To:
Dear Lilian,
Please find attached the City of Greater Geelong's submission to the Parliamentary Inquiry into Regional Centres. It would be appreciated if you could let me know when you have recieved this email and the submission.
Kind Regards
Darren Gray Industry Development Officer Economic Development City of Greater Geelong 2nd Floor 131 Myers Street PO Box 104 Geelong Vic 3220 Tel:(03) 5272 4882 Mobile: 0418 355 928 Fax: (03) 5227 0855 Email:[email protected]
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(See attached file: Regional Centres Inquiry COGG
Submission(final).doc)
PARLIAMENTARY INQUIRY INTO REGIONAL CENTRES OF THE FUTURE
SUBMISSION BY THE CITY OF GREATER GEELONG TO THE PARLIAMENT OF VICTORIA - RURAL & REGIONAL COMMITTEE
31 October 2008
Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
Introduction The City of Greater Geelong welcomes the opportunity to present its views to the Parliamentary Inquiry into Regional Centres of the Future. It is understood that the inquiry, to be undertaken by the Rural & Regional Committee, is focusing on the development of regional centres as places of economic, environmental, social and cultural innovation to help meet the challenges of future population growth in the State.
Geelong is Victoria’s largest provincial city, the second largest in the State outside Melbourne, and the eleventh largest city in Australia. It is strategically located within one hour’s drive south-west of Melbourne on the shores of Corio Bay. The growth and development of Geelong will be central to meeting the future challenges of population growth within the State and assist in relieving infrastructure and other pressures on Melbourne.
This submission has been prepared following consultation within Council and addresses the five areas that the Committee has been asked to report on to Parliament as detailed in the inquiry terms of reference:
• How to encourage new and existing businesses, industries and government authorities to establish operations in regional centres;
• Development of industrial land to support the economic base of regional centres;
• Effective investments in infrastructure to encourage business and industry development in regional centres, and to support and encourage further population growth in regional centres;
• Measures to promote strong social capital and high quality-of-life outcomes in growing regional centres; and
• Examples from other jurisdictions where promotion of population growth in regional centres has successfully occurred.
1. How to encourage new and existing businesses, industries and government authorities to establish operations in regional centres;
The theory of comparative advantage implies that skills, resources and capability is not homogenous across regions. In other words, there is a level of specialisation in capability. Initiatives such as the Provincial Victoria Campaign are excellent, but need to highlight the comparative advantages of doing business in regional centres
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
as well as promoting lifestyle opportunities. Geelong, for example, is unique as the only regional biotechnology centre within Australia. It offers world-class infrastructure, easy access to the biotechnology capital of Australia (Melbourne), affordable land, a great lifestyle and a collaborative research community. Geelong has the opportunity to grow its biotechnology industry, but this opportunity needs to be communicated to prospective investors not only from a local level, but also at a Victorian Government level.
Financial incentives are becoming increasingly important in the attraction of footloose investment. Competition for business should be seen from a global perspective as advanced economies compete for relevance and emerging economies such as Brazil, Russia, India and China come to the fore. Incentives alone do not attract investment, but they do add significantly to the value proposition. There may be a number of locations globally that meet the requirements of a particular business looking to grow. It may make perfectly good business sense for the company to invest in a Victorian regional city, but financial incentives may be required to eventually secure the investment in a highly competitive global environment.
A skilled labourforce is critical for development and enhancement of regional centres and is an essential component for the attraction of knowledge-based industries. The development of programs in conjunction with local education and training organisations to foster a philosophy of life-long learning and the funding of labour transition programs to retrain displaced workers, particularly those who have lost jobs in the traditional manufacturing sector, could act as a catalyst to attract new business investment as has been seen elsewhere in the world. For example, the state of North Carolina in the United States has been successful in transforming its economy from traditional industries to knowledge-based industries on the back of a trained and ready to go workforce.
The provision of world-class Information & Communication Technology (ICT) infrastructure is fundamental for the growth of advanced economies and all knowledge-based industries. Regional areas need to have cost-effective access to the latest ICT technology if they are to compete successfully for business investment and to assist existing companies to stay within the region and to help them grow.
There should be an integrated and co-ordinated approach to facilitation of investment enquiries between the Victorian Government and Local Government Authorities. In
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
2008, Satyam, a global ICT firm, announced plans to establish a software development and learning centre in Geelong creating 2,000 jobs over eight years. The City of Greater Geelong, Victorian Government and Deakin University worked together to secure the biggest industry investment in the Geelong region for decades. This level of co-operation between local and state governments should be the standard applied to all investment enquiries.
The relocation of the Transport Accident Commission headquarters to Geelong is an example of how Government can make big impacts in regional economic development. The direct and indirect impacts of this initiative will be huge. More projects of this type will help build regional economies and provide the catalyst for further investment.
