Review of DEDJTR

Review of DEDJTR

ASubmissionbyAraratRuralCity

Thissubmission isinresponsetotheReviewofDEDJTR and addressesissuesraised in theTermsofReference.

Identify best practice,evidence-based policy directions to foster regional growth and job creation. This will include:

Identifying the major economic,social and demographic issues facing regional Victoria. This analysis should include but not be limited to:

Recentresearch confirmsthat much of non-coastalregionalAustraliaisexperiencingsignificanteconomic,physical, demographic and culturaldecline.ThisdeclineisnotonlyanAustralianphenomenon butcanbe found in other industrialised countriessuch astheUnited StatesandCanadaaswellasthroughoutEurope(Amatoand Amato 2000;Bibleand Brown1981;Forth2000;Galstonand Baeher1995; Holmes 2002). Australian Bureau of Statisticsdataprovidesclearevidence of thenature,extentand location of declinein non-metropolitan regional Australia. With declinehascometheemergence of depressed regionalcommunitiesevidencedbyhigh levels of welfaredependence,lowerthan nationaland stateaverageincomelevels, the loss of essentialservicesaswellasmorevisibleindicators of declinesuch as unsaleablehouses,closed businessesand thegenerallydecayingstate of localinfrastructure(Baum et al.1999;Bell1995; Bray2000;Hugo 2001;Lloyd et al.2000; NationalEconomics2000;NationalEconomicsand AustralianLocalGovernmentAssociation2002).

Within Australia’straditionalwool-wheatareasregionaldeclineismostevident in thesmallercentreswith a populationoflessthan 4,000,while overall,largerregionalcentres(over10,000)tend to bestable or growing(Baumetal. 1999). What is significantisthatmanydecliningsmallercountry towns arelocated in agriculturalregions,which haveexperiencedrelativeprosperity over the pastdecade.Italsoneeds to beemphasised thatmanyAustralian country townswithpopulations of 4,000or lessarenotexperiencingsignificantdecline(Baumetal.1999; Department of Infrastructure2000;Kenyon et al.2001;Stimson etal. 2001). Thosethathavestabilised or growing are,in themainlocated on theeastern seaboard or on thefringe of the majormetropolitan or regionalpopulationcentres or havehigh scenicamenability thatisattractive to new residentsseekingalternativelifestyles.Thosethat are decliningtend tobeconcentrated in the inland ruralareasand aretowns,which stillrely heavilyon localagriculturetogeneratewealth and employment.(Baum et al.1999;Bell1995; Bray 2000; Department of Infrastructure2000;Hugo 2001; Lloyd etal.2000;Stimson et al. 2001)

Industry profile – key sectors, strengths and weaknesses etc.

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Education and training participation and attainment levels

Although thereisnegativenetmigrationin allage groups of significantconcern is theloss of youthin the18 year old to 24 year old agebracket. The loss of youth andtheirsubsequent non return isgenerally as a result of moving to undertaketertiary study and although some of themoversreturn(asevidenced inthe net gainof 25to 34yearolds)therate of return isverypoor.Thistype of population driftisnot unique to AraratRuralcityandreflectstheexperience of mostregionalcitiesand areasin Australiathatdonothave a fully operationalUniversityand TAFEcampus.Outwardmigration of Araratresidentstend to move to correlateswith theloss of 18to 24year oldswith the greatestloss of residents being to theRegionalcities of Ballarat,Geelongand Bendigowhich haveactiveUniversitiesthattargetattractingstudents from RegionalAreas.Thereisalso a perceptionamongstyouththatmoving to a largeRegionalcityprovidesbettersocial,and workopportunitieswhilststillbeingclose to home.

An opportunityexiststoincreaseparticipation andcompletion rateswithin regional areas by providingtheoption of face to face trainingin a TAFEsettinglocally.HavinganoperationalTAFEcampusprovidesan aspirationalopportunityforlocalstudentsto remain engaged and undertaketraining to fillcriticalskillsshortagesin RegionalVictoria.

