SIGNIFICANT moves are under way to grow regional towns and cities, not just to meet the ever-increasing need to ease congestion in Sydney, but to boost national economic performance and protect the social wellbeing of an ageing population.
With a senate inquiry into the future role of regional capitals throughout Australia due to hand down a report by December 1, economic development groups, local councils and big regional businesses have stepped up the call for strategies and resources to be directed to boosting such cities.
The release this month of the State of Australian Cities 2014-15 report, which backs up the idea that regional cities have a big role to play in easing the squeeze on the likes of Sydney, Melbourne, Brisbane and Canberra, has added fuel to their arguments.
Investing in regional city infrastructure and telecommunication, measures to make inland and coastal cities more liveable and funding to address lower education levels in regional areas are some of the areas that need attention, according to lobby groups.
Regional Capitals Australia (RCA) says national leaders must take a good look at the potential that sits outside the urban growth boundaries of capital cities and commit to sustainably growing regional cities.
Research organisation the Regional Australia Institute (RAI) says regional capitals are at the forefront of Australia's capacity to compete in key industries such as manufacturing and services as well as providing economic diversity and resilience, something that is essential in uncertain times.
However, they are underperforming when measured against their potential, RAI says.
Chief executive officer Jack Archer said the economic activity per person on average across regional cities was $8000 less per annum than in major cities.
"There isn't one reason for that over what are very diverse cities," he said.
"In coastal cities, for example, there is often an under-utilisation of the workforce while in cities like Toowoomba in South East Queensland there is untapped potential to grow the service base."
A key constraint on the growth of regional capitals was the lack of an urban development policy specific to second tier cities that addressed factors like human capital, technology and innovation constraints, he said.
Central NSW Councils (Centroc) chairman Bill West said many of those constaints were a symptom of a lack of attention to rural growth, rather than the cause of it.
Beef processor Teys Australia, which has more than 4500 full time employees, is the largest employer in many of the regional locations it operates, believes without significant reform to the regulatory environment more regional food manufacturers will close down, with dire consequences.
General manager corporate services Tom Maguire said tax reform and improving the flexibility and cost of Australian labour were two key areas that needed addressing.
In its submission to the senate inquiry, Teys identified policies that allowed competitive access to energy, recognising and supporting the role of key regional employers in powering the Australian economy and providing a regulator regime comparable to global trading partners as important steps forward.
Big benefits at Taree
DOING business in a regional city makes sense Agrifarm, the only Australian manufacturer of heavy duty cotton mulchers.
Owner Brett Trengove (pictured) completed his fitter and machinery apprenticeship in Sydney and with his father and another colleague set up Agrifarm on the North Coast at Taree in the mid 1980s.
"We wanted somewhere central to the markets we supplied, with good access to the materials we needed and that was basically a good place to live," he said.
In 2005, as some partners retired, the business was sold to a Sydney business consortium but last year Mr Trengove, who had stayed on as general manager, purchased it outright.
Running against the trend of manufacturing going overseas, the move has made safe seven permanent jobs plus future apprenticeships and work for local tradespeople.
With 90 per cent of Agrifarm's customers regional-based, Mr Trengove said operating from a location outside metropolis was important to building relationships.
But there were other advantages.
"Rent on our 600 square metre factory is probably half what we'd pay in Sydney, we can get deliveries of steel three times a week which is as good as we'd get in a capital city and staff are loyal because they have roots here," Mr Trengove said.
