PLAN
Table of contents
Minister‟s Foreword ...... 1 Message from the Chair of the Northern Regional Reference Group ...... 3 About this plan ...... 5 Part 1 – Economic, environmental and social context ...... 8 Introduction ...... 9 Northern region‟s core assets and strengths ...... 10 1.1 Place ...... 11 1.1.1 The northern region ...... 11 1.1.2 Regional infrastructure...... 19 1.2 People...... 29 1.2.1 Population distribution and trends ...... 29 1.2.2 Age profile of the population ...... 31 1.2.3 Education and skills ...... 33 1.2.4 Labour force ...... 37 1.3 Performance ...... 38 1.3.1 Industry structure ...... 38 1.3.2 The regional economy ...... 42 1.4 Challenges and opportunities...... 44 1.4.1 Northern region‟s challenges ...... 44 1.4.2 Northern region‟s opportunities...... 46 Part 2 – Regional action plan ...... 49 2.1 Vision ...... 50 2.2 Goals, objectives and actions ...... 51 Goal One To support and grow businesses in the northern region ...... 52 Goal Two To maximise economic potential in key sectors in the northern region ...... 74 Goal Three To improve the social and environmental sustainability of the economy in the northern region ...... 98 Goal Four To support and grow communities in the northern region ...... 112 Part 3 - Priority industry sector profiles ...... 126 Advanced manufacturing sector profile - northern region ...... 127 Dairy sub-sector profile - northern region ...... 130 Fruit sub-sector profile - northern region ...... 132 Poppy sub-sector profile - northern region ...... 136 Red meat sub-sector profile - northern region ...... 139 Vegetables sub-sector profile - northern region ...... 142 Wine sub-sector profile - northern region ...... 146 Forestry and related products sector profile - northern region ...... 149 Mining and mineral processing sector profile - northern region ...... 153 Tourism sector profile - northern region ...... 156 References ...... 161
Minister’s Foreword
This is a challenging time for regional Australia. Around the world, national and regional economies are experiencing structural adjustment, resulting from uncertainty in global markets. Australia‟s strong currency is cited as the major reason for the contraction of export markets. A high Australian dollar means our exporters - farmers, miners, tourism operators, manufacturers and education providers - become less competitive on the world stage.
Tasmania is not immune from this. Our three regions, their industries and their communities, are in transition. We in Government know and acknowledge the pressures this has brought to bear on both the business sector and the communities involved.
Change is not always easy, but sometimes it is necessary.
In 2011, in order to help guide us through this transitional phase, the Tasmanian Government struck a new direction for the state‟s future by launching its Economic Development Plan. For the next 10 years and beyond, this state-wide plan will guide Tasmania towards a vision of improving the prosperity of all Tasmanians through implementing a program of development that is economically sound and socially and environmentally sustainable.
In carrying out the Plan, the government is embracing a partnership approach with industry. The basis of this approach is for all three levels of government - Australian, Tasmanian and Local - to align their priorities and strategies to grow and support our regional economies and communities.
Importantly, the Economic Development Plan signalled the development of three regional economic development plans to coordinate government actions at a regional level in order to build resilient regional economies, through making them more diverse. Developing plans such as the Northern Regional Economic Development Plan provides a timely opportunity for us to reflect on where the region has been, where it is now, and where it could go. This Northern Regional Economic Development Plan has been used to identify the specific opportunities and challenges of the region and integrate these with the overarching economic development priorities outlined in the Economic Development Plan.
Early in the development of the regional economic development plans, the Tasmanian Government recognised it could not do this task alone. This regional plan has built on existing work undertaken by councils and regional bodies in the north as well as by the Australian Government. It has also drawn on local expertise and knowledge of regional issues, through the valued input of local enterprises, the tireless efforts of the Regional Reference Group, and of community members across the region who attended the community conversations held in March and August 2012 to provide input into the regional plan.
This Plan is about making the most of the strengths and comparative advantages of the northern region. As well, it is about recognising and supporting those sectors of the economy, such as retail, hospitality, and other services that play such a major role in the employment, vibrancy and liveability of the region and its communities. There are many opportunities for growth and development in the north. For example, in recent times, it has become a magnet for international and interstate golfing enthusiasts, has established a global reputation as a producer of world class wines, beer and food, and is home to the renowned Australian Maritime College.
Tasmania has three distinct and diverse regional economies, each with its own unique advantages such as those above. What is clear in all that we do - live, work, study, visit, trade and invest - is that Tasmania‟s brand is fundamental to our future economic prosperity. That is why the Tasmanian Government is funding the Brand Tasmania Council to continue its work as the custodian and champion of the Tasmanian Brand.
It is also clear that each region will need to move on from the past. The new opportunities may well result in the regional economy being one that is quite different from that which exists now or indeed has existed in the
Regional Economic Development Plan: Northern Tasmania | 1 of 164 recent past. The future will also require government at all levels and the community to learn from and build on the past and embrace these new opportunities. To do this, government will work in partnership with regional communities to develop local leaders, to help lead the way.
I look forward to working with you to meet that challenge.
And I have pleasure in commending to you this Northern Regional Economic Development Plan.
David O’Byrne Minister for Economic Development
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Message from the Chair of the Northern Regional Reference Group
Tasmania is very much connected to the global economy and the social, environmental, economic and political factors that shape it. Significant changes are occurring worldwide, and the macro economic impacts of those changes have been felt keenly in all regions of the State in recent times.
In response to these impacts, the Tasmanian Government has invested heavily in a strategically focussed economic development planning process to establish clear directions for the State's economic development priorities over a 10 year planning horizon. The Tasmanian Economic Development Plan is the result of that process and, in turn, has led to the development of this Northern Regional Economic Development Plan (the Plan).
The Plan provides a contemporary evidence-based systems approach to economic development in our region based on the establishment and exploitation of sustainable competitive advantage.
The Northern Regional Reference Group, which I am privileged to chair, has played an important role in the planning process. The insights, skills and experiences offered by each member have been highly valued and have resulted in the provision of high quality strategic advice to the Minister over a long period of intensive activity. I would like to use this opportunity to publicly endorse and thank each member for their contribution to date and to encourage their on-going involvement.
Plans like this are only successful if they flow from a strong participatory process, in this case through robust business and community engagement. The Regional Reference Group played an important role in supporting the high level of community engagement, in particular.
The Plan provides a roadmap to the future of our region - together we envision the Plan as fundamentally helping to develop, diversify and strengthen our regional economy and make it more resilient.
The Regional Reference Group strongly endorses the Plan, and encourages all community stakeholders to engage with its implementation. The Plan is designed to be continually used to drive strategically focussed economic development, rather than sit on a shelf for occasional reference.
Pragmatically, we recognise that on-going sustained effort and innovation are the key ingredients for the successful implementation of the Plan. In a sense the real work is just beginning, and the Regional Reference Group will play a key role in supporting this activity.
In doing so, the Group will continue its valuable contribution to the fundamental improvement of the prosperity and quality of life for the citizens of our region.
John Pitt Chair, Northern Regional Reference Group
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The Northern Regional Reference Group
Back row: Robert Dobrzynski (Launceston City Council), Tom Black (Regional Development Australia – Tasmania), Jane Bennett (Jane Bennett Consulting), Kim Seagram (Stillwater Restaurant) (Deputy Chair), Dr Tony McCall (Institute for Regional Development – UTAS).
Front row: James McKee (NRM North), Greg Bott (Rabobank), Craig Perkins (Regional Development Australia – Tasmania), Barry Easther (Northern Tasmania Development).
Absent: Michael Bailey (Launceston Chamber of Commerce), Barry Cash (Ben Lomond Water), Pamela Graham (Launceston Airport), Michael Jones (Ecka Granules), John Pitt (pitt&sherry) (Chair).
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About this plan
When the Minister for Economic Development launched the Tasmanian Economic Development Plan in August 2011, he signalled the development of three regional plans, to make the state-wide plan relevant and applicable at the community level. This Northern Regional Economic Development Plan (the Plan) is one of those three. It is a state government plan that provides a framework at the regional level to determine economic development strategic priorities and to coordinate their implementation across government. The Plan has a 10 year Vision, just like the state-wide Economic Development Plan from which it is derived.
There are several characteristics of this regional economic development plan: To develop it, a whole-of-government approach was adopted, drawing on economic development programs, initiatives and actions being undertaken in Tasmania and, in particular, in the northern region, by the three levels of government. The Plan acknowledges that community development is an important part of contemporary economic development. The Plan‟s development has involved a high level of collaboration and consultation – across government, with communities across the region, and with industry at peak body and individual enterprise levels. It is underpinned by the notion of partnership, with many of the actions in the Plan being undertaken in collaboration with other stakeholders. It has a high level of accountability and transparency. The Plan will be a dynamic document and will be reviewed and updated every two years.
The Plan focuses on the following levers that government can influence to facilitate economic development: Infrastructure Skills Business enabling environment Access to finance Investment attraction, facilitation and retention Trade promotion, branding and marketing Business development services Facilitation, information exchange and collaboration.
The Plan consists of the following three parts: 1. The key assets of and opportunities for the region, leading to a regional economic, social and environmental context that describes the people and places that make up the region, and its performance. 2. A vision, followed by: a. Current actions that are already planned, committed and funded. These are organised under the four goals of the Economic Development Plan. Further organisation occurs under the lever headings above. b. Suggested actions that will be evaluated, prioritised and, where appropriate, implemented by government. 3. Sectoral profiles for each of the priority industry sectors that are the focus of the Plan. These profiles provide a snapshot of those sectors and outline the constraints acting to hinder the growth of each sector, as well as the opportunities for accelerating their growth at a regional level.
An Overview of the Plan has also been developed, to provide a high-level synopsis of the Plan. All parts of the Plan, including the Overview, are available online at www.development.tas.gov.au.
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How the Plan was developed A great deal of collaboration underpinned the development of this Plan. From the outset, liaison occurred with relevant state and federal government agencies, as well as regional development bodies and local councils. Documents sourced from these organisations formed the basis of the Plan and contributed many of the actions that make up the Plan. Meetings with businesses and governments at all levels confirmed data gleaned from the Australian Bureau of Statistics – and where those data were unavailable, modelling of the data was out-sourced.
Additional content came from a comprehensive engagement process. Ideas and potential future actions were put forward by members of communities from across the region, as well as members of the business community and from government agencies.
How and with whom engagement occurred A crucial part of the development of this Plan has been a commitment to engage with a broad range of stakeholders, to gain input, commitment and buy-in. This collaboration and engagement of stakeholders has occurred at the whole-of-economy, regional, community and sectoral levels.
Whole-of-economy level engagement Whole-of-economy external stakeholder engagement included meetings with representatives of Tasmania‟s state and regional peak organisations, Tasmanian and Australian Government agencies and local councils, and industry bodies.
Regional level engagement In October 2011, the Minister for Economic Development established three regional reference groups to provide advice to the Minister on regional economic development matters and provide input into the regional plans. Those groups consist of representatives from all levels of government, together with business and community leaders. The Northern Regional Reference Group has met on a regular basis and has worked actively to assist in the development of this Plan.
Community engagement In March and April, community conversations were held across the region to provide community members with an opportunity to describe the future community they wanted, as part of the northern region. The conversations also enabled members of the community to tell their own stories of economic success and to identify the factors that are crucial to success. These communities were revisited in August to inform them of the outcomes of the consultation process. As well, participants were invited to provide feedback on proposed actions for the Plan.
Sector level engagement From an early stage in the development of this Plan, engagement occurred with individual enterprises as well as with regional and state-wide industry peak bodies about development of its sectoral profiles. In particular, regular input was sought from Industry Advisory Committees, the key groups that inform the strategic development and sustainable growth of the Tasmanian economy, on development of key strategies contained in the sectoral profiles.
How reporting will occur, to whom and how often Reports on the implementation status of significant projects of the Economic Development Plan are provided quarterly to the Heads of Agency Economic Development Plan Sub-Committee and subsequently to the Economic Development Plan Sub-Committee of Cabinet for endorsement. A report of the progress of the Economic Development Plan is being released mid November 2012. Annual reports on achievements from the implementation of the Northern Regional Economic Development Plan will be provided to the Northern Regional Reference Group and regional communities.
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How the Plan will be reviewed and evaluated Every two years, Economic Development Plan projects will be reviewed to assess their effectiveness and contribution to the goals of the Economic Development Plan. The first review will be undertaken in Q4 2012- 13 to align with the budget cycle. An updated Economic Development Plan and three updated Regional Economic Development Plans will be released in Q1 2013-14. At mid-term (five years) an external evaluation will determine the contribution of the strategies and projects to the goals and purpose of the Economic Development Plan. At full-term (10 years), an external impact assessment of the effectiveness of the strategies in realising the Economic Development Plan’s goals and contribution to its purpose will be undertaken.
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Part 1 – Economic, environmental and social context
Introduction
Northern region‟s core assets and strengths
1.1 Place 1.1.1 The northern region 1.1.2 Regional infrastructure
1.2 People 1.2.1 Population distribution and trends 1.2.2 Age profile of the population 1.2.3 Education and skills 1.2.4 Labour force
1.3 Performance 1.3.1 Industry structure 1.3.2 The regional economy
1.4 Challenges and opportunities 1.4.1 Northern region‟s challenges 1.4.2 Northern region‟s opportunities
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Introduction
The economic, environmental and social context outlines the geographic, demographic, economic and resource characteristics of northern Tasmania, together with the changing industry and population dynamics of the region, its challenges and opportunities.
The regional economy of northern Tasmania has grown from an economy founded on primary production, forestry and tin mining, through a period of focus on specialised manufacturing (particularly in the Bell Bay industrial precinct), to the existing economy based on regional service delivery, tourism and the export of agricultural and manufactured products.
Whilst northern Tasmania‟s base economy is still centred primarily on food and agriculture, mineral processing, forestry and manufacturing, it is a region in transition from heavy reliance on commodities production and manufacturing to a more diversified economy.
Over recent decades, global economic conditions have forced change on the region‟s economy. Manufacturing of clothing and textiles - and more recently automotive parts engineering - have declined, principally due to competition from emerging economies, a high Australian dollar and increasing transportation costs.
Increasingly, services are driving economic growth in the region, and retail, health, education, tourism and hospitality, financial and personal services (principally based in Launceston) are the sectors most likely to see future employment growth.
Yet, the service economy depends on the strength and prosperity of the base economy for its survival. There is interdependence between primary, secondary and service-based industries and between Launceston and its immediate surrounds, the Greater Launceston area, and the region‟s rural areas and dispersed manufacturing centres.
Many of the more remote rural communities in the region have not enjoyed the same growth and breadth of opportunities as the Greater Launceston area. Rural areas continue to grapple with industry closures, resultant high unemployment, issues with transport and communication infrastructure and a persistent out-migration of the population, particularly young people.
However, when considered in its full regional context, northern Tasmania has grown into a significant business hub and the centre for a growing regional population based on its competitive and natural advantages.
Investments in new industries and sectors are needed to further strengthen the economy of the region, underpinned by improved infrastructure, skills training and access to new markets. At the same time, growth in service industries and continued investment in northern Tasmania‟s traditional manufacturing and primary industry sectors will underpin any economic development strategy for the future.
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Northern region’s core assets and strengths
Location
A key advantage of the northern region is its physical location. The northern region is advantageously positioned, particularly with respect to Tasmania‟s other population centres and as a link between Tasmania and the mainland states. Launceston is less than two and a half hours drive from 90 per cent of Tasmania‟s population, a 45 minute flight from Melbourne and an 80 minute flight from Sydney.
Natural resources
Northern Tasmania has a diverse natural environment including significant mountainous areas, extensive forests and world-renowned pristine beaches, which together underpin a strong environmental reputation that is a draw card for tourists. The region has highly productive agricultural land, abundant clean, fresh water and a temperate climate. It has considerable renewable energy resources, principally utilized through hydro power, with developing capability in wind and potential tidal and geothermal power generation.
Infrastructure
The City of Launceston features key regional infrastructure facilities, including a major regional airport carrying large volumes of passengers and tourists and offering substantial freight handling capacity. At the mouth of the Tamar River, the region boasts a major deep water port at Bell Bay. There Northern Tasmania is are substantial industrial precincts across the region, including the Bell Bay well-positioned to grow its industrial zone, the largest heavy industrial area in the state. The region has share of Tasmania‟s port high quality tourism resources, facilities and attractions, including significant and airport freight and, heritage properties. The northern region has benefited from early National increasingly, be a major Broadband Network (NBN) connection, with Scottsdale one of only three gateway seaport and Tasmanian towns to be connected in Stage 1 of the NBN rollout in 2010 and airport for Tasmania. subsequent NBN rollout occurring in Deloraine, George Town, Launceston and St Helens.
Industry
Agriculture across the region is regarded as highly productive and expanding.1 The northern region also has the greatest proportion of plantation forest in Tasmania2, providing a sound base to support a restructured forestry industry in the north of the state. The Tamar Valley and neighbouring north east wine district is the most mature and most productive wine region in Tasmania, producing 52 per cent of the state‟s wine output3 and supporting a burgeoning tourism industry. Major international companies have operations in the region, including BHP Billiton (TEMCO), Rio Tinto (Bell Bay Aluminium), Lion (Boags Brewery), and Johnson & Johnson (Tasmanian Alkaloids) and the region is arguably the state‟s major manufacturing base.4 A number of innovative Information and Communications Technology (ICT) companies are based in the region and are actively positioning their businesses to take advantage of new NBN capability.
Services
Northern Tasmania offers major regional health and medical facilities and services and is home to important regional higher education and training facilities, including the northern campus of the University of Tasmania and the Australian Maritime College. The region has iconic national and Tasmanian department stores and shops, including a range of modern boutique retail offerings, and a wide range of financial, insurance, accommodation, food and aged care service providers.
1 Northern Tasmania Development, 2011, Northern Tasmania Regional Strategy, Launceston, p6. 2 63 per cent of the plantation forest estate is in the northern region. Tasmanian Planning Commission, State of the Environment Report 2009, http://soer.justice.tas.gov.au/2009/indicator/4/index.php, accessed 29 August 2012 3 Department of Economic Development, Tourism and the Arts, 2012, The Wine Industry in Tasmania – A Guide for Investors, p.6 4 Northern municipalities have 32.1 per cent of the State‟s manufacturing firms, the largest proportion of any region. Australian Innovation Research Centre, 2008, Structure, Business Demographics and Innovation in Tasmanian Manufacturing, p.14
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1.1 Place
This section outlines the physical, commercial, employment and settlement characteristics of the northern Tasmania region and highlights its key infrastructure assets.
1.1.1 The northern region
The northern Tasmania region reaches from Flinders Island at Tasmania‟s far north-eastern tip, south to Ross in the midlands, includes the beaches and waterways of the east and north coasts and the Tamar Valley, the mountains, forests and valleys of the rugged north east, inland to the Great Western Tiers and ends at the fertile agricultural plains of the northern midlands and the Meander Valley.
The notional area of northern Tasmania aligns with the areas of the eight northern Tasmanian councils.
The northern region‟s focal point is the historic regional city of Launceston at the head of the Tamar Valley.
Map 1 - The northern Tasmania region5
The northern Tasmania region lies between latitudes 40 and 42 degrees south, comparable to the location of southern Italy, Spain and Portugal in the northern hemisphere. The entire region is within 80 kilometres of the sea and its climate is classified as temperate maritime, with temperatures stabilised by
5 AK Consultants, 2010, Agricultural Profile – Regional Summary of the Northern Tasmanian Municipalities, report commissioned by Northern Tasmania Development, Launceston, p.12
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the bordering oceans. The temperate climate, reliable rainfall, and long hours of sunlight provide a pleasant living environment as well as ideal growing conditions for pastures and a wide range of crops.6
The region features significant heritage and tourism attractions including the world famous Bay of Fires, the Barnbougle Dunes and Barnbougle Lost Farm golf courses, the Trail of the Tin Dragon, Bridestowe Estate Lavender Farm and the world heritage-listed Brickendon and Woolmers Estates.
The northern region is the second largest demographic region within Tasmania, with a population of 143 5597. The region comprises:
30.2 per cent of Tasmania‟s land mass (20 700km2 ) 28 per cent of Tasmania‟s population 28.9 per cent of Tasmania‟s employment8 26.3 per cent of Tasmania‟s Gross State Product (GSP)9 30.3 per cent of all firms in Tasmania10 81.4 per cent of firms in the region employ fewer than 5 employees (full-time equivalent staff) (FTE)11
Gross State Product ($24.809b - 2011)
$5.350b Southern
$11.787b Northern
North-West $6.534b
Figure 1- Regional share of Gross State Product (GSP)12
Launceston – the regional centre
At the heart of the region, Launceston is its commercial centre, with a population of 67 190.13 The city‟s economy and prosperity are in large part underpinned by its services role that encompasses:
retailing commercial services professional services government and administration legal services and justice health and community services
6 Department of Economic Development, Tourism and the Arts, 2009, Northern Tasmania Region Profile, Launceston, p.14 7 ERP (estimated resident population) 143,559 in 2011. Source: Compelling Economics, REMPLAN, based on ABS data. 8 ABS, Labour Force, Australia, Detailed, Cat No 6291.0 9 $6.534b contribution to GSP in 2011, Compelling Economics op.cit. 10 ibid. 11 ibid. 12 ibid. 13 Launceston City Council Economic Profile, 2012 http://www.economicprofile.com.au/launceston/, accessed 13 June 2012
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entertainment and the arts higher education regional sporting facilities hospitality and tourism transport and distribution.14
The Launceston retail district is the region‟s principal shopping destination and the retail sector is the city‟s second largest employer15 (see Figure 2). The city contains large department stores and a range of national chain specialty stores, together with a number of Launceston-based and Tasmanian stores that serve the city and the wider region.
“Launceston has preserved its traditional Central Business District and a nationally significant collection of heritage buildings, and provides cultural and recreational opportunities disproportionate to its size.”16
Launceston city attracts workers from outside the urban area largely due to the presence of state and regional facilities and institutions such as the University of Tasmania, Launceston General Hospital and other major educational, commercial, financial and business providers.
“There is a widespread understanding that a strong Launceston, with an excellent range of higher order services and facilities, is crucial for the success of the entire region. Without a key regional city, the region‟s capacity to retain and attract population would be significantly compromised.”17
In 2010, the City of Launceston comprised less than half the population of the northern Tasmania region, but it provided:
approximately 64 per cent of regional employment, between 56 - 60 per cent of almost all of other economic measures, for Maintaining the economic and example, value added, regional exports, industrial output, and 18 cultural success approximately 52 per cent of tourism output value. of Launceston is essential to a This not only acknowledges Launceston‟s economic importance, but also the thriving northern contribution to Launceston by people living outside the city‟s boundaries. region.
The Greater Launceston area
Launceston, in common with other regional cities, serves an extensive area beyond the urban centre. Launceston city and its greater urban area are home to the largest urban population centre in the state outside Hobart city and its greater urban area. The Greater Launceston area is one of Australia‟s 18 largest urban areas.19
14 Renaissance Planning Pty Ltd, 2011, Launceston Retail Audit and Activity Centres Strategy, report commissioned for Launceston City Council, Launceston, p.38. 15 Ibid, p.39 16 Northern Tasmania Development, 2009, North Plan: Towards a Regional Planning Strategy, Launceston, p.48 17 Northern Tasmania Development, 2011, Northern Tasmania Regional Strategy, Launceston, pp.26-27. 18 Renaissance Planning Pty Ltd, 2011, op. cit., p.38. 19 Northern Tasmania Development, 2011, Regional Land Use Strategy of Northern Tasmania, Launceston, p.13.
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Map 2 - The Greater Launceston area20
The Greater Launceston area has a population of 106 65521 people. This area encompasses the City of Launceston, together with sections of the municipalities of George Town, Meander Valley, Northern Midlands and West Tamar (see Map 2).
The significance of the Greater Launceston area is that it is the major employment centre for the entire northern region. Figure 2 shows the regional employment dominance of the Greater Launceston area and Launceston City.
20 Renaissance Planning Pty Ltd, 2011, op. cit., p.7. 21 Launceston City Council Economic Profile, 2012, op.cit.
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Figure 2 - Employment by industry: northern Tasmania22 Original data in this chart has been sourced from 2006 Census data and has been modelled to show the spread of employment across the region between Launceston city, the Greater Launceston area and the northern region as a whole. Further analysis of the region‟s employment characteristics can be found in section 1.2.4, Labour Force.
“The greater urban area outside Launceston city and the wider region provides the production and income streams that underwrite the city‟s services economy. Each area supports the other and their interdependence optimises benefits for the region.”23
The broader northern region
This section describes the settlement hierarchy that has evolved across the northern region, from centres bordering the Greater Launceston area to remote rural towns and neighbouring islands. It provides an insight into population disbursement across the region.
Satellite settlements
Satellite settlements lie on the periphery of Greater Launceston, within a 20 km radius, and include the townships of Hadspen, Legana, Perth and Evandale. These satellite settlements contain a mixture of land uses, including residential housing for a significant proportion of the region‟s workforce and some industrial and manufacturing areas.
22 Renaissance Planning Pty Ltd, 2011, op. cit., p.39. 23 ibid, p.43.
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District centres
District centres are settlements further away from Launceston that provide support services for local businesses and the surrounding region and are characterised by highly localised employment. These settlements are typically in a prime agricultural district and include towns such as Scottsdale, Campbell Town, Deloraine, St Helens, and Whitemark.
Rural towns and villages Many regional towns, rural towns and villages in the northern region Rural towns and villages are small residential and service centres that will be empowered by support a local area and, depending on location, passing visitors. Places high-speed broadband such as Bridport, St Marys and Fingal are generally typified by their connections. location beside a river, the coast or along a major historic route.24
The Furneaux Group
The Furneaux Group is a group of 52 islands off the north east of the Tasmanian mainland. Flinders Island is the largest island within the Group, and is also the main residential and commercial centre. Flinders Island is serviced by regular flights from both Tasmania and Victoria and goods for the island group are imported and exported through the Lady Barron port.25
Northern Tasmania’s location
The northern Tasmania region is strategically located in respect to transport routes and convenient access to the rest of the state, and through direct air links to the eastern seaboard of mainland Australia (see Map 3).
Map 3 - Northern Tasmania‟s air links with major population centres
Launceston has direct passenger air links to Australia‟s three major population centres, Melbourne, Sydney and Brisbane. As well, there are nightly interstate air freight services.
24 Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, op.cit., p.44. 25 Pitt & Sherry Pty Ltd, 2011, Flinders Structure Plan – Draft for Community Comment, report prepared for Flinders Island Council, p.4
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In terms of regional transport logistics, Launceston is centrally located, and many northern businesses take advantage of this strategic position. For example, a new $75 million grocery distribution centre adjacent Launceston Airport has rationalised four existing distribution centres across Tasmania into one northern location to service the entire state for the Statewide Independent Wholesalers group.26
In terms of sea access, the location of the Bell Bay port 48 km north of Launceston represents a strategic long-term opportunity to grow northbound freight volumes out of the region and the state, with the port well connected by both rail and road to the rest of the state.
A changing region
Over the last 20 years, northern Tasmania has seen a number of significant changes, including:
in aggregate, the region‟s population has grown steadily, with growth focused on Launceston and its surrounds. However, there has been population stagnation and some decline in smaller, rural communities.27.
Figure 3 shows northern Tasmania‟s population growth from 2001-2011.
Population Tasmania Northern Region
2001 471 795 133 115 472 766 133 660 2002 0.21% 0.41% 477 646 135 243 2003 1.03% 1.18% 482 770 136 774 2004 1.07% 1.13% 486 327 138 043 2005 0.74% 0.93% 489 951 138 702 2006 0.75% 0.48% 493 204 139 418 2007 0.66% 0.52% 497 922 140 386 2008 0.96% 0.69% 503 292 141 434 2009 1.08% 0.75% 507 281 142 211 2010 0.79% 0.55% 511 195 143 559 2011 0.59% 0.48%
Figure 3 - Population growth – Tasmania & northern Tasmania 28 Further analysis of the region’s population characteristics can be found in section 1.2.1, Population distribution and trends.
the basis of the region‟s economy has shifted to a greater emphasis on the services sector (business, financial services, retail, education, health, and tourism) while manufacturing and forestry are declining in relative economic and employment significance, and this has impacted across the region in both economic and social terms Launceston has strengthened its role as a high-end regional service centre in education, health, financial and business services
26 Tasmanian Independent Retailers, http://www.igatas.com.au/, accessed 14 June 2012 27 McCall, T.J., 2012, Northern Regional Profile Analysis, School of Government, University of Tasmania, report commissioned by Northern Tasmania Development, Launceston 28 Compelling Economics, op.cit.
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the region‟s role as a major gateway for air freight and, increasingly, passengers and tourists arriving by air has grown significantly, supported by significant investment in Launceston airport infrastructure29 tourism has shifted to a focus on high value visits based largely on food and wine experiences. Destination tourism has developed a strong focus on the east coast, the Tamar Valley, heritage attractions and the river waterfront in Launceston.30 Tourism operators have realized the value of events to attract visitors to arrive early or stay on after an event, converting their short visit to a longer stay.
29 Australia Pacific Airports Corporation Ltd, 2010 Annual Report 30 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.11
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1.1.2 Regional infrastructure
This section provides an overview of key infrastructure in the northern region and highlights its importance to the region‟s continuing economic growth and prosperity.
Efficient infrastructure is essential for economic development and business growth. The Tasmanian Government has developed the Tasmanian Infrastructure Strategy (TIS) to guide infrastructure planning and development across the state.
The TIS focuses on the major economic infrastructure sectors of transport, water, energy and digital communications. Importantly, the TIS also recognises the essential role land use planning plays in the location and provision of infrastructure.
In keeping with the priorities in the TIS, the Northern Regional Economic Development Plan provides an overview of transport, water, energy, digital infrastructure and industrial land assets in the northern region.
Transport infrastructure
Road
The northern region has 7 500km of public roads (see Map 4) including a number of strategic freight routes that provide inter-regional linkages to the north west and south.
Major intra-regional freight tasks include forestry, construction materials, agricultural freight (predominantly vegetables and milk) and coal from the Fingal Valley. Some time-sensitive food freight, not shipped by air, is exported from the region to the mainland via road transport and the Spirit of Tasmania.
Road freight transport is expected to grow substantially across the region over the next two decades with a greater use of high productivity vehicles.31
The Tasman Highway and the Lilydale-Golconda Road are the major routes into and out of the north east and connect Scottsdale and the Dorset region with Launceston, 60 kilometres to the west. The Esk Main Road is the key route to St Helens and the East Coast.
The Bridport Road, the main north coastal road connecting Bridport to the East Tamar Highway, has been used extensively to transport wood from the forests of the north east to Bell Bay.
The Midland and Bass Highways traverse the southern and western parts of the region respectively, and link Launceston and the north with southern Tasmania and the north west.
The extensive road network within the region links metropolitan and rural areas, and is crucial for supporting forestry operations, agricultural exports and for accessing tourist destinations.
31 Department of Infrastructure, Energy and Resources, Region North and member councils, Northern Tasmanian Integrated Transport Plan 2003 (being updated 2012-13)
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Map 4 - The Northern Tasmania road network32
Rail
In Tasmania, there is an imperative to move freight efficiently and effectively from geographically- dispersed producers to centrally-located processors and on to markets. It is important to note that around 46 per cent of Tasmanian produce is estimated to be exported33 and an efficient rail transport system plays an important role in supporting these movements of produce.
Approximately 409.6 million tonne kilometres of freight was transported by rail in 2007-08 representing 13.5 per cent of the total state-wide freight task. Since 2002-03 there has been a decline of approximately 20 per cent in freight carried by rail. The loss of freight has been primarily associated with loss of general container task and coal, of which each has fallen by one third, and the complete loss of logs and timber transported by rail. 34
Within the northern region, rail infrastructure connects Launceston to Bell Bay, and the main north- south line connects the Bell Bay industrial estate with Hobart via Launceston. There are also links to Burnie and Devonport in the north west, and to Fingal in the east. (see Map 5)
32 Source: Department of Infrastructure, Energy and Resources, Tasmania 33 The current value of Tasmanian exports is estimated to be $11.4b which is 46 per cent of the state‟s Gross Regional Product of $24.8b. This is a modelled estimate of interstate and international exports of goods and services. Source: Compelling Economics, op.cit. 34 Department of Infrastructure, Energy and Resources, 2011, Tasmanian Rail Network – Objectives and Priorities for Action 2010-2011 to 2013-2014.
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Rail freight operations in Tasmania are split into two broad markets: „bulk‟ and „intermodal‟.35 Bulk freight in the northern region consists primarily of coal transported from Fingal to Railton. Intermodal freight consists of containerised goods, mainly paper products, zinc ingots and retail products, most of which are transported on the main north-south line between Hobart and the northern ports.
Rail services to Bell Bay were suspended in January 2010 due to insufficient demand, following two major customers changing their freight arrangements in favour of using the Port of Burnie.36 Services to Bell Bay recommenced in September 2010, however with the loss of the AAA International Shipping service and the Agility Logistics‟ Bass Strait service from Bell Bay, rail services ceased again in 2011. The line remains open and TasRail is working with the Bell Bay Industry Group to assist producers by linking the Bell Bay region with their markets in the absence of direct international and Bass Strait container services.
Map 5 - Northern Tasmania rail network37
35 „Intermodal‟ transport involves the use of more than one mode of transport for a journey. 36 Source: Department of Infrastructure, Energy and Resources, Tasmania 37 Source: TasRail
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Sea
More than 99 per cent of Tasmania‟s export movements are by sea.38 Over the past two decades, the pattern of trade to and from Tasmania has changed and the three northern ports, Burnie, Devonport and Bell Bay, now account for the majority of the state‟s freight imports/exports.
Tasmania‟s major deep-water port is at Bell Bay, which offers uncongested waterways and all-weather access. Other port and harbour facilities in the northern region, at Beauty Point, Bridport, St Helens and Lady Barron on Flinders Island, support local freight, fuel and fishing operations.
The Port of Bell Bay (see Figure 4) is located on the eastern bank of the Tamar River adjacent the Bell Bay heavy industrial estate, 48 kilometres north of Launceston, just outside George Town. The port has direct rail access and is capable of both bulk handling (including minerals, fuels, timber, timber products and food) and container handling (see Map 6).
Figure 4 – Aerial photo of Bell Bay port39
38 Engineers Australia, Tasmania Division, Infrastructure Report Card 2010 – Tasmania, Hobart 39 Source: Tasports
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Map 6 – Bell Bay port facilities40
Bell Bay port processed 91 929 containers in 2008-09.41 However, due to a decision in 2009 by Toll- ANL to transfer container shipping from Bell Bay to Burnie, the Bell Bay container handling service is not currently in operation. Bulk freight handling at Bell Bay is continuing.
Air
Tasmania is more reliant on air transport than other states where land based transport alternatives exist. More than 88 per cent of Tasmanian passenger arrivals and departures are by air, and air transport is crucial for time-sensitive interstate and international freight.42
Northern Tasmania has two Civil Aviation Safety Authority (CASA) certified airports at Launceston and Flinders Island, as well a registered airport with a lower capacity at St Helens.
Launceston Airport is owned and operated by Australia Pacific Airports Corporation, with a 10 per cent share owned by the Launceston City Council. The airport operates under a 50-year lease from the
40 Source: Tasports 41 Engineers Australia, op.cit. 42 Engineers Australia, op.cit.
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Australian Government, with an option for a further 49 years. Launceston Airport has runways suitable for heavy jet aircraft and is curfew-free.43
In 2010, 1.124 million people passed through Launceston Airport, an overall increase of 7 000 passengers or 1 per cent more than 2009 figures.44
In 2009, Australia Pacific Airports Corporation released its Launceston Airport Master Plan. It contains three forecasts for passenger growth (see Figure 5).The Master Plan’s „most likely‟ growth forecast sees a 5.5 per cent per annum increase in passenger numbers with the annual passenger throughput reaching 2.3 million by 2027-28.45
Figure 5 - Launceston Airport annual passenger number forecasts 2008 – 202846
With this forecast growth in mind, in 2009-10 Australia Pacific Airports Corporation undertook a $20 million terminal expansion at Launceston, the largest upgrade since the terminal opened in 1965.47
In addition, recent expansion of the Australian Air Express (AAE) freight terminal at Launceston Airport means that this facility now has the capability to receive and despatch all AAE air freight volumes in and out of Tasmania, enabling Launceston to become a single air freight hub for Tasmania, with a road feeder network into southern and north western Tasmania where needed.48
43 ibid. 44 Australia Pacific Airports Corporation, 2010 Annual Report 45 Engineers Australia, op.cit. 46 Engineers Australia, op.cit. 47 Australia Pacific Airports Corporation, op.cit. 48 Launceston Airport, http://www.launcestonairport.com.au/premier-opens-aae-freight-terminal-at-launceston-airport, accessed 13 June 2012
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Water infrastructure
Tasmania has about 12 per cent of Australia‟s fresh water, although it comprises just one per cent of Australia‟s land mass and has two per cent of its population. Tasmania‟s annual water resource consists of 44 800 gigalitres (GL) from surface runoff and up to 2 500GL from groundwater.49
“The water situation in Tasmania is quite different from most mainland States. Tasmania has abundant water resources and has not suffered widespread water stress to urban water supplies. (However), despite the benign water environment, Tasmania may experience supply shortages as population and industry grows, and if the effects of climate change significantly alter the existing rainfall, runoff and evaporation rates”.50
Urban
Potable water and wastewater services in northern Tasmania are provided by the Tasmanian Water and Sewerage Corporation (Northern Region) Pty Ltd trading as Ben Lomond Water. Since 1 July 2009, Ben Lomond Water has provided water and wastewater services for the residents of the eight northern Tasmanian councils.51
Agricultural
Northern Tasmania has a number of existing irrigation schemes which support a range of cropping and dairy enterprises across several districts:
the 5 000 megalitre (ML) Winnaleah Irrigation Scheme in the north east, which supplies irrigation water from the Cascade Dam through 35 kilometres of pipeline in the Winnaleah district the Cressy-Longford Irrigation scheme, servicing the northern midlands around the townships of Cressy and Longford the 36 000 ML Meander Valley Irrigation Scheme, which is supplied by the Meander Dam. Since completion of the dam, a further four pump and pipeline schemes have been built to expand the reach of the available water and deliver irrigation water to the adjoining farming districts of Caveside-Dairy Plains, Rubicon, Quamby-Osmaston and Hagley.52
In 2010, the Tasmanian Innovation Strategy identified that Tasmania has an excellent opportunity to capitalise on its natural resource advantages and to strengthen its reputation as a producer of reliable, high-quality food and agriculture products, through innovation and leverage of our natural assets.53
Subsequent to the Innovation Strategy, a key focus of the Tasmanian Government‟s Economic Development Plan has been the utilisation of Tasmania‟s most significant natural resource – water. The Tasmanian and Australian Governments committed $220 million to develop a series of new irrigation schemes in partnership with local communities. Seven of the new schemes are in the northern region:
Great Forester (Headquarters Rd Dam) (completed) Whitemore Irrigation Scheme (completed) Winnaleah Irrigation Scheme Augmentation (completed) Lower South Esk Scheme (under construction) Midlands Irrigation Scheme (northern section) (under construction) Upper Ringarooma Irrigation Scheme (under development) Scottsdale Irrigation Scheme (in the planning stage).54
49 Engineers Australia, op.cit. 50 Engineers Australia, op.cit. 51 Ben Lomond Water, http://www.benlomondwater.com.au/view.aspx, accessed 20 June 2012 52 Tasmanian Irrigation, http://www.tasmanianirrigation.com.au/, accessed 20 June 2012 53 Tasmanian Government, 2010, Tasmanian Innovation Strategy 54 Tasmanian Irrigation, op.cit.
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As one example of the possible breadth of new irrigation schemes, potential irrigable areas in the north east are highlighted in Map 7.
Map 7 – Potential dairy conversion areas in the north east 55
Farmers have demonstrated strong interest in taking up water rights from these new irrigation opportunities. Expression of interest surveys returned to Tasmanian Irrigation by landholders in Dorset indicated that 58 per cent of new irrigation water will be used for expanding their dairy enterprises.
