brc economic dev strategy booklet - business …€¦ · · 2016-05-17a 10-year blueprint for...

ECONOMICDEVELOPMENT STRATEGY

A 10-YEAR BLUEPRINT FORSustainable Economic Growth

MAYOR’S MESSAGE 3

EXECUTIVE SUMMARY 4

THE NEED FOR CHANGE 7 • The current state of play

• How Do We Change?

CREATING A CHANGED ECONOMY 10

• Achieving a Changed Economy

A VISION TO SECURE OUR ECONOMIC FUTURE 11

• Bundaberg Region – A Better Climate for Business

PATH TO A SUSTAINABLE ECONOMIC FUTURE 14 • Strong economic leadership and collaboration

• Infrastructure investment and development

• Industries of tomorrow

• Harnessing our global relationships

• Investing in our people

MONITORING OUR PROGRESS 26 • Implementation Plan

Contents

l i l• Implementation Plan

BUNDABERG REGIONAL COUNCIL ECONOMIC DEVELOPMENT STRATEGY 2014-2024 3

Mayor’s Message

The Bundaberg Region is on the cusp of great change and well positioned to take advantage of emerging opportunities to deliver a sustainable local economy.

Council has developed this Strategy to prepare for change and take advantage of the emerging economic environment, explore a new direction for our future and make a commitment to creating a robust and resilient economy for the region.

The Strategy is designed to assist Council, other levels of Government and the business community in driving economic development in our region. We will show leadership through implementation, in partnership with all stakeholders, to deliver sustainable economic opportunities and an enviable quality of life for Bundaberg Region residents.

Council is ‘Open of Development’ and committed to making the hard decisions that will drive the Bundaberg Region forward to continue economic prosperity. On behalf of the Bundaberg Regional Council, I thank members of the Business Bundaberg Program and the many key partners for their ongoing support in assisting Council to drive economic change in our region.

I look forward to working with you to deliver a prosperous community for the future.

Jack DempseyMAYORBUNDABERG REGIONAL COUNCIL

2014-2024 ECONOMIC DEVELOPMENT STRATEGY BUNDABERG REGIONAL COUNCIL4

FAST FACTS

» The Bundaberg Regional Council covers a region that spans coastal, city and country areas with a population of approximately 95,000 – with about half of those living in the city.

» The region has the most equitable climate in Australia; fift h in the world alongside Hawaii.

» Bundaberg city is a thriving regional centre; 45 minutes from Brisbane by air; 4 hours by road. It is a major service centre, commercial and industrial hub and works with surrounding towns and rural areas to support strong growth and the diverse needs of a dynamic community.

» The region’s economy is extremely diversified with the main components based around its traditional stronghold sectors of agriculture and related manufacturing.

» There is strong leveraging off significant agricultural enterprises to develop value-added products.

» Emerging opportunities for investment, development and value-adding exist at the Port of Bundaberg precinct and in the region’s aviation, tourism, health services, professional services, manufacturing, innovation and technology, lifestyle and food-related industries.

» Our proximity to neighbouring resource sector communities provides great opportunity for servicing industry requirements, attracting new residents and extended tourism benefits.

» Infrastructure for the digital age is an enabler with fixed wireless and fibre optic roll-out for broadband capability currently being implemented at various locations across the region. It is extremely important that we continue to push for appropriate broadband technology implementation.

1 Deloitte (2013) Positioning for Prosperity? - Preview release of Positioning for Prosperity 2014?

» Significant natural resources are available; particularly land and water and this places the region in a strong position, especially in the supply of food for the future.

» Tourism and other service industries are increasing in prominence, leading to an even more diversified and sustainable regional economic base.

» The region is the Southern Gateway to the Great Barrier Reef including kilometres of coastline and pristine beaches.

» Mon Repos is one of the most significant nesting areas for sea turtles in the world.

» Demographics are changing with significant settlement from Asia/Pacific.

» The region is home to iconic Australian businesses such as Bundaberg Rum, Bundaberg Sugar, Wide Bay Australia, Jabiru, and Bundaberg Brewed Drinks, all of which give the region a strong, noticeable and marketable identity.

Only through being ahead of the curve when it comes to growth for Australia and the region will we be competitive locally and have a good chance of establishing a sustainable regional economy, able to withstand external pressures.

The Deloitte “Preview release of Positioning for Prosperity?”, prosperity map, brings the fundamental core concepts together that point to future opportunities - global growth opportunities over the next 20 years (the vertical axis), Australia's expected advantages (the horizontal axis) and the size and placement of Australia's specific industry sectors.1

Executive Summary

Once in a Generation opportunity for the Future Economic Sustainability of the Bundaberg Region -

We are on the Cusp of Change

In order to best position the Bundaberg Region for the changed economy we must know what the emerging industries are, what our competitive advantage is, what current perceptions are and what sectors and initiatives we should pursue.


The above diagram reinforces that while the current wave of opportunity has focused on mining, the next (eg. tourism, agribusiness, international education) and future (eg. health, retail and wholesale, other education and training, telecommunications) waves include industry sectors that have already been considered and form an integral part of this A Better Climate for Business Strategy. For example, the Bundaberg Region’s growing role of being recognised as a regional centre which will capitalise on opportunities to grow professional services, educational opportunities, health care industries etc. reinforces how the paths selected to achieve the robust economy for 2024 align with the abovementioned research.

Ultimately, this Strategy plays to our strengths, guided by the Bundaberg Region 2031 Community Plan and emerging world trends which reinforces that economic development is a priority for Council and that Council is committed to being a key enabler to achieve the changed economy and, in doing so, our regional economic future.

The Queensland Government, “Queensland’s Response – Community engagement feedback to inform the development of the Queensland Plan (30 Year Vision)” shows there is consensus that regional level economic, industry and employment planning needs to be a priority, specifically, ensuring competitive and successful local industries (beyond mining) are available in the regions for local residents, and encouraging the relocation of people and businesses to regional areas. In order to achieve this, many believe regions themselves must have a compelling offer for industry – something government and industry will need to support and plan for2.

