Inquiry into the changing economic environment in the Indian Ocean Territories

• Joint Standing Committee on National Capital and External Territories

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Image: Nicole M / Flickr

24 May 2010This report highlights the economic challenges associated with diversifying and developing sustainable economies in the Indian Ocean Territories with a focus on facilitating business development and service delivery in five main areas. These areas are tourism, information communication technology, transport, housing and environmental management.

Key recommendations of the report include:

• Identifying ways to diversify the Christmas Island economy with a focus on developing tourism in response to the possible permanent closure of the Christmas Island phosphate mine.

• Review and implementation of the Christmas Island Destination Development Report in consultation with Tourism Australia; and examining the feasibility of applying a short stay tourist visa waiver program for the IOTs.

• Establishment of economic development officers located within the IOTs Shires; and implementation of a practical, administrative complaints handling mechanism at the local level.

• Providing discretionary grant approval authority to the IOTs Economic Development Consultative Groups in regard to the Economic Development Funding Program (EDFP); streamlining the application process under the EDFP; and doubling the EDFP to $150 000 per annum for each of the IOTs.

• Support for the continuation of the Government’s partial subsidisation of domestic air services;
lifting cabotage restrictions; and subsidisation of sea freight and shipping services to the IOTs.

• Review of the application of the Australian Broadband Guarantee to the IOTs; subsidisation of the upgrade to the satellite link servicing the IOTs; and urgent upgrades to the mobile telephony network.

• Examining alternative sources of renewable energy; and incorporating risk assessment relating to climate change into business proposals.

• Review of building codes applied to the IOTs; drafting and implementation of land release and development plans for the IOTs; and ownership transfer to the Shire of housing at the former Quarantine Station site on the Cocos (Keeling) Islands.

Image: Christmas Island pier, ニコール (Nicole M) / Flickr