2014-01-13 Item 6.3 Appendices 1-5

Economic development
Economic development is a concept that generally refers to the actions of government
and communities to promote a higher standard of living. Such actions may involve the
development of infrastructure and regional competitiveness.

Economic activity in the region is based around tourism, primary production, building,
commerce, retail and light industry.

Growth
Population growth is an important factor and contributes to economic growth. An
increasing population in a local government area usually means an increase in the rateable
property base. This is the primary source of local government revenue. Without economic
growth communities can quickly stagnate. Local government areas with very low, zero or
negative growth generally require significant levels of subsidisation from state and federal
governments.

Projected population growth rates in both the new NSC and remaining SCRC are expected
to be around 1 per cent. The population of a new NSC is estimated at 61,719 with 29,711
rateable properties. The estimated increase of 0.4 per cent means approximately 120 new
rateable properties per year over the five‐year forecast period. It is likely the relatively
large population size and number of rateable properties of the proposed NSC has capacity
to absorb the rise in cost of rates and utility charges needed to provide a reasonable level
of service and capital expenditure.

Costs for a new NSC to do business are likely to increase if growth is limited. This is
reflected in the sustainability ratings assigned by QTC for a new NSC of Moderate
(neutral) and a new SCRC of Sound (neutral). De‐amalgamation would result in SCRC
being downgraded from its rating of Strong (neutral). A local government with a larger
population and more rateable properties has a greater capacity to provide services, better
absorb unforeseen shocks and be better placed to contribute to the economic
development of its area.




                                       Queensland Boundaries Commissioner Report – Proposed Noosa De-amalgamation
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