The Future Role and Contribution of Regional Capitals to Australia Wagga Wagga Introduction Regional Australia continues to experience and adapt to global issues and historical challenges. As the national economy develops, some regional cities and towns will grow while others decline. Regional populations are ageing in line with national and international trends. Additionally, while the population is ageing, Australians are living longer than ever before and have one of the longest life expectancies in the world. Regional capitals provide a central point of access to essential infrastructure, services including health, business, employment and education. Wagga Wagga and the surrounding towns and villages operate as a hub and spoke model. Cities such as Wagga Wagga support not only local residents but the whole network of surrounding towns and rural communities. Local government is being increasingly burdened with the coordination and production of the majority of regional vision, planning, engagement and budgeting for development priorities and projects. Local Government is the closest governing authority to communities and seen as accountable for the ambitions and values of the communities they represent. Each region is uniquely different with regard to natural resources, labour capacity and infrastructure, and the industry mix and multicultural communities. In the presence of such diversity among regionally based cities and regions, a ‘one size fits all’ policy is unlikely to be effective. At the same time, competing policy agendas pose conflicting challenges for rural and regional Australia. This submission aims to define some of the present day challenges facing Wagga Wagga whilst encompassing the regional areas the city supports along with regional capitals across Australia. Wagga Wagga City Council looks forward to working further with the Senate Enquiry Committee into the future role and contribution of regional capitals to Australia. The Committee is invited to visit Wagga Wagga and develop a more informed understanding of the impact cities such as Wagga Wagga can have at the national level.

Councillor Rod Kendall Phil Pinyon Mayor General Manager Wagga Wagga Wagga Wagga City Council Executive Summary Regional capitals in Australia are quite diverse in Recommendation: Proactively promote growth by size and characteristics however they all share the directing greater levels of funding towards visionary, unique role of providing a central point of access strategic investments designed to build upon a to essential infrastructure, services, business, region’s productive assets. Increase the use of employment, health and education. The Wagga partnerships between public, private and voluntary Wagga Base Hospital for example services a sectors in the development and implementation of patient catchment area of approximately 297,000 local and regional policies. people, a population mass greater than the Regions with strong levels of human capital are Riverina. It is evident that regional cities such as more resilient to unexpected change and better Wagga Wagga support not only local residents placed to capitalise upon opportunities for growth. but also the whole network of surrounding towns Wagga Wagga is well placed to maintain and and rural communities. Planning and subsequent build upon a well-resourced education sector with funding for regional development is increasingly facilities offering education and training across being left to local governments to drive and deliver the full spectrum of learning. Increasing higher for the other tiers of Government. education participation and indeed the duration Local government plays a vital role in the lives of of study will boost productivity and ultimately almost all Australians, and is the most direct and lead to an increase in the gross regional product. tangible relationship between the community and Additionally, education providers indirectly promote all levels of government. Effective and efficient social inclusion, volunteerism, civic participation, planning and policy development with regards healthy lifestyles and reduced crime. Highly skilled to funding for local government areas in regional workforces can also leverage private sector locations should include engagement and investment, as business is more likely to be located consultation with a wide range of stakeholders in close proximity to a skilled workforce. including all levels of government, regional Recommendation: Improve the skill base of the development bodies, business, industry, regional labour force through considered and institutions and community groups. The discussion consultative funding allocation to education should focus on the strengths, challenges, needs, institutions such as regional TAFE’s and regionally opportunities and priorities for a region as opposed based universities. to reacting to shortfalls in infrastructure and service levels in the regional areas. Thorough consultation The City of Wagga Wagga encourages state and unearths a more detailed understanding of regional federal governments to continue exercising support strengths and weaknesses and enables a more for policies that encourage decentralisation and targeted planning approach. drive growth and prosperity in the local Wagga Wagga economy – this can be achieved through Improvements to transport routes and logistical the acceleration of population growth. Population road and rail connections are a current and accelerants can include relocation grants and ongoing priority for Wagga Wagga. This incentivising the relocation of skilled workers in commitment is based on evidence that well both the public and private sector. For example, targeted investments in transport infrastructure Government departments with interests in regional result in productivity increases benefitting many issues should be located in a regional capital other industries. Traditionally the allocation of where possible. The Evocities program essentially infrastructure funding has been reactive, based encapsulates all elements of the drive to relocate on changing economic and demographic trends people from Sydney to regional areas. determined by criteria such as demand for services, often measured by population density. Recommendation: State and Federal Governments Recommendation: Ensure the availability of core work with local Government to identify partnership- services and provide greater access to services based initiatives such as Evocities to actively such as tele-health, in part facilitated through decentralise congested capital cities and reliable and adequate internet connections and incentivise the relocation of skilled workers in both the NBN. Provide certainty of funding to enable the public and private sector. the effective establishment, rollout and evaluation of social well-being programs specific to regional Industry, business and regional economies demands. must continually innovate and evolve in order to remain competitive and all levels of government Australia’s ability to make the most of opportunities must actively support these efforts. To this end presented by future growth in global food demand governments play an important role in identifying depends on maintaining competitiveness through areas of comparative advantage, facilitating productivity improvements. The issue of global increased cooperation, integrated planning and food security has increased in importance and collaboration, and adopting a regionally focused regions such as the Riverina play a significant role approach to regional development. Strategies must in ensuring that Australia can maintain supply at recognise and consider local needs, circumstances sustainable levels. The Riverina has developed and priorities and seek to capitalise on the into one of the most productive and agriculturally opportunities accordingly through appropriately diverse areas of Australia and is often referred to aligned resource allocation. as the food bowl of Australia. In a normal year total agricultural and horticultural production in the Recommendation: Recognise regional capitals Riverina is worth more than $1 billion and food direct influence on the broader region and actively processing accounts for 20 per cent of the gross engage during policy and program development regional product. Policy design and implementation processes. are important determinants of agricultural The increasing cost of providing health services productivity because they will ultimately influence and attempts by both the State and Federal the agricultural sectors ability to innovate and governments to shift health expenditures has done improve productivity. little to increase delivery and access to essential Recommendation: Work collaboratively with services. Many regional communities struggle to regional capitals as stakeholders to tailor regionally attract and retain a local doctor and neighbouring focused programs designed to increase research regional capitals are often left to fill the void and capacity and awareness around the significance of provide for a population base far greater than agriculture and food security. their immediate area suggests. Investment in the health sector such as the redevelopment of Wagga Wagga’s