, with even higher significance in northern Australia. A 2012 report on nature based tourism in Australia by the Tourism and Transport Forum found that 61 percent of international visitors in 2011 engaged in nature based tourism (3.3 million) with an associated expenditure of $12.78 billion. In addition, there were 12.9 million domestic overnight visitors (not including day visitors) engaged in nature based tourism spending $12.35 billion in 2011. The value of the our national landscapes is reflected in programs such as Australia’s National Landscapes Program and the significant focus and investment by Tourism Australia in marketing of Australia’s natural environment. Refer Australia’s National Landscape Program: 2012 Outcome Report (Department of Environment

and Tourism Australia) and Tourism and Transport Forum, Nature based Tourism Report, March 2012.

Northern Australia’s Natural AdvantageIn a 2013 report on the future of tourism in Queensland, commissioned by the Queensland Government, the CSIRO highlighted Australia’s “Natural Advantage” in the face of the global megatrend of biodiversity decline due to continuing habitat damage, overexploitation, pollution, invasive alien species and climate change.

The key implication for tourism, in Queensland and across northern Australia, is that maintaining the health of world class natural assets will continue to attract tourists in greater numbers and, in the context of the impacts of megatrends globally, will hold even greater value to tourists coming to Australia in the future. The effective management and promotion of natural assets will help fetch a premium price premium in global tourism markets. (Refer The Future of Tourism in Queensland: Global megatrends creating opportunities and challenges over the coming twenty years. CSIRO, 2013)

The network of parks and protected areas including World Heritage Sites in Northern Australia should be regarded as critical infrastructure for regional economies requiring investment and management as for any other community infrastructure. The growth and connectivity of the protected area system on land and sea is critical to regional economies.

Consistent with CSIRO report on megatrends and Queensland Tourism, there is an increasing expectation that visitors have an opportunity to experience Indigenous cultures. This may be provided through local interpretive centres and Indigenous guided tours or other local small businesses associated within or near national parks and other types of conservation reserves. In order to expand tourism job opportunities, particularly to enhance Indigenous participation in tourism, it is vital that Traditional Owners are able to participate in the design, and decision making on tourism activities in their own areas. This is particularly important to achieve a sense of managed rather than uncontrolled visitation.

In developing a “concerted effort to reinvigorate the north’s tourism industry” ACF commends to the White Paper Taskforce the general direction and recommended actions of Queensland Eco-tourism Plan 2013-2020. In particular, ACF highlights the recommendations under the section in the plan to “facilitate investment into eco-tourism products” and to “grow Indigenous opportunities”. This will require innovative new capacity building partnerships and marketing arrangements between experienced tourism operators, Indigenous organisations, non government organisations and government agencies. ACF is currently exploring such new partnership opportunities on Cape York and in the Kimberley.

ACF recommends a new federal program to support a package of training and infrastructure, targeted to remote Indigenous communities, to boost tourism in areas with declared natural and cultural values.

This includes training, partnership development, critical infrastructure needs, and ongoing business development support to enhance the management of National Heritage areas in the Kimberley, new joint managed National Parks (CYPAL) and nature refuges on Cape York and other areas with high natural and cultural values. The focus of the program would be to develop quality and integrity control systems for tourism activities so as to expand opportunities for Indigenous owned and managed high quality nature and culture based visitor experiences.

Recommendation 6. Water Development, Agriculture and Industry

6.1 Establish a moratorium on the industrial and commercial development of river systems until scientifically robust National Water Initiative compliant plans are in place and used to inform future decision making.

6.2 Recognise the freshwater river systems in northern Australia as nationally significant with a national goal to maintain their hydrological connectivity.

6.3 Embed the lessons of costly mistakes from irrigation schemes in southern and northern Australia into the decision making processes under a White Paper plan and take a precautionary approach based on robust and independent science.

6.4 Make research and development a priority for tropical agricultural systems with best practice water management including to: retain and adequately resource the National Water Commission, and establish a new Cooperative Research Centre in the north that achieves

these purposes.

ACF highlights the following observation in the Green Paper:

“Water is a critical resource for both the northern economy and the environment. But northern Australia’s variable climate, together with gaps in understanding of surface and groundwater systems, can hinder the development of new water infrastructure and more reliable access to water resources. This has negative implications for both industry and urban development.”

In particular the challenges identified in expanding irrigated agriculture in northern Australia:

“High evaporation rates are a feature of the north — Lake Argyle in Western Australia loses a quarter of its volume through evaporation every year. This presents unique challenges for the development of water resources, with traditional methods of storing water less effective in the north than in the south.”

