In addition, the NSW Office of State Revenue, with over 1,300 jobs, will be relocated to new offices within Parramatta. Penrith will benefit as the new HQ of NSW Sport and
Recreation and Liverpool with the NSW Community Relations Commission.
This announcement builds on the successful relocation of Office of Fair Trading in Parramatta.
Premier Barry O’Farrell’s announcement at the NSW Business Chamber was welcomed as a major milestone in the Decade of Decentralisation Strategy. Decentralisation of public servants to Western Sydney makes sense for a number of important reasons.
First, locating jobs in Western Sydney helps to address an estimated deficit of 200,000 jobs. Without serious employment solutions for Western Sydney, in 25 years the deficit is predicted to grow to 300,000.
Decentralisation will provide a multiplier-effect, encouraging private businesses to co-locate in the West, resulting in an overall net benefit of jobs in Western Sydney.
Second, record levels of spending on major transport infrastructure such as $11.5 billion for WestConnex, $3 billion on NorthConnex and $8.5 billion on North West rail link will ease congestion but with 30% of people in Western Sydney travelling to and from the Sydney CBD for work each day and 23% of people spending more than 100 minutes a daytravelling to and from work, more jobs across Western Sydney complements road and rail infrastructure projects.
Having jobs close to where people live helps improves individuals’ wellbeing, an important contributor to productivity.
Third, locating offices in Western Sydney can save NSW tax-payers money. Jones Lang LaSalle commercial leasing expert Scott Butler says: “With prime Sydney CBD rents in excess of $1000 sqm net, Parramatta has the potential to offer commensurate five Green Star rated buildings at half the occupancy cost. The accessibility of the Parramatta CBD provides access to a greater human resources pool while occupancy costs at circa $500 sqm net represent half the price of the prime Sydney CBD.”
Fourth, relocation of jobs to Western Sydney will be the catalyst for major building projects. In 2011, the Treasurer announced a change in Government policy – that the NSW
Government would rescind its “no pre-commitment policy” to new office space.
This is a significant strategic policy in the direction of the Government leasing practices. Developers will no longer need to build a building first and then face the difficulty in attracting government tenants. Builders can now use government pre-commitment as the security to start projects.
Shortly, the Minister for Finance will announce how the private sector can become involved – calling for expressions of interest from the private sector for new office space to accommodate government departments.
Long-term leasing of government accommodation in partnership with private-enterprise makes financial sense.
The development of the river cities of Parramatta, Penrith and Liverpool are vital to the future prosperity and growth of the whole of Western Sydney.
The decentralisation of government jobs to these cities plays an important part in this growth. Government decentralisation of jobs is a necessary step towards building a poly-centric city model where the cities of Western Sydney can grow to be stand-alone enterprise centres, delivering services and opportunities to the residents across the region, and I support the ongoing push for relocation of jobs to the cities of Western Sydney.
The decade of decentralisation is now.
