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Decentralisation Committee
Inquiry into regional development and decentralisation
                                     Submission 132

Livingstone Shire Council Submission –
Regional Development and
Decentralisation Committee
15 September 2017

Livingstone Shire Council Submission – Select Committee on Regional
Development and Decentralisation
Decentralisation Committee
Inquiry into regional development and decentralisation
                                                            Submission 132

Contents

Executive summary ................................................................................................................................. 2
1. Decentralisation of Commonwealth entities or functions, as a mechanism to increase growth
and prosperity in regional areas ............................................................................................................. 4
2. Characteristics of Government agencies suitable for decentralisation to the Capricorn Coast
Region ..................................................................................................................................................... 5
3. The benefits of economic growth and opportunity being shared across Australia and the
importance of regions to the national economy .................................................................................... 7
4.          The cost benefits of decentralisation to the overall Australian economy .................................... 10
5.          Decentralisation - reduction in commuting costs and time ......................................................... 12
6.          Benefits of relocation of a government agency to the Capricorn Coast Region .......................... 13
     a)        Destination of choice (live, work, play)..................................................................................... 14
     b)        Key LSC indicators at a glance ................................................................................................... 14
     c)        Employment ............................................................................................................................. 15
     d)        Education .................................................................................................................................. 17
     e)        Health services .......................................................................................................................... 18
     f)        Major projects & Investment Opportunities ............................................................................ 19
     i.        $53M Yeppoon Foreshore and Town Centre Revitalisation ..................................................... 19
     ii.       $30M Panorama Drive – Northern Strategic Link Road............................................................ 19
     iii.      $25M Gateway Business and Industry Park.............................................................................. 19
     iv.       $6.2 M Local Disaster Coordination Centre and Community Resilience Engagement Hub ..... 19
     v.        Stage 1 $3.6 M Capricorn Coast Homemaker Centre ............................................................... 20
     vi.       $16 - $18 M Scenic Highway Reconstruction and Upgrade Statue Bay .................................... 20
     vii.          $4.5 M Emu Park Foreshore Redevelopment ....................................................................... 20
     viii.         $2.5 M Barmaryee Multi-Sport Precinct - Yeppoon ............................................................. 20
     ix.       $4.5 M Hartley Street Multi-Sport – Emu Park ......................................................................... 20
     x.        Causeway Lake Revitalisation ................................................................................................... 21
     g)        Housing affordability................................................................................................................. 21
     h)        Tourism and events................................................................................................................... 21
     i)        Connectivity .............................................................................................................................. 22
7.          Conclusion .................................................................................................................................... 23
Appendix A: Sources of information ..................................................................................................... 24

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Decentralisation Committee
Inquiry into regional development and decentralisation
                                            Submission 132

Executive summary

The Select Committee on Regional Development and Decentralisation is requesting submissions on
the best approaches for regional development opportunities regarding the decentralisation of
Commonwealth entities to regional areas and what actions the Commonwealth could undertake to
encourage greater corporate decentralisation.

The submission to the inquiry from Livingstone Shire Council (LSC) builds a business case as to why
the Capricorn Coast and the Central Queensland region are well-positioned to accommodate
government research industries, functions and government entities in our region.

The submission details the region’s affordable housing, first-class health and education facilities,
current major projects, family-friendly coastal lifestyle as well as existing and future employment
opportunities.

Regional cities such as Yeppoon and its surrounding townships have an important role as the
location of regional scale services such as health, education, transport, commercial, cultural, social
and government services. Australia’s regions are vital to our national identity, the national
economy, cultural and social diversity, tourism and environmental health of our nation.

Investing in regional cities provides considerable benefits to the national economy. The
establishment of a Commonwealth entity at the Capricorn Coast will strengthen our capacity as a
strong regional city delivering amenities and services that retain talent in our region while producing
maximum economic dividends to the nation.

A relocated government entity would generate a wide variety of benefits to the Capricorn Coast
region. These benefits include short-term and long-term job generation through construction
activity, ongoing employment opportunities within the public service, enhanced social buy-in to the
local community and a higher level of consumption spending in the regional economy resulting from
relocated employees and families.

Private sector investment is strengthened by the government exhibiting a long term commitment to
a region. The establishment of a major government office may trigger more public infrastructure
spending (co-location) and/or public realm improvements.

Benefits to the “relocating Commonwealth government entity” include, but are not limited to
savings in long term office accommodation costs, reduced commuting time and costs, enhanced
housing affordability, access to a more skilled workforce, reduced living and operating costs and a
wide range of lifestyle benefits for employees. In this sense the Capricorn Coast region is ideally
suited to government agencies and research industries that have grass roots already firmly
established in the regions, including beef production, agriculture, social services, tourism, defence
and marine science as well as new opportunities such as the establishment of innovation and
disaster management agencies.

Regional communities need Commonwealth and State Government assistance to compete with the
employment draw of the Capital Cities. Shifting population to the regions is highly beneficial to
infrastructure strained capital cities and employees struggling to maintain lifestyles against rising

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Decentralisation Committee
Inquiry into regional development and decentralisation
                                           Submission 132

costs of living. The infrastructure costs for supporting further growth in the capital cities is
enormous. This growth could be accommodated in the regions for substantially less and
simultaneously aid in advancing these communities to a point where they can sustain the same
enticements presently luring regional talent to the Capitals, such as diversity of employment
opportunities, arts and culture, education facilities, etc.

