Cost of living figure bit of guesswork

HAPPY end of financial year and here’s to a more sustainably prosperous next financial year with more opportunities, more jobs and lower costs. Here’s to a more confident Magnetic Coast.

There was an interesting article in last Friday’s Bulletin about households north of Bowen ( another definition of North Queensland) being the best savers in Queensland.

One conclusion was that a higher cost of living was the key reason why people save better in the North. Another might be households saving for a rainy day.

Anyway, this high cost of living notion seems to be reinforced by the recent North Australia white paper which states that the North has much higher living costs than the south and was a deterrent for people and business to move here.

I’m amazed they can make such a shallow statement when the only official inflation figure in North Australia is captured on the fourth largest city in the North – Little Darwin.

Other evidence disputes this comparatively higher cost of living notion in the North East. The most recent State Government cost of living report showed that places such as Townsville, Charter Towers, Burdekin and Ingham are among the cheapest locations in Queensland.

The Federal Government can’t make motherhood statements that effect commercial decisions and population movements without valid evidence- based foundation.

Truth is it doesn’t know our costs and it’s probably been listening to draw conclusion, rather than collecting and analysing.

To be sure, Darwin, the Northern Territory and the North West are higher- cost locations but the North East, where most of the North’s population and economic diversity exists, is not in the same classification.

There’s evidence that suggests we might be comparatively cheaper than the south, but we won’t know until we do the economic analysis.

Every budget is different but in general accommodation costs are most Australians highest expense.

Townsville regions’ median home prices are about 70 per cent cheaper than Sydney’s and over a third cheaper than the national median home price.

As a consequence, our average mortgages are lower. Our average rents are much lower than the capital city average, including Darwin.

There are many other examples of lower costs. There are many examples of higher costs such as petrol, home insurance and marginal costs of base load power for high- end business users.

The North Australia white paper is a positive step forward. It’s the first plan of its kind. But if it is to be successful, its data needs to support the conclusion. This being true, the only conclusion I can draw from the cost of living motherhood statement is that cantberra doesn’t know our cost of living, doesn’t know our cost to do business and needs to revisit this statement to connect with most people in the North, and talk up potential economic- driving deals that benefit all Australians.

Bottom line is include North Queensland in the quarterly or annual CPI figures and we will all be in a better position.