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Melbourne's North– the New Knowledge Economy

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Melbourne's North– the New Knowledge Economy Melbourne’s North– the new knowledge economy NORTH Link NETWORKING FOR ECONOMIC DEVELOPMENT MELBOURNE'S NORTH THE BEST FOR BUSINESS NACC NORTHERN MELBOURNE AREA CONSULTATIVE SUBCOMMITTEE VICTORIA THE PLACE TO BE Melbourne’s North – the new knowledge economy Melbourne’s North – the new knowledge economy is a study commissioned by NORTH Link and the Northern Metropolitan Melbourne Area Consultative Sub-Committee with seed funding from the Victorian Government Department of Innovation, Industry and Regional Development and matching funding from industry, education and local government in Melbourne’s North. It was prepared by National Institute of Economic and Industry Research. The report provides a detailed analysis of the Melbourne’s North regional economy and builds on the previous report, Growing Melbourne’s North – developing an integrated economy. It concludes that the region can achieve significant economic and social benefits if stakeholders share resources and cooperate across local government boundaries to form a discrete economic zone. The report includes recommendations and benchmarks that will support growth and quality employment outcomes for the region into the future as it undergoes the transition into a knowledge economy. Consultants National Institute of Economic and Industry Research (NIEIR) Carmine Consulting Cover and Layout Ox Design ISBN 978-0-9803994-4-3 Copyright © 2009 Melbourne’s Northern Economic Wedge Inc, trading as NORTH Link. This work may be reproduced in whole or in part for research or training purposes, subject to the inclusion of an acknowledgement of the source and no commercial usage or sale. Reproduction for purposes other than those indicated above requires written permission of NORTH Link. Requests should be forwarded to NORTH Link, PO Box 103, Coburg 3058 or to [email protected] Disclaimer Every effort has been made to ensure that this report is free from error or omission. The information contained in this report has been derived in good faith from sources believed to be reliable and accurate. However, neither NORTH Link nor the Northern Metropolitan Melbourne Area Consultative Sub-Committee nor any persons involved in the preparation of this report accept any liability whatsoever for its contents or information. Enquiries and copies of full report Mr Mick Butera Executive Director, NORTH Link c/- Institute for Advanced Study La Trobe University Main Drive, BUNDOORA 3086 Telephone: 03 9479 3337 Facsimile: 03 9467 8310 Email: [email protected] Page | ii Melbourne’s North – the new knowledge economy Acknowledgments Consultants Peter Hylands and Peter Brain from NIEIR for their enthusiastic completion and interpretation of the research data and interviews that have resulted in the authorship of this groundbreaking report and recommendations. Project Steering Group Bruce Burns Associate Director, Northern Melbourne Institute of TAFE Mick Butera Executive Director, NORTH Link Tony Coppola Executive Officer, Northern Metropolitan Melbourne Area Consultative Sub-Committee Jane Edwards Julie Eisenbise Director Global Business Development, RMIT University John Francis Director Economic Development, City of Whittlesea Kate Harrington Economic Development Coordinator, Banyule City Council Peter Harrison General Manager Student Services Group, Government Liaison, Kangan Batman TAFE Michael Hedt Regional Manager Northern & Western Metro Region, Department of Innovation, Industry and Regional Development Sue La Greca Manager Economic Development, City of Darebin Grant Meyer Manager Economic Development, Hume City Council Daniel Murphy Acting Manager Sustainable Development, Moreland City Council Greg O’Brien Emeritus Professor, La Trobe University Neville Slade Manager Major Projects & Business Services, Shire of Nillumbik Vivien Williamson Manager Strategic & Economic Planning, City of Yarra Melbourne’s North – the new knowledge economy Page | iii Project sponsors This project has been developed with seed funding from the Victorian Department of Innovation, Industry and Regional Development. The project has been made possible with matching financial and intellectual support of the following organisations: . Banyule City Council . City of Darebin . City of Whittlesea . City of Yarra . Darebin Enterprise Centre . Hume City Council . Kangan Batman TAFE . La Trobe University . Moreland City Council . NORTH Link . Northern Metropolitan Melbourne Area Consultative Sub-Committee . Northern Melbourne Institute of TAFE . RMIT University . Shire of Nillumbik. Staff The final proof reading and cross checking was an enormous undertaking due to the sheer volume of the report. The staff of NIEIR and NORTH Link performed a