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Report to Cabinet Latrobe Valley Ministerial Taskforce

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Report to Cabinet Latrobe Valley Ministerial Taskforce Report to Cabinet by the Latrobe Valley Ministerial Taskforce "FRAMEWORK FOR THE FUTURE" Launched by the Hon Steve Bracks Premier 22 June 2001 The Place To Be 711.3099 00107691 456 LAT:F Framework for the future : report to Cabinet FOREWORD. Infrastructure Library MESSAGE FROM THE LATROBE VALLEY MINISTERIAL TASKFORCE A new sense of unity is emerging in the Latrobe Valley. This became evident during our widespread community consultation over the future of the Latrobe Valley. The Ministerial Taskforce was established by a Community Cabinet meeting in Moe late last year. It was charged with identifying opportunities to refine existing Government programs "to better promote development in the Latrobe Valley." The Terms of Reference for the Taskforce listed three key objectives: • boost business and community confidence in the Latrobe Valley; • facilitate longer-term economic growth in the Latrobe Valley as a whole; and • improve the economic and social opportunities for those most • I. disadvantaged in the Latrobe Valley . l l l. The Ministerial Taskforce began its hearings against the backdrop of a Government decision on an Energy Park in the Latrobe Valley, that disappointed a number of key stakeholders, including the Latrobe City Council. An expert Taskforce found that an Energy Park in the Latrobe Valley was not viable because the wholesale cost of electricity would be far too high. The proponents of the Energy Park agreed that it was time to move on and look to the future of the Latrobe Valley from a perspective other than the development of a big project. Many of their ideas and aspirations are reflected · in this report. Certainly, our report implements a number of recommendations from the Energy Park Taskforce, particularly their strongly made point about an integrated marketing campaign "to retain existing industry and infrastructure support and attract further industrial investment and employment." Our mission was to work together with all stakeholders in the Latrobe Valley to implement some realistic, effective and achievable goals. We said at the outset there would be no quick fixes or any easy solutions flowing from our inquiry. Having worked through the process we repeat this assertion. The Government has laid the framework for the future but it is up to the whole Latrobe Valley community to make it work. · The report we have produced does not favour one region of this State over others. The Latrobe Valley has been doing it tough for at least ten years and has received very little in terms of special assistance from either the Federal or State Governments. This report is an attempt to redress that imbalance. If the spirit of unity that emerged at the end of our consultations in the Latrobe Valley is carried forward, and we are confident it will be, your future success ·is guaranteed! As well as the economic imperatives in this report there is a strong sense of social justice which is a reflection of the personnel on the Ministerial Taskforce. The Taskforce also takes this opportunity to acknowledge the work of the project director Dr Ron Ben-David from the Department of Treasury and Finance and the various departmental officers from across Government who worked with him to develop a whole of government approach to the issues and concerns of the Latrobe Valley. And to all those from the Latrobe Valley community, particularly the Latrobe City Council, Gippsland Development Limited and the Gippsland Trades and Labour Council who argued their causes in a robust,r but constructive, manner, thank you for showing such faith in your region's future. Your collective spirit is the one thing which will make this "Framework for the Future" a living reality. ~u.te~~ John Brumby MP Candy Broad MLC Keith Hamilton MP Minister for State and Regional Minister for Energy and Minister for Agriculture Development (Chair) Resources .·0v.... t~ ;/ / . \.../'~ Lynne Kosky MP Bronwyn Pike MP Minister for Post-Compulsory Education, Minister for Housing and Aged Care Training and Employment TABLE OF CONTENTS Executive Summary 2 1. Introduction 5 2. The Process 8 3. Profile of the Latrobe Valley 1 1 4. Local Issues 16 5. Recommended Actions 21 5.1 Civic Infrastructure & Transport 25 5.2 Marketing & Investment Facilitation 38 5.3 Industrial Development 47 5.4 Research & Development 57 5.5 Skills, Education & ICT 63 5.6 Building a Dynamic Small Business Sector 69 5.7 Tourism Opportunities 73 5.8 Working with Communities 77 Appendices A. Terms of Reference 87 B. Profile of Latrobe Valley 88 C. Summary qf Submissions 104 D. Discussion Paper 128 E. Minutes of the Latrobe Valley Round-Table 137 (23 March 2001) 1 EXECUTIVE SUMMARY On 11 December 2000, at