The four irrigation schemes within the Dorset region (Great Forester, Winnaleah, Upper Ringarooma, and Scottsdale (formerly Great Forester-Brid)) have a potential combined capacity of 26 680 ML, and with 58 per cent of the water intended for dairying, this equates to more than 15 000 ML that could be utilised for milk production.
In terms of employment growth, the Dorset municipality schemes alone could deliver an additional 92 on-farm jobs in a district suffering from recent closures of major local enterprises. 56
Other opportunities to utilize this irrigation water include cropping and intensive horticulture, such as salad leaf vegetables and soft fruits.
55 Dorset Community Economic Development Group Inc, 2012, Investing in Water, Discussion Paper 56 The employment figure is derived by taking the 15 474 ML of new irrigation water being requested for milk production and applying an industry benchmark of 5 ML per hectare, which equates to 3 094 hectares of new dairy enterprises. Applying a further industry benchmark of 2.8 cows per hectare, this would mean 8 665 additional cows would be required, and at 1 on-farm job per 94 cows, this would equate to 92 new on-farm jobs. Source: ibid. [figures from - DairyTas, 2011, Dairy in Tasmania Regional Profile]
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Energy infrastructure
Tasmania‟s energy needs are currently met by electricity, gas, coal and diesel.
More than 80 per cent of Tasmania‟s grid electricity generation capacity is hydro-electric, the balance being supplied by natural gas (14 per cent) and wind (six per cent).57 Based on 2009 estimates, electricity consumption in Tasmania is forecast to grow by 1.1 per cent annually over the next 10 years.58
The off-grid power supply in the Furneaux group is predominantly diesel generated, with a small, but growing wind generating capacity on Flinders Island. In early 2012, a new 300Kw wind turbine was installed on Flinders, lifting the island‟s renewable energy penetration to over 30%. Planning is underway to lift the island‟s renewables to over 65 per cent with the installation of a large LG Li-ion battery which will result in the diesel generators being taken off-line for at least 12 hours per day as excess wind generated power will then be able to be stored.
Tasmania‟s electricity supply has seen major changes since 2006 when the undersea cable to the mainland, Basslink, was commissioned59. Basslink enables not only the exporting of power when excess capacity is available in Tasmania, but more importantly it also enables Tasmania to import power from the mainland. It provides a very efficient drought-proofing mechanism to support the state‟s hydro system during periods of low rainfall.
In 2009, the gas-fired Tamar Valley Power Station at Bell Bay was commissioned, which provides additional electricity generation capacity within Tasmania.
Important parts of the northern Tasmania region are connected into the Australian natural gas network, with a number of industrial, commercial and domestic customers using natural gas in Launceston, Bell Bay, Longford and Westbury. Tasmania‟s first liquid natural gas (LNG) plant has been established at the Valley Central industrial precinct at Westbury.
Coal mined in the Fingal Valley is another of the northern region‟s energy sources used by a variety of industries across the state. The major consumers of Tasmanian coal are currently the Cement Australia plant at Railton and the Norske Skog newsprint mill at Boyer.
Tasmania produces clean, environmentally-sustainable electricity through the generation of renewable energy, mainly hydro power. It is currently the most significant contributor of renewable energy to the national electricity market, generating sixty per cent of Australia‟s renewable energy supply.60
Tasmania has plentiful untapped renewable energy generating capacity, much of which is in the northern region.
“Tasmania is blessed with renewable energy resources such as abundant and generally consistent rainfall and strong and consistent wind regimes, alongside emerging renewable resources such as wave, tidal and geothermal energy”.61
As Australia transitions to a low carbon economy, the value of Tasmania‟s renewable electricity will rise through time, due to carbon pricing and complementary measures such as the national Renewable Energy Target.62
57 Engineers Australia, op.cit. 58 ibid. 59 Hydro Tasmania, http://www.hydro.com.au/about-us/news/2006-05/basslink-officially-opened, accessed 22 August 2012 60 Hydro Tasmania, http://www.hydro.com.au/about-us/news/2006-12/hydro-tasmania-welcomes-energy-futures-report-urges-action- renewable-energy-op, accessed 20 June 2012 61 Tasmanian Renewable Energy Industry Development Board, 2011, Advice to the Tasmanian Government on a Tasmanian renewable Energy Strategy 62 ibid.
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Digital communication infrastructure
Northern Tasmania has the same advanced telecommunications infrastructure as elsewhere in Australia – a comprehensive telecommunications network that includes 2G and 3G mobile networks, Digital Subscriber Line (DSL) infrastructure, wireless broadband and the National Broadband Network (NBN) is being progressively rolled out across the region.
Telstra, Optus and Vodafone have Global System for Mobile (GSM) Communication phone networks in Tasmania. There is moderate competition in the provision of telecommunications services, such as retailing and provision of data services, based primarily on the use of Telstra's infrastructure.
Telecommunications is important to the region and increasing demand for mobile phone and data usage has highlighted the need for infrastructure improvements. Increasing capacity in digital communication provided by enhanced mobile networks and the NBN is intended to give the region a competitive advantage and will provide opportunities for new business ventures to take full advantage of the digital economy.
Industrial land
Industrial uses of land in the northern region include activities such as heavy manufacturing, light manufacturing, food and beverages processing, local trade services and machinery and transport equipment manufacturing. Non-industrial uses that often use industrial land are transport and warehousing, technology and/or science parks and bulky goods retailing.
Designated industrial areas across northern Tasmania accommodate a broad range of industry sectors including agriculture, aquaculture, fishing, dairy, food and beverage, forestry and timber, advanced manufacturing and minerals processing.
Parts of the northern region are located strategically near the main north-south corridor and in between major agricultural production areas and the ports of Bell Bay and Devonport. Future land demand from transport and warehousing and food processing businesses in these areas may therefore be significant.63
Major industrial land areas already well-established in the northern region include:
the Bell Bay heavy industry zone the Valley Central Industrial Precinct at Westbury the TRANSlink Industrial Business and Commercial Precinct located adjacent Launceston airport small industrial precincts located in regional towns including Scottsdale and St Helens.
One of the most significant industrial precincts in the state, the heavy industrial estate at Bell Bay, occupies 2 500 hectares of land with ample space for new development. The zone currently incorporates metal smelting, alloy production, forest processing facilities and adjoins the site for the proposed pulp mill. The Bell Bay industrial area is responsible for 59 per cent of all Tasmania‟s manufactured exports, 12.5 per cent of the state‟s gross domestic product and 4 000 jobs. It is the single greatest concentration of heavy industrial/manufacturing enterprises in the state.64
The northern region has experienced a moderate uptake of industrial land over the past five years. Most growth has occurred at the TRANSlink precinct near Launceston airport. Demand for industrial land has been generated primarily by general industrial uses (workshops, light industry and local service industries) and transport and warehousing. There has also been some development of bulky goods retailing.
63 SGS Economic and Planning Pty Ltd, 2011, Industrial Land Demand Tasmania, Short, Medium and Long Term Overview (2011-2041), report prepared for the Department of Economic Development, Tourism and the Arts 64 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.19.
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1.2 People
This section provides an overview of population in the northern region, highlights the education and skills profile of the region, and looks briefly at labour force indicators.
1.2.1 Population distribution and trends
The estimated population of northern Tasmania in 2011 was 143 559, with a growth rate of 0.48 per cent from 2010 to 2011.65
Population growth over the past decade has been steady, but it is unevenly distributed across the region. The Greater Launceston urban area has a population approaching 107 000 (75 per cent of the region‟s population), with more than 67 000 people living in the Launceston municipality (46 per cent of the region‟s population).66
The Northern Regional Profile Analysis67 identified 35 settlements in the region with populations over 200 and examined population change between the 1996 and 2006 Census collections. Analysis of the profile concluded that:
Between 1996‐2006 fifteen out of thirty five settlements had population losses and between 2001‐ 2006 eight out of thirty five had population losses. Population loss was most pronounced in Dorset, Flinders, outer Launceston and more isolated parts of the Northern Midlands. By contrast, the settlements on the periphery of Launceston (Meander Valley, Northern Midlands and West Tamar) experienced strong and sustained population growth.
Population decline has a significant impact on rural economies, with an immediate social, economic and community effect. The negative impacts from losses in income, employment and economic output to a regional community as a result of population loss include:
reduced income spent on services and associated service-related jobs, wages, rent and mortgage payments decreases in property values reduced taxes related to those losses forestry-based communities in particular are vulnerable as continued loss of workforce population weakens social and economic sustainability.68
Further population analysis in the Northern Tasmanian Settlement Strategy – Discussion Paper69 indicated:
Break O‟Day municipality experienced population growth over the 2001 – 2006 period, attributed in part to inward migration of „sea changers‟ many young people are leaving rural areas to live in Launceston for education and training the ageing of the population is producing significant challenges in the provision and delivery of facilities and services.
65 Estimated Resident Population (ERP) are official Australian Bureau of Statistics‟ estimates of the Australian population, which link people to a place of usual residence within Australia. Population estimates are updated by adding to the estimated population at the beginning of each period the components of natural increase (births minus deaths, on a usual residence basis) and net overseas migration. Account is also taken of estimated interstate movements involving a change of usual residence. Source: Compelling Economics, op.cit. and Australia Bureau of Statistics, Regional Population Growth, Cat. 3218.0 66 Launceston City Council Economic Profile, op.cit. 67 McCall, T.J., Northern Regional Profile Analysis, op.cit. 68 ibid, p.27 69 Northern Tasmania Development, 2010, Northern Tasmanian Settlement Strategy – Discussion Paper, Launceston
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Population growth potential
The population of the northern Tasmania region is expected to grow and age. The Demographic Change Advisory Council (DCAC) forecasts that the northern region‟s population could potentially increase by 15 per cent (an additional 20 260 people) between 2007 and 2032.70
Break O‟Day and the West Tamar local government areas are likely to experience growth, partly due to coastal retirees, and their proximity to Launceston. Flinders, the Northern Midlands, and Dorset will continue to have low or declining rates of growth (1.35 per cent, 2.2 per cent, and -3.12 per cent respectively).71
The DCAC data is consistent with the current trend of urbanisation worldwide, as people from rural areas continue to migrate to city areas.
In northern Tasmania this trend has been accelerated in communities largely reliant on the forestry sector as that industry undergoes significant restructuring. In addition, proximity to health care, community services and public transport are likely to become increasingly important factors in attracting and maintaining an ageing population across the region.
70 Demographic Change Advisory Council, http://www.dcac.tas.gov.au/, accessed 21 June 2012 71 ibid.
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1.2.2 Age profile of the population
Figure 6 – Age-sex pyramid, northern region, 201172
As can be seen in Figure 6, 50-54 year olds are the predominant age group in northern Tasmania. In trend terms, the profile of the population is ageing, with greater numbers in all age groups over 45-49 years in 2006 compared with 1996 and fewer in all age groups less than 44 years, except 15-19 years which was similar in 2006 and 1996.73 There is also a long term net loss out of the State of the 20-30 years age group.74
Similar to the rest of Australia, the workforce of northern Tasmania will age and the proportion of the population in the workforce is expected to decline. Competition for skilled workers will increase and regional workforce and skills deficits will become more evident. Analysis of trend statistics indicates that the working population in the northern region will peak between 2015‐2017 and then decline to 92 500 between 2027‐29.75
The dependency ratio
The dependency ratio is a measure of the ratio of people who are typically not in the labour force (those under 15 years and over 65 years) to those who are typically in the labour force (those between 15 and 65 years). With a declining working population in northern Tasmania, it is likely that the dependency ratio will increase.
By 2021, the Tasmanian dependency ratio is estimated to increase to 63.2 compared with 56.3 for Australia and there will only be 83.4 people entering the labour market for every hundred who are exiting, compared with 107.9 for Australia.76
72 ABS, Population by Age and Sex, Regions of Australia, 2010, Cat No 3235 73 Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, p.14 74 Demographic Change Advisory Council, 2010, Migration Trends in Tasmania 75 McCall, T.J., Northern Regional Profile Analysis, op.cit., p.25 76 Demographic Change Advisory Council, http://www.dcac.tas.gov.au/, accessed 21 June 2012
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An ageing population also leads to a growing dependency ratio, increased service demand and different housing requirements.
An increasing dependency ratio means there is likely to be a greater financial strain on those in the working population to maintain the upbringing and care of the dependent population.
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1.2.3 Education and skills
Northern Tasmania boasts a large choice of modern well-equipped private and public schools providing for early childhood, primary, and secondary education. Post-secondary and higher education facilities are offered through campuses of the Tasmanian Polytechnic, Tasmanian Skills Institute, University of Tasmania (UTAS) and the Australian Maritime College (AMC).
An educated and skilled workforce is crucial for sustaining and growing the region‟s economy. Education participation and completion rates in Tasmania as a whole and in the northern region are below comparable rates in other states and territories. There is a need to lift the profile and significance of education generally, and higher education and skills training particularly.
A quick snapshot of the qualifications profile of the northern region reveals:
University degree‐based qualifications are concentrated in the urban areas. In 2006, the highest concentration of people with a Bachelor degree was 24‐26 per cent situated in the Greater Launceston area, not including George Town. The highest proportion of employed persons with no stated qualification was concentrated in rural and regional areas. In the north east there is a continuing heavy reliance on semi‐skilled and unskilled persons across all occupations. There is some indication of under-employment of skilled people at both vocational (12‐14 per cent) and tertiary level of qualification (4‐6 per cent). Northern Tasmania was heavily dependent on employees with vocational or „no qualification‟ in skilled categories.77
Figure 7 shows the spread of the educational qualifications in the working population of the northern region.
77 McCall, T.J., 2012, Northern Regional Profile Analysis, op.cit, p.28
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Figure 7 – Workers by educational qualification78
It is clear that after „not applicable‟, the predominant qualification in the region is at Certificate level.
Taking the population as a whole, further analysis indicates that around 72.2 per cent of northern residents aged 15 years did not have qualifications beyond school level (see Figure 8). This is slightly above the share of 71.1 per cent recorded in Tasmania as a whole, and significantly above the national level of 66.9 per cent.
78 Compelling Economics, op.cit. Since the preparation of this document, the ABS has been making new data from the 2011 Census available. This information will be updated as soon as practicable.
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Figure 8 – Percentage of population aged 15 years and over with non-school qualifications 79
Tasmanians are also less likely to complete year 12 or equivalent schooling compared with Australians as a whole, with only 31.3 per cent of Tasmanians and 29.0 per cent of northern residents over 15 years having completed year 12 or equivalent. The national level is 42.2 per cent.80
Low education participation levels impact negatively on the region‟s economy and conversely, education and training investments have the potential to be major drivers of the economy.81
However, opportunities for post-secondary education and training are rare outside Launceston with only a few specialised centres including UTAS Rural Health teaching sites at Campbell Town, St Marys, Scottsdale, George Town and Flinders Island and an AMC campus at Beauty Point.
Further education in the region
University of Tasmania (UTAS)
UTAS has two campuses in the north, at Newnham and Inveresk. The Newnham campus is set on 50 hectares overlooking the Tamar River, ten minutes from the centre of Launceston. Students studying Visual and Performing Arts and Architecture are located at the Inveresk campus.
The University‟s northern campuses, including the Australian Maritime College, are well positioned to support the growth of higher education in the region. Student numbers in the north have grown from 3 332 full-time equivalents in 2001 to well over 5 000 in 2012, with strongest growth in education, nursing, environmental design, maritime, business and arts courses.
To support further growth in enrolments, the University has undertaken significant capital investment in Launceston, particularly at the Inveresk campus. Approximately $44 million has been expended on major capital projects in the north since 2001, including the School of Nursing and Midwifery at Newnham ($9 million), and the Launceston Clinical School development at the Launceston General Hospital (part of the Integrated Care Centre) ($4.5million). Further infrastructure development for student housing (estimated at $30 million+) is currently in the planning stage.
79 ABS, Census of Population and Housing, 2006. Since the preparation of this document, the ABS has been making new data from the 2011 Census available. This information will be updated as soon as practicable. 80 ibid 81 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.29
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The University‟s Green Paper, Proposing Future Strategic Priorities for UTAS 2012-202282, reaffirmed a commitment to campuses located within the south, north and north-west of Tasmania, “supporting regional communities through access to world class education and research”.
Interstate and international students coming to the north also contribute significantly to the local economy. The impact of international student growth and student growth in general can be seen in Launceston. Mowbray is one of Launceston‟s fastest growing suburbs; this is caused in part by the influx of UTAS students and their families living there and in the nearby suburbs of Invermay and Newnham. Economists estimate that for every increase of 100 full time students at UTAS, there is a contribution of $1.6 million to real Gross State Product, $1.9 million to real consumption spending and an additional 26 new full-time Tasmanian jobs.83
Australian Maritime College (AMC)
The AMC, an institute of the University of Tasmania, is based in Launceston, on the Tamar River. The main campus of the AMC is at Newnham, six kilometres from the Launceston city centre. Another campus is at Beauty Point, about 50 kilometres north of Launceston.
AMC students enrol from all over the world to study naval architecture, ocean engineering, marine and offshore systems engineering, maritime business, fisheries and marine resources, marine and coastal conservation, and maritime operations, in courses from certificate to doctoral level.
TasTAFE
A new vocational education entity, TasTAFE, is being created to replace the combined resources of the Tasmanian Skills Institute and the Tasmanian Polytechnic in 2013. The Tasmanian Polytechnic currently offers study options for Tasmanian post-year 10 students through the delivery of more than 300 nationally accredited vocational qualifications. In 2010 more than 14 800 students participated at one of 13 campuses across the State, including six in northern Tasmania. More information on this development is outlined in Goal One, Objective 2, Developing regional skills.
Trade Training Centres
Trade Training Centres provide practical training to equip students with the skills they need to be job ready. These regional skills hubs work in partnership with a cluster of high schools and local industry.
Trade Training Centres offer pre-vocational training for Year 11 and 12 students, with articulation through to higher qualifications in automotive, construction, plumbing, engineering, carpentry, manufacturing, electro-technology & forestry. In some areas, training in aquaculture, horticulture and agriculture will also be offered in the future.
In 2011 the Tasmanian Polytechnic finished construction of the St Helens Trade Training Centre, adding to centres at George Town and Scottsdale in the northern region.
82 University of Tasmania, 2011, Open to Talent – Green Paper, Proposing Future Strategic Priorities for UTAS 2012 - 2022 83 University of Tasmania, 2010, UTAS Northern Tasmania – Building our Community: “UTAS builds growth in north”
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1.2.4 Labour force
Labour force statistics in the year to June 2012 for the northern region indicate:
a total of 68 200 persons employed, which is a decrease of 0.9 per cent from the previous year an unemployment rate of 6.5 per cent, which is an increase of 0.7 percentage points from the previous year a participation rate of 62.3per cent, which is a decrease of 0.4 percentage points from the previous year. 84
Northern region employment
In the year to June 2012, 68 200 people or 29.0 per cent of the state‟s workforce are employed in the northern region.85
There was a decline in Tasmanian employment in the wake of the Global Financial Crisis (GFC). Employment levels in the northern region since then have been erratic (see Figure 9). Employment rates increased in late 2009, after the initial GFC shock, but began to fall away after June 2011.
Figure 9 – Regional employment 2005-201286
Objective 9 in Goal Three has more detailed information on the unemployment rate and the participation rate in the northern region.
84 ABS, Labour Force, Australia, Detailed, Cat No 6291.0.55.001 85 ibid 86 ibid
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1.3 Performance
This section profiles industry structure in northern Tasmania, and looks at the performance of the regional economy, including regional exports.
1.3.1 Industry structure
The top five industry sectors in northern Tasmania in 2010-11 in terms of value added87 are:
1. Manufacturing 2. Rental, hiring and real estate services 3. Financial and insurance services 4. Health care & social assistance 5. Wholesale trade (see Figure 10).
Figure 10 – Value-added by industry88
87 Value added represents the marginal economic value that is added by each industry sector in a defined region. Value added can be calculated by subtracting local expenditure and expenditure on regional imports from the output generated by an industry sector, or alternatively, by adding the wages and salaries paid to local employees, the gross operating surplus and taxes on products and production. Value added by industry sector is the major element in the calculation of Gross Regional Product. 88 Source: Latest REMPLAN data incorporating Australia Bureau of Statistics‟ (ABS) June 2011 Gross State Product, 2007 / 2008 National Input /Output Tables and 2006 Census Place of Work Employment Data
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By employment measure, the five top industry sectors in the northern region are:
1. Health care and social assistance 2. Retail trade 3. Construction 4. Education and training 5. Agriculture, forestry and fishing (see Figure 11).
Figure 11 - Employment by industry, four quarters to May quarter 2012 89 Data in this chart is based on May quarter 2012 year-average original ABS labour force survey data, rather than ABS Census data.
In trend terms, for the period 2003-2007, there was an increase in the northern region in businesses involved in construction, property and business services, accommodation, cafes and restaurants, agriculture, forestry and fishing, education, health and community services, personal and other services. There were small decreases in manufacturing, retail trade, cultural and recreation services, wholesale trade, transport and storage.90
While service industries are growing in importance, particularly in the Greater Launceston area, manufacturing is clearly still a dominant industry sector in northern Tasmania, in terms of both sales turnover and employment.
However, it is important to note that the northern manufacturing sector is extremely heterogeneous, with strong growth in some industries such as advanced engineering and food processing contrasted by a decline in textile manufacturing, automotive parts manufacturing and forestry products processing.
89 ABS, Labour Force, Australia, Detailed Quarterly, Cat No 6291.0.55.003 90 McCall, T.J., 2012, Pulp Mill Effects, School of Government, University of Tasmania, report commissioned for Northern Regional Reference Group, Department of Economic Development, Tourism and the Arts, p.11
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Business size
As Figure 12 illustrates, small businesses with turnover below $50 000 are the largest grouping of enterprises in the northern region. The two year trend from 2009 to 2011 indicates a small decline of 1.9 per cent in this grouping and a similar drop (6.4 per cent) in businesses with a turnover between $50 000 and $100 000.
Figure 12 – Business counts by turnover91
Northern Tasmania had 30.3 per cent of all firms in Tasmania as at 30 June 2011.
By employment numbers, non-employing businesses are the predominant size of business in northern Tasmania, and 81.4 per cent of firms in the region employ fewer than 5 employees (0-4) (see Figure 13).
From June 2010 to June 2011 there was a small decrease in the number of non-employing businesses, but there was growth in all categories of businesses employing staff, with the largest growth in businesses employing greater than 200 staff.
91 Compelling Economics, op.cit. Since the preparation of this document, the ABS has been making new data from the 2011 Census available. This information will be updated as soon as practicable.
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Business Counts North % (Staff) Tasmania Northern Region of State Jun-09 Jun-10 Jun-11 Jun-09 Jun-10 Jun-11 Non employing 22 273 23 291 23 214 6 838 7 206 7 055 30.4% 4.6% -0.3% 5.4% -2.1% 1-4 staff 8 407 8 358 8 488 2 525 2 529 2 555 30.1% -0.6% 1.6% 0.2% 1.0% 5-19 staff 5 369 5 142 5 230 1 630 1 591 1 629 31.1% -4.2% 1.7% -2.4% 2.4% 20-199 staff 1 817 1 844 1 907 493 512 551 28.9% 1.5% 3.4% 3.8% 7.6% 200+ staff 116 87 111 21 6 18 16.2% -25.0% 27.6% -71.4% 200.0% TOTAL 37 982 38 722 38 950 11 507 11 844 11 808 30.3%
Figure 13 – Business counts by staff92
92 Compelling Economics, op.cit. Since the preparation of this document, the ABS has been making new data from the 2011 Census available. This information will be updated as soon as practicable.
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1.3.2 The regional economy
The northern Tasmanian economy reflects the economic profile of the state generally.
As with the state economy, the economy of the northern region is heavily dependent on the value of regional exports. Figure 14 shows the top 25 industry types in the northern region ranked by their export earnings. Negative export figures represent industry sectors where the Greater Launceston area is a net importer of goods and services from Launceston city or from outside the region.
Figure 14 - Northern Tasmania exports by industry93
Figure 14 also highlights the significance of primary production (Agriculture, Forestry & Fishing) as a key export earner and the dominance of mineral processing and metal product manufacturing in bringing external income into the region.
The analysis again highlights the significance of the Greater Launceston area for mineral processing and metal product manufacturing (principally located at Bell Bay) and the importance of agriculture, forestry and fishing exports in the wider region beyond the urban areas.
Whilst it is in the traded sector where investment is needed to grow the region‟s economy, there is a clear shift in the northern region from heavy reliance on resource commodity production and manufacturing to a more diversified economy with an emerging service-based economic platform.
“While investment in traditional economic strengths may continue to be strong, this will not necessarily translate into the levels of employment seen in the past. Future jobs growth will most likely be concentrated in service industries.”94
93 Renaissance Planning Pty Ltd, 2011, op.cit., p.41. 94 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit.., p.21
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To illustrate this point, Figure 15 shows the dominance of Launceston in terms of output value across a range of industry sectors in northern Tasmania and emphasises the growing importance of service industries to the region.
Figure 15 - Northern Tasmania output value by industry95
95 Renaissance Planning Pty Ltd, 2011, op.cit, p.39.
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1.4 Challenges and opportunities
This section highlights the challenges and opportunities facing the northern region.
1.4.1 Northern region’s challenges
There are a number of significant challenges facing the region. Where government intervention is required and appropriate, these issues and challenges are addressed in Part 2 of the Northern Regional Economic Development Plan, the Regional action plan.
Infrastructural
The current condition of road infrastructure is impeding efficient transportation of goods in and out of the north east district.
Bass Strait presents a number of challenges to the northern Tasmanian agriculture industry in terms of retaining a competitive advantage with mainland competitors once freight and logistic costs are taken into account.
While the NBN roll-out will provide broadband infrastructure to all communities across the region, the uptake and utilisation of the technology has been slow to date.
There is uncertainty over provision of funding for the remaining irrigation schemes in the north east. While the Great Forester and the Winnaleah Irrigation Scheme augmentation have been completed, and the business case for the Upper Ringarooma scheme has been accepted by government, there is some doubt whether the proposed Scottsdale scheme will be funded.96
Industrial
With the demise of Gunns Ltd, there is continuing uncertainty surrounding the possible construction of a pulp mill at Bell Bay, and the impact on the region if the project proceeds, or does not proceed. If the project were to proceed, analysis indicates there would be significant stimulus for the northern economy97, but doubt about the project proceeding presents a challenge for future economic, environmental and social planning for the region.
The forestry industry workforce is facing significant decline and readjustment, impacting on a number of rural communities in the region.
Significant private investment is required in agriculture to take advantage of the potential benefits of new irrigation schemes being built in the region.
Environmental
Protecting the region‟s unique biodiversity against potentially damaging economic development activities and imported pests and diseases through any relaxation of biosecurity controls, will be crucial to ensuring the region‟s environmental sustainability.
96 North Eastern Advertiser, Wednesday July 11, 2012, “Money running out for irrigation schemes” 97 McCall, T.J., 2012, Pulp Mill Effects, op.cit.
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Socio-economic
With the ageing of the northern population producing a growing dependency ratio, there will be a need for increased service industries to support the ageing population, and different housing options to meet the needs of the elderly. Providing services to aged persons in more remote locations and scattered towns and communities across the northern region will present on-going challenges.98
Low school retention rates, low education participation rates and a reliance on government payments present a socio-economic challenge to stimulating innovation and economic growth in the region.99
There will be growing competition between regions to attract retirees seeking highly liveable areas with competitively-priced housing and quality facilities and services, which will present challenges to districts keen to attract sea and tree changers, such as the east coast and northern coastal hinterland.
Expansion of higher education facilities and services and increased workforce training will be required to better integrate the region‟s workforce, economy and lifestyle and to address future workforce and skills needs.100
Servicing more remote parts of the region presents many challenges. Population growth and economic activity is currently centred on the Greater Launceston area, and many of the region‟s more remote towns and communities are experiencing social and economic decline. There is a need to spread the benefits of economic growth more equitably across the entire region.
Withstanding future economic shocks is a long-term challenge for the region. Continuing to diversify the northern economy and to broaden its service industries base will be important to build the resilience to enable the economy and the population to weather unpredictable events.
98 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.25. 99 McCall, T.J., Northern Regional Profile Analysis, op.cit., p.30 100 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.24
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1.4.2 Northern region’s opportunities
Despite the challenges, the northern region has considerable untapped potential and opportunities for significant economic development across a number of key trade and investment sectors. Five of the highest profile sectors in the region with development potential are:
Advanced manufacturing Food and agriculture Forestry and related products Mining and mineral processing, and Tourism.
Advanced manufacturing
Northern Tasmania offers an experienced and highly-skilled engineering industry base. Part of the industry‟s future may lie in extending its technical capability globally, with a highly mobile workforce fully trained and ready to take advantage of opportunities in other regions, states and countries.
World class ship and port simulators are designed and manufactured in northern Tasmania. Additionally, the Australian Maritime College, located in Launceston, offers worldwide curriculum in maritime and engineering study and has attracted opportunities in defence and related fields.
Given the proximity to Bass Strait, the sale of services and products into the offshore oil and gas sector provides an opportunity to northern Tasmanian companies with expertise in those fields. In addition, opportunities are being explored through the Australian Maritime College to offer training to those working in the oil and gas sector.
Food and agriculture
Several areas of the northern region have significant opportunities to increase agricultural production and to value-add local produce. In particular, new irrigation schemes in the region will result in greater production, further diversification of product and will increase employment on-farm and in support services.101
Opportunities for diversification and value-adding in the region include: o growing high-value commodity crops, for example: poppies, pyrethrum, fennel and parsley, GM- free canola, soft fruits, speciality vegetables (for example kabocha pumpkin), and prime lambs o value-adding to new crops, such as: . lucerne production and pelletisation . industrial hemp production and processing . essential oil production . ethanol from sugar beet. o aiming for a marketing point of difference to target a specific high-value market, such as quality assurance endorsement, provenance branding, eco-labelling or organic certification o embracing best practice techniques that give the product a competitive edge.102
The wine and dairy sectors in particular have been identified as offering enormous potential in the northern region for industry expansion, given appropriate levels of investment in farming and processing and the development of new market opportunities.103 Viticulture and wine making are already well established in the Tamar Valley and the Pipers Brook area, and Dorset is a major dairying area. Wine and food tourism have strong growth potential in the region through wine route and food trail/farm gate initiatives.
101 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.26 102 Northern Tasmanian Regional Development Board, 2002, Profiles of Northern Tasmania’s Core Industry Sectors, Launceston 103 Tasmanian Government, 2010, Tasmanian Innovation Strategy, p.10
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Opportunities will arise to diversify the agricultural base for the local production of small-volume, high-value crops in the region, together with local manufacture of ingredients, through the establishment and development of a new Centre for Food Innovation, a joint venture project between the University of Tasmania, CSIRO and the Defence Science and Technology Organisation (DSTO).104
Forestry and related products
The northern region will be well placed to develop its forestry resource in a restructured, plantation-based timber industry, as the region has more than 60 per cent of the state‟s plantation estate, with 12 per cent in the Dorset municipality alone.105
Changes within the timber industry may present new opportunities for the production of high end, value‐added wood products in the northern region such as laminated timbers for structural, fit-out and furnishing uses and structural insulated panels (SIPs), primarily for residential construction.106
Mining and mineral processing
Proto Resources and Investments Ltd have completed detailed drilling for nickel laterite deposits at Barnes Hill in the Tamar Valley. Subject to a successful feasibility outcome, Barnes Hill is slated to commence mining in early 2013 with a potential 26-year mine life at 250 000 tonnes per annum107.
HRCM, through its 100 per cent subsidiary HardRock Investments Pty Ltd, holds two exploration licenses covering approximately 278 sq. kilometres of crown land in the Fingal Valley. HRCM is progressing a mining project that currently involves the development of a multi-million dollar underground coal mine with an estimated production of up to 1 million tonnes per annum.108
Tourism
Tourism development in the northern region has significant potential across a number of fronts. The recently established, industry-led Northern Tasmania Regional Tourism Organisation and East Coast Regional Tourism Organisation will enable a strategic approach to tourism management of the region going forward.
Tourism visitation to Tasmania through Launceston airport needs to grow to support tourism growth across the region. There is an opportunity to leverage the confidence shown by Virgin, Jetstar and Qantas Link airlines in northern Tasmania as a tourist destination.
There is capacity for further development and marketing of cycling and mountain bike experiences, particularly in the Meander Valley, Dorset and Flinders Island where local government have invested in development of cycling infrastructure. Northern Tasmania Development is currently developing a mountain bike tourism proposal to position northern Tasmania as a world-class mountain bike destination.109
Tasmania‟s northeast coast has substantial potential for the development of new high quality resorts. The success of the Barnbougle Dunes and Barnbougle Lost Farm golf links developments near Bridport have raised the potential for further stand-alone resort tourism across the coastal strip and its hinterland.
104 Part-funded by the Australian Government through The Tasmanian Forests Intergovernmental Agreement (TFA) 105 63 per cent of the plantation forest estate is in the northern region. Source: Tasmanian Planning Commission, State of the Environment Report 2009, http://soer.justice.tas.gov.au/2009/indicator/4/index.php, accessed 29 August 2012 106 Creating Preferred Futures, 2012, A New Future for Tasmanian Timber Products, report prepared for the Tasmanian Sawmillers Association. A Tasmanian Regional Sawmills Scoping Study is being funded by the Australian Government through The Tasmanian Forests Intergovernmental Agreement (TFA) 107 Tasmanian Minerals Council, Tasmanian Minerals Conference 2011, Conference Program 108 HardRock Coal Mining (HRCM), http://www.hardrockcoal.com/, accessed 3 September 2012 109 Six Dot Consulting (2011) Mountain Bike Tourism Potential in Northern Tasmania, Northern Tasmania Development, Launceston
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There is potential to further promote a number of key tourism attractions in the region, including its colonial and mining past, Flinders Island and the diversity of the Tamar Valley, especially its food and wine attractions.110
Digital economy
There are also growth opportunities across all sectors through applications of the NBN via the digital economy.
Various forms of information and communication technologies are expected to benefit directly from the NBN development.
The scheduled roll out of the network will provide Tasmania with full connectivity five years before any other state. This will provide Tasmania with a significant competitive advantage in developing commercial uses of the technology, particularly for businesses and communities at a regional level.
It is expected that over the coming decades, connectivity via a national network will have a profound effect on human activity and where this takes place.
110 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.22.
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Part 2 – Regional action plan
2.1 Vision
2.2 Goals, objectives and actions
Goal One To support and grow businesses in the northern region
Goal Two To maximise economic potential in key sectors in the northern region
Goal Three To improve the social and environmental sustainability of the economy in the northern region
Goal Four To support and grow communities in the northern region
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2.1 Vision111
Economic development in the northern region will enable inclusive and resilient communities to thrive, grow and prosper as we build a vibrant region of diverse industries, based on our natural resources and unique opportunities.
111 This Vision for the region was developed by members of the Northern Regional Reference Group, based on input from the community conversations held in early 2012 in the region. As well, members took into account other relevant visions that had been adopted by stakeholder organisations.
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2.2 Goals, objectives and actions
The Regional action plan sets out a series of objectives and associated actions that focus on achieving four Goals, which are designed to stimulate regional economic growth, enhance prosperity and improve the quality of life for the region‟s citizens.
The following Goals and objectives follow the model of the Tasmanian Economic Development Plan and reflect priorities and needs in the northern region, specifically.
Goal One To support and grow businesses in the northern region Objective 1 Develop regional infrastructure Objective 2 Develop regional skills Objective 3 Improve the business enabling environment Objective 4 Enable access to finance Objective 5 Deliver business development services
Goal Two To maximise economic potential in key sectors in the northern region Objective 6 Enable industry development in priority sectors Objective 7 Attract and facilitate investment
Goal Three To improve the social and environmental sustainability of the economy in the northern region Objective 8 Improve social sustainability Objective 9 Improve environmental sustainability
Goal Four To support and grow communities in the northern region Objective 10 Develop a planning environment that supports and grows communities Objective 11 Create a liveability advantage Objective 12 Develop communities through regional investment
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Goal One To support and grow businesses in the northern region
Entrepreneurs and business-owners are the cornerstones of the regional economy. Whether they export oysters or potatoes, run a bed and breakfast, or own a manufacturing facility, business people represent the greatest asset the region has for building and diversifying the economy.
The Northern Regional Economic Development Plan (the Plan) seeks to maximise the contribution to economic growth and jobs through the growth of sustainable businesses in Northern Tasmania. Under Goal One the focus is on supporting new and existing businesses across the region‟s economy. The objectives listed in this goal are supplemented by specific sectoral strategies detailed in Goal Two.
By 2021: A sound basis exists for businesses to grow, for new ones to be formed, for traditional sectors to be strengthened and for new sectors to emerge. Local businesses have the infrastructure in place, the training they require, and the access to finance needed to innovate and grow their enterprise. Dealing with government regulations and compliance is a streamlined, supported and uncomplicated process. The spirit of entrepreneurialism thrives and is the primary source of new employment opportunities in the northern region.
The success of the Plan in achieving this vision will hinge on its capacity to help existing businesses grow, stimulate the emergence of start-up companies, and nurture the development of new sectors of opportunity.
Industry sectors such as retail, building and construction, and hospitality are large employers and contribute much to the strength and vibrancy of the regional and state economies. This Plan supports sectors such as these through fostering a business environment that enables enterprises to flourish and thrive. The government will assist in the creation of an environment where entrepreneurship will be encouraged and supported in industry and within the education system, in the expectation of providing a significant source of new employment opportunities in the region.
Industry has identified a range of opportunities to grow business in the region, working collaboratively with government. The Economic Development Plan112 identifies several key priorities for business to support this growth: improved infrastructure access to skilled staff capable of high quality work113 improved communications across business, community and government a business-enabling environment, and access to finance and capital.
Many of these requirements are well established in the northern region, but there is more work to be done.
Objectives
The following objectives indicate the levers that government can influence to support and grow businesses in the northern region: Objective 1 Develop regional infrastructure Objective 2 Develop regional skills Objective 3 Improve the business enabling environment Objective 4 Enable access to finance Objective 5 Deliver business development services
112 http://www.development.tas.gov.au/economic/economic_development_plan/Printable_documents 113 Tasmanian Chamber of Commerce and Industry, Tasmanian Survey of Business Expectations, http://www.tcci.com.au/tcci/index.php?c=58
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Objective 1 Develop regional infrastructure
Transport infrastructure
In northern Tasmania, key transport infrastructure elements are well-established but some are in need of improvement and repair. In many cases, these assets are undergoing significant upgrades or they are planned for the future. This includes the integration of road, rail, ports and intermodal transfer between road/rail or ports/road/rail.114
Road
The current configuration and variable condition of a number of key roads linking different parts of the region are impacting on tourism travel, the transport of agricultural and forestry product, and the provision of efficient access for residents to key services and facilities, particularly for people in outlying areas who utilise services in Launceston.115 Many regional roads are narrow and winding, restricting the use of large vehicles and B-doubles and making overtaking an issue for road users.
Key road infrastructure improvement priorities that have previously been identified by local government in the northern region include: improving the road links between Launceston and Scottsdale and beyond to tourism opportunities on the north east coast improving access to the Bell Bay port establishing a heavy vehicle bypass for the Launceston urban area.116
These priorities will be reviewed as part of the Northern Integrated Transport Plan. Road infrastructure improvements and the resultant ability to utilise higher productivity vehicles for the Scottsdale to Launceston freight route, for example, would improve the economic efficiency of transporting product from the region, anecdotally indicated to be costing producers $5 to $6 per tonne additional freight cost through restricted use of larger vehicles.117
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop road infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.1 Undertake the North East Freight Roads Project
A $42.5 million upgrade of north east freight routes under the Tasmanian Infrastructure Strategy is being undertaken to address future projected freight volume increases, largely made up of agricultural products freight. The Australian Government has committed $34 million and the Tasmanian Government $8.5 million to the project. This project will go some way to addressing the issues identified with the road linkages between Launceston and Scottsdale and further into the north east.