most demanding task magnificently. Special thanks also to Karen Stephens of Carmine Consulting and Jane Edwards for their invaluable efforts in finalising the Foreword, Executive Report and final proof reading. Page | iv Melbourne’s North – the new knowledge economy Foreword The rapid growth forecast for Melbourne’s North makes this a critical time – one of challenges as well as opportunities. Immediate action is required from all stakeholders to develop a regional approach and influence policy settings at all levels of government – local, state and federal. Effective strategic interventions are essential to ensure the development of a knowledge economy and the future prosperity of the region. This 2009 Melbourne’s North – the new knowledge economy report, prepared by the National Institute of Economic and Industry Research (NIEIR), provides a framework for policy and action required to achieve knowledge-based economic development. It summarises the issues involved and provides recommendations on the way forward. Melbourne’s North is the region covering the local government areas of Banyule, Darebin, Hume, Moreland, Nillumbik, Whittlesea and Yarra. It is highly diverse, and its inner areas are transitioning to a knowledge economy and the creative industries as manufacturing, logistics and warehousing activities increase in the outer areas. While the region has many advantages, it also faces significant challenges. Along with the rest of the world, it is currently experiencing economic transition and uncertainty. Unparalleled population growth, a decline in manufacturing and transport congestion present issues that require urgent action. However, with the correct strategic interventions, this report shows that the region has an opportunity to capture more than its share of Melbourne’s forecast growth. Melbourne’s North can be characterised by: . diversity, including its diversity of population, culture, educational and ethnic background, and built form . a growing creative class, particularly in the inner suburbs . a knowledge-based infrastructure, including universities and TAFE institutes . strategic assets including Melbourne Airport, the soon-to-be-relocated Melbourne Wholesale Fruit and Vegetable Market and a range of new developments. However, benchmarking exercises conducted for this report show that the north is operating inefficiently compared with similar regions elsewhere. Issues that need to be addressed include: . congestion and transport problems . declining manufacturing and lower-skilled jobs . provision of amenity in new outer residential areas . costs of climate change to industry and efficiency of built form . diffusion of the knowledge economy to outer areas . education pathways and reskilling . economic strategies, broadband provision and capacity to attract knowledge intensive industries. Melbourne’s North – the new knowledge economy Page | v There needs to be urgent and immediate action by the region as a whole to influence policy settings and ensure that opportunities can be harnessed for the benefit of local residents and industry. Opportunities exist for: . increased advanced manufacturing and development of industry clusters . greater integration between tertiary institutions and business for R&D . attracting more knowledge intensive industries . upskilling and retraining of workers . strategic development of Activity Centres and Central Activity Districts . increasing the number of business incubators . development of quality and sustainable communities and workplaces built to the highest design and environmental standards. The task ahead is to create a fully integrated economy in Melbourne’s North, building on the resources the region now has and making strategic interventions to create new regional opportunities. Chris Heysen Chair, NORTH Link Page | vi Melbourne’s North – the new knowledge economy Executive Report Melbourne’s North is facing an unprecedented period of population growth, with some experts predicting that the region will become home to more than 500,000 additional residents by 2025. This rapid growth, combined with increasing levels of development – new residences, new retail centres, new infrastructure and new businesses – can bring opportunities. But the scale of this growth at a time when the global and local economies are in a state of flux can also create strong social and economic challenges. A region in transition Melbourne’s North, stretching from the inner suburbs to the semi-rural outer metropolitan fringe, presents an integrated regional economy. It features excellent road, rail, freight and public transport infrastructure, notable for the presence of Melbourne Airport and significant transport hubs in the outer areas. The region’s economy is in the process of evolving from a manufacturing past to a knowledge economy that
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