FINAL 2010 Economic Development Strategy€¦ · EDS\Reports\100826_Hepburn_1980_EDS_Economic...

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Hepburn Shire Council FINAL 2010 Economic Development Strategy December 2010 www.sedconsulting.com.au

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Hepburn Shire Council

FINAL 2010 Economic Development Strategy

December 2010

www.sedconsulting.com.au

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Contents

DISCLAIMER ............................................................................................................................. 6

ACKNOWLEDGEMENTS .......................................................................................................... 6

EXECUTIVE SUMMARY ........................................................................................................... 7

KEY RECOMMENDATIONS ..................................................................................................... 8

Industry and business ................................................................................................................................................. 8

Infrastructure and services ......................................................................................................................................... 9

Environment and resources ........................................................................................................................................ 9

Population and people ................................................................................................................................................ 9

Localities and communities ......................................................................................................................................... 9

Clunes .................................................................................................................................................................................... 10

Creswick ................................................................................................................................................................................. 10

Daylesford and Hepburn Springs ........................................................................................................................................... 10

Trentham ................................................................................................................................................................................ 10

Governance and networks ........................................................................................................................................ 10

CONCLUSION ......................................................................................................................... 11

INTRODUCTION ...................................................................................................................... 12

Overview of project region ........................................................................................................................................ 12

Capacity considerations ............................................................................................................................................ 13

Methodology and objectives ..................................................................................................................................... 14

POLICY AND STRATEGY ANALYSIS ................................................................................... 15

Local planning and policy ......................................................................................................................................... 15

ECONOMIC ACTIVITY OVERVIEW ........................................................................................ 16

Key learnings ............................................................................................................................................................ 27

SWOT ANALYSIS ................................................................................................................... 29

STRATEGY INTRODUCTION ................................................................................................. 31

INDUSTRY AND BUSINESS ................................................................................................... 32

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Economic diversification ........................................................................................................................................... 32

Statutory and land-use planning ............................................................................................................................... 32

Suitable office space ................................................................................................................................................. 33

Education, skills and workforce ................................................................................................................................ 33

INFRASTRUCTURE AND SERVICES .................................................................................... 33

Development infrastructure ....................................................................................................................................... 33

Information and communication technologies .......................................................................................................... 33

Transport connections .............................................................................................................................................. 34

Health, community and education services .............................................................................................................. 34

Resources and environment ..................................................................................................................................... 35

Population and people .............................................................................................................................................. 35

Localities ................................................................................................................................................................... 37

All localities ............................................................................................................................................................................ 38

Governance and networks ........................................................................................................................................ 38

RECOMMENDATIONS AND ACTION PLAN .......................................................................... 40

Industry and business .................................................................................................................................................... 40

Infrastructure and services ............................................................................................................................................. 44

Resources and environment .......................................................................................................................................... 47

Population and people .................................................................................................................................................... 48

Key localities: common themes ..................................................................................................................................... 50

Clunes .............................................................................................................................................................................. 52

Creswick .......................................................................................................................................................................... 53

Daylesford and Hepburn Springs .................................................................................................................................. 54

Trentham ......................................................................................................................................................................... 55

Governance and networks ............................................................................................................................................. 56

STRATEGY SUMMARY .......................................................................................................... 58

CONCLUSION ......................................................................................................................... 59

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APPENDIX 1: LOCAL GOVERNMENT REVENUE COMPARISONS ................................... 60

APPENDIX 2: STAKEHOLDER CONSULTATIONS .............................................................. 62

APPENDIX 3: INDUSTRY SECTOR DESCRIPTIONS ........................................................... 64

APPENDIX 4: KEY REFERENCES ........................................................................................ 73

Documents and literature .......................................................................................................................................... 73

Websites ................................................................................................................................................................... 74

APPENDIX 5: THINK TANK FRAMEWORK .......................................................................... 75

APPENDIX 6: REMPLAN ECONOMIC DATA ....................................................................... 76

APPENDIX 7: KEY ECONOMIC AND COMMUNITY INDICATORS ...................................... 85

APPENDIX 8: 2010 CENTRAL HIGHLANDS REGIONAL STRATEGIC PLAN SUMMARY 86

Figures

Figure 1: HEDS methodology framework .................................................................................................................... 14

Figure 2: Hepburn economic output (gross revenues) by sector ............................................................................... 17

Figure 3: % economic output by sub-sectors .............................................................................................................. 17

Figure 4: Employment figures by sector ...................................................................................................................... 18

Figure 5: % employment contribution by sub-sectors ................................................................................................. 18

Figure 6: Wages and salaries by sector ....................................................................................................................... 19

Figure 7: % contribution of wages and salaries by sub-sectors. ................................................................................ 19

Figure 8: Local sales by sector ..................................................................................................................................... 20

Figure 9: % contribution of local sales by sub-sectors ................................................................................................ 20

Figure 10: Local expenditure by sector ........................................................................................................................ 21

Figure 11: % contribution to local expenditure by sub-sectors ................................................................................... 21

Figure 12: Imports by sector ......................................................................................................................................... 22

Figure 13: % contribution to imports by sub-sectors ................................................................................................... 22

Figure 14: Exports by sector ......................................................................................................................................... 23

Figure 15: % contribution to exports by sub-sectors ................................................................................................... 23

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Figure 16: Value-add by sector..................................................................................................................................... 24

Figure 17: % contribution to value-add by sub-sectors ............................................................................................... 24

Figure 18: Value-add as a % of output by sector ........................................................................................................ 25

Figure 19: Visitor number by type 1999-2009 ............................................................................................................. 25

Figure 20: Average overnight stays comparison ......................................................................................................... 26

Figure 21: Comparison of export as % of output all sectors ....................................................................................... 28

Figure 22: Comparative SEIFA rankings ..................................................................................................................... 36

Figure 23: SEIFA map for Hepburn Shire .................................................................................................................... 36

Figure 24: Economic development strategy summary ................................................................................................ 58

Tables

Table 1: Tourism business profile comparison ............................................................................................................ 26

Table 2: SWOT analysis ............................................................................................................................................... 29

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Disclaimer

The Hepburn Economic Development Strategy has been prepared specifically for Hepburn Shire

Council the client. The Hepburn Economic Development Strategy and its contents are not to be

referred to, quoted or used by any party in any statement or application, other than Hepburn Shire

Council, without written approval from SED Consulting.

The information contained in this document has been gained from anecdotal evidence and research.

It has been prepared in good faith and in conjunction with Hepburn Shire Council. Neither SED

Consulting, nor its servants, consultants, agents or staff shall be responsible in any way whatsoever to

any person in respect to the Report, including errors or omission therein, however caused.

SED Consulting - Central and Western

Acknowledgements

SED Consulting gratefully acknowledges the time, ideas and information provided by Hepburn Council

officers, Hepburn business and community members and others associated with the Hepburn Economic

Development Strategy who assisted the .preparation of this report.

International Standards Certifications Lic: QAC/R61/0760

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Executive summary

The Hepburn Economic Development Strategy (HEDS) is an important, strategic framework for the

Council and the community which is intended to deliver a number of outcomes and assist to realise

important objectives. The HEDS supports positive and long-lasting engagement with and between

stakeholders and has captured aspirations and provides evidence-based, practical recommendations.

Considerations have been given to the drivers and influencers of economic development within

Hepburn Shire and the wider region. In addition, policy and strategy frameworks that come under the

auspice of Council, existing and emerging regional development structures and wider economic trends

have been integrated and referenced to ensure that the HEDS reflects the wider regional development

environment in which the HEDS will need to operate. In summary, the overall economic profile of the

region shows that:

� Hepburn has a reasonably diverse economic base built around agriculture, manufacturing, retail,

accommodation, cafes / restaurants, construction, property and businesses services and health and

education. No one sector dominates the economy such as manufacturing in Ballarat and Northern

Grampians. This provides Hepburn with some protection from economic downturn or reduced

performance in any one particular sector.

� The importance of the retail and accommodation, cafes and restaurants sectors in Hepburn

(broadly tourism related, does present some economic risk to the economy based upon the trends

within tourism markets, attraction and retention of skills, seasonality of activity and inter-sector

contributions that these sectors make to the local economy.

� In common with regional, state and national trends, it is anticipated that the health and community

services sector will be an important growth industry due to increased demand, particularly as the

population ages and the local population grows.

� There is some disparity between the employment numbers within sectors and the wages and salaries

generated by those sectors indicating a higher level of workforce casualisation and seasonality of

employment.

� Value-add by industry sectors provides a profile of the capabilities of sectors when value-add is

compared to both output (gross revenues) and workforce numbers. For example the

manufacturing sector in Hepburn has fairly low value add profile which tends to indicate that this

sector has is simply transformed and there are opportunities to develop value-add activities and

industries to increase the competitiveness of local business and industry.

� It will be important to create an environment that supports and sustains the key sectors of the

economy, and also identify ways to grow other sectors in the areas of local supply and buy

(including import replacement), export opportunities and increased value-add.

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The key principle of the HEDS is to increase prosperity within the region. The strategy aims to enhance

economic activity, reduce disadvantage, increase participation and build upon the sustainability

credentials of the region. The HEDS proposes that this can be achieved through the:

� Expansion of the local economy through the development and growth of existing businesses and

skills training and workforce development;

� Support of investment in infrastructure and assets underpinned by a robust planning framework;

� Identifying opportunities for developing new industries and entrepreneurial activity based on

competitive advantages and regional assets;

� Strengthening business development networks and processes; and

� Fostering partnerships and co-operative projects to address infrastructure gaps and create

innovative solutions to local issues and opportunities.

The HEDS has been developed around the headline themes of:

Industry and business

Infrastructure and services

Environment and resources

Population and people

Localities and communities

Governance and networks

Key recommendations

The following provides a snapshot of the key HEDS recommendations.

Industry and business

� Development and diversification opportunities exist within the agriculture, food supply and value-

add chains, business services, education and tourism sectors that build upon existing capabilities

and market trends;

� Increase and strengthen value-add and local supply chains within the local and regional economy;

� Enhance local planning frameworks around sustainable land and asset use;

� Indentify investment and development opportunities for light industrial and appropriate commercial

office space; and

� Enhance local education and training pathways.

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Infrastructure and services

� Facilitate workforce development and retention programs with the

health and education sectors;

� Advocate for priority projects under the Central Highland Regional

Transport Plan;

� Indentify opportunities for increasing community returns from

infrastructure projects;

� Advocate for improved ICT infrastructure and services and create

an ICT rich environment to support business and education capacities;

and

� Encourage sustainable development practices.

Environment and resources

� Encourage water wise developments;

� Facilitate the development of green energy industries and projects.

Population and people

� Assess workforce and employment trends and needs and support the development of local skills

and training programs; and

� Develop an affordable housing strategy and foster private and public sector partnerships to identify

innovative housing supply models.

Localities and communities

The overarching recommendations for all localities are;

� Support reviews of the status and

implementation priorities of community plans;

� Facilitate and encourage investments in

community main streets;

� Deliver land use master plans for communities;

� Enhance destination marketing and indentify

tourism product development opportunities;

and

� Encourage community group succession

planning and governance best practice.

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In addition to the above, the following opportunities have been identified for key population centres.

Clunes

� Progress the Clunes Interpretive and Community Centre priority project;

� Support and facilitate arts and cultural events and project development; and

� Review passenger rail and the provision of public transport options.

Creswick

� Identify the feasibility and processes for the establishment of a Creswick Secondary College;

� Support en facilitate arts and cultural project developments; and

� Partner wtih the University of Melbourne and other stakeholders on the development of forestry

strategy with program delivery to focus on Creswick.

Daylesford and Hepburn Springs

� Progress the enhancement of the main retail and restaurant precinct;

� Take a partnership approach to developing community assets and facilities; and

� Support the development a more diverse, sustainable tourism industry.

Trentham

� Enhance Trentham’s tourism potential by improving the tourism product based on natural and

heritage assets and increased accommodation options;

� Identify opportunities to support the development of horticultural activity; and

In partnership wtih local businesses, identify opportunities for increasing skills development and

employment opportunities for local young people.

Governance and networks

� Improve communication and engagement with

the local business and industry through regular

updates and briefings on economic and business

development matters;

� Encourage greater collaboration and efficiencies

of effort for community groups;

� Improve planning service delivery and

understanding of the planning process; and

� Assess opportunities and mechanisms for

strengthening Council revenue streams.

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Conclusion

The HEDS presents a range of strategies to guide sustainable economic development. It recognises that

Council and other community stakeholders have a range of roles and responsibilities and that best

outcomes are delivered through partnerships and understanding of local conditions and environments.

The strategy focuses on short, medium and long responses that have been integrated with

management and implementation recommendations. These align with regional plans and policies and

deliver a holistic framework for developing local prosperity and sustainable economic development.

