Acting Director Planning and Economic Development. Eastern Region Alliance (ERA) Economic Development Draft Action Plan 2013/2014 to 2016/2017

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1 870 ITEM NO.: 17.1 ON AGENDA TO: Council on 24 June 2014 FROM: SUBJECT: Acting Director Planning and Economic Development Eastern Region Alliance (ERA) Economic Development Draft Action Plan 2013/2014 to 2016/ PURPOSE OF REPORT 1. To provide Council with the Eastern Region Alliance Draft Economic Development Action Plan 2013/ /17 (refer s 1-5). 2. RELEVANCE TO CORE STRATEGIES / POLICY 2.1 Core Strategy 2 Our Economy 2.1 Target and encourage appropriate and diverse commercial investment. 2.2 Support retail, commercial, home and e-business development across our City. 2.5 Promote Prospect as one of Adelaide s most liveable inner suburbs, with world class digital connections, clean and green amenity, strategically ideal for retail and commercial investment. 2.6 Seek to improve the communication links between government and business. 2.7 Improve accessibility to and links between key commercial precincts. 2.2 Economic Development Plan and Digital Economy Strategy. 3. COMMUNITY INVOLVEMENT 3.1 No community consultation has been undertaken in the preparation of this report. 4. DISCUSSION 4.1 Professor Dick Blandy was engaged by the Eastern Region Alliance (ERA) Economic Development Portfolio group to provide a report on the strength and characteristics of the economy of the Eastern Region, which is comprised of Cities of Prospect, Campbelltown, Burnside, Tea Tree Gully, Unley, and Norwood, Payneham and St Peters, and the Town of Walkerville. His report, The Size, Structure and Growth of the Eastern Region Alliance s Economy, was received by Council at its meeting of 25 February At that time, Council resolved that: (1) A Draft Eastern Region Alliance Business and Economic Development Action Plan be developed taking into account Professor Blandy s report.

2 871 (2) The Draft Action Plan be considered by the Eastern Region Alliance Chief Executive Officer group and subject to the Chief Executive Officers support, be presented to Council by mid The Draft Action Plan to include actions and priorities, cost and timeline estimates. 4.2 The ERA Economic Development Portfolio group subsequently developed a draft Economic Development Action Plan 2013/ /2017 (s 1-5), which provides direction for the ERA group s activities over the course of four years. These actions largely reflect the recommendations contained within Professor Blandy s report. 4.3 Professor Blandy identified the quality of life and value for companies, individuals and industries within the Eastern Region as key attributes of the Eastern Region that distinguish it from the rest of greater Adelaide. Following discussion between Professor Blandy and the ERA group, four broad economic development themes emerged, focusing on opportunities for small business, creative industries, water and sport, recreation and tourism. 4.4 The ERA group presented a draft Action Plan to the ERA Chief Executive Officers at their meeting held on 26 February Feedback received at that meeting indicated that further refinement of the draft Action Plan was required. 4.5 Following further review, the draft Action Plan was updated with the requested enhancements and presented to the ERA CEOs at their May 2014 meeting where it was endorsed. It has been forwarded to all ERA Councils for endorsement. 4.6 The draft Action Plan was provided to Elected Members in early June and subsequently discussed at the Workshop held on 10 June The strategies proposed in the Action Plan are recommendations for achieving a fast growth scenario for the region resulting in improvements across a number of key indicators of economic strength and particularly Gross Regional Product. 4.7 At that time, concerns were identified about how to measure the outcomes of the actions described within the Action Plan, as well as the anticipated lobbying for changes to stamp duty concessions as described at item 2.16 of the Action Plan (refer 3). 4.8 The draft Action Plan includes an indication of funding required to deliver the program over the next three financial years, although there has been no formal request for a funding commitment from Council at this stage. The ERA Economic Development Portfolio group will also seek additional funding from grant opportunities to assist in the delivery of the Action Plan. 5. PREFERRED OPTION & JUSTIFICATION 5.1 The ERA Business and Economic Development Portfolio group and Professor Dick Blandy have undertaken a detailed analysis of the Eastern Region and arrived at a series of actions to support the future economic growth via a collaborative approach. The implementation of the actions would provide the best opportunity for potential growth to be realised in the future. 5.2 Many of the ERA Councils will soon revise or develop new business and economic development strategies. It is anticipated that these will be informed by the ERA Action Plan. Endorsement by all Councils is desirable as it provides a foundation for a cohesive regional approach to sustainable economic development.

