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Tasmanian Prospectus Paul Lennon Premier, Tasmania

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Tasmanian Prospectus Paul Lennon Premier, Tasmania Tasmanian Prospectus Paul Lennon Premier, Tasmania Message from the Premier of Tasmania Tasmania is open for business. My Government is prepared to back projects that we believe will benefit the state. My Government is very keen to hear from people looking to invest in a state of unlimited Through the proposed A$.4 billion pulp mill, opportunities. we have a great opportunity to add value to our timber products. There are many reasons why you should invest in Tasmania. The granting of a licence to international betting exchange company Betfair is another example of We have the lowest direct labour costs in the the Government backing good projects. Betfair nation. We also have the lowest labour turnover came to us because they knew Tasmania was open in the country and the lowest business licensing for business and that we would listen to their and planning costs. Tasmania has the lowest level proposal. of industrial disputes of any state in the country. Tasmania has a booming tourism industry, thanks We are also the nation’s second-lowest-taxing largely to the purchase of the Melbourne-to- state or territory. Devonport passenger ships and the best-ever air access into the state. More and more people With the roll-out of natural gas in the state are flocking to Tasmania because we offer a and availability of hydro electricity, Tasmania has lifestyle that has almost disappeared from the plentiful and cost-competitive energy sources. modern world. Investment in tourism-related infrastructure has grown substantially as more Private investment is booming and we are people discover the state as a holiday destination. experiencing record jobs growth. There is now over $600 million worth of Manufacturing, aquaculture, gourmet food and tourism-related projects either planned or under wine, ship building, mining, information and construction. communications technology, tourism, energy, biotechnology, property development and retail Tasmania is a great place to invest and we are represent just some of the opportunities for ready to discuss your proposal or outline the investors. opportunities we have to offer. In 2002, the state government deregulated shop trading hours, leading to a boom in retail-related investment in the state. Business confidence is very high and our exports have increased substantially as demand for Tasmanian products grows. Paul Lennon Premier Tasmanian Prospectus “Private investment is booming and we are experiencing record jobs growth.” 2 Department of Economic Development Contents TOP: Silos apartments, Hobart LEFT: Antarctic vessels at port, Hobart RIGHT: Compact Designs’ The Coffee’s Been Tasmania the Competitive State 5 Tasmanian Investment Opportunities 27 » The Tasmanian economy 6 » Pulp mill 28 » Key strengths of Tasmania’s economy 9 » Energy 28 » Population 0 » Forestry 29 » Business confidence 0 » Tourism 0 » Low business costs » Built infrastructure 0 » Land and accommodation » Manufacturing » Exports 2 » Shipbuilding and marine manufacturing 2 » Stable government 2 » Mining and minerals » Workforce » Food and beverage 4 » Low labour costs » Antarctic industry 5 » Lowest levels of labour turnover 4 » Biotechnology 6 » Training and qualifications of the Tasmanian labour market 15 » Education and research 7 » Business and skilled migration 8 » Animation/film making 8 » Information and communication technology 9 Infrastructure 17 » Contact centres 9 » Significant infrastructure projects 8 » Transport 9 » Sea ports 2 Tasmanian Lifestyle 41 » Energy 22 » Telecommunications 2 Government Assistance and Incentives 45 » Land 24 » Affordable housing 24 » Australian Government assistance 46 » Water 24 » Tasmanian State Government assistance 46 Resources and Contacts 48 Tasmanian Prospectus In 2004-05 total spending grew faster in Tasmania than all other states and territories. 4 Department of Economic Development Tasmania, the Competitive State TOP: Kees Van ek shows Economic Development’s Steve Jarman around Van ek Consulting LEFT: Economic Development’s Derek Le Marchant with Robert Dent and Robert Reid of Tasglobal Seeds RIGHT: Premium Fresh, Forth The Tasmanian economy Key strengths of Tasmania’s economy Population Business confidence Low business costs Land and accommodation Exports Stable government Workforce Labour costs Lowest levels of labour turnover Training and qualifications of the Tasmanian labour market Tasmanian Prospectus 5 TOP: Igor Van Germen with Catherin Taylor and Tania Donnelly at House of Anvers BOTTOM: Bernt Gennson inspects carpet with Economic Development’s Lara Faulkner at Ulster-Tascot Templeton LARGE: Economic Development’s Vern Cazaly with Tim Hess of Petuna Seafoods Tasmania, the Competitive State The Tasmanian Economy Strong growth Strong fiscal management Ï Our economy is forecast to grow by Ï $.6 billion of general government net .5 per cent in 2006-07 and it is estimated debt eliminated and Tasmania will remain that more than 6,000 jobs will be created net debt free. over the 2006-07 financial year. Ï As a result, there is $50 million a Ï In 2004-05 total spending grew faster year extra to spend on services and in Tasmania than all other states and infrastructure. territories. Credit rating upgrades Jobs Ï Moody’s updated Tasmania from Aa2 to Ï 2,000 new jobs created since January Aa in 200. 