MANAGEMENT REPORT Agenda Item 6.1

29 April 2008 LORD TRAVEL TO TIANJIN, (CHINA), DELHI (INDIA) AND OSAKA (JAPAN) 28 MAY – 6 JUNE 2008

Division Office of the Chief Executive

Presenter Kathy Alexander, Chief Executive Officer

Purpose

1. To seek Council approval for the Lord Mayor to travel to Tianjin, Beijing (China), Delhi (India) and Osaka (Japan) for the period 28 May - 6 June 2008.

Recommendation from Management

2. That Council:

2.1. approve the Lord Mayor undertaking travel to Tianjin and Beijing (Wednesday 28 May to Sunday 1 June);

2.1.1. to lead a Melbourne business, civic and educational mission to China as part of the celebration of the 10th anniversary of the opening of the Melbourne Office Tianjin;

2.1.2. to deliver a speech at the plenary session on Thursday 29 May at the Asia Society’s 18th Asian Corporate Conference to be held in Tianjin (28-30 May); and

2.1.3. undertake a program of high level meetings with key Government and business contacts in Tianjin and Beijing;

2.2. approve the Lord Mayor undertaking travel to Delhi, India (Monday 2 June to Tuesday 3 June) to formalise the Strategic Alliance Agreement with the Chief Minister of the National Capital Territory of Delhi;

2.3. approve the Lord Mayor undertaking travel to Osaka, Japan (Wednesday 4 June to Thursday 5 June) to hold the first official meeting with Mayor Hiramatsu; to attend activities associated with the 30th Anniversary of the Melbourne-Osaka sister city agreement and to meet with Members of Business Partnership Cities (BPC);

2.4. approve an amount of $21,705 to cover travel costs including airfare $15,255 (Business Class : Melbourne/Beijing, Beijing/New Delhi, New Delhi/Osaka, Osaka/Melbourne), accommodation $4,200 (up to $600 per night for 7 nights), and day to day incidental expenses $2,250 (@ $250 per day for 9 days);

2.5. note that Chair, Business and International will be travelling with the Lord Mayor to Tianjin and Beijing, and a separate travel report was presented to the Finance and Governance Committee for approval; and

2.6. note that the Lord Mayor will prepare a report to the Council in accordance with the Travel Guidelines adopted by Council. Key Issues

Details of Travel

Tianjin and Beijing, China

3. It is recommended that the Lord Mayor commence travel on Wednesday 28 May from Melbourne and arrive in Beijing mid-day on Wednesday 28 May. The Lord Mayor will travel from Beijing to Tianjin by car to attend the Asia Society’s 18th Asian Corporate Conference Opening Night.

4. On Thursday 29 May the Lord Mayor will deliver a key note address to the conference on building sustainable first-class world cities. This is an excellent opportunity to make a significant presentation to an audience which consists of government and business leaders from across the world and to demonstrate the City of Melbourne’s commitment and expertise in sustainable environmental management.

5. On Thursday afternoon/evening the Lord Mayor will attend a series of Melbourne Office Tianjin (MOTJ) anniversary and sister city related activities including the opening of MOTJ 10th Anniversary Photo Exhibition, meeting members of the China AFL team and visit to the proposed site for the first AFL ground in Tianjin.

6. On Friday 30 May it is proposed that the Lord Mayor attend a press conference in Tianjin to further promote the MOTJ and the 28-year Melbourne Tianjin sister city relationship. Following the press conference the Lord Mayor will meet with the recently appointed Party Secretary of Tianjin to further support sister city projects encompassing business, educational, cultural and sporting exchanges.

7. On Friday 30 May, the City of Melbourne and the Tianjin Government will jointly host a Gala Lunch to celebrate the 10th anniversary of the establishment of the Melbourne Office Tianjin. The Gala Lunch will be produced by a Melbourne Chef currently working in China, featuring Melbourne food and wine products.

8. At the Gala Lunch, the Lord Mayor will announce a number of new sister city project initiatives including the International Biotechnology Conference, to be jointly organised by Australian Chinese Association for Biomedical Sciences and Tianjin Science and Technology Commission, and a new partnership agreement between RMIT University and Tianjin Normal University.

