Program 6 Economic Development

Program 6 Economic Development- Annual Plan and Budget 2015-16

Including Forward Estimates 2016-17 to 2018-19

Presented and submitted to the Council on Wednesday, 17 June 2015 by the Right Honourable the Lord Mayor of Brisbane (Councillor Graham Quirk) Economic Development

Program Goal

The goal of the Economic Development program is to implement the Brisbane Economic Development Plan 2012-31 and the Brisbane 2022 New World City Action Plan, to ensure Brisbane is prepared for future growth in our economy and infrastructure.

Program Description

The Brisbane Economic Development Plan 2012-31 establishes a vision that in 2031 Brisbane is regarded as a top 10 lifestyle city and global hub for resource and related service industry businesses. Its high performing economy is known for its strong business and cultural links with Asia.

The Brisbane Economic Development Plan addresses five key priorities:  Building Brisbane's global reputation as Australia's New World City  Productive Brisbane  Talent attraction and global connections  Lifestyle city  Leadership, engagement and implementation.

As part of the delivery of the Brisbane Economic Development Plan 2012-31, Council has:  appointed only the second Chief Digital Officer in the world  delivered the continued rollout of the Digital Strategy  delivered the Asia Pacific Screen Awards  grown the Brissie Greeters Volunteer greeting program  attracted hotel development to meet market demand.

To ensure Brisbane meets its full potential for economic growth and employment generation, this program will continue this journey and will have a strong focus on investment attraction and jobs growth through showcasing Brisbane's economic strengths and unique lifestyle benefits.

A continued focus by Council on planning for and supporting Brisbane's growth, generating investment and bringing skilled workers, international students and visitors are key roles to ensure that Brisbane can continue to respond to the opportunities generated from the resource sector and build long term economic prosperity.

Brisbane's growth also depends on delivery of the infrastructure required to meet the demand. To ensure a coordinated and timely approach to infrastructure delivery, the program includes a coordinating planning role for the Brisbane Long Term Infrastructure Plan 2012-31.

This program will support Brisbane's long term economic growth by assisting and actively participating in the implementation of a range of strategic economic capacity building projects, informed by ongoing research and analysis. It will also strengthen alignment across Council to ensure that all Council strategies and program plans support Brisbane's potential for achieving long term economic prosperity.

Brisbane Marketing is the city’s economic development board and the custodian of the ‘Australia’s New World City’ brand campaign. Brisbane Marketing successfully uses funds from Council and other partners to deliver outcomes of the Brisbane 2022 New World City Action Plan. This report emphasises the importance of economic development coordination and connectivity, identifies the city’s growth sectors, the need for proactive engagement of our next generation and the fulfilment of a Team Brisbane approach with a wider South East Queensland outlook over the next seven years. Program Outcomes and Financial Summary

Program Outcomes Anticipat Proposed Anticipat Proposed Anticipat Proposed ed ed ed 2014-15 2015-16 2014-15 2015-16 2014-15 2015-16 $000 $000 $000 $000 $000 $000

Expense Revenue Capital 6.1 - Growing Brisbane's Economy 1,891 655 150 - - -

6.2 - Removing Barriers to Growth 428 344 - - - -

6.3 - A City of Many Skills 439 469 - - - -

6.4 - Deliver World Class Economic Precincts 15,299 16,515 14,007 13,650 902 -

6.5 - Delivering the Brisbane 2022 New World 18,013 20,809 210 600 - - City Action Plan

6.6 - Export Market Development 149 150 - - - -

36,219 38,942 14,367 14,250 902 -

2016-17 2017-18 2018-19 $000 $000 $000

Recurrent Operations Contracts 1,002 975 1,004

Outcome 6.1 Growing Brisbane's Economy

Outcome description

Facilitating strategies and activities to attract new business investment and generate employment growth for Brisbane.

Where we are now

Brisbane continues to enhance its status as Australia's New World City at the heart of one of the fastest growing regions in Australia. Brisbane is Australia's fastest growing metropolitan city and is projected to continue rapid employment growth over the next two decades.

Brisbane is also the main engine of growth for South East Queensland and the most significant economy in Queensland.

