City of Ballarat Economic Strategy 2010 - 2014 City of Ballarat
May 2010
This Economic Strategy has been prepared for:
City of Ballarat
In collaboration with stakeholders, this Strategy has been prepared by: SGS Economics and Planning Pty Ltd ACN 007 437 729 th
5
Floor, 171 Latrobe Street, Melbourne Victoria 3000 phone: fax:
61 3 8616 0331 61 3 8616 0332
email: sgsvic@sgsep.com.au web: www.sgsep.com.au
Table of Contents 1
Introduc tion ................................................................................................. 1
2
Ballarat: Strategic a lly Loc ated in V i c toria ........................................................ 2
3
Ballarat’s Strategic Polic y Context .................................................................. 3
4
Inf orming A c tion: A Ballarat Situat io n A nalysis ................................................ 5
5
Potential of Ballarat and E c onomic Sec tors ...................................................... 9
6
E c onomic Development and the Role of the City of Ballarat ............................. 12
7
E c onomic Vision .......................................................................................... 15
8
E c ono mic Strategy Framework ...................................................................... 16
9
Sec toral Priority A reas ................................................................................. 18
9.1
Business Services.....................................................................................................................................18
9.2
Health and Community Services .................................................................................................................20
9.3
Education ...............................................................................................................................................22
9.4
Tourism..................................................................................................................................................24
9.5
Retail .....................................................................................................................................................26
9.6
Manufacturing .........................................................................................................................................28
9.7
Information, Communications and Technology ..............................................................................................30
City of Ballarat
10
E c onomy Wide Priority A reas ........................................................................ 32
10.1 Human Capital and Workforce ....................................................................................................................32 10.2 Business Development and Innovation .........................................................................................................34
City of Ballarat
Ballarat Economic Strategy 2010 - 2014
1
Introduction
SGS Economics and Planning Pty. Ltd. (SGS)
Since that time, local economic circumstances
best fulfil its economic development functions
was commissioned by the City of Ballarat in
have changed considerably including upward
and obligations in the future. The key
October 2009 to prepare the Economic
revisions to population projections, the global
recommendation was that the City move away
Strategy 2010 – 2014. The Strategy sets out a
financial crisis, ongoing industry changes and
from a focus on ‘service delivery’ to a ‘regional
20 year vision for the Ballarat economy whilst
adjustments, new business development
leadership’ role via a whole of Council
also providing practical guidance for Council
opportunities and new infrastructure
emphasis on strategy development.
and local stakeholders for economic
investments. In light of the revisions to
development in the City of Ballarat.
Ballarat’s population projections, the City of
This Economic Strategy has been prepared in
Ballarat is looking to leverage economic
consultation with the Project Control Group
“The City of Ballarat…Economic Strategy
development opportunities to ensure that the
and an Expert Reference Group. The Strategy
(ES)…will fundamentally shape the city‟s
employment and service needs of new
has been informed by a review of the local,
development and guide growth for the next
residents can be satisfied locally.
regional and national policy context, a detailed
five years. The ES will provide a framework
socio-economic profile, an outline
that articulates Council‟s vision and objectives
To inform the Strategy, Council has
infrastructure review and stakeholder
for Ballarat‟s current and future economy, and
undertaken extensive strategic planning
consultation.
propose… a range of practical measures
relating to land use, the Ballarat CBD, the
designed to achieve the vision and objectives
Ballarat West Growth Area and strategic
This document provides the Economic Strategy
set out within the document.”
industry sectors. The City of Ballarat has also
for Ballarat. It also provides the context for
reviewed opportunities for the future with
the following detailed plans relating to
stakeholders and regional leaders.
Ballarat’s economic development:
the provision of services to the local business
Council recently commissioned a review of its
1. An Implementation Plan;
community via its Economic Development Unit
Economic Development Unit which explored
2. An Investment Attraction Plan; and
within Council. These activities have most
Council’s current approach to economic
3. A Marketing and Communications Plan
recently been generally informed by the 2006
development and set out how the City might
The City of Ballarat has a long history of involvement in economic development through
City of Ballarat Economic Development Strategy.
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
2
Ballarat: Strategically Located in Victoria Ballarat is located 115 kilometres west of Melbourne. Travel time is
Ballarat Art Gallery, the Ballarat Wildlife Park and other cultural and
around 1.25 hours by car.
heritage facilities.
Ballarat is located around 1.5 hour’s drive to Victoria’s Surf Coast.
Ballarat is a regional service and employment centre for Victoria’s western
The city is strategically located at the junction of four major highways:
region, particularly the Central Highlands. The city is base for regional
the Western Highway, Midland Highway, Glenelg Highway, and
retail, commercial and industrial employment.
Sunraysia Highway.
Ballarat contains locally and regionally significant sport and recreational
Ballarat Train Station is a hub for regional public transport to Ararat,
facilities including the Ballarat Aquatic Centre and several other major
Halls Gap, Horsham, and facilitates access to Melbourne via the
indoor sporting facilities.
Regional Fast Rail service. Wendouree West Train Station opened in 2009. Ballarat contains two major regional hospitals including Ballarat Base Hospital (Ballarat Health Services) and St John of God Health Care. Ballarat’s hospitals provide a base for rural and regional health services for Western Victoria. Ballarat contains several major tertiary education institutions including the University of Ballarat, Australian Catholic University, UBTec, the Deakin University Medical School, the University of Melbourne Rural Clinical School and in future, the Notre Dame Medical School. Ballarat has a mixture of Government and Independent primary and secondary schools. Independent Schools include Ballarat Christian College, Ballarat and Clarendon College, St Patricks College and Ballarat Grammar School with Government schools including Ballarat High School and Ballarat Secondary College. Ballarat is a centre of the Catholic Archdiocese in Victoria and has a long history as a centre for Catholic education. Ballarat contains extensive tourism assets and provides access to regional tourism opportunities in the Central Highlands and Goldfields region. Local tourism assets in Ballarat include Sovereign Hill, the Eureka Centre, Lake Wendouree, Her Majesty’s Theatre, the
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
3
Ballarat’s Strategic Policy Context
Federal Government Policy Context
The Clever Health Project, funded through the
The Park contributes around $350 million
The Grampians Regional Development
Department of Broadband, Communication and
annually to Ballarat and has delivered over
Australia (RDA) Committee will provide
the Digital Economy, will link emergency/
2,350 new jobs.
strategic input into national programs and
urgent care and maternity patients in the
The Victorian Transport Plan notes two key
will be the conduit for regional engagement
Central Highlands region through wireless and
projects to be undertaken in Ballarat
with Canberra.
video conference technology and specialist
including the duplication of the Western
Infrastructure Australia (IA) is an
equipment.
Highway between Ballarat and Stawell and
independent statutory authority which will oversee implementation of a national
an upgrade of the Mildura-Geelong Freight State Government Policy Context
Rail line.
infrastructure development program.
The Central Highlands Regional Plan will be
The HealthSMART initiative will be
Skills Australia is a statutory authority which
prepared in 2010 and will be the key State
implemented in the Grampians region
provides advice to Government on current
policy guiding strategic development in the
through Grampians Health based in Ballarat
and future skills needs.
Central Highlands. The Plan will emphasise the
and will modernise and replace healthcare
The National Broadband Network will be
role of Ballarat in the context of the Central
ICT systems to ensure Grampians Health
delivered by the Federal Government and
Highlands region.
remains consistent with other facilities in the
will service 98% of Australia’s population at
Melbourne 2030 nominates Ballarat as a Transit
State.
a rate of 12 megabits per second.