Plans for economic development in northern Australia, particularly agricultural development based on large scale water use, must learn from the mistakes of the past and be based on learning to live off environmental interest, not running down our environmental capital.

Many examples in both northern and southern Australia could be cited from past experience, which 25 years ago prompted the launch of Landcare. The Murray Darling Basin system is a prime example of how poor planning can result in long term economic pain – the restoration of the MDB is now costing the federal government at least $13 billion to fix. A poor understanding of water science in the early years of the MDB combined with the fragmented short term views of stakeholders across multiple jurisdictions resulted in the unsustainable development of the river system. We cannot afford to repeat these mistakes in the north.

To avoid repeating these costly mistakes and set a pathway for a prudent, environmentally sustainable, future for northern Australia requires

A moratorium on development of river systems until scientifically robust, National Water Initiative compliant plans, are in place;

Recognising freshwater river systems in northern Australia as nationally significant with a national goal to maintain their hydrological connectivity.

Existing commitments for managing water resources should be honoured including fully adopting and implementing the National Water Initiative (NWI) water reform framework.

Indigenous ecological knowledge should shape development plans and Indigenous interests recognised in water planning and management, including the development of ‘Strategic Indigenous Reserves’ as a central element of water plans.

The Northern Australia Land and Water Taskforce found that the development of groundwater resources provides the best prospect to support new consumptive uses of water. The most prospective provinces are large and extend well beyond jurisdictional boundaries. Mosaic agriculture has been identified as an appropriate model for new agriculture in northern Australia that warrants further consideration.

Address the real issues of market viability, and the sustainable opportunities for agricultural development, not the myth of the northern foodbowl.

Based on the evidence of failed irrigation schemes and of the more pressing issues of market access and sustainable agricultural systems, ACF submits that the White Paper shift the focus away from grandiose plans to create a ‘food bowl’ and focus on more viable smaller scale opportunities and the actual barriers to markets of high value products.

Northern Australia has poor soils, harsh climatic extremes, uncertain water availability, long distances to markets and costly infrastructure needs. This underlies the history of failed agricultural schemes in the north. The 2009 Report of the Northern Australia Land and Water Taskforce found that: “Contrary to popular belief, water resources in the north are neither unlimited, nor wasted. Equally, the potential for northern Australia to become a ‘food bowl’ is not supported by evidence.”

The physical and climatic characteristics of northern Australia need to be better understood as the basis for best practice in the sustainable development of water resources in the future, and (for southern policy makers) to fully appreciate the differences compared with southern Australia of a tropical climate in the north combined with complex wet/dry season hydrology and ecosystem interactions. The simplistic notion of abundant water going to waste needs to be dispelled.

The characteristics of northern Australia which need to be embedded in more informed decision making about future economic choices in the north include:

1. The lack of suitable soil and water resources for intensive agricultural development. Whilst there are areas that are suitable for irrigation development, they are scattered across the landscape rather than occupying large tracts of country.

2. Dispelling the myth of “wasted water” in northern Australia. Rainfall and runoff support wetlands, estuaries and coastal fisheries that underpin Indigenous and non-Indigenous economies and livelihoods. Redirection of water to other uses involves complex trade-offs with existing social, economic and environmental benefits – such as impacts of downstream fishing and prawn industries which rely on natural river flows.

3. The climatic and physical constraints of access to water due to: The high rainfall for a few months per year in a tropical climate being followed

by almost no rain for the rest of the year. Evaporation and plant use of water is so high that on average there is very little water for ten months of the year.

Most rain falling near the coast and running out to sea quickly, making it hard to capture and store for use. This also makes it inaccessible to agricultural development inland.

Highly seasonal and highly variable rainfall along with high evaporation making it hard to store water without large and deep dams, for where there are few, if any, good sites.

The landscape being too flat to be suitable for dam-building and water storage on the scale that would be required to support large-scale irrigation development

Capturing and storing water at the scale contemplated by food bowl proponents would be very inefficient and costly and not meet public cost-effectiveness criteria for investment.

Climate change impacts are predicted to make northern Australia’s variable climate even more difficult for agriculture with changing rainfall patterns, increasing temperatures and more frequent and severe cyclones and wildfires.

In addition to these points it should be noted that much of the land in the north is already being used for pastoralism, including Indigenous pastoral land and a focus should be on more sustainable, productive, high value of this existing industry – in the context of applying a Land Use Compatibility Framework (see Recommendation 1).