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Decentralisation Committee
Inquiry into regional development and decentralisation
                                            Submission 132

    1. Decentralisation of Commonwealth entities or functions, as a
       mechanism to increase growth and prosperity in regional areas

There have been a number of efforts over the years to decentralise public services from Canberra
and the State Capitals so that an understanding of regional issues can be better realised along with
job creation and the flow on economic benefits. Decentralisation may improve the ways in which
public servants understand and work for Australia’s diverse regional communities. Stronger regions
within a more diversified economy also enhances production, reduces infrastructure costs and
creates a more shock proof national economy.

Examples of successful relocations

Geelong has turned into an insurance hub with the National Disabilities Insurance Scheme (NDIS)
relocation from Melbourne expected to add 680 workers to the region by 2018. The Transport
Accident Commission is already based in Geelong. In 2016 it was announced that the Department
of Human Services planned to open a 400 person office in Geelong alongside the NDIA building.
Work Safe Victoria is also committed to opening a head office in Geelong. The construction of the
headquarters to house these agencies will create several hundred jobs, while the location of
hundreds of more employees in the Geelong CBD will have a multiplier effect on jobs, growth and
investment.

In 2016 it was announced that four Canberra based rural research and development agencies would
be relocated to offices in regional and rural Australia to provide greater engagement with farmers,
growers and experts in these areas. The Rural Industries Research and Development Corporations’
(RIRDC) move to Charles Sturt University in Wagga Wagga will provide savings of $266,000 in annual
rent costs and a total savings of $1,200,000 in operating costs. In a similar move the Grains Research
and Development Corporation (GRDC) will establish four offices in Dubbo, Toowoomba, Perth (with
the intent to move to Northam) and Adelaide, the primary headquarters will remain in Canberra.

The Australian Pesticides and Veterinary Medicines Authority (APVMA) will be moved from Canberra
to Armidale bringing approximately 189 jobs from Canberra to Armidale by 2019. Proving the
multiplier effect of decentralisation the following government agencies are also located in, or have
offices in Armidale CSIRO, the Beef Industry Centre of Excellence, the Australian Sheep Industry
Cooperative Research Centre, Australian Poultry Cooperative Research Centre, Meat & Livestock
Australia, Institute for Genetics and Bioinformatics, Animal Genetics and Breeding Unit, Institute for
Rural Futures and the National Centre of Science, Information and Communication Technology and
Mathematics Education for Rural and Regional Australia.

The benefits to a relocating Commonwealth entity are detailed throughout this submission but
clearly savings in accommodation costs, housing affordability, reduced cost of living and lifestyle
benefits for employees are high on the agenda.

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Inquiry into regional development and decentralisation
                                             Submission 132

    2. Characteristics of Government agencies suitable for
       decentralisation to the Capricorn Coast Region

Government agencies and research industries suitable for relocation to the Capricorn Coast region
are those with grass roots already firmly established in the region including beef production,
agriculture, social services, tourism, defence and marine science as well as new opportunities in the
establishment of innovation and disaster management agencies. Some examples of government
entities that could be relocated and established in the Capricorn Coast region are detailed below.

    1. Regional office for Emergency Management Australia

The Emergency Management Australia (EMA) is a division within the Attorney-General’s Department
and the Australian Government Lead for disaster and emergency management. Working closely
with state and territory governments and the international emergency management community,
EMA delivers critical programs, policies and services that strengthen and maintain Australia’s
national security and emergency management capability.

While state and territory governments are responsible for emergency management in their
jurisdictions, EMA coordinates Australian Government support, both physical and financial.

EMA is home to the Australian Government Crisis Coordination Centre (CCC) an all-hazards, 24/7
facility that provides whole-of-government situational awareness to inform national decision-making
during a crisis. The CCC also coordinates physical Australian Government assistance during disasters
and emergencies and manages the National Security Hotline, a vital component of Australia's
national counter-terrorism efforts.

In 2015, the Australian Government established the Australian Institute for Disaster Resilience
(AIDR), to support implementation of the National Strategy for Disaster Resilience. AIDR is a disaster
resilience knowledge centre that coordinates and promotes the development, sharing and use of
information for anyone working with, or affected by, disasters. AIDR builds on extensive knowledge
and experience in Australia and abroad, working with government, community, research, education
partners and the private sector to enhance disaster resilience through innovative thought
leadership, professional development and knowledge sharing.

By the end of 2017 the Yeppoon town centre will have a new state of the art Local Disaster
Coordination Centre and Community Resilience Engagement Hub. This development will be a
category 5 cyclone-proof 3 storey building that will function as a strategic hub for managing and
coordinating disaster situations. The building will also focus on building community resilience
through disaster training and related education and engagement programs. This building creates
the opportunity for a regional EMA office to be established on the Capricorn Coast, the first of its
kind that could act a satellite office for the Australian Institute of Disaster Resilience (AIDR) to create
a resilience knowledge and training center.

From a State government perspective the Disaster Management Office QLD has one office located in
Kedron.

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Inquiry into regional development and decentralisation
                                            Submission 132

Opportunity: Establish a Central Queensland based office in the LDCC building that services and
supports the Northern part of the state in partnership with a regional EMA office.

    2. Yeppoon Satellite Office - Great Barrier Reef Marine Park Authority (GBRMPA)

The Great Barrier Reef Marine Park Authority (GBRMPA) provides for the protection of the Great
Barrier Reef through research, monitoring, enforcement and the facilitation of wise and sustainable
interaction with the marine park by a wide range of users . There is currently a regional GBRMPA
office located in Rockhampton which provides compliance services, advice, permits and zoning
maps.

Opportunity: Establish an office in Yeppoon to take advantage of the Capricorn Coast’s proximity
and established access to the Keppels and the Southern Great Barrier Reef. This office could form
part of an administrative service centre for the GBRMPA incorporating offices for AIMS and FRDC
(see below).