9. In the afternoon of Friday 30 May the Lord Mayor will depart Tianjin for Beijing. A number of high-level meetings in Beijing are being organised, including Dr Geoff Raby, the Australian Ambassador to China and Mr Dai Xianglong (former Mayor of Tianjin) who has recently has been appointed as the Chair for National Social Securities Funds Management Council.

10. A request has been made to the Beijing Municipal People’s Government for a courtesy call with a Vice Mayor of Beijing. The intention of this courtesy call is to discuss the development of a Memorandum of Understanding (MOU) between the Beijing Municipal People’s Government and the City of Melbourne. This MOU would focus on wide range of issues include business, educational and cultural exchanges. It would not constitute a formal sister city agreement, but provide a framework for ongoing business and trade connections between the cities.

11. Due to the significant high-level representation from the higher education/vocational training sector on the mission, meetings are also being sought with the Chinese Ministry of Education to discuss further educational exchanges between and China. It is anticipated these would include research collaboration, joint course delivery and staff/student exchanges.

2 12. On Saturday 31 May, the Lord Mayor is invited to deliver a key-note speech on sustainability and urban planning at Peking University, one of the most prestigious universities in China.

13. It is recommended that the Lord Mayor depart Beijing and travel to New Delhi on the night of Sunday 1 June. The Lord Mayor will arrive in New Delhi on the morning of Monday 2 June.

Delhi, India

14. On Monday 2 June the Lord Mayor will attend a briefing by the Delhi 2010 Organising Committee, undertake site visits to the various Commonwealth Games venues, and deliver a speech at a business briefing organised by the Confederation of Indian Industries, the peak industry body of India.

15. On Tuesday 3 June the Lord Mayor will meet with the Australian High Commissioner in India prior to attending a function hosted by the Chief Minister of National Capital Territory (NCT) of Delhi to celebrate the formalisation of the Strategic Alliance Agreement.

16. The Lord Mayor will also meet with senior executives of major Indian corporations on behalf of the Melbourne Airport Corporation. These meetings with Air India and Jet Airways will discuss the issue of direct flight links between Melbourne and India.

17. It is recommended that the Lord Mayor depart New Delhi on the evening of Tuesday 3 June, arriving in Osaka in the afternoon of Wednesday 4 June.

Osaka, Japan

18. On Wednesday 4 June the Lord Mayor will hold his first meeting with Osaka’s new mayor Mr Hiramatsu to discuss activities related to the 30th Anniversary of the sister city agreement.

19. Other high level meetings are currently being planned with the Business Partner City (BPC) Secretariat for Thursday 5 June.

20. Whilst in Osaka the Lord Mayor will participate in a ceremonial tree planting to mark the 30th Anniversary of the signing of the sister city agreement, subject to time allowance.

21. It is anticipated that the Mayor of Osaka will reciprocate this gesture and plant a tree during his visit to Melbourne in July.

22. The Lord Mayor will depart Osaka on the evening of Thursday 5 June, arriving in Melbourne in the afternoon of Friday 6 June.

23. All travel, accommodation and incidental expenses will be met by existing budget.

24. It is anticipated that the Lord Mayor will be accompanied by a senior staff officer, yet to be nominated.

Councillor Travel Guidelines

25. The Director Commerce and Marketing has confirmed that the travel proposal accords with the requirements of the Councillor Travel Guidelines.

3 Relation to Council Policy

26. The proposed visit by the Lord Mayor to China, India and Japan will deliver outcomes linked to the Council Plan 2005-2009 Strategic Objective One – to ensure Melbourne is a connected and accessible city, through a four year strategy to building international relationships that consolidate Melbourne’s capital city role and promote social equity, environmental equity and economic prosperity.

27. Advancing Melbourne’s Interests –Business and international Strategy 2008 – 2012 recognises the importance of enhancing Melbourne’s global connections through two way partnerships and the unique role the Melbourne Office Tianjin plays in facilitating two-way business, educational, cultural exchanges between the two sister cities.

Estimated Cost

28. The estimated cost of travel is $21,705 including airfare $15,255 (Business Class: Melbourne/Beijing, Beijing/Delhi, Delhi/Osaka, Osaka/Melbourne), accommodation $4,200 (up to $600 per night for 7 nights), and day to day incidental expenses $2,250 (@ $250 per day for 9 days) which may be incurred.

