Regional Australia InstituteRegional Australia Institute
  • About us
    • What is Regional Australia?
    • Our Staff
    • Careers
    • Board
    • Research Advisory Committee
    • Research Fellows
    • Corporate
  • News & Media
    • Media Releases
    • Move to More – RAI’s National Awareness Campaign
    • Stories of people who have #madethemove
    • Blogs
    • Regional Jobs Update
    • Newsletters
    • Editorials
  • Research & Policy
    • What COVID-19 means for regions
    • Current Project Agenda
    • Strengthening Liveability: a toolkit for rural and regional communities looking to grow
    • Migration Work
    • Policy
    • Publications Library
    • Regional Jobs Vacancy Map
    • Job Vulnerability Data Tool
    • Great Small Cities Data Tool
    • MOVE Tool
    • [In]Sight
  • Events & Programs
    • Regions Rising
    • Regional Australia Council 2031
    • Regional Activators Alliance
    • Lightbulb Moments
    • Pathfinder Initiative
    • Innovate with nbn Grants Program
  • Regional Australia Hub
  • Our Partners
  • Contact
  • Subscribe for updates

Ending the metropolitan monopoly on public power

Ending the metropolitan monopoly on public power

Blogs, Media decentralisation, Inquiry Submission, Policy May 24 2017

The image of the typical Public Servant is distinctly urban. This is hardly a surprise with 83 per cent of Australian Public Service (APS) jobs currently located in the big cities. APS jobs based elsewhere are generally lower paid with little influence over government policies impacting regional Australians. It’s time for the metropolitan monopoly on APS jobs and public power to end.

For the last few years, the growth in our inner cities has led to Australia’s leaders spending big on our largest cities. For Commonwealth Public Servants, this means of the estimated $16.7 billion spent annually in Public Sector remuneration, only 15 per cent or $2.5 billion was spent outside Canberra and the big five cities. On a per capita basis, the APS spends four times more on wages in metropolitan areas than in regions ($1001 vs $281). For senior roles, the spend is 12 times higher per person ($436 vs $36) due to their concentration in Canberra. This gap is also growing as rates of urban public sector employment growth outpace new jobs in the bush.

But where is the evidence that just doubling down on big city spending is the best strategy for our future?

The 2017 report on global housing affordability by US-based consultancy Demographia ranks Sydney second worst in the world. The median house price in Sydney is now $1.077 million with the median household income sitting at a paltry $88,000.

Concentrating public service employment in inner cities makes this problem worse and means that well paid and interesting careers in the public service are only accessible for some Australians.

In France, Finland, Ireland and the UK, the decentralisation of the Public Service has been used to create jobs and encourage economic development in provincial regions while simultaneously reducing inflationary pressures in the property and labour markets of capital cities. There is no reason to believe the same could not be achieved here in Australia.

The Regional Australia Institute (RAI) estimates that for every additional 100,000 Australians who choose to live in small cities rather than capital cities, around $42 billion dollars will be released into the economy over 30 years through reduced interest payments on mortgages alone. While it is true a balance needs to be struck between regional and metropolitan growth, the relocation of some APS departments to regional centres could help regain some equilibrium.

Some examples of where decentralisation has already worked in Australia include the regional centres of Geelong, Ballarat, Newcastle and Gosford, which have each benefited from the relocation of state and federal government departments.

Gosford for example has seen several sizeable government service relocations – starting with the relocation of 480 staff from what was the WorkCover Authority NSW (now Safe Work NSW) in 2002. This was the beginning of a growing specialisation in insurance and legal services in Gosford. There are now over 620 staff in a building housing not only Safe Work NSW but also the State Insurance Regulatory Authority, Insurance and Care NSW, and Legal Aid NSW.  

The NSW Central Coast has since seen a lower unemployment rate as a result of the relocation of government departments. Moreover, the lifestyle offered by living in a regional centre in addition to the lower-cost of housing has led to a large number of commuters living in Gosford but working in Sydney.

However, despite the benefits to regional centres from the relocation of some government departments, there are significant risks that should be considered before rushing headfirst into a one-size-fits-all policy position on decentralisation.

The costs of change and disruption to public services occur in the first few years but the benefits take longer. If we make a change we need to stick to it. A ten year, bipartisan strategy is needed to make this work.

Relocation is also not always an effective response to economic problems in regional Australia. Relocation can alleviate local economic weakness in the short term, if the decision is reversed in the future it leaves regional centres high and dry with a gaping hole in the housing and labour markets.

If the Government is going to go ahead with a wider relocation of the APS, it need to show caution about using the relocations to respond to economic problems in regions. Instead, relocation strategy should seek to put agency functions in regions with complementary industries and workforces to assist in achieving scale and a diverse set of career options locally.

