TABLE 1 . ESTIMATED ECONOMIC IMPACTS OF REGIONALISATION , FAR NORTH ( SA ) REGION
Direct Effects
The initial uplift in public sector employment generated by enhanced government regionalisation , will , using the assumptions stated above , result in a further economic stimulus to the Far North Region in the form of output , industry value-added and employment impacts , which will flow though all sectors of the regional economy . The associated quantum of corporate investment ( regionalisation ) is implicitly captured in the resulting increase in output , valueadded and employment in these other industries .
To estimate the economic impacts of regionalisation , the assumed initial public sector jobs stimulus was modelled using the REMPLAN model of the Far North Region economy . The economic modelling shows the impacts , including all direct , supply-chain and consumption effects , is estimated to increase the Far North Region ’ s output by up to $ 181.79 million , industry value-added will increase by up to $ 111.88 million and total employment will increase by up to 867 jobs . These results are summarised in Table 1 .
The economic analysis demonstrates that the benefits of government-led regionalisation in South Australia could be substantial and if the Far North Region can 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 Far North regional economy .
ADVOCATING THE CASE FOR REGIONALISATION According to the Parliamentary Standing Committee ’ s Regions at the Ready report , the purpose of regionalisation is two-fold : ( 1 ) to facilitate better government through the improved provision of services and
Supply Chain Effects
Consumptioninduced Effects
Total Impact
Output $ 123.26 million $ 15.22 million $ 43.31 million $ 181.79 million Value-Added $ 77.91 million $ 7.38 million $ 26.60 million $ 111.88 million Employment 629 jobs 58 jobs 180 jobs 867 jobs
Source : REMPLAN with interpretations by SC Lennon & Associates
the development of policy ; and ( 2 ) to create social and economic opportunities for communities .
To help any region progress its case for more government investment and to realise the potential economic benefits of regionalisation , a region ’ s key agents of change , including RDA Committees , local Councils , advocacy groups and regional development organisations , can work together to establish their own region ’ s case for regionalisation of government services as a means of establishing a shared policy position on the subject .
The economic modelling shows the impacts , including all direct , supply-chain and consumption effects , is estimated to increase the Far North Region ’ s output by up to $ 181.79 million , industry value-added will increase by up to $ 111.88 million and total employment will increase by up to 867 jobs .
An economic benefits analysis , similar to that which was prepared for South Australia ’ s Far North Region , can be used as a key tool informing a region ’ s advocacy efforts with State and Federal Government agencies , to present their case for regionalisation . Taking such an informed approach will serve to place regions on a strategic and co-ordinated pathway to pro-actively supporting the case for greater government and private sector investment in regional Australia .
REFERENCES
Australian Bureau of Statistics ( 2021 ), Census of Population and Housing
Australian Government , Department of Transport , Regional Development , Communications and the Arts ( February 2024 ), State of Australia ’ s Regions 2024
Australian Government , Department of Regional Australia , Local Government , Arts and Sport ( 2013 ), Regional Economic Development Guide
Commonwealth of Australia ( June 2018 ), Regions at the Ready : Investing in Australia ’ s Future – House of Representatives Standing Committee on Regional Development and Decentralisation
Commonwealth of Australia ( 2018 ), House of Representatives Standing Committee on Regional Development and Decentralisation – Issues Paper
Government of South Australia , PIRSA ( 2021 ), Regional Development Strategy
Local Government Association of South Australia ( July 2019 ), PIRSA Regional Development Strategy - Discussion Paper , LGA Submission
Lennon , S . ( 2014 ), Addressing the Determinants of Sustainable Economic Development , in Economic Development , The Quarterly Journal of Economic Development Australia , Volume 7 , Issue 1
Regional Australia Institute ( September 2021 ), 2011- 2021 , A Decade of Achievement
Regional Australia Institute ( September 2017 ), Submission to the Select Committee on Regional Development and Decentralisation
Regional Australia Institute ( 2015 ), The Economic Contribution of Regions to Australia ’ s Prosperity
SC Lennon & Associates Pty Ltd ( January 2022 ), Economic Analysis of Government Regionalisation ( Decentralisation ) in the Far North Region of South Australia – A Report to RDA Far North SA
https :// login . remplan . com . au / community /? proj = f 98e07dfbdf14275b6c49c412a414dab viewed 13 December 2021
https :// www . canberratimes . com . au / story / 7449409 / regionalisation-the-time-to-act-isnow / viewed 3 February 2022
ABOUT THE AUTHOR
SASHA LENNON Sasha Lennon is a Brisbane-based consultant with 30 years ’ experience specialising in the preparation of regional economic development strategies , destination management plans , economic needs and impact assessments , business cases and strategic plans . He holds postgraduate qualifications in economics and journalism and is a Certified Economic Developer . Sasha is the Director of consultancy firm SC Lennon & Associates Pty Ltd . Go to www . sashalennon . com . au .
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