the Community Cabinet meeting held in Moe, Premier Steve Bracks announced the formation of the Latrobe Valley Ministerial Taskforce. The Ministers appointed to the Latrobe Valley Ministerial Taskforce were John Brumby MP, Minister for State and Regional Development (Chair), Candy Broad MLC, Minister for Energy and Resources, Keith Hamilton MP, Minister for Agriculture, Lynne Kosky MP, Minister for Post-Compulsory Education, Training and Employment, and Bronwyn Pike MP, Minister for Ho.using and Aged Care. The Terms of Reference (see Appendix A) for the Latrobe Valley Ministerial Taskforce state that its main task is to identify actions that will support three key objectives, namely: • to boost business and community confidence in the Valley; • to facilitate longer-term economic growth in the Valley as a whole; and • to improve the economic and social opportunities for those most disadvantaged in the Latrobe Valley. From the outset, the Ministerial Taskforce established a set of parameters to guide its research and the development of its recommendations. These additional parameters included: • obtaining a first-hand understanding of the issues and concerns of the community in the Latrobe Valley; • responding to these issues and concerns in a whole of government and holistic manner; • identifying and pursuing opportunities for a more joined-up government response to issues and concerns in the Latrobe Valley; and • developing a response that would ensure that the Government would not be required to revisit the Latrobe Valley in a similar mann~r in the future. This findings and recommendations of this report achieve all of the aforementioned objectives. When combined, the recommended actions of this report provide the most comprehensive and extensive regional assistance package ever assembled by a Victorian Government. 2 The report contains fifty recommendations with a total estimated cost of $105.8 million. The recommended actions of this report include new Government initiatives for the Latrobe Valley as well as the better targeting of existing programs towards the region. In addition, the recommendations of this report will activate a number of existing Government commitments to the Latrobe Valley. These initiatives will build on the work already undertaken by Taskforce Ministers to bring about a $250 million investment in a new peak demand power station by Edison Mission Energy. The new power station will have a generation capacity of 300 megawatts and will be built in the Latrobe Valley by next summer. The project will create 200 construction jobs in the Latrobe Valley this year. The Ministerial Taskforce undertook an extensive consultation process that resulted in 59 submissions and two Taskforce visits to the Latrobe Valley. In addition, over 100 stakeholders were interviewed by the Taskforce Secretariat. Although unemployment in the region is clearly the primary concern of the overwhelming majority of stakeholders, there is broad agreement that the Government has very limited capacity to create jobs. Most stakeholders sought Government support to create the conditions that would attract investment and new residents to the Latrobe Valley-with economic growth and employment to follow. The four broad issues that summarise the concerns identified by stakeholders as requiring Government support were: • developing an environment that would attract and facilitate investment in the Latrobe Valley by new and existing business; • addressing the poor image of the Latrobe Valley in both the broader community and amongst local residents; • ensuring that the skills capacity of the Latrobe Valley is replenished and reflects the needs of the individuals (especially young people) and enterprises in the emerging knowledge economy; and • re-engaging and uniting the community and restoring community capacity and leadership. The eight themes around which the Latrobe Valley Ministerial Taskforce's . initiatives and recommendations in response to the above issues have been developed are: 3 1. Civic Infrastructure & Transport 2. Marketing & Investment Facilitation I A 3. Industrial Development !(,, f;., 4. Research & Development 5. Skills, Education & ICT 6. Building a Dynamic Small Business Sector 7. Tourism Opportunities 8. Working with Communities The Latrobe Valley Ministerial Taskforce concludes its duties with the completion of this report. The Taskforce believes it is essential that the momentum it has generated is maintained - both within Government and the Latrobe Valley. To this end the Latrobe Valley Ministerial Taskforce has also recommended some community based structures and initiatives to ensure that the community's desire for inclusion, participation and collaboration are fulfilled. Furthermore, the Taskforce has recommended successor arrangements to carry forward the momentum that has developed
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