The other priority must be to bring decision making closer to the people affected. The proposal to move a substantial part of the indigenous administration to central Australia is a much needed example of this. It’s also an area where a centralised public service has failed to make progress on regional issues.

Whatever path the Government takes, it needs to be looking forward to an Australia where regional Australia is considered an equal to our big cities as a driver of our national economy. Our national leaders should reject this false choice of city over country and see our regions as equal partners in our housing and labour markets.

Click here to read the Regional Australia Institute’s Inquiry into the operation, effectiveness, and consequences of the Public Governance, Performance and Accountability (Location of Corporate Commonwealth Entities) Order 2016 submission

Share this article:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to email this to a friend (Opens in new window)
Want to leave a comment?
Australian real incomes in decline but many regions doing better than expected Defence and Regional Communities: Submission

Related Posts

Just what the doctor ordered

#MadeTheMove, Blogs

We’ve Summited!

Blogs, Event

Momentum gathers in regional labour markets

Blogs

Regional Australia InstituteRegional Australia Institute
p 02 6260 3733
e info[at]regionalaustralia.org.au
Privacy Policy | Terms of use
© 2017 Regional Australia Institute
ABN 65 152 955 667
  • Subscribe for updates

HOME

ABOUT US
What is Regional Australia
Staff
Corporate
Careers

Work with us

Contact us

Tools and products
[In]Sight
Great Small Cities Data Tool
Pathfinder Initiative
Regional Online Heroes
Lightbulb Moments

Our work
Current Project Agenda
Policy
Blog
Publications Library

Media room
Media release
Media coverage
Events
Newsletters
XML Site Map | Website built by OPF Consulting
About Andrew McConville

Andrew McConville is the Chief Executive Officer of the Australian Petroleum Production & Exploration Association (APPEA), a position he has occupied since April 2019.

As Chief Executive, Andrew is responsible for leading the Association and its members to be the effective voice the Australian oil and gas industry, building community trust and support, driving advocacy and engagement, developing the industry’s key policy positions and executing a strategy for growth of the Association.

Andrew is an advocacy and corporate affairs professional with more than 25 years’ experience across the oil and gas, agribusiness, banking and finance, FMCG and government sectors. 

Andrew holds a first class honours degree in Agricultural Economics from the University of New England, a Master of Science in Agricultural Economics from Oxford University and is a Member of the Australian Institute of Company Directors.

About Paul Cronin

Paul Cronin is the Head of Corporate Affairs at Aurizon. Aurizon is Australia’s largest rail freight operator and a top 100 ASX company. Each year the company transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers and industry with international and domestic markets. Approximately 80% of Aurizon employees live and work in regional communities.

In his role Paul is responsible for Organisational Communications, Media, Stakeholder Relations, Brand and Sponsorships.

About Robert Musgrove

Since joining Bendigo and Adelaide Bank in 1987, Robert has held a wide and varied range of positions across the Group, from Customer Service Officer to playing a pivotal role in the development and expansion of the Community Bank® model. Robert is currently General Manager Corporate and Public Affairs, with responsibility for shaping and maximising the Bank’s position through external communications and championing its point of difference to all stakeholder groups. Robert and his team also have responsibility for Government and industry consultation, as well as the Bank’s early work in climate change action and E.S.G. reporting (environment, social, governance).

From 2006 Robert’s roles have included responsibility for the Bank’s key innovative partnerships, as Head of Group Strategy, and Executive Engagement Innovation, before leading the creation of the Corporate & Public Affairs division in 2018.

Robert is a director of the Bendigo Art Gallery, a director of Community Sector Banking, and a member of the Victorian Government’s Regional Partnerships group representing the Loddon Campaspe region.

About Grant Cairns

Grant’s team is responsible for serving and meeting the financial services needs of our rural commercial and agribusiness customers in over 70 locations across regional Australia.

Grant joined the Commonwealth Bank in 2005 and has broad experience across the Business and Private Banking (BPB) division. His leadership roles include heading up the Client Acquisition, Transaction Banking, Asset Finance and Industry Specialists teams. He has also held executive roles managing the Bank's Commercial Lending and Asset Finance products and portfolio.

Prior to joining the Commonwealth Bank, Grant worked as a General Manager within the McCarrolls Automotive Group. He started his career as an accountant at KPMG.

Grant has completed Australia's flagship Asia Leadership Program and holds a Bachelor of Commerce, Accounting and Finance as well as a Master of Applied Finance. He is also a Chartered Accountant.

Outside of work, Grant enjoys spending time with his young family, playing golf and reading.

