By JOHN VAN KLAVEREN
THE Geelong region’s future hangs in the balance, a new report has found.
Geelong had managed to absorb the economic shocks of the last two years but still needed a confidence boost to ensure a robust future, the report said.
The author of Australian Local Government Association’s 2014-15 State of the Regions report was respected economist Dr Peter Brain, who has had close connections with the region over a long career.
Dr Brain said the region had not fallen apart despite headline unemployment rising two per cent since 2012.
“The doom and gloom is not completely justified,” he said.
“It is going to depend on what additional support the region gets from federal and state governments.
“Demonstrating confidence will lead to a willingness to invest in the region.
“Geelong needs some breathing space. If the region can hold the line for a year or two and the roof doesn’t fall in Geelong will show its resilience.”
Dr Brain said the figures in the report were in keeping with the economic shocks to the region.
“There have been some stabilising factors, such as relative housing affordability leading to population growth.
“The stabiliser for Geelong may well be the higher property prices in Melbourne, with people relocating and travelling for work.
“The new transport links helps that and couldn’t come at a better time.
“Another explanation may be the amount of retrenchment pay that has entered the economy but you would expect that to unwind over the next year or so with the full effects of the Ford closure to come.”
The report ranked Geelong at 59 out of 67 regions for economic performance, citing higher unemployment and a productivity drop of 2.5 in real dollars per hour.
The report marked Geelong as a youth unemployment hotspot.
“Unemployment rates for the 15 to 24 year old cohort have risen in the last 12 months (with) Geelong at 18.4 per cent,” the report said.
