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VICTORIA: LEADING THE WAY Economic Statement April 2004 040321 leading the way cov fa 4/15/04 2:45 PM Page 2

VICTORIA: LEADING THE WAY ECONOMIC STATEMENT APRIL 2004

THE BRACKS GOVERNMENT HAS DELIVERED ECONOMIC PEOPLE, PROJECTS, CAPITAL, IDEAS AND EVENTS ARE COMING PROSPERITY TO ALL AREAS OF VICTORIA. WE HAVE ACHIEVED TO VICTORIA IN RECORD NUMBERS. THEY ARE COMING BECAUSE THIS WITHOUT COMPROMISING OUR COMMITMENTS TO DELIVER VICTORIA CONTINUES TO LEAD AUSTRALIA IN MANY AREAS— RESPONSIBLE FINANCIAL MANAGEMENT, PROVIDE IMPROVED FROM RECORD INVESTMENT IN EDUCATION TO THE NATION’S SERVICES AND PROTECT THE ENVIRONMENT. BEST TRANSPORT NETWORKS; FROM AN EXCITING CALENDAR OF MAJOR EVENTS TO A WORLD CLASS, COMPETITIVE BUSINESS ENVIRONMENT.

In the five years to 2002-03, Victoria recorded While manufacturing continues to anchor the productivity growth and economic growth well above State’s economy, our services industries are the national average, with unemployment consistently growing rapidly and Victoria now has internationally below the national level. This strong economic recognised strengths in diverse sectors such as performance has been facilitated through strategic aerospace design, advanced automotive investments in people, innovation and infrastructure. manufacturing, biotechnology, financial services, Looking ahead, the Government recognises that higher education, food processing and ICT. the Victorian economy faces significant external A diverse, innovative and export-oriented economy challenges to our leading economic performance. is essential to weathering the challenges ahead. Victoria: Leading the Way is an action plan that Victoria: Leading the Way outlines new actions to aims to position Victoria to meet these challenges ensure the State’s strong economic performance and generate new opportunities from the changing continues and that Victoria continues to attract the global economy. people, businesses, ideas and investment we need to go forward as a competitive, innovative, diverse Victoria: Leading the Way reinforces the Government’s and dynamic State. determination to get on with the task of delivering thriving, innovative industries across the whole In particular, Victoria: Leading the Way focuses of the State, and making Victoria a leading global on increasing the competitiveness and export investment destination. performance of Victorian businesses, with investment in world’s best infrastructure for moving Victoria: Leading the Way will: goods to market, new support for exporters and drive new investment in Victoria lower business costs. Victoria: Leading the Way stimulate the creation of new jobs across the State also delivers a strong boost for Victorian services industries with high export and growth potential, lower costs for Victorian businesses particularly tourism, financial services and support increased exports of our goods and services. higher education.

STEVE BRACKS MP JOHN BRUMBY MP Premier of Victoria Treasurer 040321 leading the way fa 4/15/04 2:43 PM Page 1

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THE BRACKS GOVERNMENT IS DRIVING ECONOMIC GROWTH ACROSS VICTORIA BY FOCUSSING ON THE AREAS THAT UNDERPIN A DYNAMIC, DIVERSE AND FLEXIBLE ECONOMY.

We are building a Victorian These achievements have economy that is innovative, been delivered alongside strong VICTORIA’S ECONOMIC SCORECARD IS IMPRESSIVE internationally competitive and operating surpluses, declining In the five years to 2002-03, growth in Gross State Product globally connected—an economy debt levels and Victoria’s ongoing averaged 3.9 per cent, above the national average of 3.6 per cent. that can generate new opportunities Triple-A credit rating. Employment growth has averaged 1.9 per cent a year over the from the changing world economy Today, Victoria has a strong past five years, with around 200,000 new jobs created—resulting for all Victorians. and growing economy. Over in Victoria having an unemployment rate that has been lower Over the last five years, the last five years, Victoria has than the national average for the past 46 months. the Bracks Government has outperformed the national In the year ending February 2004, the unemployment rate in implemented the most ambitious economy with productivity, regional Victoria averaged 5.6 per cent—compared to 8.0 per economic development agenda export performance and business cent in the year to October 1999. seen in Victoria for decades. investment growing strongly. Labour productivity growth in Victoria at 2.2 per cent per year We have announced over Around 200,000 new jobs have has outstripped the national average of 1.7 per cent per year $1 billion of tax cuts. been created, resulting in Victoria over the last five years. having an unemployment rate We have invested in record Victoria’s goods exports almost doubled in the ten years to that has been lower than the levels of infrastructure, 2001-02, reaching $22 billion before falling back to $19 billion national average for the past committing in excess of in 2002-03, following adverse external events. A strong rebound 46 consecutive months. For the $10 billion over the next from the drought is anticipated with conditions improving first time in more than 20 years, four years. in the rural sector. Victoria has seen a gain in net The value of building approvals has been above $1 billion We have brought more than interstate migration, attracting for 27 consecutive months. 4000 new teachers and staff young, skilled and highly back into Victorian schools, motivated people to the State. Victoria’s population grew by over 1.3 per cent in the year because we recognise that to September 2003, and now stands at over 4.9 million. These outcomes have been education is the key to achieved despite uncertain global Tax cuts valued at more than $1 billion are being delivered Victoria’s prosperity. conditions and, more recently, a by the Bracks Government, including the abolition of stamp We have invested more drought that is estimated to have duty on mortgages from 1 July this year. than $900 million in new taken at least 11/4 percentage developments in science, points off Victoria’s economic technology and innovation— growth in the last financial year. leading the way in Victoria’s sophisticated and biotechnology and taking dynamic economy has made Victorian business and the State more resilient to such industry into exciting and shocks than ever before. productive new areas. We have directed more than $2 billion towards projects supporting regional Victoria— reversing years of decline and boosting growth across the State. 040321 leading the way fa 4/15/04 2:43 PM Page 2

VICTORIA: LEADING THE WAY

In less than a generation, In our region, China is Making Victoria the location Victoria has become a diverse, experiencing near double digit of choice in a global economy; innovative and knowledge-based growth figures and is now very Fostering innovative and economy. While manufacturing competitive in areas such as export-oriented businesses; remains the single largest textiles where Victoria traditionally The Government has successfully Creating a best practice contributor to the State’s Gross has been a leading player. procured 10 projects under the business environment by State Product, Victoria now Partnerships Victoria framework. Over the next 20 years, new cutting red tape and boasts a vibrant service These projects have an challenges will also emerge as lowering costs; approximate capital expenditure economy—leading Australia in a result of our ageing population. Maximising the sustainable value of $1 billion. Five further many areas with strong growth in As the baby boomers retire and returns from our natural projects, with an approximate sectors such as tourism, financial enjoy longer lives, and as fertility resource base; and combined capital expenditure services and higher education. rates fall, the proportion of older value of $2.5 billion, are The Bracks Government’s people relative to those of Boosting competitiveness currently progressing through the economic development working age is expected to rise. and growth in Victoria’s Partnerships Victoria framework. program is driving the State’s services sector. The five projects are: the In this increasingly complex and transformation to an innovative, Mitcham-Frankston Freeway, competitive world, Victoria cannot Victoria: Leading the Way services economy—one that Emergency Alerting Systems, afford to be complacent or slow will also position the State Royal Melbourne Showgrounds keeps pace with the world’s in adapting to new challenges. as a leading destination for leading economies and can conventions, exhibitions and Redevelopment, Royal Women's Victoria: Leading the Way sets weather difficult international major international business Hospital Redevelopment and the out a clear action plan to ensure conditions. events. Central Highlands Water Victoria is best placed to meet Re-use Project. The Government is meeting its these challenges and seize new Other actions will reinforce ambitious economic targets and opportunities in the ever-changing Melbourne’s standing as the has invested wisely to secure regional and global environment. premier freight and logistics hub Victoria’s future. But there are in Australia and confirm Victoria’s The Mitcham-Frankston Project The plan sets out priority new challenges ahead. reputation as an attractive low- is recognised as Australia’s actions to strengthen Victoria’s cost location for international largest urban road project and is The strengthening Australian performance in exports, investment. currently ranked amongst the dollar is putting additional investment and business growth. world’s top Public-Private pressure on a range of sectors, These measures will ensure the Victoria: Leading the Way is not Partnership ventures. The but particularly on Victoria’s State’s strong economic ‘business as usual.’ The priority project will provide a significant manufacturers and exporters. trajectory of the last five years actions set out in this Economic boost to the economic activity in Recent rises in interest rates have continues into the future— Statement are the steps Victoria this major growth corridor, increased business costs and generating more jobs and must take now to respond to which contains 43 per cent of made the tasks of attracting thriving, innovative industries the challenges ahead. Melbourne's manufacturing and new investment and increasing across Victoria. production activity. Peak time The Bracks Government’s savings of up to 35 minutes will exports even more challenging. The actions set out in Victoria: economic development agenda be possible on some trips using The global economy is becoming Leading the Way focus on: has delivered strong economic growth, jobs and investment the new road. The project is more competitive than ever Stimulating investment and across the State. Victoria: Leading scheduled for delivery in 2008. before, with increasing export new jobs across the State; competition from low-cost the Way will build on the work of Investing in world’s best countries. the last five years and ensure the infrastructure for moving continuation of Victoria’s strong goods to markets cheaper economic performance. and faster; 040321 leading the way fa 4/15/04 2:43 PM Page 3