City and has attracted investment in regional
Freight Futures nominates Ballarat on the
Schools in Ballarat have received significant
fast rail and other transit city projects.
Principal Freight Network as a location for an
funding for upgrades as part of the Federal
Melbourne @ 5 million, the Melbourne 2030
intermodal terminal.
Government Economic Stimulus Package.
update, anticipates that of the 477,000 new
The City of Ballarat received funding for
people which are expected to locate in Regional
community infrastructure investments as
Victoria between 2006 and 2036, 40% will be
The Central Highlands Regional Strategy
part of the Economic Stimulus Package.
distributed to the major regional cities of
(CH21) aims to foster sustainable
The Federal Government is providing
Ballarat, Geelong and Bendigo.
development in the Central Highlands
funding to duplicate the Western Highway
Innovation: Victoria‟s Future – The Victorian
Region and support growth, investment and
between Ballarat and Stawell and the re-
Innovation Statement 2008 cites the Ballarat
improved liveability for the regional
alignment of Anthony’s Cutting.
Technology Park is one of Australia’s premier IT
community.
hubs.
The Central Highlands Region – Regional
Regional Policy Context
Priorities nominates the key priorities as:
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
o
o
o
Sustainable industry – delivering a
The growth area will be supported by
Ballarat is also a major stakeholder in
low carbon economy, building
strategically located activity centres with co-
regional tourism which includes wellbeing
renewable energy capacity through
located schools and community facilities.
tourism opportunities in Hepburn and
advisory services and other
Delacombe town centre in Ballarat West
Daylesford and the Victorian goldfields
opportunities.
proposes up to 15,000sqm of retail floorspace,
region.
Access to Water – Increased water
while Alfredton town centre would comprise
recycling, reuse, harvesting, and
6,500sqm. Smaller centres are proposed for
potable substitution.
Alfredton, Delacombe North and Sebastopol
There is significant retail and commercial
Planning for Reform – identifying
West.
floorspace demand in Ballarat to 2031,
priority growth zones, locations for
The Residential Infill Opportunities Study
estimated to be approximately (net
different industry types, and
identified 148 hectares of developable land for
additional): 28,000sqm of food, grocery and
development of peri-urban population
infill housing.
liquor commodities floorspace; 37,000sqm
Selected Development Opportunities
growth guidelines.
Ballarat ICT 2030 aims to strengthen Ballarat
for household goods; 51,000sqm for bulky
o
Regional Connectivity improvements
as a leading international information and
goods; 27,000sqm for retail services;
o
Service Planning and Delivery –
communications technology (ICT) centre.
105,000sqm of commercial, professional and
Develop a Central Highlands Health
Ballarat’s eHealth Capability Statement notes
business services floorspace; 20,000sqm for
and Wellbeing Framework
that Ballarat has extensive capabilities in health
community services; 18,000sqm of
services linked with its expertise in ICT. This
entertainment and recreation floorspace;
Local Government Policy Context
includes capabilities in the management of
15,000sqm for leisure; and 21,000sqm of
The Ballarat CBD Strategy sets the strategic
health information systems.
medical and healthcare floorspace.
direction for guiding built form outcomes in
Ballarat has major educational assets including
Ballarat has demand for between 13 and 19
the Ballarat CBD. The Strategy reinforces
the University of Ballarat, ACU, Deakin
hectares of industrial land per year over 10
Ballarat as a regional city and seeks to guide
University medical school, and will have
years. 190 hectares of zoned, developable
the development of precincts, plan for future
medical schools for the University of
and serviced industrial land should be
residential development, and set a direction
Melbourne, and the Notre Dame Medical School
available at any one time with land adjacent
for streetscape upgrades and the
at St John of God Health Care.
to Ballarat Aerodrome providing a short term
redevelopment of strategic sites.
Blueprint Ballarat aims to make Ballarat’s
opportunity. 30% of future industrial land
Ballarat West has been designated as the
manufacturing base world class in areas of
demand should be allocated to smaller scale
future growth area in Ballarat and is
elaborately transformed manufactures.
industrial activities.
expected to accommodate around 30,000 –
Ballarat has a strong tourism offer comprising
A feasibility study found that the Airport
40,000 people and at least 14,000
built attractions, local events and cultural
Precinct Site would be favourable for a new
dwellings.
tourism.
Freight Hub.
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
4
Informing Action: A Ballarat Situation Analysis
Context
59%, an increase from 56% in 1996. The
(15.5%), Manufacturing (14.9%), and
Ballarat is recognised as the capital of the
Victorian State average over the 10 years has
Education (9.9%). This is noted in the Growth
west. This has been recognised in this
been stable at 61%.
Share Matrix overleaf.
Strategy in the vision and overview sections
The Ballarat unemployment rate in December
Employment projections suggest that (on
for each sectoral priority area and economy-
2008 was 8.0% according to the Small Area
current trajectories) Ballarat has the potential
wide priority areas.
Labour Market Publication. The Victorian
increase its job stock by about 20,200 jobs in
The City of Ballarat had an estimated resident
unemployment rate was 4.4% at the same
the period between 2006 and 2026.
population of 91,787 as of June 2008. Since
time.
Strategic export sectors in the local economy
1996, the population has increased by 15,278
In 2006, Ballarat had a high proportion of
are Health and Community Services,
at 1.4% p.a.
workers with a Certificate level qualification
Education, Retail Trade, Communication
Victoria in Future 2008 Population Projections
(34.3% compared with Victoria’s 29.2%),
Services (ICT), Cultural and Recreation
suggest that Ballarat’s population will reach
followed by Bachelor Degrees (20.1% cw.
Services (which is a part of Tourism),
118,752 by 2026.
24.1%) and Advanced Diplomas and
Manufacturing, Accommodation, Cafes and
The number of households in Ballarat
Diplomas (12.8% cw. 13.8%).
Restaurants (which is a part of Tourism) and
increased from 27,952 in 1996 to 31,956 in
The share of Post-Graduate Degrees in
Government Administration.
2006 (+14.3%).
Ballarat in 2006 was 3.6% compared with the
Within Manufacturing, Ballarat’s has a high
The median weekly household income in
Victorian average of 5.2%. The share of Post-
representation of jobs in Motor Vehicle and
Ballarat in 2006 was $838. This was an 18%
Graduate qualifications in Ballarat has
Part Manufacturing (19% compared with
increase on 1996 ($512). Over the same
increased from 2.3% in 1996.
Victoria’s 12%), Fruit and Vegetable
period, Victoria saw a 20% increase in
Economy
Processing (12% cw. 2%) and Other Food
median weekly household income from $628
The City of Ballarat had 37,974 jobs in 2006
Manufacturing (11% cw. 4%) (2006 data).
in 1996 to $1,021 in 2006.
according to REMPLAN / Census data. The
Strategic Manufacturing sub-sectors which
Ballarat had an employment self-sufficiency
actual local employment figure in 2006 is
saw employment growth between 2001 and
rate of 102% indicating that Ballarat had a
estimated to be 42,748 by SGS when Census
2006 in Ballarat were Fruit and Vegetable
marginally greater number of jobs compared
undercounting and errors are addressed.
Processing (+9% p.a.), Machinery and
to resident workers. This indicates a regional
Ballarat’s strength is in the diversity of its
Equipment Manufacturing (+8% p.a.), and
employment role.
economy, although the top four sectors of
various sub-sectors relating to the local
Labour Force
employment in Ballarat are Retail Trade
construction industry including Pre-Fabricated
The labour force participation rate in 2006 was
(18.1%), Health and Community Services
Building Manufacturing (+19% p.a.),
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
Structural Metal Product Manufacturing
(as indicated by Accommodation, Cafes and
Wholesale Trade).
