Public Accounts & Estimates Committee Minister for State and - - PowerPoint PPT Presentation

Public Accounts & Estimates Committee

Minister for State and Regional Development Minister for Innovation June 2006

Focus of DIIRD

Challenges ahead require a sustained commitment: High Australian dollar, mining boom High energy prices – positioning for carbon constrained future Demographics Highly competitive market for -

• Skills
• Footloose investment

Development of the whole State DIIRD continues to focus on actions to build the economy as reflected in the Department’s output groups:

• Investment Attraction
• Trade Development
• Developing Innovative Industries
• Regional Development
• Marketing Victoria

Key Achievements in Investment Attraction

Increasing competition especially for large manufacturing investment. New investment facilitated in 2005/06 of $1,431.2 million (to May 2006). New investments include: Fonterra Cooperative Group ($15 million – 150 jobs) Ford Motor Company upgrade of operations ($1.8 billion – 273 jobs) SalesForce Australia ($4 million – 230 jobs) Aerospace Technologies of Australia ($16.2 million – 250 jobs) Hawker de Havilland Ltd ($175 million – 200 jobs) Australian Paper/PaperlinX – Maryville ($300 million – 180 jobs) Launch of International Business Centre Joint project with VECCI and City of Melbourne Over 35 Chinese companies already utilising facilities Signing of second Interstate Investment Cooperative Agreement Further 5 year agreement to prevent costly bidding wars

Key Achievements in Innovation

International linkages VISTECH (Victoria-Israel fund) Monash – UC-SD Agreement on Stem Cells Synchrotron – 8 partners contributing $40 million to beamlines STI Initiative - significant net positive contribution to the State. To June 2006 over $1,071 million of new investments facilitated in 62 strategic science and technology projects Second round cumulative economic impact analysis forecast 2000-2014:

• Real Gross State Product will be $3.9 billion higher
• Real investment in Victoria will be $1.2 billion higher
• Real private consumption in Victoria will be $1.2 billion higher
• An overall increase in employment of about 1700 jobs.

Healthy Futures: Life Sciences Statement

Healthy Futures builds on Victoria’s medical research and biotechnology strengths, boosting research infrastructure and outcomes for patients Our $230 million investment will leverage projects valued at $713 million

• Third party funds already leveraged – $30 million from Atlantic Philanthropies and

$120 million from the Commonwealth – all major projects fully funded

This investment will accelerate and expand research into cancer, mental illness, Parkinson’s Disease, stroke, infectious diseases - to name a few Ultimately this means new medicines, treatments and products so that Australians lead healthier longer lives and can make full contributions to our economy and community

Regional Development Achievement

Moving Forward: Provincial Victoria Statement Government’s policy statement Moving Forward will support regional councils, businesses and community organisations to meet new challenges such as: Managing population growth Adapting to changing industries Environmental challenges Demographic shifts $502 million of new actions building on the past 6 years of strong growth in provincial Victoria Twin Funds for Growth An entirely new $100 million – Provincial Victoria Growth Fund will drive economic and population growth. $200 million extension of the Regional Infrastructure Development Fund will continue to deliver high quality infrastructure.

People are coming to Victoria

• 30
• 20
• 10

10 20 30 40 50 60 Mar-94 Dec-95 Sep-97 Jun-99 Mar-01 Dec-02 Sep-04

• 0.2

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

Net interstate and overseas migration (LHS) Australia (RHS) Victoria (RHS) '000 persons Population growth (%) Regional Victoria (RHS) Source: Australian Bureau of Statistics

Source: ABS

Regional jobs

Source: Australian Bureau of Statistics

• Since 1999, there have been more than 90,000 new regional jobs,

more than double the amount of the previous Government

450 500 550 600 650 700 Oct-92 Oct-93 Oct-94 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05

Extra 90,000 jobs Extra 40,000 jobs

‘000 persons

Regional Investment Facilitated 1995/96 to 2005/06

* Recent Ford investment not included Source: DIIRD

Projected *

200 400 600 800 1000 1200

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Investment ($m)

Wodonga Freight Distribution Hub $16.2m Supply of Natural Gas to Paynesville Skilled Stadium Redevelopment $26m Sovereign Hill Tourism Infrastructure $3.8m Mildura Marina Wetlands $5.3m Supply of Natural Gas to the Macedon Ranges Bendigo Bank Civic Space $9m Supply of Natural Gas to Port Fairy Brambuk National Park & Cultural Centre $2.7m Class A Water Treatment Plant $2m Lakes Entrance Vessel Service Point $2.8m Gippsland Water Factory $140m Plumpton Road Industrial Estate $1.4m LaTrobe University Shepparton $6m

Regional Infrastructure Development Fund Projects

As at June 2006 the RIDF has contributed over $318 million to 111 projects. The total value of these projects is estimated to be more than $852 million.

Portland Multi Purpose Shiploader $15 m Cohuna Industrial Estate $1m Falls Creek All Seasons Gateway $3.5m Supply of Natural Gas to South Gippsland

Growing Regional Building Approvals January 1999 to January 2006

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan. 2006 Year Ending Value of Approvals $ billion

Source: Building Commission

Victoria Building Approvals

3000 6000 9000 1998 1999 2000 2001 2002 2003 2004 2005

$m

900 1800 2700 3600

domestic(LHS) commercial(RHS)