29. The estimated cost of the proposed travel will be met from the existing budget allocation.

Comments

Tianjin and Beijing, China

30. This year marks the 10th anniversary of the establishment of the Melbourne Office Tianjin. The high-level business, civic and educational mission, to be led by the Lord Mayor, will celebrate the significant achievements of the office over the past 10 years.

31. The mission includes representatives from other local governments, higher education institutions, and the biotechnology and urban design sectors. Nineteen delegates from fourteen organisations, including the City of Greater Geelong, Victoria University, La Trobe University, RMIT University, Monash University, Melbourne University, Carrick Institute of Education, University College, Baker Heart Research Institute and OTEK Australia have confirmed their participation.

32. The mission will incorporate visits to Beijing, Tianjin and Guangzhou - China’s three most vibrant cities – where participants will engage in a series of targeted business meetings, seminars, site visits and networking events.

33. This mission will develop significant connections with key government and business sectors and generate mutually beneficial partnerships for the participating organisations, as well as providing awareness of Melbourne as an important destination for business, trade, investment and tourism.

34. The Lord Mayor has been invited by the President of Asia Society to speak at the 18th Asia Corporate Conference in Tianjin. The 18th Asia Corporate Conference will explore Asia’s future in the context of China’s growing global influence. The Conference will seek to better understand the opportunities and challenges in China’s economic development and to examine strategic models of sustainability.

35. Confirmed speakers at the Conference include Huang Xingguo Mayor of Tianjin, China; Sheila Dixit, Chief Minister in Delhi India; Mah Bow Tan, Minister for National Development Singapore; Laurence Barron President of Airbus China and Zhu Min, Group Executive Vice President, Bank of China.

4 36. The Lord Mayor’s speech will profile the City of Melbourne’s capabilities in environmental sustainability and liveability industries, demonstrating how a city’s environment can be managed to ensure sustainable development and improved quality of life. It will also help strengthen Melbourne’s global positioning as a leading business, cultural and visitor destination for the region.

Delhi, India

37. During the Melbourne Commonwealth Games 2006, Lord Mayor John So presented a letter of intent to form a strategic alliance to the Chief Minister of the National Capital Territory (NCT) of Delhi. This was positively received and the agreement has been approved by the cabinet of NCT of Delhi.

38. The Chief Minister of the NCT of Delhi has invited the Lord Mayor to visit New Delhi to formalise the strategic city alliance between Melbourne and Delhi.

39. The formation of the Delhi-Melbourne Strategic Alliance will provide the Council’s stakeholders and the business community a foothold to explore and develop business opportunities with key partners in Delhi and throughout India.

Osaka, Japan

40. The visit to Osaka will enable the Lord Mayor, on behalf of the City of Melbourne, to plant a ceremonial tree to mark the 30th Anniversary of the sister city agreement. It will also provide the opportunity for discussion on both the 2011 Melbourne Osaka Cup and the proposed program for the Mayor of Osaka’s visit to Melbourne in July.

41. The key activity being undertaken in Melbourne to mark the 30-year Melbourne Osaka sister city relationship will be an exhibition of Kimono at Melbourne’s Immigration Museum. The Lord Mayor’s visit will progress discussion on a proposed reciprocal exhibition in Osaka.

42. Melbourne is a member of the Business Partner City Network – which is based in Osaka and aims to encourage trade and investment opportunities for SMEs throughout cities in the Asia Pacific region. The visit to Osaka by the Lord Mayor will enable meetings to take place with BPC Secretariat representatives.

Background

Tianjin and Beijing, China

43. Over the last two decades China has experienced a sustained period of rapid economic expansion with GDP growth averaging 9.5 per cent. China’s GDP grew by 11.1 per cent in 2006 and China is now the single largest contributor to global growth. China is the world’s second largest economy in purchasing power parity terms.

44. Australia’s two-way merchandise trade with China reached $49.9 billion in 2006-07, a 21 per cent increase on 2005-06. China accounts for 14 per cent of Australia’s merchandise export trade, worth $22.8 billion.

45. Australia’s total service exports to China increased by 10 per cent in 2006 to $3.6 billion, with education and travel accounting for around 80 per cent of services exports in recent years.

