September 2021 - Regional Australia ...
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2011 - 2021 A DECADE OF ACHIEVEMENT September 2021 REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 1
TABLE OF CONTENTS About us 2 Foundations of Regional Australia 3 Message from the Interim Chairman 4 Message from our CEO 5 Our People 6 A 10-Year Retrospective 7 Regionalisation - Rebalancing our Nation 19 Conclusion 26 REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 1
ABOUT US The Regional Australia Institute (RAI) is the only national, independent think tank and research organisation dedicated to supporting the well-being and prosperity of regional Australia. Established in 2011, the RAI was specifically formed to help bridge the gap between knowledge, debate and decision-making for the future pathways of regional Australia. It exists to ensure all levels of government, industry and community members have access to the information they need to make decisions impacting the future of regional Australia. Informed by both research and ongoing dialogue with the community, the RAI develops evidence-based policy and advocates for change to build a stronger economy and better quality of life in regional Australia – for the benefit of all Australians. Through its work, the RAI strives to support regions to reach their potential, which means developing new policy approaches, supporting discussion among government and industry leaders and working toward the empowerment and engagement of regional communities. This work and these associated relationships have successfully positioned the RAI at the forefront of the regional Australia conversation. The RAI is the voice for the regions. On the occasion of its 10th Anniversary, the RAI is taking the opportunity to reflect on its key contributions over the decade. This report provides a retrospective of the RAI’s most influential and informative research and events since its inception. Capturing the main themes and recommendations, the report moves from retrospective to roadmap, looking ahead at ways to further support the growth and prosperity of regional Australia. The RAI is governed by a Board of Directors, a diverse group of independent thinkers, who bring together the right mix of knowledge, expertise, skills and experience. The Board has extensive knowledge of research and policy implementations at the local, state and federal levels, and strong community links. The RAI Staff are led by a Chief Executive Officer and comprise a small team of professionals with a variety of skills and experience with regional issues. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 2
FOUNDATIONS OF REGIONAL AUSTRALIA For the RAI, regional Australia is all of Australia outside the capital cities of Sydney, Melbourne, Brisbane, Perth, Adelaide and Canberra. It is home to 9.45 million Australians and its workforce accounts for about one-third of employment in Australia. Regional Australia contributes about 40% of the national economic output, but that figure increased after the global financial crisis, showing the ability of the regions to lead the nation in recovering after hard times. Regional Australia is extremely diverse and there are no “one-size-fits-all” policy approaches. Australia has hundreds of regional communities and each one is unique. In broad terms, the factors that will shape their economic futures can be divided into three categories: how many people live there, the kind of work that these people do and the distance to major cities from these places. These are key drivers of economic growth and change. It was for this reason in 2015 that RAI developed the Foundations of Regional Australia, recognising four distinct categories within regional Australia. The categories were developed based on the relationships between a region’s key industries, its proximity to larger cities and local population size. They allow researchers and policy makers to capture both the diversity and the common challenges faced by regional communities across the country. These Foundations provide a starting point for understanding the range of unique pathways to future prosperity that exist across regional Australia. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 3
MESSAGE FROM THE INTERIM CHAIRMAN AFTER 10 YEARS, I THINK WE HAVE THE BALANCE RIGHT. I THINK IT WOULD BE FAIR TO SAY THAT MORE PEOPLE IN AUSTRALIA ARE TURNING THEIR MIND TO THE OPPORTUNITIES OF RURAL AND REGIONAL AUSTRALIA THAN AT ANY OTHER TIME SINCE FEDERATION. WE ARE PROUD TO HAVE BEEN A PART OF THE CHANGE. When we founded the Regional Australia Institute, there was a real sense of wanting to make a big impact. In particular, there was a commitment to thinking long-term and developing a body of research that could inform policy and have a real impact on the ground. We knew, starting as we were from scratch, that this type of impact would take time and hard work to achieve. We knew we had to build trust by producing outstanding research. We have had people on the RAI Board, since our founding, who have an incredible knowledge of and passion for regional Australia. It has been a Board that has fostered collaboration, encouraged spirited discussion, and brought together people to work in common cause for the advancement of regional Australia. We have learned a great deal from each other over the decade and in doing so we have been able to sharpen our focus each year on what matters most to rural and regional Australia and how we can best make a difference. Having served as a Director for all of the 10 years, I can honestly say that in everything we have done we have maintained a laser-like focus on what matters to regional Australia. Each of us has brought a particular connection to regional Australia through our work and personal connection to different parts of the country, and I want to pay particular tribute to our Chairman for nearly all of the 10 years, Mal Peters OAM, who has been a great exemplar of this. A former President of NSW Farmers Association and former Director of National Farmers Federation (NFF), he brought a powerful connection to agriculture and farming to the Board and always demonstrated a determination to make sure that we embraced the diversity of rural, regional and remote Australia. As a Board, we are excited about what we can achieve on behalf of regional Australia in the decade ahead. And the decade after that. We know these are exciting times for regional Australia with so much opportunity right across the country and, with your support, we know that the decades ahead will be even better for all of country Australia CHRISTIAN ZAHRA AM FAICD, INTERIM CHAIRMAN REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 4