Employment, population and economic growth in Brisbane and across South East Queensland are expected to be strong over the next 20 years.

Supporting these forecasts requires a strong focus on industries where Brisbane demonstrates a locational advantage including appropriately skilled workers, suitable and affordable business accommodation, market access and infrastructure. Effort is directed to ensuring that the city provides the best possible environment to support new and existing business growth and investment.

Where we want to be

To deliver the strong growth forecast for Brisbane, we need to be globally recognised as a world class location for business. Brisbane will be home to more regional and global head offices of multinational companies and will have secured the strong employment growth projected.

Key attributes of the city, which will support growth among existing businesses and attract new investment into the city, include an efficient regulatory system, seamless customer service to investors, world class infrastructure and the provision of services which are responsive to business requirements.

Strong profiling of the city will ensure that Brisbane is recognised as a profitable business location, both nationally and internationally. The development of strong links with other economies and the identification of investment opportunities will ensure that Brisbane continues to generate the employment and economic outcomes that will sustain a strong and prosperous economy.

Strategy 6.1.1 Strategic Capacity Building

Assess and address gaps and enhance Brisbane's capacity to sustain growth in jobs, exports and investment.

Service 6.1.1.1 Supporting Key Industries

The objective of this service is to undertake targeted activities including identification of new investment opportunities in Brisbane and developing information materials such as newsletters and factsheets that will be distributed widely to existing and prospective investors.

This will be driven from ongoing dialogue with local business to evaluate the performance of the Brisbane economy and identify emerging opportunities.

This service will:  conduct quarterly Lord Mayor's Business Round Table meetings  continue Lord Mayor’s Business Forums and Business Leaders Workshops  coordinate, manage and stage events and activities that highlight Brisbane's multicultural community and international relationships.

Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 351 354 Revenue - -

Projects 2015- 2016-17 2017- 2018- 16 18 19 $000 $000 $000 $000

Vision 2022 - Enhancing Brisbane's Economic Capital - - - - Growth Expens 244 - - - e Revenu - - - - e

Service 6.1.1.2 Recognition of Brisbane`s Small Businesses

The purpose of this service is to undertake projects in partnership with key stakeholders to recognise Brisbane's small businesses.

Outcome 6.2 Removing Barriers to Growth

Outcome description

Ensure that appropriate infrastructure projects are identified and sequenced to support projected employment growth, population growth, exports and investment.

Where we are now

Under the South East Queensland Regional Plan 2031, Brisbane is required to deliver an additional 156,000 dwellings between 2011 and 2031 to accommodate our growing population.

In addition, National Institute of Economic and Industry Research employment forecasts suggest that by 2031, the net figure for the number of people travelling into Brisbane each day to access their employment will increase to more than 300,000. This means substantially increased pressures on intra-regional transport networks across South East Queensland to bring workers into Brisbane. Rapid technological change in the global economy requires the delivery of new infrastructure solutions to meet changing demand. At the same time, Brisbane's infrastructure must be resilient and serviceable in the face of severe weather and other unexpected events.

Where we want to be

Brisbane's infrastructure will continue to improve its current levels of service assisting the city to attract investment and sustain the export growth required to achieve the forecast employment growth and associated wealth potential.

Strong alignment with both Queensland and Australian governments ensures that effective transport infrastructure is fully funded and implemented in a timely fashion. Journey to work and journey to shop and school times remain within acceptable limits to maintain a well-functioning city which is attractive to highly skilled workers.

Strategy 6.2.1 Whole-of-government Infrastructure Coordination

Ensure the timely delivery of infrastructure necessary to support the efficiency and competitiveness of the city's economic activities by contributing to infrastructure, and supporting local, state and federal government policy alignment across the South East Queensland region.

Service 6.2.1.1 Improving Infrastructure to Reduce Congestion and Promote Growth

The objective of this service is to assist the planning and coordination of infrastructure projects being delivered to support Brisbane's long term economic growth.

This service will:  provide secretariat and support services to the Lord Mayor's Infrastructure Council  promote coordination and alignment with the Queensland Government and other Council programs in applying strategic economic principles and forecasts to evaluate future infrastructure needs articulated in the Brisbane Long Term Infrastructure Plan 2012-31, the Brisbane City Plan 2014 and Queensland Government infrastructure plans.

