Some of the best schoolboy athletes in NSW and QLD come through rugby union programs as a byproduct of private school scholarship. Australian Rugby isn't going to sign all of them, it's just not feasible, or practical. But what's needed is to ensure that Australian Rugby is at least capturing the top 5-6 each year because these are the ones who are going to go onto higher honours.
Especially in the space of big, strong, ball running running back rower type players, this is an area where the NRL and even the AFL now are competitive and active, and it's reflected in the current stocks of Australian Super Rugby teams and now at Wallaby level