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 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

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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 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. ’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.

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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 of decentralisation the following government agencies are also located in, or have offices in Armidale CSIRO, the Beef Industry Centre of Excellence, the Australian Sheep Industry Cooperative Research Centre, Australian Poultry Cooperative Research Centre, Meat & Livestock Australia, Institute for Genetics and Bioinformatics, Animal Genetics and Breeding Unit, Institute for Rural Futures and the National Centre of Science, Information and Communication Technology and Mathematics Education for Rural and Regional Australia.

The benefits to a relocating Commonwealth entity are detailed throughout this submission but clearly savings in accommodation costs, housing affordability, reduced cost of living and lifestyle benefits for employees are high on the agenda.

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2. Government agency relocation to the Capricorn Coast Government agencies and research industries suitable to relocating to the Capricorn Coast are those that have grass roots firmly established in the region including beef production, agriculture, defence and marine science as well as new opportunities in the establishment of innovation and disaster management agencies. Some examples of government entities that could be relocated and established on the Capricorn Coast are detailed below.

1. Regional office for Emergency Management Australia

The Emergency Management Australia (EMA) is a division within the Attorney-General’s Department and the Australian Government Lead for disaster and emergency management. Working closely with state and territory governments and the international emergency management community, EMA delivers critical programs, policies and services that strengthen and maintain Australia’s national security and emergency management capability.

While state and territory governments are responsible for emergency management in their jurisdictions, EMA coordinates Australian Government support, both physical and financial.

EMA is home to the Australian Government Crisis Coordination Centre (CCC) an all-hazards, 24/7 facility that provides whole-of-government situational awareness to inform national decision-making during a crisis. The CCC also coordinates physical Australian Government assistance during disasters and emergencies and manages the National Security Hotline, a vital component of Australia's national counter-terrorism efforts.

In 2015, the Australian Government established the Australian Institute for Disaster Resilience (AIDR), to support implementation of the National Strategy for Disaster Resilience. AIDR is a disaster resilience knowledge centre that coordinates and promotes the development, sharing and use of information for anyone working with, or affected by, disasters. AIDR builds on extensive knowledge and experience in Australia and abroad, working with government, community, research, education partners and the private sector to enhance disaster resilience through innovative thought leadership, professional development and knowledge sharing.

By the end of 2017 the Yeppoon town centre will have a new state of the art Local Disaster Coordination Centre and Community Resilience Engagement Hub. This development will be a level 4 cyclone-proof 3 storey building that will function as a strategic hub for managing and coordinating disaster situations. The building will also focus on building community resilience through education and engagement programs. This building creates the opportunity for a regional EMA office to be established on the Capricorn Coast, the first of its kind that could act a satellite office for the Australian Institute of Disaster Resilience (AIDR) to create a resilience knowledge centre.

From a State government perspective the Disaster Management Office QLD has one office located in Kedron. There is an opportunity to have a central based office in the LDCC building that services and supports the Northern part of the state in partnership with a regional EMA office.

2. Yeppoon Satellite Office - Marine Park Authority (GBRMPA)

The Great Barrier Reef Marine Park Authority (GBRMPA) provides for the protection, wise use, understanding and enjoyment of the Great Barrier Reef. There is currently a regional GBRMPA office

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located in which provides compliance services, advice, permits and zoning maps. As the Capricorn Coast acts as an access point to the Keppels and the Southern Great Barrier Reef an office could be located in Yeppoon. This office could form part of an administrative service centre for the GBRMPA incorporating offices for AIMS and FRDC (see below).

3. Capricorn Coast Satellite Office and Research Laboratory - Australian Institute of Marine Science (AIMS)

The Australian Institute of Marine Science (AIMS) is Australia’s premier tropical marine research agency; currently the AIMS headquarters is located near Townsville. There is opportunity for a satellite office, laboratory and research facility to be located in Yeppoon (Gateway Business and Industry Park) or alternatively Iwasaki Capricorn Resort land.

4. Capricorn Coast Satellite Office and Research Laboratory - Fisheries Research and Development Corporation (FRDC)

The Fisheries Research and Development Corporation (FRDC) is a co-funded partnership between the Australian Government and the fishing industry. FRDC’s role is to plan and invest in fisheries research, development and extension (RD&E) activities in Australia, in particular ongoing sustainability with a focus on commercial (wild catch and aquaculture), recreational and indigenous. Yeppoon and its surrounding coastal areas and islands offer the perfect location for a research facility to be established in the area. The FRDC could be co-located with an AIMS research facility.

5. Capricorn Coast Satellite Office -Department of Defence Capability Acquisition and Sustainment Group (CASG)

The Department of Defence Capability Acquisition and Sustainment Group (CASG) purchases and maintains military equipment and supplies in the quantities and to the service levels that are required by Defence and approved by Government. There is an opportunity for a satellite office at the Capricorn Coast that manages the purchases and upkeep of military equipment needed for Training Area exercises.

