Armidale Regional Council - Submission House of Representatives Inquiry into Regional Development & Decentralisation

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Parliament of Australia HOUSE of REPRESENTATIVES Inquiry into Regional Development and Decentralisation September 2017

Mr Peter Dennis CEO Armidale Regional Council

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Executive Summary In response to an invitation from the Parliament of Australia, House of Representatives, Regional Development and Decentralisation Committee for Armidale Regional Council to make a submission to the ‘Inquiry into Regional Development and Decentralisation’, Armidale Regional Council (ARC) is delighted to present this submission.

The focus in our submission is support for item (b.) in the Terms of Reference, ‘decentralisation of Commonwealth entities or functions, as a mechanism to increase growth and prosperity in regional areas’, also what Armidale has to offer and the notion of a higher quality of life living in the regions.

ARC, alone, and as a member of Evocities supports and advocates for any endeavours, policies or incentives which encourage growth, improves infrastructure and provides a better quality of life in the regions. We are supportive of any Government agenda with this intent and direction. Armidale Regional Council strongly supports the relocation of government bodies to regional Australia and we firmly believe that there are many benefits that can be derived from the co-location of and increased cooperation between government bodies and regional organisations and communities, particularly where the purpose of those government bodies is aligned with regional industries and sectors.

Armidale is ideally positioned for growth and participation in any relocation programs. Decentralisation by definition is the strategic relocation of business activity and function from congested metropolitan business districts to regional centres which offer a capacity for future growth, lifestyle for employees and significant impact on regional economies.

Boasting a strong and diverse economy and with a population of around 30,300 and 13,236 jobs (in 2016), the Armidale Region has experienced some challenges over many years in maintaining sustained growth. While prospects for continued economic development are relatively strong, based on the Region’s traditional sectors of employment as well as new and developing ‘knowledge-based’ industries, the Armidale Region continues to be challenged to maintain a population growth above 1.0% per annum.

Notwithstanding this, the Armidale Region has a lot to offer everyone, including a renowned education base that inspires innovation, a collaborative culture, a vibrant digital economy fully- fibred to the National Broadband Network, a full suite of community services, a myriad of recreational parks and sporting facilities and all this amidst the beauty which is New England High Country. Our submission touches on all of these aspects and is a sample of what is on offer across our region and rural setting; a relaxed, cosmopolitan, sophisticated, intellectual, progressive and multinational regional centre.

Armidale Regional Council is a willing party in the current relocation of the Australian Pesticides and Veterinary Medicines Authority (APVMA) this submission speaks to the economic implications of the relocation of the Australian Pesticides and Veterinary Medicines Authority (APVMA) and potentially other Government Offices, the plan for relocation, environmental aspects and the positive long term outcomes for the delivery of services by the APVMA.

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Armidale Regional Council supports the notion of the creation of centres of excellence within Regional Australia and the creation of a centre of excellence for Agriculture within the Armidale Region, in our view, will provide benefits not only for the Armidale region, but also for the broader Australian economy. More specifically, the opportunity for genuine partnerships to be forged between Australian Pesticides and Veterinary Medicines Authority (APVMA) and locally based organisations including the University of New England, should not be understated – providing opportunities for stronger collaboration with the Agricultural sector and the potential to create a centre for excellence in Agriculture within our Region.

UNE SMART Farm Innovation Centre – Control Room The University of New England (UNE) has a long record of effective, high impact and world-class education in science as well as environmental, agronomic and animal sciences.

UNE has transformed 'Kirby-Newholme', a 2,900 ha commercial farm located 10km north west of the campus, into a SMART Farm (Sustainable Manageable Accessible Rural Technologies Farm). The SMART Farm showcases the latest technologies aimed at improving productivity, environmental sustainability, safety, workflow and social/business support networks on Australian farms.

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Decentralisation of Commonwealth Entities – Armidale the modern test case: Armidale Regional Council strongly advocates for the relocation of government bodies to regional locations throughout Australia. ARC is very supportive of the creation of centres of excellence within regional Australia and we firmly believe that the relocation of Government Offices such as Australian Pesticides and Veterinary Medicines Authority (APVMA) will enable greater levels of co-operation and collaboration with locally based agricultural and science based organisations.