    3. Capricorn Coast Satellite Office and Research Laboratory - Australian Institute of Marine
       Science (AIMS)

The Australian Institute of Marine Science (AIMS) is Australia’s premier tropical marine research
agency; currently the AIMS headquarters is located near Townsville.

Opportunity: Establish a satellite office, laboratory and research facility to on the Capricorn Coast to
address Southern Great Barrier Reef needs. Townsville is too far away to provide adequate
attention to the southern section of the reef. Also the conditions and needs of the southern reef are
different from those in the north especially given the rapidly evolving dynamics associated with
climate change, both in the water and on land.

    4. Capricorn Coast Satellite Office and Research Laboratory - Fisheries Research and
       Development Corporation (FRDC)

The Fisheries Research and Development Corporation (FRDC) is a co-funded partnership between
the Australian Government and the fishing industry. FRDC’s role is to plan for and invest in fisheries
research, development and extension (RD&E) activities in Australia, with an emphasis on achieving
sustainability in commercial (wild catch and aquaculture), recreational and indigenous sectors.

Opportunity: Yeppoon and its surrounding coastal areas and islands offer the perfect location for a
research facility to be established in the area. The FRDC could be co-located with an AIMS research
facility.

    5. Capricorn Coast Satellite Office -Department of Defence Capability Acquisition and
       Sustainment Group (CASG)

The Department of Defence Capability Acquisition and Sustainment Group (CASG) purchases and
maintains military equipment and supplies in quantities and at service levels required by Defence
and approved by Government.

Opportunity: Establish a satellite office at the Capricorn Coast to manage purchases, coordination
and upkeep of military equipment needed for Shoalwater Bay Training Area exercises.

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                                           Submission 132

    6. Capricorn Coast Research Facility -Department of Defence Science and Technology Group
       (DST)

The Department of Defence Science and Technology Group (DST) provides science and technology
support for Australia’s defence and national security needs. The DST provides scientific and
technical support to current defence operations, investigates future technologies for defence and
national security applications, advises on the purchase and smart use of defence equipment,
develops new defence capabilities, and enhances existing systems by improving performance and
safety and reducing the cost of owning defence assets.

Opportunity: Establish a research facility on the Capricorn Coast to evaluate machinery capabilities
in a tropical environment and test and enhance existing systems and equipment. The Gateway
Business and Industry Park provides an ideal location for storage of defence equipment and testing
could be completed in the field during exercises at Shoalwater Bay Training Area, or in a co-located
research facility at the Gateway Business and Industry Park.

    7. Capricorn Coast Research Facility - Department of Agriculture and Fisheries

While there is an established regional office of the Department of Agriculture and Fisheries at
Parkhurst there are other industry related needs that should be addressed on a site-based approach
within the region.

Opportunity: Partner with a private sector investor and Council to set up a specialist Aquaculture
research facility at the Capricorn Coast .

    8. CSIRO – Centre for Excellence

Establishing a CSIRO centre for excellence provides scope to develop new and improved
technologies and strengthen the local capacity of the Capricorn Coast to build our food and industry
services sectors by partnering with existing industry and attracting new industry to our region.

Opportunity: Establish a centre for excellence focused on collaborative research into new and
existing technologies in any of the following speciality fields:

    •   Environment
    •   Commercial improvements to existing plant and animals production techniques
    •   Pest control
    •   Climate change impacts on farming and food production and natural systems
    •   Genetic research, including gene drive technology
    •   Robotics in agriculture
    •   Mariculture and aquaculture

    3. The benefits of economic growth and opportunity being shared across
       Australia and the importance of regions to the national economy

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                                            Submission 132

Council has not traditionally played a direct role in identifying, prioritising and facilitating economic
development opportunities. Regional communities have the view that State and Federal
governments have abandoned any substantial support for growth of the regions with government
activities and growth agendas largely focused on metropolitan areas. Being the primary interface
between the public and government, Councils are being increasingly pressured by the communities
they serve to find ways to grow local economies and deliver services that equal those of capital
cities. This means changing the role of Councils forcing them to take a proactive leadership role in
helping to build strong regional communities and economies. More and more, planning and funding
for economic development is being left to local governments to drive and deliver for the other tiers
of government without adequate funding and support. In short Councils need more support and
ideally, because Councils are at the coalface of the local economy, they are the best positioned to
address local economic and community development needs.

Regional cities such as Yeppoon and its surrounding townships have traditionally played an
important role as the location of regional scale services such as health, education, transport,
commercial, cultural, social and government services. There are opportunities to expand this role
and to leverage it to support other services, especially private sector development.

The importance of regions compared to metropolitan areas is often overlooked. In 2013 the
Regional Economic Development guide launched by the Department of Regional Australia, Local
Government, Arts and Sport (DRALGAS) noted:

    •   “Regional economic development plays an important role in the overall performance of
        Australia’s economy. It directly affects income, employment, investment, working
        conditions and ultimately, the well-being of all Australians. Encouraging and supporting
        economic development in the regions can have spill-over effects for neighbouring
        communities and the nation as a whole (DRALGAS, 2013, p.11).

