Inquiry Into the Indicators Of, and Impact Of, Regional Inequality in Australia Evocities Submission

Home , Dubbo

INQUIRY INTO THE INDICATORS OF, AND IMPACT OF, REGIONAL INEQUALITY IN AUSTRALIA

Parliament of Australia

Senate Economics References Committee

EVOCITIES SUBMISSION

Submitted by: Cr Kevin Mack – Chair of Evocities Steering Committee and

NSW Inland Forum, April 2018

Contents

1. Terms of Reference 2 2. Introduction 2 3. Evocities Background 2 4. Regional Hubs 3 The Evocities act as service hubs for surrounding communities, so their management structure is unique, and the growth of these regional hubs results in considerable flow- on benefits for the surrounding regions. 3 5. Collaboration and Funding of the Evocities Program (a,b) 4 Evocities’ pooled funds and collective governance makes it possible to reach a large audience, improve the capital city residents’ perception of regional city living, and attract highly productive new residents to regional NSW. 4 6. Regional Development and Australia’s Growing Population (a,c) 5 The Evocities recognise that investment in growing regional cities benefits all levels of government and results in improvements in both regional and capital city living. 5 7. Collaboration on Regional Development Strategies (b,c) 6 Evocities support the development of regional development policies that recognise existing strategies and priorities, champion strategic partnerships and collaboration, and acknowledge the importance of the regions to the greater economy. 6 8. Services and Facilities – Growing and Retaining Regional Population (e,f) 6 Evocities support the development of services and facilities that assist in actively driving sustainable population growth and retention in regional Australia. 6 9. The Workforce, Education and Employment (g,h) 7 The Evocities councils each place high premiums on attracting skilled professionals alongside developing the regions’ existing employee skills base to match the requirements of business and industry and drive new opportunities and cultural change. 7 10. Innovation, Industry, and Infrastructure (d,j,k) 8 Evocities recognise that innovation, following global trends, growing an entrepreneurial base, and improving connectivity through both technology and transport, is vital for the development of our regions. 8 11. Incentivising Business Relocation – Nashville Case Study (i,l) 9 Evocities support the development of strategic business relocation incentives that encourage companies and corporations to establish themselves in regional locations, over decentralising finite agencies or focussing on the addition of satellite offices. 9 12. Conclusion 10

1. Terms of Reference

On 14 February 2018 the following matter was referred to the Economics References Committee for inquiry and report by the last day of sitting in June 2019.

The indicators of, and impact of, regional inequality in Australia, with particular reference to government policies and programs in the following areas:

a. fiscal policies at federal, state and local government levels; b. improved co-ordination of federal, state and local government policies; c. regional development policies; d. infrastructure; e. education; f. building human capital; g. enhancing local workforce skills; h. employment arrangements; i. decentralisation policies; j. innovation; k. manufacturing; and l. any other related matters.

2. Introduction

The Evocities of Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga appreciate the opportunity to respond to this inquiry into the indicators of, and impact of, regional inequality in Australia. Together with an outline of the Evocities program, this report will detail how Evocities takes a collaborative approach to driving the economic growth of regional New South Wales (NSW) through increasing the regions’ population base, which fuels the economy, driving innovation, investment, cultural activity and entrepreneurial spirit. Actively contributing to the growth and development of NSW’s largest regional inland cities the campaign has proven to be beneficial for not just individuals and business within the Evocities, but also for the surrounding regions, the state and national economy.

3. Evocities Background

Evocities is a joint initiative of local councils of Albury, Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga. The core purpose of Evocities is to educate metropolitan residents about what regional NSW cities have to offer and to combat long held misconceptions about regional city living. We aim to encourage people to live, work and invest in an Evocity by spreading the word that in the Evocities individuals and families enjoy an improved lifestyle with more free time, family time and time outdoors; shorter commutes; a reduced cost of living; a community focus; thriving food, arts and cultural scenes; and a rich urban experience.

Evocities acts as a portal for people interested in making the move to get more information about the city/cities they may be interested in and view employment opportunities. It also provides a platform to connect with people who can guide them through the relocation process. By combining under the

Evocities brand, each of the seven cities enjoys greater marketing, educational and promotional opportunities than they otherwise would, trying to do so on their own.

Evocities’ marketing campaign and program of activities offers a proven formula to assist the NSW Government in managing Sydney’s population growth and the increased pressure this places on public infrastructure, while also driving sustainable growth and development in regional NSW.