6. Capricorn Coast Research Facility -Department of Defence Science and Technology Group (DST)

The Department of Defence Science and Technology Group (DST) provides science and technology support for Australia’s defence and national security needs. The DST provides scientific and technical support to current defence operations, investigates future technologies for defence and national security applications, advises on the purchase and smart use of defence equipment, develops new defence capabilities, and enhances existing systems by improving performance and safety and reducing the cost of owning defence assets. There is an opportunity for a research facility to be established at the Capricorn Coast in particular for evaluating machinery capabilities in a tropical environment and testing and enhancing existing systems and equipment. The Gateway Business and Industry Park provides an ideal location for storage of defence equipment and testing could be completed in the field during exercises at Shoalwater Bay Training Area, or in a co-located research facility at the Gateway Business and Industry Park.

7. Capricorn Coast Research Facility - Department of Agriculture and Fisheries

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While there is an established regional office of the Department of Agriculture and Fisheries at Parkhurst there is still the opportunity to partner with a private sector investor and Council to set up a specialist Aquaculture research facility at the Capricorn Coast.

8. CSIRO – Centre for Excellence

Establish a centre for excellence for collaborative research into new and existing technologies in any of the following speciality fields:

• Environment • Animals and plants • Farming and food production

The establishment of a CSIRO centre for excellence provides scope to build new and improved technologies and strengthen the local capacity of the Capricorn Coast to build our services sectors by partnering with existing industry and attracting new industry to our region.

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3. Livingstone Shire Overview

Figure 1. Map of Livingstone Shire Council Local Government Area (LGA)

a) Destination of choice (live, work, play) From beach to bush to burgeoning urban centres, Livingstone Shire is the enviable destination of choice for over 38,000 residents and more than one million visitors every year. Situated just 20 minutes from Rockhampton along ’s Capricorn Coast, the Shire spans over 11,776km2 and boasts a relaxed lifestyle, strong community values, diverse natural landscapes and a thriving tourism industry.

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The major centres of Yeppoon and Emu Park are undeniably the region’s premier lifestyle hubs, offering an extensive range of affordable housing and rental options, from executive villas and beach front homes to sea-side estates and lifestyle acreage. Livingstone Shire remains one of Queensland’s fastest growing areas outside the southeast corner, with approximately 1,000 new residents making a permanent sea change to the Capricorn Coast every year. A growing population is critical to the long term viability of our local community and one of our most important resources. With safe and reliable transport links just minutes from their doorstep, including a range of public transport options, around 7,000 Livingstone residents work in Rockhampton while choosing to live on the coast or neighbouring hinterland where median house prices ($380,000) are among the most affordable in Australia. Residents of Livingstone Shire also enjoy first-class training and education opportunities, including nationally recognised public and private schools with boarding facilities, as well as direct access to CQUniversity, ensuring the leaders and entrepreneurs of tomorrow can further their education and career prospects locally. With a host of major infrastructure projects currently underway, including a $53 million revitalisation of the Yeppoon Foreshore and Town Centre, the Capricorn Coast is also home to a thriving business community, offering extensive employment and training opportunities in general industry, construction and engineering, tourism, retail, hospitality and agriculture. The Gateway - Capricorn Coast’s first integrated Business and Industry Precinct - is strategically located just 25 minutes from , offering premium industrial land with high- speed fibre optic broadband to the premise and access to an established B-double transport hub. Proximity to the airport provides business with a direct link to international heavy-lift freight capacity and daily passenger services to , Townsville and the Gold Coast. Livingstone Shire forms an integral part of the greater Central Queensland economy, and has close working relationships with the local government areas of Rockhampton, Central Highlands, Gladstone, Banana and Isaac through the Central Queensland Regional Organisation of Councils (CQROC), to encourage economic growth, private investment and job creation across the entire region. It is this progressive approach to driving economic development, coupled with the regions unique and affordable lifestyle options, that ensure Livingstone Shire is the destination of choice to live, work, play and invest.

b) Key LSC indicators at a glance • Gross Regional Product - $1.63b (2014/15) • Population – 37,001 persons (30 June 2015) • Ave annual population growth – 2.4% (30 June 2015) • Population projection – 57,042 by 2036 • Labour force – 18,414 (30 September 2016) • Unemployment rate 5.1% (30 September 2016)

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4. Employment

a) Employment by industry

Figure2 Percentage Employed, Industry of Employment, Place of Work, Livingstone Shire, 2011

The Livingstone LGA employs a total of 18,414 people, being nearly half the population; approximately 20% of the population (7000 people) work in Rockhampton.

b) Employment by occupation In the Livingstone LGA 17.9% of employed persons work in the Technicians and trade workers occupation, while 15.5 % of employed people work in Professionals occupation (ABS Census 2011).