3 The endorsement of the ERA Economic Development Action Plan 2013/2014 to 2016/2017 would provide clear direction to the ERA Economic Development Group. 6. RECOMMENDATION (1) Council endorses the Eastern Region Alliance (ERA) Economic Development Draft Action Plan 2013/2014 to 2016/2017, with the exception of lobbying for change in stamp duty concessions as described in 2.16 of the Action Plan. Chris Newby Acting Director Business and Economic Development Report prepared by Jennifer Buchan, Economic Development Officer

4 Eastern Region Alliance Economic Development Action Plan 2013/2014 to 2016/ Eastern Region Alliance Economic Development Action Plan Summary Year Prime Priority Project Financial Year Amount Priority Highlight Identifier Priority Projects 1 Creative Industries 2013/2014 $25, , 1.3, 1.4, Events, Tourism and Lifestyle 2014/2015 $40, , 1.6, 2.3, 2.5, 2.6, 2.9, 2.11, 2.14, 3.1, Small Business Support/ Trader Liaison + Education 2015/2016 $50, , 2.1, 2.2, 2.7, 2.8, 2.12, 3.3, 3.4, 3.5, 4.1, Small Business Support/ Trader Liaison Continued 2016/2017 $35, , 2.16, 2.17, 2.20, 3.6, 3.7 Total Total $150,426 Creative Industries (Lead Council NPSP) 2013/2014 $25, /2015 $10, /2016 $5, /2017 $0 Total $40,426 Requirements Current Situation/Progress 1.1 Map creative industry businesses operating in ERA (split between Councils) and survey them re growth opportunities/projections NPSP/TOW 2013/2014 External ($15,425) Consultant to be engaged to undertake 1.1 & 1.5 and to incorporate as appropriate. 1.2 Map home based businesses operating in ERA (split between Councils) and survey them re growth opportunities/projections 1.3 ERA to approach the Creative Industries Innovation Centre (CIIC) through the South Australian State Centre to investigate what programs might be able to be developed for ERA s groups of creative industries in various locations to complement CIIC s normal services to individual businesses NPSP/TOW 2014/2015 External An objective of all ERA council B&ED strategies. Consultant to be engaged to undertake 1.1 & 1.5 and to incorporate as appropriate. BECs / NPSP 2013/2014 Staff time Consultant to be engaged to undertake 1.1 & 1.5 and to incorporate as appropriate. 1.4 Investigate how we link education providers with creative industry employers to ensure future worker meet skills gaps within creative industries NPSP 2013/2014 External/BECs Some investigations commenced. Consultant to be engaged to undertake 1.1 & 1.5 and to incorporate as appropriate. 1.5 Develop strategies to grow the creative industries sector within ERA NPSP 2013/2014 External ($10,000) Consultant to be engaged to undertake 1.1 & 1.5 and to incorporate as appropriate. 1.6 Implementation Strategy ERA 2014/2015 External ($10,000) To be defined 2015/2016 External ($5,000) 1

5 2014 Eastern Region Alliance Economic Development Action Plan Small Business Support/ Trader Liaison (Lead Council Unley) 2013/2014 $0 2014/2015 $0 2015/2016 $30, /2017 $30,000 Total $60,000 Requirements Current Situation/Progress 2.2 Encourage new advanced manufacturing design and development to occur within our region ERA 2015/2016 Staff time Circulation of ERA Investment Attraction Prospectus to industry associations and chambers of commerce etc. 2.3 Investigate opportunities for job creation in new business being set up and run within/from ERA as the economy restructures away ERA 2014/2015 Staff time Advocate for ERA to be engaged in future jobs creation and economy restructuring programs. from manufacturing 2.4 Support traders to provide a greater customer experiences as part of the 'experience economy' Unley Ongoing BECs Work with ERA BECs to focus on service, relationship and digital economy workshops. 2.5 Support the development of infrastructure (e.g. Broadband) to support the growth in digital enterprise, teleworking and export Prospect/TTG 2014/2015 Staff time Review the ERA Digital Economy Strategy following federal review of broadband policy. markets 2.6 Provide digital training to SMEs ERA 2014/2015 Staff time/becs Work with BECs to secure funding. 2.7 Support home based and start up businesses by providing access to high tech facilities and infrastructure (e.g. video conferencing equip in a council libraries/digital hubs) in the absence of business incubators Unley / Prospect 2015/2016 Staff time Project plan required. CoU will progress for its LGA and model can be replicated and compile all our information. Need policy positions on access and fees/charges. Potential costs associated with promotion. 2.8 Advocate to State and Federal Governments to implement small business tax cuts and their own red tape reduction programs ERA 2015/2016 Staff time Work with the LGA, mindful of election cycles. 2.9 Work with the SA Exporters Association for the benefit of ERA, with a greater level of State and Commonwealth financial support 2.10 Encourage and contribute to the development of 2 3 year Business Plans for ERA BECs, endorsed by member councils. NPSP 2014/2015 Staff time To be commenced 2.11 Councils to provide three year funding commitment to ERA BECs linked to annual KPIs to provide greater certainty re sustainability ERA EBEC complete/ TTG tba ERA 2014/ /2018 Staff time Staff time ERA Councils are currently funding the BECs as their major support of small business. Funding comes from individual Councils recurrent operating budget and is not a ERA cost. Review funding models in accordance with the EBEC Business Plan Contingent on other levels of government funding 2

