A Review of the
Economic Development Program of
Parramatta City Council 2001-2006

Report to Parramatta City Council

Prepared by Mike Thomas,

Economic Outcomes Manager

Parramatta City Council

Incorporating a significant and independent contribution
from Professor Andrew Beer, Flinders University, Adelaide

May 2006

Contents

Page
Introduction / 1
Executive Summary / 2
1. A New Model / 3
2. Review of Achievements / 11
3. Strategy and Structure / 23
4. Independent Report from Professor Andrew Beer / 29

A Review of the Economic Development Program of PCC 2001 – 2006ii

Introduction

Whilst a number of reports have been presented to Parramatta City Council on their Economic Development Program and annual expenditures have been incorporated into the Council’s Annual Report, no formal review of the Economic Development Program has been undertaken in the last 5 years.

Between 2001 and April 2006 total expenditure on the program reached approximately $2.5 Million funded by a Special Rate levied on commercial properties in the Regional Environment Plan (REP) Area / Central Business District (CBD) and Primary Districts - see Attachment 1.

This Report details a review of this program, and more specifically:

·  Program delivery – what has been achieved?

·  Strategy and structure – are current arrangements working and what improvements should be made?

·  The future, it puts forward a detailed model together with an implementation schedule that has been designed to recognise Council’s role, maximise partner input and maximise Economic Outcomes.

At the outset, it should be clearly noted that the approach taken in conducting this review, has determined not to be unnecessarily critical. But rather, to seek to objectively understand what has been happening – highlighting the positive but also making any case for improvement so as to move forward constructively. On this basis, this report aims to be based largely on factual evidence as presented in Minutes, Reports, Agendas and project outcomes together with comments made by those who have participated in the review. The methodology employed and timescales followed can be found in Attachment 2.

Executive Summary findings and proposals for a new model are located at the very front of this report.

Supporting the review process were current members of the Parramatta Economic Development Board (PEDB), senior Council staff, and external business people. Professor Andrew Beer from Flinders University in Adelaide, an international expert in Economic Development provided a completely independent overview.

Each member of the review panel was regularly updated with regards to the information presented in this report, and each was provided with a complete historical set of minutes, reports and agendas relating to the Economic Development program since 2001.

A draft of this Review Report was the subject of a PEDB Review Panel workshop on the afternoon of 28 April, 2006 which was chaired by Professor Beer. A record of this workshop and a subsequent detailed report back to Parramatta Council by Professor Beer can be found on pages 29 to 64. The PEDB as a whole, considered a draft of this report on 24 May 2006 and agreed that it be forwarded to Parramatta City Council for endorsement.

Executive Summary

There has been a significant amount of activity that has been undertaken by Parramatta City Council’s Economic Outcomes Team and its partners over the last few years. Previous reports to Council, the analysis of activities undertaken as part of this review, together with comments made during the review process have recognised the broad range of projects that have been pursued. Of special note have been the positive impacts on increasing visitors to the Heritage Centre, the assistance given to companies and organisations that have relocated to Parramatta, the increasing standard of the quality of internal research, publications, and promotional collateral which has been drawing more and more attention from our external audiences, and the substantial amount of support that has been given to partners to help promote Parramatta. On the other hand, a lack of focus (or more accurately a lack of time and people resources relative to the massive scale of activities undertaken) has made it difficult to accurately quantify achievements. Therefore, whilst a tremendous amount of service has been delivered, little by way of measurement mechanisms were put in place to deduce how well this has been done and more importantly what effect has been produced.

It has also been established that whilst the PEDB has played an important role, there have been inherent issues that have impacted on its own performance as a Committee of Council with subsequent follow through effects on the economic development activities undertaken by Council and its partners. A stronger and more prescriptive foundational guide (Terms of Reference), a longer-term Chairmanship, and the development of clear strategies or action plans would have filtered down to the delivery level and provided a check on what was being done, how much, by whom, why, and for what reason. This could have then provided a better basis on which to report achievements and make that all important link between activity and outcomes. It might also have limited the high turnover of PEDB members which has been an historical fact of the duration of the Board.

Professor Andrew Beer together with the Review Panel also recognised the above. Amongst the recommendations made by Professor Beer were the need to clarify the role of an advisory structure, a requirement to focus on a smaller number of high impact activities, more tightly targeted marketing, and the development of further capacity to deliver outcomes including stronger working relationships with partners within the region. He also noted that this review presented an opportunity to usher in more thorough change rather than limited changes, suggesting a number of different models which might be considered.

A new model was presented to the PEDB and the Review Panel by Mike Thomas at the end of May and gained broad agreement to go to Council for their endorsement. This model is detailed in the next section and recommends the PEDB be replaced by a Parramatta Economic Development Reference Panel. This panel will more accurately reflect its role in assisting and supporting Parramatta City Council to prepare clear action plans for economic development. It further recognises that some activities should be delivered by other teams and units within Council. It also envisages the continued and strengthened involvement of partners in delivering against clear and measurable priorities and recommends the setting aside of a proportion of available funds to support this objective through the creation of an Industry Partnership Fund.

1 A New Model

Any review process can be in danger of going on and on unless there is a determined and sustained effort to focus on the final outcome. A new model is being proposed (graphic representation below) in an attempt to address some of the issues that have been raised through this review such as the need for clarity, the high turnover of board members, the need to consult highly skilled but time poor business practitioners, and a greater requirement to be more focussed on measurable achievements and outcomes.

It gives due recognition to Council in its leadership role in the future growth and governance of Parramatta whilst also acknowledging the crucial and critical role that other ‘partner’ organisations and industry itself can play.