The top five occupation sub-major groups of employment for the Livingstone (LGA) were:

1. Sales Assistants and Salespersons (6.2%) 2. Automotive and Engineering Trades Workers (5.3%) 3. Education Professionals (5.0%) 4. Machine and Stationary Plant Operators (5.0%) 5. Hospitality, Retail and Service Managers (4.4%)

The unemployment rate in the Livingstone LGA at September quarter 2016 was 5.1% , 1 % lower than the Queensland State average of 6.1%.

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c) Employment opportunities The table below lists some of the major projects approved and under construction on the Capricorn Coast with a predicted generation of approximately 1242 jobs during construction and 1123 post construction (from the projects listed below); employment opportunities have never been better at the Capricorn Coast.

Table 1 Livingstone Shire Council Major Projects (not exhaustive)

Major Project Jobs Boost Yeppoon Foreshore and Town Centre 260 construction, 681 post construction Revitalisation Statue Bay Tourist Drive Approximately 71 Construction Jobs, no ongoing jobs The Gateway Business and Industry Park 450 construction jobs, 300 ongoing jobs. Panorama Drive Northern Strategic Link 90 construction jobs, no ongoing jobs Emu Park Foreshore Redevelopment 31 immediate new construction jobs, an estimated 72 ongoing jobs in Emu Park Capricorn Coast Homemaker Centre 200 construction jobs, 60-80 post construction (dependent on the final mix of retail) Local Disaster Coordination Centre 40 construction jobs Hartley St Multi-Sport Precinct – Emu Park 100 construction, 10 ongoing jobs

Despite all of the current major project development being undertaken; the last 10 years have provided some unwelcome challenges to the Capricorn Coast community and had a major impact on employment. The sudden closure of two major tourist attractions, and the Capricorn Resort Yeppoon resulted in tens of millions lost from the local economy and approximately 420 full time equivalent jobs (combined workforce from both resorts).

Since the downturn in mining and associated flow on effects on industries in the Capricorn Coast region, a preferred residential base for resource industry workers, contractors and their families, has been hard hit. Successive downturns in the region’s mining, resources and construction sectors have seen major employers and contractors close or relocate. Recently the resource industry is starting to show signs of life again with coal prices increasing dramatically; however there is still a long recovery process in place to reach the same level as it was several years ago.

Whilst Livingstone represents 30% of the broader regional population, it contributes only 7% to the local/regional economy with most employment and education hubs currently being located outside the shire. As a result, 33% of our community commute to employment locations outside the region and the majority of our residents’ disposable income is not spent locally. The Capricorn Coast businesses and industry need to grow and diversify to ensure we have the economies of scale to offer more employment opportunities to grow the resident workforce. Employment opportunities for youth and university graduates (outside the capital cities) are also a necessity to keep the younger generations in our region.

Very few new businesses have established in Yeppoon in recent years. Most businesses and employment opportunities exist outside the region in either Rockhampton or the mining localities in Central Queensland. Registered businesses per 1,000 of population figures dropped from 87.1 in 2010/11 to 77.5 in 2013/14, well behind Queensland average of 88.2 for 2013/14.

Tropical Cyclone Marcia, 20 February 2015, was the most devastating event. Crossing the coast as a Category Five and impacting upon both the Capricorn Coast and Rockhampton from north to south

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leaving behind a trail of destruction. The overall regional damage estimates were in excess of $750,000,000. The social and economic disadvantage will be felt for several years with displaced agricultural sector and tourism workers, loss of productive agricultural capacity, and the loss of tourism trade.

Despite these challenges we continue to grow with the quality of life offered being a major factor attracting employees to move to the Capricorn Coast. Families relocating to the Capricorn Coast enjoy a cheaper cost of living, reduced congested travel time, access to beaches and a family friendly place with a range of activities and events to choose from.

The re-location of a major Commonwealth agency/office to the Capricorn Coast will provide a much needed boost to a region hard-hit in the last 10 years by economic and resource mining downturn, followed by a natural disaster. A major Commonwealth agency/office located at the Capricorn Coast will provide security and permanent jobs, aiding in the economic recovery of the region alongside the major projects currently being undertaken.

5. Education Unlike many regional communities within Australia, access to tertiary and further education within the Capricorn Coast is comparatively easy, with a TAFE campus and Central Queensland University (CQU) both located only a twenty minute drive away in Rockhampton. CQU also has a study centre located in Yeppoon set up with computer laboratories, classrooms and a video conferencing room. The TAFE recently underwent a transition and was incorporated with CQU, improving the quality and diversity of post-school tertiary education offerings. As a result CQU now offers a full spectrum of courses from certificates and diplomas through to doctorates across eight subject areas.