Industry cluster development is a powerful economic development tool. A number of regional cities have established industry clusters or networks that hope to grow into industry clusters. The City of Greater Geelong in cooperation with the Victorian Government has facilitated development of biotechnology, ICT and food industry clusters within the Geelong region. The Geelong Manufacturing Council is investigating the formation of industry clusters for a Multi User Facility and a manufacturing cluster centred on Innovation and Research Development. A strong foundation has been provided for further development of these industry clusters that could see major jobs growth and business investment. Funding support for regional industry cluster development should be continued and enhanced.
The lifestyle advantages of regional centres is a major strength for Victoria. A key feature of the knowledge economy is the rise of the knowledge worker or “creative class” as described by social scientist Dr Richard Florida in his book The Rise of the Creative Class. Florida describes the creative class as an emerging economic force made up of scientists, engineers, intellectuals and various types of artists, to name but a few, who generate new ideas for products and services and develop high-tech businesses. Florida’s research shows that regions that can attract and retain the creative class prosper, while those that do not stagnate. Lifestyle is a major drawcard for the attraction of the creative class. Lifestyle is a strength of regional centres such as Geelong and should be leveraged to attract and retain the creative people that add economic and social vitality to cities.
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
A sustainable water supply is essential for the growth of regional centres. Sustainable water resources are vital to Geelong’s long term prosperity. The region’s economy and the everyday lives of residents depend on a reliable supply of water. Initiatives that promote sustainable water management practices and/or development of infrastructure to ensure sustainable water supply will assist in promoting growth in regional centres. Similarly, the introduction of Carbon Pollution Reduction Policy requires regional areas to look towards alternative source of energy supply and implementation of carbon off-set programs to reduce greenhouse gas emissions. It is suggested that Government funds be allocated to undertake an economic and social impacts assessment of the effects of the Carbon Pollution Reduction Scheme on regional centres, particularly for those such as Geelong which have a high number of emissions intensive trade exposed industries.
Development of industrial land to support the economic base of regional centres Industrial parks of the future will be people-focused and include cafes, bars, childcare facilities, gymnasiums, swimming pools, banks and retail shops. Developers are realising the more services and facilities available to business the more attractive they become to tenants. Similarly, businesses are realising that to attract and retain skilled staff in a highly competitive global market they need to provide a high amenity environment for workers. Funding and policy support that encourages the development of high amenity employment precincts will act as a catalyst to attract knowledge-based industries to regional areas and promote job growth.
Flexibility of industrial zonings to allow for mixed-use activity will assist in attracting investment and creating jobs in regional centres. Knowledge-based industries have differing requirements to the more traditional industries. Knowledge-based industries require significantly more office space to operate and undertake intensive R&D activities along with a manufacturing or warehouse function. Often the requirements for substantially more office space exceed that permitted within industrial zones. Flexible land use zonings would assist in the attraction of knowledge-based industries to regional areas, where land costs are usually lower when compared with Melbourne.
At times there are major cost implications caused by delays in planning processes resulting in developers not proceeding with development proposals. It is understood
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
that the State Government has recently commenced a review of the Planning & Environment Act. It is hoped that the outcomes of this review will streamline processes and facilitate increased development in regional centres.
It is essential to plan for the development of future industrial estates to ensure demand for industrial land does not outstrip supply. Funding for strategic planning work that identifies suitable locations for future estates will assist in securing investment and provide long-term job growth opportunities. It is also important that State priorities for the use of industrial land within regional centres do not supplant local priorities.
In many areas regional Victoria there are pockets of Crown land that are unused and surplus to community requirements. An audit of this land and an assessment as to the appropriateness of its use as industrial land may provide a vital economic boost for many rural and regional communities, particularly where there are otherwise limited opportunities to create new industrial precincts.
2. Effective investments in infrastructure to encourage business and industry development in regional centres, and to support and encourage further population growth in regional centres.
Geelong’s proximity to Melbourne is a major strength and significant contributor to industry development and population growth. However, bottlenecks for commuters on the Westgate Freeway and delays in rail services have the potential to impact negatively on future growth. Infrastructure investments that improve commuter and business access to Melbourne will promote growth in Geelong region. Easy access to Melbourne is a key to Geelong’s future growth. The Eddington Report (East West Link Needs Assessment) proposes a set of visionary and vital initiatives that can transform the nature of Melbourne and, by extension, the Geelong Region. New initiatives being explored at a local level to enhance connectivity with Melbourne include a ferry passenger service operating from Geelong and the Bellarine Peninsula.
OECD studies have shown that the level of ICT application used in business is directly related to corporate and regional economic performance. Access to world- class ICT infrastructure underpins economic growth in all sectors, particularly
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
knowledge-based industries. Household access to the latest ICT technology also promotes the growth of home-based businesses, which generates future employment as small businesses grow into larger businesses. Infrastructure such as “fibre-to-the- premises” will be fundamental to realising the vision for Geelong’s major urban growth area, Armstrong Creek and providing employment opportunities for residents living in the area.
