Boosting Productivity and Economic Participation in Braddon: Regional Priorities and Practical Reforms
Preamble
Australia’s productivity performance lags our international competitors, with the situation notably more dire in Tasmania and potentially even worse along the North-West Coast (e.g., Cradle Coast and Braddon region).
Productivity is a multifaceted issue, and it is widely recognised that no single measure can sufficiently address the nation's productivity challenges. Positioning our nation, state, and region for a prosperous and sustainable future requires coordinated action across diverse policies and sectors. To achieve this, governments and communities must have access to reliable data, ask informed and forward-thinking questions, nurture the capacity of our communities to meet emerging challenges and opportunities and engage with local narratives. These elements are essential to creating a strategic roadmap that fosters sustainable growth, enhances public health, and improves overall wellbeing across the region.
At the heart of this challenge lies a critical question: What will it take to transition to the new future while retaining our status as a region where people want to live?
Step 1: Scope the challenge
We know the outcome of a failure to address long-term systemic challenges. Research undertaken by Cradle Coast Authority (CCA) has identified several entrenched and/or systemic issues that hinder economic growth. These challenges impact workforce participation, performance, and resilience, while also limiting individuals' capacity to contribute and engage in a fulfilling and enriched life.
This research informed the initial development of the Cradle Coast Regional Futures Plan (2018) and is validated annually through the CCA Regional Economic Development Committee (REDC). In addition, it has informed early work on the strategic overlay – the roadmap to the future.
Step 2: The data
While the data set may be incomplete, there are some consistent issues faced by the community that have contributed to poor, underwhelming or uneven performance.
While the region has experienced strong economic growth from 2021 to 2023, with Gross Regional Product reaching $8.5 billion and an average annual growth rate of 3.4%; the impact of this growth has not been felt by the entire community, and there is concern that the growth may not be sustainable without targeted intervention.
The issues confronting this region are not dissimilar to those in other regional communities across Australia, and while a whole of government response may help to solve some, there is also demand for place-based and localised solutions.
1. Population
• Shrinking and aging workforce: Out-migration, an aging population, limited population growth and uneven distribution of growth are reducing the working-age population, creating labour shortages and increasing demand for the provision of health and allied health services.
• Low educational attainment: Continued lower levels of literacy, numeracy and digital competence. Fewer residents with bachelor’s or postgraduate degrees and more with only Year 10 or vocational training qualifications, lower completion rates for education and training (apprenticeships), limiting access to emerging job opportunities requiring post-school education.
• Socio-economic disadvantage: The region has a SEIFA score of 915, well below the national average of 1000. Burnie, Devonport, George Town, and the West Coast have even lower scores (~800) and higher unemployment rates.
• Fragmentation & lack of collaboration: Regional stakeholders continue to operate in silos. Efforts remain disconnected and their impacts diffused, with limited collaboration between councils, industries, and service providers. Government policy and practice often promote parochialism and competition.
• Geographic isolation: Remote areas like King Island, West Coast and to a slightly lesser extent Circular Head, face significant service delivery challenges, poor digital connectivity, deteriorating infrastructure and limited access to reliable transport.
• Disadvantage and disability: Disproportionate reliance on government support.
• Migration: limited consideration of the possible contribution migrants can make to the region, with migrants often struggling to gain recognition of qualifications and experience.
2. Economic
• Widespread inaction, uncertainty & loss of business and community confidence: Many in the region have lost confidence due to years of stalled projects (e.g. Robbins Island, energy infrastructure). Despite repeated discussions, nothing substantial has progressed, causing fatigue across industries and communities and adds to uncertainty and planning risk. People want to work or start businesses but lack support, confidence, or pathways to do so. This inaction inhibits innovation and enterprise.
• Missed economic & funding opportunities: Tasmania attracts a high level of business interest, yet companies regularly pull out due to bureaucratic delays and energy/infrastructure barriers. Multiple layers of red tape create a ‘why bother’ attitude and concerns about compounding financial impact caused by procedural delays and additional representation.
• Government funding: Policies and electioneering further contribute to competition rather than collaboration, which exacerbates uneven distribution of opportunities and services As a diverse and dispersed region with multiple stakeholders, we need policy and action to reduce fragmentation.
• Lower incomes and wealth generation: Median employment incomes lag the state and national averages, and earnings from business and investments are low, highlighting a need for greater local wealth creation.