Evocities is one of the most successful regional marketing campaigns undertaken in Australia, with over 3,415 families having relocated to date. It has attracted significant market penetration and delivered fantastic key outcomes for all the cities involved. Indirectly, the Evocities project has raised the credibility of NSW inland regional cities with a range of different stakeholders and provides the cities with a collaborative model to achieve greater return on marketing investment.

Since the campaign launch, Evocities staff have responded to over 7,500 relocation enquiries, most of which have been generated though the Evocities website, the central online portal for the campaign. The Evocities website, Evocities.com.au, is supported by an Evocities branded employment website, Evojobs.com.au. Since its launch, Evocities has seen more than 2.9 million visits to the Evocities suite of website.

4. Regional Hubs

The Evocities act as service hubs for surrounding communities, so their management structure is unique, and the growth of these regional hubs results in considerable flow-on benefits for the surrounding regions.

Because each of the Evocities are regional hubs, there are strong flow-on benefits to surrounding communities. ABS data indicates once individuals experience life in a regional city they are more likely to remain within the region rather than relocate to metropolitan areas. According to the 2016 Census data, of those residents who are moving out of the seven Evocities, more than 58% are choosing to remain within regional NSW (42.2%), regional Queensland (8.5%) or regional Victoria (7.5%).

The seven councils which currently participate in Evocities have a combined population of over 340,000, with some cities servicing catchment areas up to three times their size. Each of the Evocities are large regional councils, which encompass a total land area of almost 35,000 sq. km and are made up of not only the primary regional city but also many smaller surrounding towns and villages. In contrast, Greater Sydney covers 12,367.7 sq. km and is made up of 35 local councils. This comparison of the amount of land and settlements regional councils are responsible for gives an indication that the vastness of responsibilities and management operations are completely unique to that of metropolitan councils. For these reasons, regional cities require more support from federal and state government and any support they receive benefits not just the regional cities themselves, but also the surrounding regions.

5. Collaboration and Funding of the Evocities Program (a,b )

Evocities’ pooled funds and collective governance makes it possible to reach a large audience, improve the capital city residents’ perception of regional city living, and attract highly productive new residents to regional NSW.

The Evocities concept is unique in that it is not individual cities selling themselves, but for the first time, seven regional city councils working together. Each of the seven cities has and continues to dedicate money and resources to funding the campaign. Evocities has also received funding from corporate sponsors, the NSW Government and the Federal Government.

The combining of funds and resources means that marketing, PR and digital elements of the campaign, which focus on the benefits of living in an Evocity, have far greater impact than a campaign run by any individual city on its own. The cities have also dedicated considerable resources to welcome and support new residents to ensure they enjoy a smooth transition and a positive experience of their new city.

In 2017 the Evocities program benefitted from the NSW Government’s Regional Growth – Marketing and Promotion Fund (RGMPF) grant of $300,000. RGMPF is a $1 million program designed to attract new business, investment and skilled workers to regional NSW, supporting development of regional economies. The Evocities project being awarded almost a third of the program’s budget is evidence of the NSW Government’s endorsement of this collective initiative, however, the cost of marketing into metropolitan areas is very high and therefor ongoing funds are vital to achieve the desired level of impact, educating metropolitan residents about the advantages of regional city living.

The RGMPF funding was pooled with the Evocities councils’ contributions and was used on strategic marketing initiatives to reach a mass audience. The campaign, worth over $511,000 expended over the first and second quarter of 2017/18, saw a dramatic 52% increase in website visitation, compared to the same period the previous year. During this same period Evocities staff made 997 responses to enquiries from around Australia, up 345% from the same period the previous year. These results are testament to the reach that can be achieved with the support of federal and state government.

As well as joining together to promote regional living and draw people to live, work and invest in regional NSW, the Evocities project is the perfect example of how collaboration between levels of government can be successful and is necessary when working towards shared goals. The Evocities campaign reflects critical identification of regional priorities by local communities, councils and regions, and proactive investment in those priorities. The continuing collaboration between the seven cities has not only worked to enhance the impact of the marketing campaign, but also united the cities in presenting a single voice on matters of mutual interest and driving sustainable growth to each of their respective cities.

6. Regional Development and Australia’s Growing Population (a ,c )

The Evocities recognise that investment in growing regional cities benefits all levels of government and results in improvements in both regional and capital city living.

