REGIONALISATION CONSULTATION PAPER - MARCH 2022
Growing Australia’s network of regional cities (with populations over 50,000 people) makes sound economic sense. Our regional cities accounted for more than $229.5 billion in gross value-added production in 2013.50 This is a little over 15 per cent of Australia’s national output and internationally is comparable with the national output of Finland. Small cities anchor economic activity in a surrounding region and account for almost half of the regional output that occurs outside of Australia’s big five major cities. They are also highly productive. In 2013, Australia’s small cities were 88 per cent as productive as the five major cities and had comparable workforce participation.
Investing in services, facilities and infrastructure in regional cities will also mean that the surrounding towns and rural communities are closer to the economic and social infrastructure that is required for thriving communities, businesses and local economies. This “hub and spoke” concept is also the basis of the National Farmer’s Federation Regional Development Precincts model, released in 2022.
“As the country moves toward COVID recovery, planning for a network of strong regional capitals is now a national imperative.”
Further Reading: Deal or No Deal? and Blueprint for Investing in City Deals: Are you ready to deal?
Cr. Daniel Moloney, Chair of Regional Capitals Australia, January 2022.
The OECD has found that countries with a greater number of cities generally have higher per capita GDP and are more likely to be resilient to place-specific shocks.51 By nurturing and growing our second- and third-tier cities, and by framing the nation’s cities policy to have greater focus on the performance and potential of these cities, we can achieve an overall stronger outcome for Australia.
“Our regional centres and surrounding communities should be great places to live with affordable housing, social services, amenity and cultural opportunities – on par with that in urban Australia. There must also be career and business opportunities.” NFF President, Fiona Simpson, February 2022 Key Questions: 9. What are the best ways to unlock the economic potential of regional Australia? 10.What are the impediments to economic growth and investment in regional Australia?
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