Contrary to what seems to be a widely held belief, it is not an easy matter to make jobs simply materialise in places that have a shortage of employment. It is a difficult and complex business that involves much more than merely rezoning land for business use.
However here’s an outrageous shortcut for developing Melbourne’s west. Why not shift the seat of Government in Victoria – politicians, bureaucrats, departments, the whole kit and caboodle – out of the CBD to somewhere like, say, Werribee?
Such an action would give an enormous boost to the development of the west and reinforce the Government’s new policy of developing significant suburban activity centres. A location like the west makes sense because the weight of future metropolitan growth will have to be north of the Yarra due to environmental constraints in the south and east.
This is a shocking idea but it’s not as far-fetched as it sounds (although I don’t mean to suggest that it would be costless or easy, much less politically tempting).
The standard argument for retaining the seat of Government in the CBD is that high level strategic operations obtain external economies of scale from co-location. Thus the efficiency of government in Victoria is greatly enhanced by face-to-face contact between politicians and bureaucrats on the one hand, and captains of business on the other. Further, the CBD maximises access to high human capital workers because of its excellent accessibility, particularly by rail, from all parts of the metropolitan area. Read the rest of this entry »