Inter- and intra-regional transport connectivity

Currently Ararat isservicedweekdaysby threetrain servicesto Melbourne via Ballarat,and anadditionalfivecoachservicesthatterminatein Ballarat,and can connectwith trains to Melbourne.Approximatetraveltimesfrom Araratare:

Regional Rail Linkis a landmarkinfrastructureprojectdesigned toremovemajorbottlenecksinVictoria's rail network.Itwilldothis by untanglingmetropolitanand regionaltracksasthey travelthrough Melbourne'swestinto the heart of the city. ThiswillallowtheBallarat line to run oneadditionalserviceduringpeaktimes,and torun fasterservices to Melbourne. The provision of moreservicesand decreased traveltimesopensupopportunities for residentsin Ararat tocommutetoBallaratforshopping,highereducation or employment,and toMelbourne for shopping,sport, or culturalactivities.Althoughthiscould beseen toalso threaten Ararat’seconomy,betterpublictransport links willalso encouragenewresidents to moveto Ararat and commute toBallaratorthewestern fringe of Melbourne,and attractworkersfromBallaratto Ararat to meetskillsshortages.

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Itis also essential is theneed to considerintra-regionalconnectivityparticularlywithin smallertownshipsand communitieswhich haveincreasinglyageingpopulations.Theextension of railpassengerservicestoStawell, Horsham,Hamilton andPortland would assistconnectand growtheentireregion includingpotentiallyattractingnew residentsfrom Melbourne or large regionalcentres.

ICT/broadband capacity

TheNBN isAustralia'sfirstnationalwholesale-only,open accesscommunicationsnetworkthat is beingbuilt to bringhigh speed broadband and telephoneserviceswithin thereach of allAustralianpremises.

TheNBN willutilisethemostappropriatetechnology for a given location,with the aim of improving ways for you toconnectwith one another.Theplanis for everyhome,schoolandworkplacein thecountry tohaveaccesstotheNBN.

TheNBN isexpected todeliversignificantbenefitstoregionaland ruralcommunitiesby providingfastand efficienttelecommunications.Thiswillhaveimplicationsforeducation,telecommuting,onlinehealth,entertainment,and businesssolutions.Thebreakingdown of thedigitaldividewillenhancetheattractiveness of Ararat asbeing a potentialcommunity to relocateto.

Businessesandthecommunityin AraratRuralCityaredependent on havingfastand reliablecommunicationslinkageswith theoutsideworld.

21st Centuryfarmingpracticesinvolvetheuse of sophisticatedtechnologythatoften requiresinternetconnectivity to transferlargeamounts of data.Theuse of advanced technology contributes to increasedyieldsand outputwhilstloweringcosts and increasingproductivity.

Local and exportorientated businesses are developing a greaterreliance onusing theinternetfororderplacement,sales,and marketing.Theincreaseduse of Cloud technologyenhancesopportunitiesforbusinessesin AraratRuralCitytocompeteeffectivelyin an increasinglyglobalisedmarketplace.

Thehealthand educationalsectorswillcontinue to increasetheiruse of technologytoaccessanddeliverhighly specializedservices.Technologyalso enableselderly or disabled residentsandresidents of thesmallertownshipsand ruralareas of AraratRuralcity remain connectedwith theirlocalandwidercommunitiesaswell as providinganopportunityforbusinessesto operatefrom sitesoutside of themain population centers.

Undertaking a broad, ‘first principles’ examination of what the evidence tells us about how to drive regional growth, with examination of key policy levers including: transport, infrastructure and planning; innovation and industry policy; trade and investment facilitation; education and training;and measures to foster a sound business environment such as regulation settings.

