Hill tells of regional disparity

REGIONAL inequality in Townsville is being driven by the decline of the mining, agriculture and manufacturing industries and unaffordable electricity.

The issue was outlined by Townsville City Council in a submission to a senate inquiry into regional inequality in Australia.

“Regional inequality is a significant constraint on national development,” Mayor Jenny Hill wrote.

“In particular, it is being driven by the shift from resource ( agriculture, mining, and manufacturing) to service industries.

“This shift has profound geographic consequences with the loss of jobs most acutely experienced in regional centres like Townsville and North Queensland. Skilled service jobs are in high demand, but these cluster in capital cities.”

Another barrier Townsville faces is energy affordability.

Cr Hill said this was due in “signifi- cant part” to federal and state governments failing to balance competing priorities of competition, security, reliability and emissions targets, without adequate regard to the impacts on affordability and business viability.

A shocking revelation showing the issue of power prices was included in the council’s submission.

“North Queensland’s largest industrial power user, Sun Metals, have noted that their power costs ( around $ 50- 60 million per annum) have tripled over the last 15 years, and the additional costs associated with energy and its transmission are impacting their competitiveness,” the submission reads.

Sun Metals has noted that if their plant had been in Gladstone rather than Townsville they would save approximately $ 10.5 million per annum on transmission charges alone.

The submission says some Federal Government functions should be relocated to Townsville and regional immigration schemes should be supported to help address inequality.