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Department of Innovation, Industry and Regional Development Department of Innovation, Industry and Regional Development This annual report covers the Department of Innovation, Industry and Regional Development as an individual entity. Published by the Department of Innovation, Industry and Regional Development, Melbourne Victoria. October 2008 Annual Report 2007–08 This report is also available on the internet at: www.diird.vic.gov.au © Copyright State of Victoria 2008 This publication is copyright. No part may be reproduced except in accordance with the provisions of the Copyright Act 1968. Authorised by the Victorian Government Department of Innovation, Industry and Regional Development 121 Exhibition Street Melbourne VIC 3000 Postal Address PO Box 4509 Melbourne VIC 3001 Telephone: (03) 9651 9999 Facsimile: (03) 9651 9962 www.diird.vic.gov.au Designed and produced by: Publicity Works Printed by: Impact Digital The paper used in this report is accredited to both ISO 14001 and Eco-Management and Audit Scheme (EMAS) standards ensuring environmentally sustainable and responsible processes through all stages of material sourcing and manufacture. EMAS standards include third party auditing, public reporting and continual improvement programmes. Contents e Secretary’s foreword nt2 coOur Ministers 4 Economic context 5 Role and structure of the Department 6 Organisational chart 10 Governance arrangements 12 Strategic objectives 13 Develop 14 Connect 32 Promote 44 Shape 52 Strengthen 60 Financials 65 Appendices 116 1 Department of Innovation, Industry and Regional Development Annual Report 07–08 Secretary’s foreword or This has been a signifi cant year for the Department of Ensuring that 90 per cent of young people in Victoria w Innovation, Industry and Regional Development. will successfully complete Year 12 or its eeducational equivalentr by 2010 Victoria continues its leadership over the National Reform fAgenda for the vocationalo education and training system, In 2007, 86.1 per cent of Victorians aged 20–24 completed following the April 2008 release of the Securing our Future Year 12 or its educational equivalent, which is above the Economic Prosperity discussion paper. The paper’s focus 2007 national average of 83.5 per cent and represents an was on the delivery of vocational education and training to increase from 81.8 per cent in 2000. high-need, high-priority industries and occupations. And Increasing the level of participation in vocational Victoria’s $21b biotechnology sector is now set for further education and training of adults aged 25–64 years expansion, following announcement of the 2007 Victorian Biotechnology Strategic Development Plan. In 2007, 201,911 people aged 25–64 years enrolled in vocational education and training (VET) in Victoria, and Throughout 2007–08, the Department made a major Victoria’s rate of adult participation in VET continues to be contribution to the economic growth and development higher than any other state. goals of the Government’s Growing Victoria Together (2005) policy: Information and Communications Technology (ICT) Helping generate more and better jobs across Victoria In 2007–08, more than 250 grants through the ICT Trade Events and Export Assistance Program enabled Victorian The Department’s efforts resulted in the creation of 8,212 ICT companies to promote their capabilities in over Full Time Equivalent (FTE) jobs throughout Victoria. 25 different countries, generating projected exports Increasing Victoria’s productivity and competitiveness of more than $220m. More than 7,000 small businesses benefi ted from practical Victoria’s ICT revenue at 30 June 2007 was $24.4b, after guidance through the Department’s Grow Your Business, 21 per cent growth between June 2004 and December Small Business Mentoring Program and Under New 2007. Annual revenue from overseas operations of Victorian Management workshops. More than 300 small businesses ICT businesses and exports of ICT equipment and services were assisted with planning assistance through My totals approximately $1.8b per year. Business My People. International Education Meanwhile, the $13.2m four-year Returning to Earning International education continues to be Victoria’s leading program is helping to address the skills and labour needs of service export industry, contributing $3.5b to the economy Victorian employers, providing 12,000 grants to help per annum and employing thousands of Victorians across parents upgrade their skills for a return to work. The all sectors of our world-class education and training system. Workforce Participation Partnerships program has already benefi ted more than 1,500 Victorian businesses and 3,000 In 2007, Victoria attracted 27,000 more international student disadvantaged job-seekers since 2005. enrolments, a massive 25 per