Regional development in Western Australia has historically been the result of regional ability to take advantage of natural resources in facilitating trade with external markets – ultimately leading to local economic and population growth. The Peel is no different, having historically been reliant on traditional primary industries that trade on its natural resource assets.
However, industries that are reliant on the region’s natural resources have failed to keep pace with the extensive urban development that has occurred as the Perth metropolitan region has expanded southwards. The result has been the development of dormitory suburbs where 47% of workers are forced to leave the region to attain employment. Our Peel Regional Investment Blueprint (Blueprint) strategies and identified potential investment opportunities are aimed directly at rebalancing this disparity.
With the population of the Peel expected to grow to 444,000 by 2050, there will be a requirement for 78,352 new jobs to maintain an employment self–sufficiency target of 78.5%.
Sources of future job creation are projected to occur through population driven employment in industries such as healthcare and social assistance, education, training and retail trade. Strategic employment growth is expected to occur in export industries such as mining, food and producer services industries such as research, universities and professional services.
If the Peel is to remain economically competitive and maintain employment self-sufficiency targets, it needs to diversify its economy. Our Blueprint confirms that this can occur through a focus on:
• protecting our existing capital base and associated businesses and industries;
• expanding industry sectors that are of strategic importance to the State; and
• building new industry sectors.
Protecting our existing capital base
The Peel’s current capital base has enabled a substantial economy with a diverse range of businesses and industry. They are the foundation of the region’s economy and play a critical role in creating employment. This capital base includes:
• mining;
• health care and aged care services;
• metals and manufacturing;
• building and construction;
• retail, accommodation, food services and tourism; and
• agriculture, forestry and fishing industry sectors.
Investment into maintaining this capital base is required, as are strategies aimed at supporting the competitiveness of existing businesses and industry.
Expanding industry sectors
The Peel has identified three strategic industry sectors where a State imperative has been established and where the region has a potential comparative advantage. It is strategically important that these are supported.
One significant area of opportunity is intensive food production, with Australian produce being recognised in the market place both nationally and internationally for its safety and high quality produce. Few of Western Australia’s regions are as well-placed as the Peel to develop in this area.
This comparative advantage, coupled with the opportunity to actively intervene in addressing the region’s environmental and social challenges, makes the establishment of a food zone focusing on innovative food production a compelling opportunity for sustained investment.
A second opportunity exists to enhance the role that tourism plays in the regional economy. The following aspects give the Peel a clear comparative advantage and the potential for the region to contribute to the goals of the State Government Strategy for Tourism in Western Australia 2020 :
• a vast and diverse natural resource base which requires careful management and protection, but which holds significant new opportunity in adventure tourism;
• proximity to the Perth metropolitan region and linkages to the South West region present broader opportunities for tourism sustainability, connectivity and development;
• proximity to overseas tourists through port and airport facilities; and
• an existing road infrastructure network that facilitates connectivity between natural adventures.
Thirdly, the opportunity exists for the establishment of the Peel as a premier equine region given its close proximity to the Perth metropolitan region. The Peel has an enduring, rich and successful history with the equine industry and is well placed for long-term development.
The Shire of Serpentine Jarrahdale are to be commended for the releasing the the Serpentine Jarrahdale Equine Strategy 2018 this year. The strategy outlines the Shire as having the greatest number of horses of WA Local Government localities and twice the number of registered racing horses than any other local government, making it the largest racing hub overall. The annual expenditure of horse owners, which is primarily spent locally, as well as the value of events, represents a significant contribution to the local economy and the region’s growing reputation as the leading Equine Region in Western Australia.
Building new industry sectors
In order to attract new enterprise, create a highly skilled and adaptable workforce and build regional resilience we must enhance the region’s capital base through investment in our natural, social, produced, financial and human capital. This is essential if the region is to create comparative advantage and attract new enterprises into the Peel.
A significant opportunity lies in developing a regionally-based research industry. Building a regionally-based “knowledge economy” is recognised as being critical to the future economic success of the Peel – enabling the development of commercial intellectual property, strategic jobs and increased capacity of our people into the future.
This article was first published in the Peel Magazine, Spring/Summer 2018 – vol 4.2 – to read and download the full magazine, click here.