46. China’s rapid economic growth and in particular China’s emerging middle class is opening up opportunities for Australia’s non-resource merchandise exports (such as dairy items, wine and consumer goods), as well as Australian manufacturing, with exports increasing by 21 percent to $2.8 billion in 2006-2007 (www.dfat.gov.au).

5 47. Tianjin has undergone rapid development in recent years. Per capita GDP amounted to RMB 40,961, the 3rd largest among all provinces and autonomous municipalities after and Beijing. Tianjin is the region's largest financial centre and an important industrial centre in China (www.tdctrade.com).

48. In 2006, China’s National People’s Congress endorsed the Tianjin Binhai New Area development as part of the national five year plan. This central government support will see the Binhai New Area become the growth engine for North China, and confirm expectations to match the economic miracle achieved in the 1990s by Shanghai’s Pudong and the Pearl River Delta’s Shenzhen in the 1980s.

49. Economic relations between Tianjin and Melbourne have been further strengthened with the opening of the Melbourne Office Tianjin in 1998.

50. In 1998, the City of Melbourne became the first Australian local government (in partnership with Australia China Business Council -Victoria Division), RMIT University and Taylors College) to establish a business representative office in China. The Melbourne Office Tianjin has played a significant role in identifying and facilitating two way business activities between Melbourne and Tianjin.

51. The Melbourne Office Tianjin delivers a range of practical, cost-effective services to Australian companies wishing to export goods and services, invest or establish manufacturing under license arrangements in China. It also encourages cultural, educational and sporting exchanges between the two cities.

Delhi, India

52. India is a growing economy and has registered a rapid growth in the past five years. This growth has prompted a substantial increase in the trade between Australia and India.

53. India’s rapidly increasing middle class of 300 million people, coupled with a growing consumer affluence, is an attraction for foreign investors and exporters, and a likely source of future opportunities for service providers.

54. Australian education is regarded as world-class standard and economical, hence a popular destination for Indian students. India is only second to China in the number of students studying in Australia. Over 50 per cent of all Indian students studying in Australia are based in Victoria.

55. Indian outbound tourism is expected to grow strongly in the coming years. Tourism Australia estimates that the Indian market will reach 550,000 tourists by 2025, representing a value of more US$2 billion. The rapid growth in the Indian outbound market has prompted Tourism Australia to open an office in India. Melbourne has been an increasingly popular destination for Indian tourists after popular Bollywood films such as Salaam Namaste and Chak De were filmed in the city. Incredible India, the Indian Government’s tourism body, has a dedicated office in Sydney.

56. The Delhi 2010 Commonwealth Games will be India’s largest sporting event since the 1982 Asian Games. India is seeking collaboration from countries with experience in hosting major events not only to deliver Delhi 2010 but to assist them in bidding for other major sporting events such as the 2016 Olympic Games.

6 Osaka, Japan

57. Japan remains Australia’s largest export market and has only recently been overtaken by China as Australia’s number one trading partner. Osaka is the key commercial centre of Japan with more than 90 per cent of all businesses located in Osaka classified as small to medium enterprises.

58. Melbourne signed its first sister city agreement with Osaka in 1978. Over the past 30 years Osaka has remained one of Melbourne’s most active sister cities with a strong focus on bilateral cultural educational and people to people exchange. Key activities under the sister city program have included:

58.1. Melbourne Osaka Cup Double-Handed Yacht Race (since 1987 every 4 years);

58.2. development of successful ongoing school and youth exchange programs; and

58.3. major cultural events including the visits of the performers of the National Bunraku Theatre in 2003 and 2007 (Bunraku is a form of traditional theatre using puppets).

7 Agenda Item 6.1 Council 29 April 2008

FINANCE ATTACHMENT

LORD MAYOR TRAVEL TO TIANJIN, BEIJING (CHINA), NEW DELHI (INDIA) AND OSAKA (JAPAN) 28 MAY – 6 JUNE 2008

The expected that the cost of the proposed travel will be met from the existing budget allocation.

Joe Groher Manager Financial Services

Agenda Item 6.1 Council 29 April 2008

LEGAL ATTACHMENT

LORD MAYOR TRAVEL TO TIANJIN, BEIJING (CHINA), NEW DELHI (INDIA) AND OSAKA (JAPAN) 28 MAY – 6 JUNE 2008

There are no legal implications arising from the recommendation to this report.

Kim Wood Manager Legal Services