Economicperformance of regionsisnotattributable toany singlefactor.Theview of theCouncil of Australian Governments(COAG)StandingCouncil on RegionalAustraliaisthatregionalgrowth isdependentupon a range of factorsrelatedto:

•Human capital(particularly education and skills);

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•Sustainability(economic,environmentaland social)and population growth;

•Accessto markets(international,nationaland regional);

•Regionalcomparativeadvantageand businesscompetitiveness; and

•Cross-sectoralcooperation,intergovernmentalpartnershipsand integrated planning

Themajor keypropulsivesectorsin the Ararat(RC)Region havebeen identified as:

•Sheep,Grains,BeefDairy Cattle

•ElectricalEquipmentManufacturing

•PublicAdministration Regulatory Services

•Health CareServices

•MeatMeatProductManufacturing

Araratisfortunatein that it stillretains a vibrantmanufacturingsectoralthough both FederalandStateGovernmentpolicieshavecontributed todifficultiesin competingwith imported products.

TheAraratEconomic Strategy hasidentified a number of drivers to growtheeconomy over the next 15 years:

• TheWestern Highway Duplication
• Developmentof additionalpassengerrailservicesincludinghigh speed rail,
• TheNBN,
• Exportingto therapidlygrowingAsian MiddleClass,and
• Miningand RenewableEnergy

Consider current regional strategic and related planning models and the evidence regarding theeffectiveness of various models.

TheState of Victoria has implemented an approach to regionaldevelopmentorganised aroundregionalplansthataredeveloped locallyand endorsed bygovernment,businessand communityleaders(Vision forVictoriaStrategy,2010).These planshaveassisted thegrowth of crossregionallinkagesand haveclarifiedsynergiesand issuesacrossregionsbuthave also highlighted thelack of fundingavailableat a local level toimplementchange.TheCentralHighlandsRegionalGrowthPlanis one of eightregionalgrowth plansthathavebeen prepared acrossVictoria.Itprovides a broaddirection for regionallanduseand developmentas wellashigh levelplanningframeworksand the means to implement the strategicland useand infrastructuredirectionsthat are set out intheRegionalStrategicPlans.

TheCentralHighlandsGrowthPlan hasprovide a co-ordinated and longterm vision fortheregionand Araratsupportsthisregionaland cooperativeapproach tostrategicplanning.Ithasprovidedcertaintyand direction fortheregionaldevelopmentand highlighted Ararat'sroleasregionalcentreand itisessentialthatthis is supportedbystrong planning, developmentand deliveryin theregions.

Theintegration of planningand developmentat a regionallevelisessentialandhasensuredimportantprojectsliketheAraratBypassPlanningStudy,AraratWind Facility and AraratArtsPrecincthaveprogressedwith thesupportand assistanceof a regionalofficewhich understandsandsupports the importance of thetheseprojects toour regionaleconomy.

Specificfunding for key strategicand statutory planningprojectshasbeen essentialtothefuturedevelopment Ararat and has been successfullydelivered through the RuralFlyingSquad on projectsliketheGrampiansTrianglePlanningSchemeamendmentwhich hasallowed for a ruralzonereviewin a keytourismand agricultureprecincttodrivefutureinvestmentacrosstwo council areas.It is alsohoped thatsupportforthecoordination of major projectslike the AraratWind FacilityandWestern Hwyduplication could beaccessed at a local level toensureimportantinvestmentissupported and facilitated.

Confirmingkeyprioritiesforeachregionandbroadpolicydirections,possibleactions,andrecommendationsforfurtherworktodriveregionaleconomicgrowth.

AraratRuralCity endorsestheprioritiesidentified in theCentralHighland Regional GrowthPlanwithin a contextthat Regional GrowthPlansareguidelinesand not centralisedmandated planningdocuments:

1. Plan forgrowth
2. Improvetransportinfrastructureand services
3. Raisetheregion’sprofileas a touristand heritagedestination
4. Utilisetheregion’sstrength in information andcommunicationstechnology toprovidebetterservicestobusinessand communities
5. Improveaccesstohealthservicesand tacklehealth inequality
6. Providebetteraccessto education andtraining
7. Continuetofosterleadership capacity withintheregion
8. A productiveand resilientlandscape

Developingexportmarketsat a locallevelisfastbecoming a rolethatlocalgovernment is activelyparticipatingin.AraratRuralcity hasspentover20 yearsdevelopingrelationswith China to developculturaland tradeopportunitiesfor our community.Theexperience of Ararat reflectsthesuccess of developingnetworksin China where“Thedynamism oftheChineseeconomy todayisduetotherelativeautonomy of localcommunitiesin governingthemselvesand of localpartyheadsincultivatinginternationaleconomicrelations.Itis not all driven from Beijing by any means.Much of China’ssuccessisdue tothe relativelyautonomousbehaviour of provincialheads”.