    •   Australia’s regions are vital to the national economy, cultural identity and environmental
        amenity. They produce the bulk of our exports and are home to roughly a third of our
        population. Importantly, the economies of our regions and cities are co-dependent and
        linked through economic, cultural and social ties. Therefore, the performance of a single
        region can have a significant impact on the performance of the nation as a whole, meaning
        that regions are crucial to Australia’s national prosperity (DRALGAS, 2013, p.1). “

Regional capitals according to Regional Capitals Australia (2015) contribute the following to the
national economy:

    •   “$225 billion in economic output as measured by Gross Regional Product, representing 15
        per cent of total economic output;
    •   A labour force of more than 2 million people;
    •   A collective industry and employment structure that generally reflect the national economy;
        and
    •   40 per cent of Australia’s exports are produced in regional Australia, with much of this
        passing through regional capitals.

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                                            Submission 132

The benefits generated by regional capitals are not just linked to economic performance indicators
either. Regional capitals:

    •   take pressure off the metropolitan cities which are increasingly congested with
        infrastructure backlogs in unsustainable urban sprawl;
    •   already have substantial physical infrastructure that can be upgraded or expanded to
        increase utilisation;
    •   have faster freight access in northern Australia to south east Asian countries (with combined
        population of 500 million +) than Melbourne, Sydney or Brisbane;
    •   have an abundance of developable land to accommodate additional residential and business
        demand. Existing residential house prices are affordable and are generally 20-30 per cent
        lower than state capital land prices;
    •   play an agglomerating role for regional Australia creating greater business efficiency and
        increased productivity;
    •   are an efficient and sustainable model of growth; and
    •   further diversify the national economy, reducing the reliance on just two or three cities.”

While Australian regional capitals have many strengths, they also have common weaknesses (The
Regional Capitals Australia Issues and Positioning Paper) including:

    •   relatively high socio-economic disadvantage in the national context with lower incomes,
        lower educational attainment and higher unemployment rates;
    •   lower worker productivity than the national average;
    •   under-representation in professional and finance services;
    •   poor education completion rates with a bias to manual occupations and away from
        professional and managerial roles; and
    •   comparatively low levels of investment when their population size is taken into account.”

As well as:

    •   lack of variety and volume of professional opportunities;
    •   increased distance from capital cities (services);
    •   lack of critical mass in both public and private sector ; and
    •   lower levels of social infrastructure.

Community expectations, population growth and corresponding economic growth have seen the
range and scope of local government functions expanded. However, our local government sources
of revenue have remained relatively unchanged, increasing financial pressure on Council. The
Capricorn Coast region is seeking support from the Commonwealth government to relocate one or
more appropriate entities to our region. This will provide a clear indication of commitment to
strategic investment by the government in the regions in recognition of the essential benefit regions
provide to Australia’s prosperity, security, sustainability and identity.

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                                            Submission 132

    4. The cost benefits of decentralisation to the overall Australian economy

Capital cities have reached critical mass for economic and social self sustainability, but are now
struggling to remain operationally efficient in the face of massive and costly infrastructure needs.
Over the last several decades there has been a huge amount of investment in new infrastructure and
upgrades in South East Queensland to support infill development, redevelopment and new
developments such as Springfield and Ripley and investment in. Despite this, infrastructure
provision simply cannot keep pace so land and infrastructure constraints increasingly impact on
productivity, liveability and sustainability..

It currently costs around $0.7 billion per kilometre of road infrastructure to alleviate capacity
constraints in South East Queensland; while most regional cities could support substantially greater
development with relatively minor investments. (Future role and contribution of regional capitals to
Australia Submission 19). New infrastructure requirements in regional cities are primarily needed to
augment existing infrastructure capacity, extend trunk infrastructure to fringe and other new
development areas, and improve lifestyle amenity, not to ease congestion.

While it is recognised that a city environment creates a range of benefits (increased productivity and
wages, opportunities for collaboration and innovation and concentrated internal markets and the
support of a wide range of amenities)the assumption that increases in size translate to growth and
success are not necessarily true. There is a downside to living in a big city; high house prices,
(particularly close to a CBD), congestion, pollution and increasing crime. As big cities grow people
are forced to live further and further away from their places of work and the benefits of inner city
living become harder to attain (see Figure 5 below).

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                                             Submission 132

Figure 5. The upsides and downsides of being a big city (Source Regional Institute of Australia Deal
or No Deal? Bringing Small Cities into the National Cities Agenda 2016)

The relocation of one or more government agencies to the Capricorn Coast will benefit not just the
region but the nation and overall economy. As stated by the Regional Institute of Australia (Deal or
No Deal? Bringing Small Cities into the National Cities Agenda 2016):

        “Importantly for Australia, as we confront the challenge of a 40 million population, for every 100,000
        Australians who chose to live in growing small cities rather than our big five cities, the Regional
        Australian Institute (RAI) estimate that an additional $50 billion will be released into the economy
        over 30 years in reduced congestion costs and increased consumption. “

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    5. Decentralisation - reduction in commuting costs and time

The relocation of one or more government agencies to the Capricorn Coast region would
significantly reduce commuting costs and time spent travelling to work for government employees
compared to their current location in capital cities. Public service employees relocated to the
Capricorn Coast would benefit from:

    •   a newly constructed Yeppoon Town Centre multi-storey carpark providing 320 car parking
        spaces
    •   an average commute time of 5 to 15 minutes into Yeppoon from the outer suburbs or the
        Emu Park township
    •   40 minutes access to Rockhampton Regional Airport
    •   more time for recreation and leisure
    •   savings on fuel and public car parking fees
    •   a much more relaxed but productive lifestyle

Data from the HILDA survey (AMP.NATSEM 2011) showed that the average hours Australians spent
each week travelling to and from work have increased from 3.9 hours in 2002 to 4.4 hours in 2009.
When comparing capital cities Sydneysiders fare the worst in this area, spending on average almost
six hours per week in a car, bus or train. Those living in Brisbane spend on average five hours a week
travelling to and from work, Melburnians are a little lower at 4.5 hours (Table 2 below. Time spent
travelling to/from paid work – capital city).