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GENERAL GOVERNMENT SECTOR NET INFRASTRUCTURE INVESTMENT Includes purchases of property, plant and equipment and net contribution to other sectors of government less proceeds from sale of property, plant and equipment.

Source: Department of Treasury and Finance 040321 leading the way fa 4/15/04 2:43 PM Page 4

LEADING THE WAY: OUR ACTION PLAN

VICTORIA: LEADING THE WAY

The 19 actions set out in Victoria: Leading the Way focus on: Stimulating investment and new jobs across the State; Investing in world’s best infrastructure for moving goods to markets cheaper and faster; Making Victoria the location of choice in a global economy; Fostering innovative and export-oriented businesses; Creating a best practice business environment by cutting red tape and lowering costs; Maximising the sustainable returns from our natural resource base; and Boosting competitiveness and growth in Victoria’s services sector. 040321 leading the way fa 4/15/04 2:43 PM Page 5

ECONOMIC STATEMENT APRIL 2004 PAGES 04/05

LEADING THE WAY: OUR ACTION PLAN THE BRACKS GOVERNMENT IS BUILDING A MORE COMPETITIVE VICTORIA THROUGH THE PRIORITY ACTIONS DESCRIBED ON THE FOLLOWING PAGES. VICTORIA: LEADING THE WAY BUILDS ON THE STATE’S COMPETITIVE STRENGTHS THROUGH 19 NEW ACTIONS.

ACTION 1 Deepening the channel to the Port of Melbourne Together, the priority actions in Victoria: Leading the Way will result in: ACTION 2 Improving access to the port more economic activity and more jobs; ACTION 3 Redeveloping the Melbourne Wholesale Markets more reductions in tax and other business costs; ACTION 4 Building better supply chain links more Victorian goods moving to more markets, ACTION 5 Leading the way in major events and conventions more cheaply and more quickly; ACTION 6 Investing in our creative industries more competitive, globally connected and export- ACTION 7 Make it Happen in Provincial Victoria: Phase 2 oriented businesses in our services sector; and ACTION 8 Promoting Victoria as the destination of choice more international exposure resulting in more for international investment investment and more people coming to Victoria. ACTION 9 Exporting for growth ACTION 10 Growing our share of the international education market The Bracks Government is preparing its blueprint ACTION 11 Building on Victoria’s strengths in financial services for ensuring the efficient allocation of water amongst ACTION 12 Activating the Next Generation Food Strategy users and the environment. Securing Our Water Future is to be released by mid-year and will support ACTION 13 More tax cuts for business sustainable economic growth, particularly in regional ACTION 14 Lowering WorkCover costs for Victorian businesses and rural Victoria. ACTION 15 Establishing the Victorian Competition and The Bracks Government is also preparing the Efficiency Commission next phase of its successful regional development strategy. The strategy will be released in early 2005 ACTION 16 Cutting red tape in development approvals and will contain new initiatives to drive economic ACTION 17 Taking new directions in industrial relations growth, investment, employment and population ACTION 18 Open for business 24/7 growth in Provincial Victoria. ACTION 19 Maintaining our low-cost and reliable energy advantage 040321 leading the way fa 4/15/04 2:43 PM Page 6

ACTION ONE DEEPENING THE CHANNEL TO THE PORT OF MELBOURNE

01 VICTORIA: LEADING THE WAY ACTION 1 DEEPENING THE CHANNEL TO THE PORT OF MELBOURNE THE BRACKS GOVERNMENT RECOGNISES THE VITAL IMPORTANCE TO THE VICTORIAN ECONOMY OF MAINTAINING MELBOURNE’S REPUTATION AS THE LEADING FREIGHT AND LOGISTICS HUB IN AUSTRALIA.

The Port of Melbourne is Following environmental This funding brings the total Shipping lines have sought Australia’s largest and busiest approvals, the Bracks commitment to date by the economies of scale through container port, handling 37 per Government will support the Bracks Government to the larger ships. By 2001, cent of the nation’s container Port of Melbourne channel channel deepening project 22 per cent of container trade. The Port’s efficient deepening project. to $20.1 million. shipping capacity around operation is essential to both the The Government will: The scope and cost of the the world consisted of Victorian and Australian economy. provide an additional required investment will be ships carrying more than The Victorian Government is 4000 TEU, while vessels of $14.9 million for the known once the full environmental committed to sustaining the 2000-4000 TEU accounted acceleration and completion assessment and business case Port of Melbourne’s pre-eminent for 41 per cent of the fleet. of detailed design studies; have been completed. The final This increase in size is position and ensuring the funding arrangements for the undertake further analysis reducing shipping costs Port continues to contribute Government and the Port of before allocating funding for by 20-30 per cent. to Victoria’s growth. Melbourne Corporation can only the relocation of five trunk Like a number of ports be determined following this services (sewer, gas, oil, around the world, the Port of stage of the project’s telecommunications and Melbourne faces the challenge development. electricity) beneath the of catering for increasing ship Yarra River, south of the The Government recognises sizes and consequent draught Westgate Bridge; the wider benefits of the channel requirements. Already, some deepening project for Victoria’s introduce legislation to 30 per cent of ships cannot load economic future and facilitate the delivery of the to full capacity. To remain at the acknowledges that a future channel deepening project forefront of container trade, allocation of funding for the and reflect its status as a Victoria must act now to ensure relocation of trunk services priority State project; and the Port of Melbourne is capable will be required. of accommodating these larger reduce the time taken for Channel deepening will support ships in the future. the approvals stage of the further investment in the port and project by four months by An efficient port is also critical throughout Victoria. The project streamlining administrative to moving goods from regional will benefit Victorian exporters procedures, without Victoria to domestic and across the State and have a compromising the international markets, and to positive impact on the State’s assessment process, driving growth and investment economy. It will also signal to to ensure the project is in regional industries. potential investors that Victoria is completed by 2007. prepared to invest in world class trade and transport infrastructure to support existing and new industries. STEPS IN APPROVAL PROCESS SCHEDULE

EES publicly exhibited June/Mid July 2004 Panel hearings commence Mid August 2004 Panel Report submitted Mid November 2004 Minister for Planning’s Assessment December 2004 State Government approvals December 2004/January 2005 Commonwealth approval January/February 2005 040321 leading the way fa 4/15/04 2:43 PM Page 7

ACTION TWO IMPROVING ACCESS TO THE PORT

ECONOMIC STATEPMENT APRIL 2004 PAGES02 06/07 ACTION 2 IMPROVING ACCESS TO THE PORT EFFICIENT INTERMODAL TRANSPORT OF FREIGHT IS RAPIDLY BECOMING MORE CRITICAL TO MEETING THE DEMANDS OF GLOBAL SUPPLY CHAINS.