2 Queensland Government (2013) Queensland’s Response – Community engagement feedback to inform the development of the Queensland Plan

Future WavesNext Waves

Current Waves

Australian Advantage (right is stronger)

Source: Deloitte Access Economics

-10%GGDP

+10%GGDP

>GGDP

~GGDP

<GGDP

Global opportunity (G

GD

P grow

th, higher is stronger)

GasTourism

Health

Telecommunications

Construction Mining

Manufacturing

Media

ICT

BankingOil

Other education and training

Transport and LogisticsPublic Administration

Retail & Wholesale

Business & PropertyServices

Water andWaste Services

International Education

Wealth Management

Agribusiness


Queenslanders’ believe that there is an ingrained perception that the regions and smaller centres across the State are not seen as appealing/viable places to live and work – there is a reluctance to stay or relocate there. Some see this getting worse for the youth of today/tomorrow, unless something is done to address it. In order to shift perception and increase viability, much work needs to be done to establish the physical presence and offer being provided in these areas3.

A Better Climate for Business tackles these challenges head on with five essential paths for the future; Demonstrating Economic Leadership, Infrastructure Investment and Development, Industries of Tomorrow, Harnessing our Global Relationships and Investing in Our People that will enable a changed, open, responsive and strong economy.

Economic Development activity within the Bundaberg Region is on the cusp of change and commitment to this strategy will allow the Bundaberg Region to take advantage of the emerging opportunities. Regional economic development plays an important role in the overall performance of Australia’s economy.

It directly affects income, employment/job creation, investment, working conditions and ultimately, the wellbeing of all Australians. While the priority is for economic development in the Bundaberg Region, encouraging and supporting economic development locally can have spill-over effects for neighbouring communities and the nation as a whole.

A Better Climate for Business vision is that in 2024, the Bundaberg Region is a region in high demand, not only in terms of being an attractive region to live but also a sustainable region offering extensive choice to business and industry establishing, expanding or moving to the region.

The Better Climate for Business strategy will be reviewed annually as it seeks to identify the current economic development strengths that exist across the region and, in doing so, identify and prioritise the associated opportunities that Council, in partnership with other spheres of government, industry and business will focus on, for the next decade.

identify the

on, for the next decade.

3 Queensland Government (2013) Queensland’s Response – Community engagement feedback to inform the development of the Queensland Plan


The need for Change

4 Commonwealth of Australia (2013), Regional Economic Development Guide.

Improvements in human capital, particularly education and skills will assist in building the resilience of a region. Individuals with greater education and skills can pursue a wider range of employment opportunities, adapt to new processes and technologies which improve productivity, and improve their standards of living.

Sustainable (economically, environmentally, culturally and socially) communities and population change. Population change can be a significant factor in the long term viability of the local community in terms of economic, environmental, cultural and social sustainability. Population change aff ects demand for regional infrastructure and services, and can influence the amenity or liveability of regions.

Access to international, national and regional markets. Access to markets includes access to trading partners, clients and labour. Improving access to markets broadens trade, allows competitive industries to grow, and can increase the availability of goods and services.

Comparative advantage and business competitiveness. Eff orts to develop regional economies are most successful when they focus on building on local/regional strengths. Businesses can also use a region’s comparative advantage to build a competitive advantage, which is also developed through the combination of factors such as knowledge, resources, skills and the ability to innovate.

Eff ective cross-sectoral and intergovernmental partnerships and integrated regional planning. Coordinating cross-sectoral actions and government policies reduces the likelihood that policies are implemented in a fragmented manner and minimizes duplication at diff erent levels of government.

THE KEY DETERMINANTS OF ACHIEVING LONG-TERM REGIONAL ECONOMIC GROWTH IN ANY REGION INCLUDE:4

Australia’s economy is constantly changing and, in this regard, no two regions are identical. Some regions are well-placed to take advantage of emerging opportunities such as those associated with the expected growth in Asia. Other regions face challenges such as increased international competition placing pressure on existing industries.

Increasingly, regional initiatives take into consideration the unique characteristics, opportunities and challenges of an area and tailor responses towards them. These initiatives also harness local leadership and encourage regional engagement.

Effective economic initiatives are not about preventing change or the structural adjustment experienced by many regions. They complement a sound macroeconomic environment that encourages investment, innovation and competition, while also seeking to assist with the transition and encourage new opportunities. Through the Better Climate for Business strategy Bundaberg Regional Council will align the region’s strengths with the global trends identified through prioritisation of economic development activities.

Ultimately, the Bundaberg Region’s economy should be able to sustain internal and external pressures, because of its diversity; not be susceptible to a ‘two speed’ or ‘boom and bust’ economy that many regions in Australia face, due to lack of economic diversity.


The current state of play illustrates the need for changeOver the last 20 years, the Bundaberg Region has experienced variable change from an economic development perspective. Increasing demographic change; significant agricultural diversification; rationalisation of the sugar industry, employment pressures; increasing focus on lifestyle; changing government priorities and the creation of service/retail industries have all had an impact.

Since 2007, the economic development footprint has been broadened and reshaped with the amalgamation of the former Bundaberg City, Burnett Shire, Isis Shire and Kolan Shire Councils to become the Bundaberg Regional Council. The diversification that has occurred as a result of this amalgamation creates significant opportunity for economic development initiatives to be developed taking into consideration the many attributes of towns such as Gin Gin and Childers and Bundaberg City have to off er.

More recently, the business community has been exposed to considerable stress from factors including the Global Financial Crisis, a high Australian Dollar aff ecting export opportunities, unemployment rates remaining statistically higher than the national average and lowering coal prices aff ecting manufacturing businesses. However, the diversity of the Bundaberg Region economy has allowed it to generally, withstand these types of pressures which are oft en out of the control of the local economy. Examples of how the region’s economy has remained reasonably steady follow:5

» The Gross Regional Product (GRP) has remained positive and was estimated at $4.4 billion in 2012/13, whilst real annual GRP was 8.7%.

» The estimated number of employed persons in the Bundaberg Region was 40,754 in the June Quarter 2013, which represented a decline of 4.1% over the last year.

» The unemployment rate in the Bundaberg Region was 8.9% in the September Quarter 2013, an increase of 1.3% from the level recorded in 2012. Unemployment in the Bundaberg Region is above the average for Queensland at 5.9%.

» The number of dwellings approved in the Bundaberg Region was 291 to the September Quarter 2013, which represented a decrease of 24.6% from the level recorded in the year to September quarter 2012 (386).

» The value of non-residential buildings approved for construction in the Bundaberg Region to the September 2013 Quarter was $30.0M which represented a 104.09% increase from September 2012 ($14.7M).

