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040321 Leading the Way Fa 4/15/04 2:43 PM Page 1 040321 leading the way cov fa 4/15/04 2:45 PM Page 1 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 PAGE 01 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
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