High quality road and rail links The current rail alignment The improved rail link to the to the Port of Melbourne are imposes significant inefficiencies Port will allow trains unimpeded essential for the timely movement on rail operations and causes access to all existing and planned of freight and for keeping delays to road traffic. Trains on-dock rail terminals. This will costs down for importers and approaching the Port must stop increase the amount of freight exporters. These links will at Footscray Road and request able to be carried directly to the become increasingly important clearance to proceed as road dock via rail, avoiding additional as the movement of freight traffic has priority. handling costs estimated at through the Port increases As part of its vision for $75 per container. over the next decade. improving the efficiency of the Increasing rail market share at Currently, 80 per cent of Port of Melbourne, the Bracks the Port of Melbourne is vital to container movements are by road Government will commit accommodating future growth, and 89 per cent of containers $2.1 million to develop fully reducing road congestion and handled in the Port of Melbourne detailed designs for the grade improving the overall efficiency involve multiple moves before separation of Footscray Road of the Victorian freight and reaching their destination. and the realignment of the rail logistics sector. The Port of Melbourne’s track into and within the Port. only rail access is via a single, Delivery of the full project is dual-gauge track that crosses estimated to cost in excess Footscray Road. of $120 million. Over the past 25 years, the Port of Melbourne The Dynon Port Rail Link is a has averaged 9.6 per cent growth annually in multi-modal, integrated freight throughput and is expected to continue to grow project of national importance— strongly over the next decade. Trade is expected making it a key priority for to nearly double over the next 10 years and the Bracks Government for possibly quadruple over the next 30 years. funding through the Federal The Government blueprint for improving the Government’s AusLink initiative. efficiency of the Port of Melbourne is laid out in Melbourne Port@L, which emphasises the rail and road connections in and out of the Port. The aim is the transformation of the Port of Melbourne and Dynon rail precincts into a single intermodal terminal of world class standard. See www.doi.vic.gov.au for further detail about Melbourne Port@L. 040321 leading the way fa 4/15/04 2:43 PM Page 8

ACTION THREE REDEVELOPING THE MELBOURNE WHOLESALE MARKETS

03 VICTORIA: LEADING THE WAY ACTION 3 REDEVELOPING THE MELBOURNE WHOLESALE MARKETS THE MELBOURNE WHOLESALE FRUIT, VEGETABLE AND FLOWER MARKET IS A KEY DRIVER OF ECONOMIC ACTIVITY ACROSS THE STATE.

In recent years, the Market has To maximise opportunities Market tenants have been experienced substantial growth, for the future of Victoria’s fruit consulted to assess their with total turnover almost and vegetable production, preferred location for the doubling to $1.5 billion distribution and retail industry, relocated Market. A number between 1993 and 2001. the Bracks Government will of sites will be considered as But the Market’s location is redevelop and relocate the a part of the business case for nearing the end of its economic Wholesale Fruit, Vegetable relocation, with a benchmark life and limiting the Market’s and Flower Market over the being developed on the basis of potential for further growth. next six years. State-owned land at Werribee. The current location is too small The relocation of the Market will The Government is allocating an area and too landlocked to underpin longer-term growth and up to $4.7 million towards meet the requirements of modern development in the fresh fruit and final site analysis and site wholesaling and distribution. vegetable industry across the design for the relocation State. It will also boost export and redevelopment of the development and reduce Melbourne Wholesale Markets. distribution and handling costs. The development has the The relocated Market, on potential to trigger significant a larger site, will be able to private sector investment with meet contemporary needs the total project value in the order for warehousing space. Unlike of $300 million. The Government the current Market, the new will consider alternative delivery facility will: models, including through Partnerships Victoria. cater for modern logistics efficiencies; As it is fully developed over the next 20 years, the new market allow tenants to implement precinct incorporating the core modern cool-chain food trading floors, warehousing, quality technologies; distribution centres and other maximise materials handling value-added business will drive efficiencies, while being flexible over $1 billion of on-site public enough to cater for market and private investment. The users’ business needs and relocation of the Market is also individual products; and expected to provide substantial encourage innovation economic benefits to the State in transport, equipment, through a more efficient market materials handling, storage precinct and the freeing up of and IT in the fresh food the existing site for port and industry. rail development over the next 20 years. 040321 leading the way fa 4/15/04 2:43 PM Page 9

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The relocated Market, on a larger site, will be able to meet contemporary needs for warehousing space. This will underpin longer-term growth in the fresh fruit and vegetable industry across the State. 040321 leading the way fa 4/15/04 2:43 PM Page 10

ACTION FOUR BUILDING BETTER SUPPLY CHAIN LINKS

04 VICTORIA: LEADING THE WAY ACTION 4 BUILDING BETTER SUPPLY CHAIN LINKS COMPETITIVE TRANSPORT, DISTRIBUTION AND LOGISTICS ARE CRUCIAL TO THE FUTURE GROWTH AND SUCCESS OF VICTORIAN BUSINESSES AND THE ECONOMY IN GENERAL.

Well-planned infrastructure, To extend Victoria’s capabilities Other supply chain initiatives coupled with a more in this area, the Bracks will include: sophisticated approach to supply Government will allocate supporting the adoption of a chain management, will provide $2.5 million over three years national accreditation code in Victorian companies with to increase the efficiency of cool-chain logistics exports; opportunities for cost savings, movement of Victorian goods, encouraging firms to and allow better and faster including contributing to a implement world’s best access to markets for new Centre of Excellence in practice supply chain Victorian goods. Intelligent Transport Systems. management; There is also considerable The Centre of Excellence in supporting the Transport, potential for Victoria’s transport, Intelligent Transport Systems will Distribution and Logistics distribution and logistics sector capitalise on Victoria’s freight and Industry Round Table to to boost its already significant logistics experience and expertise undertake projects of State contribution to the Victorian to create a world class training and national significance; and economy. and commercialisation facility. promoting Victoria as a Victoria is already recognised as The Centre will bring together freight and logistics hub. a pioneer in developing advanced freight haulers, logistics operators transport technologies such as and courier companies with The Bracks Government is also taxi management systems, tolling manufacturers, equipment working with the freight and systems and public transport providers and software logistics industry to foster the information systems. developers to identify and invest introduction of ICT-based in innovative solutions that can solutions to generate efficiency be applied by the State’s freight gains. Through its SmartFreight and logistics industry. initiative, the Government is commissioning projects on electronically-based container management systems and container triangulation to The freight corridors in Victoria are the conduits for moving freight reduce the movement to and from Victoria’s ports and industries. Victoria is well-positioned of empty containers. geographically to act as a hub to attract freight from South Australia, New South Wales and Tasmania for export, and to act as a distribution centre for international imports. 040321 leading the way fa 4/15/04 2:43 PM Page 11

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Through its SmartFreight initiative, the Bracks Government is commissioning projects to foster the introduction of ICT-based solutions to generate efficiency gains.

CONTAINER MANAGEMENT SYSTEM This project involves an investigation into the technical feasibility, practicality and financial viability of an electronically-based system to record and track the location of shipping containers once they leave the port area. Technology such as Radio Frequency Identification will be investigated.

CONTAINER TRIANGULATION Triangulation reduces container traffic by allowing for direct movement of containers between importers and exporters, without having to move empty containers to and from container parks. This pilot study will investigate the operational feasibility and cost-effectiveness of triangulation. 040321 leading the way fa 4/15/04 2:43 PM Page 12

ACTION FIVE LEADING THE WAY IN MAJOR EVENTS AND CONVENTIONS

05 VICTORIA: LEADING THE WAY ACTION 5 LEADING THE WAY IN MAJOR EVENTS AND CONVENTIONS VICTORIA IS AUSTRALIA’S MAJOR EVENTS CAPITAL, HOSTING AROUND 70 NATIONAL AND INTERNATIONAL MAJOR EVENTS EACH YEAR.