As the Bundaberg region moves into 2014 and is on the cusp of change, a once in a generation opportunity exists to establish a strong foundation for the future economic sustainability of the region – doing nothing is not an option.

5 Bundaberg Regional Council (2013), Bundaberg Region Facts and Figures June 2013.


How do we change?To achieve positive economic change, regional initiatives must take into consideration the unique characteristics, opportunities and challenges that exist in the Bundaberg Region. Firstly, any strategy must recognise and celebrate the strengths that exist and can be built upon including:

» To The abundance of natural resources including unallocated water and fertile land is unique.

» The availability of affordable residential, commercial and industrial land is significant.

» The climate is ideal for a range of pursuits including agriculture, tourism and service industries.

» Iconic Food and Beverage brands already exist in the region.

» Growing our national profile as a “food bowl”, offering an abundant range of fruit, vegetables and an increasing variety of value added food products.

» Access to available labour is high and to a skilled workforce is increasing.

» Access to supporting technology has improved and continues to improve.

» Close proximity to capital city - readily accessible by road, air and rail.

» Growing social and cultural environment with a diversity of events and festivals occurring across the region such as the Crush, Multicultural and Childers festivals.

» A new planning scheme is being developed for the Bundaberg Region with economic development and planning priorities to be aligned.

» Increasingly well recognised as providing a high standard of professional services across a number of industry sectors including financial, legal, medical, agriculture, education, and aged care.

In recognition of the strengths that do exist, some of the new or emerging opportunities that could be fostered include:

» Fully recognising the degree of non-market grade fruit, vegetables and agricultural products and ability to turn these into new/innovative products.

» Availability and direct access to the Great Barrier Reef not only in terms of tourism, but also business and investment opportunities.

» As a priority region for high speed broadband roll-out emerging broadband capability provides enhanced opportunities to cater for new businesses to establish and existing businesses to grow in the Bundaberg Region.

» Development of the Port of Bundaberg precinct to fulfil a role as a major transport and industrial land contributor within the region and across the state.

» Proximity to neighbouring resource sector communities provides opportunities for servicing industry requirements, attracting new residents and extended tourism benefits.

» Availability of affordable development land coupled with access to high standards of technology means the region provides an excellent opportunity to establish government facilities which could include Defence Force, Police and other departments.

» Aviation industries have access to purpose built facilities at the Bundaberg Regional Airport and neighbouring private developments which provides opportunity for growth and niche residential development.

» Education precinct (with the diverse array of public and private schools from primary to secondary and tertiary options with the CQ University based in Bundaberg City) provides for the emergence of future business development such as that which has already occurred in partnership with the Bundaberg Airport for the Bachelor of Aviation or in partnership with the Friendlies Society Private Hospital for the Bachelor of Nursing or partnership with St Mary’s Primary School for the Bachelor of Learning Management.

New and/or emerging opportunities can form foundations for growth providing we capitalise on existing partnerships between levels of government, industry partners and the community to deliver jobs.

How do we change?How d


Creating a Changed Economy

By 2024 a changed economy for the Bundaberg Region will be achieved by capitalising on new and emerging opportunities that strengthen the local economy.

Over the next 10 years the Bundaberg Region will strive to directly and indirectly reshape the local and regional economy so that it has high ability for job creation, job attraction and investment opportunities. To do this, the focus will shift to understanding and promoting the many benefits the region has and could offer and, by doing this, foster new and existing partnerships to deliver a changed state in the economy. Primarily however, the region will build a robust economy that is focussed on attracting working families and, in doing so, changing the demographics of the population base.

To achieve this, and in line with the key determinants of achieving long-term regional economic growth, mentioned previously, there is a need to facilitate coordination and cooperation between different levels of government by focusing economic development efforts. To do this, the focus will shift to understanding and

promoting the many benefits the region has and could offer which will lead to fostering new and existing partnerships to deliver a changed state in the economy.

This approach will assist regional leaders to identify opportunities to align with government policies taking the lead from global trends, implement regional actions that support existing policies and take advantage of regionally-focused programs.

It will also ensure partnerships with entities such as the regional Chambers of Commerce, Bundaberg Region Rising Foundation, Bundaberg North Burnett Tourism and many other local organisations directly or indirectly involved in economic development are aligned to assist in delivering on the Better Climate for

Business Strategy.

Achieving a changed economyWith Bundaberg Regional Council fulfilling an enabling role, implementation of this Strategy will help move the region from an agriculturally-based economy to one that is responsive to national and global demand, with a skilled population/workforce and diverse investment opportunities.

The changed economy will be built on:

» Strong local and regional leadership which embraces collaboration and drives positive promotion.

» Leveraging the existing agricultural/horticultural industry to deliver high-end value added products.

» Leveraging the growing role of being recognised as a regional centre to capitalise on opportunities to grow professional services, educational opportunities, health care industries etc.

» A comprehensive industry attraction strategy that results in job creation (eg. ‘Open for Development’).

» Utilising well-developed international relationships to achieve new export markets.

» Promoting the Bundaberg Region as a great place to work, live and play with access to high speed broadband. (If you can do your job anywhere, why not do it here).

» Attracting skilled population and workforce and the contribution of a welcoming community.


By broadening what we have –

» The Bundaberg Region will capitalise on its existing traditional agricultural base by exploring and expanding with new agricultural produce that grows well in the temperate climate such as native foods.

» Capitalising on having the right ingredients for relocating industries from areas that have been encroached by urban development eg. South-East region of Queensland.

» Seafood processing is already an established industry within the Bundaberg Region but by 2024, companies in this space will consider what other products they can sell and also then promote; not only their existing high standard of seafood but also new emerging products.

» By 2024, the Bundaberg Region will have capitalised on having high standard of technology/broadband capability available and be recognised as a regional centre that can offer enhanced opportunities to cater for existing or new businesses to become established or based here.

» There will be enhanced work opportunities for skilled professionals to be based in the Bundaberg Region to service the opportunities available.

» The expansion of the use of the Port of Bundaberg will have been realised with the Port being recognised as a key transportation link in moving freight out of the state and nationally as well as a boutique residential and village development.

» Bundaberg Regional Council will continue to attract development through proactive initiatives such as “Open for Development”.