Base Hospital will go some way to attracting specialists, facilitating the delivery of services currently not available to communities in under resourced areas outside of a regional capital. scale, the city has a smaller percentage of persons Assessment of current aged 60 to 64 (5% compared to 5.6%). demographic trends The national age dependency ratio, defined as a percentage of the working age population was and the changing role of last recorded by the World Bank in 2012 at 49.11. Age dependency is the ratio of dependent people regional capitals younger than 15 or older than 64 to the working age population, aged 15-64. Wagga Wagga’s Wagga Wagga Context dependency ratio suggests that approximately 52 people are dependent to every 100 in the labour • Wagga Wagga continues to reverse some of the force and making a financial contribution to the ageing population factors through a solid base economy through taxes. Wagga Wagga has a of facilities servicing young adults including three total labour force in excess of 32,000 people universities, a regional TAFE campus and two comprising a strong and diverse economy without defence bases. a reliance on one or two sectors. A relatively low • Population figures based on the 2011 census unemployment rate across the city reflects this revealed an average age of 34 compared to the fact, 4.9% in the September Q 2014. national average of 37 and state average of 38 The 2015 Intergenerational Report (IGR) suggests years. changes in the national demographic structures • The city’s medical patient catchment area will have important implications for the tax base reaches almost 300,000 people throughout the and as a result community expectations for region. delivery of services will shift. The weakening of the • Median household incomes within Wagga Wagga labour awards system and the shift to a system of ($1149) are broadly consistent with those for the enterprise bargaining has contributed to a widening nation and state, $1242 and $1237 respectively. differential in wages between metropolitan and non The surrounding towns and villages average –metropolitan Australia. weekly income in 2011 was $996, somewhat Median household incomes within Wagga Wagga below the national average. ($1149) are broadly consistent with those for the • Wagga Wagga has a total labour force in excess nation and state, $1242 and $1237 respectively. of 32,000 people comprising a strong and Contrastingly, the surrounding towns and villages diverse economy without a reliance on one or average weekly income in 2011 was $996, two sectors. A relatively low unemployment rate somewhat below the national average. across the city reflects this fact, 4.9% in the The IGR projects population growth annually at September Q 2014. 1.3% over the next 40 years; interestingly this In regional Australia, major centres such as figure contrasts the slightly higher growth rate of Wagga Wagga are faced with the same or similar 1.4% experienced over the past 40 years. challenges to metropolitan areas however different The cities youthful population is evidenced by the push and pull factors exist. Wagga Wagga average age being lower than the state average has traditionally reversed some of the ageing - the 2011 census revealed an average age of 34 population factors through a solid base of facilities, in Wagga Wagga compared to the state average for example the city is home to three universities of 38 years. The city absorbs a large influx of and two defence bases. As a result of this, population from the surrounding communities Wagga’s age structure has a larger percentage of seeking goods and services only available in the persons aged 20 to 24 when compared nationally major regional centre. Wagga Wagga’s population (8.7% compared to 6.8%). At the other end of the is approximately 63,000, yet the city’s medical patient catchment area reaches almost 300,000 Regional context people throughout the region, evidencing the On a regional level, the role played by major fact that regional capitals act as service agents centres such as Wagga Wagga has evolved and for populations far greater than the more obvious moved even further towards the hub and spoke measures suggest. Additionally the city continues model, providing the essential services and to be a major centre for net in-migration from the facilities for the surrounding towns and rural area. surrounding region and major centres including Often perceived as not sharing the same luxuries Sydney, as well as from overseas. and opportunities as major cities, rural and regional Relatively high overall levels of social disadvantage Australia is evolving to break the “bush” stereotype are evident in the city demonstrated by a ranking and is now multidimensional. Regional capitals of 373 on the Socio-economic Indexes for Areas are home to diverse and growing economies (SEIFA), out a total 564 local government areas encompassing a combination of local, regional, nationally. Welfare dependency for Wagga Wagga national and international components. National rated 410 from 564. The challenge facing regional and international organisations now co-exist in the Australia is closing this gap and appropriating same space once dominated by family businesses. resources and funding sources in the most efficient The cost of transporting goods has fallen and effective way. dramatically and the cost to deliver information Competition to attract new residents and skilled is now relatively negligible, however the distance workers is strong, with tailored relocation programs between locations has not changed. Most and incentives existing for almost every regional importantly, the cost of transporting people – the city and to some extent towns and villages. Varying most valuable resource for business and core to a and often unique competitive advantages exist service based economy - has not fallen, and has for regional capitals and factors such as lifestyle, arguably risen as the opportunity cost of time rises. affordable housing and competitive jobs markets Many regional locations can and will grow on the are all significant factors in the drive to relocate basis of key factors that can influence in positive residents from major cities. Wagga Wagga currently ways. For example, a labour cost advantage that offers very competitive housing and real estate allows them to capture industries fleeing the high options across both the residential and commercial costs of large metropolitan areas. The migration sector. For example, the median property price of businesses outside of major centres such as for housing in Wagga Wagga is as little as 35% of Sydney and Melbourne is growing as the costs the current prices available on the Sydney market. of doing business skyrockets. To this end, the The rental market is equally competitive, with rents necessary infrastructure and services must be in in Wagga Wagga 65% of the value on offer in the place to accommodate such demands. Sydney market. While it is generally accepted throughout the literature that regional capitals in Australia are distinctly diverse in size and characteristics, their definitive role is more ambiguous and less defined to the uninitiated. The naturally occurring role of regional capitals is, and always has been, distinctly important to the prosperity of an entire region, specifically the surrounding small towns and villages. This is in some contrast to the importance of major cities, where the role is to some degree inverse, it may be suggested that a metropolitan area relies more heavily on the surrounding areas for viability. Differences between regional and metro health Neighbouring regional capitals are often left to services has almost always been evident, however fill the void and provide for a population base gaps in the delivery have become more evident far greater than their immediate area suggests. over the last two or three decades. The increasing Investment in the health sector such as the cost of providing health services and attempts by redevelopment of Wagga Wagga’s Base Hospital both the State and Federal governments to shift will go some way to attracting specialists, health expenditures has done little to curb the facilitating the delivery or services currently not problem and as a result many small country towns available to communities in under resourced areas struggle to attract and retain a local doctor. out side of a regional capital. The variety and depth of services also reflect the RECOMMENDATION differences between regions and metropolitan areas. For example, the quantity and quality of Ensure the availability of core services and education you are likely to receive, your access to provide greater access to services such as information technology and telecommunications, tele-health, in part facilitated through reliable the availability of conventional services, and your and adequate internet connections and the community’s health status will be affected by NBN. Provide certainty of funding to enable the the facilities available in your region. There are effective establishment, rollout and evaluation of pronounced regional differences with regard to social well-being programs specific to regional the internet – limited bandwidth and higher user