The Federal Government must soon deal with the other side of the Canberra equation. It has axed a huge number of public service jobs. Many will argue about what size of cut was appropriate, but it was apparent that the public sector had to be trimmed to balance the budget and to engender efficiency. The other side of the equation is to help replace those jobs with private-sector jobs. The Federal Government cannot wash its hands of Canberra and the region around it. It has not just inherited a lop-sided budget for Labor, but has inherited a range of decisions about Canberra that go back to the 1890s by governments of all persuasions, notable among them that of Sir Robert Menzies.
The social and economic health of this city and the region around it are a Federal Government responsibility and it cannot walk away from it. The theory behind the Government’s policies is that a smaller public sector and lower public spending within a balanced Budget will result in a more vibrant, job-providing private sector. The people of Canberra hope to see some evidence of that.
This week 27 Canberra and regional businesspeople, politicians and mayors met the Minister for Regional Development, John Sharp. It was a sign that the private sector is serious about at least laying the infra-structure for a stronger private sector in the region. Hitherto, too much private sector importance has been placed on tourism and construction. Tourism is important and has its place, but it is a volatile industry. It can wax and wane according to influences outside local control. The experience of Cairns is salient. It has been subjected to the ebb and flow of Japanese holiday tastes and an unpredicted airline strike, for example. The construction industry is also unreliable. The city cannot grow indefinitely. Besides construction of offices for a shrinking public service and construction of houses for a shrinking number of public servants and those who support them is a poor base for a strong private sector.
It was therefore pleasing to see that the delegation of 27 stretching its horizons a little. It nominated six major projects. All but the National Museum were projects that could build upon Canberra’s existing base and the region’s excellent agricultural resource to make the region more attractive for export and high-value industry. It refrained from chanting the tourism-housing and offices mantra.
The delegation correctly identified the main drawbacks from exploiting the regions highly educated workforce and medical and educational excellence … first-rate transport links.
The delegation argued that the main stumbling block was not so much the absence of private-sector funds to do the job, but government red tape. If this is the case, it would be an ideal opportunity for the federal and NSW Governments to put their mouth where the private sector’s money is.
As Sydney becomes more crowded and therefore more inefficient and more difficult to do business in, Canberra and region have a lot to offer. The clean environment, good city infrastructure, highly educated workforce, low crime rate, cheap land, water and power should make it an ideal place for sunrise industry. The main drawback is an international air connection, high-speed rail and some poor road connections. The Federal Government would do well to look at ensuring these go ahead. In the long run the bill cold be far lower than support a demoralised city with a high unemployment rate.