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Regional Development Barwon South West Committee

Submission on the Parliamentary Inquiry into Farm Sector Workforce Capacity

August 2011

Contacts

Bruce Anson Chair Regional Development Australia Barwon South West Committee Phone: 03 5559 4814 Email: Banson@.vic.gov.au

Robert Byrne Acting Regional Director – Barwon South West Department of Planning and Community Development Phone: 03 5223 2104 Email: [email protected]

Contents

ABOUT US 4

BARWON SOUTH WEST 4

FARMING IN THE BARWON SOUTH WEST REGION 5

REGIONAL DEVELOPMENT AUSTRALIA INITIATIVE 6

REGIONAL SKILLLED MIGRATION 6

GREAT SOUTH COAST INDUSTRY WORKFORCE DEVELOPMENT STRATEGY 7

OTHER RECOMMENDATIONS 9

COMMITTEE MEMBERS 10

REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

ABOUT US

Regional Development Australia (RDA) is a partnership between the Australian, state and territory and local governments to support the growth and development of Australia's .

The RDA Barwon South West Committee is one of 55 RDA Committees across Australia. The Committee comprises of representatives from business, industry, government, education and training. To achieve maximum input and consultation its membership includes cross-representation with other regional organisations such as G21 Region Alliance, Committee for Geelong, the Committee for Portland and the Great South Coast Group.

The Committee was established with a mandate to provide advice to both the Victorian and Australian Governments.

BARWON SOUTH WEST REGION

The Barwon South West region of stretches from the tip of the Queenscliff Heads to the border of . The region has a population of approximately 350,000 people and includes some of Victoria’s fastest growing municipalities. The region has strengths in manufacturing and agriculture, and is transitioning to more knowledge-intensive industries. Our landscapes are of international significance and our power infrastructure positions us well to become a centre of new energy production.

The region comprises of two sub-regions: the G21 sub-region and Great South Coast. The G21 sub-region encompasses the local government areas of Greater Geelong, Queenscliffe, Colac Otway, Golden Plains and Surf Coast. The Great South Coast encompasses the local government areas of Warrnambool City, Moyne, Corangamite, Glenelg and Southern , with Colac Otway also forming part of the sub-region.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

FARMING IN THE BARWON SOUTH WEST REGION

The Barwon South West region of Victoria has a strong history in agriculture. The agricultural, forestry and fisheries industry employs an estimated 9,469 people 1 in the Great South Coast sub- region and 825 people 2 in the G21 sub-region. Farming is therefore a significant employer in the region.

Dryland grazing (sheep, beef and dairy) is the predominant agricultural activity in the G21 sub- region, although there is also broad acre cropping, horticulture and intensive animal farming (pork and poultry) as well as other agricultural pursuits.

The Great South Coast (GSC) sub-region is responsible for the highest levels of agricultural production in dairy, wool and meat in Victoria with the Corangamite and Moyne Shires ranking second and third in the nation in terms of gross value of dairy production for local government areas.

The agricultural sector (excluding forestry and fisheries) is a material economic generator for the GSC contributing some $2 billion of total output (gross revenue) per annum; over 8,600 jobs; and over $1 billion per annum in value added. 3

The GSC dairy industry produces approximately forty per cent of Victoria’s milk and a quarter of the national yield. It contributes significantly to the economic and social structure of the sub-region, being responsible for about one-third of economic activity. By 2025, the GSC dairy industry is targeting to increase milk production by up to 50% based on today’s output. Dairy is one of the sub- region’s highest export earner.

The GSC primary industry sector extends beyond dairy activity to include extensive beef and sheep grazing, broad acre cropping, forestry and wild catch fishing. The sector is highly export orientated with most of the sub-region’s wool, wheat and dairy products exported as well as nearly half of all beef and a third of all lamb.