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Introduction

The Hepburn Economic Development Strategy (HEDS) is an important, strategic framework for the

Council and the community which is intended to deliver a number of outcomes and assist to realise

important objectives. The HEDS supports positive and long-lasting engagement with and between

stakeholders and has captured aspirations and provides evidence-based, practical recommendations.

Considerations have been given to the drivers and influencers of economic development within

Hepburn Shire and the wider region. In addition, policy and strategy frameworks that come under the

auspice of Council, existing and emerging regional development structures and wider economic trends

have been integrated and referenced to ensure that the HEDS reflects the wider regional development

environment in which the HEDS will need to operate.

The HEDS will enable Council and communities of interest to focus on priorities and opportunities and to

create better understandings of what economic development means at a local and regional level. This

will also inform the clarification of roles and responsibilities. In summary, the HEDS delivers a clear

economic vision for Council and the community that will be implemented through integrated strategies

and supported by a governance framework.

Overview of project region

Hepburn Shire is located in central Victoria,

just over an hour from Melbourne. The City

of Ballarat adjoins the Shire to the west and

Bendigo is nearby to the north. Hepburn

Shire's geography is varied and the region is

renowned for its natural beauty and mineral

springs reserves. The region contains over

80 per cent of Australia's mineral springs.

These unique reserves are both important

geological and hydrological features and

are a major draw card for the many

thousands of visitors who visit the region.

The eastern part of the Shire is hilly with high rainfall levels and significant native forest areas. The western

part is characterised by rolling hills, medium to lower rainfall and broad acre farming land.

The total area of the Shire is 1,470 square kilometres. The population is approximately 15,000 (June 2006)

and has a healthy growth rate of over nearly 1% per annum. The population is projected to reach

17,000 by 2021. The Shire's main townships are: Daylesford and Hepburn Springs with 3,074 residents;

Creswick with 3,064 residents; Clunes with 1,026 residents and Trentham with 924 residents. The

remaining residents live in the many small towns and rural areas across the Shire.

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Capacity considerations

Hepburn Shire has a reasonably dispersed population with population density of 9.7 people/km2. This

compares to Macedon Ranges 22.9 people/km2, Mitchell Shire 11.2 people/km2, Mount Alexander 11.5

people/km2 and Murrundindi of 3.7 people/km2. This level of population dispersal presents some

challenges for Council and other stakeholders in terms of service provision and asset and infrastructure

management. In addition, a key issue for rural councils is their resource capacity to undertake and fund

projects and programs and maximise revenues. Whelan (2010) identified 18 small rural councils who ‘do

not have the capacity to adequately service their communities’ (pg 2) of which is Hepburn is one.

Whelan assessed local government financial sustainability using the following environmental factors

which are external in origin and not under direct council control:

� Revenue:

o Capacity of the community to pay rates, charges, fees, fines and other revenue; and

o Assistance provided by governments in the form of tied and untied recurrent grants.

� Costs:

o Size of the population:

o Population sparsity;

o Dispersion of the population into townships and rural areas; and

o Remoteness of the municipality from major population centres.

Hepburn fared the best of the 18 councils in terms of additional, annual operating requirements of $31/

head of population when compared to the average cost across the 18 councils of $175/head of

population. However the Hepburn figure does equate to approximately $500k of additional revenues

that are needed to enable Hepburn to provide adequate levels of services and facilities.

Murrindindi Shire completed a number of comparisons of revenues across rural councils as part of its

2010-2014 Strategic Resource Plan. Key comparison charts are presented in Appendix 1: Local

Government revenue comparisons. These comparison show that Hepburn Shire raises nearly 50% of its

revenue from local rates which is on par for smaller rural shires, 23.7% of revenues from government

grants (lower than comparison average of 36%), and 6.2% of revenues from fees and charges, also

below comparison average of 9.3%.

In summary, these ‘sustainability’ challenges have been considered for the HEDS and council namely:

� Presenting affordable strategies that can still drive economic development;

� Enable council and other stakeholders maximise revenue and funding streams; and

� Provide sufficient resources to enable the implementation and management of recommendations.

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Methodology and objectives

The HEDS was developed using an agreed project and communication plan which detailed the

activities for each stage, the stakeholders, outcomes and overall objectives. The HEDS methodology is

presented in Figure 1.

Figure 1: HEDS methodology framework

A consultation list is provided in Appendix 2: Stakeholder consultations and a literature and document

reference listing in Appendix 4: Key references.

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Policy and strategy analysis

A review was undertaken of key regional and local policy relating to economic development. A

summary analysis of local policy is provided here and a summary of the 2010 Central Highlands Regional

Strategic Plan is provided in Appendix 8.

Local planning and policy

The 2009-2013 Council Plan is reflective of the key themes and responses as presented in the Regional

Strategic Plan and the Community Economic Development Strategy including statements around:

� Managing population growth and related infrastructure needs;

� Attracting value adding investment and improving telecommunications;

� Recognising transport challenges relating to freight, rural road networks and public transport;

� Delivering a reliable water supply that is of appropriate quality for residential and industrial purposes;

� Reducing unemployment and underemployment and developing the skills base of young people;

� Developing new, innovative industries that will be competitive on world markets;

� Develop an investment plan for the region as a whole; and

� Increasing employment opportunities in small communities to tackle disadvantage.

The Community Economic Development Strategy completed in 2009 also reflects the presented strategy

and policy direction under three key themes:

� Economic activity – maintain and enhance the various levels of economic activity occurring across

the Shire; reduce the quantum of funds leaving the Shire by residents purchasing goods and services

in outlying locations; and increase ‘export’ sales of local products and services to businesses and

organisations outside the Shire;

� Employment – reduce the average level of unemployment in the Shire; generate employment

creation opportunities through entrepreneurship and business expansion; and address specific

pockets of unemployment – relating to particular communities in the Shire or a particular

demographic groups (for example young people); and

� Entrepreneurship – enhance and support commercial and community entrepreneurship within the

Shire both in terms of creating new businesses as well as expanding and retaining existing businesses;

support business owners within specific industry groups to develop entrepreneurial solutions to

challenges and problems facing their industry; and build the capacity of individuals and groups in

the Shire to think and work at an entrepreneurial level.

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Economic activity overview

Hepburn Shire has a reasonably diverse economic base built around agriculture, manufacturing, retail,

accommodation, cafes / restaurants, construction, property and businesses services and health and

education. No one sector significantly dominates the economy such as manufacturing in Ballarat (34%

of total output) and the Northern Grampians (21% of total output). This provides Hepburn with some

protection from economic downturn or reduced performance in any one particular sector. However, it

is recognised that tourism is a major driver of the accommodation, cafes and restaurants and retail

sectors. It should be noted that tourism is not defined as a sector within ABS ANZSIC data and statistics.

An analysis of the Hepburn economy was undertaken using the REMPlan economic modelling system

developed by La Trobe University in Bendigo. REMPlan is widely used by regional councils and state

government agencies to assess economic activity and economic supply chains.

Data is constructed around a range of data sets including ABS, National Account and Victorian Gross

State Product Figures and are not taken from company returns. There is a degree of data estimation

but REMPlan have developed the model where these estimations are based on a number of factors

specific to a region. Detailed REMPlan data is presented in Appendix 6: REMPlan economic data.

Using REMPlan data, the primary industry drivers of the Hepburn economy listed as a % of total

economic output by the major sectors are:

� Manufacturing (16.9%);

� Agriculture, forestry and fishing (12.5%);

� Accommodation, cafes and restaurants (11.3%);

� Construction (11%); and

� Property and business services (10.1%).

Secondary industry sector drivers are:

� Retail trade (8.3%);

� Health and community services (6.7%);

� Education (4.8%); and

� Wholesale trade (4.3%).

An ABS description of each of these key industry sectors is provided in Appendix 3: Industry sector

descriptions.

The following graphs provide a profile of the Hepburn based on two data structures. The first graph in

each section provides a profile of the economy based up on the main 17 industry sectors as defined by

ABS and used by REMPlan. The other graph show a further breakdown of the economic profile based

upon the second level of industry sectors provided by REMPlan which provides data on 35 sub-sectors.

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REMPlan data (which does not

include tourism as a specific

sector) shows that

cumulatively, the sectors within

manufacturing generate the

highest total output (gross

revenues) within the Hepburn

economy. Manufacturing

includes food, wine, wood

products, textiles, metals,

equipment and other

manufactured products. The

generally higher cost of

finished products and volumes

will influence the overall higher

revenues this sector produces.

Figure 2: Hepburn economic output (gross revenues) by sector

However, when analysis is made the next level of industry sectors, it can be seen that by percentage

contribution, agriculture, accommodation, cafes and restaurants, construction, property and business

services and the retail, are the largest contributors to the Hepburn economy as shown in Figure 3. The

analysis presented in both Figure 2 and Figure 3 shows the manufacturing as whole, contributes the most

in dollar terms to economy, but when manufacturing is split into the next level of 16 manufacturing sub-

sectors, other industry sectors contribute more in percentage terms.

Figure 3: % economic output by sub-sectors

$0

$20

$40

$60

$80

$100

$120

$140

Economic output (gross revenue) of all sectors ($m)

Total value of Hepburn economy - $827.1m

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Largest employment sectors are

retail, accommodation, cafes and

restaurants, agriculture and health

and community services. The total

workforce for Hepburn Shire from ABS

2006 figures is 3,537 persons.

However, it should be noted that the

latest workforce participation figures

(June 2010) from the Department of

Education, Employment and

Workplace Relations for Hepburn

Shire show that 7,605 people were

part of the labour force and that of

these, 601 were unemployed (7.9%).

This compares to unemployment

rates in the same period for Mount

Alexanders of 7.1%, Macedon

Ranges 3.2%, Mitchell Shire 5.8% and

Murrindindi 5%.

Figure 4: Employment figures by sector

Figure 5: % employment contribution by sub-sectors

0

100

200

300

400

500

600

Employment by sector - ABS 2006

0%

2%

4%

6%

8%

10%

12%

14%

16%

Sub-sector employment as % contribution to workforce Jun 2010

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December 2010

Health and community services

generate the most wages and

salaries followed by education.

This reflects the generally

higher levels of qualifications

and professional and technical

nature of the workforce within

these two sectors and

associated higher wage levels.

Figure 6: Wages and salaries by sector

When a comparison of wages is made against employment numbers, it is can be seen that the higher

value employment sectors are health and community services, education, property and business

services, accomodation, cafes and restaurants and retail.

Figure 7: % contribution of wages and salaries by sub-sectors.

$0

$5

$10

$15

$20

$25

$30

$35

$40

Wages and salaries by sector ($m)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

% contribution of wages and salaries by sub-sectors Jun 2010

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December 2010

Property and business services

sell the most within the local

economy. Sales by the sector

are mainly within the sector

and to the retail,

accommodation, cafes and

restaurants and the

construction sectors.

Figure 8: Local sales by sector

Figure 9: % contribution of local sales by sub-sectors

$0

$10

$20

$30

$40

$50

$60

$70

Local sales by sector ($m)

0%

5%

10%

15%

20%

25%

30%

% contribution of local sales by sub-sectors Jun 2010

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December 2010

The construction sector buys

the most products and

services within the local

economy particularly from

within the sector and also

manufacturing and property

and business services. The

construction sector includes

building and construction,

building construction services

and trades.

Figure 10: Local expenditure by sector

Figure 11: % contribution to local expenditure by sub-sectors

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Local expenditure by sector ($m)

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The manufacturing sector as a

whole is the largest importer of

products and services into the

Hepburn region in terms of

total value. However, when

analysis is made of next level

sub-sectors, as below it is seen

that accommodation, cafes

and restaurants, construction

and agriculture are the highest

importers as a percentage of

total imports.

Figure 12: Imports by sector

Figure 13: % contribution to imports by sub-sectors

$0

$10

$20

$30

$40

$50

$60

$70

$80

Imports into the region by sector ($m)

0%

2%

4%

6%

8%

10%

12%

14%

% contribution to imports by sub-sectors Jun 2010

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December 2010

The agricultural sector exports

the most product out of

Hepburn region, followed by

manufacturing and the

accommodation, cafes and

restaurants sectors. Tourism

dollars spent within a region are

classified as exports. There

would appear to be tangible

opportunities to increase export

activity within the construction,

property and business services,

education and transport and

storage sectors.

Figure 14: Exports by sector

Figure 15: % contribution to exports by sub-sectors

$0

$10

$20

$30

$40

$50

$60

$70

$80

Exports from Hepburn by sector ($m)

0%

5%

10%

15%

20%

25%

30%

% contirbution to exports by sub-sectors Jun 2010

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December 2010

Agriculture adds the most

value to products and

services followed by health

and community services.

Value-add is economic value

added by each industry

sector in a defined region

and is calculated by

subtracting local expenditure

and expenditure on regional

inputs from the sector output.