Figure 6. Time spent travelling to/from paid work – capital city (source data: AMP.NATSEM (2011)
Race against time How Australians spend their time?)

Personal time spent commuting to and from work is not the only issue in Capital cities the high cost
of fuel, car parking and/or public transport costs impact heavily on an employee’s hip pocket. A
2013 study by the Australasian Railway Association found that “Melbourne commuters travelling five
kilometres to the CBD in a light car spends on average $7880 per year and those driving a large SUV

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25 kilometres into the CBD could be spending $20,107 annually to commute.” (Cary, The Age 2013).
Other suburban residents were also found to incur the highest costs by driving to work, although the
report said in many each suburbs commuting to the city by public transport is impractical. One
worker living 26 kilometres north of Melbourne’s CBD and driving to work in St Kilda Road five days a
week was spending $286 a month for a permanent car park at her work and spending around $100 a
week on fuel. Commuting by public transport was impractical. (Cary, The Age 2013).

    6. Benefits of relocation of a government agency to the Capricorn Coast
       Region

Figure 1. Map of Livingstone Shire Council Local Government Area (LGA)

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    a) Destination of choice (live, work, play)
The Capricorn Coast region has over 36,000 residents and more than one million visitors every year.
Situated just 20 minutes from Rockhampton, the region spans over 11,776km2 with a wide range of
high quality lifestyle attractions. The major centres of Yeppoon and Emu Park are the region’s
premier lifestyle hubs, offering an extensive range of affordable housing and rental options, from
executive villas and beach front homes to sea-side estates and lifestyle acreage.
The Capricorn Coast is renowned for its quality of life. But it also provides all the essential services
including several premium schools. From a lifestyle and liveability perspective employees and their
families relocating to the region will want for nothing and employers (whether public or private) will
find themselves with improved workforce morale, lower absenteeism and higher levels of
productivity. Reduced travel time, increased leisure and family time and easier access to services
and amenities can only have a positive flow-on effect to families as well. A growing population is
critical to the long term viability of our local community and one of our most important resources.
With safe and reliable transport links, including public transport options, around a third of the
employed population work in Rockhampton while choosing to live on the coast or neighbouring
hinterland where median house prices ($385,000 2016) are among the most affordable in Australia.
Residents of the Capricorn Coast also enjoy first-class training and education opportunities, including
nationally recognised public and private schools with boarding facilities, as well as direct access to
CQ University, ensuring the leaders and entrepreneurs of tomorrow can further their education and
career prospects locally. Being NBN-enabled further enhances options for local and online study.
With a host of major infrastructure projects currently underway, including a $53 million
revitalisation of the Yeppoon Foreshore and Town Centre, the Capricorn Coast region is home to a
thriving business community, offering extensive employment and training opportunities in general
industry, construction and engineering, tourism, retail, hospitality and agriculture.
The Gateway Business and Industry Park - Capricorn Coast’s first integrated Business and Industry
Park - is strategically located just 15 minutes from the Bruce Highway and only 30 minutes from
Rockhampton Airport, offering premium industrial land with high-speed fibre optic broadband to the
premise and access to an established B-double transport hub. Proximity to the airport provides
business with a direct link to international heavy-lift freight capacity and daily passenger services to
Brisbane, Townsville and the Gold Coast.
The Capricorn Coast region forms an integral part of the greater Central Queensland economy, and
has close working relationships with the local government areas of Rockhampton, Central Highlands,
Gladstone, Banana and Isaac through the Central Queensland Regional Organisation of Councils
(CQROC), to encourage economic growth, private investment and job creation across the entire
region.
It is this progressive approach to driving economic development, coupled with the regions unique
and affordable lifestyle options, that ensure Capricorn Coast region is the destination of choice to
live, work, play and invest.

    b) Key LSC indicators at a glance
    •   Gross Regional Product - $1.38b (2016)
    •   Population – 36,272 persons (ABS 2016)
    •   Ave annual population growth – 2.3% (2016)
    •   Population projection – 57,042 by 2036
    •   Labour force – 18,101 (2016)
    •   Unemployment rate 5.9% (March 2017)

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    c) Employment

Figure2 Percentage Employed, Industry of Employment, Place of Work, Livingstone Shire, 2011

The Capricorn Coast region employs a total of 18,101 people, being nearly half the population; with
approximately one third of the working population travelling to work in Rockhampton and
surrounding areas.

In the Livingstone LGA 17.9% of employed persons work in the Technicians and trade workers
occupation, while 15.5 % of employed people work in Professionals occupation (ABS Census 2011).

The top five occupation sub-major groups of employment for the Livingstone (LGA) are:

    1.   Sales Assistants and Salespersons (6.2%)
    2.   Automotive and Engineering Trades Workers (5.3%)
    3.   Education Professionals (5.0%)
    4.   Machine and Stationary Plant Operators (5.0%)
    5.   Hospitality, Retail and Service Managers (4.4%)

The unemployment rate in the Livingstone LGA at March 2017 was 5.9%, 0.2% lower than the
Queensland State average of 6.1%.

Despite the current project development underway; the last 10 years have provided some
unwelcome challenges to the Capricorn Coast community and had a major impact on employment.
The sudden closure of two major tourist attractions, Great Keppel Island and the Capricorn Resort
Yeppoon resulted in tens of millions of dollars and approximately 420 full time equivalent jobs
(combined workforce from both resorts)lost from the local economy.

