Data gaps, time lags and regions in transition…
The Productivity Commission has recently commenced a 12 month study delving into transitioning regional economies. The study will examine the regional geography of Australia’s economic transition since the mining investment boom, and identify which regions may face challenges in transitioning to a more sustainable economic base. It also considers what scenarios might trigger a transformation, and the factors that influence how easily they will be able to adapt to economic change in the future.
A draft report is due in April – suggesting it might be expected to provide some last-minute input into the 2017-18 Federal Budget.
In the last week, the RAI has put forward a submission to the Productivity Commission outlining the following key points:
- Data gaps and time lags are inhibiting the identification of regions in transition;
- Successful transitions can have several paths so a single metric may not work;
- Mining labour movements have been much larger than construction labour movements;
- The mining industry is highly mobile, spreading the geographic impact of boom bust cycles. Construction is less so;
- The split between mining labour source regions and mining labour host regions has broadened, and both are subject to transitional forces, requiring appropriate policy and program responses to facilitate transition;
- Mining industry labour mobility needs to be considered in context with broader internal migration patterns in Australia and non-work drivers of worker relocations to ensure effective transitions; and
- Endowments of non-economic factors (such as regional leadership, networks and connections) have a significant impact on regional transitions.
Click here to see our recommendations and read the full submission.