Action 1.2 Update the Northern Integrated Transport Plan
The Department of Infrastructure, Energy and Resources (DIER) and Northern Tasmania Development (NTD) are jointly preparing a new Northern Integrated Transport Plan, following a review of the previous plan and taking into account current issues, challenges and opportunities for the northern region‟s transport system. It is anticipated that priorities
114 Department of Infrastructure, Energy and Resources, 2011, Tasmanian Rail Network – Objectives and Priorities for Action 2010-2011 to 2013-2014. 115 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.19. 116 ibid, p.19. 117 North East Working Group, 2011, Priority Initiatives Paper
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identified within the plan will influence and support funding requests at all levels of government.
Action 1.3 Prepare the Greater Launceston Metropolitan Passenger Transport Plan
DIER is preparing a Greater Launceston Metropolitan Passenger Transport Plan to guide future passenger transport development and investment in the Greater Launceston area. DIER is working closely with Launceston metropolitan councils and passenger transport service providers throughout the development of this metropolitan transport plan.
Action 1.4 Undertake the Launceston Traffic Review
Launceston City Council and DIER have been working together on the Launceston Traffic Review, part of which is focussed on addressing traffic issues in Launceston. Further modelling will be conducted to develop a range of possible options to the problems identified in the Review.
Action 1.5 Undertake road improvements at Bell Bay
Safety upgrades to the Bell Bay main road junction costing $1 million are due to commence in the 2012-13 financial year under the State Government‟s Community Roads Project.
Rail
An important rail connection in the northern region has been the link between Bell Bay port and the rest of the state as detailed in section 1.1.2; however with the loss of the AAA International Shipping service, and the Bass Strait service provided by Agility Logistics, rail services to Bell Bay were suspended indefinitely in 2011.
TasRail is currently working with TasPorts to improve the road-rail-port interface at Bell Bay. This project is targeted at improving transport interfaces between producers, direct road connections, port facilities and rail to enable a far more responsive approach to changing international shipping arrangements at Bell Bay.118
While the rail link to Bell Bay wharf will remain, this will be augmented by a multi-purpose freight loading terminal at George Town. The George Town terminal will be designed to undertake the loading and unloading of both container and forestry products. This facility will provide an improved link for Bell Bay‟s heavy industrial producers with their markets in the absence of a direct international container shipping service to Bell Bay. This project is funded by a combination of Australian and Tasmanian Government contributions.
Prior to the Tasmanian Government buying back the Tasmanian rail network on January 1 2007, there was a lack of investment in the rail track infrastructure over a sustained period of time. The lack of investment in track infrastructure led to deterioration of the condition of the asset, with safety and reliability decreasing, and consequently a reduction in rail‟s market share.
Significant investment in rail track infrastructure by the Tasmanian and Australian Governments, which commenced in 2007 with the Rail Rescue Package,119 is now delivering an initial improvement in safety and reliability outcomes.
TasRail are investing in new rolling stock. This includes a contract of more than $60 million with Progress Rail Services (USA) for the supply of new locomotives. The new locomotives will replace the current loco fleet. Under this contract, TasRail will purchase a total of 17 new locos, with delivery commencing in mid-2013. The new locos will provide TasRail with additional capacity, improved reliability, and will deliver substantial savings in fuel and maintenance costs. TasRail is also replacing life-expired wagons with new wagons.
118 Department of Infrastructure, Energy and Resources 119 http://www.tasrail.com.au/index.php?option=com_content&view=article&id=76&Itemid=101
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The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop rail infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.6 Implement planned rail network improvements across the region
The Australian Government has committed $205.3 million to improve Tasmania‟s rail network. Specific projects in the northern region include: upgrade of the Burnie to Western Junction line $30.3 million main north-south line rail capacity improvements $31.6 million upgrade of the Fingal line $ 5.7 million.
The Tasmanian Government has committed $130 million for above rail capital renewal (locomotives and wagons), train control system and track maintenance equipment.
Action 1.7 Undertake improvements around the Bell Bay industrial area to facilitate efficient freight movement
A $9.2 million (approximately) intermodal expansion is planned to improve hardstand areas at George Town rail yards and upgrade freight road access to the rail yards to improve efficiency and rail access. This project is a joint scheme between the Tasmanian and Australian Governments and is awaiting Australian Government approval to proceed. The project will assist in facilitating an efficient movement of freight from the Bell Bay area to the ports of Burnie and Devonport.
Sea
The redevelopment of Bell Bay port was identified by Infrastructure Australia120 as a National Infrastructure Priority in 2009. The $150 million Bell Bay Integrated Gateway Project would see the reclamation of 8.3 hectares of land to enable the development of an efficient container terminal at the port with sufficient backup land to enable storage and management of containers. The current status of the port redevelopment is as a project of „Real Potential‟,121 however the Tasmanian Infrastructure Advisory Council believes it is unlikely the project will receive funding in the short to medium term.
Freight is an essential element of Tasmanian economic activity. Tasmania‟s island status causes it to rely heavily on sea freight and the port system. Freight costs have been impacted in recent times by a variety of factors including the high Australian dollar, new interstate port fees and changes in international shipping, including a move to larger vessels and high-volume „hub and spoke‟ international shipping arrangements. These factors have caused unavoidable cost rises for Tasmania. The Tasmanian Government has prioritised the transport and logistics system as an area of ongoing focus and has argued successfully for the retention of the Tasmanian Freight Equalisation Scheme (TFES) and other freight support programs that assist Tasmanian businesses to combat freight costs wherever possible.
The issue of freight cost also reinforces the need for Tasmanian enterprises to produce and sell at prices that reflect the value of the Tasmanian niche brand. To recover freight within these prices, businesses need to work closely with freight forwarders to minimise freight costs and to maximise their entitlement from the TFES.
120 Engineers Australia, op.cit. 121 Tasmanian Infrastructure Advisory Council, Annual Report 2011 - 2012
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The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop port infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.8 Promote the benefits of the Bell Bay precinct
George Town Council, the George Town Chamber of Commerce and a group of industries in the Bell Bay industrial area have formed the Bell Bay Industry Group which aims to promote the benefits of the Bell Bay precinct to government, industry and the community.
Action 1.9 Upgrade the sea freight link between Bridport and Flinders Island
The Flinders Island community is entirely dependent on this sea link and the facilities at both ports require substantial upgrading.122 Development at Lady Barron Port, valued at $1.6 million, is due to start in late 2012 with work focusing on: increasing the operational capacity and efficiency of port operations, and improving the level of safety for users of the port and the adjoining facilities for segregating the public usage areas from the port operations.123
Water infrastructure - agricultural
A number of new irrigation schemes are under construction or in the planning stage in the northern region. The Lower South Esk Irrigation Scheme, currently under construction, is designed for storage off-river and later delivery downstream during the growing season. The scheme will supply nearly 5 300 megalitres (ML) annually over spring/summer to a region stretching from south of Conara to Longford. All available irrigation water has been sold with the scheme scheduled to provide water to the irrigators in the 2013-14 irrigation season.
The large Midlands Water Scheme (38 500 ML) has been designed around extraction of water from Arthurs Lake and delivery to the Midlands region via a series of pipelines and pumps. In the northern part of the scheme, farmland around Campbell Town and Ross will benefit from new irrigation water through this scheme. Construction of the $104 million scheme commenced in September 2012 and is scheduled for completion in time for the 2014 irrigation season.
A further two irrigation schemes are under development by Tasmanian Irrigation in the north east: Upper Ringarooma Irrigation Scheme Scottsdale Irrigation Scheme.
The business case for the 5 700ML Upper Ringarooma Irrigation Scheme was approved by the Government in September 2012 and the water entitlement sales process commenced in October 2012.
A survey for potential water use for the Scottsdale Irrigation Scheme resulted in expressions of interest totalling approximately 12 000 ML. The Scottsdale scheme is in the process of development of a preferred option.
The capital cost of these new irrigation schemes is shared between the community and the private sector. Private capital contributions are made through the purchase of tradeable water entitlements to a particular scheme by the beneficiaries of that scheme. Operating costs are met by an annual charge on water entitlement holders.124
Farmers have indicated that funding the private contribution required to build these irrigation schemes without end-users being placed in considerable long term up-front debt is an emerging issue. For example, the four schemes being developed in the north east catchments area in the Dorset municipality have a combined
122 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit., p.19. 123 Department of Infrastructure, Energy and Resources, Tasmania 124 http://www.tasmanianirrigation.com.au/index.php/
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As a general rule of thumb, landholders already involved in irrigation would need to invest an additional dollar for each dollar spent on water; however for those converting from dry land into irrigated farming, this figure may be as much as three dollars for each dollar spent on water. It is therefore conceivable that, for the north east district alone, to fully benefit from the irrigation schemes that are currently being developed, the district‟s landholders will need to invest between $62 and $93 million.125
At the local district level, farmers are being assisted with access to finance and through investigations into new crop and growing opportunities that could be developed once new irrigation water becomes available.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop water infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.10 Construct new irrigation schemes
Tasmanian Irrigation Pty Ltd (Tasmanian Irrigation) is building/planning the following irrigation schemes in the northern region: Lower South Esk Scheme (under construction) Midlands Irrigation Scheme (northern section) (under construction) Upper Ringarooma Irrigation Scheme (under development) Scottsdale Irrigation Scheme (in the planning stage).126
Action 1.11 Work with financial lending institutions to facilitate finance for water sale contracts
In partnership with Dorset Council, the Dorset Community Economic Development Group Inc (Dorset EDG) has been working with financial lending institutions to make them more aware of the opportunities and challenges confronting landholders who are seeking finance to secure water sale contracts which will become available via the new irrigation schemes.
Action 1.12 Assist farmers and food processors to explore value-adding opportunities through a Dorset Agricultural Study
In collaboration with Regional Development Australia (Tasmania), DEDTA and Dorset Council are jointly funding a study to identify and map the region‟s agricultural production and processing sectors and to identify opportunities to adopt a more rapid transition to higher end value agricultural production and processing outcomes.
Dorset EDG has also been assisting local farmers and food processors to explore a number of potential value-adding business opportunities that could leverage off new water surety provided through new irrigation schemes, including: lucerne production and pelletisation; industrial hemp production; essential oil production and ethanol from sugar beet.
Action 1.13 Establish a new Irrigation Development Unit within Tasmanian Irrigation
The Irrigation Development Unit will build on the outcomes from the Wealth from Water pilot program which will cease in December 2012. The unit will assist investors, including farmers, to identify new enterprise opportunities and provide them with confidence to invest in water entitlements and new irrigation infrastructure. The unit significantly increases Tasmanian Irrigation‟s capacity to engage with private sector investors during the development phase of new irrigation schemes.
125 Dorset Community Economic Development Group Inc, 2012, Investing in Water, Discussion Paper 126 Tasmanian Irrigation, op.cit.
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Energy infrastructure
With 80 per cent of the energy production and consumption in Tasmania dominated by electricity, most of the infrastructure improvements are occurring in the electricity sector.
Tasmania‟s electricity market is serviced by three state owned business enterprises: Hydro Tasmania - generates electricity Transend Networks - manages high voltage transmission Aurora Energy - provides low voltage distribution to end users.
Each of these enterprises is undertaking significant capital works and infrastructure upgrades across the northern region. In addition, a number of renewable energy projects are underway in the north, the most significant being the Musselroe Wind Farm at Cape Portland in the region‟s far north east.
Tasmania‟s competitive advantage in renewable energy could be extended beyond the generation and export of electricity, to developing and transferring knowledge through a growing cluster of manufacturing, research and service industries associated with renewable technologies. Several northern Tasmania businesses are engaged in the construction of the Musselroe Wind Farm and this advantage creates an opportunity for northern Tasmania to establish itself as a centre of excellence for innovation in renewable energy.127
There is also significant potential in the northern region to establish small-scale embedded wind generation, tidal power generation and mini-hydro capacity. The Winnaleah Irrigation Scheme, for example, currently generates 1 150 kilowatts (kW) of electricity through a mini-hydro turbine.
Flinders Island possesses world-class wind and tidal resources that could also be used for energy production. There is the potential for Flinders Island to meet 100 per cent of its electricity needs from renewable, zero carbon sources.128
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop energy infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.14 Complete construction and commissioning of the Musselroe Wind Farm
Hydro Tasmania is constructing a $400 million wind farm at Cape Portland. The Musselroe Wind Farm site is 100 kilometres north east of Launceston and 20 kilometres north of Gladstone. When completed in 2013, the Wind Farm will have 56 wind turbines with a generating capacity of 168 Megawatts (MW) which will meet the electricity needs of up to 50 000 homes, equivalent to the residential power needs of the people of Burnie and Devonport. It will reduce greenhouse gas emissions by around 450 000 tonnes each year.129
Action 1.15 Upgrade transmission infrastructure
Transend is undertaking a number of transmission infrastructure upgrades in the northern region, including: $18.75 million George Town substation 220kV augmentation $21.04 million Norwood-Mowbray 110kV transmission circuit upgrade $16.14 million St Leonards substation 110/22kV connection point installation.
127 Northern Tasmania Development, 2009, North Plan: Towards a Regional Planning Strategy, Launceston 128 Pitt & Sherry Pty Ltd, 2012, Flinders Island Sustainability Plan: Renewable Energy Plan 129 Hydro Tasmania, http://www.hydro.com.au/energy/musselroe-wind-farm, accessed 21 June 2012
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Action 1.16 Develop Smart Networks
Aurora is moving towards Smart Networks which allow switching between networks to minimise issues associated with reliability and peak energy use times.
Action 1.17 Upgrade electricity substations
Aurora is undertaking a $35 million upgrade of terminal substations in the Greater Launceston area aimed at increasing electricity supply and reliability.
Action 1.18 Investigate a north-east community wind farm project
Dorset EDG is facilitating community discussion on the establishment of a community-owned wind farm within the north east district. This project is modelled on the Hepburn Wind community-owned wind farm at Hepburn Springs, 100 kilometres north west of Melbourne. The working group of which Dorset EDG is a key participant has identified a range of suitable high wind areas along both the north eastern coastal strip as well as in the higher elevation inland mountain ranges.130
Action 1.19 Investigate a mini-hydro plant for the Scottsdale irrigation scheme
Feasibility scoping is underway through Dorset EDG to determine if a mini-hydro system could be built on the proposed Scottsdale (formerly the Great Forester/Brid) irrigation scheme.131
Digital communication infrastructure
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop digital communication infrastructure in the northern region. These actions are already planned, committed and funded.
Action 1.20 Continue the NBN infrastructure roll-out across the region
The major digital infrastructure project over the next few years is the National Broadband Network (NBN) rollout. In early 2012, NBN Co finalised agreements for the construction of the NBN in Tasmania. Networking service provider, Visionstream Australia, is undertaking construction of the remainder of the fibre network connecting the remaining 190 000 premises in Tasmania by 2015, as well as the implementation of some 50 000 fixed wireless connections. Satellite connections will also be fully available in 2015. This means that Tasmania will have 100 per cent of the state connected to the NBN five years before any other state.132
Action 1.21 Build the SenseT133 sensor network
The SenseT sensor network is a joint initiative involving the Australian Government, Tasmanian Government, CSIRO and the University of Tasmania.
SenseT will bring together different sensors into a single, state-wide network that combines historical, spatial and real-time data and exploits the capabilities of the NBN to drive innovative and sustainable social, environmental and economic change.
In the case of primary industry, SenseT has the potential to revolutionise agriculture and aquaculture and boost productivity across the Tasmanian economy. The program will enable
130 Dorset Community Economic Development Group Inc, 2011 131 ibid. 132 Government News, http://www.governmentnews.com.au/2012/03/26/article/Tasmanias-NBN-roll-out-secured/XAVJEKOYGE, 26 March 2012, accessed 25 June 2012. 133 Part funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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farmers to monitor the microclimate on their own property, and to precisely control irrigation and other crop management accordingly.
A number of specific SenseT projects will be undertaken in the northern region:
Agricultural optimisation – a microclimate, water and soil sensor network will support enterprises to utilise the region‟s investment in irrigation, adapt to climate change and monitor environmental impacts.
Aquaculture optimisation – SenseT will deploy sensors to augment weather and river observations. The higher resolution awareness of weather and river flow will vastly improve measurement and control of water quality crucial to production.
Fruit and Viticulture optimisation – involving localised weather observations and decision support tools to minimise weather related risk such as frost and support disease management.
Flood and catchment management – SenseT will build upon the CSIRO South Esk Catchment Hydrological Sensor Web project to improve coverage of the 40+ sub- catchments of the South Esk River leading to improved real-time flow forecasts, and investigate extending this capability into the Ringarooma catchment.
The suggested actions listed below to develop infrastructure in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Undertake upgrades of priority roads in the region
Undertake a feasibility study into the viability of establishing a milk condenser facility in the north east
Undertake student housing and other campus developments at UTAS to support growth in student numbers
Facilitate the potential redevelopment of the former Simplot site at Scottsdale
Identify tourism infrastructure needs, including signage for specific sites
Investigate future irrigation opportunities
Undertake the Scottsdale irrigation scheme, as part of the second tranche of planned irrigation projects
Consult with key stakeholders and NRM North to see how best to improve the health of the Tamar Estuary, balanced with improving the commercial and recreational uses of the full length of the Tamar River.
Upgrade road access to the north east. Break O‟Day Council will be seeking a commitment of government funding to improve road access to the district as a project of regional significance. The proposed project is supported by NTD in their Northern Tasmania Regional Transport Funding Priorities Report, 2012.
Investigate the feasibility of sealing the access road to the Musselroe Wind Farm to enable the development of a power generation interpretation centre as a tourist attraction for the region.
Facilitate development of renewable energy generation infrastructure on Flinders Island as a driver for economic development. Economic growth opportunities could include: olive orchards, abattoir expansion, garlic crops, soap production, and wallaby harvesting.
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Objective 2 Develop regional skills
The Tasmanian Government invests more than $100 million each year in vocational education and training. This investment is guided by the Tasmanian Skills Strategy to ensure that opportunities for Tasmanians to access education and training are increased within a system that meets their needs; and that employers have skills to support workforce development and business growth at all levels. The state‟s investment in the public training organisations and its purchasing arrangements with both public and private training organisations, underpin the development of the future workforce.
The Tasmanian Skills Strategy is currently being revitalised and will be re-released in 2013 as Skills for Work – Tasmania’s new skills plan. The new plan will detail the gradual introduction of changes to the way people will have their training paid for and the way the training system operates, so it works better for everyone.
The University of Tasmania (UTAS) is crucial to economic development in the northern region. There is a clear correlation between the levels of university education and per capita GDP. The Tasmanian Government and UTAS already have a very effective partnership approach that is delivering significant benefits to both parties and the Tasmanian community.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop regional skills through formal education and training in the northern region. These actions are already planned, committed and funded.
Action 2.1 Implement the Skills for Work program
Tasmania will receive $39.1 million under the National Partnership on Skills Reform to implement the Skills for Work program. Skills for Work is about creating skills for the future, and enabling employers to develop their workforce through a training system that is easier to access and which works better for individuals, the community and industry.
A number of new initiatives will be implemented under Skills for Work, including: a) from 2014, all working aged Tasmanians will be eligible for a government subsidised training place for their first Certificate III qualification, at a government endorsed training provider; b) schemes will be piloted which provide industry with a stronger say on whether training outcomes are genuinely relevant to real jobs, and c) from 2014, people enrolling in diploma or advanced diploma courses will have access to an interest-free loan to cover any out of pocket fees and which starts to be repayable only when a reasonable income is earned.
Action 2.2 Improve literacy and numeracy skills through implementing the Raising the Bar – Closing the Gap program
The Department of Education‟s Raising the Bar - Closing the Gap program provides targeted additional support to identified primary and secondary schools to improve literacy and numeracy outcomes.
Action 2.3 Continue the implementation of the Trade Training Centres in Schools program
$3.2 million has been provided by the Australian Government under round four of the Trade Training Centres in Schools program for three new trade training centre projects, including one at Deloraine.
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Action 2.4 Create the new TasTAFE
A new vocational education entity, TasTAFE, is being created to replace the combined resources of the Tasmanian Skills Institute and the Tasmanian Polytechnic. Subject to the passing of legislation, the new arrangements will take effect from 1 July 2013.134 The new entity should provide greater clarity for learners and industry regarding vocational education and training (VET) pathways and training opportunities. It will also provide opportunities for reduced duplication and operational efficiencies.
Action 2.5 Offer the MBA (Professional) in Agricultural Innovation through UTAS135
This action is a joint Tasmanian Government and UTAS initiative involving the Faculty of Business and School of Agricultural Science. The course provides postgraduate training with a focus on developing agribusiness and innovation skills. A number of scholarships are provided by the Tasmanian Government for fee assistance towards selected Agricultural Innovation units studied in the Masters program.
Action 2.6 Attract more students to study at the UTAS and AMC northern campuses.
In accordance with the June 2012 Partnership Agreement between UTAS and the Tasmanian Government, UTAS and the government will work together to increase Tasmania‟s productivity through improved educational outcomes and increased participation rates of Tasmanians in education. The collaboration will strengthen pathways between secondary, vocational and higher education and assure the capacity of re-entry into education at any point. The Educational Attainment Working Group comprising the Department of Education, UTAS and DPAC was formed to meet these outcomes. It is currently finalising a select work program of activities to focus on to achieve these outcomes.
Action 2.7 Lift Tasmanian year 12 retention rates and increase the number of Tasmanians with post- secondary qualifications
Lifting Tasmanian year-12 retention rates and increasing the number of Tasmanians with post- secondary qualifications is a central component of the Department of Education‟s years 11 and 12 education and training strategy. The strategy targets the transition and retention of students from secondary to senior secondary colleges and the Tasmanian Polytechnic. The strategy also includes improving opportunities for year 11 and 12 education and training in regional centres to ensure students have access to and complete appropriate vocational and academic courses.
134 Tasmanian Government media release, 5 June 2012, http://www.premier.tas.gov.au/media_room/media_releases/a_new_single_entity_for_vet_in_tasmania, accessed 11 July 2012 135 University of Tasmania, MBA (Agricultural Innovation), http://www.utas.edu.au/business/study/postgraduate-coursework/courses2/master-of- business-administration-professional, accessed 25 July 2012
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Skills training in industry
Improvement in the skill base of the Tasmanian workforce is a priority for continued implementation of the Tasmanian Skills Strategy. Skills Tasmania‟s competitive skills programs for full qualifications and skill sets give priority to training that aligns with strategic industry and enterprise workforce planning. Skills Tasmania‟s collaboration with industry bodies is building the capability of businesses to benefit from training and skill development and is leading to better informed employers as clients of training organisations.136
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop regional skills through industry training in the northern region. These actions are already planned, committed and funded.
Action 2.8 Utilise the National Workforce Development Fund and Tasmanian skills programs
The National Workforce Development Fund, administered by the Australian Workforce and Productivity Agency and through Industry Skills Councils, provides $700 million over five years to support businesses which want to up-skill and re-skill new and existing staff in priority industries and occupations.137
A number of industry-specific skills development strategies and programs have been developed through Skills Tasmania in collaboration with relevant industry associations and bodies. These include: The Agriculture Industry Skills Plan138, October 2011- June 2014, developed in association with the Tasmanian Farmers and Graziers Association, is designed to enable agricultural industries to engage in workforce development and planning strategies and covers major industries identified as priority sectors in the northern region, including vegetables, fruit, wine, meat and poppy.139 The Dairy Industry Skills Plan140, developed in association with DairyTas, provides skills development opportunities for the dairy farm workforce in the region through a variety of sources – entry level training of apprentices, reskilling of those entering the industry from other sectors and up-skilling of the existing dairy industry workforce. The Tasmanian Transport, Freight and Logistics Industry Skills Plan The Aged Care Services Industry Skills Plan in association with Aged and Community Services Tasmania The Seafood and Aquaculture Industry Workforce Plan in association with the Tasmanian Seafood Industry Council.
Action 2.9 Undertake the Manufacturing Skills Excellence Network Pilot program
The Manufacturing Skills Excellence Network Pilot will be implemented through Operational Excellence Tasmania (OET) aligning Tasmanian manufacturing skills with the needs of business. OET will provide the opportunity for representatives from member organisations to come together to meet and learn from each other through a number of forums and events conducted throughout the year, including national forums, formal training opportunities, workshops conducted by visiting experts and other events like the Australian Maintenance Excellence Awards and National Manufacturing Week. In the manufacturing sector in 2009 there were 695 students in the northern region undertaking training from a Manufacturing Skills Australia Training Package.141 Uptake of Training Packages such as this reflected the needs of major manufacturing industries in the northern region and the Metal and Engineering Training
136 The major program in 2012, Productivity Places Program Plus, will be superseded by new programs for 2013-15. 137 Australian Government, Department of Industry, Innovation, Science, Research and Tertiary Education, National Workforce Development Fund, http://www.deewr.gov.au/Skills/Programs/SkillTraining/nwdf/Pages/default.aspx, accessed 19 September 2012 138 RDS Partners, 2011, Industry Skills Plan: Agriculture October 2011-June 2014, report commissioned for Skills Tasmania, Hobart 139 Skills Tasmania is in discussion with the TFGA on a project to extend the Agriculture Industry Skills Plan to more sectors within the Agriculture industry in late 2012. 140 Skills Tasmania, Dairy Industry Skills Plan 2009 141 National Centre for Vocational Education Research Ltd, http://www.ncver.edu.au/, accessed 3 July 2012
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Package had the greatest number of students (453), representing 65 per cent of the total uptake.
Action 2.10 Implement the Tasmanian Hospitality Industry Skills Plan
The recently completed Hospitality Industry Strategic Plan142 identifies access to skilled labour as being an ongoing issue for many business operators with regional areas suffering greater shortages than the cities. The Tasmanian Hospitality Industry Skills Plan identifies strategies to assist industry in ensuring access to sufficient numbers of skilled people in order to function at its full potential.143
Given that the vast majority of those employed in the hospitality industry are employed on a casual basis, combined with the fact that many of these employees do not perceive hospitality as a long term career choice, the industry suffers from relatively high staff turnover. This plan will provide a strategic framework to address issues in a holistic manner. Not only do strategies focus on improving perceptions of a career in hospitality but also seek to mitigate the issues that develop as a result of high staff turnover.
Action 2.11 Carry out the Rapid Response Skills Initiative
Through this program, the Tasmanian Government is providing support to people across Tasmania to help them upskill and reskill to gain employment where they have lost their jobs because of retrenchment, closures or company downsizing. Assistance is available for: retrenched workers and their partners workers and contractors upskilling or reskilling to transition out of the native forestry industry contractors who are no longer working because of business closure or downsizing casual, seasonal and contract workers affected by the closures.
The program can provide up to $2 500 per person to develop the skills for job opportunities or to change career, cover career pathway planning, skills assessment and training needs analysis.
Action 2.12 Roll out the Skilling Small Business for Growth program.
The government has a role to play in providing access to quality information, facilitation, training and mentoring to business operators. To help address these challenges for business, the Department of Economic Development, Tourism and the Arts (DEDTA) has developed the Skilling Small Business for Growth - Business Ready program to help small business owners and operators fill skill gaps and improve knowledge in key business areas. More information on Business Ready can be found in Objective 5, Actions 5.1 under Business development services.
Action 2.13 Deliver the Digital Ready program
The Digital Ready program, the Business Tasmania website and NBN4Business are among a number of programs being implemented under the Digital Futures Strategy. More information on this and other programs is contained in Action 5.1 in this document.
142 Creating Preferred Futures, 2012, Tasmanian Hospitality Industry Strategic Plan, report commissioned for the Department of Economic Development, Tourism and the Arts (DEDTA) and the Tasmanian Hospitality Association (THA) 143 Tasmanian Hospitality Industry Skills Plan, June 2012
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The suggested actions listed below to develop skills in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Investigate new programs to develop business management skills for business operators.
Facilitate the establishment of a North East Labour Co-operative being developed by the Department of Economic Development, Tourism and the Arts‟ (DEDTA) Northern Regional Office and Skills Response Unit, in partnership with Skills Tasmania, the Scottsdale Trade Training Centre, Dorset Community Economic Development Group ( Dorset EDG) and the Tasmanian Farmers and Graziers Association (TFGA). The proposal is to develop a pool of multi-skilled farm labour to service the north east district with seasonal cropping and dairy work.
Support further up-skilling and training in areas of value adding to primary production, for example cheese- making, downstream processing of vegetables and fruits into preserves and condiments, specialist bakery skills, abattoir and butchering skills, winemaking, beer/cider brewing/whisky making skills, wine and produce marketing and sales skills.
Support the establishment of a Centre of Excellence in Hospitality to not only train local but interstate and international students and provide a tourism opportunity in learning to work with local produce for professional cooks.
Review UTAS and AMC industry identified training products required for the region.
Investigate extending the Industry Engagement with Schools Program to the northern region in the future, subject to satisfactory program outcomes. Currently an 18 month pilot program is being run in the north west region.
Conduct a study into options for improving retention rates for post Grade 10 students.
Facilitate joint state and local government regional training plans.
Advocate the ABS for the development of sub-regional analysis of Census data.
Facilitate regional workforce planning, engaging with industry, community and government.
Promote and facilitate industry uptake of accredited training under national and state workforce development programs and other competitive funding.
Work with Break O‟Day Council on a proposal to integrate skills programs for retention and development of the labour pool in the district.
Develop a proposal through the DEDTA Northern Regional Office and Skills Response Unit that explores opportunities in Western Australia to target shutdown maintenance work, by engaging skilled manufacturing labour force teams from the George Town / Tamar Valley area to work in WA on a fly- in/fly-out basis, thus retaining a labour pool in the northern region.
Investigate training in potential future forestry products and downstream processing.
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Objective 3 Improve the business enabling environment
The Economic Development Plan identifies that establishing a business enabling environment is crucial in helping businesses grow. Removing impediments to obtaining business information and compliance with government regulations, including planning requirements, is a key initiative in the Economic Development Plan which will assist businesses in the northern region.
There are two areas that address the barriers to small business growth under which initiatives are being developed and implemented by the government over the next five years. One is to improve the business operating environment. The other is to skill small business for growth, which is addressed in Objective 2.
The regional engagement process highlighted that business needed and wanted better information exchange and greater collaboration with government to help identify, create and enable new opportunities.
The Business Tasmania initiative is a key action under both the Economic Development Plan and Small Business Strategy that aims to improve the business enabling environment by reducing red tape, simplifying access to information and the time businesses spend complying with regulation and to make it easier for business to find what they are looking for from governments at local, state and federal levels. The initiative includes a new online portal, a review of the compliance burden on business and a SmartForms development project
Business Tasmania
The Business Tasmania initiative aims to reduce the time businesses spend complying with regulation and make it easier for business to find what they are looking for from government.
Business Tasmania will provide: access to Tasmanian-relevant business information, tools and resources related to starting or growing a business online forums and discussions about particular business issues, assisting businesses in isolated and regional areas by providing better access and convenience to government information and support without having to travel information about events and training activities online access to an expanded range of Tasmanian Government information, programs and services relevant to Tasmanian businesses.
The Business Tasmania website will aim to make it easier for businesses to interact with all levels of government and to find the information they need, complete transactions and obtain services. The website will be supported by phone, email and SMS services.
Planning reform
To make northern Tasmania an even more attractive place in which to live and invest, important planning reforms are being implemented for the region. These will help boost confidence in our economy, and sustain jobs by creating greater certainty and quicker processes for home builders, investors and developers.
Under the Tasmanian Government‟s Regional Planning Initiative, the government has funded the three regions to achieve a more integrated planning system through: regional land use strategies, regional planning scheme templates, and contemporary and consistent interim planning schemes prepared by all councils.
The Tasmanian Planning Commission (TPC) has been working with councils and their regional organisations to achieve a more contemporary and responsive regional land use and planning system. Central to this work has been the development of the three regional land use strategies.
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In the northern region, Northern Tasmania Development, with Tasmanian Government support, has produced the Regional Land Use Strategy of Northern Tasmania. The Regional Land Use Strategy was declared by the Minister for Planning on 27 October 2011 and is now a statutory document.
“The Regional Land Use Strategy seeks to reduce the barriers to investment in ways that are consistent with the vision for the region and other relevant social and environmental strategies. It can do this in a number of ways, including coordinating services to ensure that land for appropriate development is available in the best locations, and ensuring that priority is given to investment that improves the necessary transport, energy and communications infrastructure.”144
A number of regional planning policy issues have been addressed as part of the Regional Land Use Strategy. These include the provision of strategies in relation to: a regional Settlement Network; a regional Activity Centre Network; a regional Infrastructure Network; regional economic development; social infrastructure and community; and the regional environment.
New consistent requirements for residential development that have been implemented recently will also reduce costs and the regulatory burden and speed up applications for compliant single dwellings in a residential zone. In most cases people will no longer need planning approval for a new house if their application complies with the relevant common state-wide development standards
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to improve the business enabling environment in the northern region. These actions are already planned, committed and funded.
Action 3.1 Implement the Business Tasmania portal
The Business Tasmania portal will be launched in early 2013 and will evolve according to the needs of Tasmanian business users. It will enable businesses to interact more readily and effectively with all levels of government, find needed information, complete transactions and obtain services.
The website, or portal of information, will be supported by phone, email and SMS services and draw content relevant to business from state government agencies.
Business Tasmania will assist businesses in isolated and regional areas, by providing better access to government information and support without having to travel, such as the ability to: find business information relevant to Tasmania, as well as appropriate tools and resources related to starting or growing a business take part in online forums and discussions about particular business issues find information and register for events and training activities secure online access to an expanded range of Tasmanian Government information, programs and services relevant to businesses in the region and state find help for a business or ask for assistance by phone, email or SMS.
Business Tasmania will enable business owners and operators to search for business licences and permits online. It will provide a single entry point to various services, including the Australian Business Account and Australian Business Licensing Information Services.
Action 3.2 Undertake a Compliance Burden Review
This review includes a red tape survey and other research to conduct a systematic review of the paperwork, processes, time and costs of compliance, followed by the development and implementation of detailed action plans and specific targets to reduce the burden. The review is being done to improve the business operating environment in Tasmania.
144 Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, op.cit., p.11
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The survey will test perceptions, confirm priority issues and sectors and „baseline‟ the current compliance burden. The review also includes in-depth interviews with businesses in Tasmania‟s key industry sectors and discussions with industry associations and business groups.
The findings will help accurately describe the current environment and test myths and perceptions and inform the development of whole of government action plans to address compliance burden. This is an on-going project.
Action 3.3 Initiate the SmartForms project
The Business Tasmania team will work with local government to convert business paper-based forms to SmartForms over a 5-10 year period. This project aims to develop and implement a series of action plans for each key industry sector in Tasmania to outline ways for government to reduce red tape for business, for example by: making it easier to find forms and information providing better, simpler explanations of what to do simplifying processes (for example, reduce the number of steps, reduce the amount of documents required, reduce the number of questions on the form) converting paper based forms to electronic or online forms.
Whilst the initial focus is on improving state government forms and processes, the Tasmanian Government will be sharing recommendations with the Australian Government and at the local government level to reduce duplication. This is a long term project with the aim that significant Tasmanian Government transactions be transferred from paper to online within five years, and local government within ten years.
Action 3.4 Attract new private investment for strategically significant enterprises through Invest Tasmania.
Private investment attraction and facilitation is an important function in regional development. The Tasmanian Government assists new small and medium-sized investors, including existing businesses that are looking to expand to navigate the development path, particularly in relation to the various government and related entities. The Government has established Invest Tasmania as the lead agency for investment attraction which is the first point of government contact if investors want to establish, relocate, diversify or expand their business in Tasmania.
Action 3.5 Continue collaboration between state and local government through established mechanisms
This collaborations is moving toward a stronger regional approach, with a focus on the public and private sectors working together to exploit regional strengths within and between industry sectors.
Action 3.6 Assist business to take full advantage of the Tasmanian Freight Equalisation Scheme
The Tasmanian Government assists businesses to take full advantage of the Tasmanian Freight Equalisation Scheme which offers federal funding to offset the freight cost disadvantage of moving goods across Bass Strait.
Action 3.7 Deliver the Meet the Buyers expo.
The proposed Meet the Buyers Expo will take the form of a workshop on access to government tenders. The workshop for small business owners will seek to clarify the procurement processes, improve understanding of the requirements and encourage small businesses to tender.
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Action 3.8 Implement major reforms to the Tasmanian planning system
Major planning reform initiatives will strengthen the role of regional planning in the state and provide a strategic and more consistent regulatory environment for business.
Consistent state-wide planning provisions are being developed, in close consultation with local government and industry, for multiple dwelling developments and for appropriate development in areas where there are potential natural risks and hazards. These provisions will further clarify and streamline planning requirements in all planning schemes. More than $4.5m of additional funds have been allocated to the TPC over the next three years to support planning reform.
Action 3.9 Align regional planning initiatives to the Regional Land Use Strategy of Northern Tasmania
In future, all planning schemes developed by northern councils will need to be consistent with the objectives of the Regional Land Use Strategy of Northern Tasmania.
Action 3.10 Develop a Settlement /Activity Centre classification.
DEDTA has provided support funding to the TPC to develop a settlement hierarchy consistent for the state based on the Activity Centre approach. This will introduce many benefits including assisting in the provision of an efficient and equitable use of resources and infrastructure and provide a centre around which housing opportunities can be strategically planned.
Action 3.11 Accelerate the multi dwelling code
DEDTA is assisting the TPC to accelerate the development of a state-wide code for simpler approval of multi dwelling developments.
Action 3.12 Undertake a range of regional economic development facilitation activities
DEDTA facilitates regional economic development through managing key relationships regarding the region‟s priorities and policy setting, working with enterprises that impact significantly on the regional or state economy, and delivering and reporting on programs such as the Tasmanian Government Innovation and Investment Fund and the Marketing Assistance Scheme.
The suggested actions listed below to improve the business enabling environment in the northern region will be evaluated, prioritised and, where appropriate, implemented by government. Leverage early utilisation of NBN infrastructure. Extend and leverage Business Tasmania through: data capture and analysis to provide regional profiling of business in Tasmania developing capacity for regional specific online forums. Continue to increase enterprise efficiencies and the value of products and services through leveraging the Compliance Burden Review to: extract regional information to identify regional specific issues/priorities if issues particular to the regions are identified from the Red Tape Survey, the department could consider conducting a series of additional Regulatory Cost Model (RCM) investigations through in depth interviews to drill down into particular industry sectors and issues specific to regions. Assist industry to develop commercially focussed research and development projects. Investigate the potential of government procurement to be a driver for innovation.
Support the development of a Regional Business Database.
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Objective 4 Enable access to finance
The Tasmanian Government‟s Economic Development Plan identifies access to affordable finance as continuing to be an issue for Tasmanian businesses and outlines the principal focus for the government on this issue as being to help businesses, particularly small businesses, to access finance, primarily through improved access to expert advice and tools, as well as facilitating access to networks of private sector financiers.
There is no evidence that financial institutions are presently capital constrained in any significant manner, thereby limiting the supply of funds available for lending to businesses. Issues such as bank lending criteria and the high cost of finance continue to be raised with the government as representing constraints on business and economic development of the State.
However, it is equally true that financial institutions regularly monitor and review their lending criteria in light of a range of global, industry, and regional economic circumstances to ensure that their overall loan portfolio is managed within prudent risk parameters.
From time to time this can mean that loan proposals that were able to be approved at one point in time, may not be approved at another point in time. This is part of the normal cycle of the economy and finance sector.
The Tasmanian government has online information for businesses to assist with the preparation of a business case that is supported by a network of Enterprises Centres around the state where one to one assistance to businesses owners is available.
DEDTA also maintains a network of regional offices around the state based in Hobart, Launceston and Burnie. The regional office network offers one to one assistance for businesses that are strategically important and who have the capacity to significantly impact on supply chains, investment and jobs in industries with a sustainable future.
The government is committed to continue to consider direct assistance to lead projects or businesses that have the capacity to significantly impact on supply chains, investment and jobs in industries with a sustainable future or to smooth out the impact of crises.
This function is provided through the independent Tasmanian Development Board. The Board comprises highly qualified and experienced industry leaders from a diverse range of business backgrounds.
