REGIONAL DEVELOPMENT AUSTRALIA

The Hon. J.S.L. DAWKINS (14:57): I seek leave to make a brief explanation before asking the Minister for State/Local Government Relations a question about Regional Development Australia.

Leave granted.

The Hon. J.S.L. DAWKINS: The Local Government Association of South Australia was advised that commonwealth and state funding levels would be retained in establishing the new Regional Development Australia network. The Local Government Association's circular, released on 16 March 2009, states:

The State and Australian Governments have indicated they will commit the total annual existing funding amounts provided to both the Regional Development Boards Program and the Area Consultative Committees to the funding agreement to be negotiated with each new Regional Development Australia committee.

The Local Government Association has now informed councils that, as a result of the federal budget handed down on 12 May, the commonwealth has decreased its annual investment of $1.4 million to no more than $1.2 million. My questions are:

1. Is the minister aware that the Local Government Association was promised that state and federal funding levels would be retained in the establishment of Regional Development Australia?

2. Was the minister also advised by her federal colleagues that the commonwealth investment of $1.4 million would be quarantined in the establishment of the new Regional Development Australia network?

3. As the minister responsible for relations with local government, is she concerned that less than a month after releasing the memorandum of understanding the commonwealth decreased its funding to $1.2 million?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:58): This is obviously a policy area that overlaps with that of the Hon. Paul Caica, but I have some responsibilities for this in relation to local government. As the honourable member rightly pointed out, in 2008-09 the commonwealth government announced in its budget that the Regional Development Australia (RDA) program would become its major vehicle for engagement with regional communities.

The aim of this RDA program is to build on the federal government's Area Consultative Committees program, with RDAs taking on a broader role to provide input into national programs and to improve the coordination of federal and regional initiatives and link closely with local government and other regional organisations. It was agreed in July 2008 that the Regional Development Council meeting of federal, state and territory ministers and the Australian Local Government Association (ALGA) would move forward in aligning these RDAs with regional development organisations; and, in South Australia's case, regional development boards.

We believe that these will provide an opportunity to put in place an agenda of renewal and an opportunity for regional South Australia to help sustain regional communities into the future. The ministers and the ALGA agreed to a memorandum of understanding in terms of a number of principles to form the basis of aligning those structures. It is noteworthy that South Australia is the only jurisdiction that has sought to establish an RDA with local government as a founding partner. It is proposed that our state move from 13 RDBs and five area councils to seven new RDAs in regional South Australia and one RDA to cover metro Adelaide.

They will closely align with the state government's regional boundaries in response to the Economic Development Board's recommendations. The transition process in terms of moving into these new structures will be headed by the Hon. Rob Kerin. The process will acknowledge the diversity of our regions and result in the RDAs being capable of attracting high calibre community and business leaders assisting regional communities to meet the social and economic challenges which they currently face.

As I said, this is an important structure to help promote regions to better coordinate their interests and better respond to their development needs. I do not have the details of the funding arrangements with me today, but I am happy to take those questions on notice and bring back a response.