Regions make zero contribution to net output

With an increase in gross domestic product of 0.4 per cent in Bendigo in 2015-16, the modest growth in the state’s major regional centres was more than offset by contractions of more than 1 per cent elsewhere in regional Victoria.

While the figures meant the regions effectively contributed nothing to the state’s net output, La Trobe University senior planning and development lecturer Andrew Butt said it was encouraging to note Bendigo was outperforming much of the rest of regional Victoria.

“Things like dairy have had some hard times and our region has a more complex economy and many parts of this region have reasonably good connections into metropolitan Melbourne too and this suggests even though it’s been modest growth, it’s better than some parts of regional Victoria,” he said.

The Bendigo-based lecturer said the city’s healthy financial services sector represented an example of how traditionally city-centred industries could relocate to the regions.

“Things like the Bendigo Bank provide an example of decentralising work that’s typically seen as metropolitan,” he said.

“It can still work to some extent outside of those main centres, so there’s some positives in that example.”

Dr Butt said barriers to decentralising economic activity and employment included issues with the labour market and internet connectivity, but the answer was not simply to make it easier for workers to commute to central Melbourne.

“The other [thing] is for the industries themselves to consider whether the costs associated with being in a place like central Melbourne are worth those costs,” he said.

“Even the Bendigo Bank of course has a Docklands office, so they’re making those choices for reasons, [the questions is] whether the incentives that are out there can make them think differently about that.”