The GSC manufacturing industry has a strong food processing sector that supports the agricultural sector. A significant meat processing industry exists in the sub-region, with large processing and export plants based at Warrnambool and Colac. When combined, meat and dairy food processing sectors in the GSC generate $1.4 billion of total output (gross revenue) per annum; over 1,700 jobs; and $220 million per annum in value added. 4

The G21 sub-region also has a strong meat processing industry with two major abattoirs in Geelong, including a chicken processing plant.

1 Great South Coast Cumulative Impacts Study, 2011, p.10 2 ABS 2006 Census of Population and Housing, Bellarine (Western Division) (State Electoral Division) – Vic and South Barwon (Western Division) (State Electoral Division) – Vic, Industry of Employment (a) by Occupation (b). 3 Remplan, Great South Coast 4 Remplan, Great South Coast 5

REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

REGIONAL DEVELOPMENT AUSTRALIA INITIATIVE

The RDA Barwon South West Committee is working with regional stakeholders to develop a study into the impact of dairy industry growth in the Great South Coast region. The benefit of the growth of the industry in the sub-region is evident, with an increase of investment, jobs, and exports.

The project will develop a strategic plan that will allow government and industry stakeholders to plan, budget and capitalise on this growth. The plan will include:  Growth forecasts, impediments to growth and a set of performance measures to monitor industry growth;  An assessment of the capability of the region (both natural and the economic participants, e.g. industry, government, service providers), to sustainably support the growth; and  The actions necessary to respond to the impacts of this growth on the sub-region, so impacts can be managed and resourced in a timely fashion.

REGIONAL SKILLLED MIGRATION

The objective of the Victorian Government's skilled migration program is to address priority skill issues in regional Victoria which impact on the sustainable growth of industry and regional communities. The program made funds available to Local Government to enable employers to attract skilled and business migrants to regional Victoria, assist them into employment, retain them in employment through progression to permanent residency visa options, and provide flexible support to those individuals and their families to settle into work and life in regional Victoria. Over the past three years, the GSC sub-region has attracted some 120 skilled overseas professionals under the program, including 20 placements in the agricultural sector (eg. dairy farm managers, agricultural technicians). Similarly, the G21 sub-region has attracted 166 skilled overseas professionals with 14 of those placements being in the agriculture sector (eg. agricultural technicians, aquaculture scientists).

The RDA Barwon South West Committee supports regional skilled migration in the short term, and over the medium term, it supports moves to grow the workforce in regional areas like the Barwon South West.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

GREAT SOUTH COAST INDUSTRY WORKFORCE DEVELOPMENT STRATEGY

In May 2010, the Victorian Government completed Stage 1 of an Industry Workforce Development Strategy Initiative (IWDS) in the Great South Coast with the aim to assist industries within the sub- region better plan for and address their skill and labour needs. Workforce development is seen as an important tool to support improved industry performance, improved skills, training and employment outcomes for workers and boost local economies.

The Strategy identified four major industries as being crucial for future economic prosperity in the sub-region, namely  Manufacturing (Food Processing)  Agriculture (Dairy)  Forestry (Timber Plantation)  Transport and Logistics

Extensive consultation with businesses in these industry sectors was undertaken representing 16% of the total regional workforce.

Findings The research highlighted some unique future workforce challenges for the GSC. The impact of unprecedented growth and the emergence of new industry will create additional demand for labour in a market where current demand is not being met. This will also potentially impact on the availability of labour for the farm sector. Businesses in the GSC will be challenged in attracting and retaining their future labour force as well as increasing their investment in training, and developing their labour force. Industry will also require support with strategies to attract labour and improve the image of some industries and to increase the awareness of the employment opportunities in the sub-region.