(+12% p.a.).
Restaurants and Cultural and Recreational
Transforming Stage: Upper left quadrant
Manufacturing is a strategic sector and is
Services).
(lower average annual growth/above average
restructuring by shedding jobs but is expected
Emerging Stage: Lower right quadrant (high
concentration).
to continue to grow in output.
average annual growth/lower concentration).
Seed or Transitioning Stage: Lower left
Imports into Ballarat in 2008 were $1.9
This comprises business services (such as
quadrant (lower average annual growth/lower
billion with manufacturing sales to Ballarat
Property and Business Services and Finance
concentration). Primary industries are not
totalling $757 million, Property and Business
and Insurance) and logistics (such as
highly concentrated within Ballarat but are
Services ($257 million) and Transport and
Transport and Storage and
critical in a wider regional context, supporting
Storage ($160.9 million).
Property and
many secondary and tertiary activities within
Business Services being imported are legal, accounting, marketing & business
Figure 1: Industry Growth Share Matrix, Ballarat (2001-06)
management services. Industry Growth and Specialisation The industry growth share matrix is divided into quadrants with each quadrant defining the stage of lifecycle for industry sectors. Definitions are as follows: Location Quotient: The share of jobs by industry in Ballarat relative to the share of jobs in Victoria. Annual Average Job Growth: Growth in employment share between 2001 and 2006 by industry in Ballarat Dot size: Total jobs in absolute terms. Expanding Stage: Top right quadrant (high average annual growth/high specialisation).
This
comprises local and regional population-driven sectors, such as Health, Education, Retail and Government sectors. Tourism is reasonably strong
City of Ballarat
P. 6
the City.
Ballarat Economic Strategy 2010 - 2014
Ballarat Sample Catchment Characteristics Destination of Ballarat Resident Workers
Source: Australian Bureau of Statistics 2006; SGS Economics and Planning
City of Ballarat
Origin of Workers Occupying Ballarat Jobs
Source: Australian Bureau of Statistics 2006; SGS Economics and Planning
P. 7
Ballarat Economic Strategy 2010 - 2014
Ballarat Retail Catchment
Use of Hospital Services – Ballarat Health Services
Source: Ballarat Commercial Development Strategy – Issues and Directions Paper; 2009, p. 61
City of Ballarat
Source: Ballarat Health Services, SGS Economics and Planning
P. 8
Ballarat Economic Strategy 2010 - 2014
5
Potential of Ballarat and Economic Sectors
Economic Development Defined
Projected Industry Sector Performance Method
In broad terms, „economic development‟ can be defined as increasing an
SGS has prepared employment, output and value added estimates and
area’s level of income and capital (wealth) and distributing that wealth
projections by industry sector for Regional Victoria and Ballarat to 2026.
(through local expenditure and jobs) to the community.
This notion
applies equally to geographic areas of any size, whether it is a nation,
The
projections factor in
the
anticipated
effects of economic and
State, region or Local Government Area.
population growth and compositional change and take into account the anticipated impacts of climate change.
Means of Measuring Industry Performance The three ways used in this Strategy of measuring industry performance
SGS uses a top-down approach whereby forecasts were made of Gross
are employment size, total output and total value added. Each is defined
Value Added (GVA) for each industry and likely labour productivity in each
below:
industry at the Victorian state level. These forecasts were then used to make projections of total employment for non-metropolitan Victoria. These
Employment:
Number of jobs by industry sector.
projections
were
then
distributed
to
local
government
areas
by
extrapolating the observed shares and trends by industry. Output:
Total dollar value of production within the Ballarat economy by industry sector.
The results present an estimate of the possible future trajectory of the local economy in a State context, based on the best available information
Value Added:
Total dollar value of production within Ballarat less
at the time of analysis.
The purpose of the estimates is to present a
value of inputs into production including wages,
context for understanding possible futures rather than being a fixed
profits, rents and expenses.
projection of what will happen. The economic strategy could be geared to confirm these trends or set in place strategies and actions to chart a new course, if desired. Overall, Ballarat is estimated to have potential to grow its job stock by about 20,200 between 2006 and 2026, at a rate of 2.0% per annum, compared to Victoria’s 1.5% per annum. This is based on the strength of the wider region and the role of Ballarat as a regional capital.
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
Industry Sector Potential, Ballarat (Employment) and Victoria (Employment and Value Added) Ballarat Jobs
Victoria
2006
2026
2006–26 #
2006- 26 %pa
Jobs 2006- 26 %pa
Value Added 2006- 26 %pa
Agriculture, Forestry and Fishing
445
95
-350
-7.4%
-0.7%
1.5%
Mining
279
560
281
3.5%
1.3%
2.2%
6,253
6,166
-87
-0.1%
-0.2%
0.7%
432
535
103
1.1%
0.0%
1.3%
Construction
3,235
5,965
2,730
3.1%
2.2%
2.8%
Wholesale Trade
1,421
1,306
-115
-0.4%
0.2%
1.3%
Retail Trade
5,831
8,992
3,161
2.2%
1.4%
3.1%
Accommodation, Cafes and Restaurants
2,698
3,822
1,123
1.8%
1.0%
3.1%
Transport and Storage
1,494
2,472
978
2.5%
1.6%
1.9%
Communication Services
1,346
2,453
1,107
3.0%
1.2%
3.4%
Finance and Insurance
1,174
1,282
108
0.4%
0.8%
2.0%
Property and Business Services
2,910
4,534
1,623
2.2%
2.0%
2.3%
Government Administration and Defence
2,458
3,440
982
1.7%
1.2%
1.5%
Education
4,121
5,945
1,824
1.8%
1.9%
2.3%
Health and Community Services
6,203
10,941
4,738
2.9%
3.0%
3.2%
Cultural and Recreational Services
1,047
2,123
1,075
3.6%
1.7%
2.0%
Personal and Other Services
1,399
2,322
923
2.6%
1.4%
1.7%
42,748
62,951
20,203
2.0%
1.5%
2.1%
Industry
Manufacturing Electricity, Gas and Water Supply
Total All Industries Source: SGS
Note: Total percentage jobs growth over the next 20 years is approximately 68%
City of Ballarat
P. 10
Ballarat Economic Strategy 2010 - 2014 Business Services: This comprises both Property and Business Services
film industry.
and Finance and Insurance. These industries are on a growth trajectory
oriented industry sectors between 2006 and 2026 on current trajectories
About 2,200 additional jobs are expected in tourism
and are high value. Business Services in Ballarat are mainly geared to
(i.e. Accommodation, Cafes and Restaurants and Cultural and Recreational
serving the regional population and the local sector has capacity to replace
Services).
imports and boost exports through advanced business services (e.g. marketing, legal, business management, and brokerage). On current
Retail: Strong population growth in Ballarat and the wider region is
trajectories, Property and Business Services is expected to grow by about
expected to support jobs growth in retail to 2026. A key challenge for
1,600 jobs to 2026 (+2.2% p.a.) with marginal growth in Finance and
Ballarat will be to enhance the range and depth of the retail sector through
Insurance in the context of strong state-wide growth in these sectors.
growing ‘boutique’ retail facilities such as independent local produce retailing, health and wellbeing opportunities, and high end branded
Health and Community Services: Ballarat has several major health
fashion. Jobs growth in retail is expected to be around 3,200 jobs (+2.2%
institution and small business assets. Ballarat is also a hub for regional
p.a.) between 2006 and 2026 on current trajectories.
services into the Central Highlands. This industry adds value through the use of technology in remote health care and imaging, and is closely linked
Manufacturing: This industry accounts for the greatest share of output of
with the education sector through medical and clinical schools. On current
all industries in Ballarat. It will be critical that Ballarat’s manufacturing
trajectories, this sector is expected to consolidate its position as a strategic
industry transitions to high tech and knowledge based production
export sector for Ballarat with jobs expected to increase by about 4,700
processes to support ongoing growth and innovation.
