Why a City Deal must be a real deal

Why a City Deal must be a real dealIf there is a city that could benefit from a ‘real-deal’ city deal as a way of tackling high unemployment and laying a foundation for future economic growth, it is Townsville, says Property Council chief Ken Morrison.In November, Australian Government, Queensland Government and Townsville City Council agreed to work together on a City Deal to create more jobs and investment, renew the urban centre, and create a more vibrant and liveable city.A City Deal is a contract between local, state and federal governments to deliver infrastructure to drive economic development. The Property Council has been championing ‘UK style’ City Deals for two years as a means of integrating infrastructure spending, job creation and economic development into a long-term plan agreed to by all levels of government.The Townsville City Deal will include $100 million in federal funding for an integrated stadium and entertainment centre, and $1 million for the Townsville Eastern Access Rail Corridor.But Morrison warns that the final City Deal must focus on the economic potential of Townsville and that means the final agreement must be “more than a stadium”.Instead, it should be an agreement to deliver, in partnership with the private sector, the Townsville City Waterfront, which has been identified by the Queensland Government as a priority development area.”It should also be an agreement that seeks to build on Townsville’s existing strengths, like defence and education, as well as expanding economic capacity such as baseload power and investments in the port,” Morrison explains.Townsville has been dubbed the ‘jobless capital’ as it struggles with a double-digit unemployment rate, but Morrison says it has many “competitive advantages that can generate the jobs of the future”. The diverse Townsville economy – which includes tourism, education, agriculture and defence – gives it greater scope to withstand cyclical pressures as well as to rebuild during downturns.In the United Kingdom, regional economic renewal has been driven by the City Deals policy, and last week Morrison met with parliamentarians from both sides of politics to explore how a similar mechanism could work in Australia. The Property Council’s new discussion paper What makes a City Deal a Real Deal? lays out a framework for the best way to ensure City Deals create lasting jobs. “The success of a City Deals rests in its ability to sign up all three tiers of government to a medium to long-term economic vision that is more forward looking than the political or economic cycle.”Morrison says its essential that governments take the time to get each City Deal right.”The UK experience has shown that City Deals work. They also show that they take time. But as the Cowboys showed in Townsville if you are willing to withstand the knocks and make the necessary long-term investments, a culture of success will ultimately take hold.”Image: Ken Morrison, chief executive, Property Council of Australia; and Cathy O’Toole, Member for Herbert, Queensland.