4 September 2017

Mr John Alexander OAM MO Chairman Standing Committee on Infrastructure, Transport & Cities PO Box 6021 Parliament House CANBERRA ACT 2600

Dear Sir,

RE: Inquiry into the Australian Government’s Role in the Development of Cities

AlburyCity and the City of are pleased to make this submission to the House of Representatives Standing Committee - Inquiry into the Australian Government’s role in the development of cities.

Located at the border of southern NSW, and north eastern , Albury Wodonga is the 20th largest city in . Strategically placed approximately 300km north of and 580km south of Sydney on the Freeway, Albury Wodonga is accessible via road, rail and air. The twin cities are ideally situated on the Inland Rail Corridor and the region is in the heart of the Riverina Murray, Australia’s food bowl.

With a combined population in the order of 100,000, expected to increase to 125,000 by 2036, Albury Wodonga is one of the largest, and fastest growing, single regional inland communities. Around 8,000 local businesses contribute to Albury Wodonga's Gross Regional Product currently valued at $5.9 Billion.

Top value-add sectors of the local economy include ‘Rental, Hiring and Real Estate Services (14.4%)’, ‘Public Administration and Safety (13.4%)’ and ‘Manufacturing (13.1%)’, while the largest employers are made up of the ‘Health Care & Social Assistance (15.1%), ‘Retail Trade’ (12.8%) and ‘Manufacturing’ (12.8%) industries.

A snapshot of Albury Wodonga is included at ‘Attachment A’ for further information.

AlburyCity City of Wodonga 553 Kiewa Street, A bury NSW 2640 104 Hovell Street, Wodonga VIC 3690 PO Box 323, Albury NSW 2640 PO Box 923, Wodonga VIC 3689 Phone: 02 6023 8111 | Fax: 02 6022 8190 Phone: 02 6022 9300 | Fax: 02 6022 9322 [email protected] [email protected] alburycity.nsw.gov.au wodonga.vic.gov.au ABN 92 965 474 349 ABN 63 277 160 265

Albury Wodonga performs a Regional Capital role for and southern NSW, with a catchment population of approximately 180,000. As a major employment, education, health, cultural and sporting centre, Albury Wodonga provides vital services and facilities both in terms of economics and social and community wellbeing.

In the 1970’s Albury Wodonga was settled upon as a major decentralisation centre, with adequate land and resources reserved by the Australian Government to significantly expand its population through supporting major industries to relocate or establish. This program attracted several large industries and gave the regional cities a major boost in employment and population growth. Whilst the political drive for this move waned with successive Governments, the prime location, availability of land and abundant resources still remain a compelling factor for investment and expansion of the twin cities.

Over the past five years, the cities have embarked on significant strategic planning to enable the continued growth of the region and to ensure that future development takes place in an orderly and efficient manner. This naturally has created a need for government support in a number of areas – as outlined below.

Along with planning obligations, both Councils have invested heavily in enabling infrastructure, with and without funding support from State and Federal Governments.

Some of the major works undertaken include:

 The implementation of the inner and outer ring road system in the Wodonga Central Business Area (CBA).  A $21 million revitalisation project of the Wodonga CBA (including $10 million support from the Federal Government under the National Stronger Regions Fund) incorporating creation of new and attractive public spaces and facilitating approximately $85 million in retail development.  Junction Place, a parcel of almost 10Ha under the development control of the Victorian State Government’s Development Victoria, to cater for residential, commercial and office opportunities in Wodonga.  The $9 million redevelopment of the Lavington Sports Ground in Albury with major improvements expected to make it the premier sporting venue between Melbourne and Canberra.  Large scale industrial land developments both at NEXUS in Albury and Logic in Wodonga for heavy industry and intermodal operations.  The $85M Volt Lane Precinct in Albury providing 10,000sqm commercial office space, a retail marketplace, multi-deck carpark, public art and incorporating the proposed Mantra Hotel (currently under construction).  The Murray River Experience creating tourism and commercial opportunities at Albury’s Riverside Precinct, as well as strengthening the relationship between the community and the Murray River.

This submission addresses the Terms Of Reference, with summarised recommendations at the conclusion of the submission.

2 | P a g e

1) Sustainability transitions in existing cities Considering what regulation and barriers exist that the Commonwealth could influence, and opportunities to cut red tape

2) Growing new and transitioning existing sustainable regional cities and towns

Promoting the development of regional centres, including promoting master planning of regional communities.