» Bundaberg Regional Council will continue to actively support its contribution as a member of WBBROC and, in doing so, support development of a regional Investment & Attraction Strategy which has achieved a dramatic positive shift in the number of new families/individuals/businesses relocating to the Bundaberg Region.

A visionto secure our economic future

THE VISION FOR A CHANGED ECONOMY WILL BE ACHIEVED THROUGH:

» Broadening what we have

» Value-adding what we have

» Taking up emerging opportunities

» Taking our place on the stage.

CONOMY H:

ave

e have

opportunities

the stage.

Bundaberg Region – A better climate for businessIn 2024, the Bundaberg Region is a region in high demand, not only in terms of being

an attractive place to live but also a sustainable region offering extensive choice to business and industry establishing, expanding or

moving to the region.


By value adding what we have - » By 2024 a conscious shift will be evident in

the consideration of how non market grade agricultural and/or seafood by-products can be readily processed to create innovative new products.

» Companies wishing to establish a manufacturing base outside a major metropolitan area will consider the Bundaberg Region, because of the region’s manufacturing and supply chain capabilities, transport links and available land.

» The diverse current options from primary through to secondary schools from both a public and private perspective will be held in high regard. Options for tertiary studies will

By taking up emerging opportunities -

» By 2024 the Bundaberg Regional Council via the Digital Enterprise Program will have facilitated significant change in small-to-medium size businesses (SMEs) and not-for-profits (NFPs) being able to maximise their opportunities through greater digital engagement, enabled by enhanced broadband capability. Being an active regional player will result in neighbouring WBBROC partnering Councils also benefitting from this focus.

» Agribusiness and Tourism are emerging trends globally that the region can leverage.

» Using clean technology will be part of many businesses normal operations with companies across the Bundaberg Region seeking to emulate standards achieved such as with the Millaquin Mill’s ability to use bagasse and Council’s ability to potentially use the methane from the landfill and apply this back to the grid.

» For tourism, business and export opportunities, Bundaberg being recognised as the Southern Gateway to the Great Barrier Reef will enable an expanded outlook on what the region has to offer.

By taking our place on the stage - » By 2024 the Bundaberg Region’s reputation

as being the “Food Bowl of Australia” will be nationally recognised and provide many and varied ways in which the positive attributes the region has to offer are marketed which subsequently results in a surge in increased community pride.

» Bundaberg being recognised as the Southern Gateway to the Great Barrier Reef will enable an expanded outlook on what the region has to offer.

have expanded not only in terms of choice but also the CQ University will continue to develop tertiary options that are directly linked to the existing assets the Bundaberg Region has to offer.

» The expansion of the Bundaberg Regional Airport precinct will see growth in airport-related manufacturing and services.

» The Bundaberg Region will be well recognised as providing high standards of professional services across a number of industry sectors including financial, legal, medical, agriculture, education and aged care which, in turn, provides opportunities for skilled professionals to move to the region.

» The Bundy Pride – Bundaberg Grown and Bundaberg Made brands will have received strong support from businesses across the region including major retail chains resulting in the promotion of what the Bundaberg Region has to offer as existing produce is packaged for the national and export markets.

» “If you can do your job anywhere, why not do it here” has become the catch-phrase for skilled professionals who have found their escape from the larger metropolitan areas.


GOALS FOR THE CHANGED ECONOMY

*Data sourced from the Bundaberg Region Facts and Figures December 2013

ECONOMIC GROWTH:Gross Regional Product: $4.4B Gross Regional Product: $6.6B(2012-2013) (Target annual growth rate of 5%)

POPULATION GROWTH:Current Population Growth: 1.4% Population Growth: 2.0%(2011-2012) (Equal to Queensland Growth Rate 2011-12)

EMPLOYMENT GROWTH:Current Annual Employment Growth: -4.1% Annual Employment Growth: 1.9% (2012-2013) (Equal to Queensland Growth Rate 2012-2013)

EMPLOYMENT:Current Unemployment Rate: 8.9% Unemployment Rate: 5.9% (Annualised September Qtr 2013) (Equal to Queensland Unemployment Rate

September Qtr 2013)

EMPLOYMENT:Employment Participation Rate: 57.4% Employment Participation Rate: 65%(2012) (Queensland Participation Rate 67.4% - 2012)

PERSONAL INCOME:Average Wage & Salary Income Growth: 5.6% Average Wage & Salary Income ($41,356pa – 2010-11) Growth: 6.0% (Equal to Queensland Average Wage & Salary

Income Growth 2010-2011)

EXPORTS:Value of Goods Exported from the Value of Goods Exported from the Bundaberg Region: $1.2B Bundaberg Region: $1.8B(2012-2013) (Target annual growth rate of 5%)

2014* 2024

Tangible goals from2014 to 2024 provide

a solid foundation upon which the

Better Climate for Business vision can be secured

for the Bundaberg Region.


The path to a sustainable economic future will be guided by strong regional leadership and planning to achieve effective regional economic development. The path underpins good regional development decision-making and investments. Regional planning processes can identify comparative advantages, manage regional growth pressures, explore economic opportunities and consider environmental sustainability and options to improve liveability.

Regional planning includes engaging and consulting with a wide range of stakeholders about the strengths, challenges, needs, opportunities and priorities for the wider region. These stakeholders include all levels of government, regional development bodies, business, industry, institutions and community groups.

A particular strength that exists within the Wide Bay Burnett Region is the strong regional leadership within the Wide Bay Burnett Regional Organisation of Councils (WBBROC)6. Since 2000 the Councils that make up WBBROC have sought to implement a regional structure to guide service delivery particularly in the areas of roads, sport and recreation and economic development. The WBBROC has accepted a

leadership role on behalf of its regional community to increase economic prosperity and the benefits that flow from this by attracting people and businesses to move to the region. Bundaberg Regional Council is an active member of WBBROC and is a firm believer that Councils working regionally is very eff ective once priorities, skills and funding is pooled.

At a local and regional level, effective leadership and governance by the Bundaberg Regional Council has ensured that a strong foundation has been established upon which future economic growth for the Bundaberg Region is anticipated. However, responsibility for regional economic development is shared between a number of stakeholders including all levels of government, local businesses and the community. Strong regional leadership can align the priorities of all these stakeholders to drive initiatives for regional benefit.

