When clouds are seen, wise men
put on their cloaks;
When great leaves fall, then
winter is at hand;
When the sun sets, who doth
not look for night?
Richard III, Act 2, scene 3.
My previous post focussed primarily on the social cataclysm
engulfing remote communities through the primary lens of social and property
violence and the impact of anti-social accelerants such as alcohol. Rather than
focussing on spelling out the inevitable and significant implications for
families, children, and the social stability of the communities, I sought to
argue that there was a shortfall in the capabilities of governments to ensure
citizens were able to live peaceful lives, thus raising questions regarding the
legitimacy of governments.
In this post, I turn my attention to some of the sustained
and systemic shortfalls in public investment in remote communities, and particularly
capital investment requirements. While it would be foolhardy to argue that
adequate public investment is all that is required (sufficient) to meet the
complex challenges facing remote communities, I would ague that it is a
fundamental prerequisite (necessary) for doing so. Of course, even so, public investment must be
well targeted, sustained, and be well designed. Accordingly, if we turn the
proposition on its head, long term absence or under-provision of high quality public
investment can be seen as a fundamental precursor, if not a major cause, for
ongoing social dysfunction within remote communities. We cannot expect to
address the social challenges in remote communities without ensuring that
public investment is adequate and high quality.
Of course, the overwhelming majority of Australians have
minimal experience of the conditions of remote communities. Families resident
in remote regions constitute only 2.3 percent of Australian families (link
here). While we may complain about the quality of government services, we
expect, and mostly receive, a first-world level of government service provision
from three levels of government. This is far from being the case in remote
Australia.
A number of recent reports relating to infrastructure provision
illuminate this observation.
Infrastructure Partnerships Australia (IPA), a body not
previously on my radar, has recently released an extraordinarily useful report
titled Remote Communities: Improving
Access to Essential Services (link
here).
According to its website, IPA is
Australia’s
longest standing infrastructure think tank, formed in 2005 as a genuine and
enduring policy partnership between Australia’s governments and industry. We
exist to shape public debate and drive policy reform for the benefit of the
national interest.
Our
public sector membership is drawn from Commonwealth, state and territory
infrastructure, planning, environment, finance and treasury departments, as
well as government-owned corporations.
Our
private sector members include major financiers, law firms, contractors, consultants,
equity and debt investors, infrastructure technology providers, super funds and
operators.
The IPA Remote Communities report is extraordinarily
accessible, setting out key data points and utilising clear and striking
graphics. I recommend readers take a look at it (not least because I cannot do
it justice in this brief post). The report seeks to do two things. First, it lays out in stark terms the
essential services shortfalls facing remote communities: communities
‘consistently experience poor water quality services’, ‘electricity supply is
often unreliable’, and ‘have limited access to telecommunications services’.
Contributing factors include ‘isolation’, ‘lack of meaningful engagement with
communities for service delivery’, ‘inequality barriers’, lack of resources’ to
utilities charged with delivering these essential services; a ‘systematic lack
of transparency and reporting’, ‘skills and education shortages’, and
inconsistent regulation and poor governance continue to impede improvements’.
This is a pretty challenging set of constraints. The report then goes on to
identify a range of technological possibilities, noting that ‘There are a
variety of established technologies and governance approaches being applied
across all jurisdictions — but they are coming at a glacial pace for most
remote communities.
The Report’s second
aim is to lay out the way forward. It argues for establishing a national
minimum service baseline based on government commitments to National Cabinet,
and a process whereby governments are accountable for meeting the baseline. It
suggests existing Community Service Obligations should be ‘evolved’ or
transitioned into Community Infrastructure Partnerships which lock in
obligations to innovate, improve transparency, provide a social licence and
facilitate collaboration and coordination between sectors. Funding and
financing mechanisms for remote infrastructure should be reviewed and updated
and regulatory reform undertaken to support community infrastructure
partnerships.
The report appears to be unaware of the recent moves (yet
to be included in the Productivity Commission Information Repository) to
establish a new Closing he Gap target for community infrastructure (link
here and link
here ). The new target is framed as follows:
Target
9b: By 2031, all
Aboriginal and Torres Strait Islander households: Within discrete Aboriginal
and Torres Strait Islander communities receive essential services that meet or
exceed the relevant jurisdictional standard; In or near to a town receive
essential services that meet or exceed the same standard as applies generally
within the town (including if the household might be classified for other
purposes as a part of a discrete settlement such as a “town camp” or “town
based reserve”.