demands. chargers can make the internet expensive and frustrating to access for those living outside the major cities, where critical mass enables faster, more reliable connections. Regional cities continue to be under-recognised Analysis of current in economic development debate and as a result subsequent planning and policy formulation funding provided to remains the least studied and least understood components of Australia’s urban setting. This is regional capitals evidenced by the Australian Government’s urban policy, reporting on issues affecting urban centres Wagga Wagga Context with 100,000 or more people and essentially • Federal and State Government funding over the discounting regional capitals such as Wagga 2013-14 and 2014-15 financial years to Wagga Wagga based on the explicit population base. Wagga was 1.3% of the nationally based spend to all regional capitals. The corresponding figure for NSW based spending on regional capitals is RECOMMENDATION approximately 3.3% Recognise the prosperity of regional capitals • Economic debate and policy development for directly influences the broader region and regional Australia must consider the greater actively engage during policy and program catchment areas that regional capitals service, for development processes. example Wagga Wagga’s health sector services a population base of up to 300,000 people. Wagga Wagga’s population is expected reach • The impact and contribution of the regions is too 80,000 by 2035. often overlooked, a fact emphasised when it is Regional development programs and initiatives considered that roughly one third of the nation’s such as Regional Development Australia population reside in regional areas and the bulk (RDA) have worked closely with the city and of our exports originate from locations outside stakeholders within the region to effectively align the capital cities. priorities and funding allocations. Funding for There is acceptance that a ‘one size fits all’ major projects such as the Riverina Intermodal approach to regional development is less effective Freight and Logistics Hub have been negotiated when compared to initiatives accounting for a and allocated following close consultation with wider variety of different circumstances and indeed major stakeholders such as Council. The financial the needs of unique regions. backing from Government bodies such as RDA Understanding the diversity featured throughout provide absolutely critical support for visionary regional and metropolitan locations across Australia projects, in many cases not possible without such is critical to regional development and enabling “seed” funding. greater empowerment to regions and the ability to Federal and State Government funding over the set development priorities more relevant to local 2013-14 and 2014-15 financial years to Wagga circumstances is likely to prove more effective. Wagga was 1.3% of the nationally based spend The majority of funding allocations to regional to all regional capitals. The corresponding figure capitals is directed towards infrastructure in for NSW based spending on regional capitals is need of urgent repairs to decaying or dangerous approximately 3.3%. Wagga Wagga’s funding pool assets. Priority projects will often include visionary, for this period ($2,877,093) was significantly less capacity building projects designed to encourage than NSW based regional capitals featuring similar growth – such projects should not be discounted population bases and demographics including so readily and always strongly considered on merit. Albury, Bathurst, Dubbo and Tamworth. Regional Context in part ensures that debate about national and state spending priorities is sharply focused on The impact and contribution of the regions is too highly populated areas exhibiting a population often overlooked, a fact emphasised when it is critical mass, rather than on regional cities and considered that roughly one third of the nation’s surrounding areas. population reside in regional areas and the bulk of our exports originates from locations outside the No one level of government can fully respond capital cities. Importantly, the economies of our to the diverse needs and circumstances of regions and cities are co-dependent and linked Australia’s regions, and partnerships are essential through economic, cultural and social ties. for coordinating the activities and investments of different stakeholders. The Infrastructure Finance Reform Issues Paper published by the Infrastructure Working Group Various policy solutions have been proposed observed that ‘there is widespread and ongoing to tackle the local government infrastructure concern that Australia’s rate of investment in backlog. For example, increased grants from state its physical infrastructure is not keeping pace and federal agencies, as well as greater local with demand’, which has resulted in a ‘large government borrowing. Some remedial public and growing infrastructure deficit’, estimated at policy initiatives have been initiated to great effect, between ‘$450 billion and $770 billion over the such as the NSW Government’s recent Local next decade’. The problem is especially acute in Government Infrastructure Renewal Scheme and Australian local government, particularly in regional, the Commonwealth Roads to Recovery Program. rural and remote local councils. It is acknowledged that the size of the infrastructure backlog and its concentration in predominantly non-metropolitan areas render it essential that further action be taken to reappropriate future investments. The development of targeted and effective government policy is faced with numerous challenges including the limited availability of information regarding the distribution and magnitude of the local infrastructure backlog. This inhibits efficacious policy development and Investment challenges RECOMMENDATION and opportunities to Proactively promote growth by directing greater levels of funding towards visionary, maintain or grow regional strategic investments designed to build upon a region’s productive assets. Increase the capitals, including use of partnerships between public, private and voluntary sectors in the development and infrastructure, community implementation of local and regional policies. and human services, by successfully harnessing the power of global communications and markets. Commitment and investment from Wagga Wagga City Council in the Riverina Intermodal and natural resources Freight and Logistics Hub meets this objective to some degree, delivering access to international Wagga Wagga Context markets through increased efficiencies and sound economic development strategies. • The current level of transport infrastructure in Wagga Wagga is insufficient to support new Economic Development strategies designed to and expanding industry in the area. Limitations encourage investment and job creation have in the current infrastructure and facilities are been developed at the Wagga Wagga Airport and constraining industry and the freight task is not formalised through the Airport Master Plan. Wagga being transported in the most efficient way. Wagga City Council have undertaken major capital developments to implement stage one of the • Funding projects such as the inland rail route airport master plan and the investment potential and RIFL enable better access to export markets at the airport has increased as a result, with a for regional produce, improvements that directly number of businesses choosing to establish. Stage relate to federal and state government priorities. one included the development of a commercial • Police Association Southern Region executive aviation precinct including new Code C aircraft member Mick Connor said the “Wagga Local infrastructure, access roads and services to Area Command (LAC) was the most understaffed support maintenance and repair organisations in the state” Currently Wagga is estimated establishing at the airport. to require a further 28 police officers to meet Subsequent to the capital investment by Council, demand and increased strain on the delivery of Douglas Aerospace established at the Airport this fundamental service. and commenced operations in 2014. The aircraft • Currently large areas of the industrial area in East refurbishment business specialises in painting Wagga have critical internet issues, with some aircraft up to B737-800 and A321, creating a businesses forced to pay exorbitant costs just niche market in Wagga which is unique to regional to establish a reliable connection capable of the NSW. Douglas have painted private, corporate and speeds required to make simple transactions passenger airline aircraft at their facility and have such as EFTPOS and emailing. a contract in place with Virgin, that will see some of their narrow body jet fleet being painted here in Significant opportunities exist for regional Australia Wagga rather than heading offshore. This means to capitalise on the many positive aspects and export revenue will remain here in Wagga rather locational advantages posed by their unique than being spent in Asia. environments. It has been suggested that regional cities would enjoy a prosperous future Increased aviation sector investment has indirectly Examples of industry experiencing