Getting regional planning right is important for all of Australia’s regions. It strengthens and unites regional leadership, aligns disparate priorities, and assists each region to make the most of opportunities and respond effectively to challenges.7

6 The Wide Bay Burnett Regional Organisation of Councils Inc (WBBROC) was formed in 2000 to represent the interests of all councils within the Wide Bay Burnett region. www.wbbroc.org.au7 Commonwealth of Australia (2013), Regional Economic Development Guide.

Path to a sustainable economic future


12345

The outcomes of regional planning can be an agreed vision for the region’s future, and a set of related strategic priorities that the region will work towards achieving. Regional plans clearly indicate to key stakeholders the region’s current circumstances, its strengths, and challenges, and where it wants to be in the future.

Bundaberg Regional Council’s new planning scheme is in the process of being developed for the Bundaberg Region which provides a unique opportunity to ensure economic development and planning priorities support each other and are aligned.

A Changed Economy by 2024 will be evident as major infrastructure investments occur such as with further expansions to the public and private hospitals, port infrastructure to enable increased export potential, support for residential developments to enable future retail and manufacturing employment opportunities.

A Changed Economy will result in the Bundaberg Region being seen as a region with high investment potential and demand. While there will be a positive shift in high-value industries investing in the region, by 2024 the Bundaberg Region will also see a renewed focus on the traditional agricultural sector with innovative value-adding produce and products being developed.

As part of the existing trade and investment strategy a Changed Economy will see the Bundaberg Region’s connectivity to national and global markets not only strengthen the existing business base but will also deliver improved brand recognition. With established export markets in horticulture, seafood, livestock, food and agri processing, sugar cane, aviation and education, the region will position itself to capitalise on the strong demand for Australian products and services.

By 2024 the Changed Economy will result in the emergence of new business development opportunities linked to the existing high standards of education and training options. These business opportunities will capitalise on the existing benefits the Bundaberg Region has to offer and, in doing so, result in the region being an attractive region for skilled individuals to live and play while pursuing interesting and diverse career opportunities.

Paths to a changed economyTo achieve the economic change required, there are five essential paths that will be followed to create a new, open, responsive and a strong economy, including:

STRONG ECONOMIC LEADERSHIP AND COLLABORATION

INFRASTRUCTURE INVESTMENT AND DEVELOPMENT

INDUSTRIES OF TOMORROW

HARNESSING OUR GLOBAL RELATIONSHIPS

INVESTING IN OUR PEOPLE

These paths will assist in determining specific priorities to focus effort by all parties over the next ten years.

A Better Climate for Business will create a new, open, responsive and Changed Economy which will result in many of the current profile traits being reshaped with a focus on tackling the existing perceptions.


Industries of Tomorrow

PATHSFOR A ROBUST

ECONOMY

Strong Economic

Leadership and Collaboration

Investingin our People

InfrastructureInvestment &Development

Harnessingour Global

Relationships

PPAATTTHHHSS

PopulationGrowthEQUAL TO

QLD RATE 2%

Gross RegionalProduct

$6.6B

AnnualEmployment

GrowthEQUAL TO QLD

GROWTH RATE 1.9%

UnemploymentRate

EQUAL TO QLD RATE 5.9%

Value of Goods Exported fromthe Bundaberg

Region$1.8B

Average Wage and Salary Income Growth

EQUAL TO QLD RATE 6%

EmploymentParticipation

Rate65%

Goals to build a changed economy

GOALSTO BUILD

CHANGEDECONOMY


Strong Economic Leadership & CollaborationStrong economic leadership and collaboration by government, business and industry underpins achieving a changed economy. Governments alone don’t create prosperity, business and industry does.

BUNDABERG REGIONAL COUNCIL ECONOMIC DEVELOPMENT STRATEGY 2014 2024

Leadership and collaboration are essential components in the delivery of a Changed Economy for the Bundaberg Region and requires the unified eff orts of business, industry, community and all levels of government.

To achieve the regions Changed Economy vision for the future will demand champions who can provide leadership and direction to proactively seek ways to address the regions challenges as well as promote the strengths and competitive advantages of the region.

In the Bundaberg Region, the Bundaberg Region Futures Program was established in 2003 and continues to fulfil a leadership, engagement and partnering role on behalf of business and industry from an economic development perspective. This is an important role for business and industry to play their part in the economic development of any community.

The formation of robust relationships and ties with key business, industry and government stakeholders on a national and international level will enable regional leaders a platform to elevate opportunities and leverage investment and resources to address the priorities of the

Changed Economy. Interregional collaboration will also be an imperative of pursuing advocacy and support for regionally significant issues.

Bundaberg Regional Council is a member of the Wide Bay Burnett Regional Organisation of Councils (WBBROC) and its Economic Development Advisory Committee known as REDAC which provides strategic direction as mapped out in the Wide Bay Burnett Regional Economic Development Strategy 2013-2018. As a significant stakeholder of WBBROC this strategy aligns with the priority project areas;

1 LIVEABLE CITIES – LIVEABLE TOWNS

2 DIGITAL ECONOMY SUPPORT

3 CENTRE FOR REGIONAL INNOVATION

4 EXPERIENTIAL/OUTDOOR/ECO-TOURISM

5 ECONOMIC SCENARIO PLANNING.

Implementation of the priority projects and strategic responsibilities has and will continue to deliver both qualitative and quantitative savings for Councils and, in doing so, the State Government, as the work being undertaken delivers on both state and local government priorities.


Not only are regional partnerships at a local government level integral to achieving positive change in economic development, the role of business and industry is paramount to ensure projects and initiatives are tangible and practical to deliver the desired change. For example, a recognised, competitive regional identity/brand is crucial to changing the internal and external perceptions that exist. Campaigns such as Bundy Pride – Bundaberg Made/Bundaberg Grown and “Work, Live, Play – You’ll Never Want to Leave”, “Bundaberg – Open for Development” and “Wide Bay Burnett – Perfect Place At Your Perfect Pace” can complement each other to positively promote the many assets the Bundaberg Region has to offer. In this regard, regional leaders – federal/state/local government and business/industry - must support and drive the shift of this perception to provide a new foundation upon which real economic development change can occur.

An annual economic development forum will report on key economic performance indicators and provide commentary on the region’s economic progress. Priority activities and initiatives will lead an evolutionary course based on the outcomes of this information and will require continued monitoring to achieve a Changed Economy.