MESSAGE FROM OUR CEO FOR 10 YEARS, THE REGIONAL AUSTRALIA INSTITUTE (RAI) HAS BEEN STRIVING TO ENSURE THAT REGIONS TAKE THEIR RIGHTFUL PLACE IN THE AUSTRALIAN STORY AND REGIONALISATION IS AT THE CORE OF OUR WORK. It has been 10 years since the Regional Australia Institute (RAI) was born with the mission to become an authoritative and trusted source of independent information and policy advice on regional issues. Started with seed funding from the Commonwealth Government, the RAI was established in 2011. Its Board was composed of a diverse group of eminent Australians with both the skills and the passion to drive a paradigm shift in regional development. The Board and the staff were determined to produce work that was capable of challenging existing thinking and of shifting the narrative about regional Australia - work which would translate into real results on the ground. Since that time, the RAI has been prolific in conducting consultations, undertaking research, analysing data, making policy recommendations, writing submissions and holding events which bring together diverse stakeholders. It has produced unique tools to facilitate understanding on similarities and differences between regions. It has directly influenced government policy making at the highest levels. As importantly, it has worked closely with regional leaders and their communities to identify opportunities and address challenges in regional Australia’s journey to reach its potential. Today, the RAI has a national profile and is viewed by government, industry and communities as a trusted source of authoritative advice on all issues related to the well-being and prosperity of regional Australia and regional Australians. On this occasion, as we mark 10 years since the RAI was established, I am delighted to present this special publication to recognise our substantial body of work. No single publication would do justice to the depth and diversity produced by the RAI over the past decade; however, we have put together a retrospective of selected highlights, which has had a real impact. Lastly, I would like to take the opportunity to publicly express my sincere appreciation and thanks to our outgoing Founding Chairman, Mr Mal Peters, our Interim Chairman, Christian Zahra and both past and present board members and the dedicated RAI staff who have served the organisation over the past decade, from our inception towards a brighter future. LIZ RITCHIE CEO RAI REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 5
OUR PEOPLE RAI BOARD MEMBERS 2011 - PRESENT The RAI is governed by a diverse group of independent thinkers who span the political divide and bring together the right mix of knowledge, expertise, skills and experience in regional Australia. The Board has extensive knowledge of research and policy implementation at local, state and federal levels and strong community links. We thank and acknowledge both past and present Board Directors for their service to the RAI. MR MAL PETERS MR CHRISTIAN PROFESSOR PROFESSOR MR GRANT LATTA MR TIM OAM ZAHRA AM NGIARE BROWN SANDRA HARDING OAM AM SHACKLETON CHAIRMAN (2011- PRESENT) (2011- 2012) AO (2011- 2016) (2012 - 2018) (2011-2021) (2011- 2016) RT HON MR GRAHAME PROFESSOR MS REBECCA PROFESSOR THE HON IAN SINCLAIR AC MORRIS ANNABELLE TOMKINSON GERALDINE MARK VAILE AO (2011 - 2018) (2016 - 2020) DUNCAN (2019 - PRESENT) MACKENZIE (2021 - PRESENT) (2017 - 2020) (2020 - PRESENT) THE HON ANDRE CARSTENS ROB KERIN (2021 - PRESENT) (2021 - PRESENT) RAI CHIEF EXECUTIVE OFFICERS (2011- PRESENT) SU MCCLUSKEY JACK ARCHER DR. KIM HOUGHTON LIZ RITCHIE (FOUNDING - 2015) (2015 - 2019) (Co-CEO 2019 - 2020) (2019 - PRESENT) REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 6
A 10-YEAR 2021: RETROSPECTIVE: 2019-2020: TOWARD REGIONALISATION KEY HIGHLIGHTS FROM RESEARCH TO ACTIVATION 2018-2019: MAKING REAL CHANGE 2017-2018: COLLABORATION AND CONNECTIONS 2016-2017: IMPACTING POLICY 2015-2016: FINDING SOLUTIONS 2014-2015: REGIONAL ECONOMIES 2013-2014: RETHINKING THE ISSUES 2011-2013: STRENGTHENING THE DATA Today there are massive opportunities for new growth and development in the regions 2011-2013: but there are also many challenges….Critical to identifying and tackling these challenges is quality research, which supports robust arguments and evidence-based policy that STRENGTHENING THE DATA governments can use to get results on the ground." MAL PETERS, CHAIRMAN, ANNUAL REPORT 2011-2012 The Regional Australia Institute (RAI) was established with the mission to become “Australia’s pre- eminent, authoritative source of independent information and policy advice on issues impacting regional Australia”. When the RAI was first created, there was a distinct lack of evidence on regional issues and a lack of coordination around the data that did exist. Additionally, there were many misperceptions and myths surrounding the state of regional Australia and its opportunities. One of the RAI’s first tasks was to undertake a stocktake of regional research to catalogue existing research on regional issues. It was the most comprehensive stocktake ever done on regional Australia and resulted in 2012 in the creation of [In]Form, Australia’s only free, searchable database of regional research. The second major piece of work in RAI’s first year was the development of [In]Sight, the nation’s first online index and interactive map tracking the competitiveness of Australia’s 560 Local Government Areas (LGAs) and 55 Regional Development Australia (RDA) regions. This unique tool allows comparisons across 10 themes and 71 indicators that reflect the fundamentals of sustainable growth in Australia, capturing the relative competitiveness of LGAs. Its development was informed by the experience and design of international competitiveness indices, yet [In]Sight also goes further than most indices, as the RAI makes all of the data available through an online interactive map for use alongside reporting of the results. This puts over 92,000 pieces of information on the Australian economy at the fingertips of every Australian. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 7
By identifying and understanding the variation of growth factors at the LGA level, the index can provide rich data for policy makers. The findings from [In]Sight allow regions to capitalise on local opportunities and sources of advantage, as well as to understand the roles of technology, human capital and innovation on regional growth. [In]Sight data has led to a number of reports by the RAI on different topics, including on competitiveness in the East Coast corridor and the Northern Territory, as well as a paper on Australia’s economic diversity. We need to move policy and thinking beyond just reacting and providing band-aid 2013-2014: solutions or hoping for the best in the face of constant change. Our work will help RETHINKING THE ISSUES Australia get ahead of the game. SU MCCLUSKEY, CEO, [IN]SIGHT 2014 LAUNCH The RAI produced a series of talking points to explore the current and future trends of Australia’s regional populations and to inform a wide range of stakeholders about the opportunities and challenges that flow from its dynamic and increasingly mobile regional populations. Returning to Regional Australia looked at the influx of Australians aged 25-44 returning to regional areas, An Ageing (Regional Australia) and the Rise of the Super Boomer explored the ageing trends of regional communities. The following year, in 2015, the RAI continued its work on population and produced the report Population Dynamics in Regional Australia. These reports were underpinned by the work of RAI Fellow, the late Graeme Hugo from the