City of Ballarat's Economic Strategy 2010-2014

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

5th Floor, 171 Latrobe Street,

Melbourne Victoria 3000

phone: 61 3 8616 0331

fax: 61 3 8616 0332

email: [email protected]

web: www.sgsep.com.au

mailto:[email protected]

http://www.sgsep.com.au/

City of Ballarat

Table of Contents

1 Introduction ................................................................................................. 1

2 Ballarat: Strategically Located in Victoria ........................................................ 2

3 Ballarat’s Strategic Policy Context .................................................................. 3

4 Informing Action: A Ballarat Situation Analysis ................................................ 5

5 Potential of Ballarat and Economic Sectors ...................................................... 9

6 Economic Development and the Role of the City of Ballarat ............................. 12

7 Economic Vision .......................................................................................... 15

8 Economic Strategy Framework ...................................................................... 16

9 Sectoral Priority Areas ................................................................................. 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 Economy Wide Priority Areas ........................................................................ 32

10.1 Human Capital and Workforce ....................................................................................................................32

10.2 Business Development and Innovation .........................................................................................................34

Ballarat Economic Strategy 2010 - 2014

City of Ballarat P. 1

1 Introduction

SGS Economics and Planning Pty. Ltd. (SGS)

was commissioned by the City of Ballarat in

October 2009 to prepare the Economic

Strategy 2010 – 2014. The Strategy sets out a

20 year vision for the Ballarat economy whilst

also providing practical guidance for Council

and local stakeholders for economic

development in the City of Ballarat.

“The City of Ballarat…Economic Strategy

(ES)…will fundamentally shape the city‟s

development and guide growth for the next

five years. The ES will provide a framework

that articulates Council‟s vision and objectives

for Ballarat‟s current and future economy, and

propose… a range of practical measures

designed to achieve the vision and objectives

set out within the document.”

The City of Ballarat has a long history of

involvement in economic development through

the provision of services to the local business

community via its Economic Development Unit

within Council. These activities have most

recently been generally informed by the 2006

City of Ballarat Economic Development

Strategy.

Since that time, local economic circumstances

have changed considerably including upward

revisions to population projections, the global

financial crisis, ongoing industry changes and

adjustments, new business development

opportunities and new infrastructure

investments. In light of the revisions to

Ballarat’s population projections, the City of

Ballarat is looking to leverage economic

development opportunities to ensure that the

employment and service needs of new

residents can be satisfied locally.

To inform the Strategy, Council has

undertaken extensive strategic planning

relating to land use, the Ballarat CBD, the

Ballarat West Growth Area and strategic

industry sectors. The City of Ballarat has also

reviewed opportunities for the future with

stakeholders and regional leaders.

Council recently commissioned a review of its

Economic Development Unit which explored

Council’s current approach to economic

development and set out how the City might

best fulfil its economic development functions

and obligations in the future. The key

recommendation was that the City move away

from a focus on ‘service delivery’ to a ‘regional

leadership’ role via a whole of Council

emphasis on strategy development.

This Economic Strategy has been prepared in

consultation with the Project Control Group

and an Expert Reference Group. The Strategy

has been informed by a review of the local,

regional and national policy context, a detailed

socio-economic profile, an outline

infrastructure review and stakeholder

consultation.

This document provides the Economic Strategy

for Ballarat. It also provides the context for

the following detailed plans relating to

Ballarat’s economic development:

1. An Implementation Plan;

2. An Investment Attraction Plan; and

3. A Marketing and Communications Plan



2 Ballarat: Strategically Located in Victoria

Ballarat is located 115 kilometres west of Melbourne. Travel time is

around 1.25 hours by car.

Ballarat is located around 1.5 hour’s drive to Victoria’s Surf Coast.

The city is strategically located at the junction of four major highways:

the Western Highway, Midland Highway, Glenelg Highway, and

Sunraysia Highway.

Ballarat Train Station is a hub for regional public transport to Ararat,

Halls Gap, Horsham, and facilitates access to Melbourne via the

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

Ballarat Art Gallery, the Ballarat Wildlife Park and other cultural and

heritage facilities.

Ballarat is a regional service and employment centre for Victoria’s western

region, particularly the Central Highlands. The city is base for regional

retail, commercial and industrial employment.

Ballarat contains locally and regionally significant sport and recreational

facilities including the Ballarat Aquatic Centre and several other major

indoor sporting facilities.



3 Ballarat’s Strategic Policy Context

Federal Government Policy Context

The Grampians Regional Development

Australia (RDA) Committee will provide

strategic input into national programs and

will be the conduit for regional engagement

with Canberra.

Infrastructure Australia (IA) is an

independent statutory authority which will

oversee implementation of a national

infrastructure development program.

Skills Australia is a statutory authority which

provides advice to Government on current

and future skills needs.

The National Broadband Network will be

delivered by the Federal Government and

will service 98% of Australia’s population at

a rate of 12 megabits per second.

Schools in Ballarat have received significant

funding for upgrades as part of the Federal

Government Economic Stimulus Package.

The City of Ballarat received funding for

community infrastructure investments as

part of the Economic Stimulus Package.

The Federal Government is providing

funding to duplicate the Western Highway

between Ballarat and Stawell and the re-

alignment of Anthony’s Cutting.

The Clever Health Project, funded through the

Department of Broadband, Communication and

the Digital Economy, will link emergency/

urgent care and maternity patients in the

Central Highlands region through wireless and

video conference technology and specialist

equipment.

State Government Policy Context

The Central Highlands Regional Plan will be

prepared in 2010 and will be the key State

policy guiding strategic development in the

Central Highlands. The Plan will emphasise the

role of Ballarat in the context of the Central

Highlands region.

Melbourne 2030 nominates Ballarat as a Transit

City and has attracted investment in regional

fast rail and other transit city projects.