999. Ï Standard and Poors from AA to AA+ in Ï Record 224,700 people employed at June 2004. 2006. Ï Strong jobs growth is also reflected in Tasmania’s steadily rising participation rate that is now around 6 per cent. Private investment Unemployment Ï Private investment is at record levels rising Ï Long-term unemployment has more than by 4 per cent to March 2006. halved since 998. Ï The biggest driver of private investment Ï Strong economic growth has driven the was business investment which rose by 2 unemployment rate to record lows. per cent in the year to March 2006. 6 Department of Economic Development Consumer spending Population Ï Consumer spending reached a record high, Ï More people (487,000) are now living in rising by 5 per cent in the year to March Tasmania than ever before. 2006. Ï Population is growing by more than ,000 Ï Australian Bureau of Statistics figures per year. show retail trade in May 2006 is up by 6.8 per cent compared to a year earlier. This outstrips the national increase which was 5.6 per cent compared with the previous year. Ï Tasmania deregulated shop trading hours in 2002, leading to significant investment opportunities and growth in the retail sector. Exports Taxation Ï Exports rose by over 8.5 per cent to Ï Tasmania has the second lowest taxation around $2.864 billion in the year to June severity of all states and territories. 2006. Ï No new state taxes or increases in the rate of exisiting taxes. Source: Department of Treasury and Finance (Tasmania) and Australian Bureau of Statistics “Tasmania has the lowest level of industrial disputation of any state in Australia.” Tasmanian Prospectus 7 TOP: Dennis Burridge, Liferaft Systems BOTTOM: Mining in north-west Tasmania LARGE: Cruise ship docked at Princes Wharf, Hobart Tasmania, the Competitive State International companies with significant operations in Tasmania include (in no particular order): Ï Rio Tinto, Ï Norske Skog, Ï Caterpillar, Ï Cadbury Schweppes, Ï Betfair, Ï Zinifex, Ï San Miguel, Ï Johnson and Johnson, Ï GlaxoSmithKline, Ï National Grid Transco, Ï Ecka Granules, Ï McCains, Ï Simplot, Ï BHP-Billiton, Ï Vedanta Resources PLC, Ï The AEON Group, Ï Stemcor, Ï Vodafone, Ï Kreglinger, Ï ISP Global Technologies, Ï Logica CMG, Ï Nutreco, Ï Sitel, Ï Powerco, Ï Ta Ann. 8 Department of Economic Development Key strengths of Tasmania’s economy Ï Growing population Ï Lifestyle Ï Low cost of living Ï Accessible ports, competitive port charges Ï Low cost of labour and low level of Ï Low land and accommodation costs industrial disputes Ï High forestry endowment Ï Low rates of state taxes Ï High-quality primary produce Ï Innovation Ï Environment – sustainable practices, Ï Competitive energy prices - low electricity remoteness, ‘clean green’ image costs Ï Low business licensing costs Ï Low air freight costs Ï Competitive business environment Ï High business confidence Ï Low labour turnover Tasmanian Prospectus 9 TOP: South Hobart overlooking Sandy Bay BOTTOM: Aerial view of the Hobart CBD and port area LARGE: David Kenworth and Jason Birtwistle of MES Mining Equipment Supplies with Economic Development’s Dennis Hendriks (centre). Tasmania, the Competitive State The information in this section is sourced from the Competition Index 2005, published by the Tasmanian Government’s Department of Treasury and Finance. The Competition Index provides an objective assessment of the advantages and disadvantages of undertaking business in Tasmania relative to the other Australian states and territories and, in some cases, New Zealand. Business confidence Since 200, Tasmania has improved its ranking for Ï The buoyant economic and social 2 indices and overall, in 2005 Tasmania ranked environment has boosted business most favourable for of the indices. confidence. Ï The Competition Index 2005 reveals that Compared with other jurisditions, Tasmania has a 62 per cent of Tasmanian businesses are number of cost advantages for businesses, such as confident about their business prospects, low labour costs, a stable workforce, low land and well above the national average of 55 per accommodation costs and good port access. cent. Ï 8,77 new businesses registered for an ABN Population in Tasmania in the financial year 2005-06. Ï Population is growing by more than ,000 per year Business confidence in state and territory government Ï More people living in Tasmania than ever before 2005 NT ACT NSW VIC QLD SA WA TAS Ï Tasmania’s population is over 487,000. Rank 5 =1 8 7 3 4 6 =1 (Source: Competition Index 2005) Tasmanian Population 490 485 480 475 470 ('000 persons) 465 460 455 Jun 90 Jun 91 Jun 92 Jun 93 Jun 94 Jun 95 Jun 96 Jun 97 Jun 98 Jun 99 Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Dec 05 (Source: ABS) 0 Department of Economic Development Low business costs Land and accommodation Ï Tasmania has the lowest business licensing In addition to the cost of land rental and purchase, costs of all jurisdictions in Australia.
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