The range, number and quality The Government’s tourism The project will give Victoria of major events contributed to strategy is complemented by a world class convention and Victoria being the only Australian a growing focus on attracting exhibition facility with the capacity State to record an increase in international conventions to to attract major international international visitors in 2003. The Victoria and repositioning business events. This will bring Victorian Government wants to Melbourne as Australia’s leading substantial economic benefits to build on the State’s reputation for business events venue. Business Victoria, including an estimated major events to position Victoria events have a high economic increase in Gross State Product as a leading destination for impact. They generate valuable of $197 million per annum and conventions, exhibitions and major benefits for regional areas, the equivalent of 2600 new full- international business events. facilitate business contacts, time jobs across the State over Tourism is growing strongly across showcase Victoria’s innovative the 25 year life of the facility. Victoria, injecting $10 billion a capacities, enable the transfer The Convention Centre will year into the Victorian economy of technological know-how and reinforce Victoria’s leadership and supporting 150,000 jobs even attract people to settle in major events, increasing our across the State. in Victoria. international reputation as a To make Victoria the destination dynamic, forward-looking State. of choice in the global conference It will also raise our international market, the Bracks Government profile, particularly among will support the redevelopment business leaders and the of the Melbourne Convention scientific community, and Centre adjacent to the contribute to attracting new Melbourne Exhibition Centre. investment and people The redevelopment will include to Victoria. an integrated exhibition and The Melbourne Convention convention centre, with a Centre will be delivered in 5000 seat plenary hall and conjunction with the Melbourne integrated development of the City Council under Partnerships surrounding Southbank site. Victoria. Budget funding of The new Convention Centre $367 million will be provided will be the biggest of its in this year’s May Budget. kind in Australia. Expressions of Interest for the The construction cost of the redevelopment of the Convention core Convention Centre buildings Centre will be invited later this is expected to be around year, with the new facility to $370 million. The overall cost to commence operations in 2008. Government will be lower due to opportunities for private consortia to develop in an integrated way the other parts of the site. 040321 leading the way fa 4/15/04 2:43 PM Page 13

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INTERNATIONAL EVENTS HOSTED BY VICTORIA NOW INCLUDE: Australian Formula One Grand Prix Melbourne Winter Masterpieces Australian Motorcycle Grand Prix Mercedes Australian Fashion Week Australian Open Tennis Championship L’Oreal Melbourne Fashion Festival FINA World Swimming Championships (2007) Australian International Airshow Heineken Classic Golf Spring Racing Carnival Rip Curl Pro World Surf-riding Championship World Hot Air Balloon Championships (2004) World Superbike Championships IDSF Ten Dance World Championships (2004) World Cup Aerials at Mt Buller The Age Melbourne Writers’ Festival Melbourne International Comedy Festival Melbourne Fringe Festival Melbourne International Flower & Garden Show Melbourne International Film Festival Melbourne Food & Wine Festival In addition, Arts Victoria funds a large number of local festivals across Provincial Victoria. 040321 leading the way fa 4/15/04 2:43 PM Page 14

ACTION SIX INVESTING IN OUR CREATIVE INDUSTRIES

06 VICTORIA: LEADING THE WAY ACTION 6 INVESTING IN OUR CREATIVE INDUSTRIES VICTORIA IS AUSTRALIA’S CREATIVE CAPITAL—RECOGNISED AROUND THE WORLD AS AN ARTISTIC AND CULTURAL CENTRE.

Victoria is known for its However, Victoria’s cultural and a feasibility study into outstanding cultural landmarks, heritage attractions now face consolidated electronic, museums and attractions, and is increasing competition, as industry-wide ticket becoming increasingly recognised customers have a wide choice distribution—which as a centre for exciting new of other leisure-time activities. also provides for better creative industries such as The Victorian Government wants understanding of customer animation, computer games to realise the full potential of needs; and design. these attractions and ensure they scoping and market testing Over the last ten years, almost contribute to—and benefit from— a web-based ‘Experience $1 billion has been invested in Victoria’s growing tourism industry. Organiser’ for packaging and public cultural infrastructure The Bracks Government will promoting cultural experiences across Victoria. The Bracks allocate $7.7 million over two based on customer needs Government’s Creative Capacity+ years towards a package of and interests; and Arts for All Victorians (2003) policy measures to increase cultural development of a new framework outlines a detailed tourism in Victoria and to grow Melbourne specific brand- plan for increasing engagement the patronage of cultural and mark to complement the in arts and cultural activities. heritage attractions across Tourism Victoria ‘Jigsaw’ As part of this framework, the the State. brand, and of an integrated Government has maintained The package will comprise: communications strategy to and extended policies such a Market Innovation Fund to more effectively promote as free or reduced admission underwrite the development our cultural vitality. fees to encourage the use of of collaborative projects that This investment will ensure that State-owned cultural assets develop new content; sufficient market momentum is by all Victorians and visitors established ahead of the great to the State. implementation of a comprehensive industry tourism opportunities presented market research program to by the Commonwealth Games better understand customer in 2006. motivation and behaviour and support the development of experience-based packages; 040321 leading the way fa 4/15/04 2:43 PM Page 15

ACTION SEVEN MAKE IT HAPPEN IN PROVINCIAL VICTORIA: PHASE 2

ECONOMIC STATEMENT APRIL 2004 PAGES07 14/15 ACTION 7 MAKE IT HAPPEN IN PROVINCIAL VICTORIA: PHASE 2 UNDER THE BRACKS GOVERNMENT, PROVINCIAL VICTORIA IS ENJOYING RECORD LEVELS OF INVESTMENT, STRONG POPULATION GROWTH, RECORD LOW UNEMPLOYMENT AND RENEWED SERVICES AND INFRASTRUCTURE.

Vibrant, healthy regional areas In October 2003, the The second phase of Make it are crucial to Victoria’s continued Government officially launched Happen in Provincial Victoria will economic success. The Bracks the Make it Happen in Provincial comprise two key components: Government is committed to Victoria campaign with the aim of a $2.85 million, three-year ensuring that regional Victoria is uniting rural, regional and country marketing campaign targeting seen as a great place to live, Victoria under a new, single Melburnians to relocate to work and invest. The identity. The campaign was Provincial Victoria. The Government is implementing developed in conjunction with marketing campaign will target policies to drive further regional Victoria’s 48 Provincial Councils the 21 per cent of Melburnians population growth and maximise and received an overwhelming who research shows would the capacity of local communities response with more than consider relocating to Provincial to take up economic and 300,000 hits to the website. Victoria if the circumstances investment opportunities. The Bracks Government will were right; and While Victoria’s current approach provide $5.7 million over three a new $2.85 million Provincial to regional development is years to implement phase Economic Partnerships proving highly successful, the two of the highly successful initiative to assist local Government believes more can Make it Happen in Provincial councils drive new economic be done to drive regional economic, Victoria campaign. and investment opportunities jobs and population growth. on a regional basis.

A SNAPSHOT OF PROVINCIAL VICTORIA Provincial Victoria’s population grew by almost 14,000 in the year to June 2003, reversing the regional population decline of the 1990s. Many regional centres are enjoying population growth above the national and Melbourne average. Employment growth in Provincial Victoria is now higher than in Melbourne. In the year ending February 2004, the unemployment rate in regional Victoria averaged 5.6 per cent—compared to 8.0 per cent in the year to October 1999. New investment worth $3.26 billion has been attracted to Provincial Victoria and 7400 new jobs have been created. Building approvals in regional areas reached over $3 billion in the year to January 2004—the highest level on record. 040321 leading the way fa 4/15/04 2:43 PM Page 16

ACTION EIGHT PROMOTING VICTORIA AS THE DESTINATION OF CHOICE FOR INTERNATIONAL INVESTMENT

08 VICTORIA: LEADING THE WAY ACTION 8 PROMOTING VICTORIA AS THE DESTINATION OF CHOICE FOR INTERNATIONAL INVESTMENT OVER THE LAST FIVE YEARS, VICTORIA HAS BECOME A LEADING DESTINATION FOR INTERNATIONAL BUSINESS INVESTMENT.