In order to ensure the provision of financial assistance secures valuable economic development outcomes for Tasmania, the Board rigorously assesses all financial assistance proposals against a number of principles to ensure that: the Board is convinced that a sound reason for provision of financial assistance by government exists and the financial resources are available to do so, proposals deliver sustainable benefits to Tasmania that are well aligned with government policy and departmental strategy and do not unduly disadvantage other Tasmanian businesses, the proponent has the capability and capacity to deliver the potential benefits to Tasmania, and the benefits of the proposal are commensurate with its costs and risks, with the provision of financial assistance therefore representing sound value for money.
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The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable access to finance in the northern region. These actions are already planned, committed and funded.
Action 4.1 Work with financial institutions and financiers to facilitate suitable finance models for business
DEDTA will facilitate meetings of relevant business representatives, financial institutions and financiers to discuss and potentially develop alternative, innovative models for raising capital and finance for business, customised for individual businesses or groups of businesses.
Action 4.2 Assist enterprises in crucial situations with reskilling, employee redundancies and financial assessment options
DEDTA‟s Skills Response Unit is coordinating and facilitating forums of Tasmanian, Australian and Local Governments and other key stakeholders to provide information, support and advice to enterprises facing a crisis situation.
Action 4.3 Assist businesses to grow through the Tasmanian Government Innovation and Investment Fund
The Tasmanian Government Innovation and Investment Fund (TGIIF) is designed to assist Tasmanian business owners invest in innovative projects that will significantly improve their sustainability, performance, growth and productivity, generating new investment and creating sustainable high quality, skilled jobs that help diversify and strengthen Tasmania‟s regional economy.
Action 4.4 Facilitate economic development opportunities for social enterprise by leveraging Social Enterprise Finance Australia (SEFA).
SEFA is committed to innovative lending approaches, together with business support, assisting social enterprises to build capacity, manage debt and become financially sustainable.
The suggested actions listed below to enable access to finance in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate the investigation of alternative financing models for priority sectors.
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Objective 5 Deliver business development services
Skilling business for growth was identified within the Economic Development Plan as an opportunity to enable the sustainability of Tasmanian businesses. Research undertaken with Tasmanian businesses identified that business owners often do not have the skills necessary to grow their business. Businesses face other challenges such as being time-poor, cash strapped or have competing priorities. The Tasmanian government has committed to deliver a range of capacity building, training, facilitation and mentoring services to Tasmanian businesses. As the core service, the government will provide free access to information to assist all small businesses on the Business Tasmania website with intensive training and skill development for business owners available through the Business Ready program.
The Tasmanian government has an important role in facilitating information exchange, advice and business support and intelligence to help businesses make key decisions for growth. DEDTA is playing a key role in connecting businesses with each other and with government through forums, business development events and, in the future, through the Business Tasmania site. DEDTA is playing a role in ensuring affordable, quality advice and assistance, and business development information is available when businesses need it.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to deliver business development services in the northern region. These actions are already planned, committed and funded.
Action 5.1 Support new and emerging businesses through the implementation of the Business Ready program
The Business Ready program offers short, affordable skill development workshops and training at times convenient to business. In many cases this will include a one-on-one coaching session at their workplace. Business Ready features topics in six areas of interest to business. These include Digital Ready, Market Ready, Investment Ready, Energy Ready, People Ready and Succession Ready. These topics cover issues of relevance to business in different stages of development and are run to specifically meet the needs of busy business owners and managers.
The workshops program began in June 2012 and will continue until at least June 2013. It will feature on the Business Tasmania site once it is launched, increasing the program‟s accessibility across the region.
A number of programs are being implemented under the Digital Futures Strategy, including the Digital Ready Program and NBN4Business.
Digital Ready will be running programs in the northern region over the next two years, with an initial program for Launceston across the fourth quarter of 2012.
The NBN4Business assistance package has provided funding assistance to the Tasmanian Chamber of Commerce and Industry, the Tasmanian Farmers and Graziers Association, the Tasmanian Small Business Council and the Tourism Industry Council of Tasmania. The purpose of the assistance package was to fund the sector-specific peak organisations to assist industry and business to gain awareness and take advantage of the NBN.
Action 5.2 Support new and emerging businesses through the running of Small Business Connect forums
DEDTA runs public business forums under the Small Business Connect initiative twice a year to provide an opportunity for an on-going, open dialogue between government, small business and representative organisations. These forums are chaired by the Parliamentary Secretary for Small Business and enable business to communicate current views and issues of concern as well as provide government with the opportunity to share information on current activities and report on progress of initiatives.
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Small Business Connect forums will also be hosted in an online form via Business Tasmania once the site is established within the Tasmanian business community.
Action 5.3 Support new and emerging businesses through the establishment of the Tasmanian Small Business Advisory Network
The Tasmanian Government will introduce a cross-agency advisory network, the Tasmanian Small Business Advisory Network, with representation from each relevant state government department. Representatives from relevant Australian Government agencies such as the Australian Taxation Office or Fair Work Australia will also be invited to join the network. The network will meet quarterly to consider policy and program measures that impact on small business such as the introduction of new regulations. The formation of the network will occur once Business Tasmania is established.
Action 5.4 Support new and emerging businesses through funding Mentor Services Tasmania
The Tasmanian government funds Business Mentor Services Tasmania to provide free mentoring support to businesses across the state.
Action 5.5 Support new and emerging businesses through funding Enterprise Centres Tasmania
The Tasmanian Government recognises the important contribution that small business makes to the local economy. As significant contributors to the economy, it is important that these businesses are supported with quality and timely support and advice. While some support is provided by the private sector, fees are often a barrier for small business owners.
The Enterprise Centres Tasmania network delivers free guidance and assistance to start-ups and existing small businesses across Tasmania. This network receives the majority of its funding from the Tasmanian Government, with some operators also receiving support from local government and the Australian government.
DEDTA is undertaking a review of the current model, including the sustainability of funding arrangements and the type and breadth of services offered, to ensure Tasmanian businesses can be provided consistent, professional and valuable advice now and in the future. This review involves extensive consultation with stakeholders and interested parties, a survey of businesses, as well as a review of best practice models from interstate and overseas. The review will provide recommendations on the Business Advisory and Mentoring Services to be funded by the Tasmanian Government from July 2013.
Action 5.6 Support new and emerging businesses through the Growing Business program
The Growing Business program is a joint initiative of DEDTA and the Tasmanian Chamber of Commerce and Industry designed to support small to medium sized Tasmanian enterprises review and implement sustainable business growth strategies.
The suggested actions listed below to deliver business development services in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Review and update topic areas for the Business Ready program
Review the effectiveness of business development services to inform decisions on continuation, expansion or redirection of funding
Explore mechanisms for facilitating high level financial management assistance to businesses experiencing financial difficulty.
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Goal Two To maximise economic potential in key sectors in the northern region
The Economic Development Plan seeks to maximise the contribution to economic growth and jobs from the various industry sectors of the economy. The sector strategies in Goal Two supplement and complement the focus on supporting and growing businesses under Goal One.
The priority trade and investment sectors and sub-sectors in northern Tasmania are:
Advanced manufacturing Food and agriculture o Dairy o Fruit o Poppy o Red meat o Vegetables o Wine Forestry and related products Mining and mineral processing Tourism.
The priority sectors in the northern region have significant flow-on effects into the major employment sectors such as the retail, hospitality and service sectors.
The emphasis in selecting these priority industry sectors and sub-sectors is on where the greatest benefit is to be gained for the northern region‟s economy. This is guided by factors such as:
whether the sector currently trades off-island, or has the potential to do so potential of the sector to attract investment that will have wide economic benefit the comparative strengths and opportunities present within the economy and whether there is market driven growth potential whether there are strong skills and experience within the sector‟s community the degree to which the sector relies on or contributes to the crucial positioning and integrity of Tasmania‟s brand where the economy as a whole is most likely to benefit from focused government attention to a sector.
The Economic Development Plan uses a value-chain approach to looking at sectors. For example, the sectoral strategy for food and agriculture covers primary production as well as food processing, thereby value-adding through the whole chain from the paddock to the plate.
By 2021: Traditional economic drivers in the region, food and agriculture, mineral processing and advanced manufacturing, remain pillars of the regional economy and play a significant role in its future. A transformed sustainable, plantation-based forest and forest products industry competes successfully in global markets and returns significant wealth to the region. Irrigation schemes across the region have enabled considerable expansion of dairying and opportunities to value-add a diverse range of other agricultural products are being maximized. The tourism sector has consolidated itself as key economic driver and employer across the region. The more remote parts of the region have successfully leveraged economic activity and growth from the regional economic epicentre that is Greater Launceston.
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The success of the Northern Regional Economic Development Plan to achieve this vision by 2021 will depend on its capacity to: leverage economic activity in the region from the regional city attract and support a diversity of traditional and new industry sectors build tourism capacity and capability facilitate the uptake of water from new irrigation schemes successfully promote and market the region‟s products and its many natural and lifestyle advantages.
Objectives
The following objectives indicate the levers that government can influence to maximise economic potential in priority sectors in the northern region:
Objective 6 Enable industry development in priority sectors Objective 7 Attract and facilitate investment
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Objective 6 Enable industry development in priority sectors
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development across all identified priority sectors and sub-sectors in the northern region. These actions are already planned, committed and funded.
Action 6.1 Continue to support and strengthen Brand Tasmania
The Tasmanian Government, in collaboration with the Brand Tasmania Council, will continue to implement projects to build the Tasmania brand in local, national and international markets. This strategy leverages the Tasmania brand advantage in priority sectors, particularly food and agribusiness, to encourage investment and trade in areas of strength and competitive advantage that impact positively on the state‟s economy and community.
The delivery of projects such as the Taste Tasmania Campaign, which promotes local produce, and targeted attendance at major national food and wine branding events such as Good Food & Wine and Taste Sydney, are designed to promote the rich quality of life that Tasmania offers through the valued reputation of Tasmania‟s food and beverages, arts, tourism and its liveability.
Action 6.2 Facilitate the establishment and maintenance of sectoral collaborative networks and clusters
The regional offices of the Department of Economic Development, Tourism and the Arts (DEDTA), together with other government agencies, directly assist industry in the establishment of business and industry networks, introducing people and enterprises to each other. Where appropriate, these networks are encouraged and assisted to form industry clusters, both physical and online, for priority sectors or parts of priority sectors.
Sector development activities are particularly successful where the government facilitates collaboration and coordination on matters of common interest, and the sharing of research and information. These activities include government working with industry at a whole-sector level, such as programs for the dairy industry and the wine sector. The government facilitates information and networking events for business across a range of areas of interest that provide opportunities to improve business operation and sales.
Action 6.3 Establish an industry-led Tasmanian Freight Logistics Coordination Team
This new body will examine strategic issues around freight, logistics, ports and transport planning. In March 2012, the Australian Government made available a $20 million assistance package to support Tasmanian exporters to offset some of the increased costs due to changes with Bass Strait shipping logistics. Elements of this package will support northern businesses through the following mechanisms:
$14.5 million for one-off grant payments for direct assistance to exporters. This will be broken into two tranches, with $11 million available for those companies who were directly impacted by the loss of the AAA service and $3.5 million for all other exporters.
$1.5 million to establish the Tasmanian Freight Logistics Coordination Team. This group could potentially examine a range of strategic issues associated with the development of Tasmania‟s freight and logistics sector, including industry-specific freight and logistics issues, efficiency improvements and cost minimisation across supply chains and/or Tasmania‟s long- term ports and other strategic transport planning.
Action 6.4 Support industry through Industry Advisory Committees
The objective of the Industry Advisory Committees is to provide strategic advice to the Minister for Economic Development on economic development issues generally, and sectoral
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development issues including the relevant sectoral element of the Economic Development Plan, in its development, implementation and assessment of effectiveness.
Currently, there are four Industry Advisory Committees: Building and Construction Industry Advisory Committee Food Industry Advisory Committee Manufacturing Industry Advisory Committee Science and Research Sector Advisory Committee.
The suggested actions listed below to enable industry development in priority sectors in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate the identification of waste management solutions for priority sectors
Facilitate industry uptake of accredited training under national and state workforce development programs
Promote and facilitate industry involvement in workforce planning and development networks
Leverage applications of the SenseT145 sensor network.
145 Part funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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The following pages provide a brief snapshot of priority industry sectors and sub-sectors in the northern region and actions being taken by government to enable their development. More detailed information on each sector can be found in Part 3 of this Plan.
Advanced manufacturing
The advanced manufacturing sector in northern Tasmania has been dominated by engineering construction and maintenance works for several large mineral, food, forestry processors and renewable energy projects, which have further supported the development of a highly-skilled, innovative supply chain.
Key areas of specialisation include: metal manufacturing and casting food and beverage manufacturing specialised machinery manufacturing precision engineering.
The metal manufacturing sector consists of a large number of jobbing shops producing a wide variety of manufactured products and services.
Crisp Bros/Haywards is one of Tasmania's leading steel fabrication, engineering and construction companies, based in northern Tasmania at Western Junction and Kings Meadows. The company services a wide range of industries specialising in mining equipment, power transmission towers, bridges, conveyors, pipelines, silos/storage tanks, architectural steelwork and offshore drilling platforms.146 The 80 metre high wind towers for the Musselroe wind farm in north east Tasmania are being constructed by Crisp Bros/Haywards.
Several specialised manufacturers operate niche production facilities in the north, including:
Hazard Systems (warning products for emergency vehicles) ACL Bearings (automotive engine bearings and powder metallurgy components) Dixon Plastics & Tooling (moulding dies and plastic components).
Northern Tasmania also has a small marine manufacturing sector which includes Georges Bay Marine at St Helens and the Southern Marine Shiplift located in the Tamar River at Invermay.
The food and beverage manufacturing sector in northern Tasmania deals with a highly diversified range of food products, including dairy products, meat products, wine, beer, cheese, berries, fruit and vegetables. One successful company in this sector in the north is Tamar Valley Dairies Pty Ltd, a privately owned food manufacturing business which was established in Launceston in 1996. With a staff complement approaching 160 full and part time employees, the company is one of the largest employers in the Launceston area and also one of the largest suppliers of probiotic yoghurts in Australia.147
J. Boag & Son established the Esk Brewery in 1881 on the banks of the North Esk River in Launceston. J. Boag and Son, now owned by Lion, employ more than 150 people and produce more than 76 million litres of beer annually.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the advanced manufacturing sector in the northern region. These actions are already planned, committed and funded.
Action 6.5 Support industry through import replacement and participation in major projects utilising the Industry Capability Network
This action facilitates connections between Tasmanian manufacturers and major project proponents and/or prime contractors through the Industry Capability Network.
146 Crisp Bros/Haywards, http://www.haywards-steel.com/, accessed 5 July 2012 147 Tamar Valley Dairy, http://www.tamarvalleydairy.com.au, accessed 5 July 2012
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Action 6.6 Offer the Lean Action Learning and the Operational Excellence Tasmania programs to northern manufacturing businesses
Stage two of the Lean Action Learning program is being run in the northern region. The program will significantly improve the competiveness of up to six participating enterprises. Further development of this project will be conducted regionally to build networks in preparation for a live action learning project. The program involves running public events, workshops with national and international experts, industry exemplars and professional organisations. Topics include management skills development and modern manufacturing innovation.
Action 6.7 Continue to support advanced manufacturing through the Tasmanian Defence Initiative
The Tasmanian Defence Initiative is a joint industry and government project which has been operating from the manufacturing sector unit and the Industry Capability Network in DEDTA for several years. The Tasmanian Defence Initiative aims to: help businesses that support Defence to become competitive, grow their capability and win Defence-related contracts attract investment by Defence and related industries in Tasmania leverage economic development from export opportunities in the international Defence space ensure a strong, reliable, informed and supportive relationship exists between the Tasmanian Government, Defence and the Defence community.
Action 6.8 Facilitate the Manufacturing Skills Excellence Network in Bell Bay and Rocherlea
Working with industry through manufacturing skills excellence networks ensures relevant workforce skill development. A Manufacturing Skills Excellence Network Pilot will be implemented through Operational Excellence Tasmania. Three focus sub-regions have been identified including Bell Bay/Rocherlea in the north.
Action 6.9 Complete an industry capability review of the Greater Launceston area
An infrastructure and capability review is being undertaken by DEDTA in the Greater Launceston area, focussing on manufacturing industries located at Bell Bay. The review will include: audit current infrastructure and identify constraints and opportunities audit current technical services and identify constraints and opportunities identify and consult with key stakeholders develop a framework for growing business opportunities for traditional industries into these resource based activities.
Action 6.10 Undertake trade promotion, including overseas and interstate missions, trade exhibitions, and arranging visiting buying groups and influencers.
This activity includes targeted promotion of Tasmanian capabilities supplying defence industries and opportunities in the mining, offshore oil and gas, renewable energy and border security areas.
The suggested actions listed below to enable industry development in the advanced manufacturing sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Undertake a „mapping the connections‟ project through Enterprise Connect for a manufacturing cluster
Conduct efficiency reviews in conjunction with Enterprise Connect
Encourage targeted companies to participate in the Lean Action Learning program
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Facilitate industry input to develop advanced manufacturing skills courses
Develop programs to help industry maintain contemporary knowledge of globally competitive process management systems, including but not exclusive to Insights to Excellence and other lean management skills development
In partnership with UTAS and Skills Tasmania, further develop innovative strategies to address skills needs in the manufacturing sector.
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Food and agriculture
Tasmania has a strong agricultural tradition and the sector is highly diversified, underpinned by excellent growing conditions, affordable land, relative disease and pest freedom, abundant water resources and strong research and development capability.
The government has a vision for Tasmania to substantially increase its food and agriculture production and become a major supplier of the nation‟s premium food products.
Primary industry is a significant contributor to the economy of the northern region through value of production and in terms of employment. Arguably its most significant contribution is the employment opportunities this sector provides in the rural areas beyond Greater Launceston.
Food and agriculture production in northern Tasmania includes dairying, livestock, broadacre crops (including GM-free canola, poppies and pyrethrum), vegetables, viticulture, berries, pome and stone fruit, forestry and plant nurseries. Boutique and niche products that are grown in the northern region include truffles, wasabi and ginseng, and there is a growing organic vegetable industry.
Of the $370 million in agricultural production in the northern region, 31 per cent is derived from livestock, 19 per cent from milk and 17 per cent from vegetable growing.148
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the food and agriculture sector in the northern region. These actions are already planned, committed and funded.
Action 6.11 Assist the Tasmanian Farmers and Graziers Association (TFGA) in the development of the Tasmanian Agricultural Industry Strategic Plan
The Tasmanian Government is supporting the TFGA in the development of a Tasmanian Agricultural Industry Strategic Plan and in the development of commodity sector plans where gaps are identified.
Action 6.12 Investigate potential growth of the equine industry in the region
In collaboration with Meander Valley Council, the Tasmanian Government is investigating the development of a blueprint for growth of the equine sub-sector, particularly leveraging our natural advantages of quarantine, pasture and climate to grow domestic and international exports.
Action 6.13 Complete irrigation infrastructure development through Tasmanian Irrigation
Tasmanian Irrigation Pty Ltd (Tasmanian Irrigation) is building/planning the following irrigation schemes in the northern region: Lower South Esk Scheme (under construction) Midlands Irrigation Scheme (northern section) (under construction) Upper Ringarooma Irrigation Scheme (under development) Scottsdale Irrigation Scheme (in the planning stage).149
Action 6.14 Continue to provide research, development, extension and education through the Tasmanian Institute of Agriculture
The Tasmanian Institute of Agriculture (TIA) is regarded as a national role model for institutional partnerships and integrated research, development, extension and education. With
148 2010 figures. Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, op.cit., p.90 149 Tasmanian Irrigation, op.cit.
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the recent fusion of the School of Agricultural Science and its research arm a new model of research, development, extension and education has been pioneered.
Action 6.15 Develop a business plan for the Centre for Food Innovation, and undertake a feasibility study for a food processing, research and testing facility at Scottsdale.150
Funds have been allocated in 2012 from the Tasmanian Forests Intergovernmental Agreement for innovative food systems research and to develop a business plan for the Centre for Food Innovation. The Centre is a joint venture project between the UTAS, CSIRO and the Defence Science and Technology Organisation, which could provide future opportunities to diversify the agricultural base of the region for the local production of small-volume, high-value crops together with local manufacture of ingredients to service the defence forces.
Action 6.16 Implement Industry Workforce Plans, particularly the Agriculture Industry Skills Plan
The Agriculture Industry Skills Plan October 2011- June 2014,151 in association with the TFGA, is designed to enable agricultural industries to engage in workforce development and planning strategies and covers major industries identified as priority sectors in the northern region, including vegetables, fruit, wine, meat and poppy.152
Action 6.17 Implement the Taste Tasmania campaign
A new food and beverage campaign called Taste Tasmania was launched in May 2012 in tandem with producers, food service businesses and retail stores to promote Tasmanian produce to local grocery buyers. The campaign funded, to 2014-2015, aims to increase brand awareness of local produce ultimately leading to increased sales.
Action 6.18 Maintain and enhance biosecurity controls
Biosecurity is the protection of industries, the environment and public well-being, health, amenity and safety from the negative impacts of pests, diseases, and weeds. The Tasmanian Biosecurity Strategy underpins and implements Tasmania‟s Biosecurity Policy. The Strategy is a whole-of-Government framework within which biosecurity issues in Tasmania can be addressed in the most efficient and effective way. Co-ordination of biosecurity activities across Tasmania is seen as vital in optimising resources and in, not only maintaining, but also building on the State's strong biosecurity status. The Tasmanian Biosecurity Strategy is based on transparency, consistency, and scientific principles as is Tasmania's biosecurity policy.
Tasmania‟s geographic location and island status provides a significant commercial advantage and economic potential within the food and agriculture area. Preservation and growth of all sectors is absolutely dependent on the maintenance of appropriate border security through a robust regional risk assessment process aligned to an appropriate level of protection.
Action 6.19 Implement the SenseT153 pilot projects in Dorset and the Northern Midlands
An agricultural optimisation pilot program is being facilitated in Dorset involving a range of several agricultural industries and a multitude of enterprises from farms to producers to determine where SenseT can provide the most significant benefits to the industry. The SenseT pilot will combine historical and spatial data with real-time sensing data from a whole-of-state sensor network. Information from this data integration will be available to the community.
150 Funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA) 151 RDS Partners, 2011, Industry Skills Plan: Agriculture October 2011-June 2014, report commissioned for Skills Tasmania, Hobart 152 Skills Tasmania is in discussion with the TFGA on a project to extend the Agriculture Industry Skills Plan to more sectors within the Agriculture industry in late 2012. 153 Funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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A flood and catchment management project is being undertaken in the South Esk river catchment. SenseT will build upon the CSIRO South Esk Catchment Hydrological Sensor Web project to improve coverage of the 40+ sub-catchments of the South Esk River leading to improved real-time flow forecasts, and investigate extending this capability into the Ringarooma catchment.
Action 6.20 Promote Tasmania's Hormone Growth Promotant-free status
Being the only Australian state or territory to have and maintain an HGP free status provides a point of market differentiation for Tasmania‟s beef exports both domestically and overseas.
Action 6.21 Integrate all Tasmanian branding initiatives to ensure a cohesive and consistent message centred on premium-quality goods and services.
Trade promotion has strong emphasis on promoting off-island exports interstate, complemented by close collaboration with Austrade to maximise the potential of international market opportunities. Specific activities include: Tasmania Unbottled The Marketing Assistance Scheme Targeted international and interstate trade exhibitions, promotions and missions under the Tasmanian brand Hosting visiting buying groups to the state Export skills development delivered under the Business Ready program
The suggested actions listed below to enable industry development in the food and agriculture sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate visits of potential new food and agriculture investors interested in new agricultural and horticultural business ventures utilizing irrigation water, such as salad leaf vegetables, soft fruits, or culinary and medicinal herbs.
Investigate and facilitate diversification, including new crop and value-adding opportunities.
Map the food value chain in the region with a view to identifying and supporting collaborative opportunities between producers and processors.
Work with Enterprise Connect to undertake a „mapping the connections‟ project for a food processing cluster.
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Priority sub-sectors in food and agriculture in northern Tasmania are:
Dairy
Dairying is a major industry in the northern region and provides the greatest contribution to the agricultural economy in the Dorset and Meander Valley municipalities154; new irrigation schemes could also support future dairy development in Northern Midlands.
The main products derived from northern dairies include cheese, UHT milk, skim and whole milk powder, butter, whey, yoghurt, milk, confectionary and cream.
Milk produced in the north and north east is mainly processed by Fonterra Australia at Spreyton and Lion at Burnie. Current and planned expansion of processing capacity in the north west region has the potential to support increased milk production in the north east, but the transport of raw milk to north west processors has been flagged as a significant freight cost issue. In response, there have been preliminary investigations into the feasibility of establishing a partial processing facility in the north east to remove a large percentage of water from the raw milk, enabling a more concentrated product to be transported to the north west for further processing.155
In addition to the large north west processing companies, a number of smaller, local dairies and dairy food processors are active in the northern region, including: Ashgrove Cheese - Elizabeth Town (cheese and milk products) Elgaar Farm - Elizabeth Town (organic milk and cheese products) Meander Valley Dairy - Hillwood (clotted cream and crème fraîche products) Pyengana Dairy – Pyengana (cheese and milk products) Tamar Valley Dairy – Launceston (yoghurt products) Westhaven Dairy – Legana (goat‟s milk cheese products) Yondover Farm House Cheese – Lebrina (goat‟s milk cheese products).
Two key issues which constrain the northern dairy industry are:156 1. high debt levels and limited business and financial management skills, which impacts on capacity to manage volatility and respond to opportunities, and 2. difficulties attracting and retaining labour as well as encouraging new owner/operators into the dairy sector.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the dairy sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.22 Enable industry development in the dairy sub-sector through: Attracting new investment into dairy farming and fostering sustainable growth in milk production. Attracting and facilitating new investment in milk processing capacity in the state. There is significant scope for increased milk production which could see Tasmania‟s milk output more than double to 1.5 billion litres per year and attract additional processing investment. Additional processing capacity in the north west will assist production expansion in the north and north east. Undertaking irrigation development in dairying areas.
154 AK Consultants, 2010, Agricultural Profile – Regional Summary of the Northern Tasmanian Municipalities, report commissioned by Northern Tasmania Development, Launceston 155 Dorset Community Economic Development Group Inc, 2011, DEDTA Grant Deed Report 156 Department of Economic Development, Tourism and the Arts, 2012, Industry survey to support the Northern Regional Economic Development Plan, (Dairy)
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Undertaking research, development, extension and education services through the Tasmanian Institute of Agriculture as a key driver of further productivity enhancement and developing management strategies for addressing climate change. Providing continued quality management for dairy and milk processing facilities through the Tasmanian Dairy Industry Authority157 Addressing skills shortages and skills needs in the industry. The Dairy Industry Skills Plan (see Goal One, Developing regional skills), provides skills development opportunities for the dairy farm workforce.
The suggested action listed below to enable industry development in the dairy sub-sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate a feasibility study into the viability of establishing a milk condenser facility in the north east to reduce the cost of transporting raw milk to north west processors.
Fruit
The Tasmanian fruit industry comprises three main sub sectors, all of which are active in the northern region: pome fruit - primarily apples, with some pears; stone fruit - primarily cherries; and soft fruit - strawberries, raspberries, blackberries and blueberries.
The gross value of all fruit (excluding grapes) in the northern region in 2006 was $13.1 million produced on 525 hectares of land by 61 establishments.158
Pome fruit and stone fruit orchards are located in suitable microclimates across the region, predominantly in the Tamar Valley, but current plantings are much smaller than in the middle of the last century. Despite having a long history of apple and pear production, the Tamar Valley currently produces only about seven per cent of the state‟s apple crop.159
However, recent investment and expansion in northern Tasmania will see a substantial increase in the production of soft fruit in coming years, particularly blueberries, strawberries and raspberries. Major national companies such as Costas Berry Exchange, in partnership with international group Driscolls, are amongst a new wave of investors in soft fruit plantings in the northern region. 160
In addition, there is potential to grow the region‟s nut industry. Further expansion in hazelnut production is likely in the Meander and Tamar districts as climatic conditions are well suited and opportunities exist to supply fresh high quality nuts to the domestic market.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the fruit sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.23 Enable industry development in the fruit sub-sector through: Developing irrigation schemes in appropriate fruit growing areas. Expanding the industry through trade promotion, branding and market development. Addressing access to skilled labour. Providing research, development, extension and education services to the industry. Examination of alternative business structures that will enable competitiveness.
157 Tasmanian Dairy Industry Authority, http://www.dpiw.tas.gov.au/inter,nsf/WebPages/SSKA-75U9EZ?open, accessed 6 July 2012 158 ABS 7125.0 - Agricultural Commodities: Small Area Data, Australia, 2005-06 (Reissue) 159 Fruit Growers Tasmania Inc, http://www.fruitgrowerstas.com.au/, accessed 7 June 2012 160 Costas Berry Exchange, http://costaexchange.com.au/index.php/berries, accessed 5 July 2012
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The suggested action listed below to enable industry development in the fruit sub-sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Develop a strategy, in collaboration with major investors, for growth of the soft fruit sub-sector (strawberry, raspberry and blackberry).
Red meat
The red meat industry is a major contributor to the Tasmanian agricultural economy. Beef production dominates the red meat industry, accounting for approximately 75 per cent of total production, while lamb and mutton production contributes a further 25 per cent.161
Grazing of pasture and fodder crops is the main agricultural use of land across the northern region and red meat production is a significant industry in the region.162 There were 1.7 million sheep and cattle grazed on 2062 establishments in the northern region in 2006, producing $107 million in gross value of livestock slaughterings.163
Tasmanian Freight Equalisation Scheme statistics show that in 2008-09 approximately 329 000 sheep and lambs were sent to interstate buyers, mostly for finishing and processing.164
Major meat processors in the northern region are: JBS Swift - Longford Tasmanian Quality Meats - Cressy Lethborg Smallgoods - Launceston
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the red meat sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.24 Enable industry development in the red meat sub-sector through: Continuing to offer programs to help producers boost enterprise productivity and better meet market needs, such as through the Red Meat Industry Targets Program Phase Il.165 Red Meat Targets is an industry-directed program aimed at growing the red meat industry through research, development, extension and marketing projects. The program is now in its second five-year period of operation. Addressing access to skilled labour Trade promotion and branding, to take best advantage of factors such as Tasmania‟s hormone growth promotant (HGP)-free status, and grass-fed beef.
The suggested actions listed below to enable industry development in the red meat sub-sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Work with the meat industry to develop an overarching industry development plan
Assist industry with targeted marketing to develop domestic and export markets, leveraging the Tasmanian brand and environmental differentiation
161 Department of Primary Industries, Parks, Water and Environment, 2009, Tasmanian Red Meat Industry Profile 162 AK Consultants, op.cit. 163 ABS 7125.0, op.cit. 164 Australian Government, Tasmanian Freight Equalisation Scheme – 2008 Statistics – from 1 July 2008 to 30 June 2009, available at http://www.centrelink.gov.au/internet/internet.nsf/publications/tf_s.htm . 165 Red Meat Industry Targets Program Phase Il, http://www.dpipwe.tas.gov.au/inter.nsf/WebPages/LBUN-65F7L6?open, accessed 7 September, 2012
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Poppy
Tasmania is the only state in Australia producing poppies for processing. Currently, crops are grown in the north, north west, north east extending to the midlands, the central highlands and the Derwent Valley with potential to develop areas in the southern midlands. The Tasmanian poppy industry was established on a commercial level in the 1960s. It has grown rapidly from cultivating 4 000 hectares of poppies in 1987 to more than 30 000 hectares approved for cultivation in the coming season. At the same time productivity has increased dramatically. The average commercial yield active ingredients from poppy grown in Tasmania between 2007 and 2011 has been well above the yields achieved by other production areas such as Turkey, France and Spain. This is due to the large investments made into research and development for poppy varieties and production practices, resulting in Tasmania leading the way in poppy variety research and development. For example the Tasman poppy has recently been released which manufactures codeine in-field. At present, codeine poppies constitute a small percentage of the total crop, although its importance is expected to grow quickly.
Tasmania is the world‟s largest producer of thebaine poppies. In 2010 Australia produced 181 tonnes of thebaine equivalent, accounting for 78 per cent of global production166. In the same year, Tasmania produced 25 per cent of the world‟s production of morphine contained in concentrate of poppy straw and is the only producer of oripavine alkaloid contained in concentrate of poppy straw.167
The three processors present in Tasmania - Tasmanian Alkaloids (Westbury), GlaxoSmithKline (Latrobe) and TPI Enterprises (Cressy) - expect Tasmania to produce around 300 tonnes of concentrate alkaloid in 2012. Production is expected to double in the medium term. Over the next two to three years the three processors are positioned to make capital investments that could total up to $100 million.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the poppy sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.25 Enable industry development in the poppy sub-sector through:
Working with industry stakeholders to secure new investment in Tasmania and to undertake a review of the Poppy Advisory Control Board and associated regulatory environment.
Working with poppy industry processors and growers to develop an industry development framework and associated strategies.
166 Technical Report 2011: Comment on the Reported Statistics on Narcotic Drugs, International Narcotic Control Board (United Nations), p. 77 167 Technical Report 2011: Comment on the Reported Statistics on Narcotic Drugs, International Narcotic Control Board (United Nations)
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Vegetables
Tasmania‟s excellent growing conditions, together with longer ripening periods, produce high quality vegetables for the processing and fresh market. Vegetable production in the northern region is primarily focussed on the plains of the northern midlands and the red volcanic soils of the Dorset district.
ABS statistics show that the gross value of all vegetables produced for human consumption in the northern region in 2006 was $61.5 million, grown on 6911 hectares of land by 253 establishments.168
Moore‟s Vegetables at Scottsdale are one of the major vegetable producers and processors in the north east. The business includes a network of contract growers from across the northern region. Moore‟s main vegetable crops are onions, carrots, swedes, potatoes, parsnips, kabocha pumpkin and beetroot.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the vegetables sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.26 Enable industry development in the vegetables sub-sector through: Developing irrigation schemes in appropriate vegetable growing areas which could underpin industry expansion. Expanding the industry through trade promotion, branding and market development. Opportunities exist to increase supply of fresh vegetables into domestic markets during warmer months. While other areas in Australia can struggle with vegetable quality and shelf life in summer months, Tasmania continues to produce high quality products. Addressing access to skilled labour through the Tasmanian Skills Strategy.169 Industry groups note that existing farmers are skilled, but will need further training as irrigation schemes come on stream.170 Providing research, development, extension and education services to the industry. Growth opportunities have been identified in the fresh vegetable sector, especially in niche markets including baby leaf salad vegetables, seeds and ready-to-eat products. An increase in agricultural production also may provide the basis for increased, valued-added vegetable processing in the northern region. Examining alternative efficient business structures that will support competitiveness. Maintaining biosecurity controls, which is a high priority for industry to ensure the state‟s relative pest and disease-free status is maintained.
The suggested actions listed below to enable industry development in the vegetables sub-sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Attract potential investors who may be interested in investing either individually or in conjunction with existing operations.
Assist existing industry players to grow through investment in technology transfer and innovation within their operations.
Facilitate an increase in the amount of collaboration between existing industry stakeholders and the utilisation of other sectoral expertise.
168 ABS 7125.0, op.cit. 169 Skills Tasmania, The Tasmanian Skills Strategy: Themes and Actions 2009 - 2012 170 Department of Economic Development, Tourism and the Arts, 2012, Industry survey to support the Northern Regional Economic Development Plan, (Vegetables)
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Wine
Northern Tasmania has one of the state‟s most prominent wine regions, concentrated in four main areas: the West Tamar, the East Tamar, Relbia, and Pipers River. These areas are marketed under the umbrella of the Tamar Valley Wine Region, and a successful wine tourism route has been established.
The Tamar Valley Wine Region - the most mature viticulture district in Tasmania - has more than 20 cellar doors located along the wine route, stretching from Launceston to Rowella down the Tamar Valley, east to Pipers River and south to Relbia.171
As the wine industry in the northern region has developed, there has been an increasing amount of investment from international and national companies such as Kreglinger (Pipers Brook), Brown Bros (Tasmanian Estates, formerly Tamar Ridge Estates), Goelet Wine Estates (Clover Hill and Lalla Gully), Accolade (Bay of Fires) and Hill-Smith Family Vineyards (Jansz Tasmania and Dalrymple).
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the wine sub-sector in the northern region. These actions are already planned, committed and funded.
Action 6.27 Enable industry development in the wine sub-sector through: Supporting UTAS to undertake research into climatically suitable sites to expand wine production and to provide development and extension services to support industry growth. $400 000 has been allocated in 2012 from the Tasmanian Forests Agreement172 for this project which will be undertaken over the next two years by the Tasmanian Institute of Agriculture and the wine Industry Development Officer attached to Wine Tasmania. Facilitating investment in the wine industry through the Wine Industry in Tasmania - A Guide for Investors. This marketing document was developed by DEDTA as part of the Economic Development Plan. The booklet outlines the opportunity for investors in Tasmania as an ideal place to take advantage of the ideal climatic conditions and reputation for award winning wine making. Running the Tasmania Unbottled event, an annual roadshow that visits Melbourne, Sydney and Brisbane to promote Tasmanian wines to both consumers and the trade. Identifying a number of national and international wine industry events in 2012-13 which could be leveraged to undertake investment attraction activities. An analysis of the relative opportunities and prioritisation of events is currently underway. Bringing new players to the industry is expected to increase processing capacity, add new market and distribution channels and continue to strengthen the Tasmanian brand Developing a Wine Industry Workforce Plan in conjunction with Wine Tasmania and Workforce Planning Australia.
The suggested actions listed below to enable industry development in the wine sub-sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Support specific wine marketing and promotional activities under the Tasmanian Brand in addition to current marketing activities. Current legislation requires that all bottles containing Tasmanian wine are branded „Tasmanian Wine‟. Industry has identified that a competitive advantage could be gained by further promoting this branding requirement.
Consider the development of a vineyard expansion assistance program.
171 Wine Tasmania, http://www.winetasmania.com.au/, accessed 20 June 2012 172 Funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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Forestry and related products
The Tasmanian timber industry has been operating since the early 1800s and harvesting has been in operation in the same areas of the state for over two centuries. On the west coast and in the midlands, smaller areas of native forest timber occur where rainfall is over 1 000 millimetres annually and elevation is less than 1 000 metres.173 There is a broad range of ecologies in Tasmania which support plantations of hardwood (predominantly Eucalyptus globulus and E. nitens) and softwood (Pinus radiata) from sea level to 700 metres. Tasmania is the most forested state in Australia with 3.3 million hectares, or 50 per cent, of its land under forest cover.174
The Tasmanian forestry sector is an integrated industry that encompasses both native forest and plantation resource (both softwood and hardwood), the production of logs, woodchips, hardwood and softwood sawn timber, speciality timbers, pulp and paper production, veneer, fuel wood and other wood products. Principal export products from this industry sector are paper, woodchips, sawn timber products, timber veneer and forest management services. Tasmanian forest contractors and timber workers are also sought after by interstate logging and timber processing operations.
The industry is undergoing significant restructuring due to a change in the resource mix available. Hardwood timber derived from plantations will increase while logging of native forests is declining in the current high Australian dollar environment due to difficulties in moving residues. Thus, current focus is to find alternative timber processing residues - mill offcuts, flitch and sawdust - to be investigated for a wider range of uses other than woodchips. A variety of products with added value such as engineered timber products, bioethanol and biochar are among a range of options being considered in terms of their contribution to a sustainable business model in a modern forest and forest products industry.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the forestry and related products sector in the northern region. These actions are already planned, committed and funded.
Action 6.28 Enable industry development in the forestry and related products sector through:
Undertaking a scoping study for a collaborative business model for Tasmanian regional sawmillers175. $76 000 from the Tasmanian Forests Intergovernmental Agreement is being put toward a $136 000 study by the Tasmanian Sawmillers Association to assist six sawmills to identify value-adding opportunities. The investment supports family-owned sawmills to work together and find new value-adding opportunities within the forest industry. Some of the options to be considered include downstream processing of plantation timber into sawn product, as well as value-adding to forest harvesting and mill residues.