Melbourne @ 5 million, the Melbourne 2030

update, anticipates that of the 477,000 new

people which are expected to locate in Regional

Victoria between 2006 and 2036, 40% will be

distributed to the major regional cities of

Ballarat, Geelong and Bendigo.

Innovation: Victoria‟s Future – The Victorian

Innovation Statement 2008 cites the Ballarat

Technology Park is one of Australia’s premier IT

hubs.

The Park contributes around $350 million

annually to Ballarat and has delivered over

2,350 new jobs.

The Victorian Transport Plan notes two key

projects to be undertaken in Ballarat

including the duplication of the Western

Highway between Ballarat and Stawell and

an upgrade of the Mildura-Geelong Freight

Rail line.

The HealthSMART initiative will be

implemented in the Grampians region

through Grampians Health based in Ballarat

and will modernise and replace healthcare

ICT systems to ensure Grampians Health

remains consistent with other facilities in the

State.

Freight Futures nominates Ballarat on the

Principal Freight Network as a location for an

intermodal terminal.

Regional Policy Context

The Central Highlands Regional Strategy

(CH21) aims to foster sustainable

development in the Central Highlands

Region and support growth, investment and

improved liveability for the regional

community.

The Central Highlands Region – Regional

Priorities nominates the key priorities as:



o Sustainable industry – delivering a

low carbon economy, building

renewable energy capacity through

advisory services and other

opportunities.

o Access to Water – Increased water

recycling, reuse, harvesting, and

potable substitution.

o Planning for Reform – identifying

priority growth zones, locations for

different industry types, and

development of peri-urban population

growth guidelines.

o Regional Connectivity improvements

o Service Planning and Delivery –

Develop a Central Highlands Health

and Wellbeing Framework

Local Government Policy Context

The Ballarat CBD Strategy sets the strategic

direction for guiding built form outcomes in

the Ballarat CBD. The Strategy reinforces

Ballarat as a regional city and seeks to guide

the development of precincts, plan for future

residential development, and set a direction

for streetscape upgrades and the

redevelopment of strategic sites.

Ballarat West has been designated as the

future growth area in Ballarat and is

expected to accommodate around 30,000 –

40,000 people and at least 14,000

dwellings.

The growth area will be supported by

strategically located activity centres with co-

located schools and community facilities.

Delacombe town centre in Ballarat West

proposes up to 15,000sqm of retail floorspace,

while Alfredton town centre would comprise

6,500sqm. Smaller centres are proposed for

Alfredton, Delacombe North and Sebastopol

West.

The Residential Infill Opportunities Study

identified 148 hectares of developable land for

infill housing.

Ballarat ICT 2030 aims to strengthen Ballarat

as a leading international information and

communications technology (ICT) centre.

Ballarat’s eHealth Capability Statement notes

that Ballarat has extensive capabilities in health

services linked with its expertise in ICT. This

includes capabilities in the management of

health information systems.

Ballarat has major educational assets including

the University of Ballarat, ACU, Deakin

University medical school, and will have

medical schools for the University of

Melbourne, and the Notre Dame Medical School

at St John of God Health Care.

Blueprint Ballarat aims to make Ballarat’s

manufacturing base world class in areas of

elaborately transformed manufactures.

Ballarat has a strong tourism offer comprising

built attractions, local events and cultural

tourism.

Ballarat is also a major stakeholder in

regional tourism which includes wellbeing

tourism opportunities in Hepburn and

Daylesford and the Victorian goldfields

region.

Selected Development Opportunities

There is significant retail and commercial

floorspace demand in Ballarat to 2031,

estimated to be approximately (net

additional): 28,000sqm of food, grocery and

liquor commodities floorspace; 37,000sqm

for household goods; 51,000sqm for bulky

goods; 27,000sqm for retail services;

105,000sqm of commercial, professional and

business services floorspace; 20,000sqm for

community services; 18,000sqm of

entertainment and recreation floorspace;

15,000sqm for leisure; and 21,000sqm of

medical and healthcare floorspace.

Ballarat has demand for between 13 and 19

hectares of industrial land per year over 10

years. 190 hectares of zoned, developable

and serviced industrial land should be

available at any one time with land adjacent

to Ballarat Aerodrome providing a short term

opportunity. 30% of future industrial land

demand should be allocated to smaller scale

industrial activities.

A feasibility study found that the Airport

Precinct Site would be favourable for a new

Freight Hub.



4 Informing Action: A Ballarat Situation Analysis

Context

Ballarat is recognised as the capital of the

west. This has been recognised in this

Strategy in the vision and overview sections

for each sectoral priority area and economy-

wide priority areas.

The City of Ballarat had an estimated resident

population of 91,787 as of June 2008. Since

1996, the population has increased by 15,278

at 1.4% p.a.

Victoria in Future 2008 Population Projections

suggest that Ballarat’s population will reach

118,752 by 2026.

The number of households in Ballarat

increased from 27,952 in 1996 to 31,956 in

2006 (+14.3%).

The median weekly household income in

Ballarat in 2006 was $838. This was an 18%

increase on 1996 ($512). Over the same

period, Victoria saw a 20% increase in

median weekly household income from $628

in 1996 to $1,021 in 2006.

Ballarat had an employment self-sufficiency

rate of 102% indicating that Ballarat had a

marginally greater number of jobs compared

to resident workers. This indicates a regional

employment role.

Labour Force

The labour force participation rate in 2006 was

59%, an increase from 56% in 1996. The

Victorian State average over the 10 years has

been stable at 61%.

The Ballarat unemployment rate in December

2008 was 8.0% according to the Small Area

Labour Market Publication. The Victorian

unemployment rate was 4.4% at the same

time.