The relocation of APVMA is a perfect example of where the establishment of government offices within our region will provide opportunities for genuine partnerships to be forged with locally based organisations including the University of New England, to create a centre for excellence in Agriculture within our Region. These types of initiatives will drive further growth in agricultural productivity, farm production and help to boost rural exports for Australia.

Our regional economy is underpinned by education, agriculture and technology, and this will enhance the delivery of services from the APVMA over time and will attract ancillary and like businesses to the region notwithstanding the partnerships which will evolve with UNE.

For Government Offices such as APVMA, there are many benefits to relocating to the Armidale Region including: a renowned education base that inspires innovation, a collaborative culture, a vibrant digital economy fully-fibred to the National Broadband Network, a full suite of community services, a myriad of recreational parks and sporting facilities and access to the New England High Country.

Home to the University of New England (UNE), as well as a number of highly regarded private, independent and public schools, Armidale is a regional centre of education providing it with an advantage and point of difference to other regional centres in and beyond.

Council believes that along with the notional technical data indicating significant positive economic outcomes for regional centres, that there is also an unmeasured intrinsic value by those who move to and reside within the Armidale Region. - such as lower house prices and more affordable living; a broad range of accommodation options; local, secure water supply; an hour by air to Sydney and Brisbane; two hours to the coast on arguably the best tourist drive in Australia; very high quality education and sporting facilities; a sophisticated arts culture; less than five minutes travel to work; and a lifestyle many yearn for.

Armidale Regional Council, the University of New England (UNE) and the wider community are excited to host and embrace the relocation of the APVMA. ARC is also well aware of the positive impact that this initiative will bring to the Armidale Region for growth of jobs and services. ARC is participating in the APVMA Relocation Advisory Committee (ARAC) and while there are a range of challenges for this group, there are also many opportunities and benefits for all parties. This relocation initiative is currently tracking well against project timelines.

Armidale Regional Council is committed to working with all levels of Government to ensure that we achieve an optimal result for any Government Office relocation program including the current APVMA relocation initiative. ARC is confident that we have the capacity, infrastructure, networks, community services, opportunities and lifestyle to present a compelling case for the relocation of government bodies to the region.

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Background Research There are a number of case studies and research papers which point to positive economic outcomes for regional areas after the relocation of Government departments. Two are referenced below as examples along with data from an economic impact model.

The Road to Regional Success – Investigating the merits of relocation through the case study of moving VicRoads to Ballarat http://www.committeeforgeelong.com.au/media/37518/parliamentary_report_final_web_copy.pdf

Highlights of the findings in this report are:  Relocation is a significant form of economic stimulus for the host city;  The benefits of indirect job creation and flow-on economic effects are applicable to all relocation projects;  Relocation supports Federal and State policies that seek to mitigate the effects of overurbanisation in Australia’s capital cities.

“Furthermore, the power of multiplier effect and the significance of spending arguably produce a much greater effect in a regional area than it does in a metropolitan location. The positive economic shock provided in the regional city outweighs the negative shock of taking this spending away from Melbourne”

This report has found that as a form of regional development, the policy of relocation provides a significant economic stimulus for the host city. Yet the benefits created for the host city must be balanced against the net costs of the project. At the outset the net costs will outweigh the net gains.

This is due to expenses such as staff relocation and redundancy packages and construction costs. To measure the success of relocation a long-term view is required. The net gains will likely outweigh the net costs once the strategy is complete.

Although the report struggles with quantifiable measurement of direct and indirect employment created by the relocation the prediction is substantial. Armidale Regional Council uses an economic forecast tool provided by .id – The Population Experts, and using this tool in relation to the expected relocation of the APVMA to Armidale shows a substantive and positive impact notwithstanding these figures do not reflect the impact of the removal of these jobs from the Canberra economy.

Impact on Output The direct addition of 172 jobs in the Professional, Scientific and Technical Services sector of the Armidale Regional Council economy is estimated to lead to a corresponding direct addition of $34.42m in Output from the local Professional, Scientific and Technical Services sector. From this direct expansion in the economy it is anticipated that there would be a flow on effects into other related intermediate industries, creating a further increase of $14.59m in Output. This represents a Type 1 employment multiplier of 1.42.

There would be an additional contribution to the Armidale Regional Council economy through consumption effects as correspondingly more wages and salaries are spent in the local economy. It is estimated that this would result in a further increase in Output of $42.76m.

