The Enterprise Zones report presents options for Regional Development

Regional development policy is back in vogue, and not just the usual rhetoric.

In April a landmark report published by an unlikely alliance, the Institute of Chartered Accountants in Australia and the Local Government and Shires Association of NSW, is a breath of fresh air in a debate raging for a long time in this country – how to create jobs and prosperity in regional Australia.

This report, entitled ‘Enterprise Zones’, provides some timely answers to these crucial questions.

At this time last year I argued for the establishment of Free Trade Zones (FTZs) in Australia in the Illawarra Mercury editorial pages after reading some captivating work undertaken by the Hunter region’s Beyond 2000 Committee.

I suggested that the Illawarra had to be "… more proactive in picking up the pace of industrial diversity by joining our Hunter region colleagues in arguing for the establishment of a free trade zone".

I suggested this region’s political, business, trade union and community leadership needed to ‘quickly and actively partner’ the Hunter’s push on this concept. Nothing has changed my mind.

There are no easy solutions to creating jobs in regional areas - except we do know that without job creation, regions decline, services vanish, and the opportunity to share in Australia’s economic growth goes with it.

‘Enterprise Zones’ shows that Australia’s policy-makers and commentators need to actively rethink the basis of regional development policy and programs. And the time is now.

For too long Australia’s regional development policy has been set as either non-existent – as is the case now – to focusing on short-term, ad-hoc planning and too-little-too-late intervention.

The rhetoric is there. The nature of the problems facing regions is clear. But the conclusions are harder to implement.

The Howard Government cleared the decks of its role in regional development. After the 1996 election then Minister for Transport – and former member for Gilmore – John Sharp made it clear that the Constitution did not foresee a role for the Commonwealth in regional issues.

The regional development cause has not been a glowing show for Labor governments either, but Labor’s rhetoric was matched by solid commitments. Whitlam created for the first time a department to deal with regional issues. Fraser pretty much ignored it. Hawke, despite an early interest, suddenly had it wane.

Keating, at least, started an ambitious plan, providing key support for regional policy by establishing Regional Development Organisations – one of which was established in the Illawarra.

"Enterprise Zones’ 112-page report along with 15 key recommendations puts the regional development policy debate back on track and, crucially, into new ways of thinking. Regions need government intervention and involvement.

Just as John Howard used the very successful ‘five minutes of economic sunshine’ against Labor in the 1996 election, his Government is now looking at the very same storm clouds.

It is about to rain and it will be heavy unless regional disparity is addressed.

Australians have to address a simple fact honestly: this country does not create enough jobs. Creating them will not take place by arguing about inaccurate and unbelievable ABS unemployment statistics. We face two choices: either create new ones or take people out of the labour market on mass.

My choice is the first and to create jobs where the people are. To do otherwise, like suggesting the unemployed should move to areas where the jobs are, is absurd.

Australia must reconsider its barren policy on intervention, primarily in its regions. Why we so stridently and stubbornly remain wedded to market means when no other country in the OECD does or would is a question so frustratingly unanswered.

Regional development policy in the US, Europe, Asia and even New Zealand (for God’s Sake!) is so much more sophisticated and practical than Australian governments would dare dream.

In the State of the Region Report 1999, the Illawarra’s performance and policies were assessed against 57 other regions. It was not a good report. Just over a year later, has much changed? We still have moderate labour usage, high debt and moderate wealth. We still have moderate infrastructure and low levels of industry output.

It is a distinction this region shares with others like the Midlands and Central Western Australia, the Golden Region of Victoria, the Murray/Murrumbidgee region and the Mallee/Wimmera Region of Victoria.

We cannot ignore regional disparity anymore. The Illawarra, as it has in the past, comes to grips with challenges and opportunities.

"Enterprise Zones’ is a report about these things, should be welcomed and actively supported by all interested people in the long debate about regional development policy.