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The downturn in mining with its associated flow on impact to Capricorn Coast region support
industries (a preferred residential base for resource industry workers, contractors and their families)
has hit the region hard. Successive downturns in the region’s mining, resources and construction
sectors have seen major employers and contractors relocate or close. The resource industry is
starting to show signs of life again with coal prices increasing; however there is still a long recovery
process in place to reach the same level of economic activity enjoyed several years ago.

Whilst Livingstone represents 30% of the broader regional population, it contributes only 7% to the
local/regional economy with most employment and education hubs currently being located outside
the shire. As a result, 33% of our community commute to employment locations outside the region
and the majority of local disposable income is not spent locally. Capricorn Coast businesses and
industry need to grow and diversify to ensure we have the economies of scale to offer more
employment opportunities to grow the resident workforce. Employment opportunities for youth
and university graduates (outside the capital cities) are critical for retaining young (energetic and
innovative) talent in the region.

Few new businesses have established in Yeppoon in recent years. Most businesses and employment
opportunities exist outside the region in either Rockhampton or the mining localities in Central
Queensland. Registered businesses per 1,000 of population figures dropped from 87.1 in 2010/11 to
77.5 in 2013/14, well behind the Queensland average of 88.2 for 2013/14.

Tropical Cyclone Marcia, 20 February 2015, may have had the most devastating event on recent
economic conditions, crossing the coast as a Category Five and directly impacting both the Capricorn
Coast and Rockhampton. Overall regional damage estimates were in excess of $750,000,000. Social
and economic disruption will be felt for several years because of displaced agricultural sector and
tourism workers, loss of productive agricultural capacity, the big hit to tourism.

Relocation of a major Commonwealth agency/office(s) to the Capricorn Coast region will provide a
much needed boost to a region hard-hit by these multiple negative influences. Locating a major
Commonwealth agency/office(s) to the Capricorn Coast will provide security and permanent jobs,
aiding in the economic recovery and long term sustainability of the region.

As the Minister for Regional Development stated when announcing the Government’s policy on
decentralisation:

        Moving government functions to the regions means more people in our towns, more customers in our
        shops, more students in our schools, and more volunteers for the local fire brigade.

        … It's important for government to lead by example and invest in rural, regional, and remote Australia,
                                                                                    1
        creating long-term careers and breeding confidence in those communities...

Employment opportunities will be created not just by new-to-region Federal (and State) employees
but from the increased spending they and their families generate and the new investment they
drive.

1   The Honourable Fiona Nash, Minister for Regional Development, and Local Government and Territories,
    Investing in the future of our regions. Speech to the National Press Club, 19 April 2017,
    , accessed 20 July 2017.

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    d) Education
Unlike many regional communities within Australia, access to tertiary and further education at the
Capricorn Coast is comparatively easy, with a TAFE campus and Central Queensland University (CQU)
co-located only a twenty minute drive away in Rockhampton. CQU also has a study centre in
Yeppoon with computer laboratories, classrooms and a video conferencing room. The TAFE recently
underwent a transition and was incorporated with CQU, improving the quality and diversity of post-
school tertiary education offerings. As a result CQU now offers a full spectrum of courses from
certificates and diplomas through to doctorates across eight subject areas.

There are several top quality schools in the region offering Prep to Year 12 with boarding school
options for students outside of the region. Combining this with CQU, which offers traditional
university and TAFE offering means the Capricorn Coast region could offer to host a campus in
Yeppoon. The region needs to focus on promotion and growing the Capricorn Coast and
Rockhampton regions as a regional education destination/hub for higher performing students.

Health, education and training are one of the highest and best-paying employers in the region and
approximately twenty per cent of the workforce is employed in these industries. Additional
opportunities exist to establish a mutually beneficial partnership between Queensland Health and
CQU by creating an integrated medical school at CQU. The Asian education market is an obvious
target market supporting communal accommodation offerings on the Capricorn Coast with easy
transport to and from the university. Currently 80% of international students in Australia come from
the Asian region but comparatively few attend regional campuses. Australia’s international
education activities generate over $15 billion of export income annually and this revenue supports
more than 100,000 jobs (Australia – Educating Globally Advice from the International Education
Advisory Council 2013). More of these need to be directed to the regions.

CQU has the facilities to expand into specific fields of expertise such as agriculture, health and
education linked to existing industries in the region. CQU could also partner with local high schools
such as Saint Brendan’s to develop programs that encourage and enable high school leavers to
pursue university qualifications locally. The number of students studying for agricultural
qualifications has virtually halved in the past decade, as mining and other careers have offered
better prospects. This means there are now more agribusiness jobs than qualified graduates
(Growing Central Queensland Review 2015). The best way to get professionals to work in regional
Australia is to train them in the regions; 60-80% of regional university graduates are employed
within regional Australia within a few months of graduating. (Regional Universities Network (RUN)
Submission to the Rural and Regional Affairs and Transport References Committee Inquiry into the
future role and contribution of regional capitals to Australia)

The Capricorn Coast region currently has a population with a below average skills level. Year 12
completion rates are low 44.6% (ABS 2011). This is partly driven by an older workforce
demographic, which has historically been characterised by lower Secondary School completion rates
but it also reflects a high rate of “earning versus learning” among young adults, with young people
drawn into the workforce as unskilled but high paid employees rather than pursuing professional
careers through further education and training.

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Due to the region’s Central Queensland location, there has been an historically high demand for
mining, industrial and transport occupations where higher education qualifications are not required
for the most part. Given the recent deterioration in both the tourism and resource sectors, this
reliance on unskilled and unqualified employment, both locally and across the region, represents a
considerable risk for the Capricorn Coast economy. These workers are far less adaptable than
degreed professionals.