Outcome 6.3 A City of Many Skills

Outcome description

Ensuring Brisbane enterprises have ready access to a workforce of sufficient size that has the necessary capabilities to support business demand.

Where we are now

Movement of skilled workers to Brisbane is occurring through international and national migration to South East Queensland. As other cities and regions compete for a pool of skilled workers, it is important that Brisbane strengthens its national and international profile as an attractive city and dynamic economy offering a diverse range of employment opportunities.

Where we want to be

Brisbane will have a highly skilled labour force that is a major attractor of new business investment to the city. This will include recognised excellence in professional, technical and managerial occupations. These highly skilled workers will have chosen to live in Brisbane because of its exciting employment opportunities, its high amenity and attractive lifestyle.

Brisbane has a highly effective transport network that enables workers to have choice and flexibility in where they work and live, thereby attracting appropriate levels and mixes of skilled workers. The increasing presence of globally successful companies in Brisbane raises the city's profile as a place that offers dynamic high quality employment opportunities which in turn continues to attract skilled workers to the city and the region. International students are attracted to Brisbane as they are appropriately supported with infrastructure, transport accessibility and a high-quality lifestyle. Strategy 6.3.1 A Desirable Place to Work and Study

Identify opportunities for Brisbane to increase its attractiveness as a place which provides excellent employment choices, educational opportunities and the appropriate infrastructure to ensure ease of access to jobs and study locations.

Service 6.3.1.1 Enhancing Brisbane's Skilled Workforce

The objective of this service is to investigate and promote opportunities to enhance Brisbane as a desirable place to work and study.

To assist Brisbane employers to access a skilled workforce, activities in this service include:  investigations of key issues affecting skilled workers and students in Brisbane  drawing on evidence-based research, the development of policies, advices and briefings on issues affecting the capacity of the city to attract and retain skilled workers  Council's annual Civic Reception for International Students.

Outcome 6.4 Delivering World Class Economic Precincts

Outcome description

Support Brisbane's key high economic growth locations by facilitating the strategic planning and activation of these key precincts to maximise their potential for economic success.

Where we are now

The City Centre, comprising the CBD and fringe (including Fortitude Valley, Spring Hill, Milton, South Brisbane and Woolloongabba) is an economic asset.

It covers less than 1% of the surface area of Brisbane Local Government Area, contains 4% of Brisbane's population and yet accounts for approximately 30% of metropolitan Brisbane's gross regional product, 32% of employment and 18% of all businesses.

A significant focus has been placed on renewing and activating Brisbane's key retail and entertainment precincts.

The Queen Street Mall is Queensland's premier retail destination and activation of the space has increased to over 1000 events across the financial year attracting 26 million visitors a year.

The Chinatown Mall has been reinvigorated as a more pedestrian and retail friendly space while the newly upgraded Brunswick Street Mall will remain a mecca for live music and artistic expression, but also continue to grow its daytime economic offering.

Australia TradeCoast is one of Australia's fastest growing port precincts. Australia TradeCoast's capacity to expand, in close proximity to both air and sea port facilities and serving one of the fastest growing regions in Australia, makes it an attractive location for establishing and growing significant export industries. The South-west Industrial Gateway also leverages off road transport links to the rest of the state and interstate.

Where we want to be

Brisbane's future success relies on our city being a vibrant, activated and cultural New World City. Business and economic growth will be optimised if our precincts continue to be vibrant and attract significant visitor numbers and promotion. Precincts such as Fortitude Valley, Queen Street Mall, Woolloongabba and West End will continue to grow as vibrant centres of activity, increasing cultural opportunities and attracting both visitors and residents.

Precincts such as the CBD will become global centres of commerce with increasing international and multinational company representation attracted by good transport and communication networks, skilled workers and high amenity local services. Strategy 6.4.1 World Class City Centre

Deliver a city centre that is clean, safe, well maintained and fit for purpose for a 24 hour economy.

Service 6.4.1.1 City Centre Place Management

The objective is to facilitate Council’s delivery of a world class city centre for business, visitors and community through integrated place management of the 24 hour economy.