(+2.9% p.a.) between 2006 and 2026.
indicate a marginal decline in manufacturing employment between 2006
The projections
and 2026 driven by structural change and globalisation. Future growth is Education: Ballarat has a rich base of educational assets from primary to
expected to be generated by new technologies and sustainable
tertiary levels, including an independent university. Ongoing growth and
technologies linked to ‘green jobs.’
development of Ballarat’s educational infrastructure will see this industry consolidate as a major export driver for Ballarat. Strong migration and
Information, Communications and Technology: This is a strong and
ongoing changes in regional industry skills needs into the future could see
evolving industry in Ballarat and is in a growth phase. Key assets such as
the sector diversify. On current trajectories, growth of about 1,800 jobs
the University and Technology Park with anchor tenants and industry and
(+1.8% p.a.) is expected to 2026.
educational links make this industry well placed to grow over the next two decades. Jobs growth in the Communications sector is expected to be
Tourism: Ballarat makes a substantial contribution to regional tourism
around 1,100 jobs between 2006 and 2026.
through built attractions (e.g. Sovereign Hill, Eureka Centre), major events, and built heritage. Ballarat is also a gateway to tourism
Other Sectors: Strong growth is also expected in other sectors as the
opportunities in the Central Highlands. Ballarat is consolidating its
economy and population base grows and changes in composition. This
capabilities as a centre for regional sport, the arts, major events, and the
includes government, construction, personal service and logistics sectors.
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
6
Economic Development and the Role of the City of Ballarat
This section presents an overview of local government’s role in economic
spheres of government for attention to problems outside Council’s
development. This information should be used to better understand what
responsibility, providing information on changes to regulations).
Council can and cannot do in pursuit of economic strategy objectives, acknowledging that is has jurisdictional and funding limitations.
These
In undertaking these activities, Council is directly influencing the way in
limitations must be understood when moving from the strategy vision and
which the local economy (and its surrounding region) develops.
objectives to the implementation plan. Addressing the Preconditions for Investment Local Government as an Existing Leader in Economic Development Facilitation
Council clearly has a valid and important part to play in promoting and facilitating local economic development.
However, Council must work
The City of Ballarat, like any local government authority, has a charter to
within its jurisdiction and resource limitations to support sustainable
serve its local community. This includes nurturing a spirit that will help its
growth.
businesses and residents adjust to economic change and to identify and
the implementation plan that sits under an overarching economic strategy.
Economic development activities and priorities are expressed in
capitalise on opportunities for economic growth and development as they arise.
Council is not the main ‘driver’ of local economic development. This is the role of business and industry. Experience shows that councils can play an
The existing role of Council in economic development includes:
effective role in influencing what are termed the ‘pre-conditions for a
Managing the early stages of project development through its role in
competitive environment’. As shown overleaf, these include the topics:
development approvals (e.g. planning, building, engineering);
Efficient and effective infrastructure;
Investing in the provision of development infrastructure that facilitates
An appropriately skilled workforce;
business and community activity and sustains environmental quality
Supportive governance structures; and
(e.g. roads, drains, community facilities and parks and gardens);
Strong links between research and learning institutions and business
Delivering community services that support economic activity and
to encourage industry innovation.
promote the health and well-being of the local population (e.g. child care, recreation and cultural services, aged care services);
Strategic infrastructure is a critical economic foundation input. Traditional
Being (in many cases) the first point of contact for local businesses
(hard) infrastructure, while critical for local and regional economic
and the community in relation to day-to-day concerns that affect the
prosperity, is not on its own sufficient. Globalisation and structural change
immediate environment for business production and quality of life
have shifted the drivers of regional competitiveness to areas that have
(e.g. local land use conflicts and their resolution, lobbying other
both high quality ‘old economy’ infrastructure and ‘new economy smart
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014 infrastructure’. The latter is those elements that support and encourage creativity and the diffusion of ideas in the local economy.
Supporting a conducive business (and people) environment; for example:
This includes
Amending the Planning Scheme to reflect economic strategy
skills, culture, good governance, social cohesion and quality of life.
objectives; Undertaking specific infrastructure and / or development projects; Providing business information and advisory services; and
Conceptual Model of Local Economic Prosperity
Managing a co-ordinated approach to regional economic development (e.g. regional partnerships). Facilitating business investment from local and external sources; for example: Establishing and facilitating business networks and clusters; Undertaking labour market initiatives; Business incubation initiatives; Import replacement initiatives; Export market development initiatives; and Marketing, promotion and public relations activities. The nature of the specific activities of Council will depend on the economic strategy and its priorities, and the capacity of Council to commit resources to tasks, which are reflected in the implementation plan. On this basis, it is important to understand that: The economic strategy sets the vision for a desired future economy. The strategy is therefore aspirational. The implementation plan of the strategy identifies the reality of what Council can and cannot do, based on its jurisdictional and funding
Prioritising Council Activities and Resources
limitations. By necessity, the implementation plan identifies projects and activities to influence other organisations, the private sector and
The City of Ballarat could have an effective impact in economic
other spheres of government to deploy resources in a way that is
development by developing actions from the following topics.
City of Ballarat
consistent with the economic vision for the municipality.
P. 13
Ballarat Economic Strategy 2010 - 2014 Summary of Strategy Outputs The next section of this document identifies the economic strategy for Ballarat. This is expressed in a vision statement and economic framework. The framework expands on and details the strategy’s aspirations. The strategy is based on four research and analysis phases that were undertaken prior to this document’s preparation. The information of the four phases is documented in separate working documents.
Attached to this strategy document are a further
three documents, which provide more focused implementation and action-oriented plans that are designed to give effect to this strategy.
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Ballarat Economic Strategy 2010 - 2014
7
Economic Vision
The Ballarat Economic Strategy 2010 – 2014 has been structured around a long term (20 year) vision which has three themes. The themes capture the essence of Ballarat’s desired economic future. Theme 1: Regional Development –
The Capital of Western Victoria Ballarat will consolidate its position as the capital of Western Victoria over the next 20 years. The communities of Western Victoria will look to Ballarat to meet their higher order retail, service, business, institutional, entertainment, recreation and cultural needs. Ballarat will achieve this status by building on its existing regional role to provide enhanced services and facilities, including enhanced government services and facilities and infrastructure linkages. Theme 2: Economic Growth and Diversification –
Australia’s Premier High Tech & Knowledge Based Regional Economy Ballarat will build on its unique strengths to become the premier high tech and knowledge based regional economy in Australia. The City’s diversified knowledge based economy – defined by higher education, health services, research, manufacturing, information technology and business services - will grow, integrate and evolve to generate significant new investment and jobs including a large number of highly skilled jobs. Workers from around Australia will look to relocate to Ballarat to access its high quality job and lifestyle opportunities. Theme 3: Capitalising on Population Growth -
A Bigger and More Diverse Community Ballarat will accommodate a much larger and more diverse population as the local economy grows and diversifies and the City’s status as regional capital and nationally significant knowledge based economy reaches new levels. In-migration of people will accelerate as the City embraces and facilitates growth by providing appropriate housing, retailing and other services in partnership with other spheres of government and the business community.