About Eacham Curry

Based in Sydney, Eacham Curry is the Director of Government and Corporate Affairs for Expedia Group in Australia/New Zealand, spearheading governmental affairs and public policy strategy on behalf of Expedia Group’s ANZ portfolio of online travel brands such as Expedia, Wotif, Stayz and Egencia.

A champion of collaboration, Eacham forges close working relationships with government, regulatory bodies, industry, community and media stakeholders, and represents Expedia Group on key industry associations. As such, his voice helps shape the debate surrounding the travel, tech and e-commerce opportunities and landscape in ANZ. He is regularly spokesperson on public policy matters impacting Expedia Group’s business in ANZ.
• In 2020, he joined Australia Regional Institute’s (RAI) Council / Board
• Also in 2020, he was elected as the Foreign Company Representative Director to the Japan Association of Vacation Rentals (JAVR)

Eacham has extensive past experience in political and economic leadership a roles ANZ and in Asia. Prior to joining Expedia Group, Eacham was the Managing Director of Barton Deakin Government Relations in Western Australia, having established that operation in 2013. He joined Barton Deakin Government Relations after serving as a Chief of Staff across several portfolios, including Transport, Commerce, Finance and Small Business, in the Western Australian Barnett Government from 2008 to 2013.
Prior to relocating to Western Australia, Eacham held a variety of Federal government relations and political staffing roles for many years, and was a chief of staff and senior adviser to ministers in the Howard Federal Government across the Health and Ageing, Defence, Veterans’ Affairs and Family and Community Services portfolios. A veteran of 22 political campaigns he has also twice been a delegate for the internationally recognised Australian Political Exchange Council on delegations to China (2004) and New Zealand (2008).

About Robert Poole

Robert joined KPMG in February 2017 and is National Lead Partner – Food & Agribusiness. He works across the agri-business and food supply chain to help businesses build profit and growth; solve complex problems and harness new ideas. Robert has a team of food and agri-business specialists who work on projects across management consulting, risk, deals advisory support and enterprise.
He is also leader of the Operations Advisory team leader in Melbourne and is responsible for the day-to-day performance of a team of 110 people - working across multiple disciplines including financial services, supply chain, procurement and defence. He has successfully built a strong food and agri-business practice from scratch and placed KPMG as the number one professional services firm in the Australian food and agri-business sector.

About Gavin Williams

Gavin Williams is Chief Development Officer, Regional & Remote at NBN Co.

Mr Williams was appointed to the Chief Development Officer Regional & Remote in October 2019, bringing more than five years’ experience at NBN Co and 25 years within the telecommunication industry across Australia.

He has held leadership roles that have spanned engineering, product management, marketing and strategy disciplines across consumer, business and wholesale markets.

Prior to joining NBN Co, Gavin held positions in Optus, Telstra and was principal of an independent consultancy. He was a Board Director of Southern Cross Cable.

Mr Williams holds a Bachelor of Engineering degree (Hons) from the University of Melbourne and a Master of Business Administration from Macquarie University.

About Mark Ashburn

Mark leads stakeholder engagement for Prime Super. We have a national team of 20 (mostly regionally based) professionals who assist and inform employers and individuals on superannuation matters.

Prime Super has been a partner to regional Australians for more than 20 years. We are a high performing independent super fund owned by our nearly 130,000 members. The fund is open to all and our mission is to ensure every member has the opportunity to enjoy the best financial retirement outcome they can expect from their lifetime of work.

About Ben Gursansky

Ben Gursansky joined Telstra in January 2019 as the Head of Rural and Regional Affairs.

Prior to joining Telstra, across 20 years Ben has held a number of senior policy and management positions within the agriculture sector and Government. This included working with Saputo Dairy Australia, Australian dairy processor Murray Goulbourn Co-operative Ltd, the SA Farmers Federation Grains Council, Australian Pork Limited and in management consultancy. Ben was also a policy adviser to the former Federal Minister for Regional Development, the Hon Simon Crean.

Ben holds a Bachelor of Applied Science (Agriculture) with Honours from the University of Adelaide, a Doctor of Philosophy (PhD) from the University of New England, and a Master in Business Administration (MBA) from the Melbourne Business School.

About Graeme Wedderburn

Graeme has more than 30 years’ experience working in business and government at the highest levels. Before joining TransGrid in November 2018, Graeme’s career included Director of Specialised Capital Group, Westpac’s investment banking arm, General Manager, Government and Corporate Affairs with Origin Energy and consulting for business and governments in Australia and Asia with a range of firms including KPMG. In government, Graeme served in a number of roles including senior adviser to Australia’s Minister for Foreign Affairs and as Chief of Staff for the longest continuously serving NSW Premier.

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.