In 2006, Ballarat had a high proportion of

workers with a Certificate level qualification

(34.3% compared with Victoria’s 29.2%),

followed by Bachelor Degrees (20.1% cw.

24.1%) and Advanced Diplomas and

Diplomas (12.8% cw. 13.8%).

The share of Post-Graduate Degrees in

Ballarat in 2006 was 3.6% compared with the

Victorian average of 5.2%. The share of Post-

Graduate qualifications in Ballarat has

increased from 2.3% in 1996.

Economy

The City of Ballarat had 37,974 jobs in 2006

according to REMPLAN / Census data. The

actual local employment figure in 2006 is

estimated to be 42,748 by SGS when Census

undercounting and errors are addressed.

Ballarat’s strength is in the diversity of its

economy, although the top four sectors of

employment in Ballarat are Retail Trade

(18.1%), Health and Community Services

(15.5%), Manufacturing (14.9%), and

Education (9.9%). This is noted in the Growth

Share Matrix overleaf.

Employment projections suggest that (on

current trajectories) Ballarat has the potential

increase its job stock by about 20,200 jobs in

the period between 2006 and 2026.

Strategic export sectors in the local economy

are Health and Community Services,

Education, Retail Trade, Communication

Services (ICT), Cultural and Recreation

Services (which is a part of Tourism),

Manufacturing, Accommodation, Cafes and

Restaurants (which is a part of Tourism) and

Government Administration.

Within Manufacturing, Ballarat’s has a high

representation of jobs in Motor Vehicle and

Part Manufacturing (19% compared with

Victoria’s 12%), Fruit and Vegetable

Processing (12% cw. 2%) and Other Food

Manufacturing (11% cw. 4%) (2006 data).

Strategic Manufacturing sub-sectors which

saw employment growth between 2001 and

2006 in Ballarat were Fruit and Vegetable

Processing (+9% p.a.), Machinery and

Equipment Manufacturing (+8% p.a.), and

various sub-sectors relating to the local

construction industry including Pre-Fabricated

Building Manufacturing (+19% p.a.),



Structural Metal Product Manufacturing

(+12% p.a.).

Manufacturing is a strategic sector and is

restructuring by shedding jobs but is expected

to continue to grow in output.

Imports into Ballarat in 2008 were $1.9

billion with manufacturing sales to Ballarat

totalling $757 million, Property and Business

Services ($257 million) and Transport and

Storage ($160.9 million). Property and

Business Services being imported are legal,

accounting, marketing & business

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

(as indicated by Accommodation, Cafes and

Restaurants and Cultural and Recreational

Services).

Emerging Stage: Lower right quadrant (high

average annual growth/lower concentration).

This comprises business services (such as

Property and Business Services and Finance

and Insurance) and logistics (such as

Transport and Storage and

Figure 1: Industry Growth Share

Matrix, Ballarat (2001-06)

Wholesale Trade).

Transforming Stage: Upper left quadrant

(lower average annual growth/above average

concentration).

Seed or Transitioning Stage: Lower left

quadrant (lower average annual growth/lower

concentration). Primary industries are not

highly concentrated within Ballarat but are

critical in a wider regional context, supporting

many secondary and tertiary activities within

the City.



Ballarat Sample Catchment Characteristics

Destination of Ballarat Resident Workers Origin of Workers Occupying Ballarat Jobs

Source: Australian Bureau of Statistics 2006; SGS Economics and Planning Source: Australian Bureau of Statistics 2006; SGS Economics and Planning



Ballarat Retail Catchment Use of Hospital Services – Ballarat Health Services

Source: Ballarat Commercial Development Strategy – Issues and Directions Paper; 2009, p. 61 Source: Ballarat Health Services, SGS Economics and Planning



5 Potential of Ballarat and Economic Sectors

Economic Development Defined

In broad terms, „economic development‟ can be defined as increasing an

area’s level of income and capital (wealth) and distributing that wealth

(through local expenditure and jobs) to the community. This notion

applies equally to geographic areas of any size, whether it is a nation,

State, region or Local Government Area.

Means of Measuring Industry Performance

The three ways used in this Strategy of measuring industry performance

are employment size, total output and total value added. Each is defined

below:

Employment: Number of jobs by industry sector.

Output: Total dollar value of production within the Ballarat

economy by industry sector.

Value Added: Total dollar value of production within Ballarat less

value of inputs into production including wages,

profits, rents and expenses.

Projected Industry Sector Performance Method

SGS has prepared employment, output and value added estimates and

projections by industry sector for Regional Victoria and Ballarat to 2026.

The projections factor in the anticipated effects of economic and

population growth and compositional change and take into account the

anticipated impacts of climate change.

SGS uses a top-down approach whereby forecasts were made of Gross

Value Added (GVA) for each industry and likely labour productivity in each

industry at the Victorian state level. These forecasts were then used to

make projections of total employment for non-metropolitan Victoria. These

projections were then distributed to local government areas by

extrapolating the observed shares and trends by industry.

The results present an estimate of the possible future trajectory of the

local economy in a State context, based on the best available information

at the time of analysis. The purpose of the estimates is to present a

context for understanding possible futures rather than being a fixed

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.



Industry Sector Potential, Ballarat (Employment) and Victoria (Employment and Value Added)

Ballarat Jobs

Victoria

Industry 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%

Manufacturing 6,253 6,166 -87 -0.1%

-0.2% 0.7%

Electricity, Gas and Water Supply 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%

Total All Industries 42,748 62,951 20,203 2.0%

1.5% 2.1%

Source: SGS

Note: Total percentage jobs growth over the next 20 years is approximately 68%



Business Services: This comprises both Property and Business Services

and Finance and Insurance. These industries are on a growth trajectory

and are high value. Business Services in Ballarat are mainly geared to

serving the regional population and the local sector has capacity to replace

imports and boost exports through advanced business services (e.g.

marketing, legal, business management, and brokerage). On current

trajectories, Property and Business Services is expected to grow by about

1,600 jobs to 2026 (+2.2% p.a.) with marginal growth in Finance and

Insurance in the context of strong state-wide growth in these sectors.

