City Deal movement accelerates
City Deals for Hobart and Geelong are welcome news as the City Deal movement accelerates. Still ahead are City Deals for our nation’s four biggest cities which account for 75 per cent of population growth.
Kickstarting a City Deal for Hobart, announced by the Turnbull and Hodgman governments last week, aims to maximise new job opportunities, improve liveability and reduce congestion.
A range of potential projects have been identified, including a $400 million University of Tasmania Science, Technology, Engineering and Maths (STEM) centre in the CBD, investment in light rail and a multi-million dollar Antarctic and science precinct on the waterfront.
The Property Council’s Tasmanian executive director Brian Wightman says the Hobart City Deal presented huge opportunities, but must be leveraged to support continuous economic growth.
“The long-term benefit of this investment will reside in the cultural change that cutting-edge learning environments such as a STEM project will facilitate,” Wightman says.
Funding is yet to be allocated and Prime Minister Malcolm Turnbull has said “it’s too early to say what the total investment would be”.
Later in the week, the Prime Minister and Victoria’s Acting Premier were in Geelong to sign a memorandum of understanding which sets in motion Victoria’s first City Deal.
The Prime Minister told the media that Geelong’s City Deal would enhance the region’s transport links, revitalise the CBD, and position Geelong as a “leading digital economy”. A new Geelong Convention and Exhibition Centre is also reportedly on the table, but again, no funding commitment has been made.
City Deals bring together all three tiers of government to deliver major projects that boost jobs, improve infrastructure and support regional growth.
Five City Deals are currently underway. Alongside Geelong and Hobart, Launceston’s City Deal, signed in April 2017, will see the University of Tasmania’s Launceston Campus relocate to the city centre.
In Townsville, a deal struck in December 2016 outlines a commitment to construct a 25,000-seat stadium and convention centre, among other projects.
In Western Sydney, a collaborative partnership will realise the potential of the region as Sydney’s second airport startsto take shape. An MoU was signed in October 2016, although the final agreement is yet to be inked.
Meanwhile, the next round of discussions between the Turnbull and Gunner governments will flesh out a City Deal for Darwin.
The Property Council has been a vocal advocate of the City Deal mechanism, which chief executive Ken Morrison says can deliver economic and productivity growth in Australia’s cities.
The Property Council’s pre-budget submission argues that government should prioritise City Deals for Sydney, Melbourne, Brisbane and Perth.
“Given the growth dynamics of Australia – where more than three quarters of the nation’s population growth is forecast to occur in our four largest cities – these cities should each have a City Deal in place by 2020.”
The Turnbull Government should also increase its resourcing to support roll-out of existing City Deals.
“The Commonwealth’s role in City Deals does not end when these are signed. Implementation requires ongoing commitment with resourcing behind it,” Morrison adds.
“The Productivity Commission’s latest review has found $29 billion each year could be unlocked through smart investment and reform. The stakes are high – and so are the potential rewards,” Morrison concludes.