Senate Select Committee on jobs for the future in regional areas - Senate Enquiry
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Senate Enquiry
September 2019
Senate Select Committee on
jobs for the future in
regional areas
Wodonga Council and AlburyCity
Page 1 of 10 Contents 1. Local Context ..................................................................................2 2. New industries and employment opportunities that can be created in the regions ..........................................................................................3 3. The number of existing jobs in regional areas in clean energy technology and ecological services and their future significance ............4 3.1. Wodonga Solar Farm .............................................................................................. 4 3.2. Wilson Transformers .............................................................................................. 5 3.2. Albury Waste Management Centre Solar Project .................................. 5 4. Lessons learned from structural adjustments in the automotive, manufacturing and forestry industries ....................................................5 5. Energy privatisation and their impact on labour markets and local economies ...............................................................................................6 6. The importance of long-term planning to support the diversification of supply chain industries and local economies ...............7 7. Measures to guide the transition into new industries and employment, including:...........................................................................8 7.1. Community infrastructure to attract investment and job creation .......................................................................................................................................... 8 7.2. Meaningful community consultation to guide the transition ......... 9 7.3. The role of vocational education providers, including TAFE, in enabling reskilling and retraining ................................................................................ 10 8. Recommendations ........................................................................ 10
Page 2 of 10 1. Local Context Albury-Wodonga's strategic location on major road, rail and air links provides a significant logistical advantage in comparison to other regional centres. Situated within the Sydney– Melbourne–Adelaide triangle, Albury-Wodonga's location provides access to 75 per cent of Australia's population within 24 hours. Albury Airport is also located just 10 kilometres from both central business areas with up to 180 flights per week serviced by three commercial carriers to Melbourne and Sydney. Albury-Wodonga offers a lower cost of living and an affordable property market with a median house price of $379,000, less than half that of Melbourne and Sydney. Without the traffic congestion, Albury-Wodonga residents also enjoy short commute times and with free parking across the region. Albury-Wodonga’s combined population is approximately 96,000, making it Australia’s 19th largest city. Major businesses in the area report lower salary and wage overheads than their capital city counterparts, with increased operational efficiencies as a result of lower staff turnover, higher staff reliability and fewer industrial disputes. AlburyCity and Wodonga Council have recognised the importance of working together to strengthen both sides of the border and, as a result, the Two Cities One Community (2C1C) partnership was formed. Both councils pledged a commitment to work together to realise a shared vision to plan, develop and grow the Albury-Wodonga region. Through a combined focus on four key pillars - leadership, economy, environment and community - the partnership will unleash the region’s potential and drive innovation for the benefit of residents and businesses alike. Following the announcement of this significant partnership, the then Minister for Regional Services, Sport, Local Government and Decentralisation, Senator Bridget McKenzie, announced a pilot Regional Deal for Albury-Wodonga. Senator McKenzie told the Press Club on March 20, 2019, that she expects to see the population of Albury-Wodonga triple in two decades to 375,000 people. This confidence supports the cities’ opportunity to ensure Albury-Wodonga prospers over the next decade by supporting population growth and economic development while also ensuring it remains a nationally significant, liveable and vibrant region.
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2. New industries and employment opportunities that can be created in the
regions
With affordable land and efficient transport links to major national and international
markets, Albury-Wodonga continues to experience growth through new industry and
relocating businesses. The diversity of the local economy means the cities are resilient to
the impacts of single sector downturns and have maintained consecutive growth in gross
regional product, presently valued at $7.3 billion annually.
With two universities, two TAFEs and the availability of a skilled workforce, Albury-
Wodonga is well-placed to attract new industries. Fostering an environment of innovative
thinking is supported through Wodonga Council’s commitment to the development of an
innovation space. Providing a physical and virtual space to encourage idea creation and
foster social communities, this project will create an eco-system for entrepreneurs wishing
to collaborate and encourage diverse businesses to find a place within the community
rather than operating in isolation. In August 2019, Wodonga Council awarded a $300,000
tender for the initial feasibility study for the project, which aligns with Regional
Development Victoria’s regional roadmap of ”supporting the establishment of new digital
and innovation hubs” in Wodonga.