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Ballarat Economic Strategy 2010 - 2014
8
Economic Strategy Framework
Vision This strategy is structured around the long term (20 year) vision as noted above. The thrust of the vision’s three themes is applied to various elements as follows.
S ecto r al P r i o r i ty A r eas The research and consultation that was undertaken as part of this document’s preparation identified seven ‘industry sector’ priority areas for Ballarat: business services, health and community services, education, tourism, retail, manufacturing and ICT (information, communications and technology). On this basis, various details of the strategy are expressed on an industry sector basis.
E co n o my W id e Pr i o r i ty A r eas In addition to the above sectors, two economy wide themes were identified as being critical to Ballarat’s economic future: human capital and workforce; and business development and innovation. These topics cut across all industry sectors and are considered fundamental ‘pre-conditions’ for investment and economic development.
S tr ateg y D etai ls The details of the strategy’s nine elements - seven sectors and two economy wide topics – are presented in the remainder of this document. Each of the nine elements is explained in the following format: Overview; Context; Issues / Challenges; Goals; and Implementation Actions. It should be noted that the Implementation Actions are noted in summary form only in this document. The details of the actions are presented in the separate Implementation Plan document. This is because this document provides the overarching vision, framework and direction and as such this document is intended to be used and understood by a wider range of stakeholders. The more detailed aspects of this strategy’s mechanics and implementation are presented in separate documents.
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Ballarat Economic Strategy 2010 - 2014 The framework for the Ballarat Economic Strategy 2010 – 2014 is as follows:
City of Ballarat
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Ballarat Economic Strategy 2010 - 2014
9
Sectoral Priority Areas
9.1
Business Services
Overview:
The Ballarat CBD is the main focus for service based employment
The business services sector is a strategic growth sector in Ballarat and will
although other precincts such as the Technology Park also contribute to
be critical to fulfilling Ballarat’s vision as the capital of Western Victoria and as
Ballarat’s business services offer.
a nationally significant knowledge based economy. Advanced business services are export-oriented and are critical inputs into local production
Issues/Challenge:
processes, particularly in the commercialisation of new knowledge and ideas
Ballarat is regionally significant in its Business Services offer but has
and growing and diversifying the economy. There is also the potential to
significant scope to replace imports in this sector and grow and diversify
attract government services to Ballarat through relocations to meet future
the sector.
service delivery requirements.
Components of advanced business services that could potentially be
Context:
targeted are legal, accounting, marketing and business management
Business Services is defined as the ANZSIC categories of Property &
services.
Business Services and Finance & Insurance.
Opportunities could be explored to develop businesses locally, up-scaling home based businesses into local offices, and attracting new firms or
Jobs (2006)
Total Output (2008)
Value-Added (2008)
branch offices of Melbourne based firms
3,854 (10.1%)
$1.35 billion (13%)
$688.7 million (16.3%)
Ballarat wage rates face competitive pressures from the capital cities. Ensuring a reliable supply of skilled workers is an ongoing challenge.
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
There is a reluctance to use local business services in some circumstances due to concerns over confidentiality issues.
The Ballarat economy imported a total of $257.1 million in Property and Business Services from domestic sources outside
Goals:
Ballarat. These were mainly in the
Grow the Business Services sector and Ballarat’s regional role and reduce
advanced business services categories of
reliance on imports.
legal, accounting, marketing and
Establish Ballarat a preferred location for skilled workers.
business management services.
Increase Ballarat’s attractiveness to new firms and investment.
Property & Business Services mainly supply to Manufacturing
Maximise the role of business services (particularly advanced business
($99.4million input in 2008) followed by Retail Trade ($40.4 million).
services) in supporting innovation across all industry sectors.
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Ballarat Economic Strategy 2010 - 2014 Implementation Actions: Action 1: Undertake an audit of Ballarat’s business services offer to ensure a better understanding of industry capability, improve retention of escape expenditure and facilitate the enhancement of existing businesses Action 2: Develop a strategy to fill gaps in the business services offer in Ballarat. Action 3: Implement investment attraction initiatives targeting capital city based firms and State and Federal Government departments and agencies which could relocate to or establish offices and / or branch offices in Ballarat to serve local and regional needs. Action 4: Explore opportunities to develop an Advanced Business Services Cluster with a focus on export market opportunities and assisting industry development.
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Ballarat Economic Strategy 2010 - 2014
9.2
Health and Community Services
Overview:
Issues/Challenge:
Ballarat is the service provision centre for Western Victoria in health services.
The health and community services sector is a significant sector and is a
Ballarat is host to major public and private hospitals, aged care facilities,
focus for growth, in part based on strong regional demand for services.
health and community services, disability services, regional clinical schools
Future institutional development could be constrained by limited land
and supporting institutions and organisations.
availability and physical infrastructure constraints. Skills shortages constrain industry development (for example in general
Ballarat’s health and community services contribute extensively to the local
and specialist nursing and medical specialists in orthopaedics, obstetrics
economy through employment, local purchasing, regional service provision
and gynaecology, oncologists, rehabilitation and general practitice).
and via research and development partnerships with industry.
Building links across the local business community to support local
These
institutions and services are expected to play a critical role in investment and
innovation is a challenge and opportunity.
skills attraction and development.
Some smaller regional health services have contracted meaning that ceantrlised services are taking more clients.
Context:
Capacity issues have been identified at the Ballarat Austin Radiology
Ballarat’s health and community services sector is the second highest
Oncology Centre.
employing industry in the City behind Retail Trade. Goals: Jobs (2006)
Total Output (2008)
Value-Added (2008)
Consolidate health and community services as a strategic service sector
5,829 (15.4%)
$636.9 million (6.1%)
$494.4 million (11.8%)
for Ballarat, the Grampians Region and Western Victoria. Meet growing demands generated by population growth, service
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
expansion and diminution in some regional health services. The share of employment in health and community services in Ballarat is
Grow Ballarat as a preferred location for medical, nursing and allied health
significantly higher than in Victoria as a whole (10.9%).
clinicians and clinical placements for medical students.
Ballarat plays a regional role in health and community service provision.
Build institutional and health industry engagement with the university
Ballarat Health Services (public hospital) and St John of God Health Care
sector and industry.
(private hospital) are located within the City, both serve regional
Continually improve health promotion, illness prevention, service
catchments and are leaders in research and development in areas of
development, including ambulatory care and improved co-ordination of
psychiatry, nursing, eHealth, and general medical.
care.
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Ballarat Economic Strategy 2010 - 2014 Implementation Actions: Action 1: Explore the feasibility of establishing a Ballarat Health Cluster to grow and assist industry development comprising all major stakeholders in Ballarat including the Ballarat Health Services, St. John of God Hospital Ballarat, and other key health and community services, clinical schools, University of Ballarat, Australian Catholic University and private industry. Action 2: Leverage major regional health assets to promote and build Ballarat’s reputation as a leader in regional health innovation and service delivery. Action 3: Prepare a Health Industry Plan which examines the current service and facilities on offer and which explores industry develop ment opportunities particularly in research and development and allied health. Action 4: Facilitate through the Central Highlands Regional Strategic Plan a regional demand and supply study for health services also identifying community based services, health promotion and illness prevention strategies as well as seeking to identify new investment and service opportunities for Ballarat.