significant benefited sectors such as education. As an issues with regards to the internet are undoubtedly example, a MOU has been established with TAFE common across Australia. In Wagga Wagga, a NSW Riverina Institute to develop a Certificate number of the business zones have expressed in Aero Refinishing. This certificate course will discontent with poor connection speeds and result in training both domestic and international availability and are forced to conduct business students. The Australian Airline Pilot Academy was using a connection too slow for simple processes established at Wagga airport in 2010. The world such as EFTPOS and email. Large areas of the class facility can accommodate up to 94 students industrial area in East Wagga for example have with a focus on attracting both domestic and critical internet issues, with some businesses international students. AAPA is a major driver of forced to pay exorbitant costs just to establish a economic growth and employment at the airport reliable wireless connection. It is hoped that the and indeed the region as a whole. NBN will provide some respite to these issues and prioritisation to areas in desperate need would be welcomed. Internet Poor internet connection speed equates to commerce blocking infrastructure, and Freight Transport improvements in speed and reliability are essential Efficiency through freight transport is critical to to maintaining current economic activity. Further improving cost competitiveness for industry while to this, access to a suitable internet connection also reducing the social and environmental costs is undoubtedly a major contributing factor for on the communities responsible for generating a businesses considering relocation, expansion or significant portion of the volumes moving in and establishment. In the first iterations, Wagga homes out of their respective regions. The current level and businesses were among the first in Australia of transport infrastructure in Wagga Wagga is to connect to the National Broadband Network insufficient to support new and expanding industry (NBN), generating significant excitement amongst in the area. Limitations in the current infrastructure the community. When connected, the rollout will and facilities are constraining industry and the provide a great enabler for the Wagga Wagga freight task is not being transported in the most community, the surrounding region and indeed the efficient way. nation as a whole. The city continues to facilitate a growing share As the internet has evolved to become an essential of the national road and rail freight task and the service, a reliable connection may only be proposed inland rail route will be a conduit for accessible in more densely populated areas and the large scale of export activities which already speed is maintained in locations reaching a certain exist within the region. Council is of the view critical mass of population, in some instances that industry is setting up around the existing including regional capitals. When the National mainline and we are encouraging this through the Broadband Network (NBN) was announced, it development of the Bomen Business Park and was welcomed as a means of narrowing the the proposed RIFL Hub. Other regions have also social inequity between residents of places such taken steps to encourage private sector investment as Wagga Wagga and those in metropolitan in order to achieve efficiencies in rail and freight areas. Communities in areas such as these and transport. Additionally, the project provides direct those living closer to the central business district benefit through encouraging industry to move a welcome the continued rollout of high speed portion of the nation’s freight task from road to broadband and would strongly encourage the rail. Improvements to access and availability of connection process to be expedited where and rail terminals will encourage operators to consider when possible. utilising rail to transport goods to port. Access to efficient and effective supply chains freight transport industry directly impacts the will often influence an industries ability to increase economic activity of a region, state or country as a margins and drive down costs of production. whole. In 2011 the volume of freight moved on the Therefore, when considering where to establish, New South Wales network was 409 million tonnes, expand or relocate, choose a location that has contributing approximately $58 billion to the Gross access to inputs of production while offering the State Product. best possible supply chain solution. Increased With that number set to nearly double by 2031 connectivity contributes to regionally based to 794 million tonnes, projects such as the inland businesses competitiveness by reducing transport rail route are clearly vitally important in maintaining costs, positively filtering down to reduce costs of and expanding the current capacity and ability production. to meet demand in the future. It is therefore It has been acknowledged that Australia’s rail imperative for all levels of government to develop infrastructure lags significantly behind some of the future proofed strategies including the design and nation’s competitors in international grain markets. implementation of the necessary upgrades to key Several recent reports highlight inefficiencies in the freight infrastructure. onshore supply chain enabling grain to move from In a review investigating the opportunities and Australian farms to ships in local ports. New South challenges for the Australian economy, Access Wales Farmers Association grains committee Economics identified transport and logistical chairman Dan Cooper believes that from farm impediments as major constraints for export which gate level backwards, Australia is home to some ultimately affect the global competitiveness of the of the most productive and innovative farmers in agriculture sector. Wagga Wagga City Council the world. However, when produce moves from agrees strongly with the concerns of stakeholders the farm gate to the customer we have access that load limits, rail and port access and ageing to the equivalent of a supply chain at third world infrastructure are critical concerns and affect standards. Therefore, if Australian exporters productivity. are going to take a hold of the opportunities present in Asia and other growing international Funding projects such as the inland rail route and regions, significant capital must be invested in RIFL enable better access to export markets for the local supply chain. This is evidenced by a regional produce, improvements that directly relate report by the Australian Export Grains Innovation to federal and state government priorities. Centre, revealing that many of the railways used to transport grain can only handle axle loads of between 16 tonnes and 19 tonnes, compared Passenger Transport with 23 tonnes or more in Canada and the United High speed rail (HSR) feasibility studies have States. identified Wagga Wagga as a recommended regional station along the Melbourne to Sydney A combination of small branch lines with speed alignment of the HSR corridor. Regional stations and weight restrictions means many grain trains such as Wagga Wagga were recommended in eastern Australia carry about 2,000 tonnes per based on potential patronage and utilisation of train to port. In Canada, trains can carry 10,000 the service. To minimise the cost to establish the tonnes at a time. Australian suppliers enjoy a necessary infrastructure and avoid disruption to shipping freight advantage into South-East Asia existing built-up areas it has been proposed that allowing grain from Australia to be landed at a a local station be built within 20 kilometres of the lower price than grain from Canada for example. CBD. Ideally, the station would be established However the high supply chain costs are putting outside any highly built up urban areas and include that competitive advantage at risk. car parking facilities and passenger interchange The efficiency and cost competitiveness of the connecting to local public transport services. The market assessment showed strong existing demand for high speed travel between the capital RECOMMENDATION cities and to and from regional centres. To put the demand for such services in locations such as Improve the skill base of the regional labour Wagga Wagga into some context, visitation to the force through considered and consultative city was in excess of 1.4 million visitors in 2014 funding allocation to education institutions with an approximate contribution of $282 million to such as regional TAFE’s and regionally based the local economy throughout the year. Overnight universities. visitors spend approximately $383 per visit and defence based skills at the RAAF base and stay an average of 2.6 nights, while day visitors will Kapooka army barracks, along with the Riverina’s inject up to $149 into the local economy each trip. largest employment service providers. While On a broader scale, the Riverina experiences over regional Australia accounts for approximately 40% 2.2 million visitors each year with approximately of the population, young people (15-25 years) 40% of these overnight visitors choosing to stay in living outside of the