AlburyCity and the City of Wodonga encourage the Standing Committee to recognise the importance of regional cities to Australia’s broader regional population as ‘Regional Capital Cities’. These major regional cities provide critical health, professional services, shopping, education, recreational, entertainment and cultural services for smaller surrounding communities, for which they would otherwise have to travel to capital cities to obtain. The continued development of regional cities is therefore critical to the fabric of Australia’s geographically dispersed population.

Both Albury and Wodonga have significant master planning completed for their respective growth corridors being the Thurgoona Wirlinga Structure Plan and the Leneva Baranduda Precinct Structure Plan. These plans include provision of residential land on both sides of the border with combined capacity for more than 100,000 additional residents.

Additionally both Councils have developed Infrastructure Contributions Plans in order to set out the framework and requirements to help fund and plan for infrastructure to facilitate the growth of Albury Wodonga.

This master planning process is fundamental to the operation of regional capitals however the greatest challenge is achieving sustainable population growth balanced against new investment and job creation to support economic prosperity.

Promoting private investment in regional centres and regional infrastructure;

Promoting the competitive advantages of regional locations for businesses;

Examining ways urbanisation can be re-directed to achieve more balanced regional development.

Capital cities by their scale and nature will attract private investment in their own right, with little required in the way of government support. Organic jobs and population growth are burgeoning creating major issues, with policy and investment concentrated on addressing housing affordability, productivity, congestion, transport and pollution issues. This situation differs dramatically from regional cities, many of which have immediate capacity for growth, where congestion is not a factor, commute times are short, productivity is high, and the lifestyle offer is outstanding.

3 | P a g e

For cities such as Albury Wodonga, private investment is the catalyst to sustainability, growth and economic stability. This is an area where the government can provide the most leverage. There are two key elements which can create genuine outcomes in attracting private investment.

Firstly, funding support for relocating or newly establishing businesses in regional areas. It is here where relatively small incentives and grants for start-ups or relocating businesses can make a significant and positive long term economic impact in a regional city. This is particularly true for Albury Wodonga, where already established first class road, rail and air freight and passenger networks connect businesses to their major markets, both nationally and internationally.

As an example, establishing one new industry which invests $30M in plant and equipment and employing 300 staff once fully operational, will have flow on implications delivering a direct effect in excess of $100M and 220 jobs during construction, with a combined direct and indirect effect (once established) of almost $400M per annum and 684 jobs to the local economy. In a capital city this would provide a proportional positive economic boost, however to a regional economy such as Albury Wodonga this could equate to 1-2% of Gross Regional Product.

Implementing this from an Australian Government perspective could be as easy as a taxation concession for regional investment, or a one-off start up grant contingent upon the creation of jobs in targeted economic zones. Businesses seeking to expand could be assisted and incentivised to move to a regional zone, resulting in freeing up and possible rezoning of valuable metropolitan land. Regional cities would be more sustainable, and the pressures of congestion and housing affordability in metropolitan cities would be relieved.

It is important to note that this is not about retaining the jobs in capital cities and shifting the population to commuter towns – it is about shifting the jobs to regional centres, along with the people. This model is sustainable and beneficial to both metropolitan and regional cities. Stronger regional capitals have improved and more sustainable services, business and human prosperity is lifted, and health and lifestyle benefits are realised by a decentralised population.

In addition to this, the Australian Government can also play an important role in promoting the competitive advantages of regional locations for businesses. Larger regional centres such as Albury Wodonga have highly enviable advantages including:

 A skilled and stable workforce;  Available land at a fraction of the cost of metropolitan land prices;  Very affordable housing with median 4BR house price $450,000;  Access to major highway and inland rail freight route with container access to 75% of Australia’s population within 24 hours;  Lower cost of operation;  In excess of 180 passenger flights per week, direct to Sydney, Melbourne and Brisbane;  Excellent health, education, entertainment and retail services; and  Healthy living and lifestyle.

The most effective support the Australian Government can offer is:

4 | P a g e

a) Funding for common enabling infrastructure to create investment-ready industrial land, including gas, water, rail and road infrastructure; and b) Tax concessions or investment grants as incentives for business investment in a regional location. c) Working to minimise, or ideally eliminate, cross border anomalies that inhibit productivity.

Identifying the infrastructure requirements for reliable and affordable transport, clean energy, water and waste in a new settlement of reasonable size, located away from existing infrastructure.