Australian Population and Migration Research Centre, at the University of Adelaide. Taken together, these works were able to dispel myths surrounding regional decline and provide evidence of important trends in regional population, namely: the regional population is growing at a rate not far below that of the capital cities; ageing is an opportunity for growth that regions must value because older people choose regions; and young people leave every region, but many return. These ‘returners’ are a key source of growth. They also identified the policy responses that can be used at a local, state or federal level to promote population growth and change for regional development. Another significant report released by the RAI during this era focused on Australia’s top end. Rethinking the Future of Northern Australia’s Regions: More than Mines, Dams and Development Dreams which identified the imperative for a balanced, regionally responsive development strategy for northern Australia. This influential analysis had a direct and profound impact on policy making. It provided rich information for the first Australian Government White Paper on the Development of Northern Australia, released in 2015. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 8
Knowledge is power. Better knowledge about regional Australia enables us to influence 2014-2015: decision-making, ensuring the growth and prosperity of Australia’s regions and our REGIONAL ECONOMIES nation as a whole. MAL PETERS, CHAIRMAN, ANNUAL REPORT 2014-2015 A particular focus in 2015 was the regional economy. The RAI’s report The Economic Contribution of Regions to Australia’s Prosperity provided a baseline for a better conversation about the regional economy, based on fact not negative assumption. Some facts unearthed in this report relating to Australia’s regional economy still surprise people and make them rethink assumptions about why regional development matters and the value regions have to the nation. For example: Australia’s rural and remote Heartland economy alone is bigger than the economy of New Zealand; each agriculture worker contributes the same to the Australian economy as a finance worker; on a per capita basis the regions contribute as much as the cities do to the economy. The report revealed the importance of Australia’s regions to national economic growth, outlining key facts as well as regional Australia’s place in the national economic story. It effectively created the groundwork for understanding the economy of regional Australia by looking at three key indicators of activity: economic output, labour market and productivity. While continuing its usual work of research projects, data collection and analysis, the RAI turned its attention during the year to Western Australia. In conjunction with the Government of Western Australia, its report Cities Beyond Perth-Best Bets for Growth in a New Economic Environment outlined a novel framework which, if implemented successfully, would build a diversified, resilient and growing network of regional cities and economies in Western Australia (WA). The framework identified four types of communities in regional WA and their best strategies for development, based on their respective strengths and opportunities. The RAI also conducted two smaller but equally important studies into specific issues in Western Australia in the same year. The first looked into the question of Access to Finance for SMEs in Western Australia, acknowledging the importance of small and medium-sized enterprises to regional innovation, workforce and growth. The second analysed the opportunities and challenges for online work in regional WA, recognising that technology in the workplace offers opportunities to deepen the connection of Western Australian regions to the rest of the world. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 9
Regional success is built on a balance of local ingenuity and proactivity, and informed, 2015-2016: consultative state and federal leadership. We need to lift expectations; about what our economy can do, what government can do, and what regional people can and are FINDING SOLUTIONS already doing. It’s time for a period of change on our own terms. JACK ARCHER, CEO, REGIONS AND THE NEW ECONOMIC AGENDA Having built a comprehensive knowledge base as well as developing key stakeholder relationships across the country, the RAI was in a position to delve deeply into specific regions and provide advice and recommendations on their growth trajectories. It launched the unique Pathfinder Initiative. Pathfinder is a signature RAI process to identify the drivers for change in a given region. It understands that regional Australia is so vast and diverse that place-based solutions are the best option for success. Using a collaborative approach with local leaders, the RAI performs modelling which identifies the factors for success which will yield optimum growth. The Pathfinder was an ambitious initiative and one which has returned positive results with each region that has applied it since its inception. During the year, the RAI continued its work highlighting key opportunities in regional Australia that are often overlooked. Its report Deal or No Deal: Bringing Small Cities into the National Cities Agenda identified the growth potential of Australia’s smaller cities where little effort has been made to harness their collective potential, despite boasting a higher growth rate than the major cities between 2002 and 2010. The report highlighted key ingredients that must be identified by each city in order to deliver on its growth potential. The report also proposed a Regional City policy, where a negotiated agreement is made between governments and a city, that give the city responsibility for decisions that support businesses, create economic growth and determine how public money is spent in their area. The impact of the report was apparent in the Australian Government’s subsequent announcement of a regional stream for City Deals. Much of the RAI’s focus has always been on pushing the boundaries for regional Australia, testing and modelling to see what can be done better and identifying pathways for maximising potential. The RAI asks the hard questions and during the year its discussion paper Delivering Better Government for the Regions focused on the role of government and questioned how to achieve better government for regional Australia. For the RAI, effective governance for regions is a product of positive engagement between central governments and the regions; it is based on relationship building and the generation of new capacities in both the centre and the periphery and is outcomes focused. The decentralisation of decision-making is central to this theme. The paper was aimed at stimulating debate and refocusing policy development and was influential in the Australian Government’s subsequent decentralisation agenda. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 10