Sisterrelationshipsprovide a forum within which friendly relations can develop—alongwith a greaterunderstanding of social,culturaland politicalsensitivities—and a framework for companies to pursuebusinessopportunities.As a Senateinquirycommented,“ThecommitteeconsidersthatChineseregionalismand provincialpoliticalautonomyoffersgreatopportunitiesforAustraliansub-nationalactorstoform bilateralnetworks.Sisterrelationshipsprovidesocial,political,and economic

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benefitsforboth nations.”(Senate Standing Committees on Foreign AffairsDefenceand Trade CompletedInquiries2004-07Chapter 18- Politicallinks).

TheVictorian StateGovernmentprovideslimited assistancetobusinesseswho are consideringexporting to Chinathrough theInvestVictoriaagency which hasofficesin Shanghai,Beijing,Nanjingand Chengdu.TheInvestVictoriaagency isprimarily concernedwith attractinginvestors to Victoriabutisabletoprovidesomemarket intelligence toVictorian businessesaswellasmatchinginvestors to Victorianbusinesses.Inaddition,theStateGovernmentprovidesopportunitiesforbusinesspeople to participatein tradedelegationsto majorChinesecities to gain a greaterunderstanding of marketconditionsandopportunities.To a largeextenttherole of StateGovernmentis a macroeconomicratherthan a microeconomicroleandthemicroeconomicrole is bestundertakenbylocalplayers who haveintimateknowledge of theproductsand businessesthatoperatewithin a municipality.

TheVictorian StateGovernmentin 2012releasedthe EngagingChina – StrengtheningVictoriaPlanwhich emphasisesthe importance of localgovernmentinternationalrelations:

“Internationallocalgovernmentrelationshipsare an importantaspect of China’sglobalengagementand many councilsacrossVictoriahavesistercity or friendship cityarrangementswith Chinesecounterparts. A morecoordinated approach to China engagementby theStateGovernmentandVictoriancouncilswould help maximisethebenefit to theState of theserespectiveChinarelations”(EngagingChina – StrengtheningVictoria,2012).

In a 2014report onthe Jiangsu VictoriaSisterStateRelationship,theVictorianGovernment stated:

“The establishment of internationalrelationshipsis local governments’bestmechanismtosupportbusinessaccessto overseasmarketsand sister-cityrelationshipshaveproved to beprecursorsto thedevelopment of strongereconomicpartnershipsovertime.’(VictoriaJiangsu RegionalCityAlliance,Government of Victoria,2014).

Identifytheapproachtoregionalservicedeliverybestabletodeliverregionalgrowthandjobcreation.Thiswillinclude:

IncreasinglyacrossAustraliabutto a largerextentinternationally,placebased approaches to regionaldevelopment are beingapplied and or considered by Governmentwhen addressingcomplexissuessuch as land useplanning,watermanagement,and economicdevelopment.Thisapproach devolves a greaterroletolocaland regionalinstitutionsemphasisingbottom-up,locallydesigned and owned strategiesaimed atpromotinggrowthpotentialin alllocaleconomies.Itstressestheimportance of integratingpoliciesforland-use,infrastructureand businesssupport.Itplaces a particularemphasis on ‘soft’factors of developmentsuch ashigh-level skills and innovativecapacities of firmsand publicsectororganisationsandespecially therole of inter-firmnetworksincontributingtogrowth.

