Queensland can add $54bn to its economy and create 230,000 more jobs

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Queensland can add $54bn to its economy and create 230,000 more jobs

But only by making the right choices - Deloitte scenario

28 July 2017: Deloitte warns that unless Queensland embraces a vision for its future, and business, government and communities actively work together to create it, they will lose out on the State’s biggest opportunity yet. John Greig, Managing Partner Queensland Deloitte said: “For Queensland to be a future maker, rather than a future taker, we need to be proactive. We can all do more to make Queensland even greater than it is.”

Unless this happens, Deloitte warns the State will be buffeted by the full force of intense competition and disruption from the economic and social global trends that are exerting pressure on nations around the world. The Deloitte vision Confidently Queensland: Liveable communities, diversified economy and inclusive growth was launched today by Deloitte partner and Deloitte Access Economics leader Queensland, Dr Pradeep Philip.

Greig said: “Our work is the result of numerous consultations and focus groups engaging a wide range of stakeholders that builds on the knowledge and experience of business, industry, government and community thought leaders. And complementing our existing research and data, we also conducted a survey of 6000 people, not just in Queensland but more broadly across Australia, to better understand the key themes that were developed over the 12 months of research underpinning this report.

“We determined that Queensland has the potential to be even better than it is today and even greater than current forecasts suggest. Confidently Queensland outlines a vision for 2027 where the economy is nearly 10% bigger, adding an extra $54 billion to its Gross State Product. An additional 230,000 jobs are added to the economy. The regions are boosted in order to get their fair share of population growth, and young Queenslanders have less of a need to move away.

Dr Ric Simes, Deloitte co-author said: “The economic opportunity and Queensland’s wonderful lifestyle has made Queensland the envy of the world. At its peak 50,000 people per year moved interstate to call Queensland home.

“But recently net interstate migration slumped to less than 10,000 pa. This is now on the rise. But to keep it there, Queensland industries that are fundamental to the economy today, such as agriculture, tourism and natural resources, need to move up the value chain and be more productive for the economy.

Dr Philip said: “Along with a more diversified economy, we can seize the opportunities, such as those presented in Asia, to drive the Queensland economy even further.

“The research explains why rising inequality in labour market outcomes and income had occurred amid rising prosperity. One-third of Queensland’s income in 2014-15 was earned by just one-tenth of the population.

“We need to change this dynamic. Our research is no pie in the sky vision. It is built on our existing economic fundamentals, and considers how much better Queensland could be if the right choices are made for economic and social reform. ”

A resounding theme that was revealed in the 6000-strong national survey was the importance of Queensland’s liveability. Kelly Heaton, economist with Deloitte Access Economics, responsible for much of the research and co-authoring said: “We found that along the coast, we value our recreational opportunities. In the south east corner we greatly appreciate our access to healthcare. And in the rest of the state it is community cohesion we value.

“Alongside liveability, Queenslanders also want economic opportunity, affordability, education and an inclusive society.”

To get there Deloitte identifies three areas of reform that Queensland must embrace:

  1. Liveability - ensure cohesive, strong and vibrant communities to sustain our collective desire for liveability.
  2. Diversified economy - build an even more diversified economy driven by the delivery of goods and services that are customised and tailored to the needs of consumers and citizens.
  3. Inclusivity - share the dividends of economic growth inclusively and equitability across Queensland to maintain a harmonious society and restore trust in economic, social and political institutions.

Greig said: “The Confidently Queensland report is part of Deloitte’s Shaping Future Cities research series, and was very much informed by our diverse and influential Queensland Steering Committee.”

The Confidently Queensland Steering Committee includes Michael Pennisi, CEO QSuper; Anne Cross, CEO, Uniting Care Queensland; John Wagner, Chairman Wagner’s Group; Greg Hallam CEO, LGAQ; Frankie Carroll, Director General Department of Infrastructure, Local Government & Planning; Raynuha Sinnathamby, Managing Director Springfield Land Corporation; Geoff Hogg, MD Queensland, Star Entertainment Group; Lynda O’Grady, Non-Executive Director & Chairman of the Aged Care Financing Authority; Georgie Somerset, Vice President, AgForce Queensland; Stephen Tait, CEO, Chamber of Commerce & Industry Queensland; Jordan Duffy, Co-founder Buckham & Duffy; Professor Peter Hoj, Vice Chancellor and President, UQ; and Michael Roche immediate past CEO, Queensland Resources Council.

Endnotes:

1. Shaping Future Cities is Deloitte Australia’s pre-eminent thought leadership series on the economic and social future of Australian cities and regions. Inspired by the recent Designing Western Sydney report, the Confidently Queensland Steering Committee, in collaboration with Deloitte Access Economics and numerous other industry leaders, subject matter experts and Queenslanders from across the State, teamed to co-design this report, aimed at developing an overarching economic and broader policy narrative - only this time for an entire state.

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Louise Denver
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