There are currently several top quality schools in the region offering Prep to Year 12 with boarding school options for students outside of the region. Combining this with CQU, which offers traditional university and TAFE offering means the Capricorn Coast could offer to host a campus in Yeppoon. The region needs to focus on promotion and growing the Capricorn Coast and Rockhampton as a regional education destination/hub for higher performing students.

Health, education and training are one of the highest employers in the region and approximately twenty per cent of the workforce is employed in either of these industries. This offers the chance for partnership opportunities between Queensland Health and CQU to establish an integrated medical school at CQU. The Asian education market should also be targeted by offering semester or year scholarships to international students to attend CQU and setup communal accommodation offerings in the Capricorn Coast with transport to and from the university provided. Currently 80% of international students in Australia come from the Asian region. Australia’s international education activities generate over $15 billion of export income annually and this revenue supports more than 100,000 jobs (Australia – Educating Globally Advice from the International Education Advisory Council 2013).

CQU has the facilities to expand into specific fields of expertise such as agriculture, health and education that can be linked back to the strong industries in the region and could partner with local high schools such as Saint Brendan’s to build programs to encourage high school leavers to pursue a university qualification. The number of students studying for agricultural qualifications has virtually halved in the past decade, as mining and other careers have offered better prospects. This means

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there are now more agribusiness jobs than qualified graduates (Growing Central Queensland Review 2015). The best way to get professionals to work in regional Australia is to train them in the regions; 60-80% of regional university graduates are employed within regional Australia within a few months of graduating. (Regional Universities Network (RUN) Submission to the Rural and Regional Affairs and Transport References Committee Inquiry into the future role and contribution of regional capitals to Australia)

The Capricorn Coast region currently has a population with a below average skills level. Year 12 completion rates are low 44.6% (ABS 2011). This is partly driven by an older workforce demographic, which has historically been characterised by lower Secondary School completion rates. It also reflects a high rate of “earning or learning” among young adults, suggesting that young people are being drawn into the workforce as unskilled labourers rather than gaining further education and training.

This situation is potentially a result of the demand in the labour market from the surrounding areas. Due to the region’s positioning within Central Queensland, there has historically been a high demand for mining, industrial and transport occupations where higher education qualifications may not be required. Therefore there may be fewer incentives for residents to undertake higher education studies, when employment opportunities have been readily available. Given the recent deterioration in both the tourism and resource sectors, this reliance on unskilled and unqualified employment, both locally and across the region, represents a considerable risk for the Capricorn Coast economy.

Attracting educated and skilled professional people to the Capricorn Coast will build our human capital, which will in turn set the base for building wealth in our communities. Strong human capital enables communities to be more productive, to innovate and to respond to changes in the economy. Access to quality education is a key component in building human capital. One of the most critical decisions that families with options have to consider when contemplating living in a regional city is access to quality education. Commonwealth government agency employees and their families relocating to the Capricorn Coast will have the choice of multiple high quality educational options from early childhood through tertiary with a substantial cost differential in fees between capital cities and our independent schools.

6. Health services Many people are moving to regional areas for a more relaxed and affordable lifestyle but still wanting access to medical and recreational facilities that are equivalent to the standard of a capital city. Retirees are looking for a tree or sea change based on the affordability of purchasing or renting a property close to services that will allow them a higher standard of living by saving money, rather than living in a capital city. These new residents while boosting the local economy can also put a strain on health services.

The Capricorn Coast and Rockhampton has a strong economic base in healthcare and social assistance and education and training. These industries have underpinned continual stability within the region. The Capricorn Coast Hospital and Health Service was opened in 2010 and provides 24 hours a day, seven days a week emergency department as well as inpatient and outpatient care and

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a range of other health services available. The townships of Yeppoon and Emu Park offer a variety of allied health services (including medical centres, physiotherapy, psychology and dental) and a network of community and primary health services.

Twenty minutes down the road the Rockhampton Base Hospital and health service catchment also services the Capricorn Coast and to the west past Emerald. Rockhampton also contains several private hospitals which act to complement the public Rockhampton Base Hospital.

Senior dependency ratios are well above Australia’s ratio, meaning the limited health, liveability and aged care infrastructure will be put under much more pressure than major metropolitan areas. The proportion of residents aged over 65 years is lower than the State average, though only marginally. General ageing of the Capricorn Coast population over the next 20-30 years is expected to underpin growing demand for health, medical and welfare based services (including retirement accommodation and aged care).

Health delivery falls substantially to the state government especially in relation to hospitals, while the policy settings that influence the availability and cost of health services are largely influenced by federal government decisions. Though not every regional city can have a world-class cancer facility or trauma centre it is still essential that they have access to key hospital and health services and after hours and telehealth technology should also be available.

