Strong regional universities are central to driving regional development and central to increasing regional prosperity – according to a new report by the Australian House of Representatives Select Committee on Regional Development and Decentralisation. 

The report, Regions at the Ready: Investing in Australia’s future, says the ‘pivotal’ role regional universities play in regional development extends beyond the provision for tertiary courses and conducting research.

“Regional universities drive innovation and change, connect well-informed people and groups, develop local leadership and human capital, and enhance the social and cultural capital of regional towns and cities,” the report concludes.

The committee was impressed by evidence of ‘catalytic projects’ in regional universities. 

“Such initiatives highlight the potential of regional universities to design and deliver local strategies, and attract regional investment,” it added. 

The committee recommended that the federal government strengthen the role of, and provide better support for, regional universities as pivotal institutions for social and economic development in regional areas.

The committee chair, Damian Drum, MP, said in an introduction that there were four categories of investment in regional Australia. The first was investment to maintain the status quo and base level of service and amenity. 

The second and perhaps most important was catalytic investment – investments which attract further investment and lure other businesses into a co-location. 

The third is investment in capacity building of rural communities, particularly education and training and leadership development.

Finally, there is investment in human capital.

The report cited the establishment of a university as one of several examples of catalytic investment, which can set off a “chain of related outcomes including population growth, education and employment opportunities, improved social and cultural capital, and related infrastructure investment. All of which can markedly influence the economic and social prosperity of regional towns.”

Universities Australia Chief Executive Catriona Jackson said the report's commentary was another powerful reminder that strong universities are the driving forces in regional development. But the report’s findings made the current financial squeeze on universities make even less sense. 

Beating heart of economies

"Strong regional universities are the beating heart of many regional communities and economies," Jackson said.

"They help to keep young people in our regions, educate regional workforces, attract new residents, foster regional industries, drive local growth and innovation, maintain essential community facilities, and help regional communities to thrive," she said. 

"Yet, with each passing day, the university funding freeze will cut off more of that vital blood supply." 

The report notes the importance of sustained government investments to maintain a "universal base level of service and amenity" and capacity building in education and training.

Jackson said ending the funding freeze and restoring Australia's uncapped system of university places would be the fairest way to realise that vision of universal access. 

"Remember regional Australians are half as likely on average to have a university education compared with city dwellers. We have no chance of closing that gap if the freeze continues." 

Jackson said the report’s finding that ‘catalytic investments’ build a critical mass in a particular sector and pull in further business investment is “precisely why the proposed closure of the AU$3.8 billion [US$2.8 billion] Education Investment Fund makes no sense". 

That fund “is the last remaining source of capital funds for growth-generating education and research facilities – the exact sort of facilities that can attract further investment in our regions", she said.