More viable options for agricultural development in northern Australia include development of smaller cropped areas, irrigated with groundwater, which are scattered over the landscape as part of a mosaic of land uses and tenures comprising natural savanna, cropped, grazed, irrigated land and protected areas. Subject to further study, and based on available science an additional 600 gigalitres of groundwater might be made available to support new water consumptive uses - enabling the area of irrigable land to increase by around 20,000 – 40,000 hectares.

To advance environmentally and commercially sustainable agriculture and water use in northern Australia requires well resourced and independent institutions which all stakeholders can trust and which provide robust evidence and analysis. The alternative is to set up the conditions to repeat costly mistakes and create new “water wars” in the long term.

Make research and development a priority for tropical agricultural systems and best practice water management including to retain the National Water Commission and to establish a new Cooperative Research Centre in the north that achieves these purposes.

Recommendation 7. Mining and Energy

Establish a robust and consistent regulatory regime across all jurisdictions in northern Australia to advance a responsible mining sector.

Place a moratorium on unconventional gas exploration and development (CSG, shale gas) until extensive studies are conducted on cumulative long term environmental impacts.

End plans for new or expanded uranium mining and promote responsible radioactive waste management based on transparent process, sound science and community consent.

Halt the expansion and development of new coal mines. Establish policy enablers which promote investment in a strong renewable

energy economy (including expertise in the deployment of appropriate technology in rural and remote areas), based on the long term comparative advantages of northern Australia in solar and other renewable energies.

ACF recommends a more robust and consistent approach is taken to regulating the Australian mining sector across the jurisdictions of northern Australia, including to identify opportunities to harmonise regulation where possible and where this results in a more transparent and responsible mining sector.

ACF’s tests of a more transparent and responsible mining sector include: Enhanced transparency and scrutiny of sector financing, including Australia

becoming a full party to the Extractive Industries Transparency Initiative (EITI) No exploration or mining activities in ecosystems or habitat of high conservation

value including in the conservation estate. No exploration or mining activities in areas of high cultural significance without

free, prior and informed consent from Traditional Owners The assured commitment and demonstrated capacity to full rehabilitation and

mine site remediation, including mine closure plans at the start of operations and dedicated and independently assessed rehabilitation bonds covering the full cost of rehabilitation.

A more robust, independent and transparent state and federal regulatory regime, includes enhanced capacity for on-site monitoring and intervention effective and independent review, dispute and grievance mechanisms for parties

affected by mining operations regular independent review of the sector’s performance in relation to best

practice agreements and enduring community benefits outcomes with Aboriginal landowners.

Due to its inherent and unacceptably high risk, ACF opposes any mining of uranium. Uranium is a unique mineral which has a wide range of serious long term risks including accidents with its use in generating energy (as seen at Fukushima, a continuing nuclear crisis directly fuelled by Australian uranium), unresolved waste management issues, military weapons links and significant nuclear safety and security concerns. ACF supports no further new or expanded uranium operations and the accelerated closure and comprehensive rehabilitation of existing operations.

ACF believes that a moratorium needs to be placed on unconventional gas including coal seam gas and shale gas, until more extensive scientific studies of long term water and land impacts are conducted.

ACF opposes the expansion of coal mining due to the costly climate change impacts from the burning of coal – for which northern Australia, particularly Indigenous communities, will pay a very high price in the future. (Refer report: Risks from Climate Change to Indigenous Communities in the Tropical North of Australia, 2009)

Clean, Renewable Energy OpportunitiesACF highlights the following observation in the Green Paper which should be taken as a big opportunity and area of focus in the White Paper:

“Communities and industries outside the main grid run on stand alone power systems and rely mainly on diesel fuel which is more expensive and has limited capacity. These off-grid systems are managed by government energy providers or private contractors. Renewable energy, such as photovoltaics and wind turbines, is increasingly being used as an energy source but still at modest levels.

The future global energy economy will rely more and more on smart deployment of cleaner, cheaper (over the life-cycle of the infrastructure) renewable energy – in which northern Australia has a clear comparative advantage, particularly in solar energy.

Establishing a policy environment conducive to investment in renewable energy will enable communities across the north, including the cities and regional towns, to become energy self-sufficient and to build an innovative renewable energy knowledge economy with expertise and skills in the deployment of appropriate renewable energy systems into rural and remote regions, and with particular application in other tropical regions around the world.

CONCLUSION AND NEXT STEPSACF submits that a sustainable and resilient economy for northern Australia will depend on maintaining and managing a healthy environment. It is not just a question of balancing economic development with the environment, it is a recognition that sustainable economic development in the north, which retains globally significant natural and cultural values, depends on and requires a plan of action based in an additional policy driver to those listed in the Green Paper, namely:

Maintaining and strengthening the natural, social and cultural values of northern Australia in the context of the global megatrend of biodiversity decline as identified by the CSIRO.