The region, which has been identified as one of the top 20 cultural hotspots in Australia in
the Australian Cultural and Creative activity: A population and ‘hotspot’ analysis, is building
a strong reputation for creative enterprise with the development of MAMA (Murray Art
Museum Albury), the award-winning Albury LibraryMuseum and the $10.2 million
Wodonga library-gallery redevelopment.
In support of the aspirations to grow Albury-Wodonga’s innovative and creative economy,
AlburyCity has been successful in securing $1 million in funding through the NSW
Government’s Regional Cultural Fund for the development of a professional artist
incubator.
The PumpHouse will bring together elements of cultural activity already taking place in the
community and consolidate them into a cohesive and collaborative program. It also aims
to attract established and emerging creative talent to our region, making Albury-Wodonga
competitive in the national landscape, with a view to successfully supporting the growth
of entrepreneurial skills in creative practitioners, and ensuring growing creative economies
are resilient from the ground up.
During construction, the PumpHouse project is estimated to generate an additional $1.22
million per annum in direct and indirect benefits to the regional economy.
The Albury Wodonga Regional Economic Development Strategy (REDS) 2018-2022 is
another important roadmap for guiding the region’s long-term economic vision. Building
on the specialisations and economic strengths of our region, key opportunities include:
Page 4 of 10
• Support and growth of the agribusiness and softwoods industries;
• Growth in the transport and logistics sector;
• Continued development of the tourism sector and growth in the visitor economy;
• Growth in the healthcare sector through the development of a health precinct;
• Attraction and retention of talent to sustain the supply of skilled workers; and
• Capitalising on the region’s opportunity to be a special economic zone.
The research already undertaken as part of the strategy provides a framework to build
these industries and employment opportunities.
The Melbourne-Brisbane Inland Rail project provides a further significant opportunity for
Albury-Wodonga to leverage our connected location. It will allow us to build upon our
advantages for transport and logistics operators, by making our local producers more
globally competitive, improving access to national and international markets, reducing
supply chain costs and creating jobs.
In recognising the above, the Australian Government has an important role to play in
supporting major regional cities like Albury-Wodonga. Essential services and employment
opportunities underpin the growth and prosperity of our region and without support and
intervention at a federal level, the opportunity to attract new industries and grow our
region’s economy will be limited.
3. The number of existing jobs in regional areas in clean energy technology
and ecological services and their future significance
The Climate Council of Australia has estimated the employment impact of an accelerated
uptake of renewable energy will result in significant job growth in regional areas. It
predicts 50 per cent of Australia’s electricity will be generated from renewable sources by
2030. This provides significant opportunity for regional areas such as Albury-Wodonga
which has direct access to the National Electricity Transmission Network. Already, several
projects are under way.
3.1. Wodonga Solar Farm
Wodonga Solar Power Pty Ltd is an $80 million joint venture between South Korean solar
company S-Energy and Melbourne infrastructure project management consultancy
Heliades Pty Ltd.
The solar farm will be connected to an AusNet 66Kv substation located south-west of
Wodonga. Construction is expected to take 14 months with more than 80 jobs created in
the region. There is also potential for 25MW+ of additional capacity on adjacent land. The
completion of this project will result in five ongoing jobs relating to monitoring, and
additional jobs will be required for maintenance and upgrade works.
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3.2. Wilson Transformers
Wilson Transformer Company, with manufacturing bases in Albury-Wodonga and Glen
Waverley, has secured a major contract to partner a major renewable energy project. The
White Rock Wind Farm in the New England Tablelands near Glen Innes is under
construction, and when completed will be the largest wind farm in NSW. The project, which
is the largest of its kind for Wilson Transformers will support up to 100 jobs in regional
areas.
