South East Queensland Economic Foundations Paper January 2018 © State of Queensland, January 2018
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Queensland Government South East Queensland Economic Foundations Paper January 2018 © State of Queensland, January 2018. Publishedshed by thee QueenslandQueensla The Queensland Government is committed to Government, 1 William Street, Brisbanee Qld 4000, Australia.tra providing accessible services to Queenslanders of all cultural and linguistic backgrounds. If you have difficulty Licence: This workwo is licensed under theh understanding this publication and need a translator, Creative Commonsmm CC BY 4.0 Australia LLicence. pleaseeaseas call the Translating and Interpreting Service (TIS National) In essence,e, you are free to copy and distributest onn 131131 450 and ask them to telephone the Queensland Government this material in any format, as long as you attribute the workrk to the on 13 QGOVQ (13 74 68). State of Queensland (Queenslanden Government) and indicatee if any changes have been made.. TTo view a copy of this licence, visiti Disclaimer:m While every care has been taken in preparing this http://creativecommons.org/licenses/by/4.0/o . publication,i the State of Queensland accepts no responsibility for decisionsi or actions taken as a result of any data, information, Attribution:ttrib The State of QQueensland, Queensland Government.ment.m statementn or advice, expressed or implied, contained herein. The Queenslandnsland Government supports and encourages the To the beste of our knowledge, the content was correct at the dissemination andnd exchange of information. However, copcopyright time of publishing.p protects this publication. Thehe State of Queensland has no objection to this material being reproduced,duced, made available online or electronically but only if the Queensland Government is recognised as the owner of the copyright andnd this material remairemains unaltered. 2 SEQ City Deal | Economic Foundations Paper Contents Purpose of this paper 5 PART 3 | Economic foundations 59 Priority industries driving growth 61 Executive summary 6 Determining priority industry clusters 62 Determining inter-industry links 63 Introduction 11 Determining key spatial locations 64 Global trends that are shaping the 13 Priority industry clusters in SEQ 67 economic opportunity for SEQ SEQ’s economic growth opportunity 14 The economic foundation of SEQ 113 Structure of this report 17 Priority industry clusters 114 Enablers to growth 115 PART 1 | SEQ context 19 Location of priority industry clusters 120 The SEQ region 21 Strategic planning to support growth 124 A growing region 22 SEQ Economic Foundation 126 An economy in transition 24 Informing the SEQ City Deal framework 133 SEQ’s Economic Assets 27 Established foundations for collaboration 31 Appendix A : List of stakeholders 135 Positioning SEQ 35 Appendix B : Technical note 136 SEQ in the Queensland context 36 SEQ in the Australian context 38 SEQ in the international context 41 PART 2 | Foundation for sustainable 45 prosperity in SEQ The social environment 47 Infrastructure 48 Human capital 50 Stability 52 Civic services 53 Culture and environment 53 The natural environment 55 Developing resilience to adverse weather events 56 Reducing greenhouse gas emissions 56 Waste disposable management 57 Ensuring water security 57 Maintaining biodiversity 58 SEQ City Deal | Economic Foundations Paper 3 Index of Figures and Tables Figure A – SEQ clusters, corridors and growth fronts 8 Figure 31 – Queensland inter-industry relationship 63 that will underpin regional growth chord diagram Figure B – Overview of the SEQ Economic Foundations 9 Figure 32 – Examples of Regional Economic Clusters 65 Paper structure and Knowledge and Technology Precincts in SEQ Figure 1 – South East Queensland local governments 12 Figure 33 – Focus area for industry cluster figures 66 Figure 2 – Trade oriented share of Australia’s eastern 16 Figure 34 – Advanced Manufacturing Industry Cluster 68 Greater Capital City economies in terms of gross valued Overview added (GVA), 2016 Figure 35 – Key industry cluster characteristics – 70 Figure 3 – SEQ’s current and projected population 2017–2041 22 advanced manufacturing Figure 4 – Key urban growth fronts for the SEQ region 23 Figure 36 – Advanced manufacturing in the SEQ region 72 Figure 5 – Queensland gross state product at factor cost, 24 Figure 37 – Advanced manufacturing inter-industry 73 2005–06 to 2015–16* input and output links Figure 6 – Share of Queensland’s gross state product by 25 Figure 38 – Agribusiness industry cluster overview 77 industry in 2005–06, 2010–11 and 2015–16 Figure 39 – Key industry cluster characteristics – agribusiness 80 Figure 7 – Value of construction work done by sector, 27 Figure 40 – Agribusiness in the SEQ region 81 Queensland Figure 41 – Agribusiness