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Ballarat Economic Strategy 2010 - 2014
9.3
Education
Overview: Ballarat is a world leader in education provision and contains major
Ballarat is well served by UBTAFE and private providers of Vocational
institutions including the University of Ballarat, Australian Catholic University,
Education & Training, addressing the skills needs of industry
clinical schools, UBTec, and numerous high quality public and private
A substantial adult and community education sector provides for
schools.
educational reengagement which leads through pathways to Vocational Training.
Ballarat’s educational institutions are well placed to contribute to the local economy through building local workforce skills, delivering regional services and developing partnerships with industry.
Issues/Challenge:
These institutions can play a
Education is significant in terms of employment and local infrastructure
major role in enhancing liveability, building innovation capacity, supporting
and is a focus area of growth associated with high local and regional
investment attraction and reinforcing Ballarat as the capital of Western
population growth.
Victoria and as Australia’s premier knowledge based regional economy.
Future institutional development could be constrained by limited land availability and physical infrastructure constraints.
Context:
Maintaining links with education providers and the local business
Education is a significant employer in and export sector for Ballarat.
community as a means of facilitating innovation and ensuring an appropriately trained and qualified workforce is a challenge and
Jobs (2006)
Total Output (2008)
Value-Added (2008)
3,719 (9.8%)
$436.7 million (4.2%)
$330 million (7.8%)
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
opportunity. Goals: Consolidate education as a strategic export sector in Ballarat.
The share of employment in education is higher in Ballarat than in
Use education as an enabler of an innovative community and economy.
Victoria overall (7.7%).
Grow Ballarat as a location for international and intra-regional students.
Four universities have a presence in Ballarat - the University of Ballarat,
Build institutional and education industry engagement with industry to
Australian Catholic University (Aquinas), and rural clinical schools from
build research and development capability.
Deakin University and the University of Melbourne. The Notre Dame
Develop a culture of lifelong learning
Medical School will also be developed in Ballarat.
Improve the rate of retention of students post-qualification and the
The University of Ballarat is the base for the Institute for Regional and
capacity to attract previous residents back to Ballarat.
Rural Research and Innovation, UBTec and the University of Ballarat Technology Park.
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Ballarat Economic Strategy 2010 - 2014 Implementation Actions: Action 1: Leverage major regional education assets to promote and build Ballarat’s reputation as a leader in research and development and regional education service delivery. Action 2: Undertake a Ballarat demand and supply study and capability audit for education and identify new investment and service opportunities for Ballarat. Action 3: Advocate for career pathway communications programs targeting secondary school students throughout Ballarat and the region. Action 4: Work with major community and education institutions to enhance student retention in Ballarat, attracting new students to Ballarat and improving return rates of previous Ballarat residents.
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Ballarat Economic Strategy 2010 - 2014
9.4
Tourism
Overview:
Ballarat’s sports precincts are a catalyst for sports tourism and event
Tourism is a key component of Ballarat’s economy and contributes to
growth.
economic growth and diversity. Ballarat can leverage tourism as a basis for
Educational Tourism is a key growth area for Ballarat.
consolidating its position as the capital of Western Victoria through a
Ballarat is considered as a safe destination.
combination of built attractions, its arts, culture, heritage, education, sports,
Ballarat has a developing film industry that can be expanded and
festivals, events and conferences by further integrating with its surrounding
integrated within the tourism offer.
regions. Access to Melbourne airport is also a major competitive advantage.
Ballarat has a rich history and is a strong heritage destination.
Ballarat’s tourism industry will seek to be economically, environmentally and
Issues/Challenge:
socially sustainable, a significant driver of economic growth and a creator of
If Ballarat’s tourism industry is to continue to grow and develop it will need
individual wealth and prosperity.
to: Showcase Ballarat as a leading, vibrant and innovative tourism
Context:
destination;
Tourism (as defined by REMPLAN) comprises elements of retail,
Delight visitors with enriching, enjoyable and exciting visitor experiences
accommodation, cafes and restaurants and other sectors.
that are distinctly Ballarat; Generate business growth and profitability, create jobs and stimulate the
Jobs (2006)
Total Output (2008)
Value-Added (2008)
growth of the Ballarat economy;
2,027 (5.5%)
$409.3 million (3.93%)
$167.7 million (3.9%)
Enrich the lifestyle of the Ballarat community and its visitors; Celebrate and protect Ballarat culture, heritage and natural environment;
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
and Champion an industry wide culture of partnership and mutual respect.
Destination Ballarat is dedicated to marketing the Ballarat tourism product and growing visitation to Ballarat and assisting local businesses capitalise on these opportunities.
To grow visitor numbers and visitor spend it is essential to look to the factors
Sovereign Hill is the visitor magnet of Ballarat and attracts more than
that are likely to impact future supply and demand in tourism, such as:
500,000 visitors annually. It is estimated that Sovereign Hill attracts
Importance of tourism and how businesses and the community can
around 475,000 day visitors and 89,000 night visitors per year.
maximise benefits;
Other key tourism assets include, the Lake Wendouree Precinct including
Changing demographics and family structures impacting on travel value
the POW memorial, Ballarat Wild Life Park, Art Gallery of Ballarat, Eureka
choices, needs and interests and a trend towards shorter, more frequent
centre and Her Majesty’s Theatre.
holidays;
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Ballarat Economic Strategy 2010 - 2014 Lack of investment in new accommodation, product, services and niche
Implementation Actions:
experiences; Rising expectations in service standards, quality and workforce skills;
Action 1: Continue to refine and implement the Tourism Strategy – Towards
A need for investment in infrastructure to meet the needs of a growing
2020
population and tourism industry; New markets in higher yielding conventions, conferences and events;
Action 2: Undertake a tourism infrastructure and capability audit, and
The need for improved coordination in promotion of Ballarat’s diverse
identify product and service gaps.
product and brand; The need to capitalise on recognised attractions such as Sovereign Hill,
Action 3: Build a strong industry body independent of Council, with
Gold Museum and Blood on the Southern Cross, and the Eureka Centre;
responsibility for the management of all industry initiatives, to unify and grow
Continue to target new markets in particular India, China and New
the maturity of the industry and create quality, consistency, professionalism,
Zealand and increase the use of technology; and
innovation and influence.
Ensure tourism is a competitive sector of the labour market, attracting, training, retaining employees by addressing perceptions of limited career path options Goals: Grow and diversify the tourism offer of Ballarat integrated with regional activities. Improve the conversion of day trip visitation into overnight visitation. Improve diversity of visitor accommodation options. Promote industry leaders to drive the development of tourism. Leverage partnerships to improve marketing of the Ballarat brand and offer to target audiences. Improve workforce skills and career pathways in the tourism industry.
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Ballarat Economic Strategy 2010 - 2014
9.5
Retail
Overview: Ballarat is the primary centre for higher order retail provision in Western
Stockland Wendouree, Sebesatapol North and Howitt Street shopping
Victoria. Ballarat will build on its retail offer to provide a complete capital city
centres in addition to other local centres.
experience including a full suite of retail services and experiences with a unique national brand.
Issues/Challenge: A lack of high end retail and luxury retailers within Ballarat, leading to
The retail sector will be diversified to minimise escape expenditure and to
local expenditure being spent elsewhere including in Melbourne.
ensure better access to retail opportunities for the regional community. This
Centrally located retail land supply is restricted, and future retail
will be achieved through developing a recognised activity centre hierarchy that
floorspace maybe redirected to Ballarat’s growth area.
will consolidate Ballarat’s position as the capital of Western Victoria.
