There is a population growth problem in pockets of the south-west.
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In Corangamite Shire, the population is tipped to increase by less than 250 people in the next decade, according to latest council data.
The council's long term financial plan paints an ageing demographic and population decline as one of the region's biggest threats.
Figures predict the shire's population to grow just 0.06 per cent, or 238 people, from now to 2030.
For every percentage drop in population we see an identical drop in government support.
- Mayor Neil Trotter
While it's caused concern among councillors, leading demographer Bernard Salt said it wasn't unexpected for a shire with a profile like Corangamite's.
Born and bred in Terang, Mr Salt said part of the population decline was due to farms increasing in size with farmers buying out their neighbours.
"It's interesting because state government figures, which are different to council's, show a continued population loss," Mr Salt said.
"You could say the years between now and 2030 will be Corangamite's toughest time in a demographic sense because it's sitting between two major regional cities, it's caught between Warrnambool and Colac.
"I think what it needs is the duplication of the highway extended to Colac through to Warrnambool.
"In order to secure that I think the federal electorate needs to be marginal, which it's not.
"In that case the commute time from Terang or Camperdown to Colac is reduced and in the 2040s Corangamite blossoms into a commuter zone for there and Warrnambool.
"But if people want that to happen, they need to make Wannon marginal."
The council's annual report showed agriculture was the major driver of the local economy with the industry employing just under one-third of the shire's population.
Mr Salt said slow decline in Corangamite Shire's population wasn't a large issue because the region was so efficient in agriculture.
He said the productivity also meant an increased wealth for those who continued to farm in the area.
"Terang and Camperdown exist on the basis of the economic activity in local area which is dairy farming," he said.
"As dairy farms aggregate, and a farmer buys out a neighbor and that neighbour moves to Warrnambool, the number of people per hectare diminishes. That then has an impact shops and services spiral downwards.
"When you drive through Terang and Camperdown you see spaces in the main street where there used to be shops.
"People in Corangamite are just as likely to go to Warrnambool for a big shop then come back.
"In saying that farms are as efficient as ever and don't need as many farmers and the dairy herds are bigger than ever before due to mechanisation.
"Prosperity is there, but it's concentrated in fewer farms which means mean fewer population which translates into reduced demand in schools, then reduced demand in local towns."
While Coastal Ward areas of the shire such as Timboon and Port Campbell boom with visitors, Mr Salt said tourism marketing needed to be hyper-localised to get visitation in places like Terang and Camperdown.
"Instead of broad-brush marketing competing with destinations like Warrnambool, what it needs is niche specialised tourism for people interested in stone walls or the geology of Mt Leura and Noorat, or stately homes of the Western District, things that are quirky then become a fashionable destination," he said.
He said there were other areas in Australia facing huge issues due to population decline.
"There are communities that are deeply and seriously challenged by population loss but Corangamite, while it's a noble thing to have some community growth, is just as prosperous and farming is just as productive without that," Mr Salt Said.
"It's got pretty good services and access to a major city like Warrnambool with a university and the like, and you can get up to Melbourne and back in a day if you need to.
"It's not out in the middle of the wheatbelt, it's a terrific place, I wouldn't get too hung up on population changes up or down.
"Other communities are facing far more serious demographic issues."
New plan for hinterland towns
Corangamite Shire residents are invited to have their say on a draft strategy for how Simpson and Timboon could become key service centres for the Great Ocean Road and surrounding hinterland.
The draft strategy will be open for public consultation until August 31.
Mayor Neil Trotter, a long-time Timboon resident, said it was an "exciting proposal".
"Even with COVID-19 affecting our economy, it may create a demand in lifestyle properties outside the metropolitan areas but there's limited housing stock available for both purchase and rent," he said.
"Adding to the population base with younger people and family groups is vital.
"For every percentage drop in population we see an identical drop in government support - whether that be roads, schools or community services.
"It's vital to grow our population, we who live here know what a great lifestyle we have, we just have to get better at selling it."
Coastal Ward councillor Simon Illingworth said plans for the two towns had been in the works since 2016.
"It began in 2016 when we organised a futurist town meeting at Simpson which saw a large turnout," he said.
"Now we're looking for developers to invest in rural land, creating employment opportunities and developments once tourism strikes back.
"Prior to COVID stopping our tourism we had local families displaced from rental accommodation with workers from gas plants and cashed-up tourists using AirBnBs.
"Housing was becoming an issue but COVID could be the silver lining opportunity to put this plan forward and get things underway to actually do better and get back on track.
"Melbourne is bursting at the seams, there will be people looking for a sea or tree change and we need to ensure we benefit both individually and collectively and that our towns meet the social and economic challenges ahead."
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