The suggested actions listed below to enable industry development in the forestry and related products sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Undertake a timber products value-add and off-island markets project. DEDTA, in partnership with Enterprise Connect, plans to undertake a project to support the establishment of a collaboration of furniture makers who are keen to value-add to local timber products and develop off-island markets.
Identify opportunities for the production of high end, value-added wood products and by-products.
Work with industry and private investors to develop a value adding process of veneer milling for lower grade logs.
173 Regional Planning Atlas (1947), Directorate of Industrial Development 174 www.forestrytas.com.au/sfm 175 Funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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Mining and mineral processing
Tasmania has a well-established history in mining and mineral processing. Coal has been mined in various areas of Tasmania from the earliest days of European settlement, with major deposits of black coal being discovered in the Fingal Valley in 1863. The completion of the railway line to St Marys in 1886 enabled the establishment of large scale coal mining in the Fingal Valley and this area has provided the majority of Tasmania's coal since that time. The Cornwall Coal Company is a major supplier of coal mined in Tasmania.
Northern Tasmania is also home to several major mineral processing operations. The Bell Bay industrial precinct hosts two of the state‟s major mineral processing plants, Bell Bay Aluminium (Pacific Aluminium Pty Ltd – Rio Tinto) and BHP Billiton - TEMCO, as well as the Ecka Granules aluminium powder factory.
Bell Bay Aluminium‟s smelter began production in 1955 as Australia‟s first aluminium smelter, in a joint venture between the Australian and Tasmanian Governments. Today it is one of the largest employers in the north of the state.176
“The smelter has a strong economic influence on northern Tasmania, creating employment, export earnings, payment of government taxes and charges, direct investment through purchase of goods and services, and community programs. The smelter contributed around $216 million to the local economy in 2011.”177
Tasmanian Electro Metallurgical Co Pty Ltd (TEMCO), owned by BHP Billiton, is a ferroalloy smelter located at Bell Bay which began production in 1962 and remains the only manganese ferroalloy plant in Australia. Ecka Granules, located adjacent the Bell Bay Aluminium plant, downstream processes raw aluminium to produce aluminium powder products used in a range of industries.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the mining and mineral processing sector in the northern region. These actions are already planned, committed and funded.
Action 6.29 Enable industry development in the mining and mineral processing sector through: Assisting stakeholders to collaborate on logistical bottlenecks and the potential sharing of processing infrastructure. Encouraging the development of new investment in downstream processing industries that value-add to commodities extracted from Tasmanian mines. Facilitating through Invest Tasmania, Proto Resources‟ proposal for a new nickel, cobalt and iron project at Barnes Hill near Beaconsfield in the Tamar Valley, which will attract approximately $70 million in investment and create 100 jobs. Facilitating through Invest Tasmania, Hardrock Coal Mining Pty Ltd‟s $40 million underground coal mine and associated infrastructure in the Fingal Valley. This venture aims to mine one million tonnes of coal per year with future plans to increase production.
The suggested action listed below to enable industry development in the mining and mineral processing sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Investigate the potential of utilising simulator technology to facilitate skills development.
176 Pacific Aluminium, http://www.pacificaluminium.com.au/60/Bell-Bay-Aluminium, accessed 3 July 2012 177 ibid.
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Tourism
The northern region has a number of outstanding tourism assets including extensive vineyards and wineries, the world heritage listed Brickendon and Woolmer‟s colonial era estates, and many heritage buildings and villages scattered across the region.
Natural attractions include the world renowned Bay of Fires and other spectacular east coast beaches, north east mountains that are the site for a number of mountain bike activity developments, and the Tamar River winding north from Launceston to the river mouth at Low Head. There are several recognised touring routes in the region such as the Tamar Valley Wine Route, the Trail of the Tin Dragon and Great Western Tiers Touring Route.
In the 12 months ending March 2012, the northern region attracted 372 700 interstate and international visitors or approximately 45 per cent of those visiting Tasmania.178 Launceston is the hub from which many day trips and longer regional visits emanate. Regional tourism is generally based on smaller operations and increasingly experience-based tourism that is linked to another support operation, for example farming or cheese making.
There are more than 550 mainstream tourism businesses operating in the region, made up of accommodation, attraction, tours and hire businesses. The contribution of tourism to the northern Tasmania economy and lifestyle has grown significantly in recent years. This growth has led to new developments such as the Launceston Seaport, Aurora stadium, Barnbougle Dunes and Barnbougle Lost Farm links golf courses, various hotel re-investments including the Country Club Casino and Hotel Charles, and Bridestowe Estate lavender farm, together with a dynamic activity sector including heli-flights, highland fishing, gourmet dining experiences and guided wilderness walks.
“The (tourism) market is becoming more sophisticated and demanding. The northern Tasmania region has been progressively transforming itself in response to these market demands but competition from other regions is strong and there is a need for new product, investment in transport capacity and facilities and better training to meet workforce needs.”179
There are also 506 hospitality businesses operating in the northern region. Some of these are accommodation providers counted above but many are in addition to the mainstream tourism industry and include restaurants, cafes, hotels, clubs, and caterers.
Hospitality is a major employer across the state, accounting for 10.2 per cent of the Tasmanian workforce. It is important to recognise that more than 70 per cent of hospitality service is consumed by locals and many hospitality operators are more reliant on local markets than visitation from tourists. However, hospitality providers contribute strongly to the appeal of the region for visitors.
Access to skilled employees is an on-going constraint to the industry with perceptions of hospitality as an interim career choice affecting supply of labour. An industry-wide workforce planning and development program is underway to attract and retain employees whilst creating opportunities for their continued professional development. The impacts of this are far reaching with improved service delivery and productivity leading to increased revenue and profitability for hospitality businesses.
Access to local produce is vital for the hospitality industry to operate effectively. High quality producers who find a suitable balance between supplying local businesses and fulfilling export market needs contribute strongly to the Tasmanian brand. With Tasmania increasingly recognised as a gourmet produce destination, hospitality businesses require opportunities to access this produce prior to the export market.
178 Tourism Tasmania, Tasmanian Visitor Survey, http://www.tourismtasmania.com.au/research/visitors, accessed 5 September 2012 179 Northern Tasmania Development, 2011, Northern Tasmania Regional Strategy, op.cit., p.22.
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The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to enable industry development in the tourism sector in the northern region. These actions are already planned, committed and funded.
Action 6.30 Enable industry development in the tourism sector through: Investing in the development of cycling infrastructure through the Meander Valley, Launceston and Dorset Councils. Tourism Tasmania is supporting Northern Tasmanian Development in the development of a Mountain Bike tourism project to position Northern Tasmania as a world-class mountain bike destination.180 Enabling a strategic approach to destination management through the recently established, industry-led Northern Tasmania Regional Tourism Organisation (RTO) and East Coast Regional Tourism Organisation. These RTOs will enable a strategic approach to tourism management of the region going forward. The RTO is a partnership of industry, state and local governments, and the Tasmanian Government, through Tourism Tasmania, has committed $260 000 per annum over three years to the program. The RTO will develop a regional tourism strategy, regional marketing strategy and industry and destination development programs. Enabling the provision of highly relevant and useful research data to the Tasmanian tourism industry and other businesses, so they can successfully plan and implement business and marketing strategies, though Tourism Tasmania‟s new research program, the Tourism Information Monitor. Maximising Tasmania‟s tourism potential by enhancing historic heritage and arts offerings and its appeal to current and future markets through Tourism Tasmania‟s Arts Tourism Strategy 2012 – 2015181 and Historic Heritage Tourism Strategy 2012 –2015182. These strategies aim to describe how heritage and arts tourism stakeholders can build a stronger and more viable tourism industry for Tasmania through improved products, strengthened interpretation, promotion and packaging and greater collaboration amongst stakeholders. This includes leveraging the World Heritage Listing of convict sites around Tasmania including Woolmers and Brickendon Estates in northern Tasmania. The Arts Tourism Strategy includes the use of smartmap Tasmania, a web site which connects visitors with these local artists through a wide range of professional, high quality arts experiences in Aboriginal arts and craft, craft and design, music, literature, museums and collections, performing arts and visual arts. Raising the profile of Tasmania as a destination for golf. Tourism Tasmania is an active sponsor of the Great Golf Australia project, which is a national collaboration between the major golf courses of Australia, Tourism Australia and other state government agencies to market internationally Australia‟s six courses included in the Top 100 courses in the world, two of which, Barnbougle Dunes and Barnbougle Lost Farm, are in North East Tasmania. Stimulating industry growth through the Australian Government‟s Tourism Industry Regional Development Fund. The Australian Government has committed $48.5 million over four years to support tourism industry development projects in regional Australia. The new Fund will support projects that align with Tourism 2020, help attract tourists to regional areas and encourage them to stay for longer. The new fund is a partner program to T-QUAL Grants, but it will specifically target regional Australia. Stimulating sustainable economic growth in the region‟s tourism industry through the Australian Government‟s T-QUAL Grants. T-QUAL is a competitive merit-based grants program aimed at stimulating sustainable economic growth in the Australian tourism industry. It is expected that a further round of T-QUAL Grants will be announced in February 2013.
180 Six Dot Consulting (2011) Mountain Bike Tourism Potential in Northern Tasmania, Northern Tasmania Development, Launceston 181 Tourism Tasmania, Arts Tourism Strategy 2012-2015, http://www.tourism.tas.gov.au/publications/arts, accessed 22 August 2012 182 Tourism Tasmania, Historic Heritage Tourism Strategy 2012-2015, http://www.tourismtasmania.com.au/publications/heritage , accessed22 August 2012
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Implementing the Tasmanian Hospitality Industry Strategic Plan and industry workforce plan. DEDTA and the Tasmanian Hospitality Association (THA) are jointly implementing the Tasmanian Hospitality Industry Strategic Plan. The plan states:
“The THA must actively promote the industry, its value and challenges, and work with government to ensure that industry performance, productivity and profitability drives jobs, reinvestment and new investment. Promotion of the benefits and opportunities associated with the industry is important to repositioning the industry as a positive and valid career choice.” 183
The Tasmanian Hospitality Industry Strategic Plan aims to: o Improve recruitment, induction and retention of hospitality workers o Build skills to meet the needs of the customers o Promote hospitality career pathways in schools o Develop a training culture within the hospitality industry
Delivering initiatives in partnership with the THA, DEDTA and Skills Tasmania with regional stakeholders to: o Identify key focus areas for skills and training needs, incentives and funding as per the Tasmanian Hospitality Industry Skills Plan o Identify key areas where industry can reduce the attrition of workers as recommended in the Hospitality Industry Workforce Retention Action Plan o Work with Registered Training Organisations and industry to address regional inconsistencies in training and skills outcomes for Tasmanian hospitality graduates o Develop an Employment Portal that will promote hospitality careers and provide a recruitment tool for hospitality employers to both advertise and fill job vacancies. o Develop and deliver regional workshops, targeting hospitality owners and managers, aimed at industry profitability o Partner with regional VET in Schools teachers and industry to implement the Workforce Development Initiative. o Provide on-going support to the Liquor Accords to address alcohol-related, anti-social behaviour.
The suggested actions listed below to enable industry development in the tourism sector in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate the expansion of the „Tuckerbox Trail‟, a newly established north-east farm visit food trail.
Investigate opportunities to hold events which promote niche local products such as a Truffle Festival.
Further develop heritage tourism and the Convict Story marketing strategies, including a convict related tourism route to include Brickendon Homestead, Woolmer‟s Estate, and Derby Heritage Town.
Implement the Launceston City Council‟s draft Launceston Strategic Tourism Plan. The plan has as a key goal facilitating tourism investment in Launceston, particularly the development of inner city heritage buildings, creating a distinctive tourism precinct in Launceston by drawing together a range of tourism experiences and services which build on the heritage assets of the city.
Identify pathways through education and training that can be used to encourage the uptake of hospitality as a career.
Promote and facilitate sector involvement in workforce planning and development networks.
Further develop enterprise digital enablement, regional content and digital assets.
183 Creating Preferred Futures, 2012, Tasmanian Hospitality Industry Strategic Plan, report commissioned for the Department of Economic Development, Tourism and the Arts (DEDTA) and the Tasmanian Hospitality Association (THA)
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Facilitate development of customised touring companies and packages to meet the interests and needs of the individual visitor/customer.
Support further developing nature-based tourism experiences featuring iconic natural attractions, such as Bay of Fires and the Furneaux islands.
Provide a future round of the digital ready program specifically for tourism operators.
Promote the Hospitality Scholarship program to encourage excellence and career opportunities.
Examine ways for the THA to work closely with the Food Industry Advisory Committee and Brand Tasmania to more actively promote and improve access to Tasmanian produce and products.
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Objective 7 Attract and facilitate investment
Investment attraction and facilitation focus on lead projects that have the potential to transform a supply chain and in particular on opportunities that leverage Tasmania‟s advantages and resource endowments.
The Tasmanian Government uses a proactive approach to major investment attraction and facilitation that includes: identifying significant growth opportunities in the key industry sector value chains an integrated investment attraction, facilitation and retention process with dedicated project teams and account management a focus on lead projects that have the potential to transform a supply chain and that leverage Tasmania‟s advantages and resource endowments.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to attract and facilitate investment in the northern region. These actions are already planned, committed and funded.
Action 7.1 Implement Invest Tasmania
Invest Tasmania has been established to lead and coordinate investment attraction and act as a “one stop shop” for investors in major investment projects.
Action 7.2 Deliver investment attraction initiatives
Develop investment attraction promotional collateral, facilitate inward investment missions and undertake a range of interstate and overseas attraction missions, targeted at supporting investment activity in Tasmania‟s priority sectors.
Action 7.3 Provide dedicated case management for major investment
Invest Tasmania case management teams work with new or existing investors, government agencies and infrastructure providers to smooth the delivery of major investment projects.
Action 7.4 Develop an Invest Tasmania map
Invest Tasmania will establish an online Invest Tasmania Map of key investment projects that are planned or underway.
Action 7.5 Develop a Major Investment Approval Guide
Invest Tasmania will develop a guide to navigating processes for project approval and access to key infrastructure services for major investment projects.
Action 7.6 Implement the $5 million Tasmanian Government Innovation and Investment Fund
From this fund, $2 million has been allocated for the attraction of major investment and $3 million has been allocated to assist Tasmanian business owners invest in innovative projects that will significantly improve their sustainability, performance, growth and productivity, generating new investment and creating sustainable high quality, skilled jobs that help diversify and strengthen Tasmania‟s regional economy.
Action 7.7 Provide appropriate support for projects for investment attraction and industry expansion
This is being done through developing and maintaining a key industrial sites register to ensure that the region is investment ready.
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Action 7.8 Reduce barriers to investment through streamlined development assessment processes and the implementation of new planning schemes
In the northern region, Northern Tasmania Development (NTD), with Tasmanian Government support through the Regional Planning Initiative, has produced the Regional Land Use Strategy of Northern Tasmania which seeks to reduce barriers to investment through streamlined development assessment processes and the implementation of new planning schemes.
Action 7.9 Undertake government programs and initiatives that ensure that land use reforms, infrastructure, businesses and people are investment-ready
The emphasis is on helping new small and medium-sized investors, including existing businesses that are looking to expand, to navigate the development path, particularly in relation to the various government and related entities.
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Goal Three To improve the social and environmental sustainability of the economy in the northern region
The Tasmanian Economic Development Plan’s vision is for improved prosperity through successful economic development that is both socially and environmentally sustainable. This is sometimes referred to simply as sustainability or the triple bottom-line approach.
Sustainability recognises the interdependence of economic, social and environmental well-being, focuses on equity and fairness, and means that economic growth is not undertaken at the expense of foregone social sustainability and environmental value.
Focusing on our social and environmental strengths to build a resilient regional economy in turn attracts people to live, work, study, visit and invest in the region.
Residents, customers and investors are seeking higher standards and evidence of sustainability and are increasingly willing to have the cost impacts of sustainability reflected in the price of goods and services.
Business can benefit from sustainability strategies through creating new products, attracting high-end customers, making the most of increased investment opportunities, reducing energy costs, increasing water conservation, and attracting and retaining committed staff184.
By 2021 the region aims to become economically secure, socially sustainable and environmentally sustainable by: fostering community participation in decision-making and implementation, and developing collaborative networks within communities. developing a sustainable livelihood for the most disadvantaged people in the community and building community-based assets and social enterprises in order to achieve greater social inclusion. developing a sustainable environment by assisting business, industry and communities to reduce their environmental footprint. recognising the value of natural ecosystems to both our well-being and that of the regional economy and promoting the worth of environmental sustainability.
Objectives
The following objectives indicate the levers that government can influence to improve the social and environmental sustainability of the economy in the northern region:
Objective 8 Improve social sustainability Objective 9 Improve environmental sustainability
184 Tasmanian Government, Economic Development Plan, Goal 3, August 2011
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Objective 8 Improve social sustainability
There is a growing acceptance that the strategies of the past designed to simultaneously generate wealth and wellbeing have not worked for all, with some people and places continuing to face high levels of social exclusion and economic disadvantage.
New forms of social exclusion have begun to emerge most prominently associated with ageing, mental illness, security of supply of food, water and energy, and the digital divide for those not able to access the connectivity provided through the NBN. These have raised broader concerns about whether we have the balance right between our key social, economic and environmental settings. 185 The claimed „loss of community‟ is an example of how this concern is being expressed across communities, and was evidenced in the community conversations.
Economic development contributes to improved social sustainability and social inclusion by creating employment and improving participation rates and skill levels, all of which help reduce poverty and inequality. Different forms of work also enable community members to gain much fulfilment and satisfaction through that work, both paid and unpaid.
Currently, not all Tasmanians are sharing in our state‟s prosperity, and economic engagement is lower than that of other Australian states.186 Building the capacity of individuals to face these challenges and to develop their potential is a central and essential part of this Northern Regional Economic Development Plan.
Governments working together with individuals and the community will give Tasmanians the best opportunities to participate in their community and to contribute to the economy and society.
The unemployment rate and the workforce participation rate are two interrelated measures which together can indicate the amount of engagement in economic activity at a regional level. The unemployment rate is defined as the percentage of individuals in the labour force without employment; the participation rate is defined as the share of those aged over 15 years who are participating in the labour market. Labour supply in a region is influenced by both the labour force participation rate and the unemployment rate.
As can be seen from Figure 16, the unemployment rate in the northern region generally trended down from 2005. However, since 2009 the rate has climbed steadily to be 6.5 per cent in the year to June 2012. The more recent increase most likely reflects the decline in employment in the forestry and construction industries in the region, in particular.
185 Adams, D., A Social Inclusion Strategy for Tasmania, 2009, Social Inclusion Commissioner, Social Inclusion Unit, Department of Premier and Cabinet 186 Tasmanian Government, Economic Development Plan Overview, August 2011
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Figure 16 – Unemployment rate, Tasmania and northern region 2005-2012187
In terms of workforce participation, in the year to June 2012 the northern region‟s participation rate was 62.3 per cent, compared with 60.6 per cent for the State. This compares with rates for the northern region of 62.7 per cent in June 2011 and 62.2 per cent in June 2010.188
Tasmania‟s participation rate is significantly lower than the rate for Australia as a whole, in part due to the state‟s older population. Analysis undertaken by the Department of Treasury and Finance in 2005 suggested that Tasmania‟s older population structure accounts for around 40 per cent of the difference between the Tasmanian and national participation rates.189
In year-average terms, the northern region‟s participation rate returned to the level it was at prior to the GFC and by mid-2011 was higher than the rate for the southern region and significantly higher than the rate in the north west (see Figure 17). The northern region‟s participation rate has remained relatively flat because there has not been a discouraged job seeker effect where people losing jobs or unable to find jobs have left the labour force. Thus, the unemployment rate has been increasing as a share of a relatively unchanged labour force.
187 ABS, Labour Force, Australia, Detailed, Cat No 6291.0.55.001 188 ibid 189 Tasmanian Government, Tasmanian Budget 2008-09, Chapter 2: The Tasmanian Economy
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68.0 Regional participation rates
66.0
64.0
62.0
60.0 (year (year average original)
58.0 Percentage Percentage working of age population
56.0 Jun 2005 Jun 2006 Jun 2007 Jun 2008 Jun 2009 Jun 2010 Jun 2011 Jun 2012 Southern Northern North-West Tasmania Australia
Figure 17 – Regional participation rates, 2005-2012190
As the participation rate is an indicator of labour supply in the economy, it is also an important determinant of economic growth potential in the long-term. Even with no inward migration, an increase in the labour force participation rate can increase the supply of labour to the market.
To lower the unemployment rate and increase the workforce participation rate are major goals of government, as this not only contributes to economic growth but also supports social inclusion and social sustainability.
“High levels of social inclusion are correlated with high levels of productivity, economic growth and sustainability”.191
In terms of government intervention, the Australian Government makes the major contribution to increasing workforce participation and improving skills levels through its labour market and skills development programs. The Tasmanian Government‟s activity complements that of the Australian Government. For example, the Tasmanian Adult Literacy Action Plan192 is a mechanism for providing young people and adults with the literacy skills needed to fully participate in their family life, the community, learning and employment.
Through Skills Tasmania‟s Rapid Response Skills Initiative, the Tasmanian Government is providing support to people across Tasmania to help them upskill and reskill to gain employment where they have lost their jobs because of retrenchment, closures or company downsizing. The program is available state-wide and replaces the North West and Northern Tasmania Skills Initiative. The program will provide funding that complements other assistance programs to gain the best possible employment outcomes for retrenched workers and their families. In addition to immediate access to employment services, retrenched workers may also be able to access training opportunities under Skills Tasmania‟s competitive program. Training places are available to ensure workers have the skills for new work opportunities now and in the future.
Skills development is addressed in detail in Goal One of this Northern Regional Economic Development Plan and support for businesses, through which employment growth is primarily generated, is outlined in Goals One and Two.
190 ABS, Labour Force, Australia, Detailed, Cat No 6291.0.55.003, 2011 191 Adams, D., op.cit. 192 Tasmanian Government, Tasmania’s Adult Literacy Action Plan 2010-2015
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In conjunction with the initiatives in Goals One and Two, this section of the Northern Regional Economic Development Plan describes the actions being undertaken by government to reduce unemployment and increase workforce participation in the northern region through access to micro-finance, building individual capacity to participate in the labour market, and contributing to community development through the facilitation of social enterprises.
Social enterprises are businesses whose entire profits are reinvested in the enterprise or redistributed to develop services and resources that are often unmet in a community. Social enterprises tap into the knowledge, ability and energy of people on low incomes and communities and can provide the skills and confidence needed for people to be able to transition back into the mainstream workforce.
More than half of Tasmanian social enterprises are in the education and training sector, with most focusing on adult and community education. The next largest section of social enterprises, 44 per cent, focus on arts and recreation services, with a further 31 per cent based on social assistance services.
An example in the arts area is the Tasmanian Regional Arts project Branching Out193. In partnership with the Institute for Regional Development at UTAS Cradle Coast and the Westpac Foundation, the Branching Out project has investigated and supported social enterprise development in regional Tasmania through the arts, including a pilot group, Interweave Arts, in Launceston.
Sport and Recreation Tasmania works to support and facilitate opportunities for children, indigenous people, and people with disability to participate in sport, recreation and physical activity, thus providing a range of social inclusion and economic benefits, as well as health and environmental benefits.194 The Wilderness Program is an outstanding example, which develops the skills and personal attributes of people considered to be at risk or marginalised.
All local governments in the region acknowledge the significance of social inclusion within their respective strategic plans.195 The councils have identified the development of strong community partnerships that build capacity, enhance wellbeing and improve quality of life as a crucial action to delivering on social sustainability outcomes. The councils aim to achieve this through the delivery of existing and improved services to their communities.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to improve social sustainability in the northern region. These actions are already planned, committed and funded.
Action 8.1 Assist small businesses through the Micro Business Loan Fund
The Micro Business Loan Fund provides capital funding through small interest free loans of up to $3 000 - unsecured and interest-free - for low income individuals to establish or grow a small business, including a social enterprise. The program is delivered by the No Interest Loan Scheme (NILS) , which works with Enterprise Centres Tasmania to assist applicants prepare a business plan for their proposal. The program also supports these business operators by providing information on basic compliance and other requirements to start a business.
Action 8.2 Offer a Social Enterprise Loan Fund
The $3 million Social Enterprise Loan Fund (SELF) encourages and supports the establishment of social enterprises by the provision of an affordable loan product, in the absence of alternatives in the commercial loan sector. The fund is to assist social enterprises in Tasmania to establish or diversify commercially viable ventures that have the principal objective of delivering social
193 Tasmanian Regional Arts, http://www.tasregionalarts.org.au/ , accessed 22 August 2012 194 Sport and Recreation Tasmania, http://sportandrecreation.tas.gov.au/sportrectas, accessed 22 August 2012 195 For example: Launceston City Council, Strategic Plan 2008/2013, Priority Area 3: Social and Economic Environment, Goal: Promoting a healthy, prosperous and positive community, Strategy 3.6 Indicative Action: “Develop a Community Plan that includes consideration of impacts of social disadvantage and identifies agencies responsible for addressing social needs”.
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and economic benefits to the community. The fund provides loans from $15 000 to $150 000 at a discounted interest rate.
Action 8.3 Promote the Community-Placed Social Enterprises program
The Community-Placed Social Enterprises program supports and encourages the development of social enterprises in low socio-economic communities. It involves using business mentors from Enterprise Centres Tasmania and qualified trainers to work with community members in order to develop a business plan for a new social enterprise within the community. The training is delivered in targeted communities through participating Neighbourhood/Community Houses. Participants gain a Certificate IV in Small Business Management upon completion of the program.
Action 8.4 Facilitate the Social Enterprise Capacity Building program
The Social Enterprise Capacity Building Program targets Tasmanian social enterprises experiencing difficulty accessing appropriate and affordable financial products and services to support them through a variety of initiatives, including: a) The Crunch program, a business development program run by Victorian-based Social Traders Ltd, which combines a rigorous business planning process, intensive support, and the opportunity to pitch for potential social finance to turn a social enterprise concept into reality. b) Financial Management for Social Enterprises, a one-day course for social enterprises offered by the Department of Economic Development, Tourism and the Arts (DEDTA) in conjunction with the Davidson Institute, is an education initiative of Westpac Banking Corporation. c) Bridges out of Poverty, and Train the Trainer, a suite of programs designed to develop communication skills specific to the needs of low socio-economic communities, and to gain both a common and a deeper understanding of the development needs and constraints of social enterprises. d) The Tasmanian Leaders Program, for which DEDTA is offering two scholarships of up to $5 500 each. This will cover the employer/sponsor fee for one successful applicant working in social enterprise and another in community development, enabling them to undertake this program to develop them as business and community leaders.
Action 8.5 Facilitate the Tasmanian Social Enterprise Network
The Tasmanian Social Enterprise Network (TSEN) is a collaboration of stakeholders that supports the development of social enterprises in Tasmania. TSEN comprises more than 200 members from commonwealth, state and local governments; peak bodies and support organisations; community organisations, financing institutions, academia and social enterprises. TSEN is coordinated by the Social Enterprise team within DEDTA.
Action 8.6 Support the Sirolli Enterprise Facilitation project at George Town and Scottsdale
The Tasmanian Government has committed $950 000 to support four communities across Tasmania being impacted most by the forestry industry transition, including Scottsdale and George Town in the northern region. Community development pioneer Dr Ernesto Sirolli is helping grow the skills and expertise of workers in these communities so that they can find new jobs and diversify their economies.
Action 8.7 Develop and offer training in the Social Entrepreneur e-kit
The Tasmanian Government assists social enterprises which wish to start a business for the purpose of achieving public community benefits, through a business guide called the Social Entrepreneur e-kit.
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Action 8.8 Implement skills development initiatives – the Tasmanian Adult Literacy Action Plan and 26TEN
The Tasmanian Skills Initiative assists people to transition from declining industry sectors. The Tasmanian Adult Literacy Action Plan focuses specifically on communities, investing in people and programs to raise awareness and understanding of adult literacy. It provides support and programs for people to improve adult literacy in their workplace and in their community.
Launched in October 2012, 26TEN is a new network of organisations and individuals working together to improve adult literacy in Tasmania.
Action 8.9 Promote the Settlement Grants program
The Department of Immigration and Citizenship, through the Settlement Grants Program (SGP), provides funding to assist humanitarian entrants and migrants settle in Australia and participate equitably in Australian society as soon as possible after arrival. The SGP is targeted to deliver settlement services to humanitarian entrants, family migrants with low levels of English proficiency and dependants of skilled migrants in rural and regional areas with low English proficiency. For the 2012–13 financial year, approximately $39 million is being made available under the SGP.
Action 8.10 Promote opportunities for adult literacy and numeracy initiatives and projects through the Adult Literacy Investment Fund and the Australian Governments Workplace English Language and Literacy Program.
The Adult Literacy Investment Fund forms part of the Tasmanian Government‟s Tasmanian Adult Literacy Action Plan 2010-2015. This fund provides $1 million a year over four years to support the following initiatives in workplaces and communities:
Targeted literacy training programs to be run in communities by LINC Tasmania and other community and training organisations. An Employer Pledge and Community Grants program, where employers and community organisations receive funding to help improve the literacy skills of their employees and their families.
The principle aim of the Australian Government‟s Workplace English Language and Literacy Program is to assist organisations to train workers in English language, literacy and numeracy skills. This funding is available on a competitive grants basis to organisations for English language and literacy training linked to job-related workplace training and is designed to help workers meet their current and future employment and training needs.
Funding is available for three types of projects - training projects, resource and strategic projects.
Action 8.11 Facilitate social enterprise development
DEDTA is providing local facilitators to support communities being impacted by structural changes such as those occurring in forestry and support the growth of social enterprise within the region, identifying linkages and partnerships by promoting initiatives including: The Social Enterprise Development and Investment Fund (SEDIF) - the Australian Government established SEDIF to improve access to finance and support for Australia‟s social enterprises to help them grow their business, and increase the impact of their work in their communities. Social Enterprise Finance Australia (SEFA) Innovative Lending - established to provide finance to social enterprises on commercial terms together with targeted business advice and support with a commitment to helping social enterprises build their capacity to manage debt and
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become financially sustainable over time. SEFA seeks to create positive social and environmental impact as well as financial returns. The SEFA loan fund focuses on three broad areas of social impact including community, environment and indigenous. It also supports developing social enterprises through an incubator fund. Tasmanian Community Fund which provides grants to not for profit organisations aiming to improve the social, environmental and economic wellbeing of the Tasmanian community. Tasmanian Community Foundation grant program which awards grants to voluntary organisations in Tasmania, with priority given to minority and disadvantaged groups that are creative, and can demonstrate sustained community development. Volunteers Program - Volunteering Tasmania Inc. is a community based not for profit organisation that assists with the provision of consultancy, resources and information for volunteers to support organisations to build capacity and achieve their aims and objectives. Diversity and Social Cohesion Program assists not for profit community organisations to turn plans into reality. Plans must promote respect, fairness and sense of belonging for everyone.
The suggested actions listed below to improve social sustainability in the northern region will be evaluated, prioritised and, where appropriate, implemented by government. Implement the Jobs for Life program, subject to satisfactory pilot outcomes in the southern region. Jobs for Life is a 39-week pilot employment program for ten young unemployed people with structured support by elders/parents. The program, which is fully funded by DEDTA, will be jointly delivered by JLD Restorative Practices and Whitelion. Whilst the program runs from July 2012 to April 2013 and will be trialled in the south of the state initially, there is a potential for extension to the north of the state in the future. Develop and implement a skills development program for social enterprises Support volunteering through the Pathway Toward Employment program Leverage existing programs to support social enterprise development Identify opportunities to support service providers working with unemployed families Leverage existing programs to support social enterprise hubs and social enterprise development.
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Objective 9 Improve environmental sustainability
Our environment underpins our economic activity. It provides natural resources including water, soil, timber and minerals. It also provides diverse recreational and leisure opportunities and is central to our regional tourism industry. Our outstanding environmental resources provide a key competitive advantage to northern Tasmania.
“Sustainable and innovative use of the region‟s abundant natural resources will create a long-term sustainable competitive advantage for northern Tasmania and through this increase resilience and community wellbeing.”196
Environmental sustainability recognises that the resources required to continue and maintain economic growth are linked to the carrying capacity of the environment and describes how biological systems remain diverse and productive over time while improving the quality of human life.
The Economic Development Plan, through the adoption of a triple-bottom-line approach to economic development, seeks to leverage the natural advantages Tasmania possesses to achieve economic prosperity while ensuring quality outcomes for the environment.197 These principles also underpin this Northern Regional Economic Development Plan.
Northern Tasmania has a unique natural environment. It is recognised nationally and internationally for its beauty, biodiversity, and natural resources.
“Northern Tasmania‟s biodiversity asset includes terrestrial, marine and freshwater species and communities. The rich diversity of the region‟s physical environment, including landscapes, soils and climate, has given rise to a diverse array of plants, animals and vegetation types. Six of Tasmania‟s nine bioregions occur in northern Tasmania”.198
Importantly, the northern region has many available high quality resources that support its primary and secondary industries. Much of the region‟s economy has its origins in harvesting and processing agricultural and fishing produce, timber and minerals.
Industries that rely directly on the natural environment make up a significant component of the northern Tasmanian economy today. These are principally export industries including many that are located away from the major towns. Lots of them are small businesses, serviced by local suppliers, and employing local staff. The farming, fishing, forestry, tourism and other natural environment-based sectors are key industries in this category.199
Ensuring environmental sustainability that endures is an underlying principle for many large enterprises in the region that have adopted environmental best practice as part of their corporate charter.
“Our reputation as a sustainable business depends on our ability to demonstrate sound environmental management practices and stewardship of our natural resources. Everyone working at the (Bell Bay Aluminium) smelter needs to be aware of the site‟s interactions with the surrounding environment and to understand that we all have a role to play to minimise our impact on and protection of the environment for future generations.”200
As well as being important to individual enterprises, caring for the natural environment and using natural resources in a sustainable way are crucial to the wellbeing of local communities and the region as a whole.
196 Northern Tasmania Development, 2009, North Plan: Towards a Regional Planning Strategy, Launceston 197 Tasmanian Government, 2011, Economic Development Plan 198 Northern Tasmania Natural Resource Management Committee 2010, Northern Tasmanian Natural Resource Management Strategy, Launceston 199 Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, op.cit., p.85 200 Rio Tinto Aluminium (Bell Bay) Limited, 2010, Bell Bay 2011 Sustainable Development Report
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Economic development co-existing with the effective management and maintenance of our biodiversity and natural heritage is evidence of environmental sustainability. The SenseT201 program will showcase Tasmania‟s environmental credentials and improve productivity and environmental performance in the economy. Sensors use real-time information to help us solve everyday problems. The SenseT sensor network will cover the whole of Tasmania and will combine historical and spatial data from government agencies, utilities and research bodies with real-time sensing data from CSIRO's South Esk sensor. Numerous possibilities will arise from such a network. For example, an individual sensor on a farm could be linked to others in the area and used for better use of irrigation and fertilisers, early warning on frost, or optimising harvesting decisions. It could also be used to provide consumers at the supermarket with information on where their food has come from. Government agencies could also use information from this same sensor network to monitor temperature or rainfall for weather reporting, to provide information for water catchment management, or for flood and fire alerts.
Climate change
An important emerging issue when considering the environmental sustainability of the northern region and the industries that depend on and interact with the natural environment, is the impact of long term climate change. Even with a reduction in greenhouse gas emissions, the projected impacts of global climate change over this century will potentially create many risks, as well as opportunities.202
The expected climate change impacts for northern Tasmania include more extreme weather events, hotter and drier summers, warmer winters with increased rainfall and rising sea levels leading to some coastal inundation.203 It will involve a change in average temperature and rainfall, as well as more frequent instances of frosts, heat waves, droughts and floods.
Climate change has the potential to impact upon a wide range of activities, services and industries in the region and could lead to changes in crop and agricultural industry composition over decades to come.
However, with climate change forecasts suggesting manageable impacts in the region, and in the national context the overall impacts are likely to be less significant in Tasmania, it is foreseeable that northern Tasmania may be an attractive destination for those seeking refuge from harsher climates, and for industry that is dependent on reliable water or relatively more stable weather patterns. A slight warming of climate in the short to medium term may also create opportunities for specialist agriculture, and improve the performance of agricultural products susceptible to frost, such as grape crops in specific districts.204
A carbon-constrained economy
As governments and industry adopt measures to deal with the impacts of climate change, including pricing carbon, the northern Tasmania region will need to adapt to a carbon constrained economic environment.
The Tasmanian Government has drawn on information from the Tasmanian Wedges Report and advice of the Tasmanian Climate Action Council to develop an action plan to help reduce Tasmania‟s emissions and to businesses dealing with the cost of living increases.205
201 Part funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA) 202 Northern Tasmania Development, Regional Land Use Strategy of Northern Tasmania, op.cit., p.111 203 Climate Futures for Tasmania, http://www.dpac.tas.gov.au/divisions/climatechange/adapting/climate_futures , accessed 8 August 2012 204 ibid. 205 Tasmanian Action Plan to Reduce Emissions, Tasmanian Climate Change Office, DPAC, (2012) http://www.dpac.tas.gov.au/divisions/climatechange/what_the_government_is_doing/tasmanias_action_plan_to_reduce_emissions accessed 16 August 2012
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The action plan outlines six priority actions and details longer-term priorities as identified in the Tasmanian Wedges Report:
Priority action area 1: Working with our largest industries Priority action area 2: Generating more energy from renewable sources Priority action area 3: Helping Tasmanians use their energy wisely Priority action area 4: Improving the energy efficiency of our buildings Priority action area 5: Understanding our forest carbon Priority action area 6: Considering short term goals to reduce our emissions.
The introduction of a price on carbon is a significant factor influencing business growth and the competitiveness of our industries. There is no doubt that some businesses will face challenges as a result of carbon pricing. It also poses a risk to competitiveness for high carbon emitting businesses or those that are energy-intensive, such as mineral processing industries located at Bell Bay, where international competitors currently do not have similar schemes in place.206
However, there will also be many opportunities that a low-carbon economy will provide. Renewable energy, for example, in which Tasmania has a strong competitive advantage, will play a vital role in de-carbonising our economy through reducing reliance on fossil fuels. High levels of renewable energy production expertise in northern Tasmania are considered to be sources of future advantage given the predicted rise in global energy costs and federal government carbon tax initiatives.207
Similarly, the timber industry will have a role to play in Tasmania‟s low carbon economy, and northern Tasmania has large tracts of both native and plantation forests and considerable expertise in the processing and manufacturing of timber products. Trees are an excellent, renewable source of carbon sequestration. Sawn timber products also continue to retain carbon, and the life of timber products can be decades-long.
“Re-establishing forests on cleared land can increase carbon storage in the landscape and provide many other benefits, including wildlife habitat, improved water quality, reduced soil erosion and shelter for livestock, as well as providing wood products for society”.208
The challenge for the northern Tasmanian sawmilling industry is to optimise the use of timber residue: sawdust and offcuts that are generated as a result of the milling process. While traditionally the largest market has been woodchips for the production of paper, research is on-going into engineered timber products which utilise residue and also the downstream benefits from producing biochar.209 However, any use of forests to reduce net emissions needs to avoid undesired impacts, such as competition with food production or negative impacts on biodiversity and water quality.
Environmental regulation
The regulatory aspects of environmental management have a significant effect on the economic landscape of the region. Perhaps the two most significant areas are land use planning through local government and biosecurity risk management through the Biosecurity Division of the Department of Primary Industries, Parks, Water and Environment (DPIPWE).
DPIPWE is the lead government agency responsible for environment and sustainability regulatory issues, including regulation of the Environment Protection Agency, water quality, environmental flows, land conservation, and pest and disease management.
DPIPWE is also responsible for implementation of the Environmental Management and Pollution Control Act 1994 (EMPCA)210 which is the primary environment protection and pollution control legislation in Tasmania.