inter-industry input and output links 82 Figure 8 – Economic foundations of the SEQ region 29 Figure 42 – Traded health and education industry 86 Figure 9 – Existing strategic plans guiding the 32 cluster overview development of the economic foundations paper Figure 43 – Key industry cluster characteristics – 88 Figure 10 – SEQ local government areas population 36 traded health and education growth, 2016 Figure 44 – Traded health and education in SEQ 90 Figure 11 – Queensland and SEQ Employment by Industry 37 Cluster, 2015 Figure 45 – Traded health and education inter-industry 91 input and output links Figure 12 – Mean price of residential dwellings, June 2017 38 Figure 46 – Transport and Communications Industry 95 Figure 13 – Export Share of Australia’s Eastern Capital 39 Cluster Overview City Ports, 2016 Figure 47 – Key industry cluster characteristics – 96 Figure 14 – Total Gross Weight of Australia’s Eastern 40 transport and communications Capital City Industry Cluster Products, 2016 Figure 48 – Infrastructure Australia’s indicative map 97 Figure 15 – Total Value of Australia’s Eastern Capital 40 of a national land freight network City Industry Cluster Products, 2016 Figure 49 – Transport and communications in the SEQ region 98 Figure 16 – Value per Tonne of Australia’s Eastern 40 Capital City Industry Cluster Products, 2016 Figure 50 – Transport and communications inter-industry 99 input and output links Figure 17 – Population growth, 2000–2017* 42 Figure 51 – Tourism and creative industry cluster overview 104 Figure 18 – Projected population growth, most recent 42 available–2040 Figure 52 – Key industry cluster characteristics – 106 tourism and creative Figure 19 – Share of output by industry 42 Figure 53 – Tourism and creative in the SEQ region 107 Figure 20 – Annual air passengers (millions) 43 Figure 54 – Tourism and creative inter-industry 108 Figure 21 – Private vehicle access to nearest REC in SEQ 48 input and output links Figure 22 – Public transport access to nearest REC in SEQ 48 Figure 55 – Economic foundations paper relationship 113 Figure 23 – SEQ’s highest education attainment arrivals 50 with the SEQ City Deal and departures by age group, 2016 Figure 56 – ETCS an example of technology initiative 115 Figure 24 – SEQ’s highest education attainment arrivals 50 Figure 57 – Enablers for an innovation hub 119 and departures by location, 2016 Figure 58 – SEQ Economic Clusters 123 Figure 25 – SEQ highest education attainment by secondary school qualification for SA2s, 2016 51 Figure 59 – SEQ Residential Growth Fronts 125 Figure 26 – SEQ labour force participation rates for SA2s, 2016 51 Figure 60 – SEQ Economic Foundation – SEQ region 130 Figure 27 – Areas of socio-economic disadvantage in SEQ 52 Figure 61 – SEQ Economic Foundation – Capital City Knowledge Corridor 131 Figure 28 – CO2 emissions per capita 56 Figure 62 – SEQ Economic Foundation – SEQ Urban Extent 132 Figure 29 – Exposure to pollution 57 Figure 63 – SEQ clusters, corridors and growth fronts Figure 30 – The historical level and cause of land covering 58 that will underpin regional growth 134 in SEQ 4 SEQ City Deal | Economic Foundations Paper Purpose of this paper This report has been drafted by the Queensland Memorandum of Understanding to establish and implement Government’s Cities Transformation Taskforce City Deals signed by the Queensland and Commonwealth (CTT). The CTT is responsible for the negotiation of Governments in September 2016. The SEQ City Deal builds on a period of two years of collaboration between local governments City Deals on behalf of the Queensland Government in the region, the Council of Mayors SEQ (CoM(SEQ)) and the as well as making a contribution to wider cities state government to define the parameters and potential policy. This document is intended to inform the scope of such a deal. There has also been active engagement development of a tri-partite agreement between between officers from the Queensland Government, SEQ local, state and Commonwealth governments to councils and the Commonwealth Department of Prime Minister progress a South East Queensland (SEQ) City Deal. and Cabinet Cities Unit. The economic foundations paper also has broader applicability It provides the foundation for development of a framework to a wider range of government policy considerations. Inputs for investment into the region that will support the growth have been drawn from a variety of government agencies and of priority industries, support the expansion, efficiency and stakeholders to ensure that a robust paper has been developed connectivity of key corridors and clusters, and ensure the to guide regional economic development planning activities. effective connectivity of key labour market areas to centres of employment activity. This framework will then guide the A full list of stakeholders consulted in