Figure 16: Value-add by sector

Figure 17: % contribution to value-add by sub-sectors

$0

$10

$20

$30

$40

$50

$60

Value-add by sector ($m)

0%

2%

4%

6%

8%

10%

12%

14%

16%

% of value-add by sub-sectors Jun 2010

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There would appear to be

opportunities to increase value-

add particularly within the

manufacturing and construction

sectors. This can be achieved

through reduction of imported

products / services by these

sectors, creating higher value

employment and increasing

efficiencies and innovation.

Figure 18: Value-add as a % of output by sector

The following data is taken from Tourism Victoria data year ending December 2009 and is for the

Daylesford Macedon Ranges tourism region.

In line with domestic tourism

trends, the region has

experienced declines in

overnight visitors and visitor

nights but a slight increase in

daytrip visits. International

visitors show a sustained

increase in numbers.

Figure 19: Visitor number by type 1999-2009

The following data is taken from Tourism Australia figures from June 2007 and relate to the Hepburn Shire

local government area only.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Value-add as a % of output

0

200

400

600

800

1000

1200

1400

1600

1800

Domestic overnight

visitors (000s)

Domestic visitor

nights (000s)

Domestic daytrip

visitors (000s)

International

overnight visitors

(00s)

Visitor numbers by type 1999-2009

1999

2008

2009

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December 2010

Local yield overnight

stays are lower that state

and national averages

which would indicate

opportunities to increase

yield through longer

stays in the region.

Figure 20: Average overnight stays comparison

Table 1 provides a profile of tourism business types in Hepburn Shire based on number of employees.

The region has slighter higher number of non-employing businesses compared to state and national

averages slight lower numbers of employing businesses compared these 2 averages.

Tourism businesses Number % State average % National average %

Non-employing 255 57% 51% 50%

Micro(1-4 employees) 114 26% 27% 27%

Small (5-19 employees) 54 12% 15% 16%

Medium to large (20+ employees) 21 5% 7% 7%

Total businesses 444 100% 100% 100%

Table 1: Tourism business profile comparison

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Local State National

Average stay (nights). 3-4 year average to June 2007

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December 2010

Key learnings

� Hepburn has a reasonably diverse economic base built around agriculture, manufacturing, retail,

accommodation, cafes / restaurants, construction, property and businesses services and health and

education. No one sector dominates the economy such as manufacturing in Ballarat and Northern

Grampians. When analysis is made of the top performing sectors under collated economic

performance indicators, the key drivers of the local economy are:

o Agriculture Forestry and Fishing;

o Accommodation, cafes and restaurants;

o Construction;

o Property and business services; and

o Manufacturing.

� This broad-based economic diversity provides Hepburn with some protection from economic

downturn or reduced performance in any one particular sector and should be the key focus areas

of economic development support. In addition, the important role and growth profile presented by

health and education sectors should also have a mojor economic focus within the region.

� The importance of the retail and accommodation, cafes and restaurants sectors in Hepburn

(broadly tourism related), does present some economic risk to the economy based upon the trends

within tourism markets, attraction and retention of skills, seasonality of activity and inter-sector

contributions that these sectors make to the local economy.

� In common with regional, state and national trends, it is anticipated that the health and community

services sector will be an important growth industry due to increased demand, particularly as the

population ages and the local population grows.

� There is some disparity between the employment numbers within sectors and the wages and salaries

generated by those sectors indicating a higher level of workforce casualisation and seasonality of

employment and level of skills required or employed within sectors and the value of those skill sets.

� Apart from the agriculture, accommodation, cafes and restaurants and manufacturing sectors,

there is limited export activity. Export growth should be sustained and where possible, diversified

within these sectors to retain market share and competitiveness. In addition export growth

opportunities may exist for the construction, property and business services, education and transport

and storage sectors. This sectoral growth opportunity is supported by analysis made of the

percentage of exports to output by the major sectors as presented in Figure 21.

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December 2010

Figure 21: Comparison of export as % of output all sectors

� Value-add by industry sectors provides one method or measuring the capabilities of sectors when

value-add is compared to both output (gross revenues) and workforce numbers. For example the

manufacturing sector in Hepburn has fairly low value add profile which tends to indicate that this

sector has is simply transformed and there are opportunities to develop value-add activities and

industries to increase the competitiveness of local business and industry.

� It will be important to create an environment that supports and sustains the key sectors of the

economy, and also identify ways to grow other sectors in the areas of local supply and buy

(including import replacement), export opportunities and increased value-add.

0%

10%

20%

30%

40%

50%

60%

70%

80%

Export as a % of output by sector Jun 2010

2010 average export to output %: 33.1%

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December 2010

SWOT analysis

The following SWOT analysis was developed from outcomes of the stakeholder consultations, key

discussion items captured at the Think Tank Summit and the economic and strategy reviews. The SWOT

presents a summary of the main issues and opportunities and the implications of each. The

opportunities identified have been used to develop some of the core elements of the final HEDS.

Table 2: SWOT analysis

Strengths

� Proximity and access to key population centres allowing access to markets and sources of new residents.

� Natural and built environment contributing to the liveability attractiveness of the region.

� Good health and community services that broadly meet the needs of communities.

� High-value, productive agricultural land that supports existing and potential development activities.

� A number of pro-active community groups that drive community projects and develop community aspirations.

� Creative and entrepreneurial people who contribute to the socio-economic fabric of the region.

� Positive business confidence across a number of sectors which presents opportunities to encourage business growth and facilitate investment that address growth needs.

� A widely profiled and supported tourism industry that is currently attracting significant funding and investment.

� Emerging quality food production and produce and recognition as an important food bowl in Victoria.

� Education frameworks including private and public primary, secondary and university institutions.

� Increased awareness and understanding of localisation and the importance of place making for communities.

‘The term localisation has been used to describe the process of concentrating production of goods nearer to their end users, rather

than wherever the lowest costs are. The idea is to cut down on environmental and other external costs that can occur with the extra

transportation and regional specialisation that globalisation encourages’ - http://www.wordiq.com/definition/Internationalization

Weaknesses

� Infrastructure and land use planning impacting on development projects and strategic planning.

� Availability of affordable housing stock to support current and future housing needs of residents.

� Low focus on non-tourism business and industry leading to a gap in development activities.

� Fragmented business networks and frameworks creating a confusion of activities and increased disengagement.

� Lack of industrial facilities and appropriate commercial office space restricting investment and growth of businesses.

� ICT infrastructure constraining online and telecommunication based activities for communities and business.

� Prosperity and inclusion opportunities for parts of the community creating areas of social and economic disadvantage.

� Lack of child care facilities and services reducing workforce participation.

� Agricultural land holdings structures reducing access for new farming ventures.

� Local services and facilities for local people not meeting residents’ social and economic needs.

� Increased ‘exclusivity’ focus of the tourism industry that has not encouraged family-based other market

segment attraction.

� Gaps in funding capacity and service provision in HSC and community frustration with processes constraining some investment and development.

� Infrastructure renewal and upgrade capacity of HSC based on funding and revenue constraints.

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Opportunities

� Micro and home based business development within new economy businesses including investment attraction for business incubators and appropriate commercial office development. New economy businesses are described as being those that have high knowledge and innovation expertise and operate particularly within the business services, IT, finance and scientific and research sectors.

� Agribusiness, food value-add activities, development of the food bowl region and sustainable forestry industries to build on these identified regional strengths.

� Improved engagement by HSC and improved internal processes to support economic development and associated investment.

� ICT rich environment and technology advanced infrastructure to encourage education, training and business development.

� Increased dispersal of tourism from Daylesford to support tourism development in other centres.

� Eco, agribusiness and family tourism development as potential market opportunities to diversify tourism product and reduce risk.

� Improved education links between primary, secondary and university organisations to support the

establishment of areas of education and training excellence.

� Economic development based on PPP and community co-operative models to support investment in core infrastructure and community assets for economic and social benefit.

� Development and diversification of the local economy based on identified strengths, increased value-add and business and industry innovation to provide sustainable growth through getting prosperous, not just bigger.

� Investment in community and tourism recreation infrastructure and services to provide community benefits and assets through tourism.

� Locality based infrastructure and economic development frameworks that recognise the different drivers and influences of communities to create a best fit for each community.

� Development of the green economy, including energy and water self-sufficiency to align to the region’s profile of green credentials.

� Greater utilisation of existing creative and entrepreneurial skills and knowledge within the population to increase employment participation and harness local creative thinking around local solutions.

Threats

� Communities becoming satellite centres due to transient population and level of non-residents with potential loss of local employment opportunities and community services being aggregated into larger centres.

� Imbalances in community prosperity reducing community cohesion and areas of community

disadvantage.

� Capacity to create new jobs following loss of traditional industries impacting on sustainable population growth and retention of residents.

� Resistance to change impacting on investment and business growth particularly in the areas of ICT, green energy and the sustainable use of natural resources.

� Some negativity towards the tourism industry creating some community conflicts.

� Resistance to industry that use natural assets reducing opportunities for the development of new industries.

� Increased demands on health and community services particularly from an ageing population leading to reduced community well-being.

� Sustainability of the tourism industry that is subject to a number of external forces and trends beyond the control of local operators and government bodies.

� Regional and local road networks and upgrades that my potentially impact on sustaining and growing local business and industry including agriculture and tourism.

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December 2010

Threats cntd....

� Community and volunteer fatigue impacting on the sustainability and capacity of local community driven initiatives and projects.

� Localisation of issues /opportunities that may create negative competition for funding and investment.

� Loss of skills from business, communities and HSC due to broader workforce competition, employment seasonality and transient populations, reducing the capacity of business and industry to grow and to adapt to changing economic drivers.

� Lack of transition, diversification planning and readiness within the agricultural sector with reliance in some sectors on limited supply chains and markets.

� Reduced access to agricultural land for high value production that could meet increased demand.

Strategy introduction

The key principle of the HEDS is to increase prosperity within the region. The strategy aims to enhance

economic activity, reduce disadvantage, increase participation and build upon the sustainability

credentials of the region. The HEDS proposes that this can be achieved through the:

� Expansion of the local economy through the development and growth of existing businesses and

skills training and workforce development;

� Encouragement of investment in support infrastructure and assets supported by a robust planning

framework;

� Identifying opportunities for developing new industries and entrepreneurial activity based on

competitive advantages and regional assets;

� Strengthening business development networks and processes; and

� Fostering partnerships and co-operative projects to address infrastructure gaps and create

innovative solutions to local issues and opportunities.

The HEDS has been developed around the overarching themes of:

� Industry and business;

� Infrastructure and services;

� Environment and resources;

� Population and people;

� Localities and communities; and

� Governance and networks.

Business confidence appears relatively positive and this environment of confidence coupled with a

focus on building local, sustainable prosperity from existing and potential competitive advantages,

provides a strong foundation for facilitating industry growth and development initiatives among local

and regional investors.

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December 2010

Industry and business

Economic diversification

There has been a loss of ‘traditional’ industries over the past decade or so and a significant growth in

tourism and leisure related industries. Tourism has become a major contributor to the local economy

and can be a driver of investment in other business activity and infrastructure. There is a concern that

tourism has created an ‘imbalanced’ economy and that increased focus should be applied to other

industries and businesses sectors particularly in relation to new markets, diversification, innovation and

local supply chains.

Tourism is recognised as a significant contributor and catalyst for economic activity in the region. The

sector has developed strong product and profile within high-value tourism markets mainly concentrated

in Daylesford and Hepburn Springs. In order to reduce market risk, the development of more a diverse

and sustainable tourism product across the region is proposed. This includes tourism product around the

natural environment, family-orientated tourism, arts and culture, food and environmental sustainability.

The development of a diverse agribusiness

sector is a strategic opportunity for the region

including high value, niche production, organic

farming and associated food manufacturing

and support services.

Sustainable, economic use and development

of natural and environmental assets in the

region should be identified. This includes

forestry management, development of green

energy initiatives and including localised

projects that deliver direct benefits back to

local communities and business.

It is proposed the economic diversification of the economy should be based upon local and regional

strengths and the creation and support of robust local supply and value chains.

Statutory and land-use planning

The attraction of investment and sustaining agricultural activity needs to be supported by a robust land-

use planning framework. Strategic planning needs to be undertaken to identify land suitable for light

industrial development in most localities to support the retention and growth of existing businesses and

attract new investment. In addition, the protection of high-value agricultural land from inappropriate

development and a review of sub-division regulations are seen as important actions to support the

development of agribusiness activity. Improvements to statutory planning processes are also viewed as

being a priority consideration for Council.

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December 2010

Suitable office space

The development of small to medium sized professional business services is constrained by a lack of

suitable office and commercial office space in most locations. In addition, the capacity of home-

based businesses to grow and expand is also constrained by this lack of commercial space. The

development of business incubator facilities and larger office space is seen as a priority, strategic

opportunity to support the growth of high value business sectors which provide important support

services to the local economy and externally. Options for co-locating these developments with child-

care facilities may also be an investment opportunity.