Attracting higher end retailers is dependent on a number of factors
Retail objectives will also be implemented through the ‘Making Ballarat Central‟
including the size and socio-economic profile of the catchment and the
CBD Strategy.
retail environment.
Context:
Goals:
Ballarat’s retail sector is a regionally significant and growing industry. It is
Boost diversity in retail quality and supply, with a focus on growth in
the biggest sector in the City by share of employment.
higher-end retail brands and the development of niche markets in the CBD.
Jobs (2006)
Total Output (2008)
Value-Added (2008)
Deliver neighbourhood level retail supply in the growth area.
6,833 (18.1%)
$785.8 million (7.5%)
$396.9 million (9.4%)
Establish retail environments (existing and future) which attract diverse retailers and promote retail diversity in Ballarat.
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
The share of employment in retail trade in Ballarat is higher than Victoria, resulting in Ballarat’s high rate of self-sufficiency (106.3%). The sector imported $63.3 million of supplies in 2008. Ballarat contains 301,770sqm of retail (shopfront) floor space including 137,280sqm within the Ballarat CBD. By 2031, it is projected that this total may increase by around 50% to meet future demand. Ballarat’s current supply of retail floorspace includes the Ballarat CBD,
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Ballarat Economic Strategy 2010 - 2014 Implementation Actions: Action 1: Develop a Retail Attraction Strategy which explores retail brand supply and opportunities, explores traffic generation rates, and provides analysis of strategic sites within Ballarat CBD, Stockland Wendouree and other activity centres. Action 2: Implement ‘Making Ballarat Centralâ€&#x; CBD Strategy as the basis for guiding future land use and precinct development particularly retail expansion around Bridge Mall and the development of niche retail along Sturt Street. Action 3: Implement the Ballarat West Growth Area Plan as the basis for guiding future growth area based retail and activity centre development. Action 4: Support the incorporation of the Ballarat Activity Centre Strategy.
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Ballarat Economic Strategy 2010 - 2014
9.6
Manufacturing
Overview: Manufacturing is a strategic sector and is critical to economic growth and
Motor Vehicle and Parts Manufacturing had the greatest share of
diversity. The urban nature of Ballarat’s manufacturing industry and its capacity to
Manufacturing employment in 2006 (19%) and is enhancing its
add value regionally means that manufacturing can consolidate Ballarat’s role as
productive capacity.
the capital of Western Victoria and as a high tech and knowledge based economy.
Manufacturing generates the greatest demand for imports ($961
Ballarat has potential to capitalise on emerging industry development
million in 2008).The sector imports around $91.5 million in Wholesale
opportunities in renewable energy and sustainable development.
Trade and $37.5 million of Road Transport. Ballarat is well placed to develop its capabilities in renewable energy
Transport and logistics, which supports manufacturing and other industries and
given its strategic position, established research capabilities,
shares common land and infrastructure needs, represents a key opportunity for
workforce capability and established manufacturing base. Several
Ballarat given its vibrant manufacturing sector, the strategic location of the City,
manufacturers are addressing sustainable development challenges
proximity to Melbourne and the Port of Geelong and availability of local assets,
through on-site stormwater harvesting and recycling and exploring
particularly rail and the Ballarat Aerodrome.
industry substitution. Ballarat can add value as a regional service centre for the Waubra
Context:
Wind Farm Project in Pyrenees Shire and the Ararat Renewable
Manufacturing accounted for the third highest share of employment by
Energy Park.
industry in Ballarat (behind retail and health and community services) and is
Transport and logistics is an emerging and growing industry in
the largest industry sector measured by output and value added.
Ballarat accounting for 1,100 jobs (2.9%) in 2006. The industry has added 283 jobs since 1996 at a growth rate of 3.0% p.a. This growth
Jobs (2006)
Total Output (2008)
Value-Added (2008)
5,615 (14.9%)
$3.8 billion (36.6%)
$840.4 million (20%)
rate was on par with Regional Victoria and higher than that of Victoria. Transport in Ballarat generated a total output of $291 million (2.8%)
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates
and value added of $123.4 million (2.9%) in 2008. The industry Key specialisations in Ballarat include Fruit and Vegetable Processing (which
generated $69.1 million in exports equating to a share of 1.8% of
increased its share of employment between 2001 and 2006 by 9%), Machinery
total Ballarat exports.
and Equipment Manufacturing, and Manufacturing geared to the construction
Ballarat is a net importer of transport services with this industry
industry. Other Food Manufacturing also accounted for a significant share of
selling $160.9 million worth of services to Ballarat in 2008. Transport
manufacturing employment in 2006.
imported around $44.8 million of inputs from within Australia in 2008.
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Ballarat Economic Strategy 2010 - 2014 Issues/Challenges:
Implementation Actions:
There is an ongoing need to facilitate and support change in manufacturing and transport and logistics and to build capacity to add value.
Action 1: Implement the recommendations of the Ballarat Workforce
Ballarat has a small primary production role but adds value through food
Development Strategy in relation to manufacturing and transport and
processing using primary produce from the broader region.
logistics.
There is potential to boost local supply chain linkages with local advanced business services and logistics firms (to in part reduce imports).
Action 2: Develop a long term vision for manufacturing in Ballarat and
Skilling needs are unclear given industry transitioning however securing a
leverage the Investment Attraction Plan to grow locally based firms and
reliable pipeline of skilled workers particularly at management level is an issue.
attract complementary firms which can add value to regional production
The potential impacts and opportunities from the Carbon Pollution Reduction
(food processing, viticulture, industrial equipment and machinery,
Scheme and other environmental measures are unclear.
construction industry based manufacturing, expansion of existing
There is a need to provide a reliable supply of serviced and well located land
businesses).
(although plans are in place to address this). Water intensive manufacturing activities are being challenged whilst new forms
Action 3: Secure suitable land adjacent to Ballarat Aerodrome for a
of power generation are required and are being explored in some cases.
future transport and logistics hub.
The potential exists to boost research and development capacity to drive jobs growth in manufacturing.
Action 4: Develop the Ballarat West Employment Zone and advocate for associated infrastructure investments.
Goals: Continue to grow manufacturing and
Action 5: Undertake a scoping study to identify energy security issues
transport and logistics by output and value
and opportunities (such as smart electricity grids) and explore new
added.
renewable energy opportunities.
Develop a high technology and flexible manufacturing sector.
Action 6: Build on links with local education institutions to improve the
Boost local supply chains to assist import
research and development capacity of Ballarat’s manufacturing industry
replacement. Key sectors include Fruit and Vegetable Processing, Machinery
to support jobs growth and productivity.
and Equipment Manufacturing, and links to the construction industry. Support other local and regional industries with an enhanced logistics sector. Provide sufficient and well located land to support industry growth and development.
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Ballarat Economic Strategy 2010 - 2014
9.7
Information, Communications and Technology
Overview: Ballarat has a competitive advantage in this industry and is well positioned for
The interaction between businesses and the University of Ballarat has
future growth. The industry contributes to economic growth and
been pivotal to industry development in the areas of workforce
diversification and is enhancing Ballarat’s position as a centre for ICT not only
development, industry support and research and development.
in Victoria but also Australia more broadly. Ongoing development of ICT assets and the National Broadband Network will see the industry well placed
Issues/Challenge:
to drive skills development and economic growth and diversification, and help
Resolving potential land availability issues at the Technology Park and
establish Ballarat as the premier high tech and knowledge based regional
improving integration with the Ballarat CBD.
economy in Australia. This sector has grown based on strong ‘earn as you
Need for ongoing close collaboration between the UBTP and Council to
‘learn partnerships between IBM and the University of Ballarat.
ensure regional ICT development is underpinned by balanced and considered approach to industry expansion.