Investment in transport infrastructure including rail and road that enhances movement between smaller regional townships and regional centres such as Geelong is essential for sustained business and population growth and to increases the appeal of regional locations as a place to live and work. Easy access to health and community services and higher-order job opportunities may encourage more people to make the move to smaller regional towns located near major centres. Examples include duplication of the Princes Highway between Geelong and Colac and extension of the Geelong Ring Road to link to the Surfcoast Highway and potentially construction of an east-west link to the Bellarine Peninsula.
Geelong has a number of major infrastructure assets of state and national significance. Avalon Airport, Geelong Port, CSIRO Australian Animal Health Laboratory, CSIRO Material Science & Engineering, Deakin University and the Geelong Technology Precinct (GTP) generate large numbers of direct and indirect jobs for the Geelong region. There is potential to generate further jobs growth via strategic investment in these infrastructure assets, particularly by the provision of a rail connection to Avalon Airport which would see increases in passenger movements and consequently jobs.
There are also a number of major projects in the planning that have the potential to generate new jobs and stimulate population growth. These include Western Wedge, Osborne House Marine Precinct, Yarra Street Pier, Geelong Conference Centre, and Mineral Springs Bath House.
Technology Parks have become a key platform for the growth of knowledge-based industries in advanced economies. Geelong has two such precincts: the Geelong Technology Precinct (GTP) based at Deakin University’s Waurn Ponds Campus and the Armstrong Creek Western Employment Precinct located within the City’s future growth area. The GTP’s focus is on growth of knowledge-based industries
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
specifically the intersection of biotech, nanotech and infotech. Development of the GTP is critical to diversification and transformation of Geelong’s economic base. The Western Employment Precinct is a proposed development located close to Deakin’s Waurn Ponds Campus that has the potential to build on the research activities undertaken at the GTP. It will be a high amenity “Business Park” style development offering a broad range of location and tenancy options to encourage the growth of knowledge-intense industries. Funding to support infrastructure development in both precincts would act as a catalyst for growth.
Universities are powerful generators of regional economic growth. A recent study by the Massachusetts Institute of Technology has shown a strong correlation with the presence of a university in a regional centre and the growth high-tech industries within that area. Infrastructure developments that enhance the capacity and capability of Deakin also benefit Geelong.
3. Measures to promote strong social capital and high quality-of-life outcomes in growing regional centres
Maintaining basic services in small regional townships is necessary for the quality of life of local residents and to attract new residents to live and work in the area. Banks, petrol stations, supermarkets and health practitioners not only provide essential services they help create a sense of community. Similarly, programs that promote ICT literacy and provide access to ICT technology for older adults living in smaller townships can build social connectivity and quality of life. Additionally, it is essential for the Government to at least maintain funding of social infrastructure such as schools, libraries, senior citizen centres and recreation facilities to provide quality of life outcomes in growing regional centres.
Universities and TAFE Colleges also contribute to the social capital of regional cities as they ensure a constant supply of young, creative and talented people to an area and assist in retaining local talent. Many of these young people go on to live and work in the area. If not, they often become unofficial advocates for the regional city in which they have studied as they move through their careers with some eventually returning to where they completed their education. Encouraging the development of satellite university campuses in regional locations where there would not have otherwise been a presence promotes strong social capital outcomes.
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Parliament of Victoria Inquiry into Regional Centres of the Future Submission by the City of Greater Geelong 31 October 2008
4. Examples from other jurisdictions where promotion of population growth in regional centres has successfully occurred.
Two examples of other jurisdictions where promotion of population growth in regional centres has successfully occurred include the “Gateway” cities in Ireland and the City of Winston-Salem in North Carolina, USA. Ireland has adopted a plan to identify nine “Gateway” cities in regional areas in order to achieve a better balance between the regions in terms of economic and social development and to ease the pressures in the Dublin metropolitan area. The Irish model is worthy of consideration. The City of Winston-Salem is a city that in many ways is similar to Geelong. Winston-Salem has a population of 227,000, offers an enviable provincial lifestyle and is rated amongst the highest in the United States for value for money on several national housing cost indexes. Winston-Salem’s legacy industries include manufacturing, textiles, and tobacco. The City has identified a number of strategic growth sectors and is pursuing cluster development in Advanced Manufacturing, Logistics & Distribution, ICT and Life Sciences and Biotechnology. The Piedmont Triad Research Park is leading the world in regenerative medicine breakthroughs. Winston-Salem has made an impressive economic transition and is an example of what Geelong may be able to achieve in the future.
Conclusion The City of Greater Geelong commends the Parliament of Victoria for undertaking this inquiry and believes that a greater focus on opportunities in regional centres will help in developing those centres and their supporting towns whilst helping reduce infrastructure and other pressures on Melbourne.
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