COMMENTARY
By the Hon Nola Marino MP,
Assistant Minister for Regional Development and Territories, Australian Government
INDIAN OCEAN SECURITY
AUSTRALIA’S INDIAN OCEAN TERRITORIES: DEVELOPMENT CONSIDERATIONS AND FUTURE PROSPECTS The external territories of Christmas Island and the Cocos (Keeling) Islands, collectively known as the Indian Ocean Territories (IOT), are a unique and strategically valuable part of northern Australia. Indeed, northern Australia has long been considered of great strategic importance, with the region critical to the future of our national prosperity.
RICH PAST, IMPORTANT FUTURE Though geographically isolated, the IOT play an important role in Australia’s northern region. Among Australia’s most remote and culturally diverse communities, the region is home to a pristine environment, protected natural wonders and heritage sites, a rich cultural life and vibrant, distinct communities. The region is geographically close to Asia, is surrounded by the world’s third-largest ocean, and has a long and rich military history. A secure and stable Indian Ocean region is crucial for Australia’s national security and prosperity. It is an essential conduit for Australian and global trade, contains some of the world’s fastest growing economies, and hosts strategic competition between regional powers.
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Though geographically isolated, the Indian Ocean Territories play an important role in Australia’s northern region. A secure and stable Indian Ocean region is crucial for Australia’s national security and prosperity.
Maritime threats including illegal fishing, people smuggling and other forms of transnational crime rely on maritime routes that pass near Christmas Island and the Cocos (Keeling) Islands. To ensure the region is equipped to meet both current and future challenges, the Australian Government is committed to the economic, social and environmental sustainability of the territories. War time activity in the 20th century demonstrated the geo-strategic importance of the region. In 1914, a German raider, SMS Emden, destroyed the Cocos (Keeling) Islands’ Cable Station, which provided a vital link between Australia and the United Kingdom. HMAS Sydney then engaged the Emden in one of the first naval battles of World War I, with the German ship running aground on North Keeling Island. During the World War II the Japanese occupied
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Christmas Island and launched an attack on the Cocos (Keeling) Islands. From March 1942 until August 1945 Christmas Island was a prime staging post and source of phosphate for Japanese industry. The gun emplacement and ammunition bunkers remaining on Christmas Island provide a tangible reminder to residents and visitors of the earlier military threats to the Island. As external territories of Australia, the IOT are administered by the Australian Government, with state-type services delivered directly by the Commonwealth, through service delivery arrangements with the Western Australian government or by the private sector under contract.
ECONOMY IN TRANSITION The Australian Government is committed to long-term economic viability, an active population, and strong social fabric in the IOT. As small and geographically isolated islands, the economies of the IOT are vulnerable, and face a number of economic challenges, including a high cost of living, vulnerability to extreme weather events and dependence on a small number of industries (primarily mining and the provision of government services). The economy of Christmas Island in particular is undergoing a period of transition, with fluctuations in the operating status of the North West Point Immigration Detention Centre and a reduction in phosphate mining expected in the medium-term. Without greater economic diversification, the economies of the IOT are highly susceptible to boom and bust cycles. A fall in employment opportunities each time a large employer leaves the islands has a flow-on effect on the communities. These boom and bust cycles can also have a detrimental effect on the communities. While there are challenges, opportunities exist to leverage the unique natural environment and cultural heritage of the IOT to diversify the economies and support long-term sustainability. The government is focused on supporting economic growth in northern Australia, including Christmas Island and the Cocos