Health and Community Services: Ballarat has several major health

institution and small business assets. Ballarat is also a hub for regional

services into the Central Highlands. This industry adds value through the

use of technology in remote health care and imaging, and is closely linked

with the education sector through medical and clinical schools. On current

trajectories, this sector is expected to consolidate its position as a strategic

export sector for Ballarat with jobs expected to increase by about 4,700

(+2.9% p.a.) between 2006 and 2026.

Education: Ballarat has a rich base of educational assets from primary to

tertiary levels, including an independent university. Ongoing growth and

development of Ballarat’s educational infrastructure will see this industry

consolidate as a major export driver for Ballarat. Strong migration and

ongoing changes in regional industry skills needs into the future could see

the sector diversify. On current trajectories, growth of about 1,800 jobs

(+1.8% p.a.) is expected to 2026.

Tourism: Ballarat makes a substantial contribution to regional tourism

through built attractions (e.g. Sovereign Hill, Eureka Centre), major

events, and built heritage. Ballarat is also a gateway to tourism

opportunities in the Central Highlands. Ballarat is consolidating its

capabilities as a centre for regional sport, the arts, major events, and the

film industry. About 2,200 additional jobs are expected in tourism

oriented industry sectors between 2006 and 2026 on current trajectories

(i.e. Accommodation, Cafes and Restaurants and Cultural and Recreational

Services).

Retail: Strong population growth in Ballarat and the wider region is

expected to support jobs growth in retail to 2026. A key challenge for

Ballarat will be to enhance the range and depth of the retail sector through

growing ‘boutique’ retail facilities such as independent local produce

retailing, health and wellbeing opportunities, and high end branded

fashion. Jobs growth in retail is expected to be around 3,200 jobs (+2.2%

p.a.) between 2006 and 2026 on current trajectories.

Manufacturing: This industry accounts for the greatest share of output of

all industries in Ballarat. It will be critical that Ballarat’s manufacturing

industry transitions to high tech and knowledge based production

processes to support ongoing growth and innovation. The projections

indicate a marginal decline in manufacturing employment between 2006

and 2026 driven by structural change and globalisation. Future growth is

expected to be generated by new technologies and sustainable

technologies linked to ‘green jobs.’

Information, Communications and Technology: This is a strong and

evolving industry in Ballarat and is in a growth phase. Key assets such as

the University and Technology Park with anchor tenants and industry and

educational links make this industry well placed to grow over the next two

decades. Jobs growth in the Communications sector is expected to be

around 1,100 jobs between 2006 and 2026.

Other Sectors: Strong growth is also expected in other sectors as the

economy and population base grows and changes in composition. This

includes government, construction, personal service and logistics sectors.



6 Economic Development and the Role of the City of Ballarat

This section presents an overview of local government’s role in economic

development. This information should be used to better understand what

Council can and cannot do in pursuit of economic strategy objectives,

acknowledging that is has jurisdictional and funding limitations. These

limitations must be understood when moving from the strategy vision and

objectives to the implementation plan.

Local Government as an Existing Leader in Economic Development

Facilitation

The City of Ballarat, like any local government authority, has a charter to

serve its local community. This includes nurturing a spirit that will help its

businesses and residents adjust to economic change and to identify and

capitalise on opportunities for economic growth and development as they

arise.

The existing role of Council in economic development includes:

Managing the early stages of project development through its role in

development approvals (e.g. planning, building, engineering);

Investing in the provision of development infrastructure that facilitates

business and community activity and sustains environmental quality

(e.g. roads, drains, community facilities and parks and gardens);

Delivering community services that support economic activity and

promote the health and well-being of the local population (e.g. child

care, recreation and cultural services, aged care services);

Being (in many cases) the first point of contact for local businesses

and the community in relation to day-to-day concerns that affect the

immediate environment for business production and quality of life

(e.g. local land use conflicts and their resolution, lobbying other

spheres of government for attention to problems outside Council’s

responsibility, providing information on changes to regulations).

In undertaking these activities, Council is directly influencing the way in

which the local economy (and its surrounding region) develops.

Addressing the Preconditions for Investment

Council clearly has a valid and important part to play in promoting and

facilitating local economic development. However, Council must work

within its jurisdiction and resource limitations to support sustainable

growth. Economic development activities and priorities are expressed in

the implementation plan that sits under an overarching economic strategy.

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

effective role in influencing what are termed the ‘pre-conditions for a

competitive environment’. As shown overleaf, these include the topics:

Efficient and effective infrastructure;

An appropriately skilled workforce;

Supportive governance structures; and

Strong links between research and learning institutions and business

to encourage industry innovation.

Strategic infrastructure is a critical economic foundation input. Traditional

(hard) infrastructure, while critical for local and regional economic

prosperity, is not on its own sufficient. Globalisation and structural change

have shifted the drivers of regional competitiveness to areas that have

both high quality ‘old economy’ infrastructure and ‘new economy smart



infrastructure’. The latter is those elements that support and encourage

creativity and the diffusion of ideas in the local economy. This includes

skills, culture, good governance, social cohesion and quality of life.

Conceptual Model of Local Economic Prosperity

Prioritising Council Activities and Resources

The City of Ballarat could have an effective impact in economic

development by developing actions from the following topics.

Supporting a conducive business (and people) environment; for example:

Amending the Planning Scheme to reflect economic strategy

objectives;

Undertaking specific infrastructure and / or development projects;

Providing business information and advisory services; and

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

limitations. By necessity, the implementation plan identifies projects

and activities to influence other organisations, the private sector and

other spheres of government to deploy resources in a way that is

consistent with the economic vision for the municipality.



