THE ECONOMIC BENEFITS OF REGIONALISATION : A SOUTH AUSTRALIAN CASE STUDY
By Sasha Lennon
In 2022 , SC Lennon & Associates was commissioned by Regional Development Australia Far North in South Australia to consider and assess the potential economic impacts of regionalisation ( or decentralisation ) of government services to South Australia ’ s Far North Region .
The Far North Region has a population of 27,000 , and covers an area of approximately 800,000 square kilometres , which is 80 % of South Australia ’ s land mass . Stretching from the Spencer Gulf to The Outback and the Flinders Ranges , the region takes in the local government areas of the Port Augusta City Council , The Flinders Ranges Council , District Council of Coober Pedy , and Roxby Downs Council , in addition to areas administered by the Outback Communities Authority ( OCA ).
The economic analysis undertaken on behalf of RDA Far North was informed by an overview of contemporary thinking on the subject of regionalisation in Australia , some assumptions about what quantum of government departments might potentially re-locate to the Far North from Adelaide and elsewhere , and economic modelling of the potential impacts . The analysis revealed that the potential economic benefits of government-led regionalisation in South Australia could be substantial and if the Far North could capture its share , this would result in significant direct and indirect benefits in the form of public sector employment and economic activity , with flow-ons throughout all sectors of the regional economy .
‘ REGIONALISATION ’ DEFINED According to the House of Representatives Standing Committee on Regional Development and Decentralisation ( June 2018 ), ‘ decentralisation ’ ( or regionalisation ) can be broadly interpreted . For some , it refers to establishing or relocating public ( and private ) sector jobs and functions from metropolitan capital cities to regional or rural areas to create sustainable employment opportunities as part of a strategy to support prosperity in these areas .
Regionalisation may also include the establishment or presence of regional offices or out-posted offices in areas where services are needed , and have traditionally existed . In these cases , a head office may be located in a capital city with a network of rural or regional offices elsewhere .
In a July 2019 submission to the South Australian Government Department of Primary Industries and Regions ( PIRSA ), the Local Government Association of South Australia ( SAROC ) highlighted the importance of decentralisation as a key policy tool to assist with the growth and development of regional South Australia . The paper argues that regionalisation of government services provides benefits to the regions through enhanced service delivery and population growth , as essential ingredients of regional economic development .
It is argued that , as well as addressing population imbalance and providing employment opportunities in the regions , policies aimed at regionalisation , by locating a higher share of government sector jobs in regional locations , may bring government services closer to the people they serve , better align government agencies to specialist regional areas and resources , tap into the skills and experience of people living in the regions and reduce government operating costs .
The House of Representatives Standing Committee notes that only a small percentage of Australian Public Sector
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