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Annual Report 2003–04 Department of Innovation, Industry And

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Annual Report 2003–04 Department of Innovation, Industry And Annual Report 2003–04 Department of Innovation, Industry and Regional Development Cover Images: Victoria hosts around 40 per cent of Australia’s biotechnology enterprises. Warehouse employee Fidel Payad at Autoliv, which received a Victorian Government Workplace Excellence Award for Better Work and Family Balance. Over the last decade, exports from Victoria have grown by an average of 6 per cent per annum. Rochford on Eyton at Coldstream is one of over 55 wineries in Victoria’s Yarra Valley. Advice from the Small Business Counselling Service helped owner of Exeter Cellars, Vinit Abbott to grow his business. Contents Secretary’s Foreword 2 Our Ministers 3 Section 1: Overview 4 The Department in Context 5 Role and Structure of the Department 5 Organisational Chart 8 Highlights at a Glance for 2003–04 10 Section 2: Achievements 12 Innovation and Policy Output Group 13 Business Output Group 19 Regional Development Output Group 27 Industrial Relations Output Group 31 Tourism Victoria Output Group 34 Corporate Services 40 Section 3: Financial Report 42 Section 4: Appendices 78 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 1 Secretary’s Foreword The Department of Innovation, Industry and Regional In April 2004, DIIRD was assigned lead responsibility for Development (DIIRD) continues to implement the Victorian delivering key initiatives announced in the Government’s Government’s economic development agenda and lead the Economic Statement, Victoria: Leading the Way. In May 2004, Government’s efforts in building an innovative, internationally a new body within the Department, Invest Victoria, was competitive and globally connected Victorian economy. launched by the Victorian Government to aggressively promote Victoria as a leading international investment location. DIIRD’s achievements contributed significantly to the strong and consistent economic performance of the Victorian The Department welcomes the exciting opportunities economy in 2003–04. In a challenging global environment, generated by these new responsibilities. Building on our the Department helped deliver major economic benefits to strong record of achievement, I am confident DIIRD will Victoria: attracting high levels of business investment, successfully meet these new challenges and continue to increasing the state’s market share in tourism, driving make a vital contribution to Victoria’s economic performance. innovation across Victoria and stimulating industry and regional development. I thank the staff of the Department for their hard work over the past year. The achievements highlighted in this annual report In the first half of the financial year, the Department undertook reflect their dedication, enthusiasm and commitment to the a major consultation and reorganisation process aimed to task of building a more competitive and innovative Victoria. boost our capacity to meet the Government’s objectives within the context of a changing global economy. While Peter Harmsworth Victoria has many strengths and advantages – and successful Secretary economic development strategies in place – major challenges are emerging from the increasingly competitive international environment. The organisational restructure will ensure DIIRD provides the leadership necessary to meet these challenges. It will also assist the Department in delivering a seamless service to Victorian businesses and investors. The 2003–04 financial year marked the first full year of operation of Regional Development Victoria and the Small Business Commissioner. Regional Development Victoria successfully promoted new economic and investment opportunities in regional areas and delivered a suite of programs to strengthen regional infrastructure, industries and communities. The Small Business Commissioner successfully mediated a high proportion of notified disputes over retail leases. 2 Department of Innovation, Industry and Regional Development – Annual Report 2003–04 Our Ministers The Hon. The Hon. The Hon. John John Brumby, MP Tim Holding, MP Pandazopoulos, MP Minister for State and Minister for Minister for Tourism Regional Development Manufacturing Minister for Innovation and Export Minister for Financial Services Industry The Hon. The Hon. Marsha Thomson, MLC Rob Hulls, MP Minister for Minister for Small Business Industrial Relations Our Parliamentary Secretaries Joe Helper, MLA Matt Viney, MP Parliamentary Secretary, Parliamentary Secretary, Regional Development Innovation and Industry Department of Innovation, Industry and Regional Development – Annual Report 2003–04 3 01 Overview The Department in Context Role and Structure of the Department The Victorian economy continued to record steady growth in As the lead agency for economic and regional development 2003–04 despite subdued global circumstances and difficult in Victoria, DIIRD is responsible for building a state where domestic conditions, including the effects of the severe innovation leads to thriving industries and high quality jobs. drought and some of the worst bushfires in the state’s history. The Department comprises seven Ministerial portfolios: Victoria is well placed to build on this strong economic – Innovation performance as the global outlook improves and the state continues to recover from the drought. However, Victoria – State and Regional Development faces significant external challenges in the year ahead. Rising – Small Business oil prices, a fluctuating Australian dollar, upward pressure on – Tourism interest rates and an increasingly competitive global economy – Industrial Relations are creating additional risks for the Victorian economy. New pressures and opportunities will emerge for Victorian – Financial Services Industry businesses as a result of strong growth in large markets such – Manufacturing and Export. as China, growing trade liberalisation and Australia negotiating Free Trade Agreements with the United States and Thailand In addition DIIRD is responsible to the Minister for Education which are targeted to commence in January 2005. and Training for the Government’s Design Initiative. The Department of Innovation, Industry and Regional The Department holds a central role in achieving the Development (DIIRD) is playing a leading role in building Government’s economic vision for Victoria as outlined in its Victoria’s capacity to meet these challenges. Through a Growing Victoria Together statement and the Government’s strong focus on creating a more internationally competitive major economic development policies, Victoria: Leading the and globally connected Victorian economy, DIIRD is Way – Economic Statement 2004, Victorians. Bright Ideas. contributing to creating a competitive business environment, Brilliant Future. – Innovation Statement 2002 and Building boosting export performance, promoting regional Today’s Businesses for Tomorrow – Business Statement 2002. development, supporting high performing industries and workplaces, and driving innovation across the state. The key Government objectives relevant to DIIRD are: – More jobs and thriving innovative industries across Victoria The Department continues to implement the Victorian – Promoting sustainable development Government’s Innovation Economy Policy, which aims to position Victoria as a leading innovation economy. DIIRD’s – Growing and linking Victoria achievements in 2003–04 include facilitating the attraction of – Building cohesive communities and reducing inequalities $2.4 billion of new investment to Victoria, developing a new – Promoting rights and respecting diversity. biotechnology strategic plan, introducing a new Design Initiative and ongoing work with the Innovation Economy To achieve the Government’s economic goals, the Advisory Board. Independent research undertaken for DIIRD Department has five objectives: in 2003–04 demonstrated substantial economic benefits were being realised through the Department’s management of 70 – Encourage and support development of innovative, science, technology and innovation infrastructure projects. internationally integrated and competitive industries and businesses for Victoria The Department is also delivering key initiatives announced in – Work to create a competitive business environment and the Government’s April 2004 Economic Statement, Victoria: capabilities for an innovation economy Leading the Way, including the creation of Invest Victoria, – Strengthen Victorian regional economies, infrastructure and new support for Victorian exporters and measures to boost communities growth and exports in Victoria’s services industries. – Support the development of high performing, cooperative During 2004–05, DIIRD will continue to work closely with and fair workplaces and a highly skilled workforce business and industry to make Victoria a leading investment – Encourage and support the contribution of tourism to location and build a diverse, innovative and export-oriented Victoria’s economic and social development. economy that is capable of meeting the challenges and opportunities ahead. Department of Innovation, Industry and Regional Development – Annual Report 2003–04 5 Role and Structure of the Department continued In September 2003, in order to better position the Department to ensure it can best achieve its overall objectives in a global economy, structural changes were made to the organisation. As a result the Department is now structured into the following divisions and agencies. Division/Agency Core Responsibilities Invest Victoria (IV) Promotes the state as a globally competitive
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