The significant findings from the research presented some clear messages: 1. Almost 40% of GSC businesses reported job vacancies representing approximately 2.7% of the regional workforce. 2. 62% of businesses in the sub-region expected to increase their workforce in the following 3 years as compared with state wide figure of 35%. Average annual employment growth in all areas within the GSC was forecast to outstrip population growth over the next decade, a rate higher than any other sub-region in the state. 3. 77% of businesses who have attempted to recruit in the past 2 years having experienced difficulty. 4. The focus industries researched are often seen to have a poor industry image, and 53% of businesses highlighted this as key issue in attracting employees. 5. Employers are still predominantly using traditional recruitment methods that are limited to seeking staff only from the local area. 6. They are growing competitive labour cost pressures that will ultimately be at the expense of traditional and established industries without an increase in the overall labour pool. 7. Retention of employees relocated to the area is a significant issue. Given the employment growth trends, this problem will be magnified in the future unless barriers to retention are resolved. 8. Businesses are taking greater responsibility for training their workforce but perceive that a gap exists in the provision of industry responsive training.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

GREAT SOUTH COAST INDUSTRY WORKFORCE DEVELOPMENT STRATEGY (CONTINUED)

Stage 2 of the IWDS saw the formation of Industry Reference Groups (IRG’s) to cover each of the four major centres in the GSC – Colac, Warrnambool, Hamilton and Portland. The IRG's were responsible for identifying industry supported projects to address sub-regional workforce issues. The actions are due to be completed by 31 August 2011.

The IRG’s were aligned with the following industries:

1. Hamilton/Portland IRG: Road Transport 2. Warrnambool IRG: Dairy & Food Manufacturing 3. Colac IRG: Dairy & Food Manufacturing

Listed below are the project aims and methods for each IRG:

(a) Hamilton/Portland IRG: Road Transport Industry Recruitment Strategy The Strategy was launched at Warrnambool on 8 June 2011 by the Hon Richard Dalla-Riva MP, Minister for Employment & Industrial Relations.

Aim: To address a skills shortage of drivers and other occupations in the short and long term in South West Victoria.

Method:  Produce a promotional video and short television advertisements aimed to attract people from other regions to work in a growing industry with many opportunities, in a sub-region offering great lifestyle benefits. The long-term aim is to change the negative public perception of working in the industry.  Capture a potential workforce by creating and advertising a new website and linking it to social media. A Project Manager will collect workforce data outside the perimeters of this project.  Establish for 2012 in South West Victorian secondary schools, a Year 10 Work Experience Program in the industry by linking schools to transport businesses through the Victorian Freight & Logistics Council, .

(b) Warrnambool: Workforce Workshops & Community Ambassador Program (i) Workforce Workshops Aim: To hold workshops to assist employers attract and manage both younger generation and mature aged workforce.

Method: Obtain employer feedback at workshops and create a ‘toolkit’ to assist employers.

(ii) Community Ambassador Program Aim: To establish voluntary community ambassadors who can assist local employers retain staff (and their partners or spouses) relocated from other regions, by providing a point of contact, welcoming support and practical information. The aim is to make their transition from other regions as smooth as possible.

Method: Recruit volunteers who are registered with local Councils as a primary contact point and to keep the business community notified of the program to help ensure it is utilised.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

GREAT SOUTH COAST INDUSTRY WORKFORCE DEVELOPMENT STRATEGY (CONTINUED)

(c) Colac: Review of Colac Apprenticeship Programs Aim: To complete a review of Apprenticeship Programs in Colac to ascertain the completion rate compared to the average national rate of 46%. The project is aligned with the proposed Colac Trade & Training Centre planned to open during late 2012 early 2013.

Method: Qualitative research with a sample of employers, apprentices, group and registered training organisations.

OTHER RECOMMENDATIONS

Sufficient numbers of students are not attracted to work in many of the occupations required by the agricultural industry. More needs to be done to improve the profile and image of the industry and to increase the general awareness of the job opportunities that exist in agriculture and other sectors.

Incentives are needed for employers to release workers for education and training or to encourage individuals to take up relevant courses.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

Committee members

Chair

Bruce Anson – Warrnambool Bruce is the CEO of Warrnambool City Council where he previously served as a senior officer for more than 20 years and is a Fellow of LGPro.

Representing the region on a range of forums, including the Regional Cities Victoria Group, Deakin University Leadership Group, Deakin University Medical School - Greater Green Triangle Clinical School Community Advisory Board, the Great South Coast CEO's Group, Bruce has a good understanding of the issues driving coastal cities as well as the challenges facing rural economies.