2016-2017: The RAI’s work can help...governments to better understand regional issues and to develop policy solutions that can make a real impact at the local level. IMPACTING POLICY JACK ARCHER, CEO, ANNUAL REPORT, 2016-2017 In 2016-17, the influence of the RAI’s work on government decision-making was increasingly apparent. Its recommendation to the Productivity Commission for a new regional telecommunications Universal Services Obligation (USO) including broadband was adopted. Its Innovative mapping of regional city connections resulted in the Department of Prime Minister and Cabinet including this approach in the Smart Cities Plan National Cities Performance Framework. The RAI work on regional economies in transition influenced the design and conclusions of the Productivity Commission’s study on the transition of regional economies following the resources boom. The RAI examined the effect of increasing automation and digitalisation of work in comparison to a growing education divide experienced by regional students. Its report The Future of Work: Setting Kids Up for Success identified key actions needed for regional Australia’s children to be successful in the future job market. Coupled with a website hosted in conjunction with NBN Co, this work was included in the Australian Government Independent Review into Regional, Rural and Remote Education. The RAI highlighted the future that regions potentially faced with automation and job disruption set to increase, while an entrenched education divide made it hard for regions to respond. Its work has directly influenced the direction of the national regional education review, transitioning regional economies inquiries, and built stronger public knowledge of these issues that we will be grappling with in regions for some years to come. The RAI also continued to build on work that was having an impact on the ground. After its report on Small Cities and the Government decision to have a regional stream for City Deals, the RAI helped to translate the work into practical action. It brought together a number of key stakeholders in its Five + Thirty-One City Deals event to explore the issue and then issued a Blueprint for Investing in City Deals: Are You Ready to Deal which was a pragmatic guide to help regional cities prepare to leverage their economic potential. The RAI also continued its myth-busting work, with its publication Lighting Up Great Small Cities: Challenging Misconceptions. The year also saw the beginning of the RAI’s important and influential work on regional migration. For regional areas grappling with an ageing or declining population, international migration can offer population stability, diversity and create jobs. The RAI’s first publication on the topic, The Missing Migrants started the conversation about proactive, locally-led strategies to attract migrants to regional areas, and why these need to be a priority for Australia’s regions. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 11
2017-2018: ..the organisation is clearly delivering on the need for regional Australia to have a leading, independent evidence-based voice on its future. COLLABORATION AND CONNECTIONS MAL PETERS, CHAIRMAN, ANNUAL REPORT 2017-2018 The year marked a significant transition for the RAI, with the development and adoption of its new Shared Inquiry Program for Regional Policy Research and the launch of Regional Research Connections. The Shared Inquiry Initiative is a collaboration with the Federal Government and all State and Territory Governments which provides an ongoing source of robust evidence for policy makers as well as informing debate about the regional contribution to Australia’s future economy. The Regional Research Connections is a partnership involving four universities to support the Shared Inquiry. The partnership included the University of South Australia, RMIT University, Southern Cross University and Charles Darwin University. Together, these initiatives significantly deepened and extended the capacity of the RAI to deliver insights for policy makers and regional leaders. During the year, the RAI dived deeper into the issues of workforce and migration. It held a Migration Nation Roundtable, bringing together local leaders from around rural Australia who had successfully developed locally led migration strategies. Previously working in isolation of each other, the event offered the opportunity to form a network, define a national rural migration issue and its potential resolution. Discussion centred on projects aimed at attracting and retaining migrants in rural areas. Deeper research on workforce and migration resulted in the RAI report The Missing Workers. Including 14 community narratives, a policy paper, and three videos, this work highlighted an opportunity to support and enable the development of locally led migration projects in rural communities facing the challenge of population decline and workforce shortages. It also focused on the need to make these identified areas a priority for migrant settlement. The report More Migrants for Small Towns was launched at Parliament House highlighting the need to support and further encourage locally led migration strategies in rural areas across the country. The report and the events attracted significant interest and media coverage. Consistent with some of the recommendations of the Missing Workers paper, the Government subsequently flagged changes to the visa system to enable regional areas to achieve priority for local workforce needs. The RAI’s work had significant impacts in other areas of regional policy also. Its Pillars of Communities: Service Delivery Professionals in Small Australian Towns report shone a light on the on- going challenges in securing a services workforce in rural and remote areas despite billions of dollars in annual expenditure. It served to reinvigorate a long-standing debate and area of national policy effort. The work was cited by politicians and referenced in inquiry submissions. The RAI also continued its work on decentralisation, making a substantial and influential contribution to the House of Representatives Regional Development and Decentralisation Inquiry. Through submissions and hearings, the RAI provided a synthesis of issues and policy approaches at the national level to enable a new national policy approach for regional development. The resulting report Regions at the Ready: Investing in Australia’s Future directly referenced the RAI submission, its City Deals work, and the CEO’s input at the hearings. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 12
