Managing economic transition by preparing for growth

NEVER has it been more important for us to look after small business in Victoria and, more specifically, in the Yarra Ranges.
Like most domestic economies around the world, we are experiencing a complete and inevitable restructure as we shift from a manufacturing base of large companies to specialised and high quality manufacturing, and a more service-oriented economy.
For government, the hot button issue requiring management is the speed of the transformation.
Slow change could see us fall behind our competitors.
But change that is too rapid could result in the complete dislocation of our workforce if they are not retrained and ready for new employment.
This begs the question of government – what can we do to minimise the fallout?
The cheaper and easier it is to change, the more likely business will adapt quickly and be able to afford the change rather than have to close altogether.
Two significant costs to business are logistics and red tape.
Government has the power to influence these costs.
Cumbersome, unnecessary red tape and infrastructure that cannot take increased demand from growing populations make it harder and more expensive to do business.
The cost of such inefficiency ultimately gets passed on to consumers, which is why so many in the Yarra Ranges are feeling the pinch of higher living costs today.
When living costs are high – we cut back our personal spending which forces business to make cutbacks and, sadly, it is often jobs that have to be cut because the other expenses are less flexible.
Complementing a strong infrastructure program should be brave reform to regulation, or costs will continue to increase.
No longer can we afford to tolerate waste, inefficiency and the status quo.
Now is the time to be bold and visionary and define what we want our economic future to look like.
We need accessible education for a bright and versatile workforce.
We need better roads and transport to open up access to more local and international markets that stimulate business expansion.
We need less top heavy businesses and government departments so there is more capital available for investment in projects that will keep us ahead of our international rivals.
Perhaps, most of all, we need the will of our leaders in government to make it all happen.
I am, like many Victorians, disappointed that the East West Link won’t be proceeding.
It was a road project that would have cut delivery times and saved costs for growers and manufacturers in the Yarra Ranges.
With the Victorian Budget now upon us, I urge the Andrews Government to fund infrastructure projects that will fill the significant void of not having an East West Link.