ALPINE RESORTS GOVERNANCE REFORM Discussion Paper

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ALPINE RESORTS GOVERNANCE REFORM Discussion Paper ALPINE RESORTS GOVERNANCE REFORM Discussion Paper January 2017 © The State of Victoria Department of Environment, Land, Water and Planning 2017 This work is licensed under a Creative Commons Attribution 4.0 International licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Coat of Arms, the Victorian Government logo and the Department of Environment, Land, Water and Planning (DELWP) logo. To view a copy of this licence, visit creativecommons.org/licenses/by/4.0/ Printed by Finsbury Green, Melbourne. ISBN 978-1-76047-437-9 (print) ISBN 978-1-76047-438-6 (pdf) Disclaimer This publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Accessibility If you would like to receive this publication in an alternative format, please telephone the DELWP Customer Service Centre on 136 186, or email [email protected], via the National Relay Service on 133 677, www.relayservice.com.au. This document is also available on the internet at www.delwp.vic.gov.au Department of Environment, Land, Water and Planning Minister’s Foreword Tourism and recreation opportunities in the alpine resorts provide important benefits to regional economies through jobs and improved local services. Each year the resorts attract over one million visitors and in winter of 2015 alone they generated $671 million in Gross State Product and around 5,942 jobs. Our changing climate is driving the need to reassess • Continues to provide economic and social benefits and improve land and environmental management to surrounding regions and across Victoria practices across Victoria, from our marine and coastal environments to our alpine regions. • Facilitates collaboration across the sector and ensures effective land management In February 2016, the Victorian Government announced that reform of the alpine resorts • Enables a sector-wide strategic approach to issues governance arrangements is required to ensure the associated with infrastructure investment. sector can effectively respond and adapt to current The Victorian Government is seeking feedback on a and future challenges, particularly the impacts of range of questions that will guide decision making climate change. about how best to build the sector’s capacity to Alpine resorts have a special place in the hearts of respond to current and future challenges. In many Victorians, and we need to ensure they particular, the people who live and work at Victoria’s continue to maximise economic and social benefits alpine resorts have extensive knowledge of the for all Victorians. resorts and can make a valuable contribution to the process of reforming their governance. The Alpine Resort Futures Project, which will support the sector to determine how best to adapt to climate The need for the sector to evolve, with new and change, combines both adaptation planning and innovative business operations, is critical to its governance structural reform. The Alpine Resorts success and the success of surrounding regional Governance Reform Project is the first stage of the economies. We are invested in supporting the alpine broader Alpine Resort Futures Project. resorts to adapt to our changing climate and ensuring they deliver a diverse range of alpine and This Discussion Paper proposes options to improve recreation experiences. the governance of the alpine resorts. It is broadly acknowledged that the current governance structure is complex. Fundamental structural reform is required to produce a simpler framework and to ensure the full potential of Victoria’s alpine resorts is realised. The governance reform project aims to ensure the The Hon. Lily D’Ambrosio MP alpine sector has a governance and operating model Minister for Energy, Environment and Climate Change that: • Enables effective planning to adapt to the impacts of climate change • Enhances the public land and environmental values derived from the alpine resorts Alpine Resorts Governance Reform Discussion Paper Minister's Foreword 3 Department of Environment, Land, Water and Planning Executive Summary Victoria’s alpine resorts are popular recreational and tourism destinations, generating substantial social and economic benefits for local, regional and Victorian communities. The alpine ecosystems provide the foundation for these benefits and have significant intrinsic value. The Victorian Government is committed to ensuring that the resorts maximise the economic and social benefits to surrounding regions and Victorians generally. The need for change Following feedback from stakeholders, the government of the day attempted to address the Climate change will significantly impact on Victoria’s issues identified in the SSA review within the existing alpine resorts, including shorter snow seasons, governance structure through the Alpine Resorts reduced snow cover and a contraction in conditions Strategic Plan 2012. This approach has had limited suitable for snowmaking. This is likely to have a success and the recommendations of the SSA direct effect on alpine visitor numbers and regional Review remain relevant. economies. The resorts require a sector-wide strategic and collaborative approach to The current governance structure is complex, determine and implement effective incremental inefficient and ineffective (refer to Part C). and transformational measures to adapt to Fundamental structural reform and legislative climate changes. amendment is required to realise the full potential of Victoria’s alpine resort areas now and into the future. The governance structure of the alpine resorts has been the subject of a number of reviews, including the State Services Authority (SSA) Review of Alpine Resort Areas (2008).1 The SSA review proposed structural changes to the governance arrangements to reduce fragmentation of roles and structures and drive a more integrated, long-term, strategic approach in key areas such as planning, marketing, infrastructure and service delivery requirements. 1 State Services Authority (2008) Review of Alpine Resort Areas. Alpine Resorts Governance Reform Discussion Paper Executive Summary 5 Department of Environment, Land, Water and Planning Current governance Options for reform There are six alpine resorts, which are governed by A variety of legal forms were considered, however it four Alpine Resort Management Boards (ARMBs)2 became clear that most would not deliver both the and the Alpine Resorts Co-ordinating Council government objectives and good governance for (ARCC). Current governance of the ARMBs and the Victoria’s alpine resorts. A statutory authority/ies ARCC is depicted in Figure 1. (body corporate) with a board and CEO administration was seen as the only viable Criteria for assessment of options entity structure. This paper focuses on two management models: The following criteria for assessing the options incorporate best practice climate adaptation 1. A single Alpine Resorts Authority thinking and the Premier’s Circular No. 2013/2 on the (operating as a statutory body corporate with Creation and Review of Non-Departmental Entities board and CEO administration) Policy and Processes. A single overarching Alpine Resorts Authority to provide sector-wide strategic planning and 1. Is there a role for government? If so, to what management across all the resorts. Offices may extent? be retained at individual resorts for day-to-day 2. What degree of autonomy from the Department operation and management matters. DELWP for Environment, Land, Water and Planning would provide the principal source of alpine (DELWP) and Minister for Energy, Environment policy advice to the Minister. This option would and Climate Change is required? deliver a consolidated and integrated responsibility for alpine management and 3. What is the appropriate form of entity/entities service delivery across Victoria. This legal form that will: would likely be identical to the current legal form of an ARMB. – enhance the economic benefit to community 2. Separate Northern Alpine and Southern Alpine – enhance the social benefit to community Resorts Authorities. (operating as statutory body corporates with – facilitate collaboration board and CEO administration) Day-to-day operation and management would – facilitate community engagement be undertaken by a consolidated Northern – provide flexibility to address climate adaptation Alpine Resorts authority (Falls Creek, Mount and sector transition needs Buller, Mount Stirling and Mount Hotham) and a Southern Alpine Resorts authority (Mount Baw – improve the financial sustainability of the resorts Baw and Lake Mountain). This model would have and reduce reliance on external funding? site operations and management reporting to the corresponding authority. DELWP would 4. Can the functions be performed by existing/ provide the policy and planning framework in alternate entity/entities? which the two entities and sector would operate and provide oversight of the entities on behalf of the Minister. Merging the existing structures into two entities would build capability and scale to undertake integrated strategic planning, and recognises the common issues faced by the ‘larger
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