SUMMARY
Population growth has been an issue of national concern at various points in
Australia's history, and has long been an important issue for NSW and Sydney,
the most populous State and city in the country respectively. Population issues
were recently propelled to the centre of public debate following the
publication of the Federal Treasury's 2010 Intergenerational Report.
Considerable debate about issues and priorities in managing population growth
in Australia followed the Report's projection that the national population
would reach 35.9 million by 2050. Recent studies suggest that population growth
is a subject which is attracting more intense public concern.
This briefing paper provides an overview of:
key pieces of data concerning population growth and the ageing of the
population, nationally and in NSW;
key government reports and initiatives responding to issues presented by
population growth at the Federal, NSW and inter-governmental levels;
responses to the national Sustainable Population Strategy and the National
Urban Planning Policy, and
recent public debate and academic commentary in relation to population
issues.
Population statistics: The Australian population has been growing
annually at an average rate of 1.6% since the 1960s, reaching a recent peak of
over 2% in 2007-08 (a rate not seen since the 1960s), before declining to a
rate of 1.5% growth in the year to December 2010. Australia had an estimated
resident population (ERP) of 22,477,400 at 31 December 2010. In the same period
the ERP of NSW reached 7,272,158. At 30 June 2010, the ERP of Sydney was
4,575,532.
Based on trends in fertility, life expectancy at birth, net overseas
migration, and net interstate migration, as at 2008 the ABS projects that, on
median projections, Australia's estimated population could reach 35.5 million
people by 2056. By the same measure, the NSW population is projected to reach
10.2 million people by 2056, while Sydney alone is projected to reach a
population of approximately 6.98 million people in that time. [2.3]
The main factors contributing to population growth in recent years in
Australia, as in NSW, are net overseas migration (the number of arrivals in the
country less the number of departures - NOM) and natural increase (births minus
deaths). Despite having among the lowest population growth rates (1.2%) of all
Australian States and Territories in the 12 months prior to December 2010, NSW
had the largest population increase (in terms of numerical increase) of all
Australian States.
In that period, NOM contributed to 58% of the State's population growth,
while natural increase contributed to 40%. NSW also lost 11,200 people to
neighbouring States as a result of interstate migration in that time—the
largest net loss among States and Territories. The NSW Department of Planning
notes that interstate migration has a significant impact on population
redistribution in Australia. Unlike Queensland and Western Australia, which
experienced net interstate gains, over the past decade NSW has had an average
net interstate migration loss of 24,000 people. However, in the twelve months
prior to March 2010, NSW experienced its lowest interstate loss since 31 March
1998.
In recent years losses to interstate migration experienced by Sydney have
been significantly offset by the numbers of international migrants settling in
the city. Sydney, Perth and Melbourne are the cities which contain the highest
share of Australia's migrant population (based on Productivity Commission
figures, between 2001 and 2006 Melbourne attracted more international migrants
than Sydney). NSW was the intended State of residence of 30%, or 42,267, of the
140,610 people who migrated to Australia on a permanent basis in 2009-2010.
However, between 2006 and 2009 the key factor contributing to the growth in NOM
in NSW was temporary migration—primarily international students.
[2.1.2]
Regional differences: Population growth rates vary across NSW.
Between 2006 and 2009 the fastest growth rates were experienced in the
Sydney and Richmond-Tweed statistical divisions (SDs) at an average growth rate
of 1.7% per year. At the same time the Far West of NSW was the only statistical
division to have experienced average annual population decline of -0.3% since
2006. [2.1.2]
The NSW Department of Planning reports that future population growth in NSW
is projected to be strongest in South Western Sydney (113% increase between
2006 and 2036) and North Western Sydney (52%), parts of Central Sydney (60%),
the South Coast (42%), the Sydney-Canberra Corridor (42%) and the Illawarra
(22%). Growth is also projected for a number of regional centres, including
Albury, Bathurst, Coffs Harbour, Dubbo, Griffith, Port Macquarie, Tamworth and
Wagga Wagga. At the same time, a number of areas with populations under 5000,
largely located in remote parts of the State, are projected to experience a
fall in population over the next 15 years. As a result of having a faster
projected population growth rate than the rest of NSW, Sydney is projected to
increase its share of the State's population from 62.8% in 2006 to 66% in
2036. [2.3]
Population ageing: In recent years, the issue of population
growth has increasingly been considered in the context of the ageing of the
population, which has been identified as one of the most significant
demographic challenges facing the country. In 2008 the NSW Government reported
that the number of people in NSW aged over 65 was projected to increase from
0.9 million in 2006 to 2.4 million by 2051, with those aged over 65 to
outnumber children aged below 15 years by 2018.