The Public Investment in Economic Development in Regional Australia report supported the development of future government policy approaches in the grant programs that dominate traditional regional policy. The findings of this report directly contributed to the latest design of the Building Our Regions program in Queensland, with the new approach being rolled out to Queensland regions. 2018-2019: Let’s break the divide and start a nation-building conversation that ensures regional Australia is front and centre. This is not about us and them – this is about our nation – our MAKING REAL CHANGE Australia. LIZ RITCHIE, CEO, REGIONS RISING VICTORIA, 2019 The Intergovernmental Shared Inquiry Program yielded three significant research streams. The first was the Regions in Transition which looked at the effectiveness of transition packages, the use of procurement as a tool for economic development and collaborative approaches to funding regional economic development. The second was an inquiry into the Future of Regional Jobs. That comprehensive undertaking considered: Future work and regional workforce development; International migration and job creation; and Growth prospects for agribusiness, manufacturing, tourism and creative industries. The third part of the Shared Inquiry looked at Regional Towns and Cities, examining the national economic impacts of changed settlement patterns, and modelling likely population scenarios. The future population debate is arguably the most important public policy discussion underway in Australia right now. The public release of the report and concurrent briefings for policy makers informed the current national debate on decentralising population growth, making the economic case for examining at the state and Commonwealth level how planning, infrastructure and supporting policies can alter the balance of future growth between outer suburbs and connected regions in Australia’s major cities. Based on some of the important findings, the RAI released a National Population Plan for Australia. This was also the year that RAI launched the inaugural Regions Rising national events series creating a national platform for regional leaders to engage directly with key industry representatives, government, political leaders and the community sector on the most important opportunities and challenges facing regions. The Regions Rising series held a National Summit, Regional Policy Hack and Regional Policy Masterclass in Canberra as well as events in each of Australia’s states and the Northern Territory. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 13
The RAI also launched two new interactive online tools, the Jobs Vulnerability Data Tool which provides information on the proportion of jobs at low, moderate and high risk of vulnerability to automation, and the Regional Jobs Vacancy Map showing the number and type of jobs being advertised per region around Australia. This continues to be the most popular of the RAI’s online tools and is updated monthly to show where jobs are located across regional Australia and what they are. 2019-2020: National Awareness Campaign is creating a movement to appeal to everyday Australians living in our major cities to consider making a move to the regions. FROM RESEARCH TO ACTIVATION LIZ RITCHIE, CEO, NATIONAL CABINET, RURAL AND REGIONAL COMMITTEE DECEMBER, 2020 Each year, the RAI has continued to produce ground-breaking research and myth-busting reports on regional Australia and developed new initiatives. 2019-2020 was one of its busiest and most impactful periods, attracting significant media attention around the country. The 2019 Shared Inquiry conducted in-depth research into the Future of Regional Jobs, analysing the employment prospects in regional Australia of two important industries: tourism and health. The work profiled innovative practices in lifting the local workforce contribution to major projects in remote regions. The Inquiry also conducted research on the theme of Mid-Sized Towns, reflecting the predominance of such towns across regional Australia, their vital importance in regional economies, and their different historical and future trajectories. Covering the range of 182 towns and cities with 5,000 to 50,000 residents, this theme filled a gap between the RAI’s work in recent years on regional cities and small towns. The RAI continued its work on population. The report, The Big Movers, Understanding Population Mobility in Regional Australia unpacked Census data to examine mobility trends around the country; its findings have dispelled common myths about regional population decline and provided important insights into the mobility patterns of millennials. The RAI also launched the report Population Growth, Are We Ready? which analysed the economic consequences of alternative population scenarios that could alleviate Australia’s megacity future and supercharge regions. The analysis in the report raises serious questions about the type of future Australia will have if predicted population growth continues as projected in the outer suburbs of Sydney, Melbourne, Brisbane and Perth. It showed that many workers living in outer city suburbs could be financially better off if they moved to regional Australia. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 14
In conjunction with the reports, the RAI released an online interactive tool, MOVE. It combines average wages with average house prices in Local Government Areas (LGAs), allowing potential homeowners to find out which areas in Australia give them the best chance of paying off their mortgage faster. The reports, together with this unique tool, set the scene for the RAI’s National Awareness Campaign Move to More to promote the opportunities of living in regional Australia and help drive a population shift in coming decades. This work was supported and endorsed by the Federal Government and a growing number of businesses, local governments and community advocates through our new membership models. In 2020, the RAI began its journey to bring this campaign to life, with the instigation of the Regional Australia Council 2031 (RAC2031). The RAC2031 represents a new voice for regional Australia, bringing together some of the most influential corporate organisations in the country to support the development, investment and prosperity of regional Australia. The RAC2031 aims to build a powerful legacy by supporting the RAI to be the central policy voice for regional Australia, to ensure a paradigm shift which will help regions thrive for decades to come. REGIONAL AUSTRALIA COUNCIL (RAC) 2031 - MEMBERS A group of key regional stakeholders, the Regional Activators Alliance (RAA), was also formed by the RAI, to support the National Awareness Campaign alongside RAC2031. The Alliance provides critical intelligence to ensure that the campaign is effective and targeted. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 15
REGIONAL ACTIVATORS ALLIANCE (RAA) - MEMBERS The RAI also worked to strengthen its role in supporting regional migration. It moved from information gathering, through migration roundtables and consultations, to activation of its learnings and research. It launched the publication Steps to Settlement Success: A Toolkit for Rural and Regional Australia. Based on case studies from around Australia, the Toolkit was designed to be a practical resource to help regional communities successfully attract and retain migrants. The RAI took the Toolkit on a roadshow around regional Australia during the year, working with local councils and communities on population attraction. 