metropolitan areas are almost Wagga Wagga. half as likely to study at University. The relatively Domestic overnight visitors to the Riverina are recent establishment of two universities in Wagga predominantly (67%) from NSW with approximately Wagga, additional to the CSU campus, further 20% from Victoria. The main purposes for a enhances the attractiveness to young adults to domestic overnight visits to the Riverina is Holiday stay and commence studies outside of major or leisure (38%), Visiting friends and relatives (32%) cities. The challenge for Wagga Wagga and indeed and Business (20%). the majority of regional Australia is to continue The preferred HSR system would offer two types closing this gap and offer opportunities for tertiary of services including inter-capital express services education attractive to potential students. operating non-stop between the capital city The city is home to three universities, including central stations but with some also stopping at the the largest Charles Sturt University campus from city peripheral stations and inter-capital regional the network of 6 regional locations. Enrolments at services. Inter-capital regional services would offer CSU’s Wagga Wagga campus were in excess of high speed services between the capital cities and 3,600 for the 2013 calendar year. major regional centres such as Wagga Wagga. In 2011 the University of Notre Dame established Regional services would also facilitate travel the Wagga Wagga Rural Clinical School in the between regional stations, although some inter- grounds of Calvary Health Care Riverina. In regional movements with low demand may require 2014, a standalone, purpose built clinical school passengers to change from one service to another building was constructed, a project funded by the at an intermediate station to complete their journey. Commonwealth Government under a Rural Clinical Support for a HSR alignment including Wagga Schools funding grant. Wagga is unquestionable and the region would The University of New South Wales operate the benefit from a social and economic perspective. Rural Clinical School, with the administrative Future study and subsequent funding of this headquarters and Wagga Wagga teaching campus initiative should be expedited where possible. located in Harvey House, within the grounds of the Wagga Wagga Base Hospital. The School employs Education academic, administrative, research and IT support Education and training is delivered to the Wagga staff. Wagga community across the full spectrum of TAFE NSW Riverina Institute is one of the largest learning, from pre-school to university, certificate campuses in regional NSW. The institute has a to advanced diploma, aviation and pilot training, vision to inspire regional prosperity and build the skills, qualifications and employability of people in housing estates in Wagga have a significantly regional Australia. high percentage of social housing comparative to owned, mortgaged or privately rented property Increasing higher education participation and - some Wagga Wagga suburbs exhibit almost indeed the duration of study will boost productivity 70% social housing. These areas are becoming and ultimately lead to an increase in the gross hotspots for domestic violence, malicious damage regional product. Additionally, education providers and many other crime categories. In metropolitan indirectly promote social inclusion, volunteerism, cities and some outlying areas where this is the civic participation, healthy lifestyles and case plans have been put into place to reduce the reduced crime. It must be noted that the federal intensity of social housing and the sites have been government has committed to improve access to redeveloped to increase low cost housing options health and education services throughout regional and improve wellbeing for people residing in these Australia, seeking to have 40% of all 25 – 34 year areas. olds with a bachelor level qualification of above. Additionally, increased funding and greater In order to reach commitments such as these it access to youth focused activities through greater is estimated university graduates must increase investment in localised programs will alleviate some across Australia by more than 200,000 by 2025. stress factors on locally maintained infrastructure Of course, the growth potential in regional cities and services such as the Police. Investment is will need to be activated to reach the ambitious required in sports and extra curriculum programs targets. throughout the public school system to decrease school attrition rates. Privately funded programs Social Infrastructure and Support such as The Clontarf Foundation, recently Communities in regional capitals, especially established at Mount Austin High School, those in non-coastal locations, have very limited have been highly successful through engaging transport options and demand exists for improved students exhibiting poor participation rates and public transport systems and availability. For lack of interest in school based activities through example, currently in Wagga Wagga there are incentivised programs and sport. buses available during core business hours but Wagga Wagga has a relatively young population not available after hours and on weekends. For off the back of the Universities and defence people who are socially isolated due to age or bases, however under recent funding reforms socio economic status this causes further isolation and program restructures the city has lost funding and reduced access to employment and health specifically designed to engage the most vulnerable systems among other essential services. young people. As a result of the reprioritisation of Wagga Wagga has a committed police force funding the viability and sustainability of multiple however resources are inadequate to deliver agencies has been severely impacted, with at least the basic services required. Police Association one agency recently closing down in Wagga. This Southern Region executive member Mick Connor is of significant concern as the NSW Bureau of said the “Wagga Local Area Command (LAC) Crime Statistics website states that people aged was the most understaffed in the state” Currently 10-17 located in Wagga Wagga represent the Wagga is estimated to require a further 28 police highest percentage of offenders across 6 of the 10 officers to meet demand and increased strain on crime categories for the Local Government Area. the delivery of this fundamental service. Of course, Wagga Wagga has seen over 3 million dollars increased demand for services such as Police and invested in the building of youth and community law enforcement potentially relates directly to social centres by Council and NSW FACS over the past issues running more deeply than at the front line of 4 years, however there is no longer term state or the services that police deliver. For example, social federal funding allocated to coordinate services from these centres. These centres are located in and or use of cannabis, a 100% increase in areas where a highly vulnerable population group persons charged with possession and or use of exists and funding should be allocated to continue amphetamines and a 400% increase in persons the delivery of the vital services the centres were charged with possession and or use of other designed to deliver. drugs. Over the same period there was a 100% increase in dealing or trafficking of amphetamines Investment in programs designed to reduce and a 100% increase in other drug offences. the uptake of methamphetamines and alcohol Wagga Wagga has a significantly higher number of abuse through prevention and early intervention alcohol related hospital presentations compared to is urgently required. The cost burden on society the New South Wales average. borne from drug and alcohol epidemic such as ice addiction is escalating and urgent measures Examples of industry best practice in attempting are required to bring the issue under some level of to address some of the social pressures listed control. It is envisaged that an increase in funding include the establishment of Learning Communities for beds located at local rehabilitation facilities in outer Melbourne and Townsville. Learning such as O’Connor House and longer term support communities encourages increased motivation programs will assist in beginning to address the and desire to learn and take advantage of both issue. informal and formal learning opportunities. The Hume Global Learning Village in outer Melbourne Statistics collected between 2009 and 2013 has been established for some years and good provide some context to the social pressures data has been collected reflecting how living in being felt not only in Wagga Wagga but across the a learning community inspires and empowers nation. Australian statistics reveal there has been a individuals to pursue adult learning opportunities 32% increase in persons charged with possession – regional capitals such as Wagga Wagga would benefit from a cohesive and shared approach to Communities and regions will prosper and remain learning with financial assistance and direction from sustainable when change is welcomed and the state and federal governments. intention to develop and encourage a positive