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.



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.



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.

Sectoral Priority Areas

The research and consultation that was undertaken as part of this document’s preparation identified seven ‘industry sector’ priority areas for Ballarat: bus iness

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.

Economy Wide Priority Areas

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.

Strategy Details

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.



The framework for the Ballarat Economic Strategy 2010 – 2014 is as follows:



9 Sectoral Priority Areas

9.1 Business Services

Overview:

The business services sector is a strategic growth sector in Ballarat and will

be critical to fulfilling Ballarat’s vision as the capital of Western Victoria and as

a nationally significant knowledge based economy. Advanced business

services are export-oriented and are critical inputs into local production

processes, particularly in the commercialisation of new knowledge and ideas

and growing and diversifying the economy. There is also the potential to

attract government services to Ballarat through relocations to meet future

service delivery requirements.

Context:

Business Services is defined as the ANZSIC categories of Property &

Business Services and Finance & Insurance.

Jobs (2006) Total Output (2008) Value-Added (2008)

3,854 (10.1%) $1.35 billion (13%) $688.7 million (16.3%)

Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates

The Ballarat economy imported a total of

$257.1 million in Property and Business

Services from domestic sources outside

Ballarat. These were mainly in the

advanced business services categories of

legal, accounting, marketing and

business management services.

Property & Business Services mainly supply to Manufacturing

($99.4million input in 2008) followed by Retail Trade ($40.4 million).

The Ballarat CBD is the main focus for service based employment

although other precincts such as the Technology Park also contribute to

Ballarat’s business services offer.

Issues/Challenge:

Ballarat is regionally significant in its Business Services offer but has

significant scope to replace imports in this sector and grow and diversify

the sector.

Components of advanced business services that could potentially be

targeted are legal, accounting, marketing and business management

services.

Opportunities could be explored to develop businesses locally, up-scaling

home based businesses into local offices, and attracting new firms or

branch offices of Melbourne based firms

Ballarat wage rates face competitive pressures from the capital cities.

Ensuring a reliable supply of skilled workers is an ongoing challenge.

There is a reluctance to use local business services in some

circumstances due to concerns over confidentiality issues.

Goals:

Grow the Business Services sector and Ballarat’s regional role and reduce

reliance on imports.

Establish Ballarat a preferred location for skilled workers.

Increase Ballarat’s attractiveness to new firms and investment.

Maximise the role of business services (particularly advanced business

services) in supporting innovation across all industry sectors.



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.

http://www.ubtp.com.au/cb_pages/view_photo.php?photo_id=772



9.2 Health and Community Services

Overview:

Ballarat is the service provision centre for Western Victoria in health services.

Ballarat is host to major public and private hospitals, aged care facilities,

health and community services, disability services, regional clinical schools

and supporting institutions and organisations.

Ballarat’s health and community services contribute extensively to the local

economy through employment, local purchasing, regional service provision

and via research and development partnerships with industry. These

institutions and services are expected to play a critical role in investment and

skills attraction and development.

Context:

Ballarat’s health and community services sector is the second highest

employing industry in the City behind Retail Trade.


5,829 (15.4%) $636.9 million (6.1%) $494.4 million (11.8%)


The share of employment in health and community services in Ballarat is

significantly higher than in Victoria as a whole (10.9%).

Ballarat plays a regional role in health and community service provision.

Ballarat Health Services (public hospital) and St John of God Health Care

(private hospital) are located within the City, both serve regional

catchments and are leaders in research and development in areas of

psychiatry, nursing, eHealth, and general medical.

Issues/Challenge:

The health and community services sector is a significant sector and is a

focus for growth, in part based on strong regional demand for services.

Future institutional development could be constrained by limited land

availability and physical infrastructure constraints.

Skills shortages constrain industry development (for example in general

and specialist nursing and medical specialists in orthopaedics, obstetrics

and gynaecology, oncologists, rehabilitation and general practitice).

Building links across the local business community to support local

innovation is a challenge and opportunity.

Some smaller regional health services have contracted meaning that

ceantrlised services are taking more clients.

Capacity issues have been identified at the Ballarat Austin Radiology

Oncology Centre.

Goals:

Consolidate health and community services as a strategic service sector

for Ballarat, the Grampians Region and Western Victoria.

Meet growing demands generated by population growth, service

expansion and diminution in some regional health services.

Grow Ballarat as a preferred location for medical, nursing and allied health

clinicians and clinical placements for medical students.

Build institutional and health industry engagement with the university

sector and industry.

Continually improve health promotion, illness prevention, service

development, including ambulatory care and improved co-ordination of

care.




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 development 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.

http://www.bhs.org.au/index.php



9.3 Education

Overview:

Ballarat is a world leader in education provision and contains major

institutions including the University of Ballarat, Australian Catholic University,

clinical schools, UBTec, and numerous high quality public and private

schools.

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. These institutions can play a

major role in enhancing liveability, building innovation capacity, supporting

investment attraction and reinforcing Ballarat as the capital of Western

Victoria and as Australia’s premier knowledge based regional economy.

Context:

Education is a significant employer in and export sector for Ballarat.


3,719 (9.8%) $436.7 million (4.2%) $330 million (7.8%)


The share of employment in education is higher in Ballarat than in

Victoria overall (7.7%).

Four universities have a presence in Ballarat - the University of Ballarat,

Australian Catholic University (Aquinas), and rural clinical schools from

Deakin University and the University of Melbourne. The Notre Dame

Medical School will also be developed in Ballarat.

The University of Ballarat is the base for the Institute for Regional and

Rural Research and Innovation, UBTec and the University of Ballarat

Technology Park.