206 Tasmanian Government, 2011, Economic Development Plan 207 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit.., p.22 208 Australian Government, Climate Commission, The Critical Decade, Tasmanian impacts and opportunities 209 ibid. 210 Department of Primary Industries, Parks, Water and Environment, Environmental Management and Pollution Control Act 1994 (EMPCA), http://epa.tas.gov.au/policy/empca, accessed 5 September 2012
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Councils within the northern region have identified environmental sustainability initiatives within their strategic planning efforts, focusing on protecting the environment while utilising sustainably the available resources. Some have identified more specific environmental projects. However, regulation at a local level is delivered through the respective local government‟s land use planning schemes which detail the activities can be undertaken within land use areas.
DPIPWE has some of the world's most stringent biosecurity regulations. Strict requirements are in place to manage the risk to the State's plants, crops and animal industries from introduced pests and diseases - from both overseas and the Australian mainland. The work of the Biosecurity Division protects industry from pests and disease that could potentially devastate industry and reduce its economic returns to the state.
Regional Natural Resource Management (NRM) strategy
The Natural Resource Management Act 2002211 (2009 Amendments) is the driver for the development and on- going review and implementation of the regional natural resource management (NRM) strategy.212 This strategy includes assessment of the region‟s natural assets, their condition and minimum thresholds for their viability. On that basis it also proposes targets for maintenance and improvement of these natural assets.
The Act also recognises a regional organisation to undertake this task, to drive its implementation and to educate the community in the need for more sustainable practises. NRM North has been tasked with this role and works closely with local government, State Government, Australian Government and private industry to achieve these goals.
A review of the regional NRM strategy in the next 2 years will incorporate all the latest scientific understanding of the region‟s rich ecosystems and incorporate community values and expectations around those ecosystems. This strategy incorporates proposed management actions which support the sustainability of the region‟s natural resources.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to improve environmental sustainability in the northern region. These actions are already planned, committed and funded.
Action 9.1 Implement the Strategic Emission Reduction Partnerships program
The Strategic Emission Reductions Partnerships program, in conjunction with the Tasmanian Climate Change Office, will work with the state's largest industries to better understand their opportunities to reduce emissions and to support their transition to a low-carbon economy. 213
Action 9.2 Facilitate loans to eligible businesses through the Renewable Energy Loans Scheme
The Renewable Energy Loans Scheme (RELS) is a Tasmanian Government initiative that provides a part loan, part grant for eligible businesses to install and utilise renewable energy technology (such as solar or wind power). RELS will assist eligible businesses to purchase and install commercially viable renewable energy generation facilities or manufacture renewable technology.
211 Tasmanian Consolidated Acts, Natural Resource Management Act 2002, http://www.austlii.edu.au/au/legis/tas/consol_act/nrma2002280/, accessed 5 September 2012 212 Northern Tasmania Natural Resource Management Committee 2010, op.cit. 213 The Tasmanian Wedges Report (Department of Premier and Cabinet, Tasmanian Climate Change Office, Tasmanian Wedges Report, http://www.dpac.tas.gov.au/divisions/climatechange/wedges_report), revealed that almost one third of Tasmania‟s emissions come from a relatively small number of large businesses. These businesses are an important part of the economy and are key employers. The state government is committed to working with those businesses in the northern region, to find solutions to reducing emissions.
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Action 9.3 Promote the Business and Environmental Sustainability Program
Economic development co-existing with the effective management and maintenance of our biodiversity and natural heritage is evidence of environmental sustainability. The Business and Environmental Sustainability Program consists of three parts: the Energy Ready program which assists businesses to reduce their energy costs and measure themselves against environmental indicators that will help them build a market advantage and improve their economic and environmental performance. Energy Workshops for Manufacturing, designed to assist industry reduce energy costs for enterprises in the manufacturing sector. The State of the Environment (SoE) Report, designed for use by the general community and policy makers. It summarises Tasmanian environmental conditions, trends and changes over five year period and provides recommendations for future management of the environment.
Action 9.4 Promote the Clean Technology suite of programs
The Australian Government‟s $1.2 billion Clean Technology program, delivered through AusIndustry, provides incentives for business to reduce emissions and invest in clean energy through the following three components: Clean Technology Investment Program - an $800 million competitive, merit-based grants program to support Australian manufacturers to maintain competitiveness in a carbon constrained economy. Clean Technology Food and Foundries Investment Program - a $200 million competitive, merit- based grants program to support Australian food and foundry manufacturers to maintain competitiveness in a carbon constrained economy. Clean Technology Innovation Program - will support the research, development and commercialisation of clean technology products, processes and services. It will fund the development of a range of clean technologies including low emission and other energy efficient technologies.
Action 9.5 Promote the Climate Connect program
The Tasmanian Climate Change Office provides grants through the Climate Connect program up to a maximum of $20 000 for projects that will assist industries and local communities to adapt to the impacts of climate change.
Action 9.6 Facilitate and support NRM North to develop a regional plan for climate change adaptation
NRM North is preparing a regional plan for climate change adaptation to assist in ensuring the region‟s natural assets can transition to a changed climate without significant loss to their environmental or productive value. This process is being supported by both Australian and Tasmanian Governments.
Action 9.7 Facilitate and support NRM North to undertake projects to improve the health of the Tamar River estuary
The Tamar Estuary and Esk Rivers program (a joint NRM North/Tasmanian Government initiative) is a partnership which is working to ensure that the health of one of the region‟s major assets, the Tamar Estuary, is maintained and improved.
Action 9.8 Support the Community Energy Efficiency Program (CEEP) for local government
The CEEP supports local councils and community organisations to improve the energy efficiency of different types of non-residential council and community use buildings, facilities
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and lighting, as well as demonstrating and encouraging the adoption of improved energy management practices within councils, organisations and the broader community.
Action 9.9 Promote and implement the Low Income Energy Efficiency Program (LIEEP)
LIEEP provides grants to consortia of community, government and energy organisations to trial ways of improving energy efficiency in low income households, thereby enabling them to better manage their energy use.
Action 9.10 Promote and implement the Home Energy Saver Scheme This scheme has been established to assist low income households to find more sustainable ways to manage their energy consumption.
Action 9.11 Develop a state-wide controlled waste facility at Copping to enable residents and industry to implement best practice waste management solutions
The development of a controlled waste facility presents an opportunity for Tasmanian industries to meet best environmental waste practice. The establishment of a Controlled Waste Facility at Copping has been identified as a critical piece of infrastructure for the southern Tasmania and the state as a whole.
Action 9.12 Facilitate access to funds via the Australian Renewable Energy Agency
The Tasmanian Government will leverage funding from the $10 billion clean energy finance fund, $200 million innovation program, and $3.2 billion in existing assistance that has been consolidated under the new Australian Renewable Energy Agency (ARENA) and other national programs to promote the development of Tasmania‟s renewable energy industry.
Action 9.13 Fund flood mitigation works on the Tamar River
DEDTA and DPIPWE provide funding to the Launceston City Council through the Launceston Flood Authority to provide funding for flood mitigation works along the banks of the Tamar River.
Action 9.14 Implement local emission reduction programs
Emission reduction work is on-going in Launceston through partnerships with Launceston City Council, DEDTA and the Launceston Chamber of Commerce.
The suggested actions listed below to improve environmental sustainability in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Facilitate round two of the Bass Strait Islands Renewable Energy Fund.
Facilitate the development of new industries around the region‟s renewable energy capability.
Facilitate investigation into the production of biofuels in the region.
Leverage new funding opportunities through the Australian Renewable Energy Agency
Utilise the State of the Environment report to inform future policy directions.
Facilitate investment in appropriate environmental sustainability projects through social enterprises and communities in the region.
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Goal Four To support and grow communities in the northern region
Tasmania has one of the most decentralised populations of any state or territory in Australia. These smaller, more connected communities contribute to Tasmania being such a liveable place.
Goal Four of the Northern Regional Economic Development Plan focuses on the importance of place and communities across the northern region. This means working across all levels of government – national, state and local – to achieve economic outcomes that promote local solutions.
Sustainable economic development is an essential element of liveable regional and local communities, and vice versa. Economic opportunities create the basis for population growth which itself is an economic stimulus to industry sectors such as retail and construction and which assists in defraying the costs of infrastructure development equitably. The combination of this region‟s economic opportunities and liveability advantages make it a place that attracts and retains people to live and work.
The Tasmanian Government can support sustainable growth in regional communities through facilitating regional economic development plans that integrate the three tiers of government in the planning and delivery of infrastructure and other services. We need to make sure that our land use, infrastructure, businesses and people are able to make the most of our opportunities and are investment-ready.
The Government is committed to supporting the northern regional community through: developing the regional economy, boosting communities within the region, developing and implementing regional planning and land use strategies, and developing a strategy to maximise the region‟s liveability advantage.
We need to work with local communities to develop economic development opportunities to support a resilient and diverse economic base. This means considering all resources in the community – human, natural and financial.
As a key stakeholder in regional communities, local government will play an important part in this process. The Northern Tasmania Regional Strategy214 articulates what the eight constituent Councils of Northern Tasmania Development have agreed are the regional priorities to continue to strengthen the capacity and performance of the whole region. These priorities include: sustained economic development, population and jobs growth, building skills and workforce capacity, enhanced liveability, better infrastructure, connections and capacity, and stronger local communities and wellbeing.
The Australian Government is also pursuing a strategic approach to regional development. This approach will see all three tiers of government work together with local communities to find solutions for economic development to achieve a more resilient and diverse economic base. These solutions need to build on local assets and promote collaborative partnerships.
Objectives
The following objectives indicate the levers that government can influence to support and grow communities in the northern region:
Objective 10 Develop a planning environment that supports and grows communities Objective 11 Create a liveability advantage Objective 12 Develop communities through regional investment
214 Northern Tasmania Development, Northern Tasmania Regional Strategy, op.cit.
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Objective 10 Develop a planning environment that supports and grows communities
The sustainable use and development of land and natural resources are crucial in supporting Tasmania‟s long- term economic, environmental and social objectives.
An important role for land use planning is to provide for and manage growth and development and coordinate the provision of land supply that will match present and future needs for housing, industry, commerce and recreation.
In addition, contemporary planning considerations promote settlements which are liveable and sustainable. These are places which make optimum use of land and the available and planned infrastructure, and which provide ready ability to internally access daily requirements for employment, education, retail, health and social and recreational needs. They are also places which are energy efficient and have a reduced carbon footprint.
The Tasmanian Government‟s planning reform agenda, including the Regional Land Use Strategy of Northern Tasmania, is discussed in more detail under Goal One, Objective 3, Creating a Business Enabling Environment.
Regional economic development plans provide an important input into the ongoing planning reform agenda, particularly regional land-use planning. Economic development creates jobs and is important in developing sustainable and viable communities.
“Aligning land use policy and investment decisions to enhance liveability is a key objective of the Regional Land Use Strategy as it will improve the strength of the communities and longer term economic performance.”215
In order to support the Tasmanian Government‟s Regional Planning Initiative (RPI) the Department of Economic Development, Tourism and the Arts (DEDTA) developed the Planning Reform Support Program (PRSP). The projects that are funded within this program in the northern region are intended to assist in improving the ability of the planning system to provide both greater certainty for investment decisions and an improvement in the sustainability of our regional communities.
Improving planning processes needs to be complemented by efficient and effective development applications processes, assessment and compliance mechanisms. These responsibilities rest with councils. Councils are already exploring the sharing of resources to achieve these outcomes. This collaboration is encouraged and supported by government.
Many of our regional areas are made up of unique but interlinked towns and communities. These settlements are the hubs of their regions, and their planned growth and development is one of the best ways in which we can support them to be vibrant, active and sustainable places that enliven and boost our communities.
Communities can be strengthened through effective and integrated land-use planning. Such planning can promote co-location and, where feasible, the shared use of community facilities. Integrated land-use planning can assist in establishing areas of public open space that are safe, and maximise the movement network including the establishment of walking and cycling connections. Implementing these elements contributes to liveability.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop a planning environment that supports and grows communities in the northern region. These actions are already planned, committed and funded.
Action 10.1 Facilitate and support the development and implementation of the Greater Launceston Plan
The Greater Launceston Plan216 is a major planning initiative being undertaken by the Launceston City Council in conjunction with other councils in the greater Launceston area and the
215 Northern Tasmania Development, 2011, Regional Land Use Strategy of Northern Tasmania, Launceston 216 Launceston City Council, Greater Launceston Plan, http://www.launceston.tas.gov.au/lcc/index.php?c=554
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Australian Government (through the Department of Infrastructure, Liveable Cities Program). Two key themes provide the unifying focus to the Greater Launceston Plan: a strong focus on community needs and values; the significance of sustainability as a key underpinning value.
The Greater Launceston Plan will provide a long term strategy for sustainable land use planning and management to inform a coordinated approach for municipal planning and investment in the Greater Launceston area, built on: a unifying greater Launceston vision. a clear statement of strategic principles and directions that reflect National Urban Policy and best practice in regional urban planning. the dynamics and needs of the communities that comprise the greater urban area. an understanding of the land and water ecology and the conservation and heritage values that provide the environmental and cultural context for the strategy. an understanding of the economic resources, competitive advantages and opportunities of the Greater Launceston area. the long term transport and communications needs of the region within a state and national context.
Action 10.2 Develop and implement new planning schemes consistent with the Regional Land Use Strategy of Northern Tasmania
Regional economic development plans provide an important input into the on-going planning reform agenda, particularly regional land-use planning. Economic development creates jobs and is important in developing sustainable and viable communities.
Action 10.3 Implement the Planning Schemes Online Project
The Planning Schemes Online Project will deliver state-wide planning scheme information from a single, searchable website.
Action 10.4 Undertake the Northern Tasmania Industrial Land Study
Northern Tasmanian Development plans to undertake a Northern Tasmania Industrial Land Study which will provide an analysis of industrial land supply to inform current land use and development projects including the Integrated Transport Plan, the Greater Launceston Plan and the Regional Planning Initiative.
Action 10.5 Develop a structure plan for Prospect Vale and Blackstone Heights settlements
DEDTA is partnering with Meander Valley Council to develop a structure plan for Prospect Vale and Blackstone Heights settlements. The plan will unlock the investment potential of the existing service centre to better fulfil its role as a service centre with a district catchment and the creation of a new neighbourhood service centre.
Action 10.6 Develop a structure plan for Break O'Day municipality
DEDTA is partnering with Break O‟Day Council to develop a structure plan for the key east coast settlement of St Helens, including Binalong Bay.
Action 10.7 Develop an East Coast Marine Infrastructure Strategy
DEDTA has partnered with Marine and Safety Tasmanian (MaST), Tasman, Sorell, Glamorgan Spring Bay and Break O‟Day Councils to develop an East Coast Marine Infrastructure Strategy. This plan will provide direction for public and private maritime infrastructure investment. The project focuses primarily on the potential, opportunity and need for recreational and commercial boating infrastructure, including private sector marina development, and the siting
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of onshore aquaculture and fishing operations. The aim is to ensure that there is a comprehensive framework and strategy in place that will lead to expedited future investment decisions by private enterprise.
Recommendations before the steering committee include specific infrastructure projects in Break O‟Day municipality, including: St Helens Wharf replacement; improving parking arrangements at Burns Bay Boat Ramp; improving parking and access arrangements at the Binalong Bay Boat Ramp/Jetty; and investigating options to improve accessibility at low tide and improve all weather access at the Stieglitz Boat Ramp.
Action 10.8 Update the Northern Regional Integrated Transport Plan
There is a continued focus on collaborative transport planning by Tasmanian and local Governments, which is crucial to enabling access to employment, education and recreation, and the growth and health of Tasmania‟s communities. The major priority in the north is updating the Northern Regional Integrated Transport Plan, 2003. A background report has been prepared following stakeholder workshops, with the revised plan due for completion in 2013.
The suggested actions listed below to develop a planning environment that supports and grows communities in the northern region will be evaluated, prioritised and, where appropriate, implemented by government.
Identify strategic projects that align with the objectives of the Regional Land Use Strategy of Northern Tasmania.
Update the industrial sites overview for investment attraction
Review marine infrastructure in the region.
Identify projects for the planning reform support program.
Review community public transport options for remote and isolated townships and establish a minimum level of service for all communities.
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Objective 11 Create a liveability advantage
Liveability is as an important influence on the economic growth and development of regions. Issues such as access to services, infrastructure, amenities, transport, workforce availability, job and career opportunities, health and education facilities, housing and the opportunity for cultural and sporting pursuits are important considerations for both potential residents and investors in choosing a location to reside or operate a business.
Liveable places also attract and retain highly skilled, productive and creative people who drive innovation and economic growth.
The Tasmanian Government will embark on an initiative to develop a Tasmanian Liveability Strategy, within which issues such as workforce availability and job and career opportunities are expected to form an important part.
The Australian Government has identified liveability as one of its priorities and is developing a national approach to urban and regional development as reflected in the report Sustainable Australia- Sustainable Communities: A Sustainable Population Strategy for Australia.217 The main objective of this strategy is to ensure that future changes in Australia‟s population are compatible with the sustainability of our economy, communities and the environment.
“A sustainable Australia is a nation of sustainable communities which have the right mix of services, job and education opportunities, affordable housing, amenity and natural environment that make them places where people want to live, work and build a future.”218
Northern Tasmania‟s renowned natural attributes, its diverse range of arts and cultural experiences, its lifestyle and its public open spaces are advantages that help to make the region an extremely liveable place. Promoting these strengths is an important element in encouraging regional economic growth and development.
In addition, the Regional Land Use Strategy of Northern Tasmania includes a Settlement Strategy providing clear objectives and targets in terms of working towards the region‟s anticipated population growth. This is achieved through the establishment of a defined settlement strategy that suggests urban growth areas to limit the extent of urban development and encourages a more compact urban form. This will lead to greater residential densities in central urban areas with good services, amenities and transport linkages. Such a strategy is important as the nature of housing demand changes in the region.
“Northern Tasmania is experiencing declining household size with smaller families and increases in single person households. The population is ageing, with the greater proportion of the elderly being single or widowed. This will lead to a falling demand for traditional three to four bedroom family homes and increased demand for smaller, more manageable dwellings, as well as retirement accommodation and aged care facilities.”219
Health infrastructure and services are a key part of a modern liveable place, particularly for an aging population who require access to more services more often than other age groups. The Launceston General Hospital will continue to be the primary hospital and health centre in the region, with other public and private facilities providing a supporting role.
DEDTA‟s Cultural, Recreation and Sport (CRS) division delivers programs that support quality of life, health and wellbeing and the culture of Tasmanian communities; supports and facilitates opportunities for all Tasmanians to participate in and have access to cultural, artistic, recreational and sporting activities and events; and builds capacity and invests in Tasmania‟s creative capital and supporting talent.
217 Australian Government, Department of Sustainability, Environment, Water, Population and Communities, 2011, Sustainable Australia - Sustainable Communities: A Sustainable Population Strategy for Australia 218 ibid, p2. 219 Northern Tasmania Development, 2011, Regional Land Use Strategy of Northern Tasmania, Launceston, p.48.
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The provision of high quality sport and recreation programs and infrastructure also have positive benefits for Tasmania in terms of liveability and the economy. Participation in sport and recreation encourages social inclusion and connected communities that are more attractive places to live, work and visit.
In 2011 the Tasmanian Government released a study by the AIRC which showed that sport and physical recreation is a significant contributor to the Tasmanian economy. The Value of Sport and Physical Recreation to Tasmania220 demonstrated that relatively modest expenditure in sport and recreation is far outweighed by the revenue, cost savings, and community benefits derived from sport and recreation, with every $1 invested delivering more than $4 in benefits to Tasmania.
The plans and strategies in this Goal that contribute to the liveability of northern Tasmania address retirement living, sport and recreation, aged care, digital futures including the rollout of the National Broadband Network (NBN), and community engagement.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to create a liveability advantage in the northern region. These actions are already planned, committed and funded.
Action 11.1 Continue to support and strengthen Brand Tasmania across the live, work, study, trade and invest dimensions
The Tasmanian Government recently announced grant funding to the Brand Tasmania Council for the next three years and recognises their continued work as the custodian of the Tasmania Brand in promoting the advantages of living, working, studying, visiting, trading and investing in the state.
In support of growing the high recognition level of Tasmania‟s brand in local, national and international markets the government will continue to implement projects to build the Brand. Projects, in collaboration with the Brand Tasmania Council, include Savour Tasmania culinary event program, the Taste Tasmania campaign that promotes local produce, and targeted attendance at major national food and wine branding events such as Good Food & Wine and Taste Sydney.
Action 11.2 Implement the Retirement Living project
Through a collaborative approach, DEDTA, local government and the retirement living industry have established the Retirement Living project to enable the state to be better placed to attract investment that builds the long-term liveability and sustainability of Tasmanian communities. The project aims to develop greater understanding of the economic drivers and demand for retirement living in regional areas of Tasmania and produce tools to assist local councils to effectively analyse and facilitate investment opportunities in retirement living.
A steering committee has been established to oversee this project. Members include DEDTA, Community Services Tasmania, the Local Government Association of Tasmania and the Department of Premier and Cabinet. The Institute for Regional Development, University of Tasmania has been commissioned to do the work.
Action 11.3 Implement the Liveable Places Development Program, to focus on ways to attract investment in retirement living, particularly in regional communities
The Liveable Places Development Program is a partnership between the Tasmanian Government and local councils that will identify projects to improve the liveability of our towns and regions. The first project will be the Retirement Living Project.
220 Muller, P, Wadsley, A, Adams, D, Arthur, D & Felmingham,B, 2010, The Value of Sport and Physical Recreation to Tasmania, Australian Innovation Research Centre, University of Tasmania, Australia.
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Action 11.4 Implement regional sport and recreation initiatives, such as the Tasmanian Plan for Physical Activity
Sport and Recreation Tasmania contributes to our economy and the liveability of the Tasmanian community by: providing tools, advice and knowledge to sporting organisations to improve the way they operate providing advice, knowledge and tools to plan and develop sport and recreation infrastructure in Tasmania advocating for the inclusion of sport and recreation infrastructure in planning schemes providing grants to sporting organisations to develop skill and knowledge and for sport and recreation infrastructure supporting and leading initiatives and programs to increase participation in sport and recreation implementing, through the Premier‟s Physical Activity Council, the Tasmanian Plan for Physical Activity 2011-21 providing, through the Wilderness Program, outdoor recreation therapy programs for at risk members of the Tasmanian community.
Action 11.5 Implement Objective 4 of Arts Tasmania‟s operational plan
Objective 4 of Arts Tasmania‟s operational plan is to invest in and facilitate the development of Tasmania‟s artists and arts organisations to enhance the economic and social contribution of the arts and cultural heritage sector to Tasmania, through: Developing a Museums Accreditation Program (MAP) that will strengthen the business capacity of Tasmania‟s myriad small museums and collections – MAP accreditation will then enable those collections to be considered as part of smartmap Tasmania in the future Using its Roving Curators program to strengthen the capacity of communities state-wide to promote their moveable cultural heritage Developing in consultation with the arts sector a range of new investment models such as equity funds, partnership funds, crowdsourcing and loans to support arts investment and build capital in arts organisations Continuing to promote the nationally unique COLLECT Art Purchase Scheme. The scheme provides a direct benefit to Tasmanian retail galleries and supports the employment of local artists.
Action 11.6 Support regional events through Events Tasmania, such as the Junction Arts Festival
Events Tasmania contributes to Tasmania‟s liveability through developing a balanced portfolio of events encompassing a range of target audiences including tourists and local communities and working to increase community benefits from these initiatives. In the northern region examples include the Junction Arts Festival, Festivale, and the Breath of Fresh Air (BOFA) film festival.
Action 11.7 Undertake a Dorset aged care study
DEDTA, in partnership with Dorset Council, is funding a study into the dynamics and trends in the aged care sector in the northern region, as a platform to underpin future investment and development of the sector in the north east.
Action 11.8 Undertake regular Community Conversations
DEDTA is committed to working with local government and the Australian Government in engaging with communities across Tasmania to report on progress in the development and implementation of this Northern Regional Economic Development Plan.
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In the northern region, it will do this by continuing to hold community conversations in selected venues every six months for the life of this Northern Regional Economic Development Plan. DEDTA will use those conversations as opportunities to gain input from community members about ways in which the Northern Regional Economic Development Plan can be further enhanced.
DEDTA will also work with identified partners to develop and trial an online collaborative platform, designed to enable members of communities across the region to take part in online community conversations about pertinent issues related to the Northern Regional Economic Development Plan.
Action 11.9 Leverage early roll-out of the NBN to increase connectivity between people and communities
The Digital Futures Strategy will significantly contribute to liveability in regional communities. By reducing the digital divide through enabling ubiquitous, affordable broadband access, the NBN opens up opportunities for new businesses, and for people to live where they choose and connect with the world via the Internet.
As well as access to the internet, the NBN will provide opportunities for local community growth and local business sustainability through the creation of localised virtual communities and for the delivery of on-line services such as e-health and e-education. The Digital Futures Strategy will also extend the capability of on-line community-to-government and business-to- government services.
The Digital Futures Strategy is discussed more fully within Goal 1 and its associated Actions.
Action 11.10 Support UTAS in developing an Academy of Creative Industries and Performing Arts
The Tasmanian Government has committed $15.2 million to the University of Tasmania (UTAS) to establish a state-wide Academy of Creative Industries and Performing Arts (ACIPA), leveraging Tasmania's artistic acumen and the advances in technology offered by the National Broadband Network.221
The proposed $75.2 million project is set to drive a cultural and creative revitalisation of regional cultural precincts and remote communities across Tasmania, with the potential to generate more than $660 million in direct and indirect economic benefits over the next seven years.
The project will deliver a signature building and associated infrastructure supporting creative industries including performing arts, new media, events management and digital technologies.
The project is being driven by UTAS, in partnership with the Theatre Royal and the Tasmanian Government, and state-wide support from the Launceston, Burnie and Hobart councils – in addition to major performing arts organisations such as the Tasmanian Symphony Orchestra, MONA and the Festival of Voices.
UTAS is currently awaiting a decision by the Australian Government on its Stage 2 application for $37 million in funding for the project under the Education Investment Fund, Regional Priorities Round.
221 http://www.utas.edu.au/tools/recent-news/news/landmark-performing-arts-and-creative-industries-academy-proposed-for-tasmania
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The suggested actions listed below to create a liveability advantage in the northern region will be evaluated, prioritised and, where appropriate, implemented by government. Explore opportunities to transfer findings of the Dorset aged care study to other parts of the region Prepare a passenger transport plan for regional communities to improve connectivity for residents in remote and isolated settlements Progress a proposal for a digital epicentre to support and grow creative industries
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Objective 12 Develop communities through regional investment
A regional development program is being implemented through various funding opportunities provided by all levels of Government.
The program involves the development, facilitation and implementation of this plan for northern Tasmania in conjunction with local and Australian governments and regional stakeholders.
The Plan has a focus on ensuring our land use, infrastructure, businesses and people are best placed to make the most of our opportunities and are investment-ready and to ensure that we are best placed to access whatever funds are available, including those from the Australian Government.
Government investment is an important function in regional development. The emphasis will be on helping new small and medium-sized investors, as well as existing businesses that are looking to expand or relocate to the region and others seeking to expand, to navigate the development path, particularly in relation to the various government and related entities.
To promote and encourage local investment, sustainable growth and settlement in the region, there needs to be a vibrant and resilient regional economy. This requires appropriate sustainable community infrastructure and support to provide for the health and well-being of residents and protection of the environment for future generations.
The region does not operate in isolation to the global economy so it too was affected by the economic downturn. The northern region experienced its share of hardship with enterprise closures, increased cost of operations and living, growing unemployment and skilled labour relocating to employment outside the region.
In an attempt to build resilience into this economic climate, the Australian and Tasmanian governments have continued to support the region with a number of stimulus packages to ensure grass roots ideas and projects are formulated from within to grow and sustain communities. Examples of programs are the Education Stimulus package, the North/North West Tasmanian Industry Innovation Fund and the North/North West Vegetable Industry Program. Several industry and community task forces were implemented to support those communities in transition from industry and enterprise closures. This support continues in the region under the Tasmanian Forests Intergovernmental Agreement222 for Economic Diversification under Stream 3 supporting strategic investments to support economic diversification.
It is imperative that government continues to support and encourage investment and employment options in the more remote locations, and continues to focus on boosting communities and industries to become self- sufficient and sustainable with relevant training to underpin industry development.
There will need to be an emphasis on investment attraction, facilitation and retention. The emphasis will be on helping new small and medium-sized investors, including existing businesses that are looking to expand, to navigate the development path, particularly in relation to the various government and related entities.
The actions listed below are currently being undertaken by the Australian, Tasmanian and Local Governments to develop communities through regional investment in the northern region. These actions are already planned, committed and funded.
Action 12.1 Promote the Australian Government‟s Regional Development Australia Fund (RDAF)
The objective of the RDAF is to support the economic, environmental and community needs of Australia‟s regions by providing funding for projects that meet the identified priorities of regional communities, as articulated in RDA Tasmania's Regional Plan. This is one of the main funding mechanisms of the Australian Government.
222 The Tasmanian Forests Intergovernmental Agreement (TFA) is funded by the Australian Government
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RDA Tasmania has defined seven current priorities: 1. Expand the economic base of the Tasmanian economy 2. Maximise the potential and benefits of the National Broadband Network 3. Increase strategic collaboration and coordination across all levels of government and the Tasmanian community 4. Improve literacy and numeracy levels within the Tasmanian community 5. Raise skill and education levels to improve workforce productivity and employment opportunities 6. Improve health outcomes across regional Tasmania 7. Improve social inclusion, access, housing and liveability outcomes.
In addition, applications for funding under the RDAF require the support of the RDA Tasmania Committee. Recognising that economic growth and economic diversification is currently crucial for Tasmania, more competitive projects will be those that demonstrate broader regional collaboration and achieve longer-term economic outcomes. Likewise, projects that request funding for sporting and recreation infrastructure must meet a defined regional need and demonstrate broad regional collaboration and support to have the potential for selection by the RDA Tasmania Committee.
Action 12.2 Develop and implement the Greater Launceston Metropolitan Passenger Transport Plan The Tasmanian Government has allocated $200 000 from the Passenger Transport Innovation Fund to develop a Greater Launceston Metropolitan Passenger Transport Plan. The Plan will guide future passenger transport development and investment in Greater Launceston. The project will be conducted to achieve following project specific outcomes: Shared understanding of existing land use and household travel patterns Confirmation of existing passenger transport challenges and opportunities in Greater Launceston Identification and agreement on likely areas of demographic change, and changes in household travel patterns, to 2030 Identification and prioritisation of projects capable of contributing to the achievement of the Framework objectives Agreement between major stakeholders to the Passenger Transport Plan and prioritised projects.
Action 12.3 Develop and implement a regional economic development plan online portal
The development and implementation of the Northern Regional Economic Development Plan includes a focus on the region‟s key industry sectors identified in Goal 2 to ensure that land use, infrastructure, businesses and people are able to make the most of opportunities and are investment-ready. The proposed online portal will provide a mechanism for communities to contribute to setting the region‟s direction and building on its assets and opportunities.
Action 12.4 Support and encourage resource sharing in local government
Government will encourage greater collaboration between councils, such as sharing resources to achieve regional planning objectives and smoother development application processes. This may include support for strategies and structural plans in priority locations with growth potential or those facing crises such as our traditional forest communities. It may also include sharing capital equipment or administration services.
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Action 12.5 Redevelop Aboriginal education, exhibition, school programs and public programs at the Tasmanian Museum and Art Gallery (TMAG)
TMAG provides an extensive state-wide resource for the public in areas of education, cultural development and social inclusion. TMAG‟s public programming in the coming years includes the opening of Stage One of a major redevelopment in early 2013, with 12 new exhibitions and a comprehensive visitor experience program. New programming includes a focus on Aboriginal education with a redesigned Tasmanian Aboriginal gallery, „ningenneh tunapry’, and a new exhibition, „parawa parawa! –go away!‟, along with associated school programs that explore issues of invasion and colonisation.
The full range of new exhibitions at TMAG explore Tasmanian culture and identity through the arts, sciences and humanities and are backed by a diverse education program. Art outreach workshops in all regions will be offered through the AccessArt program. Additionally there will be an increased provision of loan resources on offer, including the iRemember cases for people living with dementia, to further meet TMAG‟s commitment to social inclusion. Access to the State Collection will be further enhanced by a greater number of resources available online, and promoted state-wide through a partnership program with the ABC called Shaping Tasmania: a journey in 100 objects.
Action 12.6 Fund and facilitate sport and recreation grants and national and international sport championships programs
Sport and Recreation Tasmania (SRT) provides funding through annual grants programs to increase opportunities for participation in sport and active recreation in Tasmania, and to assist the on-going development of Tasmania‟s sport and active recreation sector.
SRT‟s current grant programs include the State Grants Program, the National / International Sports Championships Programs and the Community Support Levy funded Major and Minor Grants Programs. In 2011-12, SRT provided approximately $6.2 million in grants.
The funding is provided to ensure progress towards SRT‟s goals of developing and supporting a vibrant, innovative and inclusive sport and recreation sector, facilitating participation in sport, recreation and physical activity and supporting the provision of quality facilities and environments that meet the sport, recreation and physical activity needs of the community.
Sport and active recreation is a significant contributor to the Tasmanian economy, generating a significant return on investment for the Tasmanian community, with every $1 invested in sport and recreation returning more than $4 in benefits.
Action 12.7 Promote property development projects through investment attraction
As the Tasmanian Government‟s investment attraction and major project facilitation unit, Invest Tasmania223 has a dedicated case management approach for major and or strategic investments. Invest Tasmania promotes Tasmania as an investment location, identification of investment value propositions with significant benefits for Tasmania and its regions, identification and targeting of potential investors and the conversion of investor interest into actual investment.
In addition, Invest Tasmania is administering a suite of projects that are regarded as „Likely to Proceed‟ and „Under Consideration‟ for the region and the state as a whole. These projects are at various levels of planning and will inject significant support to the regional community within northern Tasmania. Many of these projects, predominately with Australian or Tasmanian government funding, or both, have funds allocated for their development that
223 http://www.development.tas.gov.au/invest/how_we_can_help
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provide employment and well-being for the regional communities in which they are to be located, both during and on completion.
Action 12.8 Implement the Digital Futures Strategy
The Digital Futures Strategy was announced by the Tasmanian Government in August 2010.224 The second phase of the strategy covers the period to the end of 2015 and aligns with the Tasmanian roll out of the NBN. The Digital Futures Strategy has the goal of leveraging the NBN to create an innovative, sustainable and vibrant Tasmanian digital economy.
The Digital Futures Strategy has three underlying drivers for change:
maximising investment and growth opportunities from the whole-of-state deployment of the NBN some 6 years ahead of any other state leading the way for the implementation of Government 2.0 services incorporating the ubiquity of broadband access into regional community and economic diversification.
There are five objectives in the Digital Futures Strategy: 1. increasing Tasmanian business participation in the digital economy and connectivity to the NBN 2. making it easier and simpler for Tasmanian businesses to transact and interact with government 3. improving the economic growth, productivity and environment performance of the Tasmanian economy 4. leveraging the NBN to attract investment for the local ICT, services and knowledge industries and for broader research across industry sectors 5. maximising ICT industry opportunity in the development of next-generation NBN-capable applications, services and technologies.
A number of programs are being implemented under the Digital Futures Strategy, including the Digital Ready Program, the Business Tasmania website and NBN4Business. More information on these programs can be found at Action 5.1.
Action 12.9 Implement the Passenger Transport Innovation Program
The Passenger Transport Innovation Program that has a range of projects that will improve passenger accessibility, contributing to stronger community development, including: establishment of a Greater Launceston Metropolitan Transport Plan a pilot workplace travel behaviour change program that will target State Government employees improved bus services on urban fringe and regional bus routes, based on service development plans prepared by bus operators targeted improvement in off-bus infrastructure on urban fringe bus routes, which is being pursued in partnership with councils a trial of WiFi on inter-regional and some urban fringe bus routes the appointment of an Active Transport Officer to work with stakeholders in identifying and developing active transport networks for walking and cycling.
The Tasmanian Government has committed an additional $3.25 million to Metro Tasmania for bus capital and service enhancement projects.
224 Tasmanian Government, Digital Futures Strategy, http://www.development.tas.gov.au/science/science_and_technology/digital_futures , accessed 26 June 2012.
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Action 12.10 The Australian Government‟s Digital Economy Strategy includes three NBN-related programs:
Digital Hubs Digital Enterprise Digital Local Government.
These programs are for the first 40 NBN connected communities, of which 10 are in Tasmania. Of these 10 Tasmanian communities, the north includes Deloraine, George Town, Scottsdale, St Helens and the initial implementation in Launceston, and each community‟s respective local council. Hubs and enterprise centres will run over a two year period, and the successful local government digital initiatives will be implemented in 2013.
Action 12.11 Support a bid by UTAS to establish a new Resilient Regions Cooperative Research Centre
The Tasmanian Government is a member of a consortium that includes UTAS that is seeking to establish a Cooperative Research Centre designed to tackle the big issues facing regional communities. It will bring together leading experts across fields as diverse as urban design and regional planning, social change, business strategy development, employment relations and human geography. The Centre will help build more sustainable regions in Australia by looking intensively at four distinct community groups - communities in growth, in decline, in conflict and those experiencing a boom. Four distinct research programs will be undertaken over a seven year period and revolve around economic productivity, society and liveability, urban design and regional planning and information systems.
The suggested actions listed below to develop communities through regional investment in the northern region will be evaluated, prioritised and, where appropriate, implemented by government. Facilitate the development of Community Wellbeing Networks to identify resources required to support growth in regional arts, sports, recreation and culture. Establish a Corporates4Communities program to match volunteers from businesses with community organisations. Expand the Tasmanian Leaders Program to develop aspiring community leaders identified through the community conversations process, to add value to regional communities and the individual. Support planned sport and recreational infrastructure to underpin the benefits of sport and recreation to the community, including health, civic, productivity, commercial and leisure outcomes. Support the bid for the Masters’ Games.
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Part 3 - Priority industry sector profiles
Advanced manufacturing Food and agriculture Dairy Fruit Poppy Red meat Vegetables Wine Forestry and related products Mining and mineral processing Tourism
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Advanced manufacturing sector profile - northern region
Snapshot
The contemporary definition of manufacturing is broad and includes the full cycle of activities from research, design and development, production, logistics, and service provision to end of life management - a value stream. Tasmanian advanced manufacturers develop high value, premium margin products by concentrating on the development of low to medium volume niche products and services. Advanced manufacturers embrace on-going learning and innovative technologies through management excellence and the adoption of leading methodology in business practices that include Lean, Six Sigma, and Supply Chain Management.
The main place-based factors providing competitive advantages for the advanced manufacturing sector include proximity to markets; adequate access to energy; water and waste disposal; proximity to transport infrastructure such as airports and ports; and a stable, skilled and available workforce.
In northern Tasmania, manufacturing generally has strongly supported the economy and the sector has included a large scale metals and mineral processing, wood fibre, casting and textiles industries.
Northern Tasmania has limited marine manufacturing capability. However, those companies that are active in this sub-sector have produced a wide range of ferries, work boats and super yachts to international survey standards. Additionally, world class ship and port simulators are designed and manufactured in northern Tasmania. The Australian Maritime College, located in Launceston, is part of an expanding university campus offering worldwide curriculum in maritime and engineering study and has attracted opportunities in defence and related fields.
Northern Tasmania offers an experienced, engineering industry base which has proved to be capable of applying itself across a number of technical areas. It is important to continue the training of future employees and up-skilling existing staff. Part of the industry‟s future may also lie in extending its technical capability globally, with highly mobile workforces fully trained and ready rather than relying on a locally domiciled single product model. There are a number of other specialised or niche manufacturing service businesses working with customers from concept to design, to production and product support.
The majority of advanced manufacturing is located at Launceston, George Town, Invermay, Mowbray and Exeter. The established pattern of designated industrial land is highly fragmented and precludes identification of major industrial estates. It comprises small-scale locations, often inter-mixed with retail and traded sector enterprises and often in close proximity to other land use categories.