Federaland State Governments areseekingto organiseeconomicdevelopmentstrategiesinpartnership with businessand communityactorsat a locallevel.Theseplace-based approachesdevolvegreaterresponsibilitytolocaland regionalinstitutionsemphasisingbottom-up,locallydesigned strategies aimed atmaximisingthegrowthpotential of localeconomies.TheState of Victoria has implemented an approach toregionaldevelopmentorganisedaround regionalplansthataredeveloped locally and endorsed by government,businessand communityleaders(Vision forVictoriaStrategy,2010).

Reviewing key functions in DEDJTR (notably Regional Development Victoria, including the domestic Victorian Government Business Office network; Agriculture Services and Biosecurity Operations; regional transport planning and investment facilitation; and the structural arrangements in place to drive tourism in regional Victoria),regional planning arrangements; and across Government (where appropriate).

Federaland State Governments areseekingto organiseeconomicdevelopmentstrategiesinpartnership with businessand communityactorsat a localleveland RDVhassuccessfullyfilled therole of a conduitbetweentheStateand localgovernment.Theseplace-based approachesdevolvegreaterresponsibilityto local and regionalinstitutionsemphasisingbottom-up,locallydesignedstrategiesaimed at maximisingthegrowth potentialoflocaleconomies.

A rolethat RDV can continue to develop isto ensurethatinputisgiven toappropriatedecisionmakersin Governmentin relation to theeffectthatpolicy can have on regionaland ruralareas.Thiscan often occur astheresult of policy changesbyanotherarea of government. A recentexamplethathasaffected AMESystems who arebased in Ararat wherechangestothebuscontractsinMelbourneto 3 yearcontractshasresultedin cheapoverseasbuses being imported intoAustraliaatthedetriment of locally madebusesthatAMEprovideswiringfor.Carefulconsiderationneeds to beundertaken in lookingatunintended collateraldamagethat a change of policy may haveorRegionalVictoria.

Having regard for the Government’s election commitments for regional service delivery (e.g. establishment of new Regional Business Centres and Regional Cities Clusters)

Currentregionalservicedelivery isvery much basedon a hub and spoke approach with thehubsbeinglargeregionalcentressuch asBallarat or Geelong. To befully effectiveand to providelocalisedservice,RegionalBusinessCentresneed to be rolledout to smallerregionalcities.Iffunded theprovision of RegionalBusinessCentrescould bedelivered by Localgovernmentutilisingexistingconnectionsand networks.

RegionalCitiesClusterscanbedeveloped using a number of approachesincluding:

• Population: e.g.RegionalCapitals,10,000to 30,000residentsetc.,
• Geographicproximity: e.g.Araratand Stawell
• Similaritiesbasedon economy orcommunity indicators:e.g.Coastalcities.

AnyRegionalCityClustermustrecognisethatCitiesoften haveloosemembership of a number of clustersandcarefulconsultation needsto occur with citiesto ensurethattheclusters are anappropriate fit forthecities.

Recommendingthemixofstructural,governance,andstrategicmodelsforregionalservicedeliverybestsuitedtopromotinglongtermprosperityinregionalVictoria

RDV isactively involved with MarketingRegionalVictoria to attractresidentsthrough theRegionalLivingExpoand Good Move Victoria.Thisroleis a valuablerolethatshould continue to be

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supported butanopportunityexists toalso toassist local governmentdevelop placemarketingstrategiestoundertakeplacemarketingthrough VisitorInformation Centresthatisnotonly tourismorientated butpopulationattractionorientated.Marketing of Regions,Cities, and Townsin Australia,toattractfinancialand human capital is mainly a function of theEconomicDevelopmentUnits of localgovernment.Accordingtosomeanalysts,therehavebeenthree“generations” of EconomicDevelopmentMarketing,beginningwith whathasbeentermed“Factory Chasing”,moving on to “TargetMarketing”,and finally“ProductDevelopment”(Kotler,Haider, and Rein,1993).

