Newsroom

24 July 2003

Interview Transcript
Champions of the Bush Chairman John Brown
ABC Victoria, Host Kathy Bedford.

Bedford: In our extended discussion this morning, we look at the fight to keep rural and regional centres from dying. It's been a focus in Victoria for some time. Well how are we doing? John Brumby, State and Regional Development Minister recently pointed out that the regional towns that are prospering have either a strong sense of enterprise or tourist trade.

This morning we'll be looking at your town's level of enterprise. How much investment growth is taking place in regional Victoria?

There has been a number of success stories of late. Woolworths announced in Wodonga on Monday that they're going to put another depot there - just out of town which is a terrific announcement that is going to employ hundreds of people.

Four 'n Twenty Pies are returning to Australian ownership and of course that ownership comes out of Bairnsdale - Patties Pies.

We're going to speak about those wins specifically for the bush shortly, but first John Brown - he's the Chair of Brown Bros Wines and he's also the Chair of Champions of the Bush. A group of high profile country business people set up 18 months ago - he joins us this morning.

John first of all, tell me about Champions of the Bush. How do you actually encourage innovation and growth in rural and regional communities?

Brown: Champions of the Bush is a group of business leaders who are mainly based in the bush and they are setting about trying to turn around the magnetic attraction that the city has for people in the bush; and to instil pride in regional Australia to try and encourage more businesses and investment and improve the economy in the bush.

Bedford: There obviously are barriers aren't there to investing in regional centres?

Brown: I guess there are barriers, we would prefer to call them unique challenges. They are easily able to be overcome. There are many benefits to living in the bush that are able to offset the barriers to businesses coming here.

Bedford: Well, let's look at what some of the barriers are - and you must have faced some of these yourself with Brown Bros Wines. Things like I guess transport is an issue?

Brown: Yes, certainly transport and the long distance and the condition of the roads is important to us. The provision of public facilities like bridges, natural gas and power supply are important to get industry to invest confidently in the bush and provide jobs.
Of course health and education are really important too because if city people are going to be attracted to come and invest and work in the bush they need to know there's good health and good education facilities for their kids.

Bedford: What are the benefits?

Brown: Well the benefits are the much better lifestyle - only 10 minutes to drive to work for most people in the bush and they don't have to battle traffic and traffic lights. Of course the air's much cleaner up here than it is in the cities.
The employment situation in the bush is much more stable than it is in the city so you get loyal employees that stay with you for a long time.

Bedford: With Champions of the Bush you are somewhat of a lobby group aren't you?

Brown: Yes, we see the way that we can make a difference is through lobbying. There are a limited number of us to actually get out there and do things physically. We think it is important that we can lobby governments and people who make decisions that affect the bush and try and get those decisions to be more favourable towards the bush.

Bedford: How important do you think government support is? If you are a business setting up in country Victoria should you expect a bit more support than perhaps what you would get if you were setting up in the city?

Brown: I think it's interesting to note that most of the votes are in the city and of course when the decisions are made at government level the city tends to get the favour of the votes. The bush is a little bit the 'poor cousin' in that scene so we think that we need to lobby hard and have really strong representatives looking after our interests in the bush.

Bedford: The Victorian Government says it's committed to balanced growth right across country Victoria, do you think this State Government is doing enough?

Brown: They are certainly doing a very good job and the recent announcement of Woolworths coming to the Wodonga area is absolutely fantastic. Champions of the Bush has actually been champioining the idea of getting natural gas more widely distributed in regional Victoria and the government seems to have responded to that. And of course other people have been asking for that too.

Bedford: Have they really though? Or is just going to be a couple of centres pretty close to Melbourne that are going to get that natural gas that industry so needs.

Brown: They've put something in the order of $70 million up for communities to work with to find where natural gas will be really beneficial. I believe itÕs a good incentive, a good initiative to see where it's appropriate.

Bedford: On a Federal Government level - in a couple of weeks we're expecting the Federal Government to hand down a business development analysis. Have Champions of the Bush had any involvement in that?

Brown: Yes. One of our members has contributed to that study and we look forward very keenly to see what the totality of that report is going to be. We'll be watching it with interest and obviously there are going to be recommendations in it that Champions of the Bush will get behind and support.

Bedford: What do you think the feel is at the moment in country Victoria? Do you think the climate is positive for investment and growth?

Brown: I think the climate in country Victoria is positive certainly but I think city people see us as a bit of the 'poor cousins'. There are lots of good businesses in the bush that are really succeeding and doing very well and yet the city people still seems to see us as all about drought, fires and floods maybe - when we get rain again properly.
They see us as a bit of 'doom and gloom' in the bush - that seems to be the image that is portrayed. We're keen to change that image.

Bedford: How do we change that image?

Brown: I think it's about talking to people and challenging the media and people who consider the bush to be the 'poor cousin' and just point out that we've got some great things going here.
You mentioned a few minutes ago the move of Patties to take on the Four 'n Twenty Pies business. That's a really positive move and it indicates confidence by those people that the bush can do it.
You see lots of other industries in the bush that are really flourishing. Look where the wine industry is going at the moment.

Bedford: Do you think generally though John, that big business still sees more barriers than benefits when it comes to investing in regional areas?

Brown: I think that's probably true but I think it's a marketing job and it's up to the leaders of the bush to turn that image around.

Bedford: Not just investment wise with business, would you like to see more of State super funds supporting country development?

Brown: That's a really interesting point - what's happened with superannuation. Since superannuation came in several years ago now, a very significant amount of capital from the bush is actually drained off into the city.
We all pay our 9% superannuation now and that goes into city-based funds. Mostly when those funds are reinvested by superannuation companies they go into city projects or even offshore. There's a very small proportion of it comes back to the bush.
There was a time before the compulsory superannuation went into place that most of that money was actually spent locally and invested locally. So I think the bush has done remarkably well to survive 9% of our earnings going to city-based investment.

Bedford: How can we turn that around? Do you think the Federal Government is interested in hearing that we need more of those funds coming to country areas again?

Brown: I think the Federal Government has certainly indicated that they would like to support the bush and this new study that's about to be released shortly is an indication that they want to hear answers and solutions.
If you look at it from another angle. Those of us in the bush who are entrepreneurs and who are making investments, don't find that there's a shortage of capital. There's plenty of banks and organisations offering funds to support business providing you've got a good business plan.
I think what we really need in the bush is the entrepreneurs and the leaders who take the risk and are prepared to set up businesses and organisations.

Bedford: More people like yourself John. John Brown, Chair of Brown Bros Wine. If it is about marketing and getting a positive message out there is there a slogan that youÕd like to see targeted to the big corporate players.

Brown: I'd say have a look at the bush, it's a great place to invest and it's a great place to live.

Bedford: And you're certainly doing itÉ thankyou for your time. John Brown, Chair of Champions of the Bush.

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