Pursuant to section 28 of the Regions Copyright Act 2009 (the Act), I submit for your information and presentation to Parliament the annual report for the Regional Development Trust of Western Australia (the Trust) for the financial year 2016-17. Section 5(2) of the Act relates to the allocation of Regional Charge funds between subsidiary accounts. The result of the state elections has marked a change in the administration of the Fund from a political and political basis.
Prior to the creation of the fund, there had been significant underinvestment in regional WA, both in terms of facilities and services. The fund has returned $620 million to the consolidated account. through the operation of an imposed spending framework and the operation of the statutory ceiling. The compass should at all times be the foundation's statutory purpose and respect the hypothetical nature of.
Under Section 12 of the Act, the functions of the trust are – (a) to provide advice and undertake. Section 9 of the Act, subsection 1 – The Minister may, with the consent of the Treasurer, authorize the expenditure of moneys accruing to the Fund for the following purposes – (a) to provide infrastructure. services in regional Western Australia;. Section 9 of the Act, subsection 2 – These are charged to the fund – (a) expenses approved in accordance with
Article 5(1) of the Act stipulates that the fund consists of the following ancillary accounts:. a) the Country Local Government Fund;.
TRUST MEMBERSHIP
In 2005 Karlie joined the CBH Group to continue this work and in 2008 took on the role of Managing Director of Grower and External Relations where she is responsible for managing CBH's relationships with grain growers, rural communities, federal, state and local governments, the media. and industry groups. Karlie is a member of the Executive Management Committee at CBH and is heavily involved in the day-to-day management of one of Australia's largest agricultural businesses. Without a doubt, the highlight of the past year was the regional visits we were able to make.
Meeting the people who are taking leadership roles in the communities and seeing first hand what they are trying to achieve with the help of the Royalties for Regions program reminds me that we can easily lose sight of what is important and necessary for healthy and functional regional communities and economies. It increases awareness and understanding of the Fund and it creates a different way of thinking about how industries and businesses can interact with the regions.” Australian Information Industry Association, as well as a former national chairman of the Spatial Industry Business.
In a time of change, both from a personnel (both trust and department) and political point of view, a positive and helpful collaboration was developed, which I helped both parties to work very constructively and adjust the foundation's focus on jobs and economic growth. Kate currently sits on the board of The Australian Futures Project, Awesome Arts and the advisory board of the WA Venture Philanthropy Fund. She spent five years on the board of Lifeline WA, including as chair and deputy chair.
As a new trust member, participating in the roundtable discussions was a great way to get up to speed with the community's expectations and understanding of the fund. The strategic planning process undertaken by the Trust sparked some very useful conversations with departmental representatives about the next phase of the Fund. Stuart was a former commissioner of the Western Australian Planning Commission, chairman of the National Transport Commission and chairman of the East Perth Redevelopment Authority.
In 2006 he was appointed an Officer of the Order of Australia for services to the road transport industry, the public sector and the community. Stuart was chairman of the South West Development Commission and a member of the Regional Development Council during 2016-17. As work got under way at the Trust at Busselton-Margaret River Regional Airport, I was again reminded of the wonderful outcomes that can follow from high levels of collaboration between three levels of government, a community and a region, backed by a innovative funding program that helps deliver.
TRUST AND FUND PERFORMANCE
TRUST STRATEGIC PLAN
TRUST ENGAGEMENT
ROYALTIES FOR REGIONS FUND SNAPSHOT
The Foundation has commented on the expenditure limit in the Advice and Recommendations section of this and previous reports. The following chart shows that the 2016-2017 Mid-Year Review predicted royalty income to increase in subsequent years, without a commensurate revision of the spending cap. Based on current spending caps for 2017-18 to 2019-20, the previous government forecast estimated that about $1.5 billion would be returned to the consolidated account.
It should be noted that the royalty forecast presented below will need to be revised in accordance with the 2017-2018 state budget, which will include revised royalty forecasts from the Ministry of Finance and expenditure forecasts. Critical figures are the royalty projections in the budget papers (and not the Mid-Year Review). Since the Fund's inception through 2016-2017, an estimated total of $620 million has been returned to the consolidated account.
By the end of the 2016-17 financial year, a total of $930 million will have been transferred to the Future Fund and $100 million to the Regional Reform Fund. The distribution of royalties for regions funds to the subsidiary accounts over the expected forward estimate period is shown in the chart below. It should be noted that this graph reflects the forward estimates at the time of the 2016-17 Mid-Year Review Budget and may change as a consequence of the 2017-18 State Budget.