This submission sets out a plan of action that would begin to address this policy driver. This plan is not a complete prescription, it is a work in progress. ACF also understands the need for sustainable and resilient economic development in the north and is open to other ideas and plans that meet the three genuine progress tests we have set out in this submission. We believe it is possible to develop a more inclusive vision for a better future for people and nature in northern Australia – one that gains broader community support, provides more certainty to business, and helps address disadvantage in the north, particularly of Indigenous communities.

Next Steps in Developing and Implementing the White Paper

Rather than develop a grand blueprint plan for the north, ACF strongly recommends the White Paper adopt and embed an iterative and adaptive planning process to formulate, and regularly revise, economic plans for northern Australia. This approach will provide more opportunity for community input and therefore provide more up to date and accurate information to inform federal policy, budget priorities and investments in infrastructure, taking into account changing external circumstances, to drive better economic, social and environmental returns on these investments.

Developing and implementing the White Paper will require genuine collaboration with local communities and a planning approach which is compatible with local cultures and conditions. At a minimum, a compatible approach to economic development planning in northern Australia requires allowing sufficient time to consult with local communities in the north, especially in more remote areas, and particularly for Indigenous communities which require time to properly consider within their own communities based on genuine free, prior and informed consent.

Appendix 1: The Scope and Application of Genuine Progress Tests

Test 1. Environmentally sustainable?

Is the productive capacity of the land and river systems being maintained and globally-significant natural and cultural values are safeguarded?

Northern Australia enjoys significant comparative advantage in terms of its natural and cultural assets. Environmentally sustainable economic development in northern Australia requires economic activity and infrastructure compatible with maintaining these world class natural and cultural values, which underpin the tourism industry and other land and water uses, including pastoralism and fisheries.

To be genuinely sustainable, the long term plans for northern Australia must:

1. Protect biodiversity and restore ecosystem resilience through integrated approaches which link social, cultural and economic dimensions of people and place, and recognise Indigenous peoples’ roles and rights.2. Support Indigenous peoples’ sustainable management of their land and resources and encourage mutual learning about contributions to sustainability.3. Ensure a comprehensive, representative and well managed network of protected areas with high conservation and cultural values.

Test 2: Economically resilient?Is the economy becoming more diverse, resilient, and sustainable and measurably improving the well-being of communities that live in the north?

A resilient economic future for northern Australia begins with environmental sustainability.

The other key characteristics of economic resilience include: Strategies which are tailored to the different needs, barriers and enablers of

different regions across the north, based on genuine engagement with, and informed consent by local communities.

Diversity of economic activity appropriate to local conditions, especially to avoid the boom and bust cycles characteristic of the resources sector or reliance on a single dominant industry.

No one size grand plan will fit all across the north.

Environmental services can provide the foundations for reliable employment and income in all rural and remote communities. These can include employment in industries such carbon farming as well as economic opportunities in sustainable tourism, well managed pastoralism, ground water supplied horticulture (where this is based on robust science) and other value adding industries in arts, bush products and services.

An environmentally sustainable, regionally appropriate and diverse suite of economic activities will be enable northern Australia to become more resilient to future economic and climate shocks, enhancing the engagement and skill base of the local labour force and providing longer term income security to help maintain social support services.

To achieve this ACF believes the White Paper needs to consider and recommend:

1. Policy, market incentive and natural resource management initiatives which provide for environmentally sustainable economic development compatible with conserving Northern Australia’s globally significant natural and cultural values, with particular attention to likely climate change impacts such as salt water intrusion into wetlands from sea level rise, changing fire and burning patterns, and increased spread of pests and weeds;

2. Policy, regulatory, market and incentive instruments which support low-footprint, high-socioeconomic-benefit industries and land uses, including environmental services and carbon farming, appropriate tourism, and best practice in water use and renewable energy in rural and remote areas – which can form the basis of future export industry in knowledge, skills and technology.

Test. 3. Fair and equitable?

Are the rights and interests of Indigenous communities being respected with full participation in economic development?

Economic development in the north and Indigenous socio-economic development must be pursued together since neither is sustainable, nor equitable, without the other.

ACF believes a stated goal of the White Paper should include:

To support Indigenous peoples’ sustainable management of their land and resources and encourage mutual learning about contributions to sustainability.

ACF commends to the White Paper Taskforce the submissions of Indigenous organisations in northern Australia for further detail on this test, measures and actions including from the Kimberley Land Council and NAILSMA.

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