The northern regional workforce is reliable and mature, benefiting from a favourable lifestyle including moderate climate, relatively high standards of living, affordable housing, short commuting times and ready access to excellent recreational assets.
Constraints
Tasmanian manufacturing is experiencing significant increases in commercial pressure from strong global competition, weaker domestic demand, accelerating pace of technological innovation, restricted access to capital and skills gaps and shortages.
The continuing high Australian dollar is reducing the competitiveness of export focussed Tasmanian manufacturers, resulting in the need to try to gain additional cost and production efficiencies in enterprises that already have narrow profit margins.
Rising energy costs are a burden which could be eased by a rebalancing of domestic energy supply with overseas exports.225
225 http://news.theage.com.au/breaking-news-national/use-energy-resources-at-home-liveris-20121017-27r8a.html
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The loss of a direct international shipping service from Tasmania and the increased port charges at Port Melbourne placed a further burden on Tasmanian exporters, including the advanced manufacturing sector. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport.
With reduced profitability and lower margins, attracting capital and financing innovation can be difficult for manufacturers. Many commercial lenders see manufacturing as a high risk sector.
In some cases, production processes and management systems are not meeting global supply chain expectations. Many larger firms now require initial quality assurance standards. In addition to ISO 9000, the standards can be very specific and require extensive testing and verification of products and accreditation of company policies and procedures all of which is very expensive.
Many manufacturers experience a lack of product innovation or diversity and struggle to efficiently capture intellectual property and to contain product development costs.
Rising energy costs due to generation and transmission maintenance further impact profitability, with a number of advanced manufacturers poorly utilising energy resources and struggling to find potential efficiencies.
Whilst some regional manufacturers do not have difficulty in attracting suitably qualified employees, a number of others have continuing job vacancies for affordable skilled and less skilled labour. This is expected to be exacerbated by a number of interstate ventures offering lucrative fly in - fly out wages.
Some are experiencing challenges with conventional skill development and are struggling to meet changing industry demand, including areas such as production scheduling, process management and engineering skills.
Generational change and succession planning is an issue for many businesses, with many owners not making provisions for an exit or succession strategy. Similarly, many small to medium enterprises (SMEs) do not structure their business to easily become part of successful commercial growth opportunities, such as joint ventures.
Opportunities
The implementation of value chain and lean manufacturing best practice strategies are of vital importance. Many companies have taken the initiative and are working with state and federal government agencies to commence long term continuous improvement journeys in-house.
Significant opportunities exist for SMEs if they partner with likeminded enterprises in their region. Establishing clusters and facilitating joint ventures that enable local enterprises to partner with other local, as well as national and international, companies may assist in securing a greater regional presence of component suppliers in key international supply chains. Sharing services in purchasing, labour, resource efficiency including energy, and waste management would enhance the strength of these clusters.
Industries should be encouraged to collaborate with each other to maximise competitiveness in freight logistics. Companies should also be encouraged to include logistics as part of their value chain continuous improvement which should present opportunities in packaging, scheduling, reduced handling and smart delivery systems.
There is potential for increased collaboration with the new TasTAFE Institute to develop courses that improve advanced manufacturing skills, including pathways to engineering. The promotion of opportunities for employees to acquire skills that apply across industry sectors further assists in achieving a more adaptable workforce.
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The adoption of Employer of Choice programs may help employers attract greater interest in their skilled vacancies, and improve staff retention.
Given the proximity to Bass Strait, the sale of services and products into the offshore oil and gas sector provides an opportunity to northern Tasmanian companies, such as the Australian Maritime College to expand training offered to those working in the oil and gas sub-sector.
Steel project weights of 400 tonnes or less able to be transported by road can be very competitive in mainland Australia. Already, there is a steel fabricator in northern Tasmania supplying such products to the mainland. Further opportunities may exist.
Tasmania accounts for approximately 27 per cent of freight activity for the Port of Melbourne (PoM). This may present opportunities for collaboration with the PoM in the future to achieve improved commercial terms commensurate with port expansion activities to meet customer needs.
Problem solving and design through the use of computer based analysis tools such as Finite Element Analysis (FEA) and Computational Fluid Dynamics (CFD) are not widely used and tend to be the domain of larger enterprises. Opportunities exist for smaller companies to share resources or collaborate with like companies and institutions to deliver advanced simulation methods to heavy industrial engineering problems. The delivery of knowledgeable, innovative and reliable simulation outcomes as well as physical testing, physical prototyping and whole-of-project engineering management is possible through this.
Further opportunities exist with Rapid Prototyping and Design (RPD), either in-house or as a shared common user RPD facility. This would advance local company‟s capability to develop new designs and products, and fast track commercialisation. Rapid prototyping is a natural extension of the casting industry which traditionally relies on wooden moulds or patterns and we have already see the niche casting industry adopt excellent technologies as Computer aided (CNC) mould design and CCD spectrometallurgy.
Defence and border security sales and contracting with defence prime contractors and the Defence Materiel Organisation is a potential opportunity.
Renewable energy construction, assembly and servicing is also a potential opportunity.
Growth opportunities for Tasmanian advanced manufacturing businesses are likely to come from national and international markets. To be competitive Tasmanian firms require an innovative product or service with a unique point of difference that is in demand. Innovation in production techniques, management effectiveness and approaches to marketing is necessary for manufacturers to succeed in developing new markets and achieving growth in sales.
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Dairy sub-sector profile - northern region
Snapshot
Dairying is Tasmania‟s largest agricultural industry, with a production value of approximately $460 million in processed products.226 It is estimated that the dairy and associated processing industry contribute approximately $250 million towards Gross State Product.
Tasmania‟s temperate climate, fertile soils and reliable rainfall support low cost, pasture-based milk production. Tasmania‟s milk production costs are consistently lower than most other Australian dairy regions, resulting in higher returns on capital invested and helping to drive the industry growth that has occurred over the past two decades. The state produces a range of dairy products for domestic and international markets including cheese, UHT milk, skim and whole milk powder, butter, whey, yoghurt, milk, confectionery and cream.
Tasmania‟s processing sector is mainly situated in the north west and is dominated by Fonterra, Lion, Cadbury and Murray Goulburn. Main processors in the northern region, although smaller by volume than those in the north west, include: Ashgrove Cheese - Elizabeth Town Meander Valley Dairy - Hillwood Elgaar Farm - Elizabeth Town Pyengana Dairy - Pyengana Tamar Valley Dairy - Launceston Yondover Farm House Cheese - Lebrina Westhaven Dairy – Legana.
Investment by processors in the north west will likely be a driver for dairy expansion in the northern region. Projects include Fonterra‟s $12 million upgrade of its Wynyard cheese plant, Lion‟s $150 million expenditure at its Burnie and King Island specialty cheese plants, and Tasmanian Dairy Products $70 million milk powder plant at Circular Head.
Given these investments in processing, there is potential impact on current and future milk production in the northern region. In the next three to five years it is estimated that milk demand by the main Tasmanian processors will increase by 40 per cent. This represents in the order of 350 megalitres (ML) of milk to allow total annual milk production to reach 1 150 ML. While this presents a considerable opportunity, the challenge is to increase the numbers of people, cows and farms dedicated to milk production in a sustainable manner and enable all processors to have access to sufficient milk supply as requirements increase.227
Constraints
Limited processing capacity has previously been seen as a barrier to industry growth, although a number of planned expansions will address this.228
High debt levels within the farm sector and limited business skills of some producers can impact on the capacity to manage volatility and respond to opportunities.
There are difficulties in attracting and retaining labour, both on farm and in factory, as well as encouraging new owner-operators into the farm sector.
226 This figure is derived from preliminary data provided by the Department of Primary Industries, Parks, Water and Environment, from the unpublished draft of Food and Agriculture Industry Scorecard 2009-10. „Based on actual industry product output (volumes of milk, cheese, powders & butter actually produced in Tasmania in 2009-10) and current product prices the projected packed & processed value = $460 million.‟ 227 Making more milk, Filling the Factories, http://www.dairytas.com.au/ accessed 21/08/12 228 Industry Survey to support the Northern Regional Economic Development Plan (Dairy Industry), 2012
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The volatility of international dairy commodity markets and the flow-on cost-price squeeze to producers are continuing to be seen as a significant constraint.
Rising costs of key inputs such as water, electricity, natural gas and labour affect producers‟ and/or processors‟ competitiveness.
Any reduction in port access and/or sea freight services interstate would be a significant constraint to competitiveness in Tasmania. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport.
Opportunities
There is significant scope for increased, low cost - by international standards - milk production which could see Tasmania‟s milk output more than double to 1.5 billion litres per year in the next 10 years and attract additional processing investment. This would result in further investment opportunities in both dairy farming and processing. In order for this to occur, stakeholders need to work collaboratively on herd management, attracting and retaining the right people in the industry, and attracting and leveraging investment. DairyTas, in consultation with stakeholders, has developed a growth plan to help industry pursue these opportunities.
There is anticipated growth in developing economies over the medium term with demand for dairy products projected to exceed supply. Tasmanian producers can assist in supplying this market, although it is important to keep market diversity between new and traditional trade destinations.
Tasmania has a comparative water advantage that will be supplemented by planned irrigation investments. These will continue to be served by the rollout of irrigation schemes.
Tasmania has a relative absence of major animal diseases and ideal conditions for pasture -based production.
Capitalising on climate change impacts driving Australian milk production to cooler, wetter parts of the country will be a potential opportunity. Wine makers are leading the way in investing in Tasmania as a form of land „insurance‟ and dairy producers can follow suit.
By improving understanding and management of key pasture species, productivity can be boosted. This can be combined with a well organised, cohesive production sector with clear, demonstrated capabilities and a plan to account for skills shortfalls. With regards to future skilling needs, industry has identified in order of importance attracting staff, retaining staff and up-skilling.
With an increase in milk demand from existing and new milk processors in the north west, and the increased opportunity for conversion to dairy from the implementation of irrigation schemes, the case for farms investing in, and converting to, dairy may be increased. This may extend further to farmland in the midlands where dairy farms have traditionally been in the minority compared with red meat, wool and cropping. This will depend heavily on the will of individual landowners to convert to dairy farming. With sufficient increase in milk production, the case may be made to increase milk processing in the region. However, land suitability will be a crucial factor.
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Fruit sub-sector profile - northern region
Snapshot
The Tasmanian fruit industry comprises three key sub sectors:
Pome fruit (pip fruit) - primarily apples, with some pears produced Stone fruit - primarily cherries and apricots, with some nectarines and plums produced Berries - strawberries, raspberries, blackcurrants and blueberries.
Tasmania‟s temperate climate provides the essential winter chill followed by a long mild growing season to support fruit development and enhanced flavour. Tasmanian stone fruit and berries have a clear, late season production advantage both within Australia and overseas. This provides a defined market advantage since there are few competing production regions in the southern hemisphere. The timing of Tasmanian production also provides counter seasonal supply opportunities to the northern hemisphere.
The state‟s island status with risk-based quarantine controls means Tasmania also has an advantage due to its relative disease and pest free status. This provides access to a number of international markets, including Asia, where stringent import regulations are in place. The peak body representing the industry is Fruit Growers of Tasmania, an organisation which has played a crucial role in the development of the industry and its export culture.
The Tasmanian fruit processing sector is small, with the majority of players being micro or small operations (predominantly making preserves and jams) servicing niche markets. There is one dominant processor of apples, blackcurrants and raspberries for fruit juice and value added products.
Apples
A strong domestic market, high freight costs and the rising Australian dollar have seen apple exports decline, with the industry experiencing a period of rationalisation and diversification of varieties planted. The pome fruit sub sector is still an important contributor to the Tasmanian economy with a 2008-09 farm-gate value of $37 million.229 In 2009-10 apples had a gross value of $26.4 M down $8.8M from previous year. 230 Opportunities exist in export markets in South East Asia. . China has been identified by industry as a developing market to target.
The Tamar Valley produces about seven per cent of the state‟s apple production. Major northern producers of pome fruit are:
Top Qual Pty Ltd - Tamar Valley - apples, pears, cherries Montague Fresh, Legana - apples, pears CG Miller Hillwood - apples, pears Windara Orchard, Sidmouth - apples, pears Lees Orchard, Dilston - apples, pears Eureka Farm, Scamander
Stone fruit
The cherry sub sector is a relatively young but rapidly expanding sector. The industry has estimated that production could increase to 7 000 tonnes by 2015, making Tasmania the largest cherry producing state in Australia.231 Tasmania‟s niche for cherries is at the top end of premium overseas markets, where Tasmanian
229 This figure is taken from preliminary, unpublished data provided by the Department of Primary Industries, Parks, Water and Environment, from the draft Tasmanian Food and Beverage Industry Scorecard 2008-09. 230 Figure from Food and Beverage Industry Scorecard- 2009-10 Snapshot provided by the Department of Primary Industries, Parks, Water and Environment. 231 Information provided by Fruit Growers Tasmania in consultations with the Department of Economic Development Tourism and the Arts on 10 August 2010.
Regional Economic Development Plan: Northern Tasmania | 132 of 164 product is differentiated on the basis of quality and larger fruit size. In 2008-09 the cherry sub sector‟s farm- gate value was $24 million.232
Tasmania has a relatively small stone fruit production area. However significant growth, particularly in apricots, has occurred in recent years. The focus has been predominantly on supplying the domestic market but as volumes increase, overseas exports may increase. In 2008-09 the farm-gate value of apricots was $5.6 million and other stone fruit (excluding cherries) $1.2 million.233
Major northern producers of stone fruit are:
Mountain View Cherries, Beaconsfield Eversley Cherries, Legana Woodmere Cherries, Swan Bay Fermer Cherries, Westbury Somercotes Cherries, Ross Underwood Cherry Farm, Underwood Aviemore Cherries, Gravelly Beach Cherry Top, Lilydale Pan Tas, Rowella TE & AG Taylor, Beauty Point
Berries
The potential for berry production in Tasmania has yet to be fully explored by industry. The berry sub sector currently contributes a little more than two per cent of Australia's total berry production. Blackcurrants are the principal berry fruit grown for processing. Blueberries and other berries are smaller contributors, although the potential for blueberry production is yet to be realised, with some plantings not yet reaching full production. A number of producers in the berry sub sector have successfully incorporated tourism and visitor experiences into their business model to niche value-add through cafes, retail outlets and „pick your own‟ experiences. Raspberries and strawberries comprise 60 per cent of state production. The farm-gate value of the berry sector is estimated at $13.8 million.234
Major northern producers of berries include:
Berry Exchange - Dunorlan, raspberries /blackberries Christmas Hills - Elizabeth Town, raspberries Naturally Blue - Lebrina, blueberries Hillwood Berry Farm - strawberries Aviemore - Gravelly Beach, blueberries Cherry Top - Lilydale, blueberries Crestview - Lilydale, blueberries Driscoll‟s/Costa JV at Elizabeth Town – the berry patch. Also in partnership with Burlington Berries for strawberries.
Constraints
Potential changes to quarantine restrictions which could allow apples to be imported from New Zealand to Australia might increase the risk of fire blight and other diseases becoming established in Tasmania, including the northern region.
232 This figure is taken from preliminary, unpublished data provided by the Department of Primary Industries, Parks, Water and Environment, from the draft Tasmanian Food and Beverage Industry Scorecard 2008-09. 233 ibid. 234 ibid.
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Tasmania‟s key competitors have a high profile in global markets. Market development and maintenance needs to be improved in order to maintain and grow market share in new and existing premium overseas markets.
Tasmanian fruit producers generally face higher production costs in terms of key inputs such as water, energy and labour, relative to global competitors. This is particularly a concern for pome fruit as there is increasing global competition from low cost production countries.
The issue of greatest concern is currently the cost of technical and business labour. Labour costs (including the taxation rate and superannuation for itinerant workers) are having a major impact on the sector‟s profitability and global competiveness. Availability of skilled and highly specialised staff is an on-going issue235.
Reduced investment by industry and government in research and development is impacting on research and development capacity. The ability to investigate and develop new technologies, production systems and new fruit varieties must be enhanced to remain competitive globally.
Access to water and surety of supply for irrigated fruit orchards is a lesser constraint with the development of irrigation systems, but it is vital to ensure that reliable supply is maintained and aligns with industry requirements.
The loss of a direct international shipping service from Tasmania and the increased port charges at Port of Melbourne placed a further burden on Tasmanian exporters, including the fruit industry. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport.
Utilising second and third grade fruit is crucial in developing profitability in this sector. Currently there is minimal processing so industry is heavily reliant on high pack-out results with limited outlets for value adding to second grade fruit.
Regulation not required for environmental, public benefit or transparency reasons presents a barrier to development but is a constraint to business. This may include regulation, tax arrangements and administrative processes and other issues such as variable planning schemes.
Managing generational change and a lack of succession planning is a significant constraint for some operations.
Opportunities
Tasmania‟s island status offers relative disease freedom giving production benefits and market access advantages, particularly in high value niche markets.
Increased market access into China and other parts of Asia, combined with rising affluence, freight economies and improved cold chain presents good export opportunities, particularly for apples and cherries.
Water surety and potential for increased access to water is improving through new irrigation schemes. However, the industry will need supporting infrastructure to pursue these opportunities.
There is scope to develop premium niche markets through Tasmanian brand recognition in international markets. This will be important for the fruit sector as volumes of export quality fruit increase.
235 Industry Survey to support the Northern Regional Economic Development Plan (Fruit Industry) 2012
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Recent significant investment and expansion by corporate entities in the state will see an increase in production of cherries, stone fruit and berries. Recent investment in the northern region by international berry companies Driscoll‟s and the Costa Group - including joint ventures236 - indicates the commercial potential of the northern region. Opportunities in other niche products e.g. goji berries, figs, pomegranates need further investigation.
Innovation such as utilisation of technology including SenseT237 and modern production systems to increase product quality, productivity, product development, value adding and processing will further increase productivity in the sector.
Climate change may see new market opportunities, with climatic conditions seeing the production of stone fruit moving further south.
Better utilisation of tourism infrastructure, including the combination of niche value adding with tourism will allow co-leverage to benefit two key northern region industry sectors.
236 Driscoll‟s Costa Exchange Media Release, 25/09/09 237 Part funded by the Australian Government through the Tasmanian Forests Intergovernmental Agreement (TFA)
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Poppy sub-sector profile - northern region
Snapshot
Tasmania‟s cool temperate climate, quality soils, reliable irrigation water and presence of existing production and processing capability provide the state with a competitive advantage in the production of high quality poppy crops. Crops are grown in the north, north west, north east extending to the midlands, the central highlands and the Derwent Valley with potential to develop areas in the southern midlands. Tasmania is the only state in Australia producing poppies for processing, although Victoria is pursuing the option.
The Tasmanian poppy industry was established on a commercial level in the 1960s. It has grown rapidly from cultivating 4 000 hectares of poppies in 1987 to 26 000 hectares in 2010. More than 30 000 hectares have been approved for cultivation in the coming season. At the same time productivity has increased dramatically. The average commercial yield active ingredients from poppy grown in Tasmania between 2007 and 2011 has been well above the yields achieved by other production areas such as Turkey, France and Spain. This is due to the large investments made into research and development for poppy varieties and production practices. Tasmania‟s high productivity is a competitive advantage for the state.
Tasmania is the world‟s largest producer of thebaine poppies. In 2010 Australia produced 181 tonnes of thebaine equivalent, accounting for 78 per cent of global production238. In the same year, Tasmania produced 25 per cent of the world‟s production of morphine contained in concentrate of poppy straw and is the only producer of oripavine alkaloid contained in concentrate of poppy straw.239
The three processors present in Tasmania - Tasmanian Alkaloids (Westbury), GlaxoSmithKline (Latrobe) and TPI Enterprises (Cressy) - expect Tasmania to produce around 300 tonnes of concentrate alkaloid this season. Production is expected to double in the medium term. Over the next two to three years the three processors are positioned to make capital investments that could total up to $100 million. The Tasmanian government is working with industry stakeholders to secure this investment in Tasmania.
Tasmania has led the way in poppy variety research and development. This research, development and extension has given the state a distinct production advantage over other producer areas. For example the Tasman poppy has recently been released which manufactures codeine in-field. At present, codeine poppies constitute a small percentage of the total crop, although its importance is expected to grow quickly.
Industry representatives report that in 2012 payments made to Tasmanian poppy growers is forecast to exceed $100 million for the first time and that production growth over the next seven years is expected to be similar to the last 10 years240.
Given that Tasmania has relatively high production costs it is imperative that productivity remains high and that industry continues to invest in achieving improved outcomes. Processor representatives argue that continued growth in the sector into the future is reliant on the ability to meet customer demand at all times. To ensure that this is possible processors need some flexibility in their operation. Producer representative groups believe that Tasmania can meet demand into the future and that local solutions are available to any surety of supply issues that arise.
Constraints
A significant concern of processors is that their customers see high levels of risk in relying on one location for the production of poppy raw material. The security of supply risk is more significant for thebaine products than morphine and other alkaloids due to Tasmania‟s dominance of the market. Increased flexibility in operation will help to secure Tasmania‟s position as the leading poppy producer in the world.
238 Technical Report 2011: Comment on the Reported Statistics on Narcotic Drugs, International Narcotic Control Board (United Nations), pg 77 239 Technical Report 2011: Comment on the Reported Statistics on Narcotic Drugs, International Narcotic Control Board (United Nations) 240 Poppy industry stakeholder consultation meetings 2012
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All processors have agreed that there are opportunities to expand production and productivity in the state but are looking for certainty that they can access alternative supplies to meet their customer demands if required.
The quality of land and experience of farmers in new, more marginal production areas can increase the risk of production as the industry expands.
The other element of land availability is the number of hectares poppy processors are able to access through growing contracts. Growers choose to accept growing contracts or not for a number of reasons. The range of factors that influence how much land growers make available for poppy production include: o price for crops o availability of land o availability of rotation crops that fit with poppy production o production support from processors and quality of plant material o relationship with processors and reliability of contracts.
Poppy Growers Tasmania and the Tasmanian Department of Primary Industries, Parks, Water and Environment (DPIPWE) are funding a research project to better understand the reasons that farmers choose to grow or not grow poppies in Tasmania. This will assist industry and government to address any areas of concern and improve land availability and management.
The quality of management of the land used to grow poppies has a direct impact on the quality, productivity and sustainability of poppy crops in Tasmania as well as the state‟s international reputation as a quality supplier of raw product.
All sales contracts for poppy material are negotiated in US dollars. The increase in the value of the Australian dollar to above or near parity with the US dollar has affected the competitiveness and profitability of the Australian poppy industry.
The high Australian dollar has also increased the competitive environment for other crops produced as part of farm rotations in Tasmania, reducing farm profitability and in some cases limiting the number of rotation crops available.
The regulatory environment that poppy growers and processors operate in within Tasmania is driven by the United Nations Single Convention on Narcotic Drugs 1961 and operates across all Australian jurisdictions. The system is considered complex and restrictive by some. Opportunities to review the operation of the regulatory and administrative environment should be pursued. Facilitation of government and industry interaction and a single point of contact would benefit the operation of the industry.
Freight is an essential element of Tasmanian economic activity. Tasmania‟s island status causes it to rely heavily on sea freight and the port system. Freight costs have been impacted in recent times by a variety of factors including the high Australian dollar, new interstate port fees and changes in international shipping, including a move to larger vessels and high-volume „hub and spoke‟ international shipping arrangements. These factors have caused unavoidable cost rises for Tasmania. The Tasmanian Government has prioritised the transport and logistics system as an area of on-going focus and has argued successfully for the retention of the Tasmanian Freight Equalisation Scheme (TFES) and other freight support programs that assist Tasmanian businesses to combat freight costs wherever possible.
Opportunities
Tasmania is regarded by the UN to be at the vanguard of poppy growing security and manufacturing operations. Tasmania‟s secure location gives major customers comfort as to the quality and legality of the product being purchased.
Expanding production and processing capacity to meet a growing global demand for raw alkaloid product.
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The relative pest and disease-free status of Tasmania fosters access to markets. Maintenance of biosecurity is a high priority for industry to ensure that this status can be maintained.
Opportunities exist to improve production techniques to achieve better productivity and efficiency and to increase scale of farming operations.
Skilled and efficient farmers offer an opportunity. However industry groups note that existing farmers are skilled, but some may need further training as irrigation schemes come on stream241.
There is an opportunity to achieve optimum yields and productivity on farm by adopting new technologies.
Research and development into processing techniques will also improve the productivity of the companies sourcing raw product from Tasmania. These research and development activities are likely to be conducted on an individual business level.
Provision of on-demand irrigation via a number of large irrigation infrastructure projects will enable the transformation of land throughout Tasmania to allow the expansion of value-added crops242 such as poppy and vegetables.
Recent research by TIA and DPIPWE has indicated that there is suitable land available for poppy growing in Tasmania. The report estimates that approximately 60 000 hectares of land is available on a sustainable basis. However the quality of the land available, and the expertise of the people growing poppies on that land, varies. Recent construction of irrigation infrastructure will assist in improving the reliability of production areas and potentially open up new areas for production.
Opportunities exist for processors and growers to work cooperatively with each other and with government research and extensions service providers to improve land management practices across the state.
Many industry representatives acknowledge that productivity varies significantly across farms and good opportunities exist to increase performance within the existing hectares planted. Opportunities to increase productivity through: o improved production practices o land management planning o information sharing between processors and other stakeholders on land use o research and development into poppy plant material and production techniques.
241 Ibid. 242 http://www.tasmanianirrigation.com.au, accessed 10/07/12
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Red meat sub-sector profile - northern region
Snapshot
The red meat industry - beef and sheep meat – is a major contributor to the Tasmanian agricultural economy, with approximately 3 000 farms carrying a total of about 446 000 beef cattle, and around 1 800 farms carrying a total of about 1.9 million sheep (2010).243 The processing sector, by contrast, is dominated by two large export accredited businesses - JBS Australia and Greenham Tasmania - account for approximately 90 per cent of red meat processed within the state. Tasmanian Quality Meats focuses on sheep processing and is currently upgrading its Cressy plant, to build on current production of export lambs.
In 2008-09, the value of the red meat produced from Tasmanian herds was approximately $207 million at the farm gate, representing approximately 23 per cent of the total value of agricultural (excluding non-food products) production for the year.244 Beef production dominates the red meat industry, accounting for approximately 75 per cent of total production, while lamb and mutton production contributes the remaining 25 per cent.245 In total, it is estimated that the industry contributes approximately $147 million towards Gross State Product; in 2011 beef exports totalled $112 million. In 2010-11 the northern region‟s contribution was $39 million246.
Like many of the state‟s food production industries, the red meat sector is small by Australian standards and while insignificant by international standards, exports are a significant component of the industry. Tasmania‟s point of difference relative to other jurisdictions is linked to its environmental factors, including: a ban on hormone growth promotants (HGPs) and a moratorium on genetically modified organisms (GMOs) relative freedom from disease a sustainable, predominately grass-fed, production system the development of differentiated brands and products based on a quality proposition (including MSA graded product, production environment attributes and identifying with place (e.g. Cape Grim Beef), within domestic and international markets strong animal welfare standards.
Approximately 75 per cent of processed Tasmanian beef is exported overseas. Japan is Tasmania‟s most important beef market, followed by the United States. Approximately 20 per cent of Tasmanian beef cattle are exported live to interstate destinations each year, for finishing and processing. About 35 per cent of sheep meat processed in Tasmania is exported overseas, mainly to the United States and the Middle East; the majority of the product is consumed domestically247. Tasmanian Freight Equalisation Scheme statistics show that in 2008-09 approximately 329 000 sheep and lambs were sent to interstate buyers, mostly for finishing and processing.248
The Tasmanian Farmers and Graziers Association and the Australian Beef Association are the industry peak bodies for this sector.
Constraints
The processing sector is constrained by its relatively small size and the age of waste management infrastructure at its processing plants, although planned/proposed upgrades to waste infrastructure at Longford will address this issue. The industry‟s lack of scale, particularly in the processing sector, is exacerbated by seasonality of supply and the fact that significant numbers of livestock are transported
243 ABS, Agricultural Commodities, Australia, 2009-10, Cat No 7121.0, 2011. 244 This figure is taken from preliminary, unpublished May 2011 data provided by the Department of Primary Industries, Parks, Water and Environment, from the draft Tasmanian Food and Beverage Industry Scorecard 2008-09. 245 ibid. 246 REMPLAN 247 Department of Primary Industries, Parks, Water and Environment, Tasmanian Red Meat Industry Profile, May 2009 available at http://www.dpiw.tas.gov.au/inter.nsf/Attachments/CART-7RA8DP?open. 248 Australian Government, Tasmanian Freight Equalisation Scheme - 2008 Statistics - from 1 July 2008 to 30 June 2009, available at http://www.centrelink.gov.au/internet/internet.nsf/publications/tf_s.htm
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interstate for processing. To offset this situation, meat wholesalers and retailers in Tasmania import a significant quantity of red meat from mainland processors to supply the Tasmanian market. Moreover, large processing facilities on the mainland operated by major retail supermarket chains process red meat from nearby regions and sell this product to Tasmania for sale249.
Any reduction in port access and/or sea freight services to the mainland is a significant constraint to competitiveness in Tasmania. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport
In terms of human resources, managing generational change and lack of succession planning for some enterprises is problematic, while for others access to a reliable and stable workforce is an issue both for abattoirs and producers. There are also potentially higher returns from competing uses of land - such as dairy, poppies and vegetables - which can make sustainable grazing a less profitable option.
In Tasmania there are negative consumer perceptions and stricter regulations around animal husbandry practices such as sheep mulesing, vertebrate pest management such as grazing native animal, and the environmental impact of red meat production, particularly water use and green-house gas (GHG) emissions. These have the potential to impact on enterprise profitability. Industry estimates that production levels could be doubled with appropriate native animal control250.
There is a ban in Tasmania on the use of GMOs and HGPs. The latter, in particular, has provided interstate producers who use these products an increase in productivity and output in measures such as feed conversion and carcase leanness. Conversely, this stance does offer Tasmanian producers a point of differentiation in the market place.
Regulation and „red tape‟, which present a barrier to development but are not required for environmental, public benefit or transparency reasons, is a constraint to business. This may include regulation, tax arrangements and administrative processes and other issues such as variable planning schemes. The impact of the carbon tax is not yet widely appreciated and most in the industry are adopting a „wait and see‟ approach251.
Opportunities
Tasmania‟s meat brand is underpinned by a relative pest and disease free status, a sustainable pasture based production system, a GMO moratorium and HGP ban. The potential exists for industry and government to capitalise on this differentiation by promoting the Tasmanian brand to achieve a price premium in niche markets where these characteristics are valued, particularly as paddock to plate product tracing/tracking systems develop. Quality assurance systems such as Meat Standards Australia (MSA) grading, current development of a national grass fed standard and a module to verify best practice environmental stewardship, will positively support these branding initiatives.
Developing improved farming practices and raising productivity will enable potential improvements including better adapted pasture species, more efficient use of pasture and aligning farm systems to processor/market requirements. This can enable better integration of meat production and irrigated cropping. For example, incorporating more legumes in crop rotations can increase the availability of soil nitrogen and reduce dependency on fertilisers.252
An increasing demand for food produced sustainably, both globally and domestically, and shifting consumer preferences for food produced locally, supports a positive outlook for the red meat industry in the
249 Industry Survey to support the Northern Regional Economic Development Plan (Red Meat Industry), 2012 250 Industry Survey to support the Northern Regional Economic Development Plan (Red Meat), 2012 251 ibid. 252 ibid.
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northern region. Both sheep and beef prices reached record highs in March 2011253 and strong market conditions have continued into 2012.
The Australian domestic market consumes 33 per cent of total Tasmanian production but accounts for 58 per cent of total value received, providing a buffer against export market and currency volatility254. Further, predicted demographic changes throughout Australia and the Asian region in the next 20 years predict an increased demand and affordability for red meat products255.
253 Meat and Livestock Australia, Meat and Livestock Weekly, Thursday 21 April 2011, available at: http://www.mla.com.au/Prices-and- markets/Latest-prices-and-indicators/Meat-and-Livestock-Weekly 254 This statistic was supplied by the Red Meat Council of the Tasmanian Farmers and Graziers Association 255 Hall, M. (2011), The Supply and Demand Dichotomy in Australian Seafood, SEGRA, Geelong. N.B. Dr Hall made comment that demand for red meat in Asia will trend in line with seafood (which was the key focus of the presentation)
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Vegetables sub-sector profile - northern region
Snapshot
Tasmania‟s cool temperate climate, quality soils and reliable irrigation water provide the state with a number of competitive advantages in the production of high quality vegetables. Production is centred in the north and north west of Tasmania, with some activity also in the midlands and the Coal River Valley.
It is estimated that the vegetable industry contributes approximately $191 million towards Gross State Product. The vegetable farming sector is defined by a large number of small growers. Of the small number of large farms, some are expanding their production through acquisitions and other avenues such as land leasing.
Key vegetables produced in Tasmania are potatoes, onions, carrots and peas. Potatoes are by far the most valuable crop and the most significant by volume.
The vegetable industry is made up of fresh, packed and processed sectors. The fresh vegetable sector is growing and it is beginning to rival the size of the processed (frozen vegetable) industry in Tasmania. While across Australia most vegetable production is for the wholesale fresh market, in Tasmania approximately 56 per cent of vegetables grown are for processing.256 Two large processing companies are located in Tasmania. Simplot Australia Pty Ltd has a vegetable processing facility in Devonport and one dedicated to potato processing at Ulverstone. McCain Foods has a potato processing facility at Smithton. Vegetables processed at these facilities are sourced from a variety of Tasmanian regions.
The only vegetable packing and value-add facility of any size in the northern region is Moore‟s Farm Fresh Vegetables Pty Ltd at Scottsdale in the north east. There are a number of growers who grow and pack their own vegetables, mainly onions, on an ad hoc basis. Some of the fresh vegetables supplies to the north west based packing companies based in and around Forth are produced in the northern region between Cressy and Hagley.
In assessing the state of the vegetable sector it is important to note each vegetable crop is one part of a whole of farm rotation and that the viability, potential and development of agricultural businesses must be viewed holistically. This is particularly true of Tasmanian farms which are highly diversified. The viability of the vegetable sector is closely linked to other crops such as poppy and pyrethrum as well as the red meat industry.
The Tasmanian vegetable industry is facing a period of structural adjustment. The frozen vegetable industry is being subjected to increasing competition from imported products. The high value of the Australian dollar is having a dramatic effect on competitiveness of Australian products and this is expected to continue into the short to medium term. Production costs in Tasmania are relatively high when compared with all other countries that produce frozen vegetables due mainly to freight, exchange rate and labour cost factors.
The growing fresh vegetable industry is dominated by a few large vertically integrated companies with well- developed supply chains. Markets experiencing particularly strong growth are leafy green vegetables and pre- packed fresh and ready to use vegetable products. Most fresh vegetable sales are protected from the impact of the high Australian dollar to some degree due to their perishability and the quality of imported fresh vegetables (as a result of biosecurity arrangements and the consequential impact on transport times). Products such as onions are an obvious exception.
Industry sources report that the vegetable farming sector is likely to shift business structures over the next few years, resulting in fewer and larger businesses and/or cooperative or leasing arrangements with smaller growers.
The Tasmanian Farmers and Graziers Association is the peak industry body for growers in this sector. The Tasmanian Agricultural Productivity Group represents businesses at the packing, value adding and service provision end of the sector. Industry representatives have mixed views about the future opportunities for the
256 IBIS World, Fruit and Vegetable Processing in Australia, C2130, Products and Markets April 2010, p.20.
Regional Economic Development Plan: Northern Tasmania | 142 of 164 vegetable sector. Industry recognises the cost of production for growing and processing vegetables remains high when compared to other producer nations with labour, key inputs and the exchange rate adversely affecting production costs. However Tasmanian growers and processors are efficient and deliver a good quality product.
While the processing sector is likely to experience pressure in the short and medium term and further shrinkage or diversification is possible, there are some encouraging opportunities available in the fresh sector for businesses able and willing to operate in the very competitive and challenging fresh market environment. Opportunities also exist with product development of fresh cut meal solutions and the development of other innovative niche products such as onion jams, freeze dried produce and other innovative vegetable based value added products.
Constraints
Small scale and relatively high cost production systems make it difficult to compete with large scale, low- cost producers, particularly when selling into a commodity market.
Rising input costs such as labour, power and water are affecting producer and processor profitability. The age and configuration of vegetable processing facilities can also affect efficiency and costs.
Reliance on the commodity, price-driven frozen process vegetable industry has placed pressure on grower profitability due to increasing competition from low-cost countries.
Limited local market results in reliance on interstate and export markets for growth and sustainability.
Growers for processors may have not developed the necessary skills to operate effectively in the fresh market. Skills required include marketing, business management, logistics and accessing and using preparation and packaging infrastructure.
The high value of the Australian dollar makes competing in international markets difficult and opens up Australia to increased imports, especially frozen and canned processed vegetables.
Physical isolation from large markets increases costs and affects competitiveness, particularly in the area of international exports. The loss of a direct international shipping service from Tasmania, and an increase in port charges at Port Melbourne, has compounded these constraints.
The market power of major retailers is considered a significant constraint. Those businesses selling to large retailers (particularly processed product) are facing increased price pressures from private label products and the strategy of limiting the number of branded products stocked by supermarkets, and the shelf space available to them. Two major retailers together control just under 80 per cent of supermarket sales and exercise considerable influence over prices and market access. This affects both growers and processors. However, larger producers, packers and processors are reliant on supermarkets to provide the market size they require to grow to a sustainable scale of operation.
Land use planning, zoning and variability in regulations across councils all have a negative effect on businesses‟ ability to operate effectively and efficiently and are disincentives for investment.
Access to affordable, suitably skilled workers in some areas of vegetable production, processing and throughout the supply chain is an ongoing problem, especially with the high average age in these industry- enabling sub-sectors.
Availability of sufficient volumes of affordable, reliable irrigation water in some key growing areas although, with recent investment by the Tasmanian government in irrigation schemes, this is seen as less of a constraint now by industry257,258.
257 Industry Survey to support the Northern Regional Economic Development Plan (Vegetable Industry A), 2012 258 Industry Survey to support the Northern Regional Economic Development Plan (Vegetable Industry B), 2012
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Regulatory burdens affect competitiveness, particularly when selling into markets accessed by countries with a lesser regulatory burden. Requirements around food safety, chemical use, food handling and management etc. are justifiably strict, however many imports into Australia are not subject to the same range of requirements and the costs associated with them. This places Australian producers at a disadvantage.
Managing generational change and a lack of succession planning for some operations is becoming problematic. This is exacerbated by other skills supply issues (see below).
Constraints relating to skills availability in the northern region‟s vegetable industry varied between industry groups, but there was agreement that access to seasonal, casual and skilled labour and the cost of labour were constraints. People not wanting to work in the industry and the loss of skilled workers to other industry (such as mining) were compounded by what is perceived within industry as a lack of access to suitable training and services (such as accommodation) for itinerant workers in the northern region259,260.
Any reduction in port access and/or sea freight services to the mainland is a significant constraint to competitiveness in Tasmania. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport.
Opportunities
Excellent growing conditions, together with longer ripening periods, deliver good quality vegetables. While other areas in Australia can struggle with vegetable quality and shelf life in summer months, Tasmania continues to produce high quality products. Opportunities exist to increase supply of fresh vegetables into domestic markets during warmer months.
Relative pest and disease-free status allows good access to markets. Maintenance of biosecurity is a high priority for industry to ensure that this status can be maintained.
There is capacity to expand the processing of frozen potatoes and other vegetables, particularly in the northeast of the northern region.
Growth in the fresh vegetable sector especially niche markets including leafy green vegetables, seeds and ready-to-eat products.
Replacement of fresh product supplied into Tasmania from interstate by local production.
Growing demand for high quality vegetable products in Asian markets.
Opportunities exist to improve production techniques to achieve better productivity and efficiency and to increase scale of farming operations.
Skilled and efficient farmers is seen as an opportunity, however industry groups note that existing farmers are skilled, but will need further training as irrigation schemes come on-stream261.
Product development such as chilled ready-to-use products.