Priorities for 2014-2024» Convene the annual Economic

Development Forum (Bundy 4 Breakfast) to provide progress reports regarding implementation of the Strategy and engage with industry/business regarding new projects/initiatives.

» Quarterly Chamber of Commerce Presidents meetings.

» Support of the Bundaberg Region Futures Program.

» Provision and dissemination of relevant information including the Local Economy Dashboard, Local Impact and reporting on key economic data.

» Enhance communication and engagement through the Business Bundaberg Alert e-Newsletter and the Business Bundaberg Website.

» Strengthen Regional Tourism Partnerships with Bundaberg North Burnett Tourism.

» Coordination of the Economic Recovery Sub-Committee.

» Continue to be an active member of the Wide Bay Burnett Regional Organisation of Councils (WBBROC) and Regional Economic Development Advisory Committee (REDAC).

» Support local business through mentoring and peer review programs

» Investigate the establishment of the Bundaberg Region Economic Development Zone.

» Market and promote the region nationally and internationally.

» Attracting and hosting business delegations.


Major development projects will have a generational impact on business, employment and investment growth.

To identify and secure investment in the Bundaberg Region’s infrastructure priorities, key stakeholders must appreciate the current state of play in relation to what currently exists and the type of investment/infrastructure required to ultimately result in the creation of employment opportunities for not only the broader community, but skilled workers/professionals.

While there has been some investment in the Bundaberg Region the time has come for new and enhanced investment to occur particularly given the close proximity of the region to South-East Queensland. The Bundaberg Region has major industry investment in the form of the Port of Bundaberg, Bundaberg Sugar, Diageo Rum Distillery, Bundaberg Walkers Foundry, Bundaberg Technology Park to name a few.

The Bundaberg Region is fortunate to have a regional airport, a freight and passenger rail service and in particular the Port of Bundaberg. Recognition that the Port of Bundaberg is critical regional infrastructure in the Wide Bay Burnett Regional Plan (September 2011) provides a strong basis upon which all key partners at a state and local government level should work together to capitalise on associated opportunities, on the western bank of the Burnett River includes strategic port land which may accommodate an expansion to the Port of Bundaberg in the future. It is also acknowledged that options for the expansion of the Port have been identified to accommodate a wide range of commercial and recreational uses including coastal shipping, defence vessel basing and servicing and provedoring, SuperYacht servicing and bulk fuel storage and transport.

Services such as energy, water, waste services are fundamental to a growing economy and it is therefore highly important that sufficient services are provided to meet the evolving needs of business and industry. For example it has been identified that the Bundaberg

Region has gaps in the provision of some services including mains natural gas. A number of business proponents have indicated that insufficient supply of gas is major issue for their business and means they could not expand in the Bundaberg Region. Such a situation should warrant the call to action of local and state government representatives and the business community as a whole.

It is internationally accepted that communities with access to appropriate broadband also have higher per capita Gross Regional Product.8 The Bundaberg Region has traditionally had a below national average uptake of internet connectivity however with the capacity being offered through the federal governments high speed broadband network there is an opportunity for residents and business to transition new technologies to suit. Critical to the success of this infrastructure investment is the education of business and adaptation of technologies that will yield an intergenerational dividend for the region.

Suitable commercial and industrial land availability is essential to facilitating economic growth. There are some schools of thought that suggest the Changed Economy will see a landscape of more service orientated industries utilising higher density allotments and moving away from the traditionally large commercial and industrial sites of today.

Infrastructure Investment & Development

8 Broadband Strategies Handbook - Tim Kelly and Carlo Maria Rosotto (Ed.)


Beyond speculation of future trends it is fair to conclude that the region requires a whole of region framework which accommodates strategic land development that compliments and adds value to an existing network of infrastructure and land supply. Key to achieving this framework is a planning scheme which is nimble, flexible and efficient. Bundaberg Regional Council has reviewed its planning scheme for adoption in 2014.

Social infrastructure may often be overlooked as a critical component of economic development but it has very real implications for the Bundaberg Region. With goals and aspirations of retaining and attracting highly educated and qualified residents to the region there is an equal requirement for developing social infrastructure for recreation, socialization and creative space.

Delivering on the region’s infrastructure priorities will, however, necessitate the identification and adoption of different funding models to those previously pursued at a Bundaberg and Wide Bay Burnett regional level. Facilitating both public and private sector investment in regional infrastructure is a key priority to achieving future prosperity and to attract investment in high-value industries of the Changed Economy.

Priorities for 2014-2024» Enabling Infrastructure – these

infrastructure projects are required to unlock potential industrial investment in the region. Areas include, but are not limited to the following:

• Access to industrial quantities of Gas

• Childers and Gin Gin Bruce Highway logistic hub opportunities

• Port of Bundaberg/Fairymead Industrial Investigation Area

» Freight Demand Study » Transport and Logistics Study

• Bundaberg Regional Airport and Aviation Precinct

• Support review of Bruce Highway upgrade.

» Regional connectivity – Work with telecommunication providers to ensure the delivery of word-class broadband infrastructure and services.

» Regional industry and capacity profiling - Clarify and map the supply chains for projects of significance and identify gaps and opportunities for local business supply chains.

» Develop a Regional Industrial and Commercial Land Investment Prospectus to market business attraction and investment opportunities.

» In partnership with Queensland Government advance master planning of strategic land holdings and precinct developments such as the CBD

Riverside Precinct.

» In partnership with Bundaberg North Burnett Tourism and other key stakeholders advance the priority projects detailed in the Destination Tourism Plan.

» Support the development of key enabling infrastructure investment including:

• Rubyanna Waste Water Treatment plant • Mon Repos Masterplan • Barolin Street Upgrade • Bundaberg Showgrounds

Redevelopment • Bundaberg Recreational Precinct • Kay McDuff Drive Ring Road

Connection • Strategic land Masterplan.


Targeting the attraction and development of high-value industries will have great potential to generate employment in the Bundaberg Region.

A trend that is dramatically influencing the economy of regional Australia is the emergence of an economy that no longer has geographical co-location as a key pre-requisite of economic success. The mobility and connectivity of individuals, skills, professionals, commodities and industries has been radically improved by the technological revolution.

Central to building on the foundations of the technology revolution in a Bundaberg context is the attraction and development of high-value industries. The contribution these industries make to regional economies is significant and can assist in the development of a resilient and globally competitive Changed Economy.