It offers a clear structure for strategy formulation and clarifies delivery. It proposes a pattern for spending the Economic Development Special Levy in such a way as to lever much more additional resources than has ever been achieved before. It is built on accountability and transparency at all stages.

Please note that the recommendations that follow are made in recognition that the Economic Development Special Rate is constrained to the REP boundaries and they necessarily have to relate to this. It is proposed that Parramatta City Council request that the Minister for Local Government be asked to extend this to the whole LGA in due time.

The detailed recommendations are:

General

1.1  That Parramatta City Council develops a short policy statement to convey its role in Economic Development. For example:

“Economic Development is about achieving community benefit, improving quality of life, through the realisation of business and other investment that creates and retains sustainable business activity and jobs.”
Parramatta City Council’s role in this is:
- Leadership and strategic planning;
- Provision of Infrastructure and services which support economic activity;
- Information provision and marketing;
- Encouraging partnerships to lever further skills and resources;
- Regulation of business and related activities; and
- Facilitation of business development and business attraction.

1.2  That Parramatta City elected Councillors have more detailed involvement in future planning, processes and decisions, as there has been concern that this has not been the case in the past.

1.3  That the Parramatta Economic Development Board be recognised for the role it has played in economic development but that recognition also be given to the need for change.

1.4  That the Parramatta Economic Development Board be replaced with a Parramatta Economic Development Reference Panel that provides industry and business-focussed agencies with a suitable arena in which to contribute their skills to strategy, and assist Council to identify priorities.

1.5  That Council continue to take central carriage and oversight of delivery, expenditure and reporting of the Economic Development Special Levy.

1.6  That a budget detailing activities is prepared and made public together with an insert in Council’s Annual Report showing expenditure and achievements.

1.7  That the primary focus of the Economic Outcomes Team be on research and information provision, industry partnerships, funds management, reporting and project monitoring to ensure measurable outcomes with much less of a focus on events management, marketing & sponsorships.

1.8  That Council initiated business-related events and marketing activities be delivered by other Units and Teams from within Parramatta City Council in a much more targeted, effective and measurable manner. Sufficient funds should be allocated to this by Council from the Economic Development Special Levy to allow this capacity to be developed.

1.9  That business related publications be produced and distributed by Council’s Communications and Marketing Team, with appropriate Special Levy resources and input from the Economic Outcomes Team.

1.10  That Council involvement with Tourism (particularly the funding of Tourism-related publications and events) be the subject of a review in 2006/07 to examine effectiveness and value for money.

1.11  That a City Development Forum be run at least two times per annum – which is led by an executive team consisting of the Lord Mayor and the General Manager of Parramatta City Council to promote economic activity, outline achievements and facilitate feedback by the business community on issues and priorities.

1.12  That Economic Development activity and expenditure be underpinned and ‘guided’ by the Parramatta 2025 Strategy that is currently the subject of an awareness campaign across Parramatta. This outlines a series of ‘destinations’ for the next 20 years and has already been the subject of wide scale community and business consultation.

1.13  That consideration is given by Council in the September Quarterly Review for an enhanced annual budget of $700,000 for the 2006/07 and 2007/08 financial years. This opportunity has become available because of the carry over of unspent funds.

1.14  That priority areas for economic and business development be decided through consultative workshops with the Parramatta Economic Development Reference Panel (open to Councillors) every two years and that panel members are paid a small honorary fee for their time. In 2008/09 it is expected that Council will move to a four year planning and implementation schedule.

1.15  That this consultation be facilitated by an independent person (external to Parramatta City Council) but paid for and organised by Council.

1.16  That details of this consultation be developed into a two-year fully costed draft Economic Development Program to be presented to Councillors for adoption.

Parramatta Economic Development Reference Panel

1.17  That the Parramatta Economic Development Reference Panel will be an informal arrangement with no regular schedule of meetings. It will be a group largely from business and industry itself who have agreed to make themselves available (over the phone, via email or in person) for:

o  Assessing external proposals, projects, sponsorships and events to ensure a strong business case and industry support

o  Advising on industry, industry research and reports

o  Assisting the Council in lobbying State and Federal Government

1.18  That a clear Terms of Reference are drawn up to guide the selection criteria, boundaries and governance of the Parramatta Economic Development Reference Panel.

1.19  That this Parramatta Economic Development Reference Panel will be made up in the main of one or two (representing large and small companies) active industry representatives, whose main work is in that particular industry, and from each of the following industries:

o  Retail

o  Finance and Business Services

o  Legal

o  Tourism

o  Health and Biotechnology

o  Manufacturing

o  Property and Construction

o  Creative & Cultural Industries

1.20  That the Parramatta Chamber of Commerce, Business Advisory Services Incorporated, University of Western Sydney, The Premiers Department, and The Greater Western Sydney Economic Development Board be asked to nominate one person to join this Parramatta Economic Development Reference Panel.

1.21  That the Lord Mayor and General Manager of Parramatta City Council are part of this Parramatta Economic Development Reference Panel.

1.22  That from both an industry and agency perspective, there will not be more than one representative who holds any level of office or employment with any one business or agency.

Industry Partnership Fund

1.23  That an Industry Partnership Fund be created with a minimum of $200,000 per annum (approx 30%) for the 2006/07 and 2007/08 years. The success of this to be reviewed in 2008 for subsequent years.

1.24  That a public call be issued (yearly) for expressions of interest to groups who might wish to access this Industry Partnership Fund. These will include agencies, groups and individuals external to Council that have the capacity to deliver projects and programs against priorities. They may also include current and future industry focussed working groups which have Council and industry involvement.