Education, skills and workforce

Many businesses cited the lack of local skills and training opportunities within the region as a major

workforce issue. There appears to be little engagement between businesses, training providers and

local residents on developing the skills businesses are stating they require. Many businesses import skills

from outside of the region which creates of level of workforce turnover and important skills retention

within businesses. Medium to long-term future workforce provision within key service sectors particularly

health, community services and education are emerging issues for sustaining these services at their high

level within communities. The ageing of the population and the transient profile of the population will

also impact on service delivery and planning within these sectors.

The region provides or has access to range of high quality education from primary through to university.

There are opportunities to enhance the linkages and pathways between the sector and businesses to

develop the skills and learning required to support current and future business and economic activity.

The region can support the development of areas of expertise within education relating to agribusiness,

forestry and sustainability.

Infrastructure and services

Development infrastructure

The cost of infrastructure connections and gaps in development infrastructure are potential barriers to

population growth within some localities. In addition, sustainable development policy statements such

as installation of water efficiency systems and waste sewerage management systems seem to be

lacking within the local planning scheme. In addition, some communities would like to see the

extension of the natural gas network. As mentioned previously, land-use planning frameworks for

communities are also seen as a development priority for Council to address.

Information and communication technologies

There is variable access to core information and communication infrastructure and services across the

region with businesses citing poor internet and mobile phone access as barriers to industry growth,

market access and wider investment attraction.

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December 2010

This access issue to ICT infrastructure and services should be subject to an ICT audit to identify areas of

critical need and to ensure that the region benefits from the roll-out of the National Broadband Network.

There are community concerns that if technology based issues are not addressed, technology gaps will

widen impacting on business activities and reduce the uptake of innovative technologies and related

processes. In addition, expectations to be able to access ICT services by current and future residents

will not be met, reducing the liveability attractiveness of the region.

ICT will also be important mechanism for increasing the range and reach of education including

expanded curriculums and for providing the desired linkages between providers across all levels of

education. Hepburn has a competitive opportunity to leverage education development from its

existing base of providers in the region and ICT will be a key enabler for this to occur.

Technology infrastructure is also vital for business development and investment and an ICT rich

environment can significantly contribute to business best practice, production efficiencies and market

access. Community resistance to the installation of ICT infrastructure could be mitigated by identifying

innovative models for delivering return benefits to communities.

Transport connections

Hepburn has reasonable, indirect access to key infrastructure routes in the region but there are a

number of road network issues and black spots which have been identified as priority projects for

upgrade under the Central Highlands Regional Transport Plan. These projects if funded will support

improved movement of freight (in particular agricultural produce) and better transport amenity for

residents and visitors alike. Like many regional and rural council, Hepburn faces the challenge of having

access to sufficient funding to invest in asset management, particularly road infrastructure which is

regarded as being in need of significant improvement in some areas.

Health, community and education services

Health and community service provision in the region is regarded as generally being very good and

meeting the needs of residents and visitors. There is good to access to services within the region as well

as additional, expert services and facilities in the neighbouring regional centres of Ballarat and Bendigo

and in metropolitan Melbourne if required.

Key issues facing the provision health and community services include the severe shortage of child care

provision, youth services and facilities and psychiatric and mental health services. These services are

important contributors not only to the well-being of the community but also to overall liveability

attractiveness and as contributors to workforce development in the region. Appropriate service

planning is also emerging as an issue for the sector influenced by the sporadic influx of visitors, the level

of non-permanent residents in the region and an ageing population.

The additional workforce requirements of the sector to meet the anticipated increased demand for

health and community services due to a growing and ageing population will need to be addressed.

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This will create challenges for the sector as its own workforce ages and the competition for health

workers across the industry increases.

Education provision in the region is also regarded as being very good with primary, secondary and

university options available. Like health, a key issue for the education sector is an ageing workforce and

in some areas, reducing numbers of families with children, although it is believed that school

participation rates have stabilised in recent years. A Rural Learning Summit held in 2010 identified some

key opportunities for education development in the regions including enhanced leadership, workforce

capacity, 21st century curriculum and sector partnerships and clusters.

Resources and environment

Water supplies, security and quality are

priority concerns for the region. The good

rains experienced during 2010 will provide

some relief for communities in relation to

these water issues, but it can be anticipated

that good water management and

planning will remain a long term

consideration for the region. In addition,

green energy systems that complement the

natural assets of the region and improved

waste management by the community are

also regarded as development opportunities. Green energy can be described as any source of power

that is sustainable and not excessively harmful to human health or the environment. A strict definition

would include only water, wind and solar power. A more expansive definition would include nuclear

power, biofuel and biogas.

Population and people

There has been a loss of ‘traditional’ industries in the region over the past decade, with a significant

growth in tourism and leisure related sectors. This has changed the employment profile and structure in

the region with less full-time, permanent positions particularly for men and an increase in more casual,

seasonal work particularly for women. This has also led to increased churn within employees particularly

within tourism, hospitality and retail.

Consultations also raised the issue of socio-economic disadvantage and disparities within the region. A

review of ABS data relating to socio-economic profiles shows that Hepburn Shire has a fairly low 2006

Index of Relative Socio-Economic Advantage and Disadvantage (SEIFA) ranking (29) when compared

to other ‘like’ Councils with ratings as shown in Figure 22. Figure 23 show a SEIFA map of Hepburn Shire

which indicates pockets of higher level disadvantage within certain communities and localities.

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SEIFA uses a broad definition of relative socio

material and social resources, and their

provides a summary of the socio-economic conditions within geographic areas under four indexes:

� Index of Relative Socio-economic Disadvantage

disadvantage, such as low income, low educational attainment, unemployment, and dwellings

without motor vehicles.

� Index of Relative Socio-economic Advantage and Disadvantage

values) to disadvantage (low values) which is deriv

advantage and disadvantage, like household with low income and people with a tertiary

education.

� Index of Economic Resources: focuses on Census variables like the income, housing expenditure

and assets of households.

0

10

20

30

40

50

60

70

Macedon Ranges

Hepburn Shire Council 2010 Economic Development Strategy

Regional Development\Hepburn Shire Council\Hepburn Economic Development Strategy_Final Draft_v2.docx

December 2010

Figure 22: Comparative SEIFA rankings

Figure 23: SEIFA map for Hepburn Shire

EIFA uses a broad definition of relative socio-economic disadvantage in terms people's access to

material and social resources, and their ability to participate in society. Taken from Census data, SEIFA

economic conditions within geographic areas under four indexes:

economic Disadvantage: is derived from Census variables related to

sadvantage, such as low income, low educational attainment, unemployment, and dwellings

economic Advantage and Disadvantage: a continuum of advantage (high

values) to disadvantage (low values) which is derived from Census variables related to both

advantage and disadvantage, like household with low income and people with a tertiary

: focuses on Census variables like the income, housing expenditure

Macedon Ranges Murrindindi Mitchell Mount Alexander Hepburn

2006 SEIFA ranking (out of 79)

Page 36 of 88

in terms people's access to

Taken from Census data, SEIFA

economic conditions within geographic areas under four indexes:

: is derived from Census variables related to

sadvantage, such as low income, low educational attainment, unemployment, and dwellings

: a continuum of advantage (high

ed from Census variables related to both

advantage and disadvantage, like household with low income and people with a tertiary

: focuses on Census variables like the income, housing expenditure

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� Index of Education and Occupation: includes Census variables relating to the educational and

occupational characteristics of communities, like the proportion of people with a higher

qualification or those employed in a skilled occupation.

It is believed the employment shift has had impacts on household incomes and the capacity of resident

households and their families to live and work in the region. However conversely, some businesses

indicated that they employ workers from outside of the region in order to access the necessary skills.

This would indicate a skills gaps issue for the region rather than skills shortages. This presents opportunities

to look at working with industry, business and training / education providers to support skills retraining

and transition programs for local residents in particular.

A recurring issue for current and future residents is the availability of the affordable housing and access

to quality rental accommodation. Business operators cite this as having impacts on their ability to

attract and retain skilled workers and some communities feel this is an issue that reduced their capacity

to attract and retain new residents and families. A major contributing factor to this housing shortage

has been the attractiveness of the region for people to buy second homes or and / or week-enders and

the success of the tourism sector which is believed to have also increased land and house prices.

Hepburn has an estimated 34% of rate payers not permanently resident in the region, a high proportion

when compared to a number of other municipalities. This non-resident population creates planning

issues in terms of community service provision, vitality of local communities and general social cohesion.

Many communities in Hepburn have developed community plans supported by Council. Progress of

plans and development achievements should be regularly reviewed, and plans updated to ensure

ongoing participation and interest by communities in their local issues and opportunities and to assist

Council with project and funding management systems.

Localities

The HEDS has considered opportunities for

economic development in key localities

namely Clunes, Creswick, Daylesford and

Hepburn Springs and Trentham. These

localities represent approximately 55% of

the population.

There are some specific economic drivers

of each of these communities such as

location, connections with other regions,

resident businesses and organisation,

community projects and community

development groups. The HEDS presents strategies that apply to all communities as well as some

defined opportunities for each locality.

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All localities

The overarching recommendations for all localities are;

� Support reviews of the status and implementation priorities of community plans;

� Facilitate and encourage investments in community main streets;

� Deliver land use master plans for communities;

� Enhance destination marketing and indentify tourism product development opportunities; and

� Encourage community group succession planning and governance best practice.

Governance and networks

Economic development activities are

developed and implemented under a

range of governance structures and local

and regional networks. These include

policies and strategies from all levels of

government, community development

plans, representative sector organisations

and community development groups.

Local governments are increasingly

working more closely and collaboratively

with their communities on the

identification of priority issues and

opportunities and offer a wide range of support, leadership and advocacy. In addition, they

endeavour to provide dedicated resources to create an environment that fosters economic

development, facilitate business investment and collaboration and provide a broad range of business

development assistance to businesses and organisations.

Councils can foster and facilitate economic development by:

� Ensuring their planning scheme reflects and supports their economic and community development

aspirations;

� Advocating for funding to undertake key infrastructure investments recognising that this is a highly

competitive funding environment;

� Providing information and assistance on business development programs and funding; and

� Developing and encouraging strong local and regional partnerships.

A number of key issues and opportunities have been identified to strengthen the governance structures

and local networks in the region. These include:

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� More clearly defining the role of Council in economic development activities and providing

adequate resources to enable more proactive and strategic service delivery;

� Improvements to statutory planning frameworks and development of a better understanding of

planning processes by business and investors;

� Improved information flow between Council and communities of interest including data and

statistics, local policy and strategy and the ‘good news’ stories;

� Reviews of revenue streams including local rates and possible fees for services;

� Reducing duplication of effort and supporting strategic planning processes for community

development groups; and

� Assisting community development groups to define their role purpose and include them in Council

activities when appropriate or beneficial to do so.

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Recommendations and action plan

The following strategic plan provides for a range of integrated actions that deliver a robust response to the key issues identified. Wtih regard to

implementation, short means within 3 years, medium 3-5 and long term 5+ years. Estimated costs are inclusive of possible funding. Council’s

role has been defined as R: Responsibility, A: Advocacy , P: Partnership and F: Facilitation. Actions are also referenced against objectives in the

Council Plan.

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Industry and business

1

Undertake regular monitoring of

economic activity to identify trends

and issues within and between

sectors to create a better

understanding of local and regional

supply and value chains and identify

tangible opportunities for import

replacement.

Provide reports on economic activity

to industry and business to assist with

business planning and investment

decisions.

Identify a range of key, credible data sources that

relate to economic, development, investment and

population planning, and develop a structure for

analysis and reporting.

Consider investment in an economic modelling system

that provides information on trends, sector activity and

allows for local analysis and forecasting.

Develop a schedule and management system for the

provision of information to industry and business in the

region and provide an annual economic update

forum in the region.

High Short Up to $8k

per year

21

25

35

2

In partnership with key stakeholders

(DPI, CHAF, local agricultural

groups), identify funding and

programs to support the

diversification and strengthening of

the local agribusiness sector.

Complete an audit of agricultural production in the

Hepburn region including mapping of land-use,

organic land and landholdings. Identify current and

future production potential, opportunities for

diversification and improved and sustainable farming

activities and incorporate into an agribusiness strategy.

High Short to

medium $30k

26

27

33

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Industry and business cntd....

3

In partnership with key stakeholders

(DPI, CHAF, local agricultural groups),

identify funding cntd....

Liaise with Department of Primary Industries to

encourage local participation in their value-chain

development program and identify sector-wide value-

chain enhancement opportunities from program

outcomes.

Partner with niche food producers and local / regional

produce groups to identify avenues for improvements

in their value and supply chains and opportunities for

increased product development, co-marketing,

purchasing and market entry.