Ballarat is well served by UBTAFE and private providers of Vocational

Education & Training, addressing the skills needs of industry

A substantial adult and community education sector provides for

educational reengagement which leads through pathways to Vocational

Training.

Issues/Challenge:

Education is significant in terms of employment and local infrastructure

and is a focus area of growth associated with high local and regional

population growth.

Future institutional development could be constrained by limited land

availability and physical infrastructure constraints.

Maintaining links with education providers and the local business

community as a means of facilitating innovation and ensuring an

appropriately trained and qualified workforce is a challenge and

opportunity.

Goals:

Consolidate education as a strategic export sector in Ballarat.

Use education as an enabler of an innovative community and economy.

Grow Ballarat as a location for international and intra-regional students.

Build institutional and education industry engagement with industry to

build research and development capability.

Develop a culture of lifelong learning

Improve the rate of retention of students post-qualification and the

capacity to attract previous residents back to Ballarat.




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.



9.4 Tourism

Overview:

Tourism is a key component of Ballarat’s economy and contributes to

economic growth and diversity. Ballarat can leverage tourism as a basis for

consolidating its position as the capital of Western Victoria through a

combination of built attractions, its arts, culture, heritage, education, sports,

festivals, events and conferences by further integrating with its surrounding

regions. Access to Melbourne airport is also a major competitive advantage.

Ballarat’s tourism industry will seek to be economically, environmentally and

socially sustainable, a significant driver of economic growth and a creator of

individual wealth and prosperity.

Context:

Tourism (as defined by REMPLAN) comprises elements of retail,

accommodation, cafes and restaurants and other sectors.


2,027 (5.5%) $409.3 million (3.93%) $167.7 million (3.9%)


Destination Ballarat is dedicated to marketing the Ballarat tourism

product and growing visitation to Ballarat and assisting local businesses

capitalise on these opportunities.

Sovereign Hill is the visitor magnet of Ballarat and attracts more than

500,000 visitors annually. It is estimated that Sovereign Hill attracts

around 475,000 day visitors and 89,000 night visitors per year.

Other key tourism assets include, the Lake Wendouree Precinct including

the POW memorial, Ballarat Wild Life Park, Art Gallery of Ballarat, Eureka

centre and Her Majesty’s Theatre.

Ballarat’s sports precincts are a catalyst for sports tourism and event

growth.

Educational Tourism is a key growth area for Ballarat.

Ballarat is considered as a safe destination.

Ballarat has a developing film industry that can be expanded and

integrated within the tourism offer.

Ballarat has a rich history and is a strong heritage destination.

Issues/Challenge:

If Ballarat’s tourism industry is to continue to grow and develop it will need

to:

Showcase Ballarat as a leading, vibrant and innovative tourism

destination;

Delight visitors with enriching, enjoyable and exciting visitor experiences

that are distinctly Ballarat;

Generate business growth and profitability, create jobs and stimulate the

growth of the Ballarat economy;

Enrich the lifestyle of the Ballarat community and its visitors;

Celebrate and protect Ballarat culture, heritage and natural environment;

and

Champion an industry wide culture of partnership and mutual respect.

To grow visitor numbers and visitor spend it is essential to look to the factors

that are likely to impact future supply and demand in tourism, such as:

Importance of tourism and how businesses and the community can

maximise benefits;

Changing demographics and family structures impacting on travel value

choices, needs and interests and a trend towards shorter, more frequent

holidays;



Lack of investment in new accommodation, product, services and niche

experiences;

Rising expectations in service standards, quality and workforce skills;

A need for investment in infrastructure to meet the needs of a growing

population and tourism industry;

New markets in higher yielding conventions, conferences and events;

The need for improved coordination in promotion of Ballarat’s diverse

product and brand;

The need to capitalise on recognised attractions such as Sovereign Hill,

Gold Museum and Blood on the Southern Cross, and the Eureka Centre;

Continue to target new markets in particular India, China and New

Zealand and increase the use of technology; and

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.


Action 1: Continue to refine and implement the Tourism Strategy – Towards

2020

Action 2: Undertake a tourism infrastructure and capability audit, and

identify product and service gaps.

Action 3: Build a strong industry body independent of Council, with

responsibility for the management of all industry initiatives, to unify and grow

the maturity of the industry and create quality, consistency, professionalism,

innovation and influence.



9.5 Retail

Overview:

Ballarat is the primary centre for higher order retail provision in Western

Victoria. Ballarat will build on its retail offer to provide a complete capital city

experience including a full suite of retail services and experiences with a

unique national brand.

The retail sector will be diversified to minimise escape expenditure and to

ensure better access to retail opportunities for the regional community. This

will be achieved through developing a recognised activity centre hierarchy that

will consolidate Ballarat’s position as the capital of Western Victoria.

Retail objectives will also be implemented through the ‘Making Ballarat Central‟

CBD Strategy.

Context:

Ballarat’s retail sector is a regionally significant and growing industry. It is

the biggest sector in the City by share of employment.


6,833 (18.1%) $785.8 million (7.5%) $396.9 million (9.4%)


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,

Stockland Wendouree, Sebesatapol North and Howitt Street shopping

centres in addition to other local centres.

Issues/Challenge:

A lack of high end retail and luxury retailers within Ballarat, leading to

local expenditure being spent elsewhere including in Melbourne.

Centrally located retail land supply is restricted, and future retail

floorspace maybe redirected to Ballarat’s growth area.

Attracting higher end retailers is dependent on a number of factors

including the size and socio-economic profile of the catchment and the

retail environment.

Goals:

Boost diversity in retail quality and supply, with a focus on growth in

higher-end retail brands and the development of niche markets in the

CBD.

Deliver neighbourhood level retail supply in the growth area.

Establish retail environments (existing and future) which attract diverse

retailers and promote retail diversity in Ballarat.




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 Central‟ 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.



