THE government’s own research and advisory body has warned forcing government departments to relocate to regional areas can have “unintended consequences”.
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A recent report by the Productivity Commission’s found it is possible for public sector agencies to operate effectively in regional centres, but it said decentralising government bodies should not be used as a form of “regional assistance” to boost a town’s jobs or stimulate its local economy.
The Productivity Commission pointed to a report which found relocation initiatives “are typically too small in scale to have any discernible effect on an individual town”.
“The jobs relocated have tended to amount to less than 0.1 per cent of the relevant regional centre’s labour force,” the report stated.
However, Tamworth councillor Russell Webb disagreed and said the spin-off that comes from decentralisation had to be considered
“There would be office space leased, which would have to be serviced and cleaned, and consumables that any office would use,” Cr Webb said.
“In many cases with decentralisation, a number of the positions moved are on the higher end of the income scale. Any community would welcome new jobs and in particular ones with a reasonable salary.”
Cr Webb is a passionate advocate for decentralisation – at his request, Tamworth Regional Council sent a letter to Deputy Prime Minister Barnaby Joyce, asking him to support a senate inquiry investigating decentralisation to visit Tamworth.
“Particularly when it’s a body dealing with rural development or activities,” Cr Webb said.
“Those are working in a decentralised office gain a better understanding of the real issues faced in the regions than those in a metro office. If you live in country, you’re part of the country and you’re more likely to have a feel for it.”
The Productivity Commission said the relocation of the Australian Pesticides and Veterinary Medicines Authority from Canberra to Armidale would “involve significant risks”.
“An independent analysis of the relocation found that it would impose a net economic cost of $23m, which includes the costs and benefits to all stakeholders, not only to the Australian Government,” the report stated.
The Leader contact Agricultural Minister Barnaby Joyce for a response to the Productivity Commission’s findings.