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Regional Economic Development Strategies

In 2018, the NSW Government assisted local councils to develop Regional Economic Development Strategies (REDS) based on the concept of a Functional Economic Region (FER).

FERs are made up of one or more Local Government Areas in regional NSW that work together to create smaller economies with strong economic links.

The Centre for Economic and Regional Development led this work and managed a panel of expert contractors to collaborate with councils and local stakeholders on their REDS.

The REDS provide a clear economic development strategy for the region. They guide government investment in economic development initiatives in regional NSW, through programs such as the Growing Local Economies Fund and other government grant programs. The REDS provide a realistic pathway for job creation and regional development.

Engine industries 

Some NSW Government programs use the REDS to determine the targeted industries that are most likely to support economic growth in a region.

Engine industries vary by region, normally have a competitive advantage and tend to trade their goods outside the local area or sell their services to non-locals.

Retail and restaurants are ineligible. Examples of engine industries include:

  • Agriculture
  • Forestry
  • Manufacturing
  • Mining
  • Tourism
  • Aged Care Services [1]

In rare cases, population-serving industries that are typically ineligible may extend service provision beyond the FER. For example, specialist health services provided to patients outside the FER. These industries may be deemed eligible where it can be demonstrated that such service ‘exports’ are material to the FER.

Other eligible industries are those that provide key inputs or services to an eligible industry identified in the REDS. For example, transport and logistics are eligible where it addresses transport barriers faced by eligible industries such as agriculture and manufacturing.

If you are considering applying to a NSW Government fund you are encouraged to get in touch with the concierge, or relevant NSW Government program administrator, to discuss your eligibility.

Example of eligible industries identified in REDs 

REDS

Frequently asked questions

The REDS identify regional specialisations and engine industries and are the primary evidence base to identify and prioritise NSW Government investment and policy decisions to support regional economic development.

Local government boundaries do not always reflect the boundaries of regional economies and economic interaction. REDS are based on FER boundaries, which mostly include multiple LGAs, to better target investments aimed at growing or establishing regional competitive advantage. The size and nature of the FER will differ across the state and will be informed by economic data from the Australian Bureau of Statistics.

The REDS provide a clearly articulated economic development strategy for the region which can be used to inform and guide the economic development activity of councils and business. The strategies may also be used to support grant applications to the NSW and Commonwealth Governments.

The REDS Bushfire Addenda were developed following the 2019-20 bushfire season. The REDS Bushfire Addenda have been prepared for the 22 most impacted FERs. They identify economic impacts of the bushfires on the region including impacts to engine industries and focus areas and priorities for economic recovery. The original REDS and the REDS Bushfire Addenda will help guide place-based bushfire recovery in NSW.

Contact

Email the Centre for Economic and Regional Development with your enquiry about the REDS.

 References

  • [1] Identified as eligible where the service offering materially attracts new residents, indicated by a significant net inflow of retirees.
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