investment climate overrides the status quo. Local government underpins economic development Regional Context efforts in this country and is essentially at the coal Regional economic development plays an face of all efforts to generate new drivers of growth. important role in the overall performance of Outcomes and impacts are felt both directly and Australia’s economy. The prosperity of regional indirectly in the areas of delivery with the majority of capitals and the surrounding localities directly funding for regional economic development borne affects income, employment, investment, working by the Federal Government purse. conditions and ultimately, the wellbeing of all Economic development organisations based Australians. Furthermore, the active and concerted in local governments are the most numerous effort to encourage and support economic type of development body in Australia and local development in regions has the potential to governments are the most important partners significantly benefit neighbouring communities of these agencies. Local government funding and indeed the nation as a whole. Effective enables many, if not all, of these bodies to exist regional development policy relies on all levels of and enables the regions and communities’ government working towards a mutually beneficial representation to both Federal and State goal with a clear focus on the challenges and Government agencies with regards to economic opportunities of a particular region. development. While increased and targeted Historical urban and regional development studies consultation and funding from State and Federal have tended to focus on urban centres as the Governments are vitally important for local driving forces in innovation and growth, with economic development agencies across Australia, surrounding rural areas cast in a passive and they are less important than the partnerships residual role so that rural and urban development formed with local governments. debates often tended to be conducted in separate Without such agencies based locally and realms. Multiple stakeholders, including different advocating for the communities they represent, the levels of government, development agencies and noise made in the regionals would be lost amongst not-for-profit organisations, often work towards the demands of the more densely populated, so similar regional economic development objectives. called urban areas of Australia. Working in a collaborative and cooperative way allows these organisations to take advantage of efficiencies, maximise their efforts and provide a well-rounded response to regional issues. governments to drive and deliver to the other tiers Incentives and policy of Government. Federal and State Governments need to take on a greater responsibility to develop measures that would a vision for regional Australia and allocate funding priorities through consultation and engagement support sustainable with the local authorities, as opposed to reacting growth in regional to shortfalls in infrastructure and service levels in the regional areas. Regional cities are under capitals recognised and get relatively little focus in development discussion at the Federal and State levels. Policy planning and development must Wagga Wagga Context focus more on including the regional areas and • Wagga Wagga encourages state and federal recognise the contributions made from these areas governments to continue exercising support for are not insignificant. policies that encourage decentralisation and drive growth and prosperity in the local Wagga Wagga Department of Education data show that regional economy – this can essentially be achieved students are often attracted to the cities to through the acceleration of population growth. undertake studies not offered locally, such as medicine. Conversely, the CSU campus at Wagga • Wagga Wagga based company Riverina Oils and Wagga experiences strong enrolments in courses Bio Energy (ROBE) plans to triple their oil seed unavailable in metropolitan areas such as veterinary crushing and refining throughput, however relies studies. A large portion of these enrolments consist on the Riverina Intermodal Freight and Logistics of students based in cities seeking to undertake Hub development for access to sufficient oil seed studies not offered at their local universities. volumes. Relatively high-achieving regional students have • Generating over $1 billion annually in agricultural historically tended to have a preference for and horticultural production, the Riverina is metropolitan universities. For these and other Australia’s largest producer of wine and is a reasons, there has always been a flow of students major centre for defence. out of the regions and into the urban, built up areas. • One third of the nation’s population reside in regional areas and the bulk of our exports A Sydney Morning Herald case study of focused originate from locations outside the capital cities on the Ariah Park Central School in the Riverina and the regional economies are intrinsically linked and examined the migration patterns of the Year through economic, cultural and social ties. 10 class of 1999. The story revealed that 16 of the 19 students now lived elsewhere. It must Regional capitals in Australia are quite diverse in be noted that case studies such as these mask size and characteristics however they all share the the rich complexity of what is happening in rural unique role of providing a central point of access Australia and discounts the fact that a portion of to essential infrastructure, services, business, these “leavers” may move back at some stage employment and education. For example, The of their lives, and also does not account for the Wagga Wagga Base Hospital services a patient “movers” into the area of focus. Partly countering catchment area of approximately 297,000 people, such movements are the inflows of youth into a population mass greater than the Riverina. It is rural areas. For instance, at the 2001 Census, of evident that regional cities such as Wagga support the population aged 15–24, 85 871 moved from not only local residents but the whole network country areas to capital cities while in excess of of surrounding towns and rural communities. 29,000 people relocated from the city in search of Planning and subsequent funding for regional a tree or sea change. Research suggests that a development is increasingly being left to local large portion of relocations occur from people who have originally grown up and moved to the city, before deciding to relocate back to their town or RECOMMENDATION city of origin. Nevertheless, there was a substantial net loss of people aged 15–24 from country areas State and Federal Governments work with to cities and to large population centres. To better local Government to identify partnership- understand migration flows into and out of regional based initiatives such as Evocities to actively capitals, it is important to look at the trigger decentralise congested capital cities and factors, the effects of migration to locations outside incentivise relocation to regional capitals. of the region, and debates about possible policy NSW State Government, the Riverina ranks only responses. tenth from fourteen. While many departments The prolonged period of youth out-migration has maintain regional offices, these are often of meant that the size of the youth population in much smaller scale than metropolitan or outer- rural areas has declined. For example, in a 2004 metropolitan offices. Priority should be given to study seven inland towns (Carrathool, Forbes, Hay, relocating positions that need not necessarily be Leeton, Narrandera, Temora, and Tumbarumba), located in Sydney and the expansion of regional recorded a 21% fall in the number of males aged offices. 15–19 between 1986 and 2001 – females recorded Wagga Wagga encourages state and federal a fall of 18% across the same age category. governments to continue exercising support for Slightly older individuals registered an even greater policies that encourage decentralisation and disparity with males aged 20–24 down 33% and drive growth and prosperity in the local Wagga females 37%. Where these people go depends Wagga economy – this can essentially be achieved on perceptions of potential destinations, which through the acceleration of population growth. are influenced by family and friends and on the Population accelerants include programs such motivations and trigger factors behind migration. relocation grants, incentivising relocation of skilled workers and more broadly the Evocities program, Relocation and Decentralisation essentially encapsulating all elements of the drive There is a general perception that the other the relocate people from Sydney to regional areas. levels of government do not do enough to More specifically, state government incentives support regional cities and have only a lukewarm such as the Regional Relocation Grant provided commitment to decentralisation, particularly of successful applicants who relocated from government jobs. It is somewhat understandable Sydney to regional NSW with a $7,000 grant, on that locations such as Western Sydney be the the proviso they had purchased a home in the favoured option