Following my appointment in November 2018, the Trust has begun a review process of the governance framework for regional development in WA. Article 5(2) of the Act deals with the allocation of funds for royalties for regions between sub-accounts. Prior to the promulgation of the Act, the Fund operated under Section 10(a) of the Financial Management Act 2006.
To give and make advice. recommendations to the Minister on any other matter related to the functioning of the Fund and submitted to him by the Minister. The Minister, with the approval of the Treasurer, may authorize the expenditure of money charged to the Fund for the following purposes: .. a) provision of infrastructure services in regional WA;.
TRUST MEMBERSHIP
Paul is a former vice-chairman of the Australian Information Industry Association, as well as a former national chairman of the Spatial Industry Business Association. He is involved voluntarily with many community groups and is a past president of the North Fremantle Amateur Football Club. Nick has a keen interest in all facets of the aviation industry and has held a pilot's license since 1979.
REGIONAL DEVELOPMENT PORTFOLIO
In accordance with the law, the treasurer must have an amount equal to 25 percent of the expected royalty income for the fiscal year credited to the fund in each fiscal year. The following snapshot shows the fund at the time of the interim evaluation budget 2017-2018.
Royalties for Regions Account
ROYALTIES FOR REGIONS FUND SNAPSHOT
50.9 million
88.5 million
283 million
72 million
239.6 million
In addition to the $1 billion legal cap on the fund's balance, an annual spending cap of $942.5 million was mandated by the state government as part of the 2017-2018 budget. As part of the 2017-2018 Mid-Year Review process, the region royalty spending limit has been reduced to $941.7 million. Since the inception of the Regional Royalties program in 2008-2009 and over the estimated period ending 2020-21, a total of $1.71 billion is forecast to be returned to the Consolidated Account, $933 million to be transferred to the Future Fund and another $100 million in the Regional Reform Fund.
The graph shows the growth of the Bonuses for Regions program from the initial years to 2017-18 and in the forecast period with the application of the respective approved expenditure limits. Based on current expenditure limits for 2017-18 to 2020-21, approximately $1.1 billion is expected to be returned to the consolidated account. It should be noted that the royalty forecast proposed below is subject to revision in line with the 2018-19 State Budget, which will include revised Department of Treasury (Treasury) royalty forecasts and expenditure forecasts.
The critical numbers are the royalty projections in the budget documents (and not the mid-year review budget).
Allocation of Funds over Forward Estimates
Special Purpose Accounts
As part of the wider review of regional development management, the foundation has focused on. The Chair of the Trust has engaged in significant consultation with senior representatives across state government to develop a holistic view of regional development and the need to deliver this in a co-ordinated way across government. In addition to this, the Trust has formally and directly engaged with each of the nine Commissions and the Department's Executive.
It helps in the preparation of a structured discussion that supports the design of an effectively structured and working portfolio with clearer roles and responsibilities to facilitate more effective and efficient regional development outcomes. The Trust is concluding these engagements and will provide its findings to the Minister in the new financial year.
TRUST ENGAGEMENT
The Foundation believes that regional development carried out in a holistic, effective and efficient manner, per definition will lead to highly favorable economic, business and societal outcomes. Over the past year, members have engaged with a wide range of stakeholders to determine the key activities that the Foundation will focus on leading, facilitating and delivering over the next 12-18 months in an effort to achieve this. Formalizing and articulating a clear definition of regional development to build a common understanding and purpose.
Initiating a long-term program to increase awareness, appreciation and understanding of the value created by regional WA.
THE FUTURE
Since December 2008, the Fund has invested more than $8.4 billion of the state's onshore mining and petroleum royalties in regional initiatives. The context for regional development has changed significantly in the last few years and as reflected in the following case studies, the Fund's focus for investment is now directed towards initiatives that support sustainable economic development, job growth and the utilization of further investment in the regions. The Digital Farm Grant Program (Program) is a $5 million state government initiative funded by Royalties for Regions and administered by the Department.
The program has been developed to support the widespread adoption of digital farm technologies to help drive better digital connectivity for agricultural and pastoral businesses in regional WA. Grants of up to $500,000 are made available on a matching co-contribution basis to cover the capital costs of improving connectivity with multiple agricultural enterprises and related stakeholders.