Awarding this contract to Wilson Transformers is a demonstration regional manufacturing
can compete against global suppliers by offering quality innovative products at competitive
prices. The Australian-owned company employs more than 500 people across Australia
and, as demand for renewable energy grows, is increasing its employee numbers to meet
targets.
3.2. Albury Waste Management Centre Solar Project
The Albury Waste Management Centre provides an exciting example of the support
provided by local government and the community for clean energy technology. As the first
solar farm built and commissioned on a capped landfill site, AlburyCity has worked with
LMS energy and Joule energy to install 4,000 solar panels on a rehabilitated landfill area.
The Albury Renewable Energy Hub will produce enough energy to power about 400 homes
or more than 1,000 electricity users in the local community.
The solar panels will combine with the existing landfill gas system to increase the
renewable energy capacity of the site. The existing gas methane system provides
electricity to about 1,500 homes, the solar panels will increase this further, meaning that
1,900 homes will be powered by renewable energy.
Joule Energy has also installed an electric vehicle recharging station at the site that
members of the public are welcome to use.
This local government investment has spurred significant interest from private enterprise
in the establishment of clean energy technology locally.
4. Lessons learned from structural adjustments in the automotive,
manufacturing and forestry industries
Technological and structural changes in the automotive and manufacturing industries have
led to significant job losses in both municipalities. The manufacturing industry, over the
past five years, has seen a decrease in employment by 11 per cent which equates to 538
FTE jobs. These job losses have significantly displaced people with long-term careers inPage 6 of 10 these industries. Employees with the specialised technical skills required for this work have struggled to re-enter the workforce and make use of their acquired skill set. Mars Petcare, an international pet food manufacturer located in Wodonga, recently upgraded its single serve production line to include the newest technologies and efficiencies, resulting in 32 redundancies from its manufacturing ranks. One of the most difficult challenges facing former manufacturing employees is finding their next source of secure employment. Research indicates that replacement incomes, on aggregate, are lower than original income levels, which has both a direct and indirect detrimental effect on local economies. Lessons learned from the forestry industry locally point to the requirement for a vertically integrated industry in order to drive economic activity as widely as possible. The plantation softwoods established in the south-west slopes region of NSW provide economic advantage from Cootamundra-Gundagai in the north to Albury Wodonga and North East Victoria. With the region supporting everything from growth of tree-seedlings through to the manufacture of paper and wood products, world-scale manufacturing plants are choosing to locate in Albury-Wodonga. However. availability of skilled operators continues to be an issue at all levels of the industry, with the flow on impacts resulting in constraints to future growth capacity of the forest and timber industry. 5. Energy privatisation and their impact on labour markets and local economies Regardless of ownership of energy generating infrastructure (either partially or wholly privatised) energy prices have increased sharply in recent years. Real electricity price increases have risen 117 per cent in the 10 years since 2008. This has had a significant impact on large power users including local manufacturers. In the competitive landscape of the business sector, electricity prices can mean the difference between the ability to expand operations, employ additional staff or sometimes even continue to operate. Two significant employers in Albury Wodonga, Norske Skog and Mars Petcare, have publically spoken of the cost efficiency challenges of rising power prices for their production processes. Norske Skog and Mars have shortened, and in some cases shut down shifts, to avoid electricity price spikes creating a domino effect, both socially and economically for their workforce and families. While big business has greater capacity to invest heavily in renewable energy - in order to not only reduce their energy costs, but to also meet the output level of their energy demands - the same cannot always be said for small business. Energy intensive businesses, unable to pass on those costs to consumers, are continually at odds with raising capital for large renewable energy investments.
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The Australian Government can support business operators by creating energy and climate
policy that considers both affordability and reliability. Reducing uncertainty around
investment in renewables, as well as correcting the escalation of prices in the existing
energy market, will go a long way to creating jobs in our regional communities.
6. The importance of long-term planning to support the diversification of supply
chain industries and local economies
Long-term strategic planning is complex, given the scope of issues that need to be
considered and addressed in a land-use and community planning context. In many cases,
the issues raised during planning present challenges and opportunities that are often
competing and must be carefully weighed and balanced.