Progressive career options and competitively remunerated employment opportunities are typically generated from high-value industries. These industries are oft en referred to as Creative or Clever Industries and utilise the trade of information, knowledge, specialised services and intellectual property to form a highly productive industry sector.

Some factors that make these industries of high importance to regional areas like the Bundaberg Region is that knowledge workers have a unique ability through the availability of technology to work around their lifestyle choices while having very competitive access to global markets.

There is evidence that global demand is increasing for the goods and services supplied by these industries and that the Bundaberg Region is well positioned to capitalise on the growing markets in Asia. There are potential opportunities to supply global markets as well as opportunities to seek capital investment for the region.

High value industries are supported by new and enabling technologies and are synonymous with a culture of entrepreneurialism and innovation. For the Bundaberg Region to embrace the Changed Economy and attract high value industry it is recognised that investment in knowledge based capital is required and a framework for supporting business and industry in their development phase is essential.

A collaborative eff ort will be necessary to promote the development and implementation of new technologies, including digital and broadband capability. It is broadly acknowledged that business and industry that is digitally engaged perform better and provide greater employment productivity.

In this regard, within a Bundaberg Region context, the industries that will be a significant feature of the Changed Economy include:

» AGRIBUSINESS • Expanding into niche food and beverage

value adding production (eg. food markets) will see an increase in demand for local agricultural product.

• Global Food Security – the region has large tracks of arable soil and critical water infrastructure.

» AVIATION & AEROSPACE • The expansion of the Bundaberg Regional

Airport precinct and neighbouring private development will see growth in advanced manufacturing and knowledge-based aviation services.

» TECHNOLOGY & INNOVATION • Identify and drive investment into

knowledge based infrastructure that will support innovation and digital participation.

Industries of Tomorrow


» HEALTH & COMMUNITY SERVICES • Health care (including aged care) services

are already the 4th highest contribution to GRP and with an ageing population this is expected to increase in the coming years. By 2024 it is predicted that Health and Community Services will become the largest employer.

» TOURISM, SPORT & LEISURE • With awareness rising that Bundaberg is

the gateway to the southern Great Barrier Reef, tourism product diversification is expected to raise tourism expenditure.

• Events such as Cane to Coral, Multi-Cultural Festivals, Regional Flavours and the Ring Road Run are rapidly becoming feeder events to major events.

» PROFESSIONAL SERVICES • Professional services play a key role in

Bundaberg’s position as a major regional service centre and is acknowledged as a critical enabler of the higher value industries. Further, a vibrant and sustainable CBD is an essential ingredient in a regional centre.

» EDUCATION & RESEARCH • These services are expected to

increase due to major investments in Trade Training Centres/Wide Bay Institute of TAFE/CQUniversity.

» CLEAN TECHNOLOGY • The Region acknowledges the

importance of reducing the carbon footprint and will support local business and industry implementing innovative practices to achieve environmental sustainability.

issre.e.

Priorities for 2014-2024» Develop a targeted high value

industry strategy to address growth impediments and seek opportunities

to grow and expand industry sectors.

» Facilitate an environment that encourages investment and growth in high value business and industry.

» Improve productivity through digital innovation and advanced technology.

» Continue implementation of the Bundaberg Region Digital Economy Strategy.

» Leverage the region’s low cost of living by encouraging teleworkers or the digital workforce to reside in the region and utilise technology to

work remotely.

» Increase employment opportunities through partnerships with new and existing businesses.

» Showcase and acknowledge innovation and best practice in business.

» Pursue regionalisation of Government Department opportunities.

» Support economic initiatives that promote agricultural/horticultural diversity (eg. food markets).

» Support economic initiatives that promote the cultural diversity that exists within the Bundaberg Region.

» Focus on attracting medical, aged care and health care professional services.

» Identify and support new and existing innovative business opportunities.

» Continue to support the retention and sustainability of a strong, viable central business district.


Harnessing our Global RelationshipsIncreasing the region’s connectivity to national and global markets will not only strengthen our economic base but will also deliver improved brand recognition.

Emerging and developing economies in regions such as China have transformed the global economic landscape with increasing industrialisation and distribution of wealth across the population bases. These global partners have driven demand for services and in a regional context have created opportunity for the trade of commodities and opened channels for investment. Tourism and Education have seemingly been a gateway for establishing global relations with these regions but as stronger ties are developing and relationships maturing there is increasing opportunity to focus on trade and investment transactions.

Any form of trade or export from a region like Bundaberg has far reaching benefits across the economy and it is therefore necessary to target actions that build on the existing global relations and trade networks. The Federal and State Governments continue to focus on trade opportunities with Asia and provide resources and channels to enter markets and form strong commercial relations.

The Bundaberg Region has already demonstrated its industry and trade strengths

in manufacturing and more recently in education and tourism. However, high value food production has seen the establishment of nationally and internationally recognised businesses who have become industry leaders through integration of advanced agriculture practices and farming systems, advanced food manufacturing and processing, innovative food product development and packaging and remarkable sales and branding systems.

With established export markets in horticulture, seafood, livestock, food and agri processing, sugar, aviation and education, the region is well positioned to identify and capitalise on the strong demand for Australian products and services.

The Bundaberg Region’s business and industry sector have a proven track record in responding positively to change and competition in the international marketplace. This success is founded in a continued commitment by all sectors to invest in world class infrastructure, intellectual capital and quality management systems, together with ongoing research and development.


There are a range of local companies which are competing internationally and have well established trade networks through their export activities. These companies should be supported to not only grow and be prosperous but ensure other local/regional companies are able to learn from their experiences.

Council, through their global sister city relationships, have established high level government to government connections within areas of China and Japan and will be fostering mutual and enduring business, cultural and community links.

A Bundaberg Region Trade and Investment Strategy will be developed to enable the region to build its competitive strengths in a global market place. The following goals have been identified to guide the Council’s trade and investment strategy:

• promoting the capabilities, products and services of the regions’ export ready businesses

• assisting local firms to generate export sales which will expand the regions’ economy and workforce

• promoting the region as a preferred location for investment and relocation

• developing a pro-active, commercially focused international connections program that leverages the regions global contacts.

Priorities for 2014-2024» Develop the Bundaberg Region

Trade and Investment Strategy and implementation plan to form stronger international commercial relationships that will promote opportunities for local business

and industry.