Although theterm “generation” isused,thethreegenerationsarenotnecessarilysequential or mutually exclusive. It could beargued thatmany older localgovernmentareasslip from one generationtoanother or operateconjointly in all of thegenerationsin response to thegoalsandattitudes of thecurrent council. Newerperi-urban areasand dormitorysuburbs often basetheireconomicgrowth purely on providingservicesto the expandingpopulationand donotpursuefactories or productdevelopmentstrategies,whilesomeremotelocal government areasactivelypursuefactories(Ford,2001; O'Connor,2001).

PlaceMarketingStrategies

Theexception to thedomination of marketingby EconomicDevelopmentUnits is therole of VisitorInformation Centres.Although usuallyunderthecontrol of localcouncils,VisitorInformation Centresare also involved in regional,state,and federal marketingstrategiesserving both publicandprivatesectorinterests(Holcomb,1999).AlthoughtheVisitorInformation Centresareoften thefirstcontactpoint for potentialresidents,theirorientationisalmostentirely tourism-related,and a valuableopportunitytopromote the localarea,as a potentialplace to live,islost.

Traditionallytherehas beena generaltendencyby local governmentmarketerstorely on fourmainstrategiesto market place totheirtargetmarkets(seenextpage).Thestrategiesare:ImageMarketing,AttractionsMarketing,InfrastructureMarketing,and PeopleMarketing(Kotler,Haider, and Rein,1993).Although not mutually exclusive,traditionally each of thesestrategieswasapplied to differentmarketsegments,e.g.,InfrastructureMarketingwasused to attractindustry,whileAttractionswereused toattractvisitors or newresidents.Within the lastdecade,in Australiaandoverseas,many communitiesnowusethesefourmainstrategieswithin an overallapproach of marketinglifestyle or quality of life.

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A surveyby theVictorian Employers’Chamber of Commerce and Industryfoundthatfamilyreasonsand lifestylewerethemostimportantfactorsin peopledecidingto move to regional areas(Shaw, 2001). Quality of lifeindiceshavebeen developedand used throughout the United StatesandEuropeovermany yearsto assessand rank cities,towns,and regionsin terms of theirliveability.

Citieshaveused favourablerankingsas a part of theirmarketingstrategy toattracthumanandresourcecapitalwhile lowly rankedcitieshave used therankingsto marketthemselvestogovernmentforextraassistanceand specialaid (Donald,2001;Rogerson,1999; van den BergandBraun,1999).Within the strategy of Quality of Life Marketing,somecouncilswithin Australiahavedeveloped innovativemarketingstrategiesinan attempt to increaseinwardmigration. The newapproach to marketing of place nowlinksthetraditionalmarketingstrategies of image,attraction,infrastructure,and peopletogetherto marketthecity or town as a totallifestylepackage.

RegionalDevelopmentVictoriahaveprovided much needed supportin assistingAraratRuralCityfind fundingopportunities for communityinfrastructureaswellasassistlocalindustryinmakingsubmissions for funding to assistexpansion plans and job creation.The RDV staffarededicated,hardworkingand conscientiousbut are often hindered bychangesin governmentpolicy (includingchanges of government), changing programmes,lack of humanresourcesand large geographicalareas.Often thesefactorslead totimedelayswhich can havesignificantimpact on industry who areworking toa timelineset by competitiveaction andeconomicthreats or opportunities.Thetimedelays are also exasperated bythemanylayers of bureaucracy thatanyfundingrequests must navigatethrough oftenleading to frustration for RDV staff who are dealingwith localgovernmentand industry who workto differenttimeframes,particularlyin thecase of industry.

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RDV hasan emphasis of employmentgrowth and creatingsustainableregional and ruralcommunitiesand thisreflected in the assistancethatcan beprovided to industrytoassistwithinfrastructureandcreatingexportopportunitiesbut this isreliant on Councils having EconomicDevelopmentUnits or Community DevelopmentUnitsthat are becomingharder to fund withdiminishingresourcesandstatutory obligationstobe met. Anyreview of RDVshould also considerwhetherCouncilsshould have a statutoryresponsibilityto ensurethattheyhaveappropriatestaff to supportRDVin a localcapacityand iftheydo how those positionsshould befunded.

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