A recent report from KPMG— Invest Victoria will change the way In addition to its role in attracting The Government's study, 2004 Competitive Alternatives— Government relates to business investment to the State, Invest Benchmarking Victoria 2004, has confirmed Melbourne as one investors. For the first time, Victoria will also take on trade demonstrates Victoria’s of the world’s least costly places investors will have a single development activities. The advantages as a business to do business. KPMG found that entry point for dealing with all Government will allocate an location for international Melbourne has the world’s government agencies. Invest additional $1 million per year companies across seven industry second lowest business costs Victoria will provide investors with to resource Invest Victoria’s sectors—aerospace design, for a large international city of a first point of call that will deliver business offices around the automotive, biotechnology, more than two million people— centralised, streamlined and world to support Victorian financial services, food, ICT and ahead of Sydney. exports. This investment will shared service centres. The customised access to the entire research was carried out on The KPMG report—as well as suite of Victorian Government complement the role already behalf of the Government by IBM the Government’s Benchmarking information and support services. played by these offices in Plant Location International with Victoria 2004 study—demonstrates Investors will also benefit from a attracting investment to Victoria, Victoria being benchmarked Victoria’s strengths in industry special aftercare program that will and provide a single entry point against over 30 global competitor sectors such as aerospace assist them to respond to new for a broader group of locations. A summary design, advanced automotive, opportunities and challenges potential clients. of the benchmarking study is biotechnology R&D and as they arise. available by emailing manufacturing, financial services, Invest Victoria will identify and [email protected]. food processing and ICT. facilitate investment projects The Bracks Government is from around the globe and investing $10 million annually to build relationships with major build on these strengths and to companies with substantial further boost Victoria’s reputation investment potential. As a and position as an attractive, dedicated entity under a new competitive investment location. CEO, Invest Victoria will better focus the State’s investment Through a new body, Invest www.investvictoria.com attraction efforts, delivering Victoria, the Bracks Government exciting new investment will aggressively promote opportunities across the State investment in Victoria and and ensuring that Victoria raise Victoria’s profile in the remains a leading investment international investment destination. marketplace. Invest Victoria will promote the State as a prime international investment location and raise awareness of Victorian strengths and capabilities. 040321 leading the way fa 4/15/04 2:44 PM Page 17

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INVEST VICTORIA—MAKING A DIFFERENCE With an existing cluster of automotive manufacturing, tooling and design facilities, Victoria is a great location for international companies investing in the automotive sector. But potential investors need to deal with a range of issues such as good road and rail access, excellent site availability, highly flexible staff with strong IT and language skills, reliable telecommunications and utilities, and local planning and approvals processes. Invest Victoria will work with all relevant State and local government agencies to design a package that deals with all these issues and delivers the best return on the investment for all concerned.

INTERSTATE INVESTMENT COOPERATION AGREEMENT On 5 September 2003, all States and Territories (with the exception of Queensland) agreed to an historic pact to end interstate bidding wars for business investment and major events. Under the Agreement, these Governments have agreed to work together to eliminate unnecessary bidding wars and to restrict the use of financial incentives in seeking investments and major events. This Agreement builds on an investment attraction Agreement announced by the Victorian and New South Wales Governments in 2001. 040321 leading the way fa 4/15/04 2:44 PM Page 18

ACTION NINE EXPORTING FOR GROWTH

09 VICTORIA: LEADING THE WAY ACTION 9 EXPORTING FOR GROWTH OVER THE LAST TEN YEARS, VICTORIA’S EXPORT PERFORMANCE HAS BEEN EXCEPTIONALLY STRONG, WITH THE BENEFITS EXTENDING ACROSS THE STATE.

One in five jobs in the State is The Plan recognises that Raising the profile of Victoria’s export related and in regional businesses require a range of strategic capabilities is critical Victoria, this increases to one job strategies to ensure they reach to increasing exports. The in four. Recognising the value of their full export potential. Government’s comprehensive continuing strong export growth These include: trade fairs and missions program to Victoria’s future, the Bracks assisting firms to increase will be complemented by a high Government has set a target of their awareness of exporting level of representation at one of $30 billion in exports by 2010 opportunities and providing the world’s largest trade fairs— and is developing strategies to them with access to export Expo 2005 in the Aichi ensure this target is achieved. know-how; Prefecture, Japan. However, Victoria’s exports supporting firms to sustain The Government will provide 2005 will mark the performance has been affected and increase their export $5 million to ensure maximum 25th anniversary of the by the drought—and a higher efforts; exposure for Victorian industry Victoria-Aichi Sister Australian dollar and an at Expo 2005. Over six months, promoting Victorian industry State relationship. increasingly competitive global the Expo will feature a key capabilities to target markets economy are also making our Victorian industry sector each through Invest Victoria and export task much harder. month—biotechnology, other marketing vehicles such information and communication In late 2003, the Government as trade fairs and missions; technology, food/wine and released an Export Plan and Discussion Paper that examined agribusiness, energy, automotive improving the capacity within strategies to assist more Victorian products and services, and the Victorian Government to firms to sell more products and environmental technology. support Victoria’s exporting services to overseas markets. These initiatives, when combined business community— with the new role to be played The Bracks Government will including improved integration by Invest Victoria in promoting deliver on its commitment with other levels of government. to grow exports through its exports, brings the Bracks The Opening Doors Export Plan Opening Doors Export Plan— Government’s total additional will assist firms to better access with an additional $3 million commitment to maintaining the existing export services, whether over three years in new strength of our export sector to delivered by government or the programs. $11 million over three years. private sector. The Plan will consolidate and refocus Victorian Government initiatives to complement federal Government export programs and ensure Victoria’s export targets are met. 040321 leading the way fa 4/15/04 2:44 PM Page 19

ACTION TEN GROWING OUR SHARE OF THE INTERNATIONAL EDUCATION MARKET

ECONOMIC STATEMENT APRIL 2004 PAGES 18/1910 ACTION 10 GROWING OUR SHARE OF THE INTERNATIONAL EDUCATION MARKET EDUCATIONAL SERVICES NOW REPRESENT ONE OF VICTORIA’S MAJOR SERVICE EXPORTS, WITH DIRECT EXPENDITURE FROM INTERNATIONAL STUDENTS ESTIMATED TO BE AT LEAST $1.5 BILLION PER ANNUM.

Melbourne is Australia’s key However, the international This will include: city in attracting international education marketplace is the placement of Education students and, on a per capita becoming increasingly Services Export Development basis, attracts more international competitive, with countries Managers in strategic Victorian higher education students than such as Malaysia now attracting Government Business any other city in the world. students who would previously Offices overseas; In addition, Victoria is now have been destined for Australia. a marketing campaign the most successful State in Victoria needs to move into to promote Victoria as Australia in attracting students new areas and explore new a preferred education to government schools and opportunities to maintain its destination; and TAFE institutes. Recent research leadership in the delivery and participation of Victorian indicates that Victoria has export of high quality education education providers in significant potential to further services. increase its share of the international education In March 2004, the Minister for Australian market and attract trade fairs. Education and Training released even higher numbers of The Government will work in Global Pathways: International international students. close partnership with all sectors Education for Victoria, which of the education industry—higher Many students also choose to commits the Government to education institutes, private and stay permanently in Victoria as working collaboratively with government TAFE institutes, skilled migrants, helping meet Victoria’s higher education English language providers, specific skills shortages and providers to boost their potential private and government schools contributing to the State’s to attract greater numbers of —as well as the tourism growth. Those who return to students from overseas. their home countries help build industry—to ensure Victoria’s Recognising the enormous important bridges between higher education services sector potential for Victoria from Victoria and countries in our realises its full export and continuing growth in this sector, region and beyond. international potential. the Bracks Government will contribute $5.8 million over three years to secure Victoria’s position in the international education market.

Education has become a major international service industry. In 1999-2000, the global education market was valued at $US15 trillion and this amount is estimated to double by 2010. In addition to tuition fees, international students have a significant impact on the Victorian economy through their expenditure on accommodation, food, recreation and travel. 040321 leading the way fa 4/15/04 2:44 PM Page 20

ACTION ELEVEN BUILDING ON VICTORIA’S STRENGTHS IN FINANCIAL SERVICES

11 VICTORIA: LEADING THE WAY ACTION 11 BUILDING ON VICTORIA’S STRENGTHS IN FINANCIAL SERVICES THE FINANCIAL SERVICES INDUSTRY IS THE THIRD LARGEST INDUSTRY SECTOR IN VICTORIA—CONTRIBUTING 8.8 PER CENT OR $14.6 BILLION TO THE STATE ECONOMY IN 2002-03, AND EMPLOYING AROUND 90,000 PEOPLE.