Although there has already been significant investment and renewal of health infrastructure in the region, attracting and retaining doctors and specialists is still a major challenge for government and the community, especially cardiology and radiation oncology specialists. It is essential to increase the region’s population through continued job creation. The injection of jobs created from the re- location of a government entity could ensure that demand for these services increases to a level that it is economically sustainable to provide these services. These key hospital and health services should be located within an hour’s drive away at the most for a patient, not an eight hour drive away, being Brisbane as is currently the case.

7. Major projects & Investment Opportunities

a) $53M Yeppoon Foreshore and Town Centre Revitalisation A major development of $53 million dollars funded by the Federal and Queensland Governments and Livingstone Shire Council. The overall objective is to revitalise existing public spaces and create tourism, recreation and commercial land uses within the Yeppoon Foreshore and Town Centre precinct. This project includes a multi-storey car park (completed), water feature (The Keppel Kraken completed) beachside lagoon pool, foreshore boardwalks and CBD connectivity.

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Figure 3 Yeppoon Foreshore and Town Centre Revitalisation Concept Plan, Livingstone Shire, 2016

b) $30M Panorama Drive – Northern Strategic Link Road Panorama Drive is a $30 million dollar project funded by the and Livingstone Shire Council. It is a strategic road link forming a key transport corridor to directly connect the northern suburbs of Yeppoon with resource nodes, airports and current and future industrial parks.

c) $25M Gateway Business and Industry Park The Gateway Business and Industry Park is a masterplanned Business Park on 56 hectares, located 5 minutes from Yeppoon CBD with 80 lots in six stages over 10 years to be developed to a value of $30 million over with up to 150 businesses expected to be involved.

d) $6.2 M Local Disaster Coordination Centre and Community Resilience Engagement Hub The Local Disaster Coordination Centre is a $6.2 million dollar project funded by the Queensland Government and Livingstone Shire Council. It is a level 4 cyclone-proof 3 storey building in the centre of Yeppoon which will function as a strategic hub for managing and coordinating disaster situations. The building will also focus on building community resilience through education and engagement programs.

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Figure 4 Local Disaster Coordination Centre Concept Design, Livingstone Shire 2017

e) Stage 1 $3.6 M Capricorn Coast Homemaker Centre The Capricorn Coast Homemaker Centre is a $3.6 million dollar project funded by the Queensland Government and Livingstone Shire Council. This project is the Capricorn Coasts’ first ‘homemaker centre” fronting the Yeppoon to Rockhampton Road, the homemaker centre site is in a prime location on nine hectares of land in town. Capturing 10,000 vehicles a day and offering seven premium retail and industrial lots.

f) $16 - $18 M Scenic Highway Reconstruction and Upgrade Statue Bay A $16 - $18 million dollar project funded by the National Disaster Reconstruction Authority and Livingstone Shire Council. Statue Bay is part of the Capricorn Coast unique Tourist Drive and connects Yeppoon to Emu Park via the Scenic Highway. It is a vital tourist link between Yeppoon and Emu Park used by $6, 500 cars per day. The area has been prone to significant landslide and rock falls, most recently during Cyclone Marcia, with reconstruction and slope stabilisation works currently being undertaken.

g) $4.5 M Emu Park Foreshore Redevelopment The Emu Park Foreshore Redevelopment is a $4.5 million dollar project funded by the Queensland Government, Bendigo Bank and Livingstone Shire Council. This is the next stage of the Emu Park Foreshore Redevelopment building on the success of the Emu Park Anzac Commemorative Project. The proposal includes a loop walk from Kerr Park to Peach Park, then west to Bell Park and Emu Park’s Village Centre and other park and town centre improvements.

h) $2.5 M Barmaryee Multi-Sport Precinct - Yeppoon The Barmaryee multi-sport precinct is a $2.5 million dollar project funded by the Queensland Government and Livingstone Shire Council. It is Central Queensland’s newest, inclusive multi-sport precinct, which includes fourteen sealed and turfed netball courts, four full sized rugby league fields which also cater to a thriving touch football competition, clubhouse and kiosk with amenities. Planning is also underway on two full-sized AFL fields.

i) $4.5 M Hartley Street Multi-Sport – Emu Park The Hartley Street multi-sport facilitiy is a $4.5 million dollar project funded by Queensland Government, Bendigo Bank and Livingstone Shire Council which will include two irrigated rugby fields with full lighting, multi-purpose amenities building complete with training, change and first-aid rooms, kiosk and storage facilities as well as upgraded access road and car park.

These projects contribute to the ongoing economic viability and liveability of the region adding incentive for government employees to relocate from cities to the regions.

8. Housing affordability There are many reasons people want to move to regional areas, to escape the “rat race”, close proximity to work and a more relaxed lifestyle. One of the main reasons is liveability and affordability, in particular housing affordability.

