Regional Employment Growth?
There is a growing concern that Regional Employment Growth is becoming a contradiction in terms…. Why?
I apologise in advance for my apparent negative tone. Since the GFC and the downturn in mining, the appetite for investment has contracted to the Metropolitan areas of Brisbane, Sydney and Melbourne. The consensus has always been though, that once mining gets back on its feet, followed by strategic infrastructure funding in regional areas, that the regions will again become the boom frontiers.
I am concerned about this for several reasons.
1. Mining employment should bring more workers and businesses to fly in – fly out centres such as Townsville, however more and more people are opting to fly in – fly out from Brisbane and even Sydney. They do this for family reasons, lifestyle and amenity. (I am sprouting the same argument the small mining towns have had for years)
2. There is a strong move towards automation in the mining industry. We know about driverless trucks already. Mining companies will continue to automate where possible as this reduces costs, staffing costs and also workplace dispute issues. Where will this be in 5 years or 10 years?
3. The infrastructure spending in the regions that seems to be attracting the political dollar are things such as roads, stadiums and flood repairs. All great and worthy spends that create jobs (albeit short term) and activity. However, where is the spending on Water and Power, the two key essentials that we need to attract longer term and larger scale projects to the region? It is concerning that the far left of politics seems to have hijacked the Water and Power debate and there can be no debate on sustainable development.
4. Since the GFC and the Banking Royal Commission, funding risk parameters have changed dramatically seeing a rise in mezzanine style funding and a contraction in the property development industry to those with large equity partnerships. Property Development is no longer a game you can start small and grow.
5. …and finally, my favourite topic “Political Will”. The election result was a boost for confidence but that must be followed with nation building project spending that opens up our country to sustainable development. In the north we should be the frontier of research and development, the frontier for primary industry, and the frontier for renewable energy generation...but I have yet to see the “Political Will” to match the rhetoric.
Where to from here for Regional Australia?
John Rosel