Growth in the financial services The Government’s action The plan will also incorporate Independent benchmarking sector has expanded by more plan for the financial services a range of initiatives across the undertaken by IBM Consulting than 40 per cent since 1999, industry, Investing in Victoria’s financial services sector to build has confirmed Victoria’s and the Victorian financial Future, will be released by the on the State’s strengths and particular strengths in sector’s overall size, in terms of Minister for Financial Services create new bases for growth. superannuation and funds employment, is now comparable in May 2004. The plan will outline These will include: management provide it with a to Hong Kong or Singapore. the Government’s strategy for Victoria’s export capability substantial international working with the industry to competitive advantage over The Australian funds in financial services related secure the future of this rapidly other financial centres. management industry is of global education and expertise; significance, and Victoria plays a growing sector. improving the linkages major role as the national centre Melbourne has particular between the finance industry for industry superannuation recognised strengths in financial and higher education funds. Victoria is home to around services research. These institutions to help develop 65 per cent of total Australian strengths provide Victoria with Victoria’s financial skills and In the quarter ending industry funds under world class capability and a education base; 30 June 2003, Australia management. competitive edge in the Asia positioning Victoria passed Italy to become the The Bracks Government Pacific region. To build on fourth largest managed internationally as a financial recognises the economic and Victoria’s competitive advantage funds market in the world. services centre and attracting strategic significance of the in financial services research, new investment from Sixty-five per cent of financial services industry to the Bracks Government overseas; and Australian industry funds Victoria’s future. The Government will allocate $1.8 million over are based in Victoria. is committed to building on two years to establish a new exploring new growth and Victoria is home to Victoria’s strengths as an Melbourne Centre for Financial investment opportunities for 360 large corporate, attractive location for the Studies and a range of the State in emerging sectors, public sector and industry dynamic, increasingly global supporting initiatives. including energy, water and funds, valued at about and highly competitive world The Centre will specialise in carbon trading, socially $US80 billion. of financial services delivery. investment and financial services responsible investment Seven of the top 10 industry research. It will be established in and venture capital. funds are based in partnership with industry and the Melbourne. higher education sector. These commitments will enhance and showcase Victoria’s financial services research strengths, and provide a focus for the State to further develop its role as a financial centre. 040321 leading the way fa 4/15/04 2:44 PM Page 21

ACTION TWELVE ACTIVATING THE NEXT GENERATION FOOD STRATEGY

ECONOMIC STATEMENT APRIL 2004 PAGES 20/2112 ACTION 12 ACTIVATING THE NEXT GENERATION FOOD STRATEGY VICTORIA’S FOOD PROCESSING INDUSTRY CONTRIBUTES STRONGLY TO THE AUSTRALIAN AND VICTORIAN ECONOMIES, WITH EXPORTS TO MORE THAN 100 COUNTRIES.

More than 80 per cent of The Bracks Government, The strategy will include With food production and all Victorian food exports are through the Victorian Food a range of actions to: processing providing the processed and over 30 per cent Council, will help build an address structural, cultural economic foundation of many of Australia’s food and beverage innovative, competitive food and other impediments rural and regional communities, processing occurs in Victoria. industry through the Next (such as skills shortages) the Next Generation Food There are about 2000 food Generation Food Strategy. to the efficient operation, Strategy also includes initiatives manufacturers in Victoria The strategy provides an action international competitiveness with a strong focus on developing employing around 59,000 people, plan for the next four years, with and continued growth of regionally-based food industry and contributing more than the aim of assisting the industry the food industry; clusters and networks. $16.5 billion each year to the achieve the Government’s food make the industry more Victorian economy. and fibre export target of attractive for investors and $12 billion by 2010. To continue to grow, Victoria’s address constraints to food industry must become The Government will contribute investment in the food more innovative and more an additional $2.3 million over industry; internationally competitive. The three years to this new strategy. establish a strong triple bottom Bracks Government is committed New programs will take effect line culture within the industry to working in partnership with from July 2004, with full details of to ensure its future marketability the food industry to fulfil the new initiatives to be released later and profitability; and industry’s vision of achieving this month by the Ministers for greater international recognition State and Regional Development work strategically to maximise as a competitive and reliable and Agriculture. the benefits from emerging source of high quality food. opportunities in each sector of the food industry. 040321 leading the way fa 4/15/04 2:44 PM Page 22

ACTION THIRTEEN MORE TAX CUTS FOR BUSINESS

13 VICTORIA: LEADING THE WAY ACTION 13 MORE TAX CUTS FOR BUSINESS OVER THE LAST FIVE YEARS, THE BRACKS GOVERNMENT HAS PROVIDED BUSINESS TAX RELIEF OF OVER $1 BILLION—INCLUDING CUTTING PAYROLL TAX TO THE SECOND LOWEST RATE IN AUSTRALIA AND ABOLISHING LAND TAX FOR ALMOST 60,000 VICTORIANS.

Since 1999, Victoria has gone The reforms to the land As a result of these reforms, Better Business Taxes: from being the State with the tax system will deliver: approximately 24,000 Victorians Lower, Fewer, Simpler highest number of business taxes an increase in the tax-free will be no longer be required to (2001) followed by Building to having the equal lowest. threshold by a further pay land tax while an additional Tomorrow’s Businesses Today This has been achieved while $25,000 to $175,000; 21,000 will receive land tax relief. (2002) saw the Bracks Moreover, Victoria will have the Government: the Government has maintained an upward adjustment over second highest tax-free threshold its commitment to deliver an two years to the land tax Reduce the payroll tax operating surplus in excess of for resident natural persons in rate from 5.75 per cent to brackets between $675,000 $100 million, cut net debt and Australia and the highest 5.25 per cent and increase and $1,080,000; and maintain Victoria’s Triple–A threshold for companies the payroll tax threshold a reduction in the top land credit rating. and trustees. from $515,000 to $550,000 tax rate from 5 per cent to Approximately 96 per cent of from 1 July 2003; Property values have risen 3.5 per cent by 2006-07, Victorians who pay land tax will strongly across Australia in recent with a further reduction to Abolish stamp duties pay less than they would in on non-residential leases years. While this has benefited 3 per cent by 2008-09. many individuals and businesses, New South Wales. and unquoted marketable These reforms will create it is also putting upward pressure The Bracks Government securities; a more competitive business on the tax burden faced by many continues to demonstrate its Raise the land tax threshold environment, driving new Victorian businesses and commitment to supporting from $85,000 to $150,000— investment and job opportunities. investors. Victorian business, delivering removing over 65,000 small In addition to these measures, businesses, investors and To continue building on Victoria’s a low-cost and competitive the Government is also improving self-funded retirees from competitive taxation environment, business environment and the efficiency and effectiveness the land tax net; and the Bracks Government will attracting new investment of the State’s taxation system provide land tax relief worth in to Victoria. Remove stamp duty on by enhancing our business excess of $1 billion over the mortgages from 1 July 2004 compliance regime and bringing next five years. This will be saving businesses and Victoria’s system in line with households over achieved while maintaining our other States. $220 million per year. commitment to responsible financial management and ensuring that the State’s finances are protected against any future cooling in property values. 040321 leading the way fa 4/15/04 2:44 PM Page 23

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The Bracks Government will provide land tax relief worth $1 billion over the next five years by: increasing the tax-free threshold to $175,000; raising the land tax brackets between $675,000 and $1,080,000; and reducing the top land tax rate from 5 per cent to 3.5 per cent by 2006-07, with a further reduction to 3 per cent by 2008-09. 040321 leading the way fa 4/15/04 2:44 PM Page 24

ACTION FOURTEEN LOWERING WORKCOVER COSTS FOR VICTORIAN BUSINESSES

14 VICTORIA: LEADING THE WAY ACTION 14 LOWERING WORKCOVER COSTS FOR VICTORIAN BUSINESSES REDUCING THE TIME AND COSTS OF DOING BUSINESS IN VICTORIA IS A TOP PRIORITY FOR THE BRACKS GOVERNMENT.