This service provides for a City Centre Place Manager to be a single point of responsibility for the coordination, integration and facilitation of the delivery of Council services, initiatives and major projects in Brisbane City Centre (including the CBD and Fortitude Valley).

Council will also commence delivery of a free Wi-Fi system across the CBD expanding the current offering in Queen Street Mall and several CBD parks.

Projects 2015- 2016-17 2017- 2018- 16 18 19 $000 $000 $000 $000

Commencement of Stage 1 - CBD Wi-Fi Capital - - - - Expens 1,133 - - - e Revenu - - - - e Living Villages Development Levy Capital - - - - Expens 56 56 55 56 e Revenu 75 75 75 50 e

Strategy 6.4.2 Queen Street and Valley Malls

Provide support for the Queen Street and Valley Malls, including marketing, promotion, operational expenses and capital improvements.

Service 6.4.2.1 Queen Street Mall Operations

The objective of this service is to operate and manage the Queen Street Mall with the goal of continuing to enhance the economic vitality and amenity of the Mall.

Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 6,571 7,320 Revenue 10,902 11,446

Service 6.4.2.2 Queen Street Mall Activation and Marketing

This service comprises Queen Street Mall promotions delivered by Brisbane Marketing. It includes brand and tactical advertising to position and promote the Brisbane CBD and Queen Street Mall, Australia's most successful pedestrian mall, as the main shopping and entertainment destinations in Brisbane. Colourful, vibrant entertainment such as emerging music of all genres will continue to support our brand as Australia's New World City and provide a unique shopping and entertainment experience.

Events will be rolled out in 2015-16 to activate the precinct and attract residents and visitors. Previous successful campaigns including Christmas celebrations and the Farmers’ Markets in Reddacliff Place will be continued.

Activities include the following:  Queen Street Mall branding  CBD marketing  Activation of the Mall  Christmas celebrations. Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 4,943 5,253 Revenue - -

Service 6.4.2.3 Valley Malls Operations

The object of this service is to promote, operate and manage the Valley Malls with the goal of increasing the economic vitality and amenity of this key economic precinct. Council will continue to provide a clean, safe and accessible mall.

Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 1,551 1,878 Revenue 2,055 2,129

Service 6.4.2.4 Valley Malls Activation and Marketing

The objective of this service is to support marketing of the Valley Malls, including the 12 month program of multicultural festivals. The centrepiece of the marketing program is the Valley Fiesta which will continue to provide a platform for emerging live music artists and generate business for Valley traders.

In recognition of the strong connection the Chinese people have with the Valley, Chinese New Year and Autumn Moon celebrations will continue to be funded from this service. These festivals will utilise the redeveloped Chinatown Mall which provides significantly more area for activation than was previously available.

Malls Management will also oversee a regular entertainment program of live performances for the recently refurbished Brunswick Street and Chinatown Malls. To support the recent redevelopment of the Brunswick Street Mall, Council will focus on activation, especially of the daytime economic offering.

Outcome 6.5 Delivering the Brisbane 2022 New World City Action Plan

Outcome description

Deliver key economic priorities as outlined in the Brisbane Economic Development Plan and Brisbane 2022 New World City Action Plan to drive employment and economic growth across Brisbane.

Where we are now

Brisbane is Queensland’s main economic driver representing almost half of Queensland’s economic output. In 2012 Council adopted the Brisbane Economic Development Plan 2012–2031 which set targets for Brisbane’s future economic development.

Brisbane enhanced its reputation as a New World City by hosting the G20 in 2014. This has created a set of new opportunities to deepen, diversify and accelerate the growth of the city’s globally competitive exports.

Following extensive consultation with a range of business and community leaders, the Brisbane 2022 New World City Action Plan (the Action Plan) was developed. This presents a framework to strengthen and diversify the Brisbane economy. The Action Plan focuses on delivering several economic priorities that will build a resilient, export focused New World City economy, providing new opportunities and an unmatched quality of life.

Where we want to be By 2022, Brisbane is an eminent New World City establishing itself as a globally-connected, prosperous city with an enviable, irresistible lifestyle. Brisbane’s economy will be well placed to deliver on the economic targets outlined in the Brisbane Economic Development Plan 2012-2031.