High Short to

medium $30k

26

27

33

4

Complete an audit of tourism

product and events across the region

that relates to the natural

environment, family tourism, arts and

culture and environmental

sustainability including agribusiness to

identify product and infrastructure

gaps, existing and potential projects

and opportunities to attract support

funding and investment to

encourage product growth and

development.

Identify potential for local and regional tourism bodies

to provide support for the completion of the proposed

product audit.

Complete the audit of tourism product as defined and

identify avenues for support funding and investment.

Key, priority projects should be progressed with the

development of a succinct business case and

investment prospectus.

Assessment should be made for the potential adoption

of a collective events management model whereby a

central agency is established to strategically manage,

promote and support events in the region

High Medium $25k

28

29

30

31

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Industry and business cntd....

5 Complete an audit of tourism product

and events across the region cntd....

Creation of tourism related flow-ons from current

untapped markets such as the international network

of organic farm workers (Willing Workers on Organic

Farms) through targeted promotions and marketing.

High Medium $25k

28

29

30

31

6

Sustainable, economic use and

development of natural and

environmental assets in the region

should be identified. This includes

forestry management, development of

green energy initiatives and including

localised projects that deliver direct

benefits back to local communities and

business.

Liaise with Regional Development Victoria,

Department of Primary Industries on the opportunities

for biofuel and bioenergy industry development in

the region.

Develop a clear statement of intent in relation to the

development of green energy technologies and

investment for the region to create greater

community understanding and investment surety

around this industry opportunity. This should include

placement plans for wind turbines and other green

energy systems in the region which can be

incorporated into the reviewed planning scheme

and Municipal Strategic Statement.

High Medium $10-20k

33

59

65

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Industry and business cntd....

7

To strengthen land-use planning

frameworks and support the

development of land use plans for

individual localities, progress as a priority,

the review of the Hepburn planning

scheme and Municipal Strategic

Statement The review should also

address issues relating to the protection

and sustainable development of high-

value, productive agricultural land and

assets in the region.

Progress the review of the planning scheme and

Municipal Strategic Statement and ensure

consideration and inclusion of relevant key

recommendation for the HEDS and in particular land

use and developments within localities in the region.

Ensure the planning scheme review also considers

and integrates findings from the agricultural review

and agribusiness strategy.

High Short

As costed

under MSS

review or

review

outcomes

10

26

27

29

30

8

In partnership with local property

owners, developers and the real estate

industry, identify possible site and

premises for the development of

commercial office space including

business incubator facilities. Develop a

business case and investment

prospectus on potential development

outcomes.

Utilise the local business and community

development groups to identify key stakeholders to

progress a commercial development strategy.

In partnership with the identified stakeholders,

complete an assessment of development

opportunities and identification of preferred sites

and / or premises and potential tenants and users.

Complete a supporting business case and

investment prospectus to support the attraction of

investment.

High Short $18k

10

29

37

39

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Industry and business cntd....

9

Enhance engagement with the local

and regional education sector to

identify mechanisms to increase

pathways and linkages between

providers, businesses and residents.

Identify current, emerging and future

skill needs required to support the

overall economic vision of Hepburn.

Convene a facilitated education and training forum

to ascertain the key issues, challenges and

opportunities for enhancing education and training

activity in the region.

Undertake a defined skills audit within local industry

and business to determine current and future skills

needs and issues.

Using the outcomes from the forum and skills review,

partner with key stakeholders to develop a range of

responses and priority education and training

projects.

High Medium $20k

35

38

Infrastructure and services

10

Incorporation of policy statements

relating to sustainable practices for

new residential and business

developments should be considered

by Council.

Under the review the of the local planning scheme

and Municipal Strategic Statement, consideration

should be given to the encouragement of

incorporating environmentally sustainable

development practices and infrastructure into new

developments including rates incentives and

assistance with grants and funds where available.

High Short

As costed

under MSS

review or

review

outcomes

33

59

65

66

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December 2010

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Infrastructure and services cntd....

11

Identify priority gaps in ICT

infrastructure and lobby strongly with

government and providers to improve

access and services and ensure that

the region is placed to gain maximum

benefit from the roll-out of the National

Broadband Network. (Previously

detailed)

Use the Central Highlands Strategic Plan framework

and oversight group to progress an audit of ICT

infrastructure and services gaps and areas of priority

need in the region.

Ensure the ICT audit clearly articulates economic

arguments and rationale for investment in

infrastructure and services for the region.

Ensure that collective lobbying occurs for securing

ICT infrastructure funding in the region from the

National Broadband Network initiative.

High Short

$50k

across 8

Councils

39

40

12

Support the engagement of education

providers in the region to investigate

opportunities for building linked

curriculum activities and access to

education programs through the

increased use of ICT in the region.

Convene an ICT education enhancement

opportunities forum with key education providers

from the region and identify areas for potential co-

operation and funding and resource partnerships.

Integrate the opportunities into education and

training outcomes as presented in the workforce

and skills recommendations and action as detailed

in the previous Industry and Business section.

High Short $5k

38

40

13

Reduce pockets of community

resistance to the installation of ICT

infrastructure.

Liaise with service providers and government to

identify innovative models of infrastructure

investment that provide community returns for local

projects and initiatives.

Medium Medium No cost

35

40

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December 2010

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Infrastructure and services cntd....

14

Identify key transport infrastructure

investment that supports economic

activity and amenity.

Actively pursue the funding of the priority projects

listed for Hepburn contained in the Central

Highlands Regional Transport Plan.

High Short to

medium

$2.6m as

costed

39

52

62

15

Undertake mitigation planning in

relation to the provision of key service

gaps in child care, youth services and

mental health.

Regularly review and assess population trends within

the region and provide updated information to the

health and community services sector to assist with

sector service planning.

Asses the barriers to child care service provision in

the region and develop a response framework to

enhance service provision.

High Short to

medium $10k 41

16

Commence planning on processes

and response that will assist the health

and education sectors to mitigate

potential workforce capacity.

Complete a skills audit of the health and education

sectors to identify the skills required to meet the

needs of current and predicted populations.

Work with the health sector to identify mechanisms

for promoting careers in health, community and

education services within the region through local

schools and universities.

Facilitate new resident welcome and settlement

programs for relocating health and education

professionals and their families.

Medium Medium $20k

35

38

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December 2010

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Infrastructure and services cntd....

17

Identify opportunities to increase the

uptake and use of eHealth and

eEducation processes within the health

sector and where possible, associated

investment attraction.

In addition to the responses provided under the Industry

and Business ICT section, partner with the health,

community education sectors to identify opportunities for

enhancing the service capabilities and capacity of the

region. Identify opportunities for innovative local solutions

and associated project and investment attraction.

Medium Medium

to long $20k

38

39

40

Resources and environment

18

Long term water resource planning and

water efficiency measures should

remain as core policy thinking by

Council including assessment of

environmental and economic water

extraction within the Shire.

Assessments of the affects of water extraction should be

pursued to identify the level, likelihood and possible

responses to environmental and economic impacts.

Under the review the of the local planning scheme and

Municipal Strategic Statement, consideration should be

given to the encouragement of incorporating

environmentally sustainable development practices and

infrastructure into new developments including rates

incentives and assistance with grants and funds where

available.

High

High

Short

Short

$20k

As costed

under MSS

review or

review

outcomes

33

59

656

66

19

Green energy systems that provide

localised, community and region wide

benefits should be identified and

pursued.

Liaise with Regional Development Victoria, Central

Highlands Agribusiness Forum and Department of Primary

Industries on the opportunities for biofuel and bioenergy

industry development in the region.

High Medium $20k

33

59

65

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December 2010

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Resources and environment cntd....

20 Green energy systems that provide

localised, community cntd....

Develop a clear statement of intent in relation to the

development of green energy technologies and

investment for the region to create greater

community understanding and investment surety

around this industry opportunity. This should include

placement plans for wind turbines and other green

energy systems in the region which can be

incorporated into the reviewed planning scheme

and Municipal Strategic Statement

High Medium $20k

33

59

65

Population and people

21

An improved understanding of the

local employment and workforce

structures will assist Council and

businesses to better plan for workforce

development and also the provision of

skills and training programs.

Undertake a review of the employment and

workforce of the region including trends and

forecasts of employment and workforce needs.

Liaise with business and training providers to identify

key skills gaps within the local population and

identify priority programs that will assist with longer

term employment prospects for residents.

Medium

High

Long

Short to

medium

$20k

$15k

35

38

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Population and people cntd....

22

Federal government have provided a

range of funding programs for

municipalities, organisations and

regions to develop affordable housing.

It can be anticipated that this issue will

continue to be subject to future

government funding.

Hepburn and / or the Central Highlands region

needs to develop an affordable housing demand

strategy so that the region is best positioned to be

considered for affordable housing funding in the

future. Round 4 of the Federal Government’s

National Rental Affordability Scheme is open for

applications until 14th December 2010 and a round

of future funding under the Federal Housing

Affordability Fund is expected.

High Short to

Medium

$60k over

8 councils.

39

48

23

Innovative solutions to housing

shortages in the region need to be

developed in order to retain current

residents and their families and to

support the attraction and retention of

new residents.

Discussions should facilitated by Council with

relevant government departments such as

VicUrban, DPCD, Office of Housing, key lenders such

as the Bendigo Bank, eminent church groups,

training providers and other key stakeholders to

identify and develop affordable housing

partnerships. Examples of a number of previous

successful models in Victoria can be found at

http://www.sisr.net/cah/residential/Bisset2.pdf.

Medium Medium No cost

39

48

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Locality based recommendations and actions also need to be read in conjunction with other strategic level recommendations and action as

detailed previously for example, land use planning, affordable housing, ICT infrastructure, governance and networks and other initiatives.

Recommendation / learning Actions Priority Timeframe Est cost Council plan

Key localities: common themes

24

Community action plans have been an

important planning initiative

undertaken by communities and

Council and should be regularly

reviewed and assessed to ensure

currency and continued interest and

participation by communities in local

development opportunities and

projects.

Council business units to collectively review

community action plans with communities to assess

progress and status of projects and to identify

opportunities for improved collaboration and

identification of support funding and facilitation of

community projects.

Medium Ongoing No cost

33

42

43

25

Place making and the development of

inviting streetscapes are common

aspirations for community amenity

enhancement and economic

development activity within the all

communities.

Council to continue with its program of community

asset enhancement and to develop a scheduled of

works for streetscaping and place making upgrades

in communities across the Shire.

Incentives to encourage private and public property

owners to improve and invest in main street buildings

and assets should be investigated by Council and

other key stakeholders. Incentives and support

programs may include rate incentives, partnerships

with regional TAFE’s involved in building and

construction courses, work for the dole projects and

support for securing heritage building funding.

Medium

to high

Medium

to long As costed

30

32

37

54

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Key localities: common themes cntd....

26

Land-use planning for individual

communities can support appropriate

development and attract investment

by existing and potential businesses

and industry.

Progress the review of the planning scheme and

Municipal Strategic Statement and ensure

consideration and inclusion of relevant key

recommendation for the HEDS and in particular land

use and developments within localities in the region.

High Short to

medium

As costed

under MSS

review or

review

outcomes

26

29

30

37

27

Destination marketing of individual

communities is seen as strategic

opportunity to increase tourism activity

within communities that can build on

the success of Daylesford and Hepburn

Springs and other destinations in the

region.

Development of destination marketing campaigns

for localities based on current product should be

enhanced. The marketing strategies need to reflect

the different tourism offer that localities possess.

Complete the audit of tourism product as defined

and identify avenues for support funding and

investment. Key, priority projects should be

progressed with the development of a succinct

business case and investment prospectus.

Medium

High

Medium to

long

Medium

$30k

28

29

28

Volunteer fatigue, community

succession planning and wider

participation are emerging issues that

need to be assessed and addressed.

In addition, increased harnessing of

local creative and entrepreneurial

thinking should be captured and

nurtured.

Provision of governance and strategic planning for

community groups to assist with improved processes,

inclusion and succession planning should be

supported by Council and State Government

through regional leadership development programs

High Short $3-5k per

key group

35

42

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Clunes

29

Tourism has been an important catalyst

to community development projects

and development of tourism product

that also attracts and retains local

services and retail activity as seen as

key to sustaining the Clunes socio-

economic environment.

Council and community to progress the Clunes

Interpretive and Community Centre project as a

priority project.

High Short As costed

29

30

30

Arts and culture events and programs

have been highly successful driven by

a range of committed volunteer

community groups. Ongoing support

and advocacy for these projects will

assist Clunes to further develop these

projects.

Council and community organisations to identify

ways of collaborating more closely in the

development and implementation of local events

and longer term aspirations such as the

establishment of Clunes as an internationally

recognised Book Town, the progress of other arts

and cultural activities and mechanisms for greater

community participation in decision making

processes.

Medium Medium $10k

29

31

31

The return of passenger rail services will

need to be monitored to ensure

retention and growth of services as

needed.