While the growing prominence of Australia’s capital cities internationally does create potential for their relevant states, it also raises many concerns for the cities which are already facing infrastructure pressures caused by a rapidly increasing population. The Evocities program over the past seven years has been offering a sound approach to assisting the NSW Government in managing Sydney’s population growth, by actively driving a population shift from capital cities to regional NSW, aiding the creation of a skilled labour force, increasing workforce diversity and providing greater choice for investors and employees.

The Regional Australia Institute released a report in October 2016 stating for every 100,000 Australians who choose to live in growing cities, rather than our big five cities of Sydney, Melbourne, Brisbane, Perth and Adelaide, an additional $50 billion will be released into the economy over 30 years in reduced congestion costs and increased consumption 1. Furthermore, it has been estimated that in Sydney congestion will cost $8 billion per annum by 2021 unless appropriate action is taken 2. In order to mitigate the effects of population growth in capital cities, the Government must consider initiatives like Evocities and invest in regional cities by implementing policies which incentivise families and business to move to or invest in these regional growth areas.

The OECD has recently found that countries with a greater network of cities or polycentric urban systems have higher per capita GDP and are more likely to have a buoyant economy which can resist major negative economic or environmental impacts 3. To create these cities and to ensure the regions benefit from the expansion of international trade, infrastructure, employment, tourism, innovation and research, the Government’s aim must be to actively grow the regions and support infrastructure requirements. Including, hard infrastructure and quality roads to help to overcome the concern of distance, as well as mobile towers and the NBN network to provide technological connectivity for business and individuals. If the regions can attract quality businesses, then they can attract the human capital necessary to lead successful organisations, which in the long term benefits not only the cities, but also the new and existing residents, creating a better quality of life and assisting in population retention.

1 J. Archer, Regional Australia Institute, Great Small Cities, http://www.regionalaustralia.org.au/home/2016/10/economic-growth-requires-connected-regional-cities-not- factory-floors, Accessed 14 August 2017 2 NSW Government, Premier’s - Building Infrastructure, https://www.nsw.gov.au/improving-nsw/premiers- priorities/building-infrastructure/#building-infrastructure, Accessed 14 August 2017 3 Regional Australia Institute, Deal or No Deal – Bringing Small Cities into the National Cities Agenda, April 2016 p.6

7. Collaboration on Regional Development Strategies (b,c)

Evocities support the development of regional development policies that recognise existing strategies and priorities, champion strategic partnerships and collaboration, and acknowledge the importance of the regions to the greater economy.

The current Regional Economic Development Strategies (REDS) being developed across NSW considers our councils’ strategies and clearly highlight the strengths of each region and could be used to identify the strategic priority areas for future investment by the federal and state government. Still, collaboration and recognition of existing strategies and priorities of our regions, when creating relevant policies at all levels of government, would be beneficial to all.

Strategic partnerships and collaboration underpin the success of regional strategies. The Evocities member councils understand the value of establishing a ‘whole of economy’ plan that is not just about what local government can do but what can be achieved through working in unison with a wide range of stakeholders and all levels of government to drive economic prosperity for our regions.

Evocities support the establishment of a unified direction to help regions realise projects and progress priorities that support economic prosperity and growth. Evocities councils attempt to work in synergy with other key documents for regional development, rather than replicate or work against their objectives, and are keen to share their strategies and implementation plans with federal and state government agencies to ensure future policies build on the work already completed by our councils.

8. Services an d Facilities – Growing and Retaining Regional Population (e,f)

Evocities support the development of services and facilities that assist in actively driving sustainable population growth and retention in regional Australia.

Evocities recognises that people are more likely to make the move if they understand that the services offered within regional capitals are similar to those offered in a capital city, therefore services and facilities are vital to a growing economy. As indicated by research conducted by Evocities 4, relocators look for a critical mass of services and community vibrancy linked to population and progress. In turn, investing firms will look for the presence of quality, multi-skilled people and education systems as part of their investment decisions.

In order to do this each city must be able to successfully provide the necessary employment, education, health and lifestyle facilities to cater to the demands of the population and provide reassurance to residents that the services offered are equal to, if not superior to, those found in the capital cities.

