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Future Role and Contribution of Regional Capitals to Australia Submission 31

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Future Role and Contribution of Regional Capitals to Australia Submission 31 Senate Inquiry The future role and contribution of regional capitals to Australia 1.0 The City of Greater Geraldton Western Australia Context The City of Greater Geraldton is located 424 km north of Perth at a central point on the west coast boundary of the Mid West region (see Figure 1). The Mid West region covers 478,000 square kilometres, or almost 25% of the state’s land area and encompasses 17 local government authorities (Department of Regional Development, 2014). The region is well endowed with natural resources but sparsely populated. The City of Greater Geraldton is an important functional hub for the region, with all government departments represented. The City of Greater Geraldton is the largest regional centre outside the Perth metropolitan area. Figure 1. Geraldton and the Mid West of Western Australia Source: Government of Western Australia Department of Regional Development http://www.drd.wa.gov.au/regions/Pages/Mid-West.aspx The City of Greater Geraldton covers an area of around 9,890 km2 extending from the west coast to over 150 km inland. Between 2001 and 2011 the overall population of the area now encompassed in the city increased by around 4,000 or approximately 12%. Consistent with a broader regional trend, the two previously distinct administrative areas now incorporated into the recently formed City performed differently. 1 The Mid West is recognised as having a relatively strong and diversified economy. In the relevant period, Gross Regional Product has been the third highest in Western Australia after the Pilbara and Goldfields reflecting the elevated activity in the resources sector (Regional Development Australia, 2013). Agriculture and fishing have been the mainstay of the regional economy and remain important, contributing more than $1billion in 2011-12. However, the region is also well endowed with mineral and energy deposits. In recent years mining has emerged as the main economic driver, as global demand strong and commodity prices encouraged significant investment in new projects. In 2012-13 mining production contributed over $3 billion to the regional economy. Retail, and construction, being the two largest employers, contributed $660 million and $227 million respectively. Tourism is also an important industry for local employment. 2.0 An assessment of current demographic trends in the City of Greater Geraldton Over the past decade high commodity prices and sustained global demand for Australian mineral resources have brought considerable wealth to the nation, and particularly to the state of Western Australia. Elevated labour demand associated with the rapid growth period has had important implications for particular regions and communities that are either host to a mining project, or a source hub for fly-in fly-out (FIFO) or other forms of long distance commute (LDC) workforces. The City of Greater Geraldton is one of those communities which has experienced population gain. As noted above, as of mid 2011, the City of Greater Geraldton now includes Geraldton- Greenough and Mullewa (through voluntary amalgamation). Population growth occurred in the significantly more populous Geraldton-Greenough local government authority (LGA) and declined in the sparsely populated inland Mullewa SLA. As illustrated at table 1 below, growth rates were strongest between 2006 and 2011, consistent with the rise in mining activity in Western Australia. Table 1. Population City of Greater Geraldton 2001-2011 Local government 2001 2006 2011 % change % change area 2001-2006 2006-2011 Geraldton- 34,019 35,736 38,340 5.05 7.23 Greenough 1,099 910 856 -8.0 -5.0 Mullewa (SLA) Source: Australian Bureau of Statistics (2012a) (based on place of usual residence) In 2011 the population of the City of Greater Geraldton accounted for 8% of the state’s total regional population and just 2.3% of the state population (Australian Bureau of Statistics, 2012a). Internally population distribution is uneven with the greatest density occurring in the coastal and near coastal LGAs. 2 Increases of 3% and 2.4% respectively also occurred in the adjacent and urbanising LGAs of Irwin to the south and Chapman Valley to the northeast of the Geraldton- Greenough conurbation. Indigenous population In 2006 the recorded Indigenous population for the region was 3,568. In 2011 Aboriginal and Torres Strait Islander peoples comprised approximately 12% of the Mid West population (Australian Bureau of Statistics, 2012b) . According to Regional Development Australia the Indigenous regional population is growing three times faster than the non- indigenous population. As with the broader population, the distribution of the Aboriginal population across the region was uneven. In 2006 almost 60% of the indigenous population lived in coastal areas and around 50% lived within the city of Greater Geraldton. In the 2006-2011 period, Aboriginal employment rose significantly in the City, although not all of the work was local; many Aboriginal people ~ 500 are employed in the mining industry in locations distant to the City of Greater Geraldton. 3.0 Functional Roles and Connectivity of the City of Greater Geraldton In contrast to other regions in Western Australia where many shires rely predominantly on one or two industries, five industries in the Mid West account for 50% of employment: construction, retail, agriculture forestry and fishing, health care and social assistance, and mining underscoring a diversified local economy. The Geraldton-Greenough LGA (2011) has recently sustained the highest regional employment diversity in Western Australia. This is reflected in the growth of the LGA’s local economy in line with the State economy in the period 2006-2011, creating jobs at about the same rate as the whole State (P Plummer et al., 2013c). The degree of diversity increased sharply between the 2001 and 2006 census count and maintained a stable lead thereon. Between 2001-2006 and 2006-2011 job growth can be primarily attributed to the local capacity to create jobs in the labouring, machine operators and drivers, management and clerical and administrative worker sectors of the labour market. Job creation across occupations was dominated by local structures which differed to that of the broader Western Australian spatial division of labour. In the 2006 – 2011 period, the location quotient moved to positive and the economic base contribution (a measure of the degree to which economic activity and employment in a region is related to servicing local demand as against servicing demand external to the region) trebled, indicating local specialisation and net employment growth (P. Plummer & Chapman, 2015). The City is an important government services hub for the broader region and it therefore provides services and facilities to a large non-resident population which flows in from other local government authorities. 4.0 Current funding provided to City of Greater Geraldton Like the other regional capitals in Western Australia, the City of Greater Geraldton has limited opportunities to raise capital. The Financial Assistance (General Purpose, Local 3 Roads and Special Purpose) Grants (FAGS) to local government are therefore very important. The data which underpins the allocation of funds is not necessarily accurate. The Australian Bureau of Statistics calculated that the undercount for the 2006 census was unusually high in Western Australia due to a variety of reasons associated with the rapid population influx in some parts of Western Australia especially in remote and regional areas and with the high population churn experienced by most Western Australian local government authorities (Australian Bureau of Statistics, 2013). Furthermore, there is considerable lag between population data being collected and FAG monies being allocated. As it is, FAG monies provide a small proportion (~12-15%) for the operational expenses of repairing and maintaining roads and the local government authority is expected to meet the balance of the roads expenditure. This problem is particularly acute in regional centres such as the City of Greater Geraldton which is fast growing and a large regional hub with few service alternatives for local residents and those living in outlying jurisdictions which rely on infrastructure and service delivery from Geraldton. It also underscores the importance of accurate census data. The functional role (and additional costs) of providing services and infrastructure utilised by non-residents to regional capitals such as Geraldton should be recognised and financially compensated by other spheres of government. The rapidity of change in job creation, services demand, population growth and industry activity in the Mid West region demonstrates how important it is to conduct a census every five years. It has been mooted that the Commonwealth is considering conducting the census on a ten year cycle rather than five years. The City of Greater Geraldton strongly opposes the proposal. As it is, the mechanisms by which population is assessed for grants is inaccurate, and resource host communities consistently lobby for equitable recompense for services provided and utilised by visitors and transient and mobile labour forces. The Location Disability factor is recognition by the Western Australian Local Government Grants Commission of the higher operating costs local government authorities (and others, including the private sector), must bear due to location. Distance and therefore costs associated with freight and transport exacerbates the affordability of a range
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