At a local level the Economic Development and Action Plan will work to ensure that by 2022 Brisbane offers an exceptional quality of life and provides a diverse range of employment opportunities. The city will have highly visible, connected and productive precincts and will be known to be a diverse, open and friendly city where business, governments, institutions and the wider community work together to build a better Brisbane.

Globally, Brisbane will be a recognised as a leading mid-sized Asia Pacific city. By 2022 the city will be a hub for culture, higher education, trade and innovation, serviced by world class infrastructure. Brisbane will be one of the cities credited as being among the world’s top destinations for foreign investment and feature as one of Asia Pacific’s most visited cities. The city will be recognised as having a diverse population that facilitates connection and trade with other parts of the world and as a desired destination for international conferences.

Brisbane’s vital and important small to medium enterprises are well supported by the provision of timely market intelligence to build capacity and enhance the resilience of Brisbane’s economy.

Strategy 6.5.1 Brisbane 2022 New World City Action Plan

Driving economic growth by delivering the Brisbane 2022 New World City Action Plan.

Service 6.5.1.1 Implementing the Brisbane 2022 New World City Action Plan

To facilitate economic growth across the region, Brisbane Marketing will lead and implement the seven key priorities and their associated actions which are outlined in the Brisbane 2022 New World City Action Plan.

The economic priorities include driving job creation, guiding city-shaping, maintaining and improving quality of life, and assisting research and education expansion. Supporting Brisbane’s identified growth sectors and transitioning Brisbane’s current economic profile to be more global facing is a key priority while attracting and retaining a talented and skilled workforce remains a major focus for Brisbane’s future economic development.

The Action Plan will support the development of diverse and productive economic precincts, and facilitate a start-up ecosystem to assist in attracting technology based jobs that are central to New World City economies. Brisbane Marketing will work with regional partners to facilitate increased tourism, export, investment and infrastructure opportunities and focus on delivering a regional approach to economic development.

Brisbane Marketing will continue to promote a Team Brisbane strategic approach to drive region-wide collaboration for economic development.

Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 2,717 3,374 Revenue - -

Projects 2015- 2016-17 2017- 2018- 16 18 19 $000 $000 $000 $000

Asia Pacific Screen Awards Capital - - - - Expens 1,750 1,791 1,839 1,885 e Revenu 600 600 600 600 e Vision 2022 - A Digital City Supporting Startups and Capital - - - - SMEs Expens 1,600 1,640 1,681 1,723 e Revenu - - - - e Vision 2022 - A Regional Approach Capital - - - - Expens 250 256 263 269 e Revenu - - - - e Vision 2022 - Brisbane’s Growth Sectors Capital - - - - Expens 3,200 3,280 3,362 3,446 e Revenu - - - - e Vision 2022 - Championing Brisbane Capital - - - - Expens 3,520 3,608 3,698 3,791 e Revenu - - - - e

Vision 2022 - Facilitating Economic Growth, Diverse Capital - - - - Districts Expens 1,300 1,333 1,366 1,400 and Productive Precincts e Revenu - - - - e Vision 2022 - Positioning Brisbane Beyond G20 Capital - - - - Expens 750 769 788 808 e Revenu - - - - e Vision 2022 - Talent and Skills Capital - - - - Expens 2,750 2,819 2,889 2,961 e Revenu - - - - e Vision 2022 - Team Brisbane Capital - - - - Expens 1,900 1,948 1,996 2,046 e Revenu - - - - e

Service 6.5.1.2 Local Economy Support

Small and medium enterprises (SMEs) are the backbone of Brisbane’s economy, with many located in and around Brisbane’s CBD fringe, the Australia TradeCoast and the South-West Industrial Gateway. Main street economies and suburban home-based businesses are also a vital part of Brisbane’s economy. Providing enhanced education, support, global gateway facilitation, networking and collaboration opportunities to SMEs is a key priority to ensure Brisbane’s future economic prosperity.

A key strategy in providing local economy support is Council’s active participation with the Chamber of Commerce and Industry Queensland (CCIQ), local chambers of commerce and business associations to drive vibrant local economies through marketing and business development activity. This service will improve the vitality of local economics in Brisbane as well as identifying and assisting with the formulation of strategies which will contribute to Brisbane's growing international and national reputation as Australia's New World City.