The current average WorkCover This improves Victoria’s The rate reduction is being premium rate has remained competitiveness even further, made on the advice of the unchanged since July 2000. and consolidates the Scheme Victorian WorkCover Authority In July 2001, the Government as provider of the second lowest Board in light of the new method stabilised premiums for small average premium rate compared for calculating premiums and the businesses to protect them from to all States, and 25 per cent WorkCover Scheme approaching volatility in premium movements. lower than New South Wales. full funding. At an average of 2.22 per cent of The Government will also These changes will increase remuneration, these premiums continue to simplify the the competitiveness of Victorian have been very competitive—the WorkCover premium system, businesses and will underscore second lowest in Australia—and improve communications with Victoria’s position as the leading have given Victorian businesses employers, reduce red tape and location for business investment an important cost advantage. increase incentives for employers and employment in Australia. To further lower costs for to improve their occupational Victorian businesses, the Bracks health and safety and return- Government will reduce the to-work performance. These WorkCover average premium measures will make more time rate by 10 per cent in 2004-05. available for businesses to pursue This will reduce costs to Victorian their core activities and ensure employers by $180 million per premiums more accurately reflect year, and reduces the average occupational health and safety WorkCover premium rate to performance. below 2 per cent. The Government will introduce a new method for calculating premiums that will place greater emphasis on industry and employer claims performance. 040321 leading the way fa 4/15/04 2:44 PM Page 25

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ACTION FIFTEEN ESTABLISHING THE VICTORIAN COMPETITION AND EFFICIENCY COMMISSION

15 VICTORIA: LEADING THE WAY ACTION 15 ESTABLISHING THE VICTORIAN COMPETITION AND EFFICIENCY COMMISSION THE BRACKS GOVERNMENT HAS LED AUSTRALIA IN MOST AREAS OF COMPETITION POLICY, WITH THE NATIONAL COMPETITION COUNCIL RECENTLY DESCRIBING VICTORIA’S PERFORMANCE AS “IMPRESSIVE”.

The Bracks Government will The Victorian Competition It will identify and assess Inquiries conducted by the continue to lead the way in and Efficiency Commission alternative regulatory and new Victorian Competition reducing the time and costs of strengthens and incorporates the administrative arrangements for and Efficiency Commission doing business in Victoria—and role currently played by the Office meeting those objectives and will consider a broad range the prices faced by Victorian of Regulation Reform. It will also lowering compliance costs, of ways of making it easier consumers—by ensuring that take over and expand upon a particularly for small business. to do business in Victoria, Government regulation does number of functions currently including: The Commission’s first two not unduly impact on business undertaken by other government inquiries will be into: improving the design of productivity and growth. bodies. The Commission will the regulatory impediments regulations; begin operating from 1 July 2004 The Bracks Government will to regional economic and will have three core removal of unnecessary adopt international best practice development (expected functions: or redundant legislation in scrutinising new legislative completion: April 2005); and and regulation, and the proposals through the reviewing regulatory impact regulation of the housing introduction of innovative, introduction of a Business Impact statements and advising on construction sector alternative, non-regulatory Assessment for all legislation with the economic impact of (expected completion: approaches; potentially significant effects for significant new legislation; June 2005). consolidating and business and competition. undertaking inquiries into The Commission will be streamlining regulatory and This will specifically include an matters referred to it by approval bodies; established as a statutory body, assessment of the impact the Government; and simpler consultation on small business. reporting to the Treasurer, with operating Victoria’s Commissioners drawn from and advisory mechanisms, The Bracks Government will Competitive Neutrality Unit. experienced business leaders, including streamlining renew its focus on regulation The Commission’s inquiries will academics and public policy representative and advisory reform and the creation consider how to make it easier practitioners. bodies; of a competitive business to do business in Victoria by simplifying approval environment by establishing examining, reducing and processes; and the Victorian Competition streamlining regulation. more effective enforcement and Efficiency Commission. and/or administration that The Commission will be the The Commission will examine reduces the burden on law State’s foremost advisory body whether the Government’s policy abiding firms while better on business regulation reform objectives are being met through targeting poor performers. and opportunities for improving existing regulatory arrangements. Victoria’s competitive position. 040321 leading the way fa 4/15/04 2:44 PM Page 27

ACTION SIXTEEN CUTTING RED TAPE IN DEVELOPMENT APPROVALS

ECONOMIC STATEMENT APRIL 2004 PAGES 26/2716 ACTION 16 CUTTING RED TAPE IN DEVELOPMENT APPROVALS PLANNING DECISIONS ARE CRITICAL IN SHAPING THE LOCATION, TIMING AND COST OF INVESTMENTS ACROSS THE STATE.

Planning decisions influence the there will be a reduction New Priority Development availability and price of land and in the types of constructions Zones will be created in which Melbourne 2030: Planning for raise the costs of development requiring permits, and the the Government will have lead Sustainable Growth (October when decisions are delayed by types of permits requiring responsibility for approvals for 2003) is the Government’s planning authorities. For the referral to other authorities projects of State and regional strategy for managing growth in metropolitan Melbourne, Victorian economy to flourish, (such as water authorities, significance. This will enable the as the city grows by up to the State’s planning system must VicRoads and VicTrack). Minister to establish decision- 1 million people over the next making and management be adaptable and responsive. The time savings to be 30 years. The strategy is an arrangements that reflect achieved by these measures integrated set of policies and The Government will provide will significantly lower the costs the scale and complexity initiatives directed at enabling an additional $3.1 million over of building with statewide of particular projects. the economy to grow while three years for Better Decisions savings across the housing and To support these new enhancing the qualities of Faster—a package of construction sector of almost arrangements, the Government Melbourne as a great place 30 initiatives to improve $50 million per annum. will establish an expert Priority to live, do business and visit. the efficiency and strength The Minister for Planning will Developments Panel to work of the planning system. announce full details of the Better closely with project proponents By promoting better prepared Decisions Faster package shortly. and local government to speed applications and speeding up up decision-making processes. decisions on permits and appeals The Bracks Government These new Priority Development through streamlined processes, recognises that the timely Zones could be applied to the costs to business, councils facilitation of projects of State Melbourne 2030 projects such and the community will be and regional significance is as Transit Cities and selected reduced significantly. particularly critical. Accordingly, the Bracks Government will Activity Centres. As a result of the Better introduce changes to provide These new arrangements will Decisions Faster package: faster approval processes for come into effect in 2005. the time for planning decisions developments of State and to be made will be cut by up regional significance. to 50 per cent; there will be a reduction in delays at VCAT, with the time taken to finalise planning appeals lowered from the current rate of 72 per cent determined in 28 weeks to around 90 per cent finalised within 20 weeks; and 040321 leading the way fa 4/15/04 2:44 PM Page 28

ACTION SEVENTEEN TAKING NEW DIRECTIONS IN INDUSTRIAL RELATIONS

17 VICTORIA: LEADING THE WAY ACTION 17 TAKING NEW DIRECTIONS IN INDUSTRIAL RELATIONS THE BRACKS GOVERNMENT RECOGNISES THE IMPORTANCE OF HARMONIOUS, COOPERATIVE WORKPLACES TO PRODUCTIVITY AND ECONOMIC GROWTH, AND TO MAINTAINING VICTORIA’S REPUTATION AS A LEADING INVESTMENT DESTINATION.

The Government’s approach to industrial seek from the Commonwealth the In refocussing its efforts to promote high relations has been successful, reducing power to bring applications to the performance workplaces for the benefit of working days lost to industrial disputes Industrial Relations Commission businesses and employees, Industrial Relations in 2003 by 30 per cent from 1999 levels. to terminate bargaining periods Victoria will: In an increasingly competitive world, in circumstances where industrial in conjunction with unions and employer more needs to be done to ensure action is threatening the health, safety groups, use the current Partners at Work Victoria’s industrial relations remain or welfare of Victorians, or causing program to fund the development of model constructive and cooperative, and significant damage to the State’s approaches to promoting workplace flexibility. contribute to Victoria’s international economy. This power currently Half the funding will be provided upon competitiveness. resides solely with the Commonwealth. commencement of negotiations, with the In addition, the Bracks Government balance paid upon successful completion; Accordingly, the Bracks Government will take action to prevent the most will pursue its efforts to make Victorian sponsor an initiative to develop human damaging industrial disputes and to workplaces more productive and resource and industrial relations capacities refocus its efforts on creating more competitive, by continuing to provide through training and support for pilot programs high quality specialist advice and in the automotive and components industry. productive workplaces. assistance to Victorian businesses. This will supplement the Government’s existing The Government is determined to prevent commitment to union delegate training through the kind of disputes that can cause damage Through Industrial Relations Victoria, the Union Education Foundation; to vital State industries and projects, and the Bracks Government is refocussing its efforts to provide active assistance work with industry parties, the Building Industry to Victoria’s reputation as a place to Consultative Committee and the Manufacturing invest and a place where workers are on a range of workplace issues to Industry Consultative Committee to address valued and rewarded appropriately. promote high performance workplaces for the benefit of both businesses image, skills and industrial relations issues The Bracks Government will: in the Victorian building and manufacturing and employees. introduce a new Emergency industries; and New tasks for Industrial Relations Powers Act. The new legislation will Victoria include: develop a series of packages for new investors consolidate Victoria's emergency powers and smaller investors who do not typically and make specific reference to the use funding the development of model engage government for assistance with of such powers in circumstances of approaches to promoting workplace industrial relations issues. The packages will industrial disputation. The legislation flexibility; focus on the construction and manufacturing sectors and provide guidance on a strategic will stipulate the terms and conditions sponsoring the development of approach to the management of industrial under which work shall be performed, human resource and industrial relations relations issues. pending formal resolution by conciliation capacities in the automotive and and arbitration. The interim order will components industry; only apply during the period of the working to address image, skills emergency, where an essential service and industrial relations issues in the or vital State project is threatened or Victorian building and manufacturing affected by industrial action; and industries; and developing packages for new investors and smaller investors who do not typically engage government for assistance with industrial relations issues. 040321 leading the way fa 4/15/04 2:44 PM Page 29