Liaise with VLine and communities of interest to

assess patronage, service provision and

opportunities to grow public transport options in the

locality.

Medium Medium No cost

35

62

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Creswick

32

Development of arts and cultural

related projects such as the Lindsay

Arts Trail and development of the

heritage station precinct can provide

new tourism and community

development opportunities.

Council to continue to work with the community on

the progression of arts and cultural development

projects and to continue to assist communities with

project planning and sourcing funding.

High Short As costed

29

31

33

The development of a post-primary

college in Creswick has been

presented as a tangible opportunity

and would support the progression of

education development in the

region.

In partnership key stakeholders including

government, services and providers and community,

assess demand, benefits and processes under a

feasibility study to progress the establishment of a

Creswick Secondary College.

High Medium $25k

35

38

39

34

The Novotel and Forest Resort

development have been important

investments for the Creswick

community. There are opportunities

to increase the linkages with Novotel

and encourage development of

improved local support service

provision in Creswick.

Discussions should be held with Novotel

management on how better physical and business

linkages can be developed with the Creswick

community and businesses.

In partnership with Regional Development Victoria,

Tourism Hepburn, and the business community,

Council to identify funding programs to support the

provision of business development activities in the

Creswick region.

High Medium $3k per

business

29

30

35

42

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Creswick cntd....

35

The presence of the University of

Melbourne and surrounding forestry

assets provides a strategic

opportunity for Creswick to develop

as a centre of forestry including

education programs, trails and

industry development.

In partnership with the University of Melbourne and

State Government agencies, undertake and forestry

development strategy that focuses on program

delivery from Creswick but assess forestry opportunity

across the Shire.

Medium Medium $35k

29

30

35

39

Daylesford and Hepburn Springs

36

Improvements to the presentation of

the main retail and restaurant hub of

Vincent Street is seen as priority

project by community and Council in

order to develop a more attractive

and user friendly environment for

local and visitors.

Council and community to progress the

development and implementation of streetscape

improvements which should include a review of car

parking arrangements in the area.

High Short As costed

29

30

32

37

There appear to be gaps in

community infrastructure and assets

including recreational facilities and

community meeting places which are

viewed as reducing the liveability of

the area.

Priority community assets projects should be

identified in partnership with the community and

opportunities to secure support funding identified.

Opportunities to develop existing Council and

privately owned assets and facilities should form part

of this review and assessment process.

High Medium to

long $20k

6

7

48

52

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Daylesford and Hepburn Springs cntd....

38

Longer term planning in relation to the

sustainability and responsiveness of

the local tourism industry will assist with

sector risk management and help to

ensure that the product continues to

meet and where possible, exceed

market expectations.

Council to work with local and regional tourism

bodies on the development of a robust and

sustainable tourism industry in the region.

Medium Medium to

long $15k

29

30

Trentham

39

A key asset of the Trentham region is

the natural environment which is

viewed as an untapped tourism

development opportunity.

Investigation of the development of walking cycling

into and emanating from the locality are viewed as

positive, low impact tourism product that need to

be incorporated into Council’s Shire wide walking

and cycling strategy that is currently under

development.

Work with the community and other stakeholders on

the development of tourism infrastructure including

caravan and camping facilities.

High Short As costed

29

30

40

The availability of water in the

Trentham could support the further

development of the horticultural

sector in the region.

Review the capacity of horticultural development

within the Trentham as part of the previously

proposed agricultural review and agribusiness

development strategy.

High Medium

As costed

under agri

strategy

26

27

35

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Trentham cntd....

41

The 2010 Trentham Business Support

Project identified that businesses were

looking for business development support

programs, workshops and business

mentoring to assist with business

sustainability and growth.

In partnership with Regional Development Victoria

and the business community, Council to identify

funding programs to support the provision of

business development activities in the Trentham

region.

High Medium $3k per

business

34

35

42

Better engagement with local young

people and particularly supporting them

to participate in training and skills

programs is viewed as an important

process to enhance community cohesion

and the development of local businesses.

Council to work with local community groups,

service providers and young people to develop

training programs that effectively engage with

young people and employers in the region.

High Medium $5k

35

38

45

Governance and networks

43

Adequate resources need to be provide

to the economic development unit to

support the implementation and review of

the HEDS over the longer term

Current economic development unit staffing

structures and roles should be reviewed to allow for

the manager to have full-time focus on economic

development supported by and a full and / or part

time project officer. The key focus of the roles

should be the implementation of the HEDS.

High Short Est $45k

4

36

44

Enhance engagement local communities

of interest through increased information

flows on economic development activity

to regional business and industry.

Develop a communication and engagement plan

for the HEDS and a schedule of economic activity

updates via newsletters, council communiqués and

convene an annual briefing to business and industry.

High Short $5k

17

22

25

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Recommendation / learning Actions Priority Timeframe Est cost Council plan

Governance and networks cntd....

45

Strengthen land-use planning frameworks

and support the development of land use

plans for individual localities, and develop

planning information kit to improve

understanding of and navigation through

the process by applicants.

Progress the review of the planning scheme and

Municipal Strategic Statement and ensure

consideration and inclusion of relevant key

recommendation for the HEDS and in particular land

use and developments within localities in the region.

Develop a user-friendly, informative fact sheet(s) on

the local planning and approval processes and

including some of the key planning considerations

such as heritage, native vegetation and urban

design principles.

High

High

Short

Short

As costed

under MSS

review or

review

outcomes

$15k

10

17

22

25

30

46

In consultation with key stakeholders, a

review of Council revenue streams should

be undertaken and benchmarked.

Undertake a revenue review to assess options for

increasing revenue streams to support the capacity

for Council to improve service delivery including

local rates, government funding, options to

introduce fees for services and an economic

development levy.

High Short As costed

11

12

13

47

To increase the capacity of the

organisation to secure government grants

and funds, priority infrastructure projects

should be identified, be ‘funding ready’

and managed through a formalised

reporting system.

Complete an organisation wide audit of priority

projects and development initiatives to assess

funding readiness or gaps. Incorporate into a

project reporting and management system.

High Short $15k

5

6

9

13

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Strategy summary

Figure 24: Economic development strategy summary

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Conclusion

The HEDS presents a range of strategies to guide sustainable economic development. It recognises that

Council and other community stakeholders have a range of roles and responsibilities and that best

outcomes are delivered through partnerships and understanding of local conditions and environments.

The strategy focuses on short, medium and long responses that have been integrated with

management and implementation recommendations. These align with regional plans and policies and

deliver a holistic framework for developing local prosperity and sustainable economic development.

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Appendix 1: Local Government revenue comparisons

Source: Murrindindi Shire Council Plan 2009-2010 First Year Review

Source: Murrindindi Shire Council Plan 2009-2010 First Year Review

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Source: Murrindindi Shire Council Plan 2009-2010 First Year Review

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Appendix 2: Stakeholder consultations

Who Organisation

Andy Robertson Trentham Residents and Tourist Association

Anthony Avotins Daylesford Secondary College

Boaz Herszfeld Creswick Woollen Mills

Chris Sedgeman Daylesford Bendigo Bank

Cr Bill McClenaghan

Hepburn Shire Council

Cr Don Henderson

Cr Janine Booth

Cr Jonathan Barrell

Cr Rod May

Cr Sebastian Klein

Cr Tim Hayes

David Holmgren Hepburn Relocalisation Network

David Stagg Daylesford and District Business Group and Daylesford Cidery

David Wilson Trentham Business and Tourism Group

Gillian Wood Trentham resident

Graeme Johnston Dukes B&B and Creative Clunes

Graham Middleton Daylesford Macedon Ranges Tourism

Ian McBean Trentham Residents and Tourist Association and Community Bank

Committee

Jane Lesock Mt Beckworth Wines and Clunes Tourism and Development Association

John Collins Hepburn Shire Council

John Wood Trentham SME business operator

Kaylene Conrick Hepburn Shire Council

Koos Hulst Hepburn Wind

Laurel Freeland SHARE

Les Vercoe Bendigo Bank Creswick

Margaret Giles Creswick and District Development Association

Martin Walmsley Hepburn Shire Council

Maureen Corbett Hepburn Relocalisation Network

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Who Organisation

Maureen Gleeson Hepburn Community Health Services

Michael Daviss Novotel Forest Resort

Mitchell Watson Daylesford Hepburn Mineral Springs

Morgan Williams DesignScope

Neil Newitt Clunes Tourist and Development Association

Peter McConville Shizuka Ryonkan

Philippa Wooler Country Cuisine

Robert Jennings Hepburn Shire Council

Robyn Carey Trentham SME business operator

Rod Hughes Cosmopolitan Hotel and Tourism Hepburn

Su Dennett Hepburn Relocalisation Network

Tracy Williams Trentham Farmers Market and Nutty Orchard

Wayne Cross Spa Country Getaways

Wendy White Trentham Newsagents and Community Bank Committee

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Appendix 3: Industry sector descriptions

Division A: Agriculture, Forestry and Fishing, includes all units mainly engaged in 'agriculture, forestry,

fishing and hunting'. The term agriculture is used here in the broad sense to include the breeding,

keeping or cultivation of all kinds of animal or vegetable life except forest trees and marine life. Forestry

includes afforestation, harvesting and gathering of forest products. Fishing includes the catching,

gathering, breeding and cultivation of marine life from ocean, coastal and inland waters. Hunting

includes the catching or taking of all types of animal wildlife on land.

Subdivisions and Groups

01 Agriculture

011 Horticulture and Fruit Growing

012 Grain, Sheep and Beef Cattle Farming

013 Dairy Cattle Farming

014 Poultry Farming

015 Other Livestock Farming

016 Other Crop Growing

02 Services to Agriculture; Hunting and Trapping

021 Services to Agriculture

022 Hunting and Trapping

03 Forestry and Logging

030 Forestry and Logging

04 Commercial Fishing

041 Marine Fishing

042 Aquaculture

Division B: Mining, includes all units mainly engaged in 'mining', in exploration for minerals, and in the

provision of a wide variety of services to mining and mineral exploration, as well as mining units under

development.

The term 'mining' is used in the broad sense to include the extraction of minerals occurring naturally as

solids such as coal and ores, liquids such as crude petroleum, or gases such as natural gas. Extraction of

minerals is undertaken by such processes as underground or open cut mining, dredging, quarrying, the

operation of wells or evaporation pans, or by recovery from ore dumps or tailings, and all

supplementary activities aimed at preparing the crude materials for marketing.

Activities include milling, dressing and beneficiation of ores, screening, washing and flotation. These

activities are generally carried out at or near mine sites as an integral part of mining operations. Natural

gas absorption, purifying and similar treatment plants are also included in this division.

The Mining Division excludes units mainly engaged in refining or smelting of minerals or ores (other than

the preliminary smelting of gold), or in the manufacture of such products of mineral origin as coke or

cement. The commodities produced by the Mining sector involve the minimum amount of processing to

produce a marketable product.

Many businesses which have mining units also have manufacturing units which further process the

mined material. Where separate accounts are not available, the unit (which both mined and further

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processed the material) is to be classified to Division C Manufacturing. Where separate accounts are

kept (i.e. separate units exist), the unit which carries the last stage of processing is to be classified to

Division C Manufacturing.

Subdivisions and Groups

11 Coal Mining

110 Coal Mining

12 Oil and Gas Extraction

120 Oil and Gas Extraction

13 Metal Ore Mining

131 Metal Ore Mining

14 Other Mining

141 Construction Material Mining

142 Mining n.e.c.

15 Services to Mining

151 Exploration

152 Other Mining Services

Division C: Manufacturing, includes all units mainly engaged in manufacturing. In a broad sense

manufacturing relates to the physical or chemical transformation of materials or components into new

products, whether the work is performed by power driven machines or by hand.

In general the manufacture of parts or components is a primary activity of the same class as the

manufacture of the finished product except where the manufacture of parts or components is

specifically shown as a primary activity of another class.