» Establish firm linkages and collaborate with the State and Federal Government and other agencies to facilitate trade and investment opportunities.

» Support regional organisations through the promotion of relevant Trade Forums covering informative sectoral and market insight.

» Establish an annual trade delegation program led by Council to promote the regions products and services

and investment opportunities.

» Provide Trade Commissioners with current information on the Bundaberg Region highlighting business and investment opportunities.

» Develop promotional material that showcases investment-ready opportunities in the region to an international market.


T STRATEGY 2BU IL ECONOMICGIONAL COUNC

9 Starfire Solutions Business Insight 201310 Regional Australia Institute (21 January 2014) “There’s No Place Like Home (in Regional Australia)”

Investing in human capital is no less important as investing in infrastructure. Indeed, it is perhaps more important.

Human capital is one of the most important inputs to economic activity. Human capital is crucial to supporting local businesses to be competitive and drive economic growth. Businesses need access to workers with suitable skills, which is particularly important for advanced industries that rely heavily on technical knowledge and creative abilities. A lack of access to appropriate human capital can constrain the growth of local businesses, or even force them to relocate.

The structure of the Bundaberg Region’s business and industry sectors are expected to transition significantly over the next decade with the top growth industries predicted to include tourism and related service industries; healthcare and social assistance; education and training and professional services9. A challenge exists not only for businesses to explore new opportunities in these industries but also for the supply of a skilled workforce.

Given population growth is predicted to continue on a strong trajectory the demographic profile underpinning this growth will not necessarily support the development of a Changed Economy. The current ageing population and under representation of 20 to 40 year olds has many implications for regional workforce participation and productivity. The Bundaberg Region’s relatively high unemployment levels and low workforce participation coupled with the demographic profile detailed previously does not position the region to provide an appropriate

Investing in our peoplen

» Facilitate an annual regional employment forum with input from all levels of Government and local business/industry representatives to seek solutions which address unemployment challenges

for the region.

» Continue to build stronger relations with education sector in the region i.e. Council and CQUniversity Accord and sponsoring cadetships in engineering.

» Continue to support regional collaborative efforts in developing a higher profile for the Wide Bay Burnett Regional brand to drive recruitment and retention outcomes.

» Facilitate and promote business education and mentoring programs.

» Leverage existing Sister City relationships to increase the intake of international students in tertiary, technical and secondary schools.

» Regularly monitor changes in the labour demand and support those agencies who connect business with skilled workforce.

» Continued investment in youth engagement and development programs.

workforce to meet thedemands of the changed economy.

Anecdotal information generally indicates there are an increasing number of people returning to Bundaberg which is in line with that espoused by the Regional Australia Institute in January 2014, that “…‘Returners’ make up a significant pattern in internal migration that oft en fails to be recognised as a positive – and popular – life choice for many Australians.”10 However, while anecdotally this may be the case, statistically the results, as detailed previously, do no support this belief.

In this regard, these factors demand a strategic eff ort in developing and attracting a skilled and professional knowledge based workforce to the region. Involvement in programs like the ‘Liveable Cities Liveable Towns’ priority project will act as an avenue to nurture knowledge workers and off er services to mentor and share knowledge.

Council also recognises the importance of providing for an ongoing investment in and engagement of the youth across the Bundaberg Region.

A collaborative approach from all levels of government, business and industry is required to form innovative systems and practices to recruit and retain talent within the region. It is necessary to engage the community to raise awareness of local opportunities and encourage participation in education, training and industry skill development programs that are targeted at supporting the demands of the Changed Economy.


Implementation PlanThe Implementation Plan will be underpinned by a range of targeted action plans which will be critical to achieving real progress on the priorities listed throughout this strategy. Careful consideration has been given to align the Better Climate for Business strategy with Council’s Community and Corporate plans.

Council will develop an Implementation Plan which will consolidate the 2014-2019 (i.e. <5 years) suite of priorities listed in the strategy and provide the basis for monitoring progress in reaching the region’s economic goals over the next 10 years. The plan will also identify the responsible strategy partners to deliver priority actions and the associated performance measures.

An annual presentation on the regional economy will be produced in November/December each year (Bundy 4 Breakfast Economic Development Forum) so the community is appropriately informed on the status of the Implementation Plan and the transition to a changed economy.

Collaboration and partnership with business, government and the wider community will be essential in achieving the region’s vision of A Better Climate for Business in the changed economy.

As with any Strategic Plan, its success will depend on the collective ability of all stakeholders to review and measure progress towards achieving the aspirational goals for the changed economy in 2024, which include:

» Gross Regional Product at $6.6B targeting an annual growth rate of 5.0%.

» Population growth at 2% being equal to Queensland’s growth rate 2011-2012.

» Employment growth at 1.9% being equal to Queensland’s growth rate 2012-2013.

» Unemployment rate at 5.9% being equal to Queensland’s unemployment rate September Qtr 2013.

» Employment participation rate achieving a target of 65% participation in the Bundaberg Region.

» Average wage and salary income growth at 6%, being equal to Queensland’s average wage and salary income growth 2010-2011.

» Value of goods exported from the Bundaberg Region of $1.8B targeting an annual growth rate of 5.0%.

Progress towards achieving these goals is measured on a quarterly basis via the Local Economy Dashboard which provides a graphical illustration of the key economic indicators and associated changes. The Bundaberg Regional Council Facts & Figures can be downloaded from:

http://www.businessbundaberg.com.au/invest/bundaberg-region-facts-and-figures

Monitoring our progress

NOTE TO READER

Why community engagement is important

Our Economic Development Strategy 2014-2024 will guide how we will change the regional economy, improve productivity and build on our entreprenurial spirit over the next decade.

It will drive employment opportunities for our community, raise the profile of our region to attract investment and help support our emerging idustry areas.

We all have an interest in our region's economic future and now is your chance to have a say.

Tell us what you think

VISIT www.businessbundaberg.com.au/eds

CALL US ON 1300 883 669

WRITE TO US AT [email protected]

TO FIND OUR MORE VISIT www.businessbundaberg.qld.gov.au/eds

LOOKING TO OUR

FUTURE

For more informationTELEPHONE 1300 883 699 EMAIL [email protected]

www.bundaberg.qld.gov.au/business

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