The new target 9b differs from the IPA recommendation
insofar as it accepts current jurisdictional essential services standards
(which may in fact require strengthening – see below), whereas the national
approach advocated by the IPA Report would ensure both uniformity and reduce
the likelihood that some jurisdictions standards will lag national
expectations. One would hope that the forthcoming Productivity Review of the
National Agreement (link
here) would recommend that the Joint Council consider amending target 9b to
ensure appropriate/strengthened national standards for remote essential
services are applied.
The IPA report is an exceptionally comprehensive and far
sighted assessment. It proposes an extremely ambitious agenda; one which will
be highly susceptible to governments’ reluctance to commit to new expenditures,
and governments’ propensity to baulk or fall at the implementation stage.
Nevertheless, this is an extraordinarily important report, and deserves wide
circulation and attention across the Indigenous policy domain.
Notwithstanding the vision and focus the Report’s authors
have brought to this analysis, I do have one criticism. The focus on water,
power, and telecommunications is in my view too narrow. The policy reforms
advocated by the Report should be broadened to include sewerage, roads, cadastral
and related land surveys, and most importantly, housing in remote communities.
The vast bulk of housing in remote communities is public housing, and it is a
core component, a core foundation, for the associated essential services that
we normally see as infrastructure. As the largest public housing peak body in
the US notes on its website (link here):
Public
housing plays a critical role in our nation’s public infrastructure, providing
families with a stable home and helping them gain access to other services,
including education and health. When we invest in public housing, we help
low-income families achieve self-sufficiency and improve life outcomes, but we
also generate economic growth, bolster productivity, and positively impact
support services while significantly decreasing costs.
Of course, the IPA is not alone in Australia in failing to
see social housing as infrastructure. Infrastructure Australia was very slow to
acknowledge that social housing is infrastructure (link
here and link
here) and when it did, it never really gained traction within the
bureaucracy and beyond.
Indeed, in the last year of the former Government’s term,
it took steps to explicitly ensure that Infrastructure Australia did not
consider social housing. In April 2022, the Shelter WA website reported (link
here) that the former Deputy PM and Minister for Infrastructure, Transport
and Regional Development, Barnaby Joyce, issued a Statement of Expectations to
the Board of Infrastructure Australia (link
here) that omits inclusion of social infrastructure such as social and
community housing in IA’s list of priority sectors.
The Shelter newsletter states:
…As reported by Community Housing
Industry Association (CHIA), regrettably, the new statement of expectations
removes social infrastructure from the list of priority sectors despite its
inclusion in IA’s 2021 Infrastructure Plan, and affordable housing
being the most frequently cited infrastructure gap in regional areas. This is
step backwards in efforts to treat housing as essential infrastructure.
What the Shelter website does not mention is that housing
shortages are endemic in remote and regional Aboriginal and Torres State
Islander communities, and that Aboriginal and Torres Strait Islanders are
over-represented in waiting lists for social and community housing in regional
and urban locations. Moreover, if one were to aggregate the outstanding remote
community housing needs across regions or jurisdictions and treat addressing them
as individual projects, the financial costs would exceed the capital costs of
many of the major economic projects that Infrastructure Australia recommends (and
the North Australia Infrastructure Facility funds: link here).
The failure to gain traction is evident in the recent
release of the Independent review of Infrastructure Australia, and the
associated Government Response to the Review (link
here). The Independent Review recommended (pages21-22) that Infrastructure
Australia’s remit be expanded to include social infrastructure, albeit without
seeking to define or stipulate just what such a term covers:
The
Review recommends that Infrastructure Australia’s remit be expanded to include
social infrastructure (where it is relevant to the infrastructure investment
project, or place and precinct in question) as well as future investment
challenges where Infrastructure Australia’s position as the national advisor
best enables it to incorporate those challenges in its advice and analysis.
Disappointingly, (particularly given the Government
decision to make Infrastructure Australia
a more influential adviser on infrastructure matters) the Government
Response adopts the Barnaby Joyce approach, and effectively set this
recommendation aside:
Support in part. The Government considers Infrastructure
Australia’s focus should be on nationally significant projects relating to
transport, water, communications and energy infrastructure, in support of
Australian Government functions. From
time to time, it may be appropriate for Infrastructure Australia to consider
social infrastructure implications where it is part of broader network analysis
or place-based project advice. Where required, the Government can request this
work through the Statement of Expectations. The Government notes that this
approach minimises any duplication with regional and urban policy and program
functions within the Australian Government…
For those who require a translation from bureaucratic
parlance, this means ‘not on your nelly’!