Subdivisions and Groups

21 Food, Beverage and Tobacco Manufacturing

211 Meat and Meat Product Manufacturing

212 Dairy Product Manufacturing

213 Fruit and Vegetable Processing

214 Oil and Fat Manufacturing

215 Flour Mill and Cereal Food Manufacturing

216 Bakery Product Manufacturing

217 Other Food Manufacturing

218 Beverage and Malt Manufacturing

219 Tobacco Product Manufacturing

22 Textile, Clothing, Footwear and Leather Manufacturing

221 Textile Fibre, Yarn and Woven Fabric Manufacturing

222 Textile Product Manufacturing

223 Knitting Mills

224 Clothing Manufacturing

225 Footwear Manufacturing

226 Leather and Leather Product Manufacturing

23 Wood and Paper Product Manufacturing

231 Log Sawmilling and Timber Dressing

232 Other Wood Product Manufacturing

233 Paper and Paper Product Manufacturing

24 Printing, Publishing and Recorded Media

241 Printing and Services to Printing

242 Publishing

243 Recorded Media Manufacturing and Publishing

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25 Petroleum, Coal, Chemical and Associated Product Manufacturing

251 Petroleum Refining

252 Petroleum and Coal Product Manufacturing n.e.c.

253 Basic Chemical Manufacturing

254 Other Chemical Product Manufacturing

255 Rubber Product Manufacturing

256 Plastic Product Manufacturing

26 Non-Metallic Mineral Product Manufacturing

261 Glass and Glass Product Manufacturing

262 Ceramic Product Manufacturing

263 Cement, Lime, Plaster and Concrete Product Manufacturing

264 Non-Metallic Mineral Product Manufacturing n.e.c.

27 Metal Product Manufacturing

271 Iron and Steel Manufacturing

272 Basic Non-Ferrous Metal Manufacturing

273 Non-Ferrous Basic Metal Product Manufacturing

274 Structural Metal Product Manufacturing

275 Sheet Metal Product Manufacturing

276 Fabricated Metal Product Manufacturing

28 Machinery and Equipment Manufacturing

281 Motor Vehicle and Part Manufacturing

282 Other Transport Equipment Manufacturing

283 Photographic and Scientific Equipment Manufacturing

284 Electronic Equipment Manufacturing

285 Electrical Equipment and Appliance Manufacturing

286 Industrial Machinery and Equipment Manufacturing

29 Other Manufacturing

291 Prefabricated Building Manufacturing

292 Furniture Manufacturing

294 Other Manufacturing

Division D: Electricity, Gas and Water Supply, includes all units mainly engaged in the generation,

transmission or distribution of electricity; the manufacture of town gas from coal and/or petroleum or the

distribution of manufactured town gas, natural gas or liquefied petroleum gas through a mains

reticulation system; the storage, purification or supply of water; or the operation of sewerage or

drainage systems including sewage treatment plants.

Subdivisions and Groups

36 Electricity and Gas Supply

361 Electricity Supply

362 Gas Supply

37 Water Supply, Sewerage and Drainage Services

370 Water Supply, Sewerage and Drainage Services

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Division E: Construction, includes all units mainly engaged in constructing buildings (including the on-site

assembly and erection of prefabricated buildings), roads, railroads, aerodromes, irrigation projects,

harbour or river works, water, gas, sewerage or stormwater drains or mains, electricity or other

transmission lines or towers, pipelines, oil refineries or other specified civil engineering projects. In general,

units mainly engaged in the repair of buildings or of other structures are also included in this Division, as

are those engaged in the alteration or renovation of buildings, preparation of mine sites, demolition or

excavation. Units mainly engaged in providing architectural supervision or consultant engineering

services are not included though they may be involved in supervising construction work; such units are

included in Division L Property and Business Services. Units of the defence forces engaged in

construction activities are not included in this Division; the defence forces are included in Division M

Government Administration and Defence.

Units mainly engaged in certain specified installation activities such as the installation of heating and air

conditioning equipment, the on-site assembly of boilers, the installation of fire alarm systems, the

installation of blinds and awnings, the installation of petrol bowsers or the installation of electrical wiring

are included in this Division. Units mainly engaged in providing special building or construction trade

services such as structural steel erection, carpentry, bricklaying, concreting, plumbing, painting,

plastering, floor and wall tiling or roof tiling and the installation or laying of floor coverings such as

carpets or linoleum, are included in this Division. However, not all units mainly engaged in installing

goods are included in this Division, e.g. units mainly engaged in installing household appliances (not

requiring electrical or plumbing work in order to be installed) are included in Subdivision 52 in Division G

Retail Trade, while units mainly engaged in installing lifts, escalators, factory assembled boilers or "built-in"

furniture are included in Division C Manufacturing.

Subdivisions and Groups

41 General Construction

411 Building Construction

412 Non-Building Construction

42 Construction Trade Services

421 Site Preparation Services

422 Building Structure Services

423 Installation Trade Services

424 Building Completion Services

425 Other Construction Services

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Division F: Wholesale Trade, includes all units mainly engaged in wholesale trade. The term `wholesale

trade' is used here in the broad sense to include the resale (as agents or principals) of new or used

goods to businesses or to institutional (including Government) users.

Businesses mainly engaged in wholesale trade are wholesale merchants who take title to the goods

they sell; separate sales branches (not being retail stores) operated by manufacturing enterprises;

commission agents, import and export agents and purchasing agents; petroleum products distributors;

and cooperatives and marketing boards engaged in marketing farm products.

Units mainly engaged in reselling their own goods by auction are included in this Division, but units which

are mainly engaged in providing auctioning services for others are included in Division L Property and

Business Services.

In the case of units which have goods manufactured for them on commission or contract a variety of

situations are encountered with different treatments applicable to each. However, in general, if a unit

has no goods producing facilities itself then all its sales of goods produced for it on commission are

treated for classification purposes as wholesale or retail sales, as appropriate.

Subdivisions and Groups

45 Basic Material Wholesaling

451 Farm Produce Wholesaling

452 Mineral, Metal and Chemical Wholesaling

453 Builders Supplies Wholesaling

46 Machinery and Motor Vehicle Wholesaling

461 Machinery and Equipment Wholesaling

462 Motor Vehicle Wholesaling

47 Personal and Household Good Wholesaling

471 Food, Drink and Tobacco Wholesaling

472 Textile, Clothing and Footwear Wholesaling

473 Household Good Wholesaling

479 Other Wholesaling

Division G: Retail Trade, includes all units mainly engaged in the resale of new or used goods to final

consumers for personal or household consumption or in selected repair activities such as repair of

household equipment or motor vehicles. Businesses engaged in retail trade include department stores

or other shops, motor vehicle retailers and service outlets, stalls, mail order houses, hawkers, door-to-

door sellers, milk vendors, vending machine operators and consumer cooperatives. Units mainly selling

goods on a commission basis to final consumers for personal or household consumption are included.

However, cafes, restaurants, hotels and motels are included in Division H Accommodation, Cafes and

Restaurants.

Units mainly engaged in reselling their own goods by auction are included in this Division, but units which

are mainly engaged in providing auctioning services for others are included in Division L Property and

Business Services.

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Subdivisions and Groups

51 Food Retailing

511 Supermarket and Grocery Stores

512 Specialised Food Retailing

52 Personal and Household Good Retailing

521 Department Stores

522 Clothing and Soft Good Retailing

523 Furniture, Houseware and Appliance Retailing

524 Recreational Good Retailing

525 Other Personal and Household Good Retailing

526 Household Equipment Repair Services

53 Motor Vehicle Retailing and Services

531 Motor Vehicle Retailing

532 Motor Vehicle Services

Division H: Accommodation, Cafes and Restaurants, includes all units mainly engaged in providing

hospitality services in the form of accommodation, meals and drinks.

Subdivisions and Groups

57 Accommodation, Cafes and Restaurants

571 Accommodation

572 Pubs, Taverns and Bars

573 Cafes and Restaurants

574 Clubs (Hospitality)

Division I: Transport and Storage, includes all units mainly engaged in providing passenger or freight

transport by road, rail, water or air; terminal facilities for passengers or freight; services related to

transport such as car parking, stevedoring, harbour services, navigation services, airport operation or

space port operation; booking, travel, freight forwarding, crating or customs agency services; and

storage facilities. Units mainly engaged in operating pipelines for the transportation of oil, gas, etc., on a

contract or fee basis are included in this Division.

Subdivisions and Groups

61 Road Transport

611 Road Freight Transport

612 Road Passenger Transport

62 Rail Transport

620 Rail Transport

63 Water Transport

630 Water Transport

64 Air and Space Transport

640 Air and Space Transport

65 Other Transport

650 Other Transport

66 Services to Transport

661 Services to Road Transport

662 Services to Water Transport

663 Services to Air Transport

664 Other Services to Transport

67 Storage

670 Storage

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Division J: Communication Services, includes all units mainly engaged in providing postal, courier and

telecommunication services.

Subdivisions and Groups

71 Communication Services

711 Postal and Courier Services

712 Telecommunication Services

Division K: Finance and Insurance, includes all units mainly engaged in the provision of finance, in

investing money in predominantly financial assets, in providing services to lenders, borrowers and

investors, in providing insurance cover of all types, and in providing services to insurance underwriters

and to people or organisations seeking insurance.

Subdivisions and Groups

73 Finance

731 Central Bank

732 Deposit Taking Financiers

733 Other Financiers

734 Financial Asset Investors

74 Insurance

741 Life Insurance and Superannuation Funds

742 Other Insurance

75 Services to Finance and Insurance

751 Services to Finance and Investment

752 Services to Insurance

Division L: Property and Business Services, includes all units predominantly engaged in renting and

leasing assets as well as units engaged in providing a wide variety of business services.

Subdivisions and Groups

77 Property Services

771 Property Operators and Developers

772 Real Estate Agents

773 Non-Financial Asset Investors

774 Machinery and Equipment Hiring and Leasing

78 Business Services

781 Scientific Research

782 Technical Services

783 Computer Services

784 Legal and Accounting Services

785 Marketing and Business Management Services

786 Other Business Services

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Division M: Government Administration and Defence, includes all Central, State and Local Government

units mainly engaged in government administration and regulatory activities, as well as judicial

authorities and commissions, representatives of overseas governments, and the Army, Navy and Air

Defence forces and civilian units mainly engaged in defence administration.

The industry class for Defence excludes units mainly engaged in manufacturing activities (such as naval

dockyards and munitions factories) and units mainly engaged in operating colleges or similar

educational institutions for the defence forces.

Subdivisions and Groups

81 Government Administration

811 Government Administration

812 Justice

813 Foreign Government Representation

82 Defence

820 Defence

Division N: Education, includes all units mainly engaged in providing education.

Subdivisions and Groups

84 Education

841 Preschool Education

842 School Education

843 Post School Education

844 Other Education

Division O: Health and Community Services, includes all units mainly engaged in providing health and

community services.

Subdivisions and Groups

86 Health Services

861 Hospitals and Nursing Homes

862 Medical and Dental Services

863 Other Health Services

864 Veterinary Services

87 Community Services

871 Child Care Services

872 Community Care Services

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Division P: Cultural and Recreational Services, includes all units mainly engaged in providing cultural and

recreational facilities and services.

Subdivisions and Groups

91 Motion Picture, Radio and Television Services

911 Film and Video Services

912 Radio and Television Services

92 Libraries, Museums and the Arts

921 Libraries

922 Museums

923 Parks and Gardens

924 Arts

925 Services to the Arts

93 Sport and Recreation

931 Sport

932 Gambling Services

933 Other Recreation Services

Division Q: Personal and Other Services, includes units which are mainly engaged in providing personal

services.

Subdivisions and Groups

95 Personal Services

951 Personal and Household Goods Hiring

952 Other Personal Services

96 Other Services

961 Religious Organisations

962 Interest Groups

963 Public Order and Safety Services

97 Private Households Employing Staff

970 Private Households Employing Staff

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Appendix 4: Key references

Documents and literature

Australian Local Government Association 1999. Competitive Regions: Opportunities for Local

Government 1999.

Australian Tourism Research Cenre 2008. Destination Daylesford: Strategic Tourism Plan 2008-2018.

Bass Coast Shire Council 2009. Affordable Housing Picture and Affordable Housing Plan 2009-2013.

Central Highlands Region 2009. Central Highlands Region: Regional Priorities 2009.

Central Highlands Region 2010. Central Highlands Regional Transport Plan 2010: Immediate Priorities.

Department of Education, Employment and Workplace Relations 2010. Small Area Labour Markets:

June Quarter 2010.

Department of Education and Early Childhood Development 2010: Victoria’s Rural Education

Framework; Consultation draft 2010.

Department of Planning and Community Development 2001: Victorian Population bulletin 2001

Department of Planning and Community Development 2009: Victorian Population bulletin 2009

Department of Planning and Community Development 2010: Victorian Population bulletin 2010

Department of Planning and Community Development 2008: Victoria in the Future 2008: Central

Highlands.

Hepburn Shire Council 2009. Community Economic Development Strategy 2009.

Hepburn Shire Council 2009. Hepburn Shire Council Council Plan 2009-2013.

Hepburn Shire Council 2009. Hepburn Shire Council Strategic Resource Plan 2009-2013.

Hepburn Shire Council 2009. Community Satisfaction Survey 2010.

Merv Whelan, Rohan Whelan 2010. Local Government Financial Sustainability: Focus on Small Rural

Councils May 2010. Abridged report.

Murrindindi Shire Council 2010. Murrindindi Strategic Resource Plan 2010.

Neil Barr, Roger Wilkinson and Komala Karunaratne 2005. Understanding Rural Victora 2006.

Regional Development Victoria 2010. Central Highlands Regional Strategic Plan 2010.

Regional Development Victoria 2010. Ready for Tomorrow: A Blueprint for Regional and Rural Victoria

2010.

