Escaping the Trap

1. 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.

2. The Challenge of Sustainable Prosperity • 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

3. The Central Goldfields Shire challenge-- Significant Health Problems Educational Under- Achievement Economic Disadvantage Social Distress Overwhelming disadvantage -a barrier to prosperity and sustainability SEIFA index of disadvantageLocal Government Areas in Regional VictoriaSEIFA index of disadvantage 2006 Central Goldfields 907.1 i.e. 79/79 –the highest level of disadvantage of Victorian municipalities

4. VISION - Central Goldfields Shire Council- "To add to our proud heritage a prosperous and sustainable future for all" -which embodies- A healthy, well educated, inclusive, strong and productive community that is active, creative, innovative and environmentally sustainable. Broad Environmentally Sustainable Prosperity Childhood Health Development & Education “Go-for-Gold” –Council’s strategy to close the gap Healthy, Strong & Inclusive Community Young People as Winners in Learning Adult/Mature-Aged Skills/Training Long term place based solutions* Significant Health Problems Educational Under- Achievement Economic Disadvantage Social Distress Current reality Overwhelming disadvantage a barrier to prosperity and sustainability *Generational change and sustainable community development – for at least 8 yrs

5. 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)

6. State Government partnerships have been key to helping us respond to disadvantage -- • 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!

7. But the challenge of disadvantage will continue the need to find new solutions CHALLENGES FUTURE Economy Flat manufacturing and agriculture Diversified “new” economy Community Social isolation Social inclusion Long term place based solutions Government Partnership “One size fits all” Targeted support for disadvantaged locations Finding the co-contribution Government Funding No disposable Income Jobs Sustainable wealth creation Differentiation –Goldfields National Heritage Region Creating opportunity Regions

8. We feel place based solutions are key--- Challenge to Local Government* Sustainable Solutions Results • 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 Place based solutions and building change capability Council Building change capability accelerates gap closure Priority Actions to Tackle Disadvantage Utilise Government programs on offer Tackling Disadvantage State and Federal Governments Build on Success Time *Source: ALGA- State of the Regions Report 2003

9. And in the next stage of State Government partnership--- • RDV – funding and support will continue to be key-more support needed in “new 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

10. The financial sustainability of small councils will need to be tackled --- • 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.