Economic and Employment Lands Strategy Part1 Introduction and Background

Part 1 - Introduction and background Replace Image xviii Economic and Employment Lands Strategy: non-heavy industrial Perth metropolitan and Peel regions Introduction Purpose The objective of the Economic and Employment Key elements of the Strategy are to: Lands Strategy (EELS) is to facilitate a more proactive • Identify the areas, type and locations of general approach to industrial land use planning and provide and light industrial land required over the next an ongoing supply of industrial land to cater for 20 years. anticipated economic growth in Western Australia over the next 20 years and beyond. The Strategy • Review the existing industrial land development represents the State Government’s position with program and identify possible expansion respect to future industrial land use planning for the opportunities. Perth and Peel regions, and factors stemming from • Identify and evaluate the suitability of locations large-scale resource projects, particularly in the State’s for new general and light industrial estates. North-West. With an anticipated economic boom potentially larger than that experienced in the early • Develop a strategy to facilitate the ongoing 2000s, it is vital the State is positioned to adequately supply of general and light industrial land, and and capably respond to and support this economic assist in the restoration of the Western Australian growth. Government’s long term general and light industrial land bank. Key agencies involved in its preparation include the Department of Planning, Department of State The Strategy details a number of key initiatives Development, Department of Environment and that will be actively pursued by the Government to Conservation and LandCorp, the latter being the State address the industrial land supply shortfall and secure Government’s appointed developer. an adequate ongoing supply of industrial land over the next 20 years and beyond. Corresponding with a number of other significant State planning documents, such as Directions 2031 and Beyond: metropolitan planning beyond the horizon, Background the State Planning Strategy (draft), the Activity Centres Policy and sub-regional plans for the Perth and Industrial land is a vital component of a healthy, Peel regions, the Strategy represents the strategic growing economy. During times of economic planning direction for industrial land into the future. uncertainty, the availability of industrial land and The EELS is consistent with the wider objectives of infrastructure is important in order to encourage the Western Australian Planning Commission (WAPC), new industries to develop. An adequate supply of which is actively pursuing a more integrated and appropriately serviced industrial land will assist in coordinated approach to infrastructure planning and staving off the effects of economic slowdown, and provision for infill and greenfield land releases for the improve confidence in any industrialised economy. Perth and Peel regions. Since the 1970s, proactive and strategic planning for The Strategy focuses solely on general and light future industrial land has been limited in the Perth industry needs and does not include heavy industry. and Peel regions of Western Australia. The resources Therefore, references to industrial land in the EELS boom of the late 1990s and early 2000s exposed this mean “general and light industrial land” unless inefficiency in strategic planning through a significant otherwise stated. Demand for heavy industrial land shortfall in development ready industrial land. The is derived from a different set of drivers to that of result was a stagnant industrial property market with general and light industrial land, being more project limited opportunity to expand. dependant than other industrial land uses, therefore it has been excluded from consideration in the EELS. Economic and Employment Lands Strategy: 1 non-heavy industrial Perth metropolitan and Peel regions This shortage negatively impacted on the industrial Figure 1: Study area land market, resulting in significant increases in the value of industrial land, and, in some cases, rendering the development of available land unviable. Effectively, the developed land became too expensive for people to buy or rent, leaving developers unable to on-sell land, and the available industrial land pricing itself out of the market. State Government intervention was needed to address strategic planning for industrial land and ensure that the economic buoyancy being enjoyed by Western Australia could be sustained and supported. Study area The study area for the EELS encompasses the statutory boundaries of the Perth Metropolitan and Peel regions, as defined by Region Schemes. This study area comprises approximately 805,633 ha, 13,798 ha is currently zoned for industrial purposes (Figure 1). Methodology The EELS was prepared over a four-year period. A number of technical studies support and inform the strategy, and each is described in further detail in separate Technical Summary documents, which supplement this strategy document (refer to Appendix A - EELS methodology technical summary). The EELS is the culmination of three studies: the Industrial Land Needs Study which examined the current industrial stock for the Perth and Peel regions, noted historical consumption trends and forecasted likely future demand for industrial land over the next 20 years; the Industrial Land Capacity Assessment Study, which, using forecast demand figures, identified potential future industrial sites using a multi-criteria evaluation methodology, and subsequently prioritised those sites; and a separate market analysis to ascertain what current and potential industrial land users and owners want and need the strategy to deliver land for current and future needs (Figure 2). 2 Economic and Employment Lands Strategy: non-heavy industrial Perth metropolitan and Peel regions Figure 2 - Methodology Economic and Industrial Industrial land Industrial land capacity Employment development Lands Strategy: land needs study assessment research study study non-heavy industrial - Perth metropolitan and Peel regions Industrial List of potential Global economic Planning analysis: land demand needs future industrial sites trends and - Demand using multi-criteria implications on WA - Supply evaluation methodology Demand forecasting model Key industries: Future possible sites: Identication of current and future - Short potential future requirements - Medium industrial sites - Long Responses to deliver appropriate Key actions and industrial land recommendations Implementation plan Key assumptions The preparation of these supporting documents and • The identification of potential future industrial the strategy was underpinned by a number of key sites within the strategy, does not give certainty assumptions, namely that: that industrial development will be approved over 100 per cent of the site. • There will be a continued need for general and light serviced industrial land driven by increased • The provision of a more robust and enabling population growth independent of economic planning framework for industrial land use conditions. planning will generate greater private sector involvement in industrial land development • Despite the global financial crisis in late than presently is experienced. 2008, the economic health of the Western Australian economy and related demand • The State Government and its key servicing and levels for industrial land will remain generally infrastructure agencies will better understand commensurate with demand levels experienced and subsequently choose to adopt a more in the lead up to the resources boom of the early coordinated and proactive approach to 2000s. assisting in the facilitation of industrial land use development. • The spatial and multi-criteria analysis undertaken to identify potential future industrial • A strategic land bank of industrial land is sites represents only the preliminary stages necessary and should be actively maintained. of a more involved and complex investigative process to determine the ultimate feasibility of these sites. Economic and Employment Lands Strategy: 3 non-heavy industrial Perth metropolitan and Peel regions Part 2 - Role of industry and industrial land Photograph courtesy: Eastcourt Property Group 4 Economic and Employment Lands Strategy: non-heavy industrial Perth metropolitan and Peel regions Primarily providing employment opportunities, industrial land also has an intrinsic link to the economic sustainability and strength of a city and, on a wider scale, contributes to the overall national and global economy. As a significant contributor to employment for the Perth and Peel regions, its importance to the resource sector in regional Western Australia, and as a hub for international trade, it is crucial that planning for industrial land is proactive and dynamic. What is industrial land? The strategy focuses on light and general industry only. These are described below in further detail: Industrial Typologies and Location Criteria Industry typology Activity Location criteria Light / Commercial • Consumer oriented e.g. household goods • Highly accessible, visible frontage, transport / - Local light and and clothing activity corridors / some residential locations service industrial • Local and district catchments • Very close to centres of population and trade estates. Generally • Manufacturing which uses partially • Areas where there is minimal impact on have small scale processed materials to make products neighbouring

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