Co-Deputy Chairs

Ed Coppe – Geelong Both as elected Councillor and former Mayor, and as a principal of his own firm, Ed has played a major role in the economic development of Geelong. This work and his consultancy in wealth creation and retirement planning were informed by his former role as member of the Mars company’s Superannuation Board of Trustees and his senior marketing and management positions with the company. Ed’s achievements include important contributions to the establishment of the Committee for Geelong and the development of the Geelong Major Events Committee.

Ed is a current Board member and Chairperson of the G21 Geelong Regional Alliance and was a member of the former Victorian Government’s Regional Development Advisory Committee.

Peter Dorling – Geelong Peter Dorling is the current Executive Director of the Committee for Geelong. The Committee for Geelong acts as a think-tank and lobby group for the Geelong region and has as its membership over 120 CEO’s and Company Directors from across the region. In his current position Peter is charged with taking Geelong forward into the 21 st Century and particularly focusing on national and international connections.

Peter holds a Masters Degree in Business Management from the Royal Melbourne Institute of Technology.

Peter is a Trustee of the Committee for Economic Development of Australia, a Director of the Geelong Performing Arts Centre and Chair, Northern Futures Program.

Committee members

Elaine Carbines – Geelong Elaine is the CEO of the G21 Geelong Regional Alliance. She is also Deputy Chair of the Geelong Performing Arts Trust.

Elaine represented Geelong Province in the Legislative Council from 1999 to 2006. She was Parliamentary Secretary for Education and Training, and then Parliamentary Secretary for the Environment.

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REGIONAL DEVELOPMENT AUSTRALIA BARWON SOUTH WEST Parliamentary Inquiry into Farm Sector Workforce Capacity Submission

Committee members (continued)

Committee members (continued)

Elizabeth Coker – Elizabeth is a Councillor and former Mayor of the . She is a journalist and Communications Consultant who had worked for The Geelong Advertiser and The Age newspapers and the Department of Education, Barwon South West region. Elizabeth is Chair of the Great Ocean Road Tourism Destination Management Plan Committee.

Ruth Gstrein – Camperdown Ruth is a Corangamite Shire Councillor who has served three terms as Mayor and has chaired the Great South Coast Mayors Group. An Office Manager at Bostocks Creek Design and Drafting, Ruth is also a Board Member of Camperdown P-12 College, Corangamite Regional Library Corporation and South West LLEN. Ruth represents Corangamite Shire on the Audit Committee, Lakes and Craters Advisory Group, Heritage Steering Committee and Youth Council.

Professor Sue Kilpatrick – Warrnambool Sue is Research Professor of Regional Communities at Deakin University in Warrnambool. Sue has a PhD in the Economics of Education and a Master of Economics in Labour Economics. Sue is passionate about higher education access for rural and remote students and lifelong learning. She is a Board member of the South West Local Learning and Employment Network, the South West TAFE and the Corio Norlane Development Advisory Board. Sue is also member of several education and rural industry-related committees.

Michael Malouf – Geelong Michael is Managing Director of Barwon Water and is also a Director of the Committee for Geelong, G21 Geelong Region Alliance and St Laurence Community Services. In addition, he is Deputy Chair and Director of the Australian Division of the Water Reuse Association and a member of the Geelong Manufacturing Council, Deakin University Engineering Advisory Board, Deakin University Geelong Community Leaders Board and the IWA Executive Council.

Geoffrey White – Portland Geoff is a Glenelg Shire councillor who has served four terms as Mayor. Geoff worked as Human Resources Manager at the Port of Portland Authority. Active in regional planning, Geoff was also Chair of the Great South Coast Municipalities Group and the Alliance of Councils for Rail Freight Development. He is a Board Member of the Committee for Portland.

Committee Vacancy

Tom Lindsey resigned from RDA Barwon South West Committee in May 2011 due to new work opportunities that take him out of the region. This vacancy is not yet filled.

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