6 2.12 Adopt Renew Adelaide approaches to temporarily fill vacant premises, new pop ups etc Develop strategies to inform and/or influence property owners re premium retail mixes to keep vacancy rates low 2014 Eastern Region Alliance Economic Development Action Plan Unley/ NPSP/ Prospect 2015/2016 Renew Adelaide funding ($20,000) Renew Adelaide projects have previously been undertaken in NPSP and Prospect with success relationships established. ERA 2016/2017 External ($20,000) Develop retail mix strategies in consultation with other councils to ensure complementarity 2.14 Work towards amalgamating the services of the ERA BECs BECs 2014/2015 Staff time Eastside to provide small business advisory services & TTG through NEDA to provide training, across the whole ERA region Growing Relevant Industry / Sectors promote/lobby opportunity to work with ERA as trial/pilot sites for the growth industries that best serve ERA s interest (include FIG Projects) Prospect ongoing Staff time Support the development of pilot projects to drive ERA directions Modelling be undertaken to explore opportunity to effect stamp duty stamp duty reform Revisit Charter for ERA to facilitate ERA maturing / evolving to a higher level and make recommendations to the CEOs 2.18 Progress shared services initiatives including outsourcing opportunities 2.19 Quantify the cost efficiencies generated from shared services initiatives/collaboration 2.20 Provide seed funding to kick start initiatives resulting from strategies & BECs Prospect / TTG 2016/2017 ERA Finance Managers LGA Circular6.6 re stamp duty reform responses due 28 March PL responding for TTG. Burnside 2016/2017 Staff time Not commenced. Prospect ongoing Corporate Services Group SIG In progress. Seek new opportunities particularly for outsourcing. Prospect ERA Finance Managers Use to infom economic impacts. ERA 2016/2017 External ($10,000) Use funding as catalyst for projects that assist in driving the ERA strategies forward in regards to business support. 3

7 2014 Eastern Region Alliance Economic Development Action Plan Events, Tourism and Lifestyle (Lead Council Campbelltown) 2013/2014 $ /2015 $30, /2016 $10, /2017 $5,000 Total $45,000 Requirements Current Situation/Progress 3.1 Understand the economic development opportunities that is/could be derived from major master plans and placemaking ERA 2014/2015 External ($5,000) To be undertaken as part of desktop review as part of development of ERA Tourism Strategy. 3.2 Develop and promote a tourism strategy and brand for ther ERA region, including attractions and accommodation options 3.3 Programs and activities of respective councils be promoted regionally via an amalgamated events calendar 3.4 Seek to work collaboratively to maximise outcomes from events (e.g. better media and recognition for events within our region) 3.5 Develop an 'opportunities paper' for maximising the opportunities presented by creek tourism (Linear Park Torrens River and Creeks throughout ERA) 3.6 Further investigate economic development opportunities that can be derived from preventative health precinct pilot projects(s) (e.g. Ochre to Gold concept) ERA 2014/2015 External ($25,000) This would include development of a logo, marketing and communications strategy, and compilation of offerings. ERA 2015/2016 Staff time to maintain Outcome of ERA Tourism Strategy. ERA 2015/2016 External ($5,000) Outcome of ERA Tourism Strategy. Relevant councils 2015/2016 External ($5,000) Include in ERA Tourism Strategy (excludes Unley & Prospect but extends beyond eastern region). Campbelltown 2016/2017 Open Space SIG The ERA open space and recreational facilities group is working with the economic development group to further scope the potential for a Preventative Health Precinct pilot project using the Ochre to Gold model 3.7 Implement further outcomes from the ERA Tourism Strategy ERA 2016/2017 External ($5,000) TBA once strategy formed 4

8 2014 Eastern Region Alliance Economic Development Action Plan Education (Lead Council Tea Tree Gully) 2013/2014 $ /2015 $0 2015/2016 $5, /2017 $0 Total $5,000 Requirements Current Situation/Progress 4.1 Investigate education, training and reskilling opportunities for CTTG 2015/2016 BECs / State Govt / Not commenced. manufacturing workers (e.g. Holden workers) through facilities within ERA and/or BECs NC Understand the education mix in the east and assist organsiations ERA 2015/2016 staff investigations and Work with education providers to align employment so they can better support business and skill development in the region. possibly External $5,000 outcomes / opportunities in the east eg BECs, industry associations, schools associations, trade colleges, etc may involve desktop analysis project Water (Lead Council Walkerville) 5.1 Realise the anticipated benefits from the Stormwater Proofing the TOW East Project Requirements Water Project Group TOTAL ALLOCATIONS PER YEAR 2013/2014 $25, /2015 $40, /2016 $50, /2017 $35,000 Total $150,426 Current Situation/Progress 5

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