259 Industry Survey to support the Northern Regional Economic Development Plan (Vegetable Industry A), 2012 260 Industry Survey to support the Northern Regional Economic Development Plan (Vegetable Industry B), 2012 261 ibid.
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Profitable cash crops such as poppies and pyrethrum are available to Tasmanian growers. These crops are not available to farmers in many other regions and supply valuable cash injections into Tasmanian farms. Alternative crops such as hemp may offer additional opportunities.
There is a rising demand for organic produce/vegetables for the fresh and processing (baby food) market which could be an opportunity for producers in the northern region.
Provision of on-demand irrigation via a number of large irrigation infrastructure projects will enable the transformation of land in the northern region to allow the expansion of value-added crops262. An increase in agricultural production also may provide the basis for increased, valued-added vegetable processing in the northern region.
262 http://www.tasmanianirrigation.com.au, accessed 10/07/12
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Wine sub-sector profile - northern region
Snapshot
The Tasmanian wine industry is a relatively small, but high value, high profile industry. There are two key grape growing areas in the north - the North East (Pipers River) and the Tamar Valley - covering a combined 785 hectares and producing a yield of 4 571 tonnes in 2012263. The Tamar Valley Wine Route encompasses these two wine producing districts and includes more than 20 cellar doors with the route stretching from Relbia, south of Launceston, to the northern Tamar Valley and east to the Pipers River region.264
The industry has close linkages to the tourism sector and makes a significant contribution to the Tasmanian brand. The Tasmanian industry is made up of a number of small wineries, vineyards and contract wine makers that produce cool climate wines of generally high quality and value oriented toward the premium and super premium end of the market.
Wine Tasmania is the peak body for Tasmanian grape growers and wine producers. Its members represent 98 per cent of total wine production in the state.
Tasmania has been relatively insulated from broader sectoral challenges and has continued to record increases in vine plantings. Though a very small producer, the state has emerged as one of the strongest wine producing regions in the country.
The main grape varieties grown in Tasmania are Pinot Noir and Chardonnay. The state also grows Riesling, Cabernet Sauvignon, Sauvignon Blanc and Pinot Gris varieties.
Over the five years to 2012, average annual production in Tasmania has been just under 8 000 tonnes of grapes and there are now 1 594 hectares under vines.265 Tasmania has approximately one per cent of the nation‟s vineyard area and produces less than 0.5 per cent of Australia‟s wine. Despite its size, Tasmanian wine represents some 6 - 7 per cent of sales in the premium and super premium wine categories. It has the opportunity to lead the Australian wine industry in matching supply with demand and growing its premium and super premium markets. Additionally, the average price paid per tonne for Tasmanian grapes significantly exceeds that paid for grapes from other regions of Australian, across all varieties.
It is estimated that the industry contributes approximately $75 million towards Gross State Product and employment is estimated at approximately 1 000 people. Export values are based on 40 per cent of production going interstate and eight per cent overseas.
There is potential to grow the industry, although it is considered that any significant or accelerated expansion will require investment from outside the state.
Opportunities do exist, however, as some large wine companies are looking to diversify their brands into the premium and super premium cool climate varieties in which Tasmania has a comparative advantage.
Constraints
At present, winemakers globally are dealing with the challenge of oversupply. However, Tasmania is insulated to some degree by virtue of the varieties and the premium focus of the wines produced.
Tasmania‟s cool climate results in a longer period required for grapes to ripen and therefore a longer growing season (September to May; in contrast, vintage on most interstate vineyards can be finished by March). Additionally, the average vineyard size in Tasmania is less than 5 hectares. As a consequence, there
263 Wine Tasmania, 2012 Tasmanian Vintage Report, http://www.winetasmania.com.au/files/Wine_Tasmania_Vintage_Report_2012.pdf, accessed 28/09/12 264 Tamar Valley Wine Route http://www.winetasmania.com.au/wine-route/tamar-valley-wine-route accessed 20/06/12 265 Wine Tasmania, 2012 Tasmanian Vintage Report, http://www.winetasmania.com.au/files/Wine_Tasmania_Vintage_Report_2012.pdf
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is an increased cost of labour in Tasmania per vintage and vine management is highly specialised and more labour intensive.
The high freight costs for the import of critical production inputs such as chemicals and glass bottles. The loss of a direct international shipping service from Tasmania and the increased port charges at Port Melbourne placed a further burden on Tasmanian exporters, including the wine industry. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared to road transport.
Much of the Tasmanian wine industry is relatively small scale characterised by high costs of production. Many small vineyard owners rely heavily on tourist trade coming to the cellar door. A combination of a high Australian dollar and weaker global economic conditions has contributed to a decline in tourism visitation to Tasmania and a fall in export sales resulting in many vineyards struggling to remain profitable. Added to this is the issue of access to casual labour at peak periods of production such as vintage. Furthermore, these constraints, overlaid on a backdrop of global macroeconomic uncertainty, have given rise to caution among investors which has resulted in limited availability to funds through private sector investment. This investment is essential for the wine industry in Tasmania to grow.
In a recent industry survey266, the key priority issues where government could have an impact were stated as:
1. Cost and structure of freight services including sea freight services. The Tasmanian Government administered the $20 million Export Freight Assistance Package to help local exporters reach international markets.
2. Reinstatement of the State Cellar Door Rebate Direct subsidies on cellar door wine sales from the Tasmanian Government ceased from 2004-05, after which time all expenditure previously allocated for the State scheme was provided to the Australian Government in support of the replacement national scheme. Since 1 July 2006, the Australian Government has provided wine producers with a Wine Equalisation Tax (WET) rebate of up to $500 000 each financial year, which equates to approximately $1.7 million (wholesale value) of eligible sales. The wine equalisation tax (WET) is a value-based tax which is applied to wine consumed in Australia. It applies to assessable dealings with wine (unless an exemption applies) which include wholesale sales, untaxed retail sales and applications to own use. Several mainland states also offer their own state-based rebate, over and above the Australian Government scheme. This has placed Tasmanian producers at a relative disadvantage in the past. It should be noted though that New South Wales recently ceased its scheme and South Australian significantly reduced its state-based rebate.
3. Support for promotional/tourism activities under the Tasmanian Brand Tasmania Unbottled, a Wine Tasmania event supported by the Tasmanian Government, is the state‟s major annual national wine promotion event undertaken by more than 25 Tasmanian vineyards in key national markets, that showcases Tasmanian wine to more than 1 000 trade influencers and discriminating consumers.
Other joint industry and government promotional activities include inward buyers visits which promote the Tasmanian brand of food and wine in combination with tourism, and also Tasmanian food and wine branded showcases at various trade and consumer shows such as Fine Food Melbourne; and The Good Food and Wine Show.
Current legislation requires that all bottles containing Tasmanian wine are branded „Tasmanian Wine‟ which, by proxy, provides identification of the product as being Tasmanian. Further, senior representatives from the Tasmanian government sit on the Brand Tasmania Council alongside business
266 Industry Survey to support the Northern Regional Economic Development Plan (Wine Industry), 2012
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leaders across the spectrum of Tasmania‟s primary production267. Brand Tasmania collaborates with leaders in various industry sectors. It is accepted that an increase in tourist numbers will result in a downstream increase in visitation to wineries.
Opportunities
Tasmania has a growing reputation for the production of premium cool-climate wines. Despite current concerns over water security in other parts of Australia, Tasmania has an abundance of water and land available for growing grapes. These factors were contributory to Tasmania being chosen in 2012 by a leading international wine magazine, The Drinks Business, as second only to China as the best place in the world to invest in the wine industry.
Brown Brothers, with the purchase of Tamar Ridge in 2010, is the most recent significant interstate wine sector investor in the northern region. Previously, Yalumba (Jansz Tasmania Vineyard), Kreglinger (Pipers Brook Vineyard) and Constellation (formerly Hardy wines, Bay of Fires Winery) have also made significant investments in the northern Tasmanian wine region. The motivation for these purchases has generally been a desire to produce high quality Pinot Noir and sparkling wine. Mitigating against the potential future impact of climate change in interstate growing areas has also been highlighted as a key driver for investment in Tasmania.
Private sector investment in the northern region‟s wine industry is supported by government who will continue to work to further build the demand for Tasmanian wine through a range of branding activities, thereby creating an environment to attract investment. The resulting investment will increase economies of scale providing industry with greater wine volumes to market nationally and internationally, particularly the growing markets of Hong Kong, China and Canada.
The wine sector simply cannot grow without access to skilled labour. The need for ongoing training in the wine industry has been recognised by the government, and continued support for training in wine and viticulture was reaffirmed in May 2012268.
A key component of sustainable viticulture is the availability of reliable water supply for irrigation and/or frost protection at key phases in the growing season. Tasmanian Irrigation Pty Ltd is progressing a suite of regionally significant irrigation schemes in many parts of Tasmania; some of these schemes have the potential to positively impact the wine sector. Six of the fourteen new schemes being developed by Tasmanian Irrigation are in the northern region.
267 http://www.brandtasmania.com/show.php?ACT=Public&menu_code=200.100 accessed 20 June 2012 268 Tasmanian Government, http://archive.media.tas.gov.au/release.php?id=34813, accessed 27/06/12
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Forestry and related products sector profile - northern region
Snapshot
The Tasmanian timber industry has been operating since the early 1800s and harvesting has been in operation in the same areas of the state for over two centuries. On the west coast and in the midlands, smaller areas of native forest timber occur where rainfall is over 1 000 millimetres annually and elevation is less than 1 000 metres.269 There is a broad range of ecologies in Tasmania which support plantations of hardwood (predominantly Eucalyptus globulus and E. nitens) and softwood (Pinus radiata) from sea level to 700 metres. Tasmania is the most forested state in Australia with 3.3 million hectares, or 50 per cent, of its land under forest cover.270
The Tasmanian forestry sector is an integrated industry that encompasses both native forest and plantation resource (both softwood and hardwood), the production of logs, woodchips, hardwood and softwood sawn timber, speciality timbers, pulp and paper production, veneer, fuel wood and other wood products. Principal export products from this industry sector are paper, woodchips, sawn timber products, timber veneer and forest management services. Tasmanian forest contractors and timber workers are also sought after by interstate logging and timber processing operations.
Private forest activity has traditionally accounted for a significant proportion of Tasmania's wood production. The resource ownership is disaggregated and management strategies vary as a consequence, but harvesting on private land has a firm place in the economic fabric of rural Tasmania.
In the last decade significant plantation resource has been established and is now approaching maturity. Fallout from management investment schemes (MIS) could increase investment opportunities through exchange traded funds (ETF) products in the short to medium term. Highest and best use may see a return to grazing/cropping for some of the plantation estate on private land. Selective harvesting of natural forest from private land can continue to provide an important source of high quality forest products.
The industry is also undergoing significant restructuring due to a change in the resource mix available. Hardwood timber derived from plantations will increase while logging of native forests is declining in the current high Australian dollar environment due to difficulties in moving residues. Thus, current focus is to find alternative timber processing residues - mill offcuts, flitch and sawdust - to be investigated for a wider range of uses other than woodchips. A variety of products with added value such as engineered timber products, bioethanol and biochar are among a range of options being considered in terms of their contribution to a sustainable business model in a modern forest and forest products industry.
There also remains the opportunity for the development of downstream value adding through the establishment of a pulp mill that meets world‟s best environmental standards.
Since 2006, the Tasmanian forest industry has been impacted by the effects of the global financial crisis, the high Australian dollar, declining woodchip sales to Asia and the collapse of the Managed Investment Schemes (MIS) which have all had economic and employment impacts on the industry.
Furthermore, Tasmania‟s largest forest products company, Gunns Ltd, has recently gone into administration, which adds to the complexity of the current repositioning of the industry.
At the time of publication for this document, discussions were continuing between industry, union, community, and environmental organisations to develop the Tasmanian Forests Statement of Principles to underpin a consensus on how to balance the conservation of Tasmania‟s forest resources with their sustainable development and management.
This process, known as the Tasmanian Forests Intergovernmental Agreement (TFA), has been designed to support forest workers, contractors and communities. It has been developed in response to the changes that
269 Regional Planning Atlas (1947), Directorate of Industrial Development 270 www.forestrytas.com.au/sfm
Regional Economic Development Plan: Northern Tasmania | 149 of 164 are occurring in the forest industry due to market forces and product demands. The envisaged agreement would allow the forest industry to focus on adapting to market changes, protecting the communities and families that rely on the sector to survive, within a framework of broader community acceptance than in the past.
At present, the outcome of the TFA process was still unknown. The Tasmanian Government‟s view is that a negotiated agreement is the best way of managing the change that is occurring in the forest industry.
The Tasmanian Government business enterprise, Forestry Tasmania, is also undergoing restructuring to provide more efficient delivery of its range of functions in the current market environment. This should have little impact on the capacity of the forests to provide resource; the model for mechanisms and responsibilities for its delivery are expected to be different, although at present the details have not been released.
Currently, major operators in the northern region are: Export woodchip facilities - Artec and Smart Fibre at Bell Bay Major hardwood sawmilling operations - Exeter Sawmills, Longford Sawmills, Barber‟s Sawmill (Launceston), McKay‟s Sawmill (St Helens) Major softwood sawmilling operations - Bell Bay Sawmill Specialty timbers sawmilling - Knots More Wood (Exton) Kiln drying facilities - Exeter Sawmills, Neville Smith Timbers (Launceston), Ken Pugh Timber.
Constraints
Views relating to the forest and forest products industry in Tasmania are polarised in some sections of the community, particularly in relation to the harvesting of native forest, expansion of new plantations and creation of forest reserves.
Perceptions in relation to sovereign risk, the limited lifespan of the Tasmanian Regional Forest Agreement which is due to expire in 2017, and concerns over resource security all have the potential to impact on investors‟ confidence.
Uncertainty in relation to the future of the Gunns Ltd plantation resource, with the company currently under administration.
There are limited opportunities to increase plantation and native forest resources on public land.
The shift from native forest to plantation has implications for the future of existing native forest based industry (sawmill and veneer) as the plantation resource is inappropriate for their current markets and processing technology. However this resource might be suitable for structural products.
The increasing proportion of supply of higher fibre yielding plantation logs over mature native forests residues will force change in product availability and the capacity to process the wood resource.
The strong Australian dollar reduces the industry‟s ability to compete in international markets. An increasingly plantation resource-based industry, exposed to strong international competition with cheaper land values, labour costs, extraction costs and transport costs create further challenges.
In the absence of incentives, new plantation investments could be unattractive due to the long lead time between planting and harvesting.
An inhibited domestic processing sector, a lack of international market certainty and increased market performances by other land-based sectors such as dairy, red meat and agriculture may increase the incentive for conversion of land for other uses as existing plantations are harvested. This may have an impact of the sustainability of the plantation sector.
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The native forest sector - particularly sawmilling - requires a market for large volumes of forest and sawmill residues to make harvest and processing of high value products economically sustainable. The plantation sector also requires a market for residues.
Some SMEs in the sawmilling sector may lack scale to undertake major investments in initiatives such as re-tolling for a changing resource, downstream processing upgrades, and marketing.
The national and international regulatory environment for carbon is uncertain. While it is likely that the forest and forest products industry, as a producer of long-use wood products such as flooring, framing and furniture will be a beneficiary of the carbon economy, it is difficult to price-in this value. The Carbon Farming Initiative has not provided any incentives for commercial forest owners.
Infrastructure - any reduction in port access and/or sea freight services interstate. Whilst the Tasmanian Government has limited opportunity to influence the cost of freight across Bass Strait, it will continue to focus on ensuring that all eligible claimants secure the benefits of the Tasmanian Freight Equalisation Scheme. The Scheme was devised to compensate Tasmanian industry for the disadvantage caused by having to move cargo across Bass Strait by sea, compared with road transport.
There is a lack of new investment, ageing capital in existing saw mills and paper mills. In addition, there is intense competition from interstate and overseas.
Managed Investment Schemes (MIS) have not provided expected yields, including cessation of lease payments from MIS operators.
Opportunities
Owing to the availability of resource in Tasmania, there is an opportunity to expand fibre-based processing operations such as a pulp mill, rayon (dissolving pulp) and bioethanol.
Product development research, new investments and retooling will be required to develop a viable hardwood plantation processing industry due to the smaller size and characteristics of wood from native forests. Achieving competitive costs of production will be essential if Tasmania is to compete in export markets.
Residue-based processing, such as biomass, biochar, biofuel, wood pellets and briquettes could be developed for entry into the export market.
There is potential for growth in the tissues and other paper product manufacturing sector for products such as toilet paper, kitchen rolls and facial tissues.
In the carbon aware economy, trees and durable timber products such as furniture, flooring and framing are being viewed as a form of carbon sequestration which provides a comparative advantage to timber over materials such as steel. Further, sophisticated investment mechanisms, such as Exchange Traded Funds, may increase further the value of Tasmania‟s plantation resource.
There is now greater recognition that the forestry industry is a renewable industry which can provide sustainable long term benefits for Tasmania.
Consumers have an increasing recognition of wood as a renewable resource which can assist in reducing carbon emissions through the replacement of emissions intensive non-renewable products with wood products.
There is a potential for increasing markets for Tasmania‟s specialty timbers such as blackwood and myrtle. However access to specialty timbers for value-adding is contingent on a broader functioning timber industry as specialty timbers are effectively a by-product of broad scale timber harvesting.
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Alternative products could be explored to increase the variety of products derived from plantation and regrowth timber. This includes engineered wood products, veneer, plywood, laminated veneer lumber, cross-laminated timber and oriented strand board.
Tasmania‟s resource and knowledge of silviculture could be enhanced greatly in a competitive market with certification of sustainably produced timber.
There is an increasing demand from end users for Forest Stewardship Council certification of forest products.
The number of prefabricated houses and multi-storey timber buildings are increasing in the market and there is an international trend for greater use of wood products in environmentally friendly buildings.
An increase in demand for timber end products, supported by an enabling regulatory environment, will increase the attraction of land owners and investors to expand tree planting on private land.
Tasmania‟s climate and soils can support commercial forestry. The data that will become available from the SenseT271 project will assist this endeavour further and also provide information which may confer international certification for plantation fibre exports.
271 This project is funded by the Australian Government under the Tasmanian Forests Intergovernmental Agreement
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Mining and mineral processing sector profile - northern region
Snapshot
Mining and mineral processing are of long-standing importance to the northern region. In 2010-2011, this sector in the northern region contributed $407.2 million to the Tasmanian economy.272
Mining
Gold has been mined in the northern region since the 1850s at Mangana (1852), Lisle (1878), Gladstone (1880), Mt Victoria (1882) and Warrentinna (1883). However, the mines at Mathinna and, especially, Beaconsfield were the epicentres of gold production with more than 1 000 000 ounces of gold produced up until 1930.273 Other minerals such as limestone (Flinders Island), silver and lead (Scamander) tungsten (Rossarden) and deposits of radioactive ores (Avoca and Rossarden) have been identified.274
Alluvial tin mining operations were active in Tasmania‟s northern region from the early 1870s, particularly in the Ringarooma Valley. At that time, value-adding mineral processing was prominent in the region with tin smelting occurring along the Tamar River. The main mining operations in north east Tasmania are:
The Cornwall Coal Company, located at Fingal, is a subsidiary of Cement Australia and is currently the only supplier of coal mined in Tasmania. The major consumers of Tasmanian coal are the Cement Australia plant at Railton and the Norske Skog newsprint mill at Boyer275.
Bis Industries has operated quarries in northern Tasmania since the late 1970s and in July 2008 acquired further mining leases which provides Bis Industries with the capacity to supply approximately 1 000 000 tonnes of crushed quarry products per annum276.
Sibelco Lime (Tasmania) Pty Ltd holds two leases and a further two licences in Tasmania‟s north277 and quarries 107 000 tonnes of stone and 85 000 tonnes of limestone products annually in the Mole Creek area. Limestone is sold principally to primary producers to counter soil acidification278. Beams Brothers have operated a quarry at Flowery Gully since the 1940s and produce 180 000 tonnes of limestone and dolomite which is used in primary production279.
Mineral processing
Following the extensive period of hydroelectricity development in Tasmania - from the building of the hydroelectric power station at Waddamana (1916) and the completion of the Anthony Power Development (1994) - mineral processors were traditionally attracted to Tasmania by the availability of abundant, low cost electricity generated from the island‟s hydro electrical schemes. The state is home to several major mineral processing operations. Bell Bay is the major mineral processing centre in the northern region where there is an aluminium smelter and an electro-metallurgical smelter to produce ferro-manganese, silicon-manganese, and sinter.
The main mineral processors in the Bell Bay industrial area are:
The Tasmanian Electro Metallurgical Company (TEMCO) ferro-manganese smelter at Bell Bay was opened in 1962. TEMCO is now part of the BHP Billiton group. The smelter takes manganese ore, iron ore and coal from interstate and mixes it with local quartzite and limestone to produce ferro-manganese and silico-
272 Compelling Economics, op.cit. 273 http://www.mininghistory.asn.au/mining-heritage/tasmanias-mining-heritage/ accessed 13/04/12 274 Regional Planning Atlas – Economic Resources of Tasmania 3rd Edition, Tasmanian Government, c.1955 275 http://www.miningoilgas.com.au/index.php/products/a-z?sobi2Task=sobi2Details&catid=12&sobi2Id=175 accessed 12/07/12 276 http://www.bislimited.com/forms/aboutquarries.aspx accessed 12/07/12 277 http://www.mrt.tas.gov.au/webdoc/servlets/com.geometryit.manager.ActivityManager?f_actName=clientDetails&f_actEvent= home&f_clientId=96474 accessed 12/07/12 278 http://www.sibelco.com.au/Products/AglimeContact/tabid/163/Default.aspx accessed 12/07/12 279 http://www.examiner.com.au/businesses/landscapesupplies/beams-bros/74383.aspx accessed 12/07/12
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manganese alloys that are important in overseas steel production. Eighty per cent of TEMCO product is exported to 14 overseas countries with the balance to the interstate market, mainly to BlueScope Steel. TEMCO has become an efficient, low cost, world-class producer of manganese alloys. TEMCO employs 280 FTE in times of peak production. In 2012 a review of operations saw the site close and re-open three months later with an expectation the plant will continue to operate in a leaner environment with reduced contractor numbers.
The Pacific Aluminium Pty Ltd aluminium smelter at Bell Bay converts alumina produced from Queensland- sourced bauxite to aluminium metal for export mainly to the Asia Pacific region. The smelter employs around 492 FTEs and between 30 and 50 full-time contractors on any given day. It has been estimated the economic benefits generated by the smelter‟s operations create an additional 1600 direct jobs. The smelter is one of the state‟s largest electricity consumers and a competitively-priced power supply agreement with Hydro Tasmania in 2012 has ensured the continuation of the plant‟s operations.
Ecka Granules, located adjacent the Pacific Aluminium plant at Bell Bay, processes aluminium to produce products including aluminium powder used in explosives, metallic paints and solar panels. Annually the plant processes significant tonnages of aluminium (70 000 tonne), copper (25 000 tonne) and non-ferrous metals280.
Constraints
The performance of the mining and mineral processing sector will remain heavily dependent on global economic conditions. Rising energy costs have reduced Tasmania‟s competitive advantage in relation to power costs. Tasmanian energy prices, whilst still competitive, are no longer significantly lower than those in other jurisdictions. Furthermore, economic uncertainty and exposure to changes in exchange rates and commodity prices are also having an impact on investment decisions.
Currently, any company that has a facility (plant, factory, premises or similar) directly emitting more than 25 000 tonnes of carbon a year, will pay $23 a tonne for that pollution. Whilst the full impacts of the carbon price are not yet fully understood many businesses, especially those that are trade exposed and emission intensive, have expressed concerns about the potential competitive impacts of carbon pricing.
There is also continuing concern over environmental and land use issues such as agriculture compared with mining, and reservation versus economic development within the mining sector which may impact on the attractiveness of investment opportunities for mineral processors.
The loss of a container shipping service out of Bell Bay has added significant costs to the mineral processing industries based at Bell Bay as products that cannot be shipped in bulk from Bell Bay must be transported to Burnie or Devonport for containerised shipment.
Opportunities
The abundance of relatively cheap industrial land is a significant benefit for operating in Tasmania. Multinational companies such as BHP Billiton which are reviewing operations in other parts of the globe have chosen to maintain and/or upgrade their operations and facilities in Tasmania. A stable population/labour force and Tasmania‟s status as Australia‟s largest producer of renewable energy can also promote the state as a sound place for investment.
Further downstream processing by existing and prospective mining operations.
Workforce development has been seen by industry as an opportunity, with the upskilling of existing staff and training of new staff seen as key priorities.281
280 http://www.development.tas.gov.au/?a=57908 accessed 13/07/12 281 Industry Survey to support the Northern Regional Economic Development Plan (Mineral Processing), 2012
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Examining synergies within transport infrastructure to lower costs for mining and mineral processing operations is crucial. Currently, containerised cargo from Bell Bay must travel up to 180 kilometres by land to the port of Burnie. Potential funding for upgrade of Frankford-Birralee Road to improve travel times will be sought under the Australian Government‟s Nation Building 2 program. In addition, TasRail is undertaking an upgrade of the Georgetown rail yard within the Bell Bay industrial precinct to facilitate more efficient movement of containerised materials from industries in the Bell Bay area to the Port of Burnie.
Tasmania is progressive in its use of alternative energy sources and energy co-generation. The wind farm development at Musselroe Bay, the availability of gas power from the Bell Bay power station and the abundance of hydroelectricity will further enhance the region as an environmentally sustainable area for heavy industry to operate.
A reformed and unified planning scheme in Tasmania will better identify and co-ordinate the strategic planning of land available for a variety of uses including mining and mineral processing. Furthermore, continuing the development of a Class C land fill “cell” in the south of the state to redress the current lack of a controlled waste disposal site in the state will be a boost to mining and mineral processing in the northern region.
Development in countries such as China, India and Indonesia continue at a robust pace which provides extended opportunities for investment in Tasmania. Proto Resources has completed detailed drilling for nickel laterite deposits at Barnes Hill and work has received a Mining Lease. The metallurgical testing and feasibility study are nearing completion, and Barnes Hill is slated to commence mining with a potential 26- year mine life at 250 000 tonnes per annum282. Another project that is progressing is Hardrock Coal Mining Pty Ltd‟s project to develop an underground coal mine and associated infrastructure in the Fingal Valley. The company aims to mine one million tonnes of coal per year with plans to increase production in the future.
282 2011 Tasmanian Minerals Council Conference Program
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Tourism sector profile - northern region
Snapshot
Statistics at a glance
Total visitors to Tasmania: a total of 837 400 people visited Tasmania on scheduled air and sea services in the year to March 2012. Total nights: 7.64 million nights with an average length of stay of 9.1 nights per visitor. Gross State Product (GSP) (2009-10): $2.21 billion, 9.4 per cent of Tasmanian GSP, while hospitality contributed $576 million to GSP. Employment: Tourism directly supports 17 000 people283 (7.2 per cent of Tasmanian total employment).The Hospitality industry directly supports 20 000 people or 10.2 per cent of the Tasmanian workforce. Number of Hospitality businesses in Tasmania: 1 995 hospitality businesses operate in Tasmania (818 in Greater Hobart, 213 in the southern region, 506 in the northern region and 30 regional areas, not specified). Hospitality is the third largest employing industry in Tasmania.
In the 12 months ending March 2012, the northern region attracted 372 700 interstate and international visitors who spent one or more nights in the region. These visitors stayed a total of 1.44 million nights. The region also attracted a further 380 000 Tasmanian visitors who stayed overnight.
Holiday visitors account for 61 per cent of the total overnight visitation, 21 per cent came to visit friends and relatives, 13 per cent travelled for business, conferences or employment purposes and five per cent for other purposes.
There are more than 550 mainstream tourism businesses operating in the region, made up of accommodation, attraction, tours and hire businesses. There are also 506 hospitality businesses operating in the northern region. Some of these are accommodation providers counted above but many are in addition to the mainstream tourism industry and include restaurants, cafes, pubs, clubs, and caterers.
Hospitality is considered to be providing service that is respectful, friendly and focussed on patrons receiving an experience that is reflective of their perceptions of high quality. Tourism and hospitality combine to make Tasmania both a very liveable and highly appealing place. It is important to recognise that locals consume more than 70 per cent of hospitality services, and most hospitality operators are reliant on both local, and visitor markets to be sustainable.
The importance of tourism to the state and the region goes beyond direct economic impact of the sector itself. The first experience of Tasmania many people have is through tourism, which can lead to increased purchases of Tasmanian goods, investment in Tasmania, establishment of businesses and business connections and migration to the state.
Hospitality and tourism businesses in regional areas make significant contributions to their communities. Hospitality businesses provide meeting places, sponsorship of sporting teams and community groups and a source of employment for local populations. Hospitality businesses whilst catering for visitors are essential to the on-going liveability of regional communities.
Tourism plays a vital role in the life and economy of small communities by supporting many non-direct tourism businesses and providing communities with viable services and product lines they would otherwise not be able to support. Tourism also helps with attracting investment in infrastructure, conserving natural and cultural resources and encouraging social development and understanding.
The main gateway to the northern region is through Launceston Airport. The region includes significant tourism assets and infrastructure such as Barnbougle Dunes, World Heritage-listed convict sites such as the
283 Tourism Satellite accounts 2009 -2010 – The Economic Contribution of tourism to Australian states and Territories. Tourism Research Australia, Canberra 2012.
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World Heritage-listed Woolmers and Brickendon Estates, Launceston‟s Cataract Gorge and the stunning coastal landscapes of the Bay of Fires on the East Coast. Launceston is also the access point to Flinders Island.
The region is well known for its food and wine. It is one of the best cool-climate wine regions in Australia and home to the Tamar Valley Wine Route. The Tamar River is at the heart of the region surrounded by dramatic mountains and valleys with Ben Lomond National Park to the east, Narawntapu National Park to the north and the Great Western Tiers to the west that lead to Cradle Mountain.
Launceston is a vibrant city with enviable heritage and cultural assets. It has some of the country‟s best preserved architecture, including the newly restored Queen Victoria Museum and Art Gallery at Royal Park. The city is surrounded by a network of historic villages which add to the appeal of the region, including Beaconsfield, Low Head and George Town, Evandale, Longford, Westbury, Deloraine and Ross.
Launceston attracts visitors for conferences and events all year round, reducing the impact of seasonality on the city. The region hosts a number of significant events throughout the year including Festivale, Targa Tasmania, V8 Supercars and Hawthorn Football Club AFL games.
Constraints
Tasmania is reliant on the domestic market. The strong Australian dollar, low-cost air carriers and the attractiveness of international destinations have made it more popular than ever for Australians to holiday overseas. This is affecting all domestic holiday travel in Australia. Tasmania is also not a cheap destination and with combined airfares, accommodation and activities there can be a significant outlay for a holiday destination.
Reduced air access in 2011 and 2012 made a significant impact on visitation to the state, particularly between Melbourne and Tasmania. Not only did this make it more difficult to find seats on many flights, but it also led to higher fares. The result was a corresponding drop in visitation from Tasmania‟s key source market of Victoria. Despite scheduled increase in air capacity in the later part of 2012, the state is likely to experience on-going fluctuation in capacity which will periodically create access constraints for the tourism industry.
Tourism and hospitality are labour-intensive industries that compete with other sectors for staff. The northern region faces constraints in terms of recruitment of skilled employees including cooks, chefs, food and beverage attendants and gaming supervisors. Much of the hospitality industry suffers from poor career perceptions. The hospitality industry has been reluctant to invest in skilling their employees due to the transient nature of the workforce. This has perpetuated a cycle of little training investment, employee perceives no opportunities for growth and development and leaves the business and in many cases the industry.
Further to this, there are substantial challenges for tourism businesses to sustain their workforce during the seasonal downturn. Award penalty rates have a significant impact on the viability of tourism businesses that operate seven days a week including public holidays. The hospitality industry has been facing continual wage rises in opposition to declining trade and profitability across the sector. Australian Bureau of Statistics (ABS) data demonstrates the rise of hospitality employee compensation in contrast with stagnant or declining profitability for business operators. The cost of employment results in “break-even” at best on public holidays and results in many business closures even during peak visitation periods.
Australian Bureau of Statistics data shows hospitality business entries and exits is almost equal with a turnover rate of 15 per cent. The industry suffers from low barriers to entry with few requirements for new operators to meet. The impacts of this are far reaching, with some inexperienced operators negatively affecting the reputation of the industry.
Current shifts in travel behaviour have resulted in more Australians using domestic holiday travel for shorter stays or breaks rather than longer holidays. While visitors are more likely to tour and stay in regional communities as part of a longer holiday, the current growth in shorter city-based breaks has created new challenges for northern Tasmania. The dispersal of travellers to regional towns and locations,
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particularly for overnight stays, is an on-going challenge for the future growth and development of the region.
Tourism is a seasonal industry. Tourism businesses aim to generate most turnover and profitability during the peak and shoulder tourism periods to carry their business through the off-peak season and ensure their year-round sustainability. In the northern region, the outlying towns generally feel the slow winter period more keenly than those in the city.
There is limited capacity in conference infrastructure in the region. There is no contemporary purpose- built conference facility in Launceston city and this limits the city‟s capacity to host large conferences. The quality and scale of current conference facilities does not create demand in this market.
As around 65 per cent of all visitors to Tasmania have been before, continuous improvement of products and experiences is crucial to the on-going appeal of the state. The ability of tourism operators to reinvest in their business is constrained by high operating costs including the increase in utility costs and labour at a time of stalled visitor growth. There has been limited investment in new products in northern Tasmania in the last five years and there are no significant projects on the horizon.
The lack of a signature iconic experience or product with broad appeal in northern Tasmania is a major impediment to the region attracting both a larger share of visitors to the state and stimulating further investment in tourism product.
Difficult access to local produce that is exported to other states and overseas is a constraint to developing the appeal of the region. Whilst exports are positive for the producers, there would be much benefit in establishing a framework to allow Tasmanian restaurants, cafes and food services providers to access some of this produce to showcase within the state.
Significant regulation of the hospitality industry is a key constraint facing the industry. The hospitality industry in Tasmania is affected by multiple regulatory bodies, including the Department of Health and Human Services (smoking), Department of Treasury and Finance (Liquor and Gaming), and local councils (food safety). The cost of compliance, including reporting and inconsistent application of regulations, leads to operators being required to invest in additional fixtures and fittings, equipment and processes.
Opportunities
The tourism industry is organised around local, regional, state and federal-level planning and delivery. At a regional level a recently established industry-led Northern Tasmanian Regional Tourism Organisation will enable a strategic approach to tourism management of the region. There is significant new opportunity to address industry fragmentation, alignment of regional tourism resources, and to drive regional demand and dispersal through cooperative industry marketing programs that are aligned or integrated with Tourism Tasmania‟s marketing activity. There has never before been a regional tourism body in northern Tasmania with the level of local and state government funding and industry commitment as this new independent peak industry body.
There is an opportunity to leverage the confidence shown by Virgin, Jetstar and Tiger Airways in Tasmania as a tourist destination with a significant increase in capacity to and from Tasmania from August 2012 to build greater demand for the state. There is also an opportunity to leverage Launceston Airport‟s affiliation with Melbourne Airport and the recent terminal upgrade to attract more services into Launceston. Also strengthen the link between Launceston Airport and the city which currently has little public transport options.
Launceston contains a critical mass of boutique experiences that could be tied together. There is an opportunity for local government to create a distinctive tourism precinct in Launceston and draw together a range of tourism experiences and services and build on the heritage experiences in the city.
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Opportunity exists to leverage the recent World Heritage listing of convict sites around Tasmania including Woolmers and Brickendon Estates in northern Tasmania, and develop meaningful interpretation of the region‟s rich built heritage and settlement stories that hold significant interest for the „heritage seeker‟.
There is potential to further develop food and wine tourism experiences in the region. Premium sparkling wine is emerging as an opportunity in the Pipers River region. Cellar door and food tourism experiences can help to drive sales and demand for new products.
Access to local produce is vital for the hospitality industry to operate effectively. High quality producers who find a suitable balance between supplying local businesses and fulfilling export market needs contribute strongly to the Tasmanian brand. With Tasmania increasingly recognised as a gourmet produce destination, there are opportunities for restaurants, and other hospitality businesses, to collectively identify their needs for produce and approach the producers directly. This is a key strategy to showcase produce within the region and support demand for Tasmanian produce by export markets.
The northern region would also benefit from engaging with key target markets for labour to communicate the benefits of working in hospitality and create a larger pool from which to select employees. Northern Tasmanian hospitality businesses have opportunities to access skilled labour by establishing relationships with schools and Vocational Education and Training providers. Whilst skilled employees are in short supply the industry has the capacity to undertake much of its training in-house. Identifying and developing priorities for in-house training for new employees would contribute to improving service standards as well as professionalism across the industry.
The Tasmanian hospitality industry is an ideal test bed for an industry-wide workforce development strategy. This strategy could adopt a universal approach by promoting hospitality careers to traditional markets such as school leavers and seeking to redress attrition of employees from the industry. If perceptions of hospitality careers can be improved whilst growing employer understanding of retention strategies, the industry will be able to compete successfully with other industries for a quality workforce.
There is a need to minimise the overlapping of major events during the same period and create a robust regional events calendar. Potential also exists to leverage significant winter events in Launceston to drive regional dispersal in the low season by maximising opportunities for pre and post touring and driving repeat visits from events and conferences.
There is capacity for further development and marketing of Cycling and Mountain Bike experiences, particularly in the Meander Valley, Dorset and Flinders Island areas where local government have invested in development of cycling infrastructure. Northern Tasmanian Development is developing a Mountain Bike tourism project to position Northern Tasmania as a world-class mountain bike destination.
Given the premier golf courses of Barnbougle and Lost Farm are located within the Northern Region, there is potential to drive development of this niche market through the region. Opportunities to target the national and international golfing fraternity can be driven by the Regional Tourism Organisation marketing in cooperation with Tourism Tasmania and the golfing sector. There is opportunity for the region to leverage Tourism Australia‟s „Great Golf Courses of Australia‟ international campaign which included Barnbougle Dunes and Barnbougle Lost Farm as two of the six courses featured in the campaign.
Whilst Bay of Fires in the north east is recognised as one of Tasmania‟s iconic destinations, there is potential for both experience and accommodation products to be developed to capitalise on the national and international awareness and appeal of this area.
In recent times there has been a major shift in consumer behaviour in regards to online information seeking and booking. There is potential for the northern region to improve significantly enterprise digital enablement, regional destination content and digital assets. The redevelopment of Tourism Tasmania‟s consumer-facing website will provide opportunity to integrate regional and state destination content and the early roll-out of the National Broadband Network will enable more regional businesses to take advantage of online marketing and social media activities.
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Tourism Tasmania‟s recent change in contracted research services has enabled the provision of highly relevant and useful research data to the Tasmanian tourism industry and other businesses so they can successfully plan and implement business and marketing strategies. This will also assist tourism business to more accurately plan product improvement and consider investment in new and existing tourism product.
The review of Tasmania‟s tourism brand will assist to establish a clear competitive position in the market that will ensure Tasmania is not trying to compete in a commodity based competitive landscape. The regional opportunity lies in alignment to the Tasmanian brand and the identification of regional proof points that show people why northern Tasmania is so different from anywhere else and what makes it a unique place to visit.
Access to local produce is vital for the hospitality industry to operate effectively. High quality producers who find a suitable balance between supplying local businesses and fulfilling export market needs contribute strongly to the Tasmanian brand. With Tasmania increasingly recognised as a gourmet produce destination, there are opportunities for restaurants and other hospitality businesses to collectively identify their needs for produce and approach the producers directly. This is key to showcase produce within the state to locals and visitors alike.
The Launceston Visitor Centre is undergoing review by the Launceston City Council in regards to its capacity and operations, resulting in an imminent move to a more central and suitable location. There is significant opportunity to create efficiencies in the provision of visitor information across the region through collaboration of local and state governments and the industry led Regional Tourism Organisation.
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Disclaimer: The information contained within the Northern Regional Economic Development Plan is considered to be correct at the time of publication. Images used within this publication remain the property of the copyright holder. © State of Tasmania 2012