Home » Editorial: avoiding the gloom of economic downturn

Editorial: avoiding the gloom of economic downturn

The State of the Regions report released last December states that the impact of the global financial crisis, climate change and moving towards a low carbon emissions economy, as well as the ongoing issue of inadequate broadband infrastructure, will continue to widen the gap between regions in Australia doing well and those not sharing the same benefits.

In addition, the Public Health Information Development Unit (PHIDU) at the University of Adelaide has recently released its Social Health Atlas of Australia (Third Edition).*

Using the Australian Bureau of Statistics’ Statistical Local Areas, this atlas highlights geographic variations in rates of death from avoidable causes and the prevalence of chronic diseases and health risk behaviours, such as smoking and obesity. This data is then related to variations in socioeconomic indicators, such as the proportion of jobless families, long term unemployment and the level of housing stress within each area.

The atlas shows that people living in areas with low socioeconomic indicators, whether this is in urban or rural areas, have a greater chance of dying young from chronic disease, suicide or accidents than those living in areas with higher incomes, education and employment levels.

The expected slowdown in our economy along with predicted job losses will undoubtedly impact upon some Local Government areas more than others. Areas that have ridden high on the resources boom are likely to feel the pinch, as will regions still suffering from drought.

To address the slowdown, the Federal Government has clearly demonstrated that it is prepared to forego what has become a habit of record Budget surpluses. Its recent direct payments to some of the most vulnerable groups in our communities, the $300 million to councils under its Regional and Local Community Infrastructure Program and larger infrastructure projects via Infrastructure Australia are just some of the Government’s recent stimulus packages.

Local Government is likely to receive further funding to boost local economies. But councils need to have a good understanding of the groups within their area that are most adversely affected.

At the same time councils need to be encouraging local businesses and residents to avoid the path of gloom and doom and talking down the economy. Downsizing of staff will immediately reduce spending capacity and quickly spiral local economies even further into hard times, and possibly Australia into recession.

2009 is certainly going to be a challenging year and there is no doubt that people wherever they reside will be expecting all spheres of government to step up to the plate.

*The Social Health Atlas of Australia is available online from the PHIDU website at www.publichealth.gov.au

A Local Government version will be released in late January providing data for every Local Government area in Australia, rather than Statistical Local Areas.

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