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The combination of all direct, industrial and consumption effects would result in total estimated rise in Output of $91.77m in the Armidale Regional Council economy, representing a Type 2 Output multiplier of 2.67.

These impacts would not be limited to the local economy. Industrial and consumption effects would flow outside the region to the wider Australian economy to the tune of $48.85m in Output.

The combined effect of economic multipliers in the Armidale Regional Council and the wider Australian economy is estimated to be $140.62m added to Australia’s Output.

Impact on Local Employment (jobs) The direct addition of 172 jobs in the Professional, Scientific and Technical Services sector of the Armidale Regional Council economy would lead to a further increase in indirect demand for intermediate goods and services across related industry sectors. These indirect industrial impacts (Type 1) are estimated to result in an additional 72 jobs, representing Type 1 Employment multiplier of 1.42.

The addition of jobs in the local economy would lead to a corresponding increase in wages and salaries, a proportion of which would be spent on local goods and services, creating a further 263 jobs through consumption impacts.

The combination of all direct, industrial and consumption effects would result in a total estimated increase of 507 jobs located in the Armidale Regional Council. This represents a Type 2 employment multiplier of 2.95.

Impact on Australian Economy - Employment (jobs) Employment impacts would not be limited to the local economy. Industrial and consumption effects would flow outside the region to the wider Australian economy creating a further 237 jobs.

The combined effect of economic multipliers in the Armidale Regional Council and the wider Australian economy is estimated to be an addition of 744 jobs.

The creation of jobs has a flow-on effect creating a need for new improved infrastructure across the region creating more jobs

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The other example is a little older but the Lyons Review comes up with similar positive outcomes for regional centres

The Lyons Review An independent review of public sector relocation in the United Kingdom http://webarchive.nationalarchives.gov.uk/20071104145029/http://www.hm- treasury.gov.uk/consultations_and_legislation/lyons/consult_lyons_index.cfm

“Dispersal of government jobs is likely to have positive knock on effects for regional economies, with direct spending by departments and their employees creating jobs in addition to those relocated. Experian found that this additional impact ranged from neutral, to one extra new job created for every two moved.”

From the review of the implementation of the Lyons Review:

“The study has found that the implementation of the Lyons Review had a multiplier effect on private sector employment at the local level. The arrival of 10 civil service jobs in an area triggered the creation of 5.5 local jobs in the private sector.”

The economic basis for the case studies and the economic predictor tool all point to strengthening a regional economy thus in turn giving strength to the provision of services and ultimately the quality of life provided to community members.

Armidale Regional Council is keen to harness the advantages provided by relocation and to embody this growth into its economic development work.

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The Case for Armidale Armidale presents opportunities for government and corporate organisations across many spectrums - from National Broadband connectivity through to a full range of community, health and education services, and the intrinsic value we place on our almost perfect lifestyle, Armidale has the infrastructure capacity to service a population well in excess of 50,000 people.

Under the New England North West Regional Plan, Armidale is recognised as a ‘Regional City’, with an important opportunity to develop its role as a population, transport, services and employment hub. Regional city designations highlight the important role that centres like Armidale will play in the wider region’s (and State’s) future, providing a signal for the resources, public facilities and infrastructure required to ensure the region prospers.

The major industries in the Armidale Region include education and training, agriculture and horticulture, health care, professional services, retail, and tourism. The area’s agricultural heritage remains a key feature of the region, and in Guyra, sheep, lamb, fine wool, cattle and vegetable production (with increasing horticultural activity offering export potential) continue to be mainstays of the region’s economy.

Costa’s – Guyra Glasshouse site No. 2 Blush* is one of Australia’s leading producers and marketers of premium glasshouse grown tomatoes Costa’s currently have 30 hectares under glass in the Armidale region – Controlled Environment Horticulture