2020 will always be remembered as a year that was dominated by the COVID-19 pandemic and the RAI was at the forefront of providing current advice and information on the effect of the pandemic on regional Australia. But the RAI also shone a light on the incredible opportunity that emerged to rebalance our nation’s priorities. The impact of COVID-19 changed the notion of how we worked in this country – enabling the population to stop, reflect and perhaps “rethink regional”. It presented a historic moment to move towards building a truly national workforce, where location was no longer a barrier. The RAI continued to advocate the benefits of a life in regional Australia and its work helped to convince more metropolitan Australians to move to, or connect with, the regions. Much of the RAI’s focus has always been on pushing the boundaries for regional 2021: Australia, testing and modelling to see what can be done better and identifying pathways for maximising potential. The RAI asks the hard questions and challenges TOWARD REGIONALISATION Australian leaders to make real change, change that benefits our regions. CHRISTIAN ZAHRA, INTERIM CHAIRMAN, RAI NATIONAL SUMMIT 2021 March 2021 saw the official launch of Move to More which is based on quantitative and qualitative research as to the motivations of metro-based Australians when considering the move to regional Australia. The RAI research, released in February 2021 post COVID-19, showed that one-in-five metro residents in Melbourne, Sydney, Brisbane and Perth, were considering a move to regional Australia. Half of that number wanted to make the move in the next 12 months. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 16
The multi-million-dollar campaign was launched at the RAI’s 2021 National Summit, Growing Regional Australia: Shaping the Good Life. The Summit is the flagship event in the RAI event series Regions Rising. This event links all levels of government, business and the community sector to ensure a collaborative and future-focused discussion that will help inform and engage our leaders as we move toward the regionalisation of Australia. The RAI’s work over the past decade has positioned the Institute as Australia’s leading organisation on regional issues. It is now time to use the past learnings to create real change, a societal shift in Australia that ends the traditional metro-centric narrative and positions regions in their rightful place in the Australian story. Regionalisation is more than an agenda on decentralisation; it’s an ambition to grow and ensures that regional businesses and communities more than just survive, they can thrive. Regionalisation will create a more equitable, balanced, attractive and prosperous future for all Australians, not just those who live outside the city limits. To lead the regionalisation of the nation, the RAI is launching a National Regionalisation Framework, that focuses on strengthening regional Australia for the benefit of the whole nation. Key partners in this work will be the RAC2031, which is growing and becoming an important voice in Australia, as well as the RAA, composed of regional stakeholders. It will undertake a deep dive into the regional policy landscape using RAI’s knowledge and the existing body of work from government and other relevant bodies to build the framework for decision-making and benchmarking. It will call for government, corporate Australia and regional voices to focus policy attention and to create real change for the benefit of our regions. Our work over the decade shows that regional Australia has boundless potential but that it is not always being realised. As more people choose to live and work in regional Australia, there will necessarily be a corresponding shift in the allocation of government resources and policy attention, giving regional Australia the tools that it needs to continue to grow. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 17
Regional Australia already underpins the Australian economy and its contribution to the economy will be strengthened as regions flourish. Increased movement to regional Australia will help address some of the current workforce challenges and will incentivise investment in infrastructure and services, such as housing, health care and education. Improving facilities and services will, in turn, lead to further interest in the opportunities in regional Australia, leading to a “virtuous circle” enriching the regions. In 2021, the RAI harnessed the need for many regional towns to strengthen and showcase their liveability, in order to have the services and lifestyle which will attract new residents. Its Liveability Toolkit is a practical resource for regional communities to best plan ways to improve liveability. The RAI is set to continue to broaden its scope and role as a thought-leader on regional issues, providing evidence-based policy recommendations to decision-makers. It will expand its work in bringing together key stakeholders for consultations and events, ensuring that a diversity of voices is being heard. It remains committed to ensuring that the national discourse amplifies regional issues and to shaping the narrative on regional Australia. LIVEABILITY TOOLKIT REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 18
REGIONALISATION – REBALANCING OUR NATION The RAI has now conducted ten years of prolific research, analysis and debate on a wide range of issues relevant to regional Australia. It has helped unlock growth potential, shifted the narrative, impacted policy to the benefit of regions and brought the conversation on regional Australia to the forefront of the national agenda. Difficult as it is to succinctly distil 10 years of policy recommendations, there are some clear overarching themes which have emerged from the RAI’s work. These are: 1. POPULATION 2. JOBS AND SKILLS 3. LIVEABILITY 4. LEADERSHIP 5. PRODUCTIVITY AND INNOVATION 6. SUSTAINABILITY AND RESILIENCE REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 19
REGIONALISATION – REBALANCING OUR NATION POPULATION Australians are already “voting with their feet” and are looking to alternate opportunities offered in regional cities and towns. This shift is due, in part, to the challenges facing capital cities in keeping pace with improved infrastructure, increased services, and equitable access to housing. The trend has been significantly boosted by the COVID-19 pandemic which, in some states, has prompted significant movement from capital cities but equally ensured that regional people also stayed in place. However, COVID mobility patterns aside, once vaccination rates rise the population settlement patterns will again be skewed towards the major cities. If we continue with the longer-term patterns of settlement, most of our future population will reside in our major capital cities, while regional areas will experience only modest levels of growth. In 2019, capital city growth accounted for 79% of Australia’s total population increase. The RAI’s population modelling shows that, by 2056, Sydney and Melbourne will approach global megacity status, with populations of 9.3 million and 10.2 million respectively. Brisbane and Perth are projected to grow to the scale of Sydney and Melbourne today. Most future population growth will be in the outer suburbs, whose populations in Sydney, Melbourne and Perth are expected to more than double. In Brisbane, the outer suburban population is expected to nearly triple. Commute distances in outer Sydney and Melbourne will increase to around 60% and close to 25% in Brisbane and Perth. Yet population growth is needed in regional