There are three Royalties for Regions Special Purpose Accounts (SPA) - the Royalties for Regions Fund. In addition, Royalties for Regions funds are also held in a SPA for the Western Australian Future Fund established under the Western Australian Future Fund Act 2012. The chart below shows when the Royalties for Regions SPA and Future Fund were created and their balances as at Semi-Annual evaluation budget 2016-2017.
The diagram below shows the allocation of royalties for regions across categories of expenditure from program inception to 2016-17 as per the 2016-17 mid-year review budget.
MILLION $72
986 MILLION
MILLION
205 MILLION
ECONOMIC DEVELOPMENT COMMUNITY SUPPORT SERVICES
SPORTS & RECREATION
399 MILLION
365 MILLION
EDUCATION
TOURISM
284 MILLION
ABORIGINAL INITIATIVES
REVITALISING THE REGIONS
772 MILLION
HEALTH
The following diagram shows the distribution of royalty expenditures by region by proponent and the continued strong alignment between the Fund and state government agencies. A desk analysis of the projects and programs current at the 2016-2017 mid-term review indicated that about half could be attributed to the government's electoral commitments arising from the 2013 state election, while the rest were initiated by state government processes. The following chart shows the regional location of royalty expenditure by region as at 28 July 2017 for the period 2008-09 to 2016-17 and shows significant investment in the north of the country.
It is expected that the expenditure pattern between the regions will be redistributed to the more populous regions over the next four years.
SOUTH WEST 11%
GREAT SOUTHERN 8%
3% PEEL WHEATBELT 5%
MID WEST 8%
GASCOYNE 6%
32% PILBARA
KIMBERLEY 19%
GOLDFIELDS-ESPERANCE 8%
REGIONAL DEVELOPMENT PORTFOLIO
THE FUTURE
Nurture our globally
Focused interventions to promote small business growth and innovation (eg R&D, commercialisation, entrepreneurship, growth and financing).
Skill up for the knowledge economy
ADVICE AND RECOMMENDATIONS 2016-17
Portfolio risk management is a key element that he believes deserves more attention. Historically, project ideas have come from government election commitments, ministerial priorities, other government departments, commissions and portfolios. To increase the focus on job creation and economic development, the fund believes that project ideas will need to come from a wider range of sources, including the private sector.
The Trust notes the establishment of a business development department within the portfolio specifically tasked with the creation of projects and proposals that deliver significant employment and economic outcomes. The Trust believes it is important that the MoG changes retain a focus on improving efficiency in this area, which has been lacking in the past. The Trust can play a role in supporting the effectiveness of the new DPIRD Department by identifying opportunities for public and private sector engagement, focusing on strategic sectors and programmes.
Supporting the Fund's focus geographically to support areas with growth potential (work carried out mainly by Regional Centers and Economic Cluster work). Examining where funds can create a future income stream for the Fund through supporting regional economic development activities eg.
ADVICE FROM PREVIOUS YEARS
2012-2013 The former minister had requested the fund to consider revising the regional housing program funded under royalties to regions. At that time, the Foundation formed the opinion that the program was not sufficiently advanced to be reviewed constructively. Since then, the department has carried out an evaluation of the housing investment, which has now been completed.
2012-2013 The Fund identified a number of key large-scale strategic projects in the regions that were aligned with the key investment themes proposed by the Fund and accepted by Licensing for the Regions. This recommendation has been taken up by the Regional Development Strategy process and is now complete. 2011-2012 The Fund recommended that water policy and projects be given greater emphasis in license fees for the regions.
2011–2012 The Trust recommended that the CLGF be retained and made a further 26 recommendations to improve the fund's efficiency and effectiveness. The Trust believes that funding from the CLGF can continue for years to come to support implementation aligned with the blueprints. 2010-2014 Since 2010, the Trust has identified leadership development and human capacity building as a vital and necessary investment for advancing regional development in WA.
Research shows that the existence of a high level of social capital will directly and positively affect levels of economic development.
GOVERNANCE
FREEDOM OF INFORMATION
TRUST MEMBER REMUNERATION
TRUST INTERNAL GOVERNANCE
PROVISION OF SERVICES AND FACILITIES TO THE TRUST
TRUST GOVERNANCE FRAMEWORK
GLOSSARY