The existing master planning process in regional Local Government identifies and caters for infrastructure deployment in and around regional centres, so this is typically not an issue. There are, however, significant opportunities as identified in previous comments, for Federal and State Governments to provide funding support for infrastructure which can stimulate jobs growth.

The Albury and Wodonga Councils service a region of approximately 180,000; double that of the rate base within their Local Government Area (LGA). There is an expectation from this broader region that the cities of Albury Wodonga supply both the hard and soft infrastructure demands of its residents. Without the support of funding from State and Federal government, meeting this expectation can prove challenging for local government. As a result, when State and Federal governments approach regional infrastructure funding, consideration should be given to the role of Regional Capitals within a context broader than individual LGAs.

As an example, demands on regionally significant infrastructure and projects including the Lavington Sports Ground, Alexandra Park, Kelly Park Tennis Centre, aquatic facilities, arts precincts and the proposed Baranduda Fields, stretch Council budgets and management capacity in an effort to continue to deliver upon regional requirements and expectations.

Proposals to create new commuter cities through the development of the high speed rail project will also adversely affect existing regional cities. It is the contention of AlburyCity and the City of Wodonga that the creation of new inland cities funded through venture capital, completely overlook the opportunities offered by existing regional cities.

Major investment across all three tiers of Government, as well as the private sector, has provided health, education, transport, waste and water infrastructure in existing regional cities, with adequate capacity for growth in most cases. This submission contends that allowing nationally critical infrastructure, such as high speed rail, to deliberately skirt around these vibrant regional communities, with a view to creating new commuting hubs from productive farming land, would be folly.

Further, it is economically irresponsible and profoundly unfair to regional communities to allow duplication of existing infrastructure by creating adjacent regional ‘commuter cities’. In fact, building such regional ‘commuter cities’ outside of existing capital cities merely increases urban sprawl while maintaining jobs and economic benefits in capital cities.

Regional Capitals such as Albury Wodonga are ripe for expansion. This submission requests that the Standing Committee consider the positive potential of jobs creating investment, including support or

5 | P a g e

incentives for private investment. The submission requests that the Government consider this as a means of driving decentralisation by prioritising, promoting and importantly incentivising business investment in these vibrant existing cities.

In addition to high speed rail, AlburyCity and City of Wodonga offer the following in relation to the current status of passenger rail on the Albury Wodonga to Melbourne line or Hume Passenger Rail Corridor.

Albury and Wodonga, in collaboration with the Rural Cities of Benalla and Wangaratta, commissioned the Hume Corridor Passenger Rail Study earlier this year to understand the current and future passenger rail needs of the community. The study revealed that latent demand existed to increase passenger numbers by 385,000 which would produce an economic output of $113M, increase Gross Regional Product by $55.3M and create 487 FTE’s. Further travel cost savings and productivity use of time savings would deliver in excess of $26.8M. Recommendations for improvements on the Albury Wodonga to Melbourne line included the requirement to:

 Prioritise planning and development of passenger rail infrastructure and services between Albury Wodonga and Melbourne;  Focus on reducing journey times by implementing fewer stops on some trips and improved infrastructure to enable faster train speeds;  Provide additional and more frequent services between Albury Wodonga and Melbourne; and  Modernise rolling stock to ensure greater reliability and consistency of services.

We welcome the Federal Government’s commitment to provide $140 million to line and rolling stock upgrades and encourage both State and Federal Governments to continue to investigate and progress further improvements along the Albury Wodonga to Melbourne line. High quality regional connectivity to metropolitan cities is critical. As shown through this research it is also an important facilitator and contributor to socio-economic activity and growth in regional locations, providing an alternate, low cost transport option and connectivity to capital city locations for health, recreation, business and family requirements.

Summary of Recommendations

AlburyCity and the City of Wodonga wish to highlight the important role the Australian Government can and should play in the development of regional cities. The joint submission engenders regional co- operation across two states and two cities to strengthen the argument in favor of Government decentralisation initiatives. Intrinsic to this, is the need to develop policy that supports the redistribution of population and economic development to existing regional cities, allowing all Australians to share in the benefits of economic growth.

The recommendations from Albury Wodonga’s submission are that the Standing Committee:

1) recognise the importance that major regional cities play in Australia’s fabric as ‘Regional Capital Cities’ providing proximity based health, education, sporting, shopping, cultural and entertainment services to regional and remote communities.

6 | P a g e

ATTACHMENT 1

8 | P a g e