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Asian and Australian cities continue to move up the cost of living scale over the last few years which have been offsetting traditionally more costly European locations. In particular, the cost of living in Australian cities has been rising very quickly up the rankings as economic growth has supported inflation and currency swings to make them more costly. In 2015 two of Australia’s cities (Sydney and Melbourne) were ranked in the top ten most expensive cities to live, whereas ten years ago there were no Australian cities among the 50 most expensive cities. (The Age 2015)

For the LSC LGA there were 631 existing dwelling sales in the 12 months ending 30 September 2016, representing a median sale price of $380,000 compared to the rest of Queensland average of $435,000. For the LSC LGA there were 18 new house sales in the 12 months ending 30 September 2016, representing a median sale price of $428,600, compared to the rest of Queensland average which was $458,000. For the LSC LGA the median rent for a 3 bedroom house in the 12 months ending September 2016 was $320 per week, compared to the rest of Queensland average of $350 per week. The Capricorn Coast region has a significant supply of affordable housing from both a purchasing and rental aspect.

The cost of living at the Capricorn Coast is comparatively more affordable than within South East Queensland. Housing costs within the Capricorn Coast region are lower than the State average. The Capricorn Coast region can supply a diversity of affordable housing options to new residents with inner CBD living in the Yeppoon town centre also an affordable option.

9. Tourism and events The Capricorn Coast has long been recognised as one of Queensland’s premier coastal destinations and the gateway to the stunning Southern Great Barrier Reef (SGBR). Last year almost two (2) million visitors enjoyed all the SGBR has to offer; from stunning beaches and bushland to iconic cultural and sporting events and everything in between. As the $53 million dollar Yeppoon Foreshore and Town Centre Revitalisation continue to take shape, the Capricorn Coast’s thriving tourism industry is reaping the benefits. Last year overnight visitors invested almost one ($1) billion dollars in the Southern Great Barrier Reef area; an increase of 6% or $52 million from 2014. The Southern Great Barrier Reef is among the top 15 domestic tourism destinations in Australia also attracting more than 137,000 international visitors last year, injecting $105 million into the local economy.

With endless beach frontage and an abundance of greenspace and parklands, Livingstone Shire hosts over 46 major community events every year including:

• Brisbane to Keppel Tropical Yacht Race • Lions Pine Fest • The Village Festival • Great Australia Day Beach Party • Yeppoon Tight Lines Fishing Classic • Cap Coast Running Festival • Emu Park Festival of the Wind • Yeppoon Triathlon • Obstacles Gone Mad

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• Lions Emu Park Oktoberfest • Weekly / Monthly Community Markets

These events attract tens of thousands of visitors to the region, who spend on average, $130 per person per day, which stimulates local business and boosts the regional economy.

10. Connected economy Technology has played a central role in enabling the globalisation of markets mainly by increasing the reach and speed of communication while also assisting to reduce costs, which has eased the flow of goods, capital, people and information across borders. This has made Australian businesses become more responsive to change, have faster speeds of transactions, provide cheaper and more convenient services as well as making better use of scarce resources in the process.

The Capricorn Coasts’ progressive approach to digital technology ensures residents enjoy metropolitan facilities in a stunning coastal setting, including the latest highspeed broadband and NBN connectivity. Work has started on constructing fixed line technology to more than 8,900 premises in Yeppoon, Lammermoor, Rosslyn, , Barlow’s Hill and Meikleville Hill, while the NBN network is already live in a number of areas including parts of Bangalee, Bungundarra and Glendale with further rollouts planned in the near future. In the past 12 months, Council has also successfully lobbied for funding to construct two new mobile towers in Mt Chalmers and Marlborough as part of the Federal Government’s $68 million Mobile Blackspot Plan.

Livingstone Shire Council provides free Wi-Fi connectivity at a number of popular public locations across the region including the Keppel Kraken Water Play Area, Yeppoon Town Hall, both Emu Park and Yeppoon Libraries and the Yeppoon Community Development Centre.

Council is progressing a strategic long-term vision to nurture local business and entrepreneurs through a range of programs and has fostered a close working relationship with Start Up Capricorn, Capricorn Enterprise, local Chambers of Commerce and national telecommunication providers. By embracing new technologies, Council will continue to expand and diversify the regional economy, as the Shire enhances its reputation as one of the most progressive and connected communities in Queensland. An increase in the digital readiness of the community and its businesses will allow local businesses to market their goods and services anywhere around the world, creating an incentive to employ more locals.

The relocation of a Commonwealth government entity to a digital ready connected community provides reassurance that service levels can be maintained remotely as information and communication channels have the technology to operate effectively and efficiently.