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Armidale provides an ideal location for the relocation of Government offices and headquarters. More specifically the key benefits for the establishment of Government offices and headquarters in Armidale are:  A renowned regional education hub, home to the University of New England and many leading primary and secondary schools as well a significant TAFE institute – providing the platform for a progressive and innovative culture and a vast pool of professional talent, skills and capability to draw upon.  A vibrant digital economy fully connected via fibre to the National Broadband Network enabling APVMA to be digitally connected to Australia and the globe.  A leading regional Airport that is rapidly expanding with plans to work with a number of Airlines to provide more air transport services more often and to more places.  The planned establishment of a major industrial development within the Armidale Airport precinct that will attract new industries and create new jobs.  Armidale is home to many major industries including Education Services, Technology Services, Agriculture, Superfine Wool Production, Beef and Lamb production, Vineyards and Greenhouse Horticulture – industries that will underpin sustained growth in the future.  Armidale is surrounded by one of Australia’s most beautiful natural environments consisting of four significant national parks each with extraordinary natural attractions and all within one hour’s drive of the city.  Boasting several leading arts and cultural attractions including NERAM - the largest art gallery and collection of art works in Regional NSW.  A wide range of sporting facilities and events from rugby to mountain biking to golf among a broad range of other competitive sporting events to offer.  A range of community and infrastructure assets including public and private hospitals, aged care facilities, a new “state of the art” library, swimming pools and a full range of leading educational facilities and services.

Armidale Regional Council Area

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Climate Armidale is set about 1000 metres above sea level and experiences a cooler climate with much less humidity than coastal and other inland centres of New South Wales. Armidale has four distinct seasons with mild summers, spectacular and colourful autumns, crisp winters and sensational spring weather.

The average maximum temperature in Armidale ranges from 11.5 degrees in winter through to 24.1 degrees in the summer. The average minimum monthly temperature ranges from -1.8 degrees to 13.1 degrees. Armidale receives a mean average rainfall of almost 800mm each year.

Education: Armidale differs from most inland regional centres because it has a long established university, transforming it from a rural town to a sophisticated and cosmopolitan city. Through the University, TAFE, private, independent and public schools the city has become a significant education centre, creating a wider range of jobs and business opportunities than usually found in the country.

More than 75 different nationalities study on campus at the University of New England establishing a significant multicultural community unparalleled in regional Australia.

Our educational strength and breadth can be seen in the following list of educational institutions and services. .University of New England (UNE) .TAFE New England .Three independent day and boarding schools .Eight public primary schools .Two public high schools .Catholic primary and high school .Rudolf Steiner School .Montessori School .Met School .Minimbah Aboriginal School .University of the Third Age .New England Conservatorium of Music (NECOM) .Armidale Film & Television School .Preschools .Various Community Education Programs & Centres

Arts & Culture: Armidale has the best regional art gallery in NSW outside the main metropolitan cities with major collections valued at over $40 million. The city has a twin cinema which shows mainstream and art house movies. There is an Aboriginal Cultural Centre and Art Gallery. There is the New England Conservatorium of Music, a Symphony Orchestra, a Youth Orchestra, a biennial Bach Festival and several choral groups. The Armidale Playhouse Theatre, Armidale Musical Society, Stage One Theatre for Children and the University of New England Department of Theatre Studies perform regularly during the year.

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National Parks: One of Armidale’s best kept secrets is that there are four national parks, each with extraordinary natural attractions, and all within an hour’s drive from the city centre. There’s a monumental tumble of giant granite boulders to climb in the Cathedral Rock National Park. And, along the aptly named , Ebor Falls in the National Park is one of several majestic waterfalls to admire. Much of the extensive wilderness in the New England and Oxley Wild Rivers National Parks is World Heritage listed.

When you spy the views from Point Lookout in the New England National Park and walk along the trails that wind through temperate rainforest there, or, hike through the spectacular gorges and encounter dramatic waterfalls and hundreds of kilometres of pristine waterways in the Oxley Wild Rivers National Park, you’ll see why.

Sport and Recreation: Sport is an integral part of life in Armidale. From rugby matches, mountain biking and all sorts of competitive and adventurous pursuits to leisurely games of golf and tennis, there’s something for everyone.

For a city with a population of approximately 26,000 Armidale's list of facilities is particularly impressive. Eight turf cricket ovals, a state of the art indoor arena, twenty two outdoor bitumen and grass netball courts, thirty all weather tennis courts, indoor and outdoor basketball courts, a 50 metre Olympic pool plus a warm down 50 metre pool, an equestrian complex, mountain bike tracks, hectares of playing fields and a state of the art indoor gymnastics centre.

The local schools, in particular The Armidale School, Presbyterian Ladies College, the New England Girls School and the University of New England also have some outstanding facilities, generously made available to the wider community.