cent increase over the previous year, bringing the number of enrolments to a record Obtaining a greater share of national business 133,000, or 29 per cent of the national total. investment for Victoria Tourism and Major Events During the year, the Department facilitated more than $3.25b in confi rmed investments, not including major International visitors to Victoria accounted for $3.1b in visitor infrastructure projects and construction projects. expenditure for the year ending December 2007, an increase of 14.6 per cent over the previous year. And, in Helping foster increased exports towards $35 billion 2007, domestic visitor expenditure in Victoria increased by by 2015 9.6 per cent over the previous year to $11.8b. Domestic In 2007–08, the Department’s efforts resulted in more than visitors spent $5.9b in regional Victoria, a 12.8 per cent $1.35b in exports facilitated and imports replaced. increase over the previous year. 2 or wIn 2007, Victoria attracted over 324,000 international Screen Industry evisitors to major events. The Victorian screen industry recorded its largest r Investment production expenditure ever of $262m in 2007–08. This is o Investment facilitation services were provided to 280 an 80 per cent increase over the previous 12 months and f it created 7,862 full-time employment opportunities in the projects, including major infrastructure projects and construction projects, with a total capital expenditure of industry during the year. $24.8b and generating, at a minimum, 10,900 jobs. Government Information Services Regional and Rural Development During 2007–08, the Citizen Access and Transformation In regional Victoria during 2007–08, the Department’s business units received 2.5 million web visits via Vic Online, efforts fostered economic and industry growth, and Information Victoria and eGov websites; answered 6,000 investment attraction which led to $1.2b in regional information queries at the Information Victoria counter and investments, 2,766 new jobs and $669m in exports. 95,300 information queries via the Information Victoria contact centre. They also sold 75,200 government Science and Technology publications and generated $1.25m in publication revenue. The new CSL Biopharmaceutical Formulation Centre and During the 2007–08 year the Department was restructured the Victorian Cancer Biobank were launched in 2007, both to enable a greater focus on international coordination, assisted by grants through the Science, Technology and sector development, industry liaison and regional Innovation (STI) Initiative. In 2007–08, more than 400 development, while achieving a more consistent approach businesses and researchers accessed infrastructure to delivering programs and services for Victoria. funding through the STI Initiative. The year ahead presents major new challenges for Major Projects Victoria. I am confi dent the Department will succeed in The $10.6m Hepburn Springs Bathhouse redevelopment converting these challenges into economic benefi ts for all was completed in May 2008, and the $1.4b Melbourne Victorians, applying the same professionalism and Convention Centre development became the fi rst building creativity that has characterised the Department’s of its kind in Australia to be awarded the Australian Green dedicated service throughout 2007–08. Building Council’s six-star Green Star rating for environmentally sustainable design. Howard Ronaldson Secretary 3 Department of Innovation, Industry and Regional Development Annual Report 07–08 eOur Ministersconom The Hon. Theo The Hon. Jacinta Allan The Hon. Joe Helper The Hon. Tim Holding Theophanous MLC MP MP MP Minister for Industry and Minister for Skills and Minister for Small Minister for Tourism and Trade Workforce Participation Business Major Events Minister for Information Minister for Regional and and Communication Rural Development Technology Minister for Major Projects The Hon. Rob Hulls The Hon. Gavin MP Jennings MLC Minister for Industrial Minister for Innovation Relations Our Parliamentary Secretaries The Hon. Kaye The Hon. Jaala Pulford The Hon. Marsha Darveniza MLC MLC Thomson MP Parliamentary Secretary Parliamentary Secretary Parliamentary Secretary for Regional and Rural for Industrial Relations for Industry and Trade Development 4 Economic contextm Victoria enjoyed increased employment,o population Exports of goods and services rose for the fourth growth, investment and exports against a backdrop of consecutive year despite the high level of the Australian nlower growth in the world economy and within Australia. dollar. The largest increases in export sales occurred in o The gains made during last year add to those made the automotive and dairy sectors of the economy. c previously in the decade. Victoria’s Gross State Product The global economy is entering
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