11. Importance of regional cities to the economy Council has not traditionally played a direct role in identifying, prioritising and facilitating economic development opportunities. The community has the view that State and Federal governments have abandoned any substantial support for growth of the regions. Councils are being pressed more and more by the communities they serve to find ways to grow local economies and deliver services the

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equal of capital cities. Council now has to take a proactive leadership role in helping to build a strong regional city. Planning and funding for economic development is being left to local governments to drive and deliver for the other tiers of government.

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.

The importance of regions compared to metropolitan areas is often overlooked. In 2013 the Regional Economic Development guide launched by the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) noted:

• “Regional economic development plays an important role in the overall performance of Australia’s economy. It directly affects income, employment, investment, working conditions and ultimately, the well-being of all Australians. Encouraging and supporting economic development in the regions can have spill-over effects for neighbouring communities and the nation as a whole (DRALGAS, 2013, p.11).

• Australia’s regions are vital to the national economy, cultural identity and environmental amenity. They produce the bulk of our exports and are home to roughly a third of our population. Importantly, the economies of our regions and cities are co-dependent and linked through economic, cultural and social ties. Therefore, the performance of a single region can have a significant impact on the performance of the nation as a whole, meaning that regions are crucial to Australia’s national prosperity (DRALGAS, 2013, p.1). “

Regional capitals according to Regional Capitals Australia (2015) contribute the following to the national economy:

• “$225 billion in economic output as measured by Gross Regional Product, representing 15 per cent of total economic output; • A labour force of more than 2 million people; • A collective industry and employment structure that generally reflect the national economy; and • 40 per cent of Australia’s exports are produced in regional Australia, with much of this passing through regional capitals.

The benefits generated by regional capitals are not just linked to economic performance indicators either. Regional capitals:

• take pressure off the metropolitan cities which are increasingly congested with infrastructure backlogs in unsustainable urban sprawl; • already have substantial physical infrastructure that can be upgraded or expanded to increase utilisation; • in northern Australia have faster freight access to south east Asian countries (with combined population of 500 million +) than they do to Melbourne, Sydney or Brisbane;

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• have developable land that can accommodate additional residential and business demand. Existing residential house prices are affordable and are generally 20-30 per cent lower than state capital land prices; • play an agglomerating role for regional Australia creating greater business efficiency and increased productivity; • are an efficient and sustainable model of growth; and • further diversify the national economy, reducing the reliance on just two or three cities.”

While Australian regional capitals have many strengths, they also have common weaknesses (The Regional Capitals Australia Issues and Positioning Paper) including:

• relatively high socio-economic disadvantage in the national context with lower incomes, lower educational attainment and higher unemployment rates; • lower worker productivity than the national average; • under representation in professional and finance services; • poor education completion rates with a bias to manual occupations and away from professional and managerial roles; and • comparatively low levels of investment when their population size is taken into account.”

As well as:

• lack of variety and volume of professional opportunities; • increased distance from capital cities (services); • lack of critical mass in both public and private sector ; and • lower levels of social infrastructure.

Community expectations, population growth and corresponding economic growth have seen the range and scope of local government functions expanded. However, our local government sources of revenue have remained relatively unchanged, increasing financial pressure on Council. The Capricorn Coast is seeking the support from the Commonwealth government to relocate an entity to our region. This will provide a clear indication of commitment to strategic investment by the government and promote the economic development of our region. The potential GDP contributions from our regions will not be maximised if this is not allowed to occur. The decentralisation of a government department to the Capricorn Coast will 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 as a whole.

12. Cost benefits of decentralisation to overall economy Capital cities have already reached critical mass and are self-sustaining. There has been a significant amount of investment in South East Queensland in the form of infill development, redevelopment and investment in infrastructure upgrades. Regardless, land and infrastructure constraints continue to impact on productivity, liveability and sustainability as infrastructure provision can simply not keep pace. It costs around $0.7 billion per kilometre of road infrastructure to alleviate capacity constraints in South East Queensland; while regional cities provide relatively unhindered infrastructure development opportunities without this additional cost (Future role and contribution

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of regional capitals to Australia Submission 19). New investment in infrastructure in regional cities is primarily to augment existing infrastructure capacity, extend trunk infrastructure to fringe or other new development areas, and improve lifestyle amenity to better compliment that experienced in capital cities.

While it is recognised that a city environment creates a range of benefits (increased productivity and wages, opportunities for collaboration and innovation and concentrated internal markets and the support of a wide range of amenities). The assumption that increases in size translate to growth and success are not necessarily true. There is a downside to living in a big city; high house prices, (particularly close to a CBD), congestion, pollution and increasing crime. As big cities grow more people are forced to live further away from their places of work and the benefits of inner city living become harder to attain (see Figure 5 below).