Tourism Australia 2007. Tourism Profiles for Local Government Areas in Regional Australia: Hepburn Shire

June 2007.

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Tourism Research Austalia 2010. Destination Visitor Survey: Visitor Profile and Satisfaction Report –

Victoria Daylesford and Macedon Ranges 2010.

Tourism Victoria 2009. Regional Tourism Action Plan 2009-2012.

Tourism Victoria 2009. Daylesford and the Macedon Ranges Market Profile: Year Ending December

2009.

Websites

ABS SEIFA data:

http://www.abs.gov.au/websitedbs/d3310114.nsf/4a256353001af3ed4b2562bb00121564/cbc195deddc

8d84eca25740f0010e378!OpenDocument

Community Indicators Victoria: http://www.communityindicators.net.au/wellbeing_reports/hepburn

Hedgehog Self-build Coopertative: http://www.segalselfbuild.co.uk/projects/hedgehog.html

Swinburn Institute for Social Research: http://www.sisr.net/cah/residential/Bisset2.pdf

Transition Network: http://www.transitionnetwork.org/

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Appendix 5: Think Tank framework

Item Activity Who Mins Time

1 Arrival. All 10 1.30 – 1.40

2 Welcome and introduction. Kaylene Conrick 5 1.40 – 1.45

3 Welcome and think tank overview. SED Consulting 5 1.45 - 1.50

4 Participants introduce themselves. Participants 5 1.50 – 1.55

5 Overview of the project. SED Consulting 5 1.55 – 2.00

6 Overview of Hepburn economy and key

strategies. SED Consulting 20 2.00 – 2.20

7 Completion of STEEP. All 40 2.20 – 3.00

8 Break. All 15 3.00 – 3.15

9 What are the issues and challenges for

economic development in Hepburn? All 30 3.15 – 3.45

10 What are the opportunities and possibilities for

economic development in Hepburn? All 30 3.45 – 4.15

11 Key objectives and actions and roles and

responsibilities of key stakeholders. All 40 4.15– 4.55

12 Close. SED Consulting 5 4.55 – 5.00

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Appendix 6: REMPlan economic data

Industry Sector Hepburn Jun 2010 ($M)

Manufacturing $139.509

Agriculture Forestry Fishing $103.248

Accommodation, cafes & restaurants $93.503

Construction $91.408

Property & business services $83.222

Retail trade $68.417

Health & community services $55.489

Education $40.129

Wholesale trade $35.784

Government administration & defence $26.856

Transport & storage $23.135

Communication services $15.775

Personal & other services $13.680

Cultural & recreational services $13.298

Finance & insurance $10.756

Mining $7.842

Electricity, gas & water supply $5.050

Total $827.1

$0

$20

$40

$60

$80

$100

$120

$140

Economic output of all sectors

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Industry Sector Hepburn Jun 2010 (Jobs)

Retail trade 569

Accommodation, cafes & restaurants 497

Agriculture Forestry Fishing 480

Health & community services 476

Education 322

Manufacturing 211

Construction 207

Property & business services 206

Personal & other services 132

Government administration & defence 130

Wholesale trade 94

Transport & storage 78

Cultural & recreational services 65

Communication services 31

Finance & insurance 24

Mining 9

Electricity, gas & water supply 6

Total 3,537

0

100

200

300

400

500

600

Employment by sector

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Industry Sector Hepburn Jun 2010 ($M)

Health & community services $35.620

Education $27.489

Retail trade $22.780

Property & business services $21.231

Accommodation, cafes & restaurants $20.248

Manufacturing $19.328

Government administration & defence $13.153

Agriculture Forestry Fishing $12.343

Construction $11.599

Wholesale trade $9.264

Personal & other services $6.791

Transport & storage $5.113

Finance & insurance $3.179

Cultural & recreational services $3.041

Communication services $2.457

Mining $1.089

Electricity, gas & water supply $0.810

Total $215.54

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Wages and salaries by sector

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Industry Sector Hepburn Jun 2010 ($M)

Property & business services $62.196

Manufacturing $37.967

Construction $24.240

Agriculture Forestry Fishing $15.452

Wholesale trade $13.983

Transport & storage $11.173

Communication services $9.962

Retail trade $9.081

Finance & insurance $5.834

Accommodation, cafes & restaurants $4.874

Government administration & defence $2.993

Electricity, gas & water supply $2.831

Cultural & recreational services $2.703

Education $2.214

Mining $1.644

Personal & other services $1.178

Health & community services $0.694

Total $209.02

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Local sales by sector

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Industry Sector Hepburn Jun 2010 ($M)

Construction $40.290

Manufacturing $31.726

Property & business services $27.776

Accommodation, cafes & restaurants $23.581

Agriculture Forestry Fishing $21.227

Retail trade $16.113

Wholesale trade $9.193

Government administration & defence $6.911

Health & community services $6.420

Transport & storage $6.328

Education $4.941

Communication services $4.320

Cultural & recreational services $4.197

Personal & other services $2.859

Finance & insurance $1.639

Electricity, gas & water supply $0.898

Mining $0.598

Total $209.02

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Local expenditure by sector

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Industry Sector Hepburn Jun 2010 ($M)

Manufacturing $74.750

Accommodation, cafes & restaurants $33.402

Agriculture Forestry Fishing $24.132

Construction $23.854

Property & business services $18.333

Retail trade $17.255

Wholesale trade $10.857

Transport & storage $7.127

Health & community services $5.388

Government administration & defence $4.910

Education $4.793

Communication services $4.337

Cultural & recreational services $3.994

Personal & other services $2.411

Mining $2.176

Finance & insurance $1.995

Electricity, gas & water supply $1.419

Total $241.13

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Imports into the region by sector

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Industry Sector Hepburn Jun 2010 ($M)

Agriculture Forestry Fishing $79.809

Manufacturing $70.433

Accommodation, cafes & restaurants $59.527

Construction $14.899

Property & business services $11.138

Wholesale trade $7.642

Retail trade $6.748

Mining $6.200

Education $5.029

Transport & storage $4.375

Cultural & recreational services $2.457

Finance & insurance $2.107

Government administration & defence $1.187

Personal & other services $1.026

Health & community services $0.934

Communication services $0.357

Electricity, gas & water supply $0.008

Total $277.88

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

Exports from Hepburn by sector

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Industry Sector Hepburn Jun 2010 ($M)

Agriculture Forestry Fishing $57.890

Health & community services $43.682

Property & business services $37.113

Accommodation, cafes & restaurants $36.520

Retail trade $35.050

Manufacturing $33.032

Education $30.394

Construction $27.265

Wholesale trade $15.734

Government administration & defence $15.034

Transport & storage $9.680

Personal & other services $8.410

Finance & insurance $7.122

Communication services $7.117

Cultural & recreational services $5.107

Mining $5.068

Electricity, gas & water supply $2.733

Total $376.95

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

Value-add by sector ($m)

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S:\SED - Ballarat\Projects\OPEN\Regional DevelopmentEDS\Reports\100826_Hepburn_1980_EDS_Eco

GRP Report

GRP Expenditure Method

Household Consumption

Government Consumption

Private Gross Fixed Capital Expenditure

Public Gross Fixed Capital Expenditure

Gross Regional Expenses

plus Exports

minus Domestic Imports

minus Overseas Imports

Gross Regional Product

Population

Per Capita GRP ($'000)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%Value

Hepburn Shire Council 2010 Economic Development Strategy

Regional Development\Hepburn Shire Council\Hepburn Economic Development Strategy_Final Draft_v2.docx

December 2010

$M

$590.361

$152.273

Private Gross Fixed Capital Expenditure $196.068

Public Gross Fixed Capital Expenditure $35.128

$973.831

$276.988

-$744.735

-$64.206

$441.877

13,732

$32.179

Value-add as a % of output

Page 84 of 88

Value-

add as a

% of

output

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Appendix 7: Key economic and community indicators

Fact Figure Data source

The people

Estimated population 14,803 DPCD Population Bulletin 2010

Population growth 2001-2010

�3.5% from 14,030 DPCD Population Bulletin 2001 and 2010

Estimated forecast population growth 0.9% per annum

2006-2026 DPCD Victoria in the Future 2008

Estimated population 2026 17,159 DPCD Victoria in the Future 2008

Number of ratepayers Approximately 10,000 Hepburn Shire Council 2010

Percentage on non-resident rate payers 34% Hepburn Shire Council 2010

Average household size 2.3 persons ABS Census 2006

Median age of residents 44 ABS Census 2006

The workforce

Workforce participation rate 7,605 Small Area Labour Markets (Jun 2010)

Unemployment rate

6.8%

Victoria - 5.1%

Non-metro Victoria – 5.2%

Small Area Labour Markets (Dec 2009)

Median individual weekly income $358 ABS Census 2006

Most common occupation

Professionals – 18.2%

Managers – 17.3%

Technicians and trade

workers – 15.7%

Labourers – 12.4%

REMPlan June 2010

Sector employment

Retail 569 persons – 16.1% REMPlan June 2010

Accommodation, cafes and restaurants 497 persons – 14.1% REMPlan June 2010

Agriculture 480 persons – 13.6% REMPlan June 2010

Health and Community Services 476 person – 13.5% s REMPlan June 2010

Education 322 persons– 9.1% REMPlan June 2010

The economy

Main sectors by output

Manufacturing $139.5m – 16.9% REMPlan June 2010

Agriculture, Forestry and Fishing $103.3m – 12.5% REMPlan June 2010

Accommodation, cafes and restaurants $93.5m – 11.3% REMPlan June 2010

Construction $91.4m – 11.1% REMPlan June 2010

Property and business services $83.2m – 10.1% REMPlan June 2010

Total value of the Hepburn economy $827.1m REMPlan June 2010

General information

Land area 1,470 km2 Victoria in the Future 2008

Population density 9.7 person per km2 Victoria in the Future 2008

Major population centres

Daylesford and Hepburn Springs 3,074 persons ABS Census 2006

Creswick 3,064 persons ABS Census 2006

Clunes 1,026 persons ABS Census 2006

Trentham 924 persons ABS Census 2006

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Appendix 8: 2010 Central Highlands Regional Strategic Plan Summary

� The Central Highlands Regional Strategic Plan (CHRSP) forms part of the Regional Strategic Planning

Initiative coordinated by Regional Development Victoria.

� Eight local government areas form the Central Highlands region:

o Ararat Rural City Council;

o Ballarat City Council;

o Central Goldfields Shire Council;

o Golden Plains Shire Council;

o Hepburn Shire Council;

o Moorabool Shire Council;

o Northern Grampians Shire

Council; and

o Pyrenees Shire Council.

The Strategy maintains that fundamentally, the region’s comparative advantages revolve around the

three core elements as shown in the centre of the diagram below and which link to regional

sustainability, productivity and liveability and are influenced by key drivers of regional change as shown

below.

1. Sustained population growth

2. Resilient economy

3. Outstanding built and natural

environment

Proximity and access to

Melbourne

Transport upgrades

Changing population

profile

Use of IT and broadband to

delivery services

Changing demands on

natrual resource base

Increasing emphasis on

liveablity

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The Central Highlands Regional Strategic Plan presents particular issues that impact on the capacity

and resilience of the region as shown in the figure below.

Challenges for the region include:

� Managing growth, development and change at the regional scale so as to take advantage of the

opportunities that arise and integrating these changes so as to create a more resilient regional

economy and deal with their local level impacts.

� Managing the provision of services and facilities for a growing and changing population to achieve

a more balanced population distribution across the region and thereby reducing the impact of

substantial growth. Growth is likely to be focused into a few locations such as Ballarat and its

hinterland, Bacchus Marsh and Bannockburn. There will also be a substantially changing

demographic structure, particularly the ageing of the population.

� Capitalising on the capacity and liveability of the existing cities, towns and villages and building

them into a strong cohesive network that is able to support planned and managed expansion and

offer diverse and highly liveable places as alternatives to metropolitan growth.

� Facilitating education and training, workforce planning, job generation and investment to meet

substantially different future workforce needs. Better capitalisation on the region’s strengths, and

integration of this with the emerging economy based key elements such as the delivery of services

to people across the region, higher order manufacturing and tourism.

Capacity and

reslience

Young people leaving the

region

Delivery of services and

faciltiies for an ageing

population

Traditional economic

strengths, assets and capabilities

may not be assured

Sustaining agriculture's

importance to the regional

economyFostering manufacturing

through innovation, skills

and training

Improved north south transport movements of

goods

Meeting the housing needs of our populations

Access to health sevice networks

and support older persons in

their homes

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� Improving inter and intra regional connectivity with transport facilities and services, IT

communications and access to high speed broadband.

� Strengthening the management and sustainable utilisation of the region’s natural resources and

environmental assets for an impending future that is likely to be drier, where energy is more

expensive and there will be greater competing forces for the region’s resources.

Source: 2010 Central Highlands Regional Strategic Plan