3. Workforce
• Low levels of workforce participation:
o 19 April 2024: Tasmania’s economy would be $2 billion better off if workforce participation matched the national average. (Deloitte Tasmania Weekly Economic Brief)
o 21 February 2025: If Tasmania had the same workforce participation rate as South Australia, there would be an additional 15,000 workers. (Deloitte Tasmania Weekly Economic Brief)
• Skills gaps, mismatch, education & workforce shortages: Employers report difficulty recruiting in civil construction, engineering, and ICT, pointing to a misalignment between workforce skills and industry needs. Employers report the lack of personnel to supervise, mentor and train employees.
Education and training are becoming increasingly important contributors to the regional economy. The investment in the UTAS Cradle Coast Campus and Skills Tasmania’s Clean Energy Centre of Excellence are in recognition of the need to improve educational attainment and support workforce development, but this investment is against a backdrop of an under-resourced education and training system with a critical shortage of teachers, especially in more remote sections of our community, and skills training.
Widespread concern about the reliance on FIFO and DIDO and the impact this has on project cost, building and sustaining communities and infrastructure.
• High unemployment: Historically above state and national averages, unemployment, especially among youth, remains a key concern, with youth experiencing higher rates of disengagement from work and study compared to their Australian counterparts. Intergenerational experience of high unemployment also diminishes expectations and aspirations, locking people into disadvantage.
4. Environment
Renewable energy is often perceived as a threat to our region’s unique landscapes and biodiversity, creating divisions among communities and businesses. Opportunities for collaboration have been limited, leading to an 'either-or' mindset instead of an inclusive 'and' approach that fosters negotiation and the sharing of environmental assessment data.
5. Infrastructure
The region faces compounding physical and social infrastructure issues, including outdated hospitals, a lack of essential health services, inadequate transport networks across the region, as well as in and out of the region and a lack of long-term planning. These gaps deter professionals and families from relocating.
Housing and delays with permissions further strain regional development.
It's time to consider new models of delivery. Traditional models of service delivery, e.g., single focus bureaucratic structures, don’t suit regional and remote communities. There isn’t the same level of demand, resources need to be more nimble and multi-purpose to ensure value for money.
All levels of government should collaborate to develop community-centred outcomes, as seen in Smithton, where separate, poorly accessible assets – libraries and schools – are scattered and disconnected.
• Transport
There are significant logistical and transport barriers that impact the efficiency and cost of freight movement. The region relies heavily on a single primary freight corridor – the Bass Highway – which serves as the main route connecting regional producers to ports and distribution centres.
Public transport options are sparse and infrequent, making it difficult for non-driving locals to access opportunities or for visitors to explore beyond major centres, hindering tourism and visitor experience.
Tasmania has the lowest investment in passenger transport compared to any other Australian state or territory, with only $221.36 per person spent on passenger transport in Tasmania in 2019-20. The next lowest expenditure is the Northern Territory at $254.92 per capita (TasCOSS, 2019). Tasmania's constrained public transport budget highlights the importance of prioritising effective active transport solutions, such as demand-responsive transport options over fixed-route transport.
• Digital infrastructure
Many regions suffer from poor or unreliable internet and mobile coverage, especially in rural areas. This limits data access, affecting local services, education, and social inclusion, including telehealth, remote learning, and digital engagement.
• Social infrastructure
Inadequate housing, transport, and services, including limited childcare access, with 57% of areas classified as “childcare deserts” that hinder workforce participation and regional growth.
The Youth Jobs Strategy (Tasmania) found that mental health, housing and transport were identified as the most challenging issues impacting a young person’s participation in employment, education or training. Service fragmentation is contributing to young people falling through the gaps in support systems.
As healthcare is a key indicator of productivity as well as an economic contributor and employer in its own right throughout regional Australia, productivity gains in the healthcare sector would have significant benefits both economically and culturally
Step 3: A Solution – a future made for the Cradle Coast.
There is no easy fix, however, it is time to bite the bullet and tell it like it is.
To improve our region’s productivity, we need a major intervention; the transition to renewable or clean energy with its substantial injection of financial and human capital, is that once in a generation opportunity. But there is work to do if we are serious about using this opportunity to create a ‘future made for the Cradle Coast region of Tasmania’ which will drive sustainable regional productivity growth.
CCA’s solution begins with a strategic plan that captures all available data, quantitative and qualitative, a single source of truth to scope the challenges, opportunities and cumulative impact of the transition. As a community, we need to be able to see the whole picture that describes what is possible and what is not. Currently, there is no complete narrative for the community.