for the relocation of government new location. This grant funding concluded in departments, due to its relative proximity to September 2014. The Skilled Regional Relocation Sydney’s CBD and the significant population Incentive is a cash payment of $10,000 for growth within the area. However, by establishing employees that fill skilled jobs in regional locations government agencies in locations such as Penrith, for a minimum period of two years. Liverpool and Parramatta, the relocation is merely The Evocities program recently marked four years shifting the load within one metropolitan area and since establishment and has been successful in fails to address the core concerns raised by the encouraging people living and working in Sydney taskforce such as reducing traffic congestion in to relocate to any of the seven Evocities. The the Sydney CBD and allowing employees to work program is collaboration between the partner closer to where they live. Currently Wagga Wagga Councils of Albury, Armidale, Bathurst, Dubbo, is the base of 9 NSW Government regional offices. Orange, Tamworth and Wagga Wagga and is Despite this, when considering regions within NSW one of the most successful regional marketing and the percentage of persons employed by the campaigns undertaken in Australia to date. It has attracted significant market penetration and Roads and Rail Investment delivered some fantastic key outcomes for all the The inland rail route and RIFL Hub aims to address cities involved, including an estimated additional the evident demand for improved rail freight $174 million of economic activity across the seven connections and to encourage expansion of cities. Indirectly, the Evocities project has raised industrial production in Wagga Wagga by new and the credibility of NSW inland regional cities with a existing companies. This includes enhancing the range of different stakeholders and provided the opportunity available to industrial businesses with cities with a collective voice in their discussions facilities located in metropolitan areas to relocate with both levels of government. to regional centres such as Wagga Wagga. Some key outcomes from the campaign since its Construction of the inland rail route, RIFL Hub and launch in September 2010 include: enabling infrastructure will facilitate the expansion • 267,957 visits to Evocities.com.au of industry in regional NSW and allow for the release of around 220ha of industrial land located • Over 1.07 Million visits to Evojobs.com.au at the Bomen Business Park. The availability of this • Over 16,000 jobs promoted land, along with the other benefits that the area can provide, will make Wagga Wagga an attractive • 2,533 enquires lodged via Evocentral location to establish production facilities. • 2,208 media placements reaching a potential Wagga Wagga based company Riverina Oils audience of more than 51 Million people across and Bio Energy (ROBE) plans to triple their oil both traditional and online media. seed crushing and refining throughput, however Initiatives such as the Evocities program acts as an relies on the RIFL Hub development for access artificial driver of population growth, encouraging to sufficient oil seed volumes. ROBE currently greater increases in population than would employ approximately 65 people, anticipated to naturally be achieved. The program transfer’s skills, increase substantially off the back of the proposed reversing to some extent the traditional brain drain expansion. This case perfectly illustrates the to larger cities and builds the knowledge base scenario facing many businesses seeking to within the local labour force. Local government increase output, hamstrung by either inefficient funding to ensure the future of the Evocities or incapable supply chains, in some cases both. program is currently being negotiated by the Additionally, the following companies are expected member Councils – funding from state and federal to use the development of intermodal facilities and governments has dried up since the program was supporting infrastructure to expand operations: initially given seed funding in 2010. Even when • With increased land available and improved the overall population of a region is static, internal logistics options, Renewed Metal Technologies migration and increasing mobility means that there (RMT) plans to consolidate their Adelaide and are shifts in the settlement patterns of populations, Sydney facilities in Wagga Wagga. usually relocating to where opportunities, infrastructure and services exist. • Visy Logistics are considering building or leasing a terminal in the region. Decentralisation initiatives such as these, while difficult to measure with hard data, are succeeding • Hyne Timber is considering the development of a and provide added encouragement for businesses regional distribution facility at Bomen with the rail and employees to relocate from metropolitan areas and road infrastructure improvements to regional Australia. Skills Shortages Regional Context The ability of businesses to attract and retain The continued growth and development of the necessary skilled staff is critical to remaining sustainable and vibrant regional cities and towns competitive in an often fiercely competitive is critical to the strengthening and development environment. Despite a strong local economy and of regional Australia and the broader national low unemployment rate, businesses operating in economy. While it is acknowledged that outlying the Riverina are often faced with skill shortages. population centres including towns and villages may be disadvantaged or depressed and deserve To give some perspective to the region’s size a sustainable future, strategies to achieving this and importance, the Riverina labour market is outcome include strengthening the regional capital the second largest but least populated of the acting as the central hub. Further to this, it is five labour market regions in New South Wales. suggested that outlying communities should not be Generating over $1 billion annually in agricultural the primary beneficiaries of regional infrastructure and horticultural production, the Riverina is development and strategic investment should Australia’s largest producer of wine and is a major consider the cost versus benefit equation when centre for defence. Wagga Wagga’s unemployment appropriating federal funding. rate of 4.9% is well below the NSW and Australian averages, highlighting that the city has numerous Approximately one third of the nation’s population employment opportunities in many different reside in regional areas and the bulk of our exports sectors. Regions with strong levels of human originate from locations outside the capital cities capital are more resilient to unexpected change and the regional economies are intrinsically linked and better placed to capitalise upon opportunities through economic, cultural and social ties. The for growth. Highly skilled workforces can also performance of a single region incorporating the leverage private sector investment as business regional capitals and surrounding “spoke” towns is more likely to be located in close proximity to and villages can have a significant impact on the a skilled workforce. Working with business to performance of the nation as a whole. Regions are facilitate training and education is one way regions therefore crucial to Australia’s national prosperity can secure ongoing investment or leverage new and analysis of additional funding provided to investment. regional capitals must be based on population, demand for services and their strategic importance Addressing skills shortages presents many for the region, state or country. challenges and opportunities with modern labour markets demanding a highly skilled and More than half of the absolute growth in gross adaptive workforce. High levels of human capital regional product and population over the past will help underpin sustainable economic growth decade has occurred in regional cities. Higher across a wide range of sectors within the Wagga performing regional cities find strength through Wagga economy, and more broadly the Nation’s physical stock and investment in physical economy. The changing economic conditions infrastructure, economic diversity, liveability and require an increased emphasis on Government importantly agglomeration. Agglomeration refers policy initiatives that support broad-ranging to physically concentrated economic activity. skills development and encourage workforce This is based on the premise that proximity is participation. good for productivity and that a dense network of activity will be more productive than fragmented pockets of activity. Population density is the number of people per square kilometre and is important because greater density promotes the formation of agglomeration economies. Large populations attract a diverse range of businesses, which find it convenient to be located near other relevant businesses, hence forming agglomeration economies. Perhaps the best example of agglomeration can be found in “Silicone Valley”, home to a relatively high portion of technology based businesses. However, the inverse effects of agglomerations can be outweighed by congestion costs as cities expand including