Livingstone Shire Council Submission – Relocation of Commonwealth Government Agencies and Jobs from the Cities to the Regions
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Livingstone Shire Council Submission – Relocation of Commonwealth Government Agencies and Jobs from the Cities to the Regions 10 March 2017 Livingstone Shire Council Submission - Senate inquiry to examine the operation, effectiveness and consequences of the Public Government, Performance and Accountability (Location of Corporate Commonwealth Entities) Order 2016. Contents Executive summary ................................................................................................................................. 2 1. Benefits of decentralisation of Commonwealth Government Agencies ........................................ 3 2. Government agency relocation to the Capricorn Coast ................................................................. 4 3. Livingstone Shire Overview ............................................................................................................. 7 a) Destination of choice (live, work, play) ....................................................................................... 7 b) Key LSC indicators at a glance ..................................................................................................... 8 4. Employment .................................................................................................................................... 9 a) Employment by industry ............................................................................................................. 9 b) Employment by occupation ........................................................................................................ 9 c) Employment opportunities ....................................................................................................... 10 5. Education ...................................................................................................................................... 11 6. Health services .............................................................................................................................. 12 7. Major projects & Investment Opportunities ................................................................................ 13 a) $53M Yeppoon Foreshore and Town Centre Revitalisation ..................................................... 13 b) $30M Panorama Drive – Northern Strategic Link Road ............................................................ 14 c) $25M Gateway Business and Industry Park .............................................................................. 14 d) $6.2 M Local Disaster Coordination Centre and Community Resilience Engagement Hub ..... 14 e) Stage 1 $3.6 M Capricorn Coast Homemaker Centre ............................................................... 15 f) $16 - $18 M Scenic Highway Reconstruction and Upgrade Statue Bay .................................... 15 g) $4.5 M Emu Park Foreshore Redevelopment ........................................................................... 15 h) $2.5 M Barmaryee Multi-Sport Precinct - Yeppoon ................................................................. 15 i) $4.5 M Hartley Street Multi-Sport – Emu Park ......................................................................... 15 8. Housing affordability ..................................................................................................................... 15 9. Tourism and events ....................................................................................................................... 16 10. Connected economy ................................................................................................................. 17 11. Importance of regional cities to the economy .......................................................................... 17 12. Cost benefits of decentralisation to overall economy .............................................................. 19 13. Reduction in commuting costs and time .................................................................................. 21 Appendix A: Sources of information ..................................................................................................... 23 1 | Page Executive summary The Senate Finance and Public Administration References Committee announced on the 8 February 2017 that it will be holding an inquiry into the operation, effectiveness and consequences of relocating corporate Commonwealth entities to regional locations, as well as the economic, environmental and capability implications. The submission to the inquiry from Livingstone Shire Council builds a business case as to why Livingstone Shire and the Central Queensland region are unequivocally well-positioned to accommodate government research industries and government entities in our region. The submission details the region’s affordable housing, first-class health and education facilities, current major projects, family-friendly coastal lifestyle as well as existing and future employment opportunities. Regional cities such as Yeppoon and its surrounding townships have an important role as the location of regional scale services such as health, education, transport, commercial, cultural, social and government services. Australia’s regions are vital to the national economy, cultural identity and environmental amenity of our nation. Investing in regional cities provides cost benefits to the national economy. The establishment of a Commonwealth entity at the Capricorn Coast builds on the regions capacity to prove that we are a strong regional city that can deliver a place and services that will service and retain the people in our region while producing the maximum economic dividend to the nation. A relocated government entity would generate a wide variety of benefits to the Capricorn Coast region. These benefits include short-term and long-term job generation through construction activity, ongoing employment opportunities within the public service and a high level of consumption spending in the regional economy due to relocated employees and their families. Public investment is usually followed by private sector investment attracted to the government exhibiting a long term commitment to a region. The establishment of a major government office may trigger more public infrastructure spending (co-location) and/or public realm improvements. The benefits to the “relocating Commonwealth government entity” include, but are not limited to savings in accommodation costs, commuting time and costs, housing affordability, access to a skilled workforce and lifestyle benefits for employees. The Capricorn Coast would be ideally suited to government agencies and research industries that have grass roots firmly established in the region including beef production, agriculture, defence and marine science as well as new opportunities such as the establishment of innovation and disaster management agencies. 2 | Page 1. Benefits of decentralisation of Commonwealth Government Agencies Regional issues are not generally seen as a priority in the public service in Canberra. There have been a number of calls to decentralise public services from Canberra so that an understanding of regional issues can be better realised along with job creation and the flow on economic benefits. Decentralisation may improve the ways in which public servants understand and work for Australia’s diverse regional communities. A relocated government entity would clearly generate a wide variety of benefits to the Capricorn Coast region. These will include short-term and long-term job generation through construction activity, ongoing employment opportunities within the public service and a high level of consumption spending in the regional economy due to relocated employees and their families. Any type of public investment will likely be followed by private sector investment attracted to the governments’ long term commitment to the region. The establishment of a major government office often triggers public infrastructure spending and/or public realm improvements. Geelong has turned into an insurance hub with the National Disabilities Insurance Scheme (NDIS) relocation from Melbourne adding 680 workers to the region by 2018. The Transport Accident Commission is already based in Geelong. In 2016 it was announced that the Department of Human Services planned to open a 400 person office in Geelong alongside the NDIA building. WorkSafe Victoria is also committed to opening a head office in Geelong. The construction of the headquarters to house these agencies will create several hundred jobs, while the location of hundreds of more employees in the Geelong CBD will have a multiplier effect on jobs, growth and investment. In 2016 it was announced that four Canberra based rural research and development agencies would be relocated to offices in regional and rural Australia to provide greater engagement with farmers, growers and experts in these areas. The Rural Industries Research and Development Corporations’ (RIRDC) move to Charles Sturt University in Wagga Wagga will provide savings of $266,000 in annual rent costs and a total savings of $1,200,000 in operating costs. In a similar move the Grains Research and Development Corporation (GRDC) will establish four offices in Dubbo, Toowoomba, Perth (with the intent to move to Northam) and Adelaide, the primary headquarters will remain in Canberra. The Australian Pesticides and Veterinary Medicines Authority (APVMA) will be moved from Canberra to Armidale bringing approximately 189 jobs from Canberra to Armidale by 2019. Proving the multiplier effect