Figure 5. The upsides and downsides of being a big city (Source Regional Institute of Australia Deal or No Deal? Bringing Small Cities into the National Cities Agenda 2016)

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The relocation of a government agency to the Capricorn Coast will not only benefit the region, but the nation and overall economy. As stated by the Regional Institute of Australia (Deal or No Deal? Bringing Small Cities into the National Cities Agenda 2016):

“Importantly for Australia, as we confront the challenge of a 40 million population, for every 100,000 Australians who chose to live in growing small cities rather than our big five cities, the Regional Australian Institute (RAI) estimate that an additional $50 billion will be released into the economy over 30 years in reduced congestion costs and increased consumption. “

13. Reduction in commuting costs and time The relocation of a government agency to the Capricorn Coast would significantly reduce commuting costs and time spent travelling to work for government employees compared to their current location in capital cities. Public service employees relocated to the Capricorn Coast would benefit from:

• a newly constructed Yeppoon CBD multi-storey carpark providing 320 car parking spaces • an average commute time of 5 to 15 minutes into Yeppoon from the outer suburbs or the Emu Park township • more time for recreation and leisure • savings on fuel and public car parking fees

Data from the HILDA survey (AMP.NATSEM 2011) showed that the average hours Australians spent each week travelling to and from work have increased from 3.9 hours in 2002 to 4.4 hours in 2009. When comparing capital cities, Sydneysiders fare the worst in this area, spending on average almost six hours per week in a car, bus or train. Those living in Brisbane spend on average five hours a week travelling to and from work, Melburnians are a little lower at 4.5 hours (Table 2 below. Time spent travelling to/from paid work – capital city).

Figure 6. Time spent travelling to/from paid work – capital city (source data: AMP.NATSEM (2011) Race against time How Australians spend their time?)

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Personal time spent commuting to and from work is not the only issue in Capital cities the high cost of fuel, car parking and/or public transport costs impact heavily on an employee’s hip pocket. A 2013 study by the Australasian Railway Association found that “Melbourne commuters travelling five kilometres to the CBD in a light car spends on average $7880 per year and those driving a large SUV 25 kilometres into the CBD could be spending $20,107 annually to commute.” (Cary, The Age 2013). Other suburban residents were also found to incur the highest costs by driving to work, although the report said in many each suburbs commuting to the city by public transport is impractical. One worker living 26 kilometres north of Melbourne’s CBD and driving to work in St Kilda Road five days a week was spending $286 a month for a permanent car park at her work and spending around $100 a week on fuel. Commuting by public transport was impractical. (Cary, The Age 2013).

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Appendix A: Sources of information

AMP.NATSEM (2011) Race against time How Australians spend their time)

http://media.corporate- ir.net/media_files/IROL/21/219073/AMP_NATSEM_Income_&_Wealth_Report_Race_again st_time.pdf

Australia – Educating Globally Advice from the International Education Advisory Council February 2013.

https://internationaleducation.gov.au/International- network/Australia/InternationalStrategy/theCouncilsReport/Documents/Australia%20%E2%80%93% 20Educating%20Globally%20FINAL%20REPORT.pdf

Cary, A (12/12/13) The Age, Victoria “High cost of commute”

http://www.theage.com.au/victoria/high-cost-of-commute-20131211-2z6g0.html

Calligeros, Marissa, Melbourne: the world’s sixth most expensive city, The Age 04.03.5 http://www.theage.com.au/victoria/melbourne-the-worlds-sixth-most-expensive-city-20150303- 13uilq.html

Growing Central Queensland Review 2015

http://rdafcw.com.au/growing_central_queensland/growing-central-queensland-review/

Future role and contribution of regional capitals to Australia Submission 19 (Townsville)

http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Rural_and_Regional_Affairs_a nd_Transport/Regional_capitals/Submissions

Regional Capitals Australia Future role and contribution of regional capitals to Australia – Submission 48

http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&uact=8 &ved=0ahUKEwjvlKWP7NrKAhWGJpQKHSQUAtsQFgglMAE&url=http%3A%2F%2Fwww.aph.gov.au% 2FDocumentStore.ashx%3Fid%3D52073909-a4f7-4019-8382- 9fd7b299411a%26subId%3D350778&usg=AFQjCNGzDGWUnNNxGOLED8pynJ5qzupYGQ&bvm=bv.1 13034660,d.dGo

Regional Capitals Australia: Local Government Growing Regional Australia Volume 1 – Report March 2015 www.acelg.org.au/file/2530/download

Regional Universities Network (RUN) Submission to the Rural and Regional Affairs and Transport References Committee inquiry into the future role and contribution of regional capitals to Australia.

Regional Institute of Australia Deal or No Deal? Bringing Small Cities into the National Cities Agenda April 2016

http://www.regionalaustralia.org.au/home/wp-content/uploads/2016/04/Deal-or-No-Deal-Bringing- Small-Cities-into-the-National-Cities-Agenda_April-2016_FINAL.pdf

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