Escaping the Trap
Submission to the Parliamentary Inquiry
into the Extent and Nature of Disadvantage
and Inequity in Rural and Regional
Victoria
Cr Chris Meddows-Taylor, Mayor, Central Goldfields Shire
Mr Mark Johnston, CEO, Central Goldfields Shire Council
May, 2010.
The Challenge of Sustainable Prosperity
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Equality of regional incomes has drastically worsened since 1998
Since 1998, the 20 per cent of Australia's population living in the regions
with the highest average income, received 4.9 times the income growth of
the 20 per cent living in the poorest regions
The "net flow of funds" which is a measure of the consumption capacity of
regions has also shown a considerable deterioration in regional equality
The regions covering 20 per cent of the Australian population with the
highest values of housing now own 34.8 per cent of the entire value of
housing in Australia. These regions have claimed over 41 per cent of the
increases since 1996
Source: ALGA- State of the Regions Report 2003
The rich are getting richer and the poor, poorer
The Central Goldfields Shire challenge--
Social Distress
Economic
Disadvantage
Significant
Health
Problems
Educational
UnderAchievement
Overwhelming disadvantage -a barrier to prosperity and
sustainability
SEIFA index of disadvantage
Local Government Areas in Regional Victoria
SEIFA index of disadvantage 2006 Central Goldfields 907.1 i.e. 79/79 –the highest
level of disadvantage of Victorian municipalities
VISION - Central Goldfields Shire Council"To add to our proud heritage a prosperous and sustainable future for all"
-which embodies-
Social Distress
Economic
Disadvantage
Significant
Health
Problems
Broad Environmentally
Sustainable Prosperity
Healthy, Strong &
Inclusive Community
Adult/Mature-Aged
Skills/Training
Long term place
based solutions*
Young People as
Winners in Learning
“Go-for-Gold” –
Council’s
strategy to close
the gap
Childhood Health
Development & Education
A healthy, well educated, inclusive, strong and productive community
that is active, creative, innovative and environmentally sustainable.
Educational
UnderAchievement
Current reality
Overwhelming disadvantage a barrier to prosperity and sustainability
*Generational change and sustainable community development
– for at least 8 yrs
We will need to continue to focus on the early
years---
Source: Centre for
Community and Child
Health
“The most economically efficient way to remediate the disadvantage
caused by adverse family environments is to invest in children when
they are young". (Heckman, 2000)
State Government partnerships have been key
to helping us respond to disadvantage -
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RDV programs through “Moving Forward” statement
DPCD support especially through CSF funding
Other programs eg Heritage Victoria, Recreation grants
Best Start partnership to tackle early years challenges
Maryborough Neighbourhood Renewal
Regional development opportunities (Central Highlands
and Loddon)
“Gift” of the former Maryborough Technical College
Return of the passenger train service to Maryborough!
But the challenge of disadvantage will continue
the need to find new solutions
CHALLENGES
Economy
Flat manufacturing
and agriculture
Community
Social isolation
Government
Partnership
“One size fits all”
Government
Funding
Finding the
co-contribution
Jobs
Regions
No disposable
Income
Creating
opportunity
FUTURE
Diversified “new”
economy
Social inclusion
Long term place based
solutions
Targeted support for
disadvantaged
locations
Sustainable wealth creation
Differentiation –Goldfields
National Heritage Region
We feel place based solutions are key---
• Become modern
facilitators of
sustainable regional
economic
development
• Develop new public
- private
partnerships in
infrastructure and
community service
provision
• Build learning and
knowledge based
communities.
• Move well beyond
their traditional roles
*Source: ALGA- State of
the Regions Report 2003
Sustainable Solutions
Results
Council
Building change
capability
accelerates gap
closure
Priority
Actions to
Tackle
Disadvantag
e
State and
Federal
Governments
Tackling Disadvantage
Challenge to
Local
Government*
Place based
solutions and
building change
capability
Utilise Government
programs on offer
Build on Success
Time
And in the next stage of State
Government partnership-- RDV – funding and support will continue to be key-more support needed in “new
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economy” transition and greater flexibility in Small Towns Development Fund
DPCD- more emphasis needed on integrated place based solutions and support from the
Community Renewal Program for disadvantaged communities
Heritage Victoria – disadvantaged “heritage” locations need special funding consideration
Neighbourhood Renewal –continues to be an example of long term place based solutions.
Local Government should actively be lead agency –but needed without hidden transfer of
costs
Best Start –longer term commitment required and funding to address key issues of
disadvantage in the early years –added focus needed on early years literacy
Cost Shifting – hurts LGA’s who can least afford it –the issue of libraries is a key issue –we
need added library support to support the early years but can’t afford it
Small Towns and Villages – a source of regional competitive advantage but need the
capacity to accommodate growth eg sewerage to fully capitlise of existing infrastructure
investment
Population Growth Corridors – within Regional Plans utilise the investment in returned
passenger train service to develop the Ballarat /Maryborough growth corridor and attract
new investment, liveability and growth
The financial sustainability of small councils will
need to be tackled --
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Councils are playing an increasing role in delivery of
community infrastructure and services
Many rural Councils including Central Goldfields are financially
vulnerable and challenged –and unable to generate their own
income/ rates base
Internal Local Government reform is focusing on process and
compliance not the need for systemic reform of funding
Central Goldfields is leading Sector solutions for this problem
focusing on the concept of a Sustainability Entitlement in
Direct (Grants Commission) Grants.