The Evocities understand that resident attraction is important, but equally important is the retention of the new and existing residents. The Evocities are aware that vibrant, cohesive and engaged communities are essential to retain population and know that by creating a positive employment

4 Charles Sturt University, Awareness & Perceptions of Regional NSW and Attitudes Towards Relocation, March 2012

environment and gaining an influx of new workers a cultural change will continue to emerge. Cultural change and diversity encourages the development of new value-adding sectors to the regions, which create facilities to improve the lifestyle of local residents, ensuring population retention, as well as increasing attractions to build the tourism market.

As a whole the Evocities have a combined population of over 340,000, with some cities servicing catchment areas up to three times their size, therefore service industries including superior health and education facilities are not only required but could also be supported and provide opportunity for major jobs growth.

Regional cities, including the Evocities show a higher youth presence than the capital cities along with an ageing population 5 and therefore a focus on building the Health Care and Education and Training sectors would not only create opportunities for regional growth, but also help to service current residents, enhance the workforce capabilities, assist in population retention and relieve ongoing pressure on the capital cities’ hospitals and universities.

9. The Workforce, Education and Employment (g, h)

The Evocities councils each place high premiums on attracting skilled professionals alongside developing the regions’ existing employee skills base to match the requirements of business and industry and drive new opportunities and cultural change.

The Evocities program is contributing to the sustained lifting of productivity and enhancement of the skills mix and availability in inland NSW by attracting new residents, skilled workers and professionals into regional NSW, delivering enduring economic and community benefits, including sustained increases to economic output and increases in social capital, skills and cultural bases.

Over the past seven years the Evojobs website has advertised over 32,200 local jobs, attracting over 2.3 million visits to the site. The Evojobs website is also utilised by local employers from the seven cities to attract highly qualified candidates to their organisations and is equally useful in supporting population retention, with locals seeking employment or career changes accessing the site.

Investing in the region’s educational assets will ensure students and the regions workforce contribute to the broad economic and knowledge base of the region; enhancing the Evocities’ global competitiveness.

The need to ensure a broad range of school activities are supported through information technologies (IT) or technological infrastructure is essential in creating a learning environment that will help students enter and adapt to the workforce. A learning environment that is founded on problem solving and creative thinking will result in an innovative workforce and increase the knowledge base and competitiveness of the region.

5 Regional Australia Institute, Deal or No Deal – Bringing Small Cities into the National Cities Agenda, April 2016 pp.12-13

10. Innovation, Industr y, and Infrastructure (d,j,k)

Evocities recognise that innovation, following global trends, growing an entrepreneurial base, and improving connectivity through both technology and transport, is vital for the development of our regions.

The Evocities recognise that to facilitate long term growth our regions must become ‘globally fluent’ by remaining in front of global trends and encouraging innovation, advanced manufacturing, direct investment and ensuring dynamic freight flow. Innovation in regional industries will bring high level jobs and higher salaries. Attracting scientists, researchers, or software engineer, for example, triggers a multiplier effect, increasing employment and expanding salaries in the local economy.

There is a need for the ongoing development and renewal of infrastructure to support new investment, reduce production costs, improve quality of life and enable the long term sustainability of the region. The uptake of advanced manufacturing will support existing manufacturers to enter new markets, devise new products and improve productivity. It will also help establish innovative local industries by creating new business models, products and processes.

Connection to high speed broadband throughout the region will increase business productivity, innovation and product development. This will lead to cost savings throughout the supply chain network, greater efficiencies and profitability for the region’s industry base. Ensuring equitable internet access for regional residents will assist in connecting communities, knowledge sharing and allow access to global information and cultural resources.

Creating a strong and supported tech start-up ecosystem is essential for our regional cities. Fostering an ecosystem where people see opportunities to start a business, where people believe in the skills and knowledge they hold, and where entrepreneurial successes are highly visible in the media will assist in growing an entrepreneurial base in the region.

Robust transportation and logistics network, via road, rail and air, is a cornerstone of our regions’ vitality. Outside of its commercial benefits, the network gives city residents and visitors the means to reach and enjoy all aspects of life the region has to offer. Our airports are deeply linked into the regions’ economic activities, with these linkages increasingly driven by growth in leisure tourism and business travel and the regional expansion of strategic resources, agricultural activities and global industries.

11. Incentivising Business Relocation – Nashville Case Study (i,l)

Evocities support the development of strategic business relocation incentives that encourage companies and corporations to establish themselves in regional locations, over decentralising finite agencies or focussing on the addition of satellite offices.