As a result of theses facilities Armidale is regularly chosen to host regional, state and national sporting events which inject over $15 million into the local economy.

The University of New England (UNE) is home to one of the finest university sporting precincts in Australia, playing an important role in the social and cultural life of UNE, Armidale and the New England Region.

SportUNE has an extensive range of first-rate facilities, including fifteen hectares of playing fields close to amenities, two multipurpose halls, a state-of-the-art weight and cardio gym, an indoor 25- metre heated pool, a climbing wall, and squash, badminton and tennis courts.

SportUNE is also the home of the Hockey New England complex, which includes two synthetic hockey fields. SportUNE offers a wide range of services which include group fitness classes, health and wellbeing programs, a healthy eating cafè, a crèche, personal trainers, on-site accommodation (for events) and access to more than twenty sporting clubs from a variety of different sports.

Out in the gorges and national parks, hiking, rock climbing and abseiling expeditions range from easy to difficult, and kayaking down the rivers can be a wild ride, particularly after heavy rains. If calmer waters are more your thing, then you’ll find Dumaresq Dam is a peaceful spot to paddle, or head to Malpas Dam, home to the New England Sailing Club and where locals race sailboats on Sundays during summer.

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Transport: Armidale is located roughly midway between Sydney and Brisbane on the Great Dividing Range - about a one hour flight to either from Armidale. The coast is only two hours away along one of the most beautiful scenic drives in Australia, the Waterfall Way. Armidale has a daily train service to and from Sydney and daily coach services to and from Brisbane and Sydney.

There are almost 100 direct flights between Armidale and Sydney each week and 12 between Armidale and Brisbane.

Facts – Armidale and region:

Land area of Armidale Regional Council local government area: 8,630 (sq. km) Population (estimated resident population) 30,300 Average weekly rent (3 bedroom home) $340.00 Median house price (3 bedroom home) $360,000 Persons per hectare – Population density 0.03 Students enrolled at UNE (on and off campus) 20,000 Average number of sporting events each weekend (Armidale) 288 Kilograms of tomatoes grown yearly (Guyra Tomato Exchange) 14 million

Major industries:  Education and Training  Agriculture  Health Care and Social Assistance  Retail trade  Accommodation and food services  Professional, Scientific & Technical Services

At the foot of Mt Duval in the New England High Country Armidale has much to offer

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Conclusion: Armidale Regional Council supports any endeavours, policies or incentives which encourage growth, improves infrastructure and provides a better quality of life in the regions. We are supportive of any Government agenda with this intent and direction.

Armidale Regional Council embraces the research and likely impact that a Government Office relocation program would have on our regional economy. Jobs growth underpins much of our expectation to deliver a higher quality of life to our community. In-fact our current Community Strategic Plan 2013 – 2028 states a key priority for the region:

‘To have a strong and resilient local economy and enhance employment opportunities’

The decision to relocate the Australian Pesticides and Veterinary Medicines Authority (APVMA) to Armidale in 2019 is viewed by Armidale Regional Council as a significant and positive decision by the Federal Government that will have many long term benefits for the Armidale Region, the University of New England and for APVMA. Benefits include:  172 additional direct jobs to be created in the Armidale Region  An increase of 507 total jobs located in the LGA (including the APVMA positions)  $91.77M impact on local economy

Armidale Regional Council, the University of New England (UNE) and the wider community are excited and prepared to host the Australian Pesticides and Veterinary Medicines Authority cognisant of the positive impact this will have on jobs and services in the region.

The modelling and research to date all points to positive outcomes for regional centres involved in Government department relocation programs. Armidale Regional Council will work hard as part of the APVMA Relocation Advisory Committee to ensure the smoothest transition possible. We will also work with the APVMA to ensure a long term presence in Armidale.

Notwithstanding the pressure decentralisation takes off city infrastructure planning and costs the regions need jobs to underpin robust economic security. Support of major regional centres ensures the viability of smaller regional centres, gives youth opportunities to stay in the regions and encourages confidence and investment.

With the advent of new technologies and faster means of transport the world gets smaller and smaller, we are closer and closer to our business partners and work associates. Telecommuting, remote work models, teleconferencing and the digital highway make the option to live in regional centres more and more attractive.

Everyone can have quality of life, a healthy environment and a wonderful work-life balance.

All this and you can still do business globally from a regional centre like Armidale.

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