inflation in land markets, transport bottlenecks, pollution and social problems. Cities can also face constraints in terms of skills shortages in labour markets and less directly through the innovative capacity of firms. Regional economic development strategies and funding appropriation that seeks to address the skills base of the population are most likely to unlock growth opportunities associated with agglomeration, including improved competitiveness and innovation. Such strategies will support development of specialised clusters of industry, business and research institutions and facilitate export and foreign investment opportunities and encourage prosperity and vitality in regional cities. commercial and residential property owners within The impact the changing the floodplain have experienced a tenfold increase in their insurance premiums. The evacuation of environment will have on the central business district and North Wagga residents in March 2012 caused significant regional capitals disruption to the everyday lives of thousands of people and will be remembered for years to come. Wagga Wagga Context In addition the release of the Murray-Darling Basin • Since 2009, Council has been working towards Plan raised considerable uncertainties about the upgrade of the levees that protect Central future water allocations and affected investment Wagga Wagga and North Wagga Wagga from decisions regarding agriculture, particularly in the flooding. western part of the region. • Estimated capital investment for levee The main commercial area of Wagga is protected construction is $18.8 million. by a levee which was constructed in the early 1960’s. It was upgraded in the late 1970’s and • The effects of severe drought on regionally again in 1983, and was thought to provide located areas are felt equally in Wagga Wagga protection to withstand a 1 in 100 year flood event. with a portion of the local economy either Temporary levees, in one form or another, had directly or indirectly reliant on the prosperity of also been constructed around the village of North agriculture. Wagga Wagga since 1936. These were formalised Regional capitals are by no means immune from as a 1 in 20 year levee in 1990. However, recent the impacts of a changing climate and the threat flood modelling has indicated that the levee of flooding, drought and bushfire has traditionally protecting the main city area of Wagga Wagga only been present in places such as Wagga Wagga. provides protection against a design flood level equal to a 1 in 60 year flood event whilst the levee surrounding North Wagga only provides protection Flooding against a design flood level equivalent to a 1 in 17 Regional capitals are by no means immune from year flood event. the impacts of a changing climate and the threat of Studies into the flooding of the Murrumbidgee River more frequent and severe weather events, causing have been undertaken including the development flooding, drought and bushfires. of various strategies to manage the risk posed to By way of example, Wagga Wagga being located the city. Since 2009, Council has been working on a sweeping bend of the Murrumbidgee River towards the upgrade of the levees that protect has flooded on many of occasions causing Central Wagga Wagga and North Wagga Wagga damage and inconvenience to the development from flooding to achieve the required 1 in 100 located within the flood plains. Since the first rural and 1 in 20 year levels of protection. Additionally, settlement in the early 1840s there have been 77 Council has also prepared modelling for a variety floods of over 8 metres. Flooding of the City area of flood scenarios. The upgrade of the levee in the south flood plain was frequent and to a systems will provide significant positive social, lesser extent flooding occurred in the North Wagga environmental and economic impacts for people Wagga village. living in and visiting the City of Wagga Wagga. Recent flooding events remain fresh in the memory These projects have been partly funded by of the community, with severe recent floods Commonwealth, State and Local Government. occurring in 2010 and 2012, affecting attitudes As well as preparing for the upgrade of the levee, towards development in the city, as well as the role Council has been active in rehabilitating the existing of the council. Since the March 2012 flood event, levees systems through capital projects as well as routine maintenance activities. Estimated capital investment for levee construction is $18.8 million. RECOMMENDATION The levee improvements will provide increased security and protection for residents and business Recommendation: Work collaboratively with owners located in flood prone areas. regional capitals as stakeholders to tailor regionally focused programs designed to increase research capacity and awareness Drought around the significance of agriculture and food The effects of severe drought on regionally located security. areas are felt equally in Wagga Wagga with a portion of the local economy either directly or migration is often considered to regional capitals. indirectly reliant on the prosperity of agriculture. Productivity growth in the agricultural sector will The agriculture sector employs almost 4% of the enhance the well-being and income of many in local labour force and contributed 3.9% of value- regional areas and address food security issues, add, with agricultural output in Wagga Wagga therefore drought management is vitally important exceeding $150m at the last national Census. to the regions prosperity. Australia’s ability to Demand for food from neighbouring Asian make the most of opportunities presented by countries is greater than ever before. Australia future growth in global food demand depends on produces some of the highest quality food and maintaining competitiveness through productivity fibre in the world, a significant portion of which improvements. Policy design and implementation originates from the Riverina Region. Australian are important determinants of agricultural farmers are renowned for clean and natural productivity because they will ultimately influence production systems, delivering a clear competitive the agricultural sectors ability to innovate and advantage. The challenge lies in meeting the global improve productivity. demand for food and fibre through increasing production. Therefore, drought management Regional Context systems developed from the national level down will be critical to ensuring supply from farming Climate change adaptation research and policy areas around the Riverina and Wagga Wagga will development must consider how projected be maintained in the face of environmental change. environmental changes are likely to alter the socio- economics of regional communities alongside Some of the worst droughts affecting much of the the national discourse. It has been suggested country and NSW broke in 2010 with relatively that the effects of climate change in Australia will positive seasons for harvest and livestock be relatively greater compared to other nations following. Fresh water availability and drought because of the energy intensive economy, largely management are key challenges for farmers in part through the manufacturing, transport and throughout most of Australia. mining sectors. Drawing from this, the impacts in The contraction of population in rural areas, either regional capitals may be compounded and effect directly or indirectly attributable to drought, has the agricultural and associated industries, a vitally the potential to affect regional centres, effectively important component of the economy. acting as a sponge city for the outlying areas as Productivity growth in Australian agriculture has services and economic prosperity declines. Small slowed over the past decade most notably in rural towns experiencing issues with sustainable the broad acre cropping and dairy industries. population is not a new phenomenon. More For example, broad acre productivity growth has recently, structural adjustments have affected declined an average of 1% per year since 2000. services and infrastructure maintenance/renewal It is likely that a variety of factors are behind this impacting employment opportunities. As a result, decline, with major influences likely to include extended drought conditions and a long-term reduction in public investment in research and development. Effective adaptation involves working with people to gather knowledge about adaptive capacity and the strength and responsiveness of communities in the face of future climatic changes. An important part of climate change adaptation is the ideological position and eagerness to engage in the discussion. For many rural communities the future can look grim, however the size and critical mass of population centres such as regional capitals can provide some buffering from climatic pressures and challenges. Businesses operating in the agricultural space are accepting and adapting to the present day challenges. In some instances they are instead looking forward to futures potentially not as reliant on the historical ability of the earth to generate wealth, and are exploring the option to diversify into sectors such as renewable energy production and agritourism.