9.6 Manufacturing

Overview:

Manufacturing is a strategic sector and is critical to economic growth and

diversity. The urban nature of Ballarat’s manufacturing industry and its capacity to

add value regionally means that manufacturing can consolidate Ballarat’s role as

the capital of Western Victoria and as a high tech and knowledge based economy.

Ballarat has potential to capitalise on emerging industry development

opportunities in renewable energy and sustainable development.

Transport and logistics, which supports manufacturing and other industries and

shares common land and infrastructure needs, represents a key opportunity for

Ballarat given its vibrant manufacturing sector, the strategic location of the City,

proximity to Melbourne and the Port of Geelong and availability of local assets,

particularly rail and the Ballarat Aerodrome.

Context:

Manufacturing accounted for the third highest share of employment by

industry in Ballarat (behind retail and health and community services) and is

the largest industry sector measured by output and value added.


5,615 (14.9%) $3.8 billion (36.6%) $840.4 million (20%)


Key specialisations in Ballarat include Fruit and Vegetable Processing (which

increased its share of employment between 2001 and 2006 by 9%), Machinery

and Equipment Manufacturing, and Manufacturing geared to the construction

industry. Other Food Manufacturing also accounted for a significant share of

manufacturing employment in 2006.

Motor Vehicle and Parts Manufacturing had the greatest share of

Manufacturing employment in 2006 (19%) and is enhancing its

productive capacity.

Manufacturing generates the greatest demand for imports ($961

million in 2008).The sector imports around $91.5 million in Wholesale

Trade and $37.5 million of Road Transport.

Ballarat is well placed to develop its capabilities in renewable energy

given its strategic position, established research capabilities,

workforce capability and established manufacturing base. Several

manufacturers are addressing sustainable development challenges

through on-site stormwater harvesting and recycling and exploring

industry substitution.

Ballarat can add value as a regional service centre for the Waubra

Wind Farm Project in Pyrenees Shire and the Ararat Renewable

Energy Park.

Transport and logistics is an emerging and growing industry in

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

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%)

and value added of $123.4 million (2.9%) in 2008. The industry

generated $69.1 million in exports equating to a share of 1.8% of

total Ballarat exports.

Ballarat is a net importer of transport services with this industry

selling $160.9 million worth of services to Ballarat in 2008. Transport

imported around $44.8 million of inputs from within Australia in 2008.



Issues/Challenges:

There is an ongoing need to facilitate and support change in manufacturing

and transport and logistics and to build capacity to add value.

Ballarat has a small primary production role but adds value through food

processing using primary produce from the broader region.

There is potential to boost local supply chain linkages with local advanced

business services and logistics firms (to in part reduce imports).

Skilling needs are unclear given industry transitioning however securing a

reliable pipeline of skilled workers particularly at management level is an issue.

The potential impacts and opportunities from the Carbon Pollution Reduction

Scheme and other environmental measures are unclear.

There is a need to provide a reliable supply of serviced and well located land

(although plans are in place to address this).

Water intensive manufacturing activities are being challenged whilst new forms

of power generation are required and are being explored in some cases.

The potential exists to boost research and development capacity to drive jobs

growth in manufacturing.

Goals:

Continue to grow manufacturing and

transport and logistics by output and value

added.

Develop a high technology and flexible

manufacturing sector.

Boost local supply chains to assist import

replacement. Key sectors include Fruit and Vegetable Processing, Machinery

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.


Action 1: Implement the recommendations of the Ballarat Workforce

Development Strategy in relation to manufacturing and transport and

logistics.

Action 2: Develop a long term vision for manufacturing in Ballarat and

leverage the Investment Attraction Plan to grow locally based firms and

attract complementary firms which can add value to regional production

(food processing, viticulture, industrial equipment and machinery,

construction industry based manufacturing, expansion of existing

businesses).

Action 3: Secure suitable land adjacent to Ballarat Aerodrome for a

future transport and logistics hub.

Action 4: Develop the Ballarat West Employment Zone and advocate for

associated infrastructure investments.

Action 5: Undertake a scoping study to identify energy security issues

and opportunities (such as smart electricity grids) and explore new

renewable energy opportunities.

Action 6: Build on links with local education institutions to improve the

research and development capacity of Ballarat’s manufacturing industry

to support jobs growth and productivity.



9.7 Information, Communications and Technology

Overview:

Ballarat has a competitive advantage in this industry and is well positioned for

future growth. The industry contributes to economic growth and

diversification and is enhancing Ballarat’s position as a centre for ICT not only

in Victoria but also Australia more broadly. Ongoing development of ICT

assets and the National Broadband Network will see the industry well placed

to drive skills development and economic growth and diversification, and help

establish Ballarat as the premier high tech and knowledge based regional

economy in Australia. This sector has grown based on strong ‘earn as you

‘learn partnerships between IBM and the University of Ballarat.

Context:

ICT (Communications) industry sector in Ballarat is in a growth phase.


798 (2.1%) $334.2 million (3.2%) $166.7 million (4.0%)

Source: Based on REMPLAN data; differs marginally to SGS adjusted job estimates; Total jobs is most

likely understated given ABS industry definition of „communications‟ and relationships with other sectors

The industry is increasing its export propensity with its location quotient

index growing from 0.9 in 2001 to 1.2 in 2006 in relation to Victoria.

The industry generated total exports of $91.9 million in 2008 (2.3% of

total exports).

Ballarat has a substantial competitive advantage in the industry through

the University of Ballarat Technology Park which has IBM, the State

Revenue Office, and Ambulance Victoria as anchor tenants. The Park also

contains the Global Innovation Centre and the Greenhill Enterprise Centre.

The Park has capital assets worth around $70 million.

Strategic links with the University (TAFE/Higher Education) allow a reliable

supply of relevant knowledge and skills to be provided to support growth.

