PIC in the training area counts as PIC. However staying within 10nm of the aerodrome definitely doesn't count as cross country. The cross country component is to ensure you sufficient experience in navigation for the training outcomes to be successful.
You may have 50 hrs PIC, all within the training area (for example) and beginning IFR training would be a hopeless waste of time without the VFR fundamentals.
There are also minimum hours of experience mandated by the CAR's before attempting diffeent ratings or endorsements. Look up the relevant CAR online and search for the specific qualification you wish to attempt, or ask your instructor.
Beware, it is an enormous document, but the information is in there.
Civil Aviation Regulations 1988