We will continue to invest in community engagement with Councils, traditional owners, communities, landowners, business and industry to build understanding of what this all means, a shared story and a placebased response
We have commenced the process of identifying and defining the required benefits and support while collaborating to create a positive narrative that can ease community tension and reduce conflict.
We need to ensure that this transition supports health and wellbeing, existing economic activity, tourism, advanced manufacturing, agriculture, aquaculture, fishing and forestry, while nurturing new innovative enterprises. Work with emerging industries (renewables, critical minerals, advanced manufacturing, etc.), community services, educational institutions, employment agencies and government to build a comprehensive database of workforce opportunities and challenges.
Too often, our focus is solely on economic productivity. CCA’s plan demands that there is investment in people's capacity to contribute to and participate in economic life. A clearly articulated pathway to healthy, enriched, secure and rewarding lives is a precondition and outcome of increasing productivity
To change the trajectory of our region, we need to work together to build understanding as to how education, training, and upskilling will shape our future. Low levels of literacy, numeracy, digital understanding and poor completion rates limit growth and contribute to long-term cycles of dependency.
Workforce
• Ensure alignment to government employment incentives and policies, identify gaps and map possible impact on existing Cradle Coast businesses and industry.
• The impact of cutting-edge technologies, including Artificial Intelligence, is reshaping all industries, providing new options for employers and impacting the number of unskilled positions available.
Housing
• Support local Councils, emerging industries, and service providers (health, education, etc.) to provide housing that simultaneously meets the needs of a changing community, enhances liveability for the incoming and host communities, protects against urban sprawl, addresses future climatic challenges, and respects the character and identity of our towns and landscapes.
• Planning reform aims to ensure urban consolidation that enhances amenity, widens the variety of dwellings and activities, and improves the amenity and utility of streets and open space.
Environment
• Our unique environment is the region’s greatest asset and resource. We need to find a way to protect, sustainably manage and improve natural resource for the shared environmental, cultural, social and economic benefit of the region. Our region is perfectly positioned to demonstrate how ‘national
environmental laws can help restore nature and power the net zero economy’ (K. Henry 2025) but we need to have that conversation outside the unproductive environment associated with the approval process.
Transport
• Commitment to greater investment in active and public transport
• Evaluation of the movement of people, services, and goods, including demand-responsive transport, to increase workforce participation and make the region more socially and economically inclusive. Exploration of alternative modes of transport and delivery to support future industries and productivity.
• Investment in transport to reduce the impact of geography as a barrier and allow better utilisation of the intrinsic qualities of our regions and localities.
Digital infrastructure (connectivity)
• Identify current gaps in digital connectivity and social infrastructure, and forecast future needs based on population growth, industry trends and demand, including digital connectivity coverage analysis.
Social infrastructure (service provision)
• Healthcare: continue to pursue alternative models of health provision and delivery. Undertake “Models of Healthcare” pilot project, working in conjunction with healthcare providers, training institute (UTAS).
• Childcare: map the provision of childcare across the region and align this data with workforce demands to ensure that it meets the community's needs and encourages people to relocate to our region. Look at the potential for new partnerships or local industry solutions.
Education
• Education: the Better and Fairer Schools Agreement, and the increase in the Schooling Resource Standard (SRS) to Tasmanian public schools provide a whole-of-government commitment to improving levels of literacy, numeracy, and digital literacy. As a community, we need to focus on improving attainment and use the future funds from the University Accord to increase engagement in postsecondary education.
• Not only will we need to improve education attainment within our region, we need to focus on attracting the ‘cream of the clever,’ building a talent pool and a community of innovation and enterprise.
Conclusion
The stakes are high, get it wrong and it will leave this nation with a long legacy of disadvantage and underperformance.
While the solution has been framed by the transition to a net zero economy, all elements of the solution are valid and necessary for the future of our region. Equally this solution could be applied or adapted to other regional Australian communities.
Productivity is extremely complex and there is no one solution but if our goal is to create the type of place where people want to live, work, invest, learn and play, and equally, businesses, industry and government want to invest now and into the future, then the strategies captured in this paper’s solutions offer a way forward. It’s not a short-term fix rather it is a long-term project that ensures that the community benefits from the transition to renewable energy and a net zero economy build a stronger, more sustainable community.
Prepared by:
Sheree Vertigan AM Chief Executive Officer Cradle Coast Authority