Retaining, creating and attracting educated and skilled professional people to the Capricorn Coast
builds human capital and sets the base for building local community wealth and health. Strong
human capital enables communities to be more productive, to innovate and to respond to changes
in the economy. One of the most critical decisions that families with options have to consider when
contemplating living in a regional city is access to quality education. Commonwealth government
agency employees and their families relocating to the Capricorn Coast will have the choice of
multiple high quality educational options from early childhood through tertiary with a substantial
cost differential in fees between capital cities and our independent schools.

    e) Health services
Many people are moving to regional areas for a more relaxed and affordable lifestyle but still
requiring access to medical and recreational facilities equivalent to capital city offerings. Retirees
are looking for property affordability close to services with a higher standard of living. The Capricorn
Coast meets these needs but while new residents boost the local economy, they can also put a strain
on health services.

The Capricorn Coast and Rockhampton have a strong economic base in healthcare and social
assistance and education and training. These industries have underpinned the region’s relative
stability for a long time, but there are deficiencies that still need attention to raise the standard to
that provided in capital cities.

Twenty minutes down the road the Rockhampton Base Hospital and health service catchment also
service the Capricorn Coast. Rockhampton also contains several private hospitals which
complement the public Rockhampton Base Hospital.

Senior dependency ratios in the Capricorn Coast region are well above Australia’s ratio, meaning
limited health, liveability and aged care infrastructure will be put under much more pressure than
major metropolitan areas. The proportion of residents aged over 65 years is marginally lower than
the State average. General ageing of the Capricorn Coast population over the next 20-30 years is
expected to more demand for health, medical and welfare based services (including retirement
accommodation and aged care).

Health delivery falls substantially to the state government especially in relation to hospitals, while
the policy settings that influence the availability and cost of health services are influenced by federal
government decisions across multiple portfolios. Though not every regional city can have a world-
class cancer facility or trauma centre it is still essential that they have access to key hospital and
health services including after hours and telehealth technology.

Although there has already been significant investment and renewal of health infrastructure in the
region, attracting and retaining doctors and specialists is still a major challenge for government and

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the community, especially cardiology and radiation oncology specialists. The injection of jobs
created from the re-location of one or more government entities would bolster demand for these
services and therefore their local viability. Key hospital and health services such as these should be
within an hour’s drive not eight hours as is currently the case.

    f) Major projects & Investment Opportunities

      i.    $53M Yeppoon Foreshore and Town Centre Revitalisation
A major development of $53 million dollars funded by the Federal and Queensland Governments
and Livingstone Shire Council. The overall objective is to revitalise existing public spaces and create
tourism, recreation and commercial land uses within the Yeppoon Foreshore and Town Centre
precinct. This project includes a multi-storey car park (completed), water feature (The Keppel
Kraken completed) beachside lagoon pool, foreshore boardwalks and CBD connectivity.

Figure 3 Yeppoon Foreshore and Town Centre Revitalisation Concept Plan, Livingstone Shire, 2016

      ii.   $30M Panorama Drive – Northern Strategic Link Road
Panorama Drive is a $30 million dollar project funded by the Queensland Government and
Livingstone Shire Council. It is a strategic road link forming a key transport corridor to directly
connect the northern suburbs of Yeppoon with resource nodes, airports and current and future
industrial parks.

     iii.   $25M Gateway Business and Industry Park
The Gateway Business and Industry Park is a master-planned Business Park on 56 hectares, located 5
minutes from Yeppoon CBD with 80 lots in six stages over 10 years to be developed to a value of $30
million over with up to 150 businesses expected to be involved.

     iv.    $6.2 M Local Disaster Coordination Centre and Community Resilience
            Engagement Hub
The Local Disaster Coordination Centre is a $6.2 million dollar project funded by the Queensland
Government and Livingstone Shire Council. It is a level 5 cyclone-proof 3 storey building in the centre
of Yeppoon which will function as a strategic hub for managing and coordinating disaster situations.
The building will also focus on building community resilience through education and engagement
programs.

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Figure 4 Local Disaster Coordination Centre Concept Design, Livingstone Shire 2017

      v.    Stage 1 $3.6 M Capricorn Coast Homemaker Centre
The Capricorn Coast Homemaker Centre is a $3.6 million dollar project funded by the Queensland
Government and Livingstone Shire Council. This project is the Capricorn Coast regions’ first
‘Homemaker Centre’ fronting the Yeppoon to Rockhampton Road, the Homemaker Centre site is in a
prime location on nine hectares of land in town. The site has 10,000 vehicles a day passing by and
offers seven premium retail and industrial lots.

     vi.    $16 - $18 M Scenic Highway Reconstruction and Upgrade Statue Bay
A $16 - $18 million dollar project funded by the National Disaster Reconstruction Authority and
Livingstone Shire Council, Statue Bay is part of the Capricorn Coast unique Tourist Drive and
connects Yeppoon to Emu Park via the Scenic Highway. It is a vital tourist link between Yeppoon and
Emu Park used by 6,500 cars per day. The area was closed by a major landslide in 2015, most
recently during Cyclone Marcia. Reconstruction and slope stabilisation works are underway to
reopen the road and ensure no future recurrence.

    vii.    $4.5 M Emu Park Foreshore Redevelopment
The Emu Park Foreshore Redevelopment is a $4.5 million dollar project funded by the Queensland
Government, Bendigo Bank and Livingstone Shire Council. This is the next stage of the Emu Park
Foreshore Redevelopment building on the success of the Emu Park Anzac Commemorative Project.
The proposal includes a loop walk from Kerr Park to Peach Park, west to Bell Park and Emu Park’s
Village Centre and other park and town centre improvements.