Context:
Potential land locking in the Technology Park could hinder future growth
ICT (Communications) industry sector in Ballarat is in a growth phase.
and business attraction. Ensuring that relevant skills and capabilities are readily available for
Jobs (2006)
Total Output (2008)
Value-Added (2008)
further growth and evolution.
798 (2.1%)
$334.2 million (3.2%)
$166.7 million (4.0%)
Support industry diversification to attract and retain software
Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates; Total jobs is most
programmers.
likely understated given ABS industry definition of „communications‟ and relationships with other sectors
Developing stronger supply chain linkages and relationships with regional
The industry is increasing its export propensity with its location quotient
businesses.
index growing from 0.9 in 2001 to 1.2 in 2006 in relation to Victoria.
Ensure that emerging businesses remain viable into the longer term.
The industry generated total exports of $91.9 million in 2008 (2.3% of Goals:
total exports). Ballarat has a substantial competitive advantage in the industry through
Build on established and successful ICT industry base, and continue to
the University of Ballarat Technology Park which has IBM, the State
grow a robust ICT industry that is characterised by innovation and
Revenue Office, and Ambulance Victoria as anchor tenants. The Park also
enterprise development.
contains the Global Innovation Centre and the Greenhill Enterprise Centre.
Create conducive business conditions for ICT business firms to relocate
The Park has capital assets worth around $70 million.
into and expand within Ballarat.
Strategic links with the University (TAFE/Higher Education) allow a reliable
Build linkages between the Technology Park and the CBD.
supply of relevant knowledge and skills to be provided to support growth.
Build ICT as an ‘enabler’ of broader industry development.
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Ballarat Economic Strategy 2010 - 2014
Implementation Actions: Action 1: Deliver the Ballarat ICT 2030 Strategy as the basis for industry development. Action 2: Assist Ballarat ICT Ltd in its advocacy for the National Broadband Network and other infrastructure needs. Action 3: Build on the successful governance model of Ballarat ICT Ltd for replication across other industry sectors. Action 4: Carry out a cross-sectoral ICT audit of firms to identify current usage and issues and explore ways of improving ICT take-up.
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Ballarat Economic Strategy 2010 - 2014
10
Economy Wide Priority Areas
10.1
Human Capital and Workforce
Overview:
Ballarat has 23.7% of its workforce holding a Bachelor or Postgraduate
Economic development is linked more than ever to harnessing skills to grow
qualification, which is an indicator of ‘Highly Skilled Workers’. The same
existing businesses and to attract new businesses. Having access to a skilled
figure for Victoria is 29.3% and for Melbourne it is 32.8%.
workforce makes local firms more competitive and makes Ballarat a more
Ballarat is well placed to grow skills locally through its high quality
attractive place to establish a new business, whether it be a small business
education offer, and attract new skilled residents based on a high quality
start-up to a large ‘footloose’ firm seeking a new home. The capacity to
lifestyle, access to education and health services, improved housing
attract, retain and develop skills is the fundamental element of establishing
affordability, and access to Melbourne and regional gateways.
Ballarat as the premier knowledge based regional economy in Australia. Issues/Challenge: Ballarat is currently well placed to develop skills from within due to its high
To grow the highly skilled worker base above current trends.
quality education offer. Skills can also be imported via in-migration of
Maintaining a supply of skills and addressing current skills shortages.
residents and workers. In-migration of skilled residents can be facilitated
Maintaining growth in advanced qualification categories.
through having a high quality lifestyle and employment offer. This requires
Delivering high quality and rewarding local career pathways for vocational
housing, services, recreation and entertainment opportunities to be continually
and professional workers across Ballarat’s industries.
advanced and improved to meet workforce and business owner needs. A
To provide more work opportunities for people in the 20s and 30s, including
unique feature of Ballarat is its capacity to deliver training in heritage and rare
higher retention and attraction of students and workers from elsewhere.
trades.
Building capacity within middle management and family based businesses.
Context:
Goals:
Ballarat has a strong base of human capital including willing business and
Grow the skilled worker base above current trends and achieve a
community leaders, a strong volunteer culture, a rich cultural and urban
benchmark skills base similar to metropolitan Melbourne (see table
heritage and stable workforce.
overleaf).
Ballarat has a workforce of 37,537, which includes a significant professional
Address current skills shortages.
worker base at 19.4% of the workforce.
Retain and attract people in their 20s and 30s for work and education
The most common qualification type in Ballarat is the Certificate, which is a
opportunities.
reflection of a strong vocational employment base of the region.
Deliver life-long learning opportunities.
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Ballarat Economic Strategy 2010 - 2014 Implementation Actions: Skills Challenge Action 1: Implement the accepted recommendations of the Workforce Development Strategy.
Business as Usual in Ballarat
Highly Skilled Skilled Other Workers Total
2006 6,997 13,327 17,397 37,721
2026 10,696 20,370 26,592 57,657
Total Change 3,698 7,043 9,195 19,936
Annual Change "Challenge" 185 352 460 997
Melbourne Benchm ark Scenario in Ballarat
Highly Skilled Skilled Other Workers Total
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2006 6,997 13,327 17,397 37,721
2026 14,756 17,499 25,402 57,657
Total Change 7,758 4,173 8,005 19,936
Annual Change "Challenge" 388 209 400 997
Ballarat Economic Strategy 2010 - 2014
10.2
Business Development and Innovation
Overview: A responsive and supportive business environment is critical to Ballarat
Commerce Ballarat is a key business representative organisation engaged
attracting investment and consolidating its position as the capital of Western
in leadership, networking, sourcing funding for business development and
Victoria and as the premier knowledge based regional economy in Australia.
providing business training.
Business development and innovation is driven by the private sector but
Issues/Challenge:
requires a conducive and supportive business environment to be fully
Business development and innovation is driven by the private sector but
realised. This relates to having a supportive culture and infrastructure,
can be supported or hindered by the local culture and regulatory
strategies, networks, development controls and business regulations in place
conditions.
that support growth, change and new investment.
The public sector has an important role to play in providing the preconditions for growth, investment and innovation.
Innovation is typically driven from within, via the
There is a need to regularly review and update strategies (such as in land
creativity and capacity of the workforce, and / or via
supply and infrastructure), development controls and regulations to
an advantage provided by the natural resource base
ensure that they are aligned with economic aspirations.
of a region (which can provide advantages to local firms). Innovation can be expressed in terms of
Goals:
making existing goods or services better or in
Create a supportive investment environment which encourages business
making new goods or services.
development and is supportive of local innovation.
Innovation in Ballarat will be assisted by the strong
Establish strategies and regulations that are geared to support business
networks and cooperation between industry
development, innovation and appropriate investment.
associations which exists.
Support organisations
Context:
that can advise on and
Council’s Economic Development Unit undertakes a range of tasks to
provide leadership for
support and promote economic development.
economic development.
Ballarat has established a high level Expert Reference Group to inform and guide strategic activities. The Committee for Ballarat and Ai Group are local advocacy and representative organisations which advocate for various strategic projects.
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Ballarat Economic Strategy 2010 - 2014
Implementation Actions: Action 1: Enhance and promote the Ballarat Industry Participation Program as a means of promoting industry capability. Action 2: Assist the local business community to access State and Federal Government funding grants to support innovation. Action 3: Build cross-sectoral research and development capacity and enhance commercialisation to support innovation and value adding opportunities. Action 4: Revitalise Council’s innovation program to maximise relevance to the local business community.
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