Australia, bringing skills and filling workforce shortages. The RAI has highlighted the significance of international migration and that, in some cases, it is the major source of population growth. This important aspect to regional population growth needs to be further supported. The RAI recommends building on the work that has been done in a growing number of regional communities that have successfully attracted international migrants through the development of place-based attraction and retention strategies. To allow regions to grow and attract new residents, there needs to be a more equitable investment in their infrastructure and services to build appealing, adaptable and viable communities that people want to live in and contribute to in the long term. Such policies would be instrumental in the transformation of regional Australia. The RAI wants to change Australia’s current trajectory of packed mega-cities and actively work towards a more even population distribution. It continues its call for decision-makers to prioritise regional Australia and divert future growth to the regions. Equally, industry has a role to play in maximising opportunities for remote and flexible work, allowing more people to take advantage of the lifestyle opportunities in regional Australia. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 20
The RAI’s work in this area has led to the national awareness campaign, MovetoMore, in recognition that a more dispersed population will have multiple benefits. It will reduce pressure on cities, help bring workforce and skills to regional Australia and, by having more people accessing services such as schools, will increase funding allocations for those services in regional Australia. The National Regionalisation Framework will further build on the campaign and detail the actions that could be taken to achieve a population shift. JOBS AND SKILLS The RAI’s examination of job vacancies across Australia consistently shows that, every month, there are thousands of jobs in regional Australia and that the figures are growing at a faster rate than in metropolitan areas. The most in-demand skills are well paid, being mid- to high-skilled professionals and mid- to high-skilled trades. However, the similarity in the mix of job vacancies across regions means that suitable workers have the option of moving almost anywhere in Australia. This means that regions are competing with other regions to attract workers with similar skills and that workers have the ability to choose places with the greatest appeal. Normally, in a functioning labour market, population growth would follow these high labour demand growth rates and unemployment in a region should fall. However, current regional vacancy trends show that the regions with the highest vacancy growth rates usually have the lowest population growth rates, highlighting the difficulties many inland regions are having in attracting and retaining the workers needed. Australia needs people in overcrowded cities to see the opportunities in regional Australia and make the move. This includes both Australian-born residents and international migrants as outlined in the Population section above. However, Australian communities also need to “grow from within”. Rebuilding regional learning options in both the VET (trades) and tertiary sectors is critical to the growth of regional Australia. Better regional skilling pathways would, over time, enable local residents to build the skills they need to enter the workforce and continue to develop their skills through their working lives. It would position them for better jobs, in the places they already know. Moving up the qualification ladder will bring an increase in real wages; an increase that will be secure for the long term. Improving access to post-school training for regional residents must be an important priority for regional development. Aligning skill supply with skill demand requires proactive and innovative education and training practices that involve a wide range of participants such as employers, young people, educators, trainers, older job seekers and even families and communities more broadly. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 21
It also requires that regional development actors and agencies assist with regeneration and job stimulus. This more inclusive, systemic approach to targeted skills development needs to monitor and forecast trends within the labour market (particularly the need for replacement workers), the education and training market as well as how skills are being used and sourced. Addressing the chronic workforce shortages and ensuring skills for the future are important elements of the National Regionalisation Framework. LIVEABILITY Australian residents are demonstrating a willingness to live in the diverse regions that regional Australia has to offer. Regional populations are growing based on their existing services, accessibility and infrastructure, yet in order for regions to continue to grow and attract new residents, there needs to be a more equitable investment in their infrastructure and services to build appealing, adaptable and viable communities that people want to live in and contribute to in the long term. Regional leaders are calling for regional policy development to be more than the implementation of large infrastructure projects such as road and rail. Instead, leaders want education and skills development of regional residents to be a priority. The real driver of growth in regions in the 21st Century is people, their skills and how they work together. This means that ‘soft infrastructure’ like education, investing in skills to use digital and connective technology, improving a community’s capacity to collaborate and to deliver services is just as important as bricks and mortar. While people choose to move to regional areas for economic and employment-related reasons, other factors also influence these mobility decisions such as the ‘liveability’ of the location. Quality child-care, employment opportunities for spouses, accessible health care and education for children are all central to ensuring families and young people stay or move to the regions. The RAI continues to call for critical infrastructure to be in place in regions and to expand access to services such as health and education. Housing is a challenge in many, if not most, parts of regional Australia and real change is needed to address this issue. LEADERSHIP The vastness and diversity of regional Australia necessitate place-based approaches to planning and decision-making. There is no “one-size-fits-all” approach to regional development for Australia and any attempts to generalise about the needs of regional Australia are bound to fail. Rather, targeted initiatives that take into account the actual needs and contexts at a local level are needed. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 22
