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Lockhart Shire Council * * * ~~ SH/,q~ ~~~ ~~i Lockhart Shire Council * * * 8 March 2017 Chairperson Senate Finance and Public Administration Committees PO Box 6100 CANBERRA ACT 2600 Dear Sir/Madam RE: INQUIRY INTO THE OPERATION, EFFECTIVENESS, AND CONSEQUENCES OF THE PUBLIC GOVERNANCE, PERFORMANCE AND ACCOUNTABILITY (LOCATION OF CORPORATE COMMONWEALTH ENTITIES) ORDER 2016 Thank you for the opportunity to make a submission with respect to the above Inquiry. It is noted that the Inquiry's Terms of Reference include "the policy of relocating corporate Commonwealth entities with agricultural policy or regulatory responsibilities." Lockhart Shire Council supports the relocation of corporate Commonwealth entities to regional areas particularly with respect to relocations that represent a good strategic fit and complement a particular region's characteristics and needs. About Lockhart Shire The Lockhart Shire covers an area of 2,942 sq km and is located in the Southern Riverina area of New South Wales. With a population of 3,080 the Shire includes the major townships of Lockhart and The Rock and the smaller villages of Milbrulong, Osborne, Urangeline, Yerong Creek and Pleasant Hills. The Rock is situated on the Olympic Highway and on the Sydney to Melbourne Main Southern Railway Line. The Shire, which offers the full range of lifestyle options, has grown in popularity, both as a place to live and as a place of business. With close proximity to the major regional centres of Wagga Wagga and Albury, the Shire still relies on a strong primary industry supported by a number of secondary and service industries. Tourism, especially heritage and eco-tourism, have seen good positive growth over recent years. Lockhart Shire is the centre of farming excellence. Fertile soils led to agriculture flourishing, firstly as a grazing district and, with the advent of cropping, became a prosperous mixed farming area. Today, its proud history is reflected in the agricultural initiatives and distinction for which the Shire has become renowned. The Shire's agriculture continues to produce quality grain, prime lamb and beef, with the wool industry still an integral part of its agricultural diversity. ...2/ All communications to be addressed to : THE GENERAL MANAGER 65 Green Street, PO Box 21, Lockhart NSW 2656 Telephone: (02) 6920 5305 Facsimile: (02) 6920 5247 www.lockhart.nsw.gov.au - 2 - Community facilities and sporting activities are an important part of the community, with numerous facilities, parks and reserves catering for the community. These places create a strong sense of community connection and strengthen the relationships held within the community. Advantages of regional centres and sub regional towns Regional areas offer lifestyle, economic and environmental benefits through shorter travelling times from home to work and more affordable land for housing as well as for business, industry and government services. Lockhart Shire Council for example has serviced land available in its Business Park for $12 per square metre. A Feasibility Study prepared by Crowe Horwath (Aust) Pty Ltd in 2016 for Lockhart Shire Council identified the following attractions of the Local Government Area: • Great lifestyle: easy to get around towns, large block sizes are available as well as a relaxed pace of life; • Central location with access to major centres (40 minutes to Wagga Wagga and 60 minutes to Albury); • Affordable housing and cheaper to live; • Safe and friendly communities; • Extensive sports, recreation and leisure facilities; • Reasonable access to services including health services, day care services, education providers; and • Access to shops that provide for general needs. In New South Wales whilst larger regional centres such as Albury, Wagga Wagga, Griffith, Dubbo, Tamworth, Armidale etc. are more likely to be considered in the context of relocating Commonwealth corporate entities, smaller sub-regional towns should not be overlooked when considering the decentralisation of government agencies. Whereas larger regional centres may be a more realistic consideration for relocating whole corporate Commonwealth entities, other smaller towns could and should be considered in respect of relocating individual business units, shared service centres, outreach posts and other government services that can be provided remotely. For instance the NSW Business Chamber in its response to a Decentralisation Task Force in February 2013 stated that, "there is further merit in Government exploring options to invest in the establishment of multi-departmental teleworking hubs in outer metropolitan or regional centres with hot desk capabilities that contain essential main hub. This would enable varied government employees within any given region to be able to operate out of these offices on either a permanent basis, or a few days out of their working week, thereby increasing workplace flexibility, boosting productivity and generating a shift towards smarter working arrangements that accommodate both the needs of employees yet allows the employers to reap the benefits of greater productivity by staff." ... 3/ - 3 - Technology makes these considerations more realistic and with NBN now available in smaller centres such as Lockhart and The Rock even the establishment or relocation of a call centre becomes realistic. Benefits of relocating corporate Commonwealth entities to regional areas Regional and rural local governments advocate for the relocation of Commonwealth entities and government agencies because of the stimulus it provides to regional economies and the employment that it generates in regional areas. Lockhart Shire Council supports this view. Decentralisation can act as an effective catalyst for regional growth. With the increase in population, jobs growth inevitably follows. Population increases the demand for more schools, hospitals, shopping centres and further expansion within the community. This also helps regional communities retain their young people who currently leave for the big cities. However the advantages are not one sided but should be viewed in the broader context and the benefits that decentralisation provides to large capital cities and metropolitan areas should not be forgotten. Relocating jobs to regional areas helps deal with the pressures of metropolitan population growth. The pressure to increase residential densities and reduce car use would be lower in small cities compared to capital cities and metropolitan fringe areas because accessibility is greater. At an operational level, benefits that can be achieved for the Commonwealth Government through decentralisation of Government entities include cost savings through cheaper real estate, labour, rent or capital costs as well as through economies of scale and co-location. Much has changed since the early decentralisation policies of the 1970's and the Whitlam Government's approach of establishing specific growth centres in regional areas such as Albury-Wodonga and Bathurst-Orange. However with the current emphasis on housing affordability, reducing carbon emissions, and the cost of providing infrastructure to the fringe of metropolitan areas, by decentralising Government agencies and taking a lead in relocating jobs to regional areas, the Commonwealth would not only be stimulating the economies of regional Australia but would also be addressing the challenges of population growth in our capital cities. The opportunity to make a submission to the Senate Inquiry is appreciated. If further information is required on any of the matters addressed in this submission please do not hesitate to contact the writer. Yours faithfully Rodger Schirmer MAYOR .
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