Singapore is a world away but it could give Canberra something to aspire to. Photo: Meric Dagli.
It was unashamedly aspirational and probably needed to come from a relative outsider, but it had a certain ring to it and was designed to make the audience stop and think about what Canberra could become in the decades ahead.
Canberra should be the Singapore of Australia, Canberra Business Chamber CEO Greg Harford declared at the RSM Leading Cities event at Old Parliament House on a freezing Friday morning.
“It’s time Canberra believed in itself a little bit more,” he said in his opening remarks.
“It seems to be an innate view from some of our decision-makers that we can’t or that we shouldn’t compete vigorously to be, for example, the Singapore of Australia.
“But I’d argue that should be precisely our ambition.”
A Kiwi who has been in the national capital for a couple of years, Mr Harford is impressed with what he has found and with an outsider’s perspective has laid down a challenge for Canberrans and those who govern us, both federally and locally.
“We really need to be working very hard to get policy settings right, help businesses start, attract firms here and most importantly help them grow in scale,” he said.
Putting aside the polar opposite weather of the two cities and Singapore’s historically strategic location, there is enough common ground for Mr Harford’s bold call not to be that far-fetched.
Like Singapore, Canberra is a small land mass with few natural resources to rely on for revenue and, of course, its origins had some strategic imperatives. Some will quip that the ACT is also a one-party state
Singapore has developed from a trading post to a global financial centre with a reputation for innovation. While government is Canberra’s key activity, the ACT has also looked to innovation to diversify its economy, highlighting education, renewable energy, tourism and technology, including cyber security.
Both emphasise liveability as a key asset, although the debate will rage over just how many towers Canberra can tolerate.
CEO Canberra Business Chamber CEO Greg Harford: Get the policy settings right. Photo: Michelle Kroll.
In both places the role of government is pivotal but the days of being only a public service town are long gone with a thriving business sector working in concert with government and sometimes in spite of government.
Although at present some businesses are doing it tough, and Mr Harford says 40 per cent say they won’t make a profit this year.
For Mr Harford it is a question of government getting policy settings right to encourage the kind of business and skills growth that will create an even more prosperous city state.
The event heard how the three Rs – regulation, red tape, and a risk averse bureaucracy more intent on saying no than yes – are holding back the dynamism that will drive Canberra forward.
RSM economist Devika Shivadekar said the other big driver should be skills-based immigration, overseas and domestic, including attracting and retaining the brightest and best students with the promise of well-paid jobs.
“So a good way to do that is naturally to invest more in the universities that we have here, some of the best ones,” she said.
“You show them what Canberra has to offer and they stay. They choose Canberra over Sydney. They choose Canberra over Melbourne.
“The only way to do that is to target them young, target them when they’re in the universities, and then give them opportunities to stay in the city.”
Canberra Airport boss Stephen Byron is naturally outward facing and has been looking to link Canberra internationally for years. That will happen he says, another step towards Canberra becoming a global city
RSM’s report Canberra Rising: Shaping a connected and sustainable capital presents the huge potential of the city and how to meet the challenges before us.
More and better housing, including for students; skills, business support; building a business to business market; keeping procurement local, especially for growth industries; and exploit advantages in sustainability and innovation.
It’s a vision not that far removed from the government but in practice business often faces high costs, some as a result of regulation, but also taxes and charges like payroll tax.
Singapore, of course, is low-tax honey pot for businesses and while Australia is a different environment, there should be room for some innovative incentives to foster, attract and retain new businesses that are the right fit for Canberra, as well as reach policy objectives.
Master Builders CEO Anna Neelagama talked about lower charges that create more volume and drive better revenue than would otherwise be collected.
Revenue is a major challenge for the ACT Government with its narrow tax base, something that deters it from reducing the tax burden. Population growth can drive growth but also add to budget pressures.
This is where the Federal Government needs to step in and recognise the special status of the national capital and its role servicing government and the Australian people, and relieve the ACT of some of its more burdensome responsibilities, such as health which absorbs about a third of the local budget.
The type of business growth that befits the knowledge capital and centre of government – say in technology, research and defence – accrue benefits to the rest of Australia not just Canberra.
So yes, Canberra could be Australia’s Singapore, a cooler version in more ways than one.