5 MILLION DIGITAL FARM GRANTS PROGRAM
ROYALTIES FOR REGIONS CASE STUDIES
MYALUP PRIMARY INDUSTRY RESERVE PROJECT
ABORIGINAL RANGER PROGRAM
A contribution of $3.75 million to the University of Western Australia (UWA) to establish a Wave Energy Research Centre, which will support project technology development as well as provide expertise to industry more broadly through the exchange of scientific expertise and specialized knowledge. Carnegie's project will deliver strong technology development and innovation outcomes by designing, building and testing the world's largest commercial wave energy facility and building an estimated $20 million worth of shared user infrastructure to enable companies other wave energy to test their technologies in the future. Both Carnegie and UWA will have a physical presence in Albany, which could see Albany develop as a global center for marine renewable energy expertise, while also creating employment opportunities for local people.
The Wave Energy Research Center will be based in the former Albany Visitor Center and has already employed an Albany-based Center Manager and PhD students and has created local contracting opportunities for ship and marine services. The project is important to regional development as it has leveraged Royalties for Regions funding to attract private and federal investment with Carnegie bringing in an additional $37.3 million and UWA co-investing $6.93 million in financial and in-kind support. These investments aim to position Albany as a global hub for wave energy developers and researchers, bringing economic diversification, employment and industry.
ALBANY WAVE ENERGY PROJECT
This section summarizes advice provided by the Trust to the Minister throughout the year, which includes recommendations and comments on a number of initiatives set out below.
Update from the Western Australian Regional
ADVICE AND
RECOMMENDATIONS 2017-18
Successful regional development dictates results where the national economy becomes independent of non-renewable resources. The Trust believes that the country will be best served by a rigorous and evidence-based approach to regional development that thoughtfully ensures economic diversity. The Fund believes that the most relevant tool for measuring and managing this is economic complexity.
The Fund recommended that economic outcomes and timelines be gradually modeled and formalized to inform future actions and policies that make up government policy. Formalization of measures to achieve outcomes The Trust advised that many of the measures and strategies needed to achieve the required outcomes are already in place. The Trust's position is that there is an urgent need to ensure that measures and strategies are guided by the new regional development context and the emerging filters of economic complexity that will influence the way they are classified and managed.
The Minister was informed of the Trust's strong position that the development and implementation of a nationwide regional. At the portfolio level, the Trust understands the challenges associated with the legislative changes required to rationalize the roles of the Board and Committees so that the collective. In the short term, however, the Trust believes that much can still be achieved without those changes.
The Trust advised that this work should bring everyone across the portfolio to be driven by common purpose, through shared processes, so that a coherent set of outcomes is achieved without delay. Formalizing Regional Development Management The Trust believes that effective and efficient regional development requires specific management processes. The Trust pointed out the need for a clear line of sight from the main purpose of sustainable economic development to.
The Trust advised that this should be integrated into the Government's normal planning and budgeting cycles and that monitoring and advising on the ongoing health and efficiency of this system is an important activity it should undertake. The Trust believes that, beyond the governance of the Fund, it should also provide high-level advice and input to ensure the overall portfolio works properly across Government. The Trust advised that in recent times it has been engaging more widely than before with key stakeholders and together with its key governance role of the Fund, this adds unique value to the State.
While the mortgaged nature of the Fund is understood and acknowledged, the Trust believes that the origin of this funding, together with the current fiscal stresses on the State, dictate that it should be used as a last resort rather than a first resort for funding.
Royalties for Regions 2017-18 Budget Advice
One result of the historically fragmented (both by activity and over time) approach to regional development is that there is evidence of significant unintended direct and indirect subsidization in many regional areas, translating into unjustified cost burdens for the state. These need to be systematically identified and resolved as matters that either remain as they are, with the necessary formal political support, or the subsidy needs to be removed and the costs accrued in the appropriate place. The Trust did not receive any Freedom of Information applications in 2017-18 under the Freedom of Information Act 1992.
FREEDOM OF INFORMATION
TRUST INTERNAL GOVERNANCE
Trust Finances
Trust Member remuneration
Provision of services and facilities to the Trust
Trust meetings
Trust governance framework
Includes the Department of Primary Industries and Regional Development, nine Regional Development Commissions, the Regional Development Council and the Western Australian Regional Development Trust.
GLOSSARY