Activities in this service include policy development, detailed data analysis, oversight of Brisbane Marketing activities, research and investigations, measurement and monitoring of relevant performance indicators and providing assistance to activate and renew local high street economies across Brisbane. This service will also identify and deliver capacity building opportunities for small to medium enterprises.

An ongoing success is the delivery of census-based profiles of Brisbane suburbs. This online tool provides detailed and comprehensive information about who we are, how the city is changing and where we are going. Data such as population, employment and industry analysis that assist and informs business decision making is provided to businesses in an easily interpreted and accessible format through Council’s website.

Outcome 6.6 Export Market Development

Outcome description

Grow Brisbane's out-of-region exports to maintain living standards, incomes and employment growth.

Where we are now

Brisbane is a strong exporting economy and its future success as a prosperous city depends on continued export growth which generates the wealth and employment creation in the Brisbane economy. Brisbane's strongest exporting industries are in education, manufacturing, specialist business services and tourism. Manufacturing and specialist business services are particularly reliant for their continued competitiveness on the capacity of the local economy and infrastructure to keep business costs down. These include transport, land and regulatory imposts.

Tourism and education services also derive significant benefit from effective promotion and profiling and assistance in connecting with external markets.

Growing Brisbane's out-of-region exports is essential to maintain the high living standards, incomes and employment growth which have been projected for Brisbane to 2031. This outcome contributes directly to the Brisbane Vision. Where we want to be

By 2031, Brisbane will have strong export and investment links in high value knowledge industries across the Asia- Pacific region. Brisbane will be recognised for its capabilities in mining technologies, advanced manufacturing, world class education and digital innovation.

Strategy 6.6.1 Increasing High-value Exports

Develop export industry clusters whose success is based on locational advantages (such as business costs and regulations, transport infrastructure and skilled workers) which secure their long term competitive advantage.

Service 6.6.1.1 Facilitating the Growth of Export Industries

The objective of this service is to research, investigate and implement strategic projects to support existing and new exporting industries in Brisbane. The service will have links with export-ready organisations in targeted sectors.

Activities in this service include:  researching and identifying strategic opportunities  aligning Council strategies to ensure exporting businesses are supported  working with external partners including peak industry bodies to deliver outcomes which will drive the growth of Brisbane's exporting industries.

A key strategy in supporting Brisbane's exporting industries is Council's active participation in its Sister City relationships and in the Asia Pacific Cities Summit.

Council will also play a key role in facilitating export industry growth through active participation in the development of industry action plans for high growth industries, identified through conducting detailed industry cluster analysis.

Achieving this outcome will support Brisbane jobs, support significant investment in Brisbane by international students, their friends and families and support the efforts of Brisbane's tertiary institutions.

Operating Anticipated Proposed 2014-15 2015-16 $000 $000 Expense 149 150 Revenue - - Total Project Expenditure Combined with Rolling Projects

Projects 2015-16 2016-17 2017-18 2018-19 $000 $000 $000 $000 Asia Pacific Screen Awards 1,750 1,791 1,839 1,885 Commencement of Stage 1 - CBD Wi-Fi 1,133 - - - Living Villages Development Levy 56 56 55 56 Vision 2022 - A Digital City Supporting Startups and SMEs 1,600 1,640 1,681 1,723 Vision 2022 - A Regional Approach 250 256 263 269 Vision 2022 - Brisbane’s Growth Sectors 3,200 3,280 3,362 3,446 Vision 2022 - Championing Brisbane 3,520 3,608 3,698 3,791 Vision 2022 - Enhancing Brisbane's Economic Growth 244 - - - Vision 2022 - Facilitating Economic Growth Diverse 1,300 1,333 1,366 1,400 Districts and Productive Precincts Vision 2022 - Positioning Brisbane Beyond G20 750 769 788 808 Vision 2022 - Talent and Skills 2,750 2,819 2,889 2,961 Vision 2022 - Team Brisbane 1,900 1,948 1,996 2,046 TOTAL 18,453 17,500 17,937 18,385