   viii.    $2.5 M Barmaryee Multi-Sport Precinct - Yeppoon
The Barmaryee multi-sport precinct is a $2.5 million dollar project funded by the Queensland
Government and Livingstone Shire Council. It is Central Queensland’s newest, inclusive multi-sport
precinct and includes fourteen sealed and turfed netball courts, four full sized rugby league fields
which also cater to a thriving touch football competition, clubhouse and kiosk with amenities.
Planning is also underway on two full-sized AFL fields.

     ix.    $4.5 M Hartley Street Multi-Sport – Emu Park
Causeway Lake Revitalisation

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The Hartley Street multi-sport facility is a $4.5 million dollar project funded by Queensland
Government, Bendigo Bank and Livingstone Shire Council that includes two irrigated rugby fields
with full lighting, multi-purpose amenities building complete with training, change and first-aid
rooms, kiosk and storage facilities as well as upgraded access road and car park.

These projects contribute to the ongoing economic viability and liveability of the region adding
incentive for government employees to relocate from cities to the regions.

      x.    Causeway Lake Revitalisation
Council is collaborating with the State Department of Local Government, Infrastructure and Planning
on a consultancy to evaluate environmental and economic revitalisation needs in Causeway Lake.
This once premier local attraction has been severely impacted by siltation since it was constructed in
1938 and its functionality has declined considerably. At the same time demand is increasing for the
many activities supported by the lake such as multiple water sports, calm water training for these
sports, fishing and multiple water and land associated passive and active uses. The lake requires
dredging as the first step towards restoration with improvements to the shoreline also needed to
gain the most out of this intervention.

    g) Housing affordability
There are many reasons people want to move to regional areas, to escape the “rat race”, better
proximity to work and a more balanced lifestyle. One of the main reasons is liveability and
affordability, in particular housing affordability.

The affordability of Asian and Australian cities is declining rapidly. The cost of living in Australian
cities has been rising particularly quickly up the rankings of OECD countries as economic growth has
been accompanied by inflation and currency swings. In 2015 two of Australia’s cities (Sydney and
Melbourne) were ranked in the top ten most expensive cities to live in the world, compared to ten
years ago when there were no Australian cities among the 50 most expensive cities. (The Age 2015)

There were 626 existing dwelling sales in the in the Capricorn Coast region in the 12 months ending
30 December 2016, representing a median sale price of $385,000 compared to the rest of
Queensland average of $440,000. For the LSC LGA the median rent for a 3 bedroom house in the 12
months ending June 2017 was $300 per week, compared to the rest of Queensland average of $350
per week. The Capricorn Coast region has a significant supply of affordable housing from both a
purchasing and rental aspect.

The cost of living at the Capricorn Coast is more affordable than South East Queensland. Housing
costs within the Capricorn Coast region are lower than the State average. The Capricorn Coast
region can supply a diversity of affordable housing options to new residents with the Yeppoon town
centre also an affordable option.

    h) Tourism and events
The Capricorn Coast has long been recognised as one of Queensland’s premier coastal destinations
and the gateway to the stunning Southern Great Barrier Reef (SGBR). Last year almost two (2) million
visitors enjoyed all the SGBR has to offer; from stunning beaches and bushland to iconic cultural and
sporting events and everything in between. As the $53 million dollar Yeppoon Foreshore and Town

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Centre Revitalisation continues to take shape, the Capricorn Coast’s tourism industry should receive
a much needed boost. Last year overnight visitors invested almost one ($1) billion dollars in the
Southern Great Barrier Reef area; an increase of 6% or $52 million from 2014. The Southern Great
Barrier Reef is among the top 15 domestic tourism destinations in Australia attracting more than
137,000 international visitors last year and injecting $105 million into the local economy.

With endless beach frontage and an abundance of greenspace and parklands, Livingstone Shire hosts
over 46 major community events every year including:

    •   Brisbane to Keppel Tropical Yacht Race
    •   Lions Pine Fest
    •   The Village Festival
    •   Great Australia Day Beach Party
    •   Yeppoon Tight Lines Fishing Classic
    •   Cap Coast Running Festival
    •   Emu Park Festival of the Wind
    •   Yeppoon Triathlon
    •   Obstacles Gone Mad
    •   Lions Emu Park Oktoberfest
    •   Weekly / Monthly Community Markets

These events attract tens of thousands of visitors to the region, who spend on average, $130 per
person per day, which stimulates local business and helps to sustain the regional economy.

    i) Connectivity

Technology has played a central role in enabling the globalisation of markets mainly by increasing
the reach and speed of communication while also assisting to reduce costs and easing the flow of
goods, capital, people and information across borders. This has made Australian businesses more
responsive to change, utilising faster speeds of transactions, providing cheaper and more convenient
services as well as making better use of scarce resources in the process.

The Capricorn Coasts’ progressive approach to digital technology ensures residents enjoy
metropolitan facilities in a stunning coastal setting, including the latest high-speed broadband and
NBN connectivity. Work is nearly completed on the NBN network throughout the region. In the past
twelve months, Council has also successfully lobbied for funding to construct two new mobile towers
in Mt Chalmers and Marlborough as part of the Federal Government’s $68 million Mobile Blackspot
Plan.

Livingstone Shire Council provides free Wi-Fi at a number of popular public locations across the
region including the Keppel Kraken Water Play Area, Yeppoon Town Hall, both Emu Park and
Yeppoon Libraries and the Yeppoon Community Development Centre. Council also provides digital
literacy programs and training for local residents and businesses.

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