The interaction between businesses and the University of Ballarat has

been pivotal to industry development in the areas of workforce

development, industry support and research and development.

Issues/Challenge:

Resolving potential land availability issues at the Technology Park and

improving integration with the Ballarat CBD.

Need for ongoing close collaboration between the UBTP and Council to

ensure regional ICT development is underpinned by balanced and

considered approach to industry expansion.

Potential land locking in the Technology Park could hinder future growth

and business attraction.

Ensuring that relevant skills and capabilities are readily available for

further growth and evolution.

Support industry diversification to attract and retain software

programmers.

Developing stronger supply chain linkages and relationships with regional

businesses.

Ensure that emerging businesses remain viable into the longer term.

Goals:

Build on established and successful ICT industry base, and continue to

grow a robust ICT industry that is characterised by innovation and

enterprise development.

Create conducive business conditions for ICT business firms to relocate

into and expand within Ballarat.

Build linkages between the Technology Park and the CBD.

Build ICT as an ‘enabler’ of broader industry development.




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.



10 Economy Wide Priority Areas

10.1 Human Capital and Workforce

Overview:

Economic development is linked more than ever to harnessing skills to grow

existing businesses and to attract new businesses. Having access to a skilled

workforce makes local firms more competitive and makes Ballarat a more

attractive place to establish a new business, whether it be a small business

start-up to a large ‘footloose’ firm seeking a new home. The capacity to

attract, retain and develop skills is the fundamental element of establishing

Ballarat as the premier knowledge based regional economy in Australia.

Ballarat is currently well placed to develop skills from within due to its high

quality education offer. Skills can also be imported via in-migration of

residents and workers. In-migration of skilled residents can be facilitated

through having a high quality lifestyle and employment offer. This requires

housing, services, recreation and entertainment opportunities to be continually

advanced and improved to meet workforce and business owner needs. A

unique feature of Ballarat is its capacity to deliver training in heritage and rare

trades.

Context:

Ballarat has a strong base of human capital including willing business and

community leaders, a strong volunteer culture, a rich cultural and urban

heritage and stable workforce.

Ballarat has a workforce of 37,537, which includes a significant professional

worker base at 19.4% of the workforce.

The most common qualification type in Ballarat is the Certificate, which is a

reflection of a strong vocational employment base of the region.

Ballarat has 23.7% of its workforce holding a Bachelor or Postgraduate

qualification, which is an indicator of ‘Highly Skilled Workers’. The same

figure for Victoria is 29.3% and for Melbourne it is 32.8%.

Ballarat is well placed to grow skills locally through its high quality

education offer, and attract new skilled residents based on a high quality

lifestyle, access to education and health services, improved housing

affordability, and access to Melbourne and regional gateways.

Issues/Challenge:

To grow the highly skilled worker base above current trends.

Maintaining a supply of skills and addressing current skills shortages.

Maintaining growth in advanced qualification categories.

Delivering high quality and rewarding local career pathways for vocational

and professional workers across Ballarat’s industries.

To provide more work opportunities for people in the 20s and 30s, including

higher retention and attraction of students and workers from elsewhere.

Building capacity within middle management and family based businesses.

Goals:

Grow the skilled worker base above current trends and achieve a

benchmark skills base similar to metropolitan Melbourne (see table

overleaf).

Address current skills shortages.

Retain and attract people in their 20s and 30s for work and education

opportunities.

Deliver life-long learning opportunities.




Action 1: Implement the accepted recommendations of the Workforce

Development Strategy.

Skills Challenge

2006 2026 Total Change

Annual Change

"Challenge"

Highly Skilled 6,997 10,696 3,698 185

Skilled 13,327 20,370 7,043 352

Other Workers 17,397 26,592 9,195 460

Total 37,721 57,657 19,936 997

2006 2026 Total Change

Annual Change

"Challenge"

Highly Skilled 6,997 14,756 7,758 388

Skilled 13,327 17,499 4,173 209

Other Workers 17,397 25,402 8,005 400

Total 37,721 57,657 19,936 997

Business as Usual in Ballarat

Melbourne Benchmark Scenario in Ballarat



10.2 Business Development and Innovation

Overview:

A responsive and supportive business environment is critical to Ballarat

attracting investment and consolidating its position as the capital of Western

Victoria and as the premier knowledge based regional economy in Australia.

Business development and innovation is driven by the private sector but

requires a conducive and supportive business environment to be fully

realised. This relates to having a supportive culture and infrastructure,

strategies, networks, development controls and business regulations in place

that support growth, change and new investment.

Innovation is typically driven from within, via the

creativity and capacity of the workforce, and / or via

an advantage provided by the natural resource base

of a region (which can provide advantages to local

firms). Innovation can be expressed in terms of

making existing goods or services better or in

making new goods or services.

Innovation in Ballarat will be assisted by the strong

networks and cooperation between industry

associations which exists.

Context:

Council’s Economic Development Unit undertakes a range of tasks to

support and promote 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.

Commerce Ballarat is a key business representative organisation engaged

in leadership, networking, sourcing funding for business development and

providing business training.

Issues/Challenge:

Business development and innovation is driven by the private sector but

can be supported or hindered by the local culture and regulatory

conditions.

The public sector has an important role to play in providing the

preconditions for growth, investment and innovation.

There is a need to regularly review and update strategies (such as in land

supply and infrastructure), development controls and regulations to

ensure that they are aligned with economic aspirations.

Goals:

Create a supportive investment environment which encourages business

development and is supportive of local innovation.

Establish strategies and regulations that are geared to support business

development, innovation and appropriate investment.

Support organisations

that can advise on and

provide leadership for

economic development.




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.

City of Ballarat's Economic Strategy 2010-2014

Documents

Transcript of City of Ballarat's Economic Strategy 2010-2014