Successful long-term planning for regions has the capacity to positively shape the urban
and rural environment of a city, by facilitating and unlocking development opportunities
in a manner that is co-ordinated with delivery of necessary infrastructure. It can provide
clear direction across a range of council functions to provide certainty for stakeholders
that there is a strategic basis for Local Government decision-making.
Albury-Wodonga plays an important role as a retail, employment, community services and
recreation hub, servicing an extended regional catchment of more than 180,000 people.
The cities are well-placed to accommodate the projected growth having completed a range
of strategic investigations.
Beyond preparation of various strategies and action plans, the cities have invested in the
future and acted with great foresight by:
• Acquiring the Baranduda Fields site in Wodonga for future active recreation;
• Facilitating development of key industry and employment sites such as Logic in
Wodonga and the Nexus Industrial Precinct in Albury;
• Pursuing redevelopment and revitalisation of the central business areas;
• Understanding the impact of the creative economy to liveability;
• Forward planning for population increases in through development of the
Thurgoona-Wirlinga growth corridor in Albury and the Leneva-Baranduda growth
corridor in Wodonga; and
• Looking beyond state and regional borders for functional economic zones.
In terms of the growth and attraction of diverse industry, long-term planning provides
clear direction to developers, service providers and the community. Long-term planning
will also play an important role in establishing the basis for advocacy on behalf of the cities
particularly with regard to investment, infrastructure delivery and other programs.
Albury-Wodonga’s commitment to actively facilitating and supporting employment growth
in the region is evident in the comprehensive nature of the Invest Albury Wodonga
marketing campaign which aims to see a diverse range of sectors relocate and beginPage 8 of 10
operations in either municipality. Already, the campaign has been successful in attracting
both public and private investment to ensure there are jobs to support Albury-Wodonga’s
growth as liveable and prosperous cities.
Understanding the importance of long-term planning to support our local economy, Albury-
Wodonga have curated a list of game-changing projects to drive ongoing growth and
diversity of our local economy, which include:
• Albury Airport Precinct Expansion;
• Convention wing expansion at the Albury Entertainment Centre;
• Continued investment in the Murray Riverside Precinct;
• Redevelopment of Wodonga’s central business area;
• Gas gate installation at Logic industrial precinct; and
• Development of Baranduda Field sports and community precinct.
The Australian Government has a role to play in recognising the importance of regionally-
led major infrastructure projects, their impact in achieving long-term planning goals and
the buy-in from the local community for these projects as a means to delivering on regional
growth.
7. Measures to guide the transition into new industries and employment,
including:
7.1. Community infrastructure to attract investment and job creation
Private investment can be realised through creation of enabling infrastructure and planned
development precincts. For cities such as Albury-Wodonga, private investment is the
catalyst to sustainability, growth and economic stability. This is an area where the
government has the most leverage. Incentives and grants for start-ups or relocating
businesses can make a significant and positive long-term economic impact in regional
cities. This is particularly true for Albury-Wodonga, where already established first-class
road, rail and air freight and passenger networks connect businesses to major markets,
both nationally and internationally. This includes two world class intermodal hubs, which
cost effectively interchange freight between road and rail.
This form of financial support has proven to be effective in enticing large-scale business
to regional cities and also extends to the requirement for critical infrastructure. An example
of this is the Davey Road interchange supporting the Nexus Industrial Precinct in Albury
to ensure the safe and effective flow of transport into the estate. In making such targeted
investments in critical infrastructure, the government can leverage regional investment
and in so doing, effectively deliver regional jobs growth, economic resilience and
decentralisation.