To prosper into the future we need to shift our thinking on what matters to regions and empower them to make decisions and respond to change. The RAI has long called for a changed national approach to regional development. Central to this is the idea that local leaders are empowered to make decisions on priorities, which are then endorsed and resourced at the federal level. Regions are best placed to understand and secure their own interests. They are their own greatest vehicle of change and future well-being. At the same time, our national leaders need to ensure that the interests and needs of regional Australia are not an afterthought, or the domain of one party. Regional Australia is the heart of Australia is so many ways, yet much policy attention remains metro-centric. Further, allowing flexibility in the way that policies are delivered would bring about better results across diverse regional and remote areas of the country. Flexible methods require a rebalancing away from the current emphasis on programs that seek to maximise economies of scale, towards recognising the importance in smaller regional communities of the value of economies of scope. Economies of scope are found when different services are bundled together for more effective local impact. This reflects a shift in focus away from the blanket polices that often seek to ease the burden of administrative functions, towards the place itself, and towards the intended outcomes of the intervention. PRODUCTIVITY AND INNOVATION Regional Australia is central to the next phase of the Australian economic story. It already plays a big role in national productivity, leading in some sectors, yet not reaching its potential in others. National productivity growth will be enhanced, and lopsided growth avoided, if economic policies can leverage the sectors where regional Australia is leading, while simultaneously addressing the sectors being held back. Regional economies have extraordinary growth potential and have demonstrated their resilience through disaster and external shocks. Promoting growth in all regions is crucial to optimising growth in the national economy and opportunity for all Australians. It is clear that regional Australia’s economy is changing. The concentration of growth in mining regions which was driven by unprecedented corporate investment is giving way to a more diverse picture. Key industries such as agriculture, gas and tourism are predicted to underpin Australia’s future prosperity and are driven by economic activity in the regions. Unlike the mining boom where sources of growth were highly concentrated in particular regions, the next phase of opportunities for growth are spread more widely. Australia is relying on regional Australia to be up for this challenge and to take the lead in realising Australia’s future economic opportunities. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 23
To do this, regions must be equipped with the knowledge and tools to understand their unique risks and opportunities and lead their own development. Understanding the range of potential futures that a region’s size, industry and proximity can provide, as well as insight into community aspirations and capacity, will allow regional leaders to determine the most effective ways to ensure that their region grows and prospers. The RAI’s research shows that there are substantial productivity gains to be had in regional cities which have agglomeration opportunities yet to be tapped. But innovation is also needed, to expand regional Australia’s economic base and create new jobs in new industries, especially as increasing capital intensity in primary and extractive industries like agriculture, forestry fishing and mining have seen steady reductions in the number of workers needed to produce a unit of output. More can be done to support regions to maximise their economic potential for the benefit of the nation as a whole and, through the National Regionalisation Framework, the RAI will continue to take a leading role in drawing attention to the significant opportunities for our regions. SUSTAINABILITY AND RESILIENCE In these times of significant external and internal shocks, we need to future-proof regional Australia, ensuring that growth and development are sustainable. This involves support for transitioning industries as reliance on fossil fuel decreases as well as taking action to minimise the impacts of climate change. Regional Australia regularly faces a variety of natural disasters, most frequently bushfire, drought and flood. Recovering from such events takes time and resources. The RAI’s research has highlighted the strong sense of community in rural and regional Australia and the commitment of communities to bounce back from disasters. Within a resilience framework that emphasises positive adaptation in the face of disaster impacts, “bouncing back” is not enough. Adapting to the new normal needs to become an integral aspect of recovery planning. This will make regional communities stronger and better prepared for future shocks. It also needs to be recognised that the recovery process is more than simply reconstruction or rebuilding. Recovery is a long-term undertaking, comprising overlapping stages in a process of renewal and adaptation to a new equilibrium. The importance of engaging local government, community leadership and effective communication has been showcased by the RAI in case studies. The recovery process must link the community with local authorities, other elected representatives and community leaders to assist with the dissemination of information to the public. Local authorities which do not effectively engage with and involve the local community and community organisations not only risk their alienation from the process but also the loss of local knowledge, innovation, enthusiasm and the determination of those local groups. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 24
Business resilience is sometimes overlooked or not as well supported as community resilience, yet it is equally vital. Particularly in rural and regional areas, businesses form the central element of a community, providing jobs, income and underpinning economic vitality. Without a strong and diverse economy, a disaster-affected community cannot recover, and beyond that positively adapt, to the impacts of a disaster. Businesses affected by disasters suffer two compounding impacts – there is the initial loss of cash flow due to business interruption which is compounded by costs to repair damages. In addition to businesses directly harmed by the disaster, businesses in the surrounding regions reported negative impacts on their performance due to broader negative flow-on effects. The RAI has found that pre-existing conditions in a community combined with the disaster impacts had a significant bearing on the trajectory, challenges and support needs in the recovery and adaptation process. Once again, there is no “one size fits all” when it comes to regional Australia. Recovery strategies need to be tailored to the context-specific nature of the community and the disaster impacts. Regional Australia needs to be better equipped for external shocks as it continues to bear the brunt of natural disasters. This also includes supporting measures to tackle climate change and improve the sustainability of regional industries. REGIONAL AUSTRALIA INSTITUTE A DECADE OF ACHIEVEMENT 25
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