Time for Councillors to understand the Coast?s economy

This move brings into focus an obvious lack of understanding on the part of local councillors of the desperate need for sustainable jobs to be created in the region.

Earlier this year, property developer, Dino Seraglio withdrew his development plans for a project worth $100 million at Terrigal after almost ten years of frustration on the part of councillors.

In the early part of this decade Council stymied what would have been the catalyst to redevelop Gosford CBD by killing off the Spurbest project.

At Wyong while we have seen a number of major projects over the past ten year that include; Quay West Magenta Shores, Kooindah Waters Golf Resort, Woolworths Distribution Centre, Bluetongue Brewery and industries in and around Tuggerah Business Park, much more could be achieved.

Against that, Council is making it difficult for the Klumper Development proposal at The Entrance, a massive development that could transform The Entrance.  Council approved it last year with close to two hundred conditions. One has to ask, do they really want this development?

 At Warnervale, Council is squabbling with the State Government over development levies that so far have seen the Warnervale Town Centre development and surrounding residential and industrial areas remain in limbo for over five years. The so-called environmental issues that are also trotted out so enthusiastically are just another reason this essential development has languished.

Currently EnergyAustralia is spending almost $620 million improving the regional electricity network involving the construction of new high voltage power line and substations. It isn?t easy; they have been thwarted at nearly every move by residents insisting they find somewhere else to put this essential infrastructure.

All these lost projects and many smaller ones represent employment opportunities both during construction and in the continuing businesses they would generate.

The regional economy has stalled

The end result is that the regional economy has stalled and it?s time to look at some hard facts:

1. Over the past twenty years the Central Coast?s population growth has fallen from almost 5% per annum to close to zero.  The 2006 Census showed that it had fallen to .86% per annum and it will be very interesting to see what the 2011 Census shows us.  An article by Economist, Ross Gittins, in the Saturday 19th June Sydney Morning Herald that relates zero population growth with poor economic outcomes is rather instructive. 

2. One should note that close to a quarter of the regional population is aged over 60 years.

3. It is also instructive to note that 50% of Coast households have a gross weekly income of less than $1,000 per week which does not bode well for future business growth.

4. Twenty years ago the Central Coast economy had a vibrant residential construction industry. It was the backbone of the economy.  Today it is a shadow of its former importance in the region with most local project builders having closed down or moved their activities to the Hunter or interstate.  Consequently those employed in the building trades have had to find work in Sydney or elsewhere.  They may live here but they don?t work here. This only adds further pressure to the F3 freeway and our overcrowded rail system.

5. Of course the reason for the building industry to be in such decline is that land for building has dried up.  This is due, in part, to numerous State Government issues not the least being developer levies and environmental constraints with both Gosford and Wyong Councils being enthusiastic supporters of these changes.  Significantly no new land of reasonable size has come onto the market in more than fifteen years. Indeed Gosford City Council has seen no new residential release areas.

6. New home building, worldwide, is a big generator of economic growth.  Apart from the building trades employed, there is the added dimension of homes needing furniture, carpets, kitchens, saucepans, sheets, TVs, grass and a whole lot more which retailers and building suppliers in our region were all providing.

7. In September 1994 there were 95,700 residents in employment. Today it is around 140,000. This includes close to 40,000 who work in Sydney.   In sixteen years the workforce has increased by 3,000 jobs per annum and it is quite possible that many of those are Sydney jobs. While they enjoy good wages, many are forced to find work there because they simply cannot get a job on the Central Coast.

8. Currently youth unemployment is running at 40%.

9. Because we do not encourage investment, we have seen almost no major investment in the region in recent years.   There has been nothing at all of any consequence in the City of Gosford.

10. In 2007 the region had 22,548 businesses registered.  Of these 12,711 or 56% employed nobody, 6,471 employed from 1 to 4 people or 29% and 2,544 or 11% employed from 5 ? 19 people (ABS data).  The remaining 4% of businesses in the region employed more than 20 people.  One could hardly call these figures the basis for a vibrant economy.

Regional Economic Development and Employment Strategy

In February this year the Mayors of Gosford and Wyong signed a ?compact? with the Premier of NSW, Kristina Keneally, and the Minister for the Central Coast, Ian MacDonald supporting the Central Coast Regional Economic Development and Employment Strategy (REDES).

Obviously, both Mayors simply took this event as just another photo opportunity for the press.

Under the State Plan the Central Coast is expected to provide for an additional 100,000 people over the next twenty years and support 45,000 jobs.

Economic growth requires population growth and jobs that attract good wages.

On present indications this may never happen.

(Note: Statistical information used in this article has been sourced from Central Coast Research Foundation reports on the regional economy over the past 16 years as well as ABS data)

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