ACTION EIGHTEEN OPEN FOR BUSINESS 24/7

ECONOMIC STATEMENT APRIL 2004 PAGES 28/2918 ACTION 18 OPEN FOR BUSINESS 24/7 NEW BUSINESS FORMATION IS AN IMPORTANT DRIVER OF ECONOMIC GROWTH AND JOB CREATION.

Small business contributes to The Victorian Business Master nearly half of all new jobs in the Key is a step forward in the The Victorian Business Master Key will provide a wide array private sector across Victoria. responsiveness of the Victorian of services to businesses, including: The challenges facing Victoria will Government to business needs. a private and secure filing system for all their transactions create a tougher environment for It is much smarter—and more with government; small business. customised—than a simple portal reminders (eg. annual licence fee payments); The Bracks Government is to government information and services. relaying new information tailored to their particular needs making it easier for businesses (eg. new legislation or tax rulings); to access government The Master Key will allow integration with regulatory requirements by other levels of information in a timely and businesses, particularly new government—such as, acquiring a Tax File Number and an straightforward manner. start-ups, to manage all dealings Australian Business Number; and with government agencies For small business, particularly laying the foundation for a fully integrated, on-line case through a personalised on-line new businesses, dealing with management service for business across all government filing system. By registering government processes and departments and levels of government. requirements can be confusing on-line with the Victorian Business and time consuming. The Master Key, new businesses will Government will continue to receive customised guidance through the regulatory processes SOME OF THE TRANSACTIONS NOW AVAILABLE SINCE pursue its e-government strategy AVAILABLE ON-LINE of maximising the benefits of required when establishing and Land Tax Clearance Certificates January 2001 then operating a business in new, networked technologies, Renewal of Business Names February 2001 with an increasing number of Victoria—including registration, Pay-roll Tax Annual Adjustments June 2001 registration, fee paying and other paying fees and taxes, and regulatory requirements now fulfilling any other obligations Land Tax e-Objections June 2001 available through the Internet. on-line. Appeals Fees (relating to Building Regulations, January 2002 Building Code and provisions of the Building Act) Alongside the e-government strategy, to assist new Search of Victorian Names Register June 2002 businesses in their dealings Referral to the Small Business Commissioner May 2003 with government agencies, the of a Retail Tenancy Dispute Bracks Government will provide Registration of Retail Lease Details July 2003 $6 million over three years to Incorporated Association Change of Details August 2003 establish the Victorian Business E-communications with Estate Agents March 2004 Master Key initiative. 040321 leading the way fa 4/15/04 2:44 PM Page 30

ACTION NINETEEN MAINTAINING OUR LOW-COST AND RELIABLE ENERGY ADVANTAGE

19 VICTORIA: LEADING THE WAY ACTION 19 MAINTAINING OUR LOW-COST AND RELIABLE ENERGY ADVANTAGE ENERGY IS AN ESSENTIAL SERVICE THAT UNDERPINS THE VICTORIAN ECONOMY.

A secure, reliable and affordable In response, the Bracks The Bracks Government’s $100 million Victorian supply of power and gas plays Government is identifying Greenhouse Strategy (2002), included investments a major role in the long-term directions for future energy in the more efficient use of coal and energy: sustainability of the economy. investment and clear plans for $8.45 million in the Renewable Energy Support Fund Despite gains in energy efficiency, cutting emissions over the coming to assist in the development of small scale the demand for power and years through its Greenhouse renewable energy generation projects; gas is increasing as the Challenge for Energy project. economy grows. $14.25 million to establish a Centre for Energy and The Victorian Government Greenhouse Technologies in the Latrobe Valley; The Bracks Government continues is at the forefront of supporting to play a leading role in national leading-edge research efforts into $2.65 million to help businesses meet new energy and greenhouse requirements under EPA works energy market reforms, which are reliable and sustainable energy approvals and licensing; boosting investor confidence and alternatives. The Bracks improving the security and Government will co-invest $1.8 million for pilot programs to improve energy efficiency of the national electricity in the development of new efficiency of public and low income housing; and and gas markets. In addition, the technologies to enable the $750,000 for partnerships with electricity retailers Government is directly facilitating sustainable utilisation of to promote Green Power. new energy supply projects. It has Victoria’s vast coal reserves attracted over 1000 Megawatts as a cheap, reliable and secure of new electricity generation source of energy. capacity and has facilitated major Investments will include: investment in gas exploration, increasing the Government’s development and production, financial support for the as well as several major Cooperative Research Centre augmentations to the gas and for Clean Power from Lignite electricity transmission system. to $1.5 million per year from Victoria’s vast brown coal 2005-06; and reserves, which currently account contributing $750,000 to for 85 per cent of the State’s identify and assess geological electricity generation, will continue sites in Victoria with potential to provide much of the State’s for geosequestration—the low-cost and reliable energy. storage of carbon dioxide deep If harnessed responsibly, the underground rather than State’s coal reserves will provide releasing it into the atmosphere. Victorians with secure energy supplies for hundreds of years. The Government will also host the Second Carbon Geosequestration However, there is growing global Leadership Forum in Melbourne pressure on countries to reduce in September 2004, which will their carbon dioxide emissions bring to Melbourne world leaders to protect the environment. in geosequestration and contribute to Victoria’s reputation as a leader in renewable energy and greenhouse technologies. 040321 leading the way fa 4/15/04 2:44 PM Page 31

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VICTORIA: LEADING THE WAY SUMMARY

LOWER COSTS FOR VICTORIAN BUSINESSES

✓ Land Tax Cuts $1 billion over five years MORE JOBS ACROSS VICTORIA ✓ Workcover Premiums ✓ Melbourne Convention Centre cut by 10 per cent, saving 2600 new full-time jobs $180 million per year over 25 years ✓ Building Regulation ✓ Invest Victoria Streamlined DRIVING NEW driving 16,000 additional $49 million saving INVESTMENT jobs per year ✓ Channel Deepening ✓ International Education Market ✓ Mortgage Duty Abolition valued between from 1 July increased international $350-$450 million DRIVING EXPORT students driving over over $220 million savings ✓ Dynon Port Link Rail 1000 new Victorian jobs OPPORTUNITIES for households and potential $120 million ✓ Opening Doors Export Plan businesses per year ✓ Make it Happen in investment Provincial Victoria supporting $30 billion export target by 2010 ✓ Redeveloped Melbourne driving population and Wholesale Markets jobs growth ✓ Invest Victoria driving over $1 billion of overseas offices to have investment over the next new export focus 20 years ✓ International Education Market ✓ Melbourne Convention Centre 20,000 more students core Convention Centre driving more export growth valued at around $370 million ✓ Next Generation Food Strategy ✓ Invest Victoria action plan to achieve food and fibre export target of $6 billion of new $12 billion by 2010. investment over four years 040321 leading the way cov fa 4/15/04 2:45 PM Page 3

PUBLISHED BY Department of Premier and Cabinet 1 Treasury Place April 2004

© Copyright State of Victoria 2004 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968 Authorised by the Victorian Government, Melbourne

Printed by McLaren Press, 11-19 Lithgow Street, Abbotsford Victoria 3067 Printed on Monza High Gloss Recycled paper

ISBN 1 920921 06 0 040321 leading the way cov fa 4/15/04 2:45 PM Page 4