Reducing obstacles to industries and businesses looking to set up in regions where they can make better use of regional assets including land, natural resources and transport corridors is a priority for the Evocities councils.

Evocities would like to draw your attention to a program run by the city of Nashville in Tennessee called Partnership 2020. The Partnership 2020 program (formerly Partnership 2000 and Partnership 2010) is a public-private partnership whose purpose is to recruit new businesses to the greater Nashville area. The partnership has been the driving force for the regional economy since 1990, with over 930 companies relocating operations to Middle Tennessee including the likes of Nissan, Amazon and Google. The relocation of major organisations and business expansion has resulted in an impressive 485,000 new jobs in the Nashville region6.

The partnership is driven by the Nashville Area Chamber of Commerce and the Metro Government of Nashville and Davidson County with the support of business. The partnership seeks investment from companies and corporations through an annual contribution. The chamber’s primary focus is economic development and their effort in this field has earned it the title of being the top economic development group in the USA. Another key player in the partnership is the Government of Tennessee.

Nashville’s Prosperity Strategy has three strategic drivers:

1) Economic Prosperity – creating a diverse range of quality employment opportunities, with a focus on job creation in five target industry sectors while elevating incomes in the region. Differentiating Nashville as a leader in the nation with a strategic focus on attracting international investment, business recruitment, retention and expansion, and supporting small business and entrepreneurial growth. 2) Talent Development – preparing the region’s K-16 (schools) pipeline as the next generation of talent with the skills needed to advance in a variety of existing and emerging fields. Continuing a focus on the attraction and retention of highly skilled and educated workers to generate the competitive talent necessary for businesses starting, growing or moving to the Nashville region. 3) Place and Liveability – proactively addressing the need to plan for a growing population, including regional transit, affordability and global connectivity while maintaining the Nashville region’s cost of living advantages and preserving its unique assets. Focusing on the region’s overall quality of place.

6Partnership 2020. Nashville Chamber. https://www.nashvillechamber.com/membership/partnership-2020 (accessed 31 January, 2018).

The Nashville region's economic development partners offer exceptional incentives to relocating and expanding. The Incentives come from three sources – State of Tennessee, Tennessee Valley Authority, and the local community. The incentive evaluation process is based on a variety of economic factors including capital investment, new jobs created, wages, etc. A qualified business that creates at least 25 net new jobs and invests at least $500,000 in a 36 month period may qualify for an incentives package. Based on the project, the incentives could include job tax credits, infrastructure/training assistance, energy credits, low cost loans and grants or others 7.

Partnership 2020 is the perfect example of how a targeted strategy paired with collaboration between the public and private sector can have a major long-term, sustainable economic impact on a growing region. Evocities recommendation in the first instance would be to review any government department or programs which are not achieving a significant return on investment or are underperforming, and utilise those funds to provide direct financial incentives to private companies looking at expanding or establishing in regional areas. Level of funding should be based on the achievement of capital investment and job performance outcomes.

Evocities believes it is important to allow ourselves to be educated by places like Nashville who set out almost 30 years ago to grow their region and recruit new businesses and have done so very successfully. In the 15 years between 2000 and 2015 Nashville’s Metropolitan Statistical Area (MSA) grew by over 500,000 8. The lesson here is sound economic strategies, paired with business relocation incentives and partnerships is a formula which has the potential to have an impressive economic impact on regional NSW.

12. Conclusion

Evocities’ focus is population building because it is understood that progress is linked to population numbers and the human capital which accompanies it. Whilst the campaign’s focus is on the seven regional capitals, the outputs flow through to the surrounding regions. As such, it is important that the Government continues to collaborate with regional capitals, as well as state and local government to create initiatives which complement campaigns like Evocities, which actively contribute to growth and development of regional areas and reduce pressures on capital city infrastructure.

By creating incentives for capital city based companies to relocate to regional areas, expanding public services, enhancing health, education, transport and communication facilities, the regional capitals become more marketable and campaigns like Evocities will have even greater success.

In the long term, if focus is placed on the right initiatives, regional areas will not only continue to forge more resilient economies but become major players in a strong state and national economy.

7Taxes and Incentives. Nashville Chamber. https://www.nashvillechamber.com/economic-development/relocate- or-expand/taxes-incentives (accessed 31 January, 2018). 8 Population. Nashville Chamber. https://www.nashvillechamber.com/economic-development/relocate-or- expand/taxes-incentives (accessed 2 February, 2018).