A further example is evidenced through Wodonga’s City Heart Revitalisation Project. In
2014, Wodonga Council received Australian Government funding under the NationalPage 9 of 10 Stronger Regions Fund for the revitalisation of the city centre. This presented an opportunity to rebuild and redesign significant infrastructure which would enhance the city’s profile and provide a vibrancy to the aging central business area (CBA). These works were officially completed in August 2019 and already there has been significant improvements to the CBA’s vacancy rates, demonstrating the economic and social significance of public funding in creating the platform for private investment. Capital cities by their scale and nature will attract private investment in their own right, with little required in the way of government support. Organic jobs and population growth are burgeoning, creating major issues and resulting in significant policy and investment focus being aimed at addressing housing affordability, productivity, congestion, transport and pollution. This situation differs dramatically for regional cities, many of which have immediate capacity for growth, where congestion is not a factor, commute times are short, productivity is high, and the lifestyle offer is outstanding. Municipalities in regional centres are often required to become involved in projects not taken up by the private sector to ensure the economic interests of the local community are protected. Typically this is due to projects having low fiscal returns and extended holding costs which do not appeal to the private sector. An example of this is the provision of industrial land. Typically this function is undertaken by the private sector in metropolitan areas as the returns and consumption rates are greater. In contrast, private developers in regional areas have shown little desire to provide serviced industrial estates due to slow consumption rates, holding costs and lower returns than available in other land development sectors. This results in the need for local government to provide industrial land to ensure key sectors of the economy are advanced and new jobs are created. In addition, regional councils are challenged with proactively attracting population growth while fringe Melbourne areas are challenged with managing the rapid influx of people. Therefore, the role local government plays in managing these different scenarios, is markedly different. 7.2. Meaningful community consultation to guide the transition Both AlburyCity and Wodonga councils are working alongside the Australian Government to facilitate stakeholder consultation to better understand the needs of the community in the context of the Regional Deal. Both councils have comprehensive community engagement strategies that can be utilised to obtain meaningful feedback from the community to guide our transition into new industries and employment. These strategies include community forums, online ‘have a say’ style platforms, social media engagement, alongside face-to-face engagement with community groups, key stakeholders and individuals.
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7.3. The role of vocational education providers, including TAFE, in enabling
reskilling and retraining
With two universities and two TAFEs, Albury-Wodonga is well-placed to capitalise on the
diversity in the available education options. Playing an integral role in the education and
training of our workforce, training providers are essential to delivering on the reduction of
skill gaps. There is strong evidence that the cognitive skills of a population are interrelated
to individual earning capacity, business productivity, innovation and contribution to
society.
Importantly, education providers are essential to the triple helix model of innovation.
Supporting interaction between academia, industry and government to foster economic
and social development, increased collaboration between these sectors will enable Albury-
Wodonga to deliver on its vision for sustainable growth.
8. Recommendations
Albury-Wodonga’s preparedness and agility to progress new industry opportunities
provides security for public and private investment decisions and increases the likelihood
of future job growth in the region. Albury-Wodonga has shovel ready greenfield land and
visionary blueprints for further development in both city centres to accommodate new
industries and their workforce.
In summary, this submission recommends that the Senate Select Committee:
• Recognise that enhancing the growth of Albury-Wodonga will require commitment
from state and federal governments to invest in public infrastructure projects. The
investments will be pivotal in realising growth in population through jobs and future
industries;
• Understand the importance of major regional cities, such as Albury-Wodonga in
providing employment, critical services and lifestyle opportunities to surrounding
towns and regions;
• Consider how incentives (including tax or financial offsets) specific to regional
locations can encourage businesses to expand or establish in regional locations;
• Ensure that increasing skills shortage levels in the regions, and the negative
impacts of downturns in major industries such as manufacturing, are neutralised
by supporting or initiating collaborations between existing training providers,
industry and government.
• Creating energy and climate policy that considers both affordability and reliability,
in turn removing uncertainty around investment in renewables and supporting
regional innovation in this sector.
• Recognising the importance of regionally-led major infrastructure projects, their
impact in achieving long-term strategic goals at both a local, state and national
level.
• Considering economic development initiatives for regional locations in the context
of functional economic zones.You can also read