Yet the Infrastructure Australia Regional Strengths and
Infrastructure Gaps Report released recently (link
here: Overview report) identifies the
availability, diversity and affordability of housing as the most common
identified gap across regional Australia (page 11) and in relation to
Indigenous communities’ concerns, noted (para.4.7.7 page 38):
The
availability, affordability and quality of housing was highlighted across
consultations as being a key issue for First Nations communities. The 2019
Australian Infrastructure Audit (Challenge 126) identified that housing is not
meeting the needs of First Nation communities across remote Australia,
exacerbating health, education and well-being outcomes. Overcrowding is leading
to poor outcomes for First Nations peoples in Remote Areas, which is also
identified on our Infrastructure Priority List.
It is worth contextualising these persistent shortfalls.
This week, Infrastructure Australia
released its 2022 Market Capacity Report which identifies significant risks and
pressure on the infrastructure pipeline currently in place across the nation.
But more saliently for Indigenous citizens in remote Australia, the report
notes that the current 5 year pipeline of major public infrastructure projects
‘is valued at $237 billion - an increase of $15 billion in the last 12 months
and equivalent to 6.7% growth’ (link
here). Or to contextualise the Commonwealth’s effort in relation to remote
housing, where it has allocated $100m for the NT over five years, this
represents on my calculation 0.04 percent of the total five year public infrastructure
pipeline.
Taken together:
- v the
IPA Report outlining the extraordinary remote infrastructure challenge (albeit narrowly
focussed);
- v the
current inability of the Productivity Commission’s Closing the Gap Information
Repository to provide information on housing progress (target 9) in remote
areas — it is listed as future reporting (link
here); and
- v the
deliberate decisions to narrow the remit of Infrastructure Australia to exclude
advice on disaggregated remote social housing needs in favour of geographically focussed
commercial infrastructure;
all provide a rather pessimistic insight into the longstanding
systemic challenges driving under-investment in public infrastructure within remote
communities. These challenges are exacerbated by the deliberate decision of the
former LNP Government (not reversed by the current ALP Government) to not continue the public investment in
remote housing provision in the 2008 National Partnership Agreement on Remote
Indigenous Housing (link
here; link
here and link
here).
Yet the public investment shortfall is deepening as the challenges
of climate change are rising (link
here).
A recent research note in the Medical Journal of
Australia by Simon Quilty, Norman Frank Jupurrula, Ross Baillie and Russell
Gruen (link
here) is titled: Climate, housing, energy and Indigenous health: a call
to action. The authors first paragraph states:
Most Australians take safe
housing and uninterrupted electricity for granted. Yet in remote Indigenous
communities, low quality poorly insulated housing and energy instability are
common. Most houses require prepaid power cards, resources are meagre,
financial literacy is low, and people often have to choose between power and
food. New evidence reveals extreme rates of prepaid electricity meters’
disconnection in these communities, making people with chronic diseases who
depend on cool storage and electrical equipment particularly vulnerable. The
convergence of excessive heat, poor housing, energy insecurity and chronic
disease has reached critical levels in many parts of northern Australia, and a
multisectoral response is needed to avert catastrophe. Medical professionals
have a key role to play.
The article is short and highly recommended. Among other things, it argues for the
strengthening of building codes and housing standards in remote settings, not
the acceptance of existing standards.
To sum
up,
over the past two decades at least, public
funding in core capital investments related to essential services, social
housing, and community infrastructure has been severely deficient. This has
undoubtedly reduced the levels of recurrent funding by governments in remote
settings, and also limited the opportunities for local employment, and stronger
economic development and progress. It is undoubtedly one of the key
contributors to limiting the opportunities available to the rapidly growing
youth cohort within communities. While reversing the sustained under-investment
is not sufficient to address all the challenges facing residents of remote
communities, it is a necessary element in any viable transition to a more
stable future for remote communities. The onset of climate change is making
addressing these challenges even more urgent.
Yet relevant policymakers appear to be both deaf and blind
to the systemic and structural nature of the crisis their predecessors have
initiated and for which they have the current responsibility to address. It is
past time for the Commonwealth to step up, commit funding and ensure that the
states and Territory are focussed on these priorities, which after all are core
responsibilities of governments.