While all regions in NSW will undergo population ageing, its extent will
vary across different regions of the State. Coastal regions are expected to
experience the largest percentage increase in people aged between 65-84 and
over 85 years, with the Mid-North Coast, Nowra Bomaderry, and Illawarra
statistical areas projected to experience the greatest increases. The ABS
attributes this trend partly to 'sea change' and 'tree change' movements as
older people move away from employment centres in their retirement. At the same
time it is projected that the population of Sydney will be younger than the
overall population of NSW, with people aged over 65 comprising 18% of Sydney's
population by 2036, as compared to 21% of the NSW population. The areas of
Sydney currently with the highest proportion of people aged 0-4 years are
Auburn (8.2%), Blacktown (9.0%), Camden (9.3%) and Liverpool (9.0%).
[2.2.2]
Government reports and policy statements: Issues to do with
population cut across several policy areas and all levels of government. In the
course of developing policies over recent years, the NSW and Federal
Governments have used formal consultative processes to engage experts,
stakeholders and the general public on a range of issues related to population
growth.
Commonwealth Government: The Federal Government responded to
issues raised by population growth by undertaking to develop Australia's first
national population strategy. The 'Sustainable Population Strategy' was
developed and released in conjunction with Australia's first National Urban
Policy in May 2011. The Federal Sustainable Population Strategy is focused on
managing population growth by attempting to balance economic and community
imperatives with environmental concerns, with the aim of achieving economic
prosperity, liveable communities and environmental sustainability. A focus on
regional development is a key element of the Strategy. Both the Sustainable
Population Strategy and the National Urban Policy recognise that responding to
issues presented by population growth depends on effective intergovernmental
cooperation between Federal, State and local governments. [3.1.2][3.1.3]
The Sustainable Population Strategy met with criticism from a number of
stakeholders for lacking detail and failing to set targets. In contrast, the
National Urban Policy met with a more positive response with the majority of
stakeholders welcoming the release of the policy as an important step in
achieving greater planning and coordination for urban areas.
[3.1.2][3.1.3]
State and local governments: In several key areas, including
urban planning and infrastructure provision, the primary responsibility for
policy, program implementation and service delivery rests with State and local
governments. Local government associations, such as the Australian Local
Government Association, the Council of Capital City Lord Mayors and the
National Growth Areas Alliance have expressed their support for the development
of a national population strategy and a national urban policy. While
recognising that local governments are most directly involved with local
communities, these bodies also emphasise the importance of collaboration
between Commonwealth, State and local Governments in dealing with population
change. [3.2.3]
A number of NSW Government policies directly address issues raised by
population growth, including the State Plan and the Metropolitan Plan for
Sydney, released by the Kenneally Government in December 2010.
At this early stage, the O'Farrell Government has focused on pursuing
decentralisation and regional development as a means to alleviate pressures
exerted by population growth in Sydney. This policy direction finds an echo in
the strong focus on regional development in the Federal Sustainable Population
Strategy. [3.3]
One of the key mechanisms for directing migration to regional areas is the
implementation of State Migration Plans, which take the form of MOUs between
the Minister for Immigration and Citizenship and respective State and Territory
Governments. State Migration Plans allow States and Territories to sponsor
applicants under a range of occupations nominated under the Plan to fill skills
shortages in their local labour markets. They are intended to provide State and
Territory Governments with a greater level of flexibility to address specific
skills shortages and local labour market needs within their jurisdiction in a
targeted way. The NSW State Migration Plan came into effect in March 2011.
[3.3.3]
Issues in the population debate: Debates about population are
complex and many sided. The key issues presented by population growth
include:
the role and management of immigration;
the environmental impact, particularly on natural resources and biodiversity;
pressures on infrastructure, particularly housing and transport;
the relationship between economic prosperity and population growth; and
the impact of growth on communities and quality of life.
The Scanlon Foundation Survey 2010 found that there had been a substantial
shift in public attitudes towards population growth and immigration as compared
to previous years. The Survey found that 51% of respondents considered that a
projected population of 36 million in 2050 was 'too high', while 42% felt it
was 'about right' or 'too low'. The Survey also registered a high level of
negative sentiment towards the adequacy of government infrastructure provision
for future population growth. Respondents in NSW registered the highest level
of negative sentiment with 59% viewing infrastructure provision as poor. The
2010 Survey also noted a marked shift in attitudes to immigration, with those
who felt that the immigration intake was too high increasing from 37% in 2009
to 47% in 2010. Nevertheless, the Survey found that, although there was
heightened public concern about population growth, in the view of respondents
other issues warranted greater concern, such as the economy, employment, and
environment.
[4]
A number of commentators, as well as a parliamentary inquiry, have supported
the introduction of a national population policy. This support for a planning
oriented population policy echoes the views of the National Population Council.
As far back as 1992 it advised that, as population issues have implications for
several areas of service delivery and policy making, they needed to be
incorporated into national planning processes. [4]
Population growth is likely to continue for the foreseeable future with much
of that growth projected to occur in Sydney and in NSW. It remains to be seen
how effective efforts at coordinating national responses to the issues
presented by population growth will be in delivering sound policy outcomes.
[5]