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. � $200 million extension of the Regional Infrastructure Development Fund will continue to deliver high quality infrastructure.
People are coming to Victoria '000 persons Population growth (%) 60 1.6 Australia (RHS) 50 1.4 40 1.2 Victoria (RHS) 30 1.0 20 0.8 10 0.6 0 0.4 Regional Victoria (RHS) -10 0.2 -20 0.0 -30 -0.2 Mar-94 Dec-95 Sep-97 Jun-99 Mar-01 Dec-02 Sep-04 Net interstate and overseas migration (LHS) Source: Australian Bureau of Statistics
Regional jobs • Since 1999, there have been more than 90,000 new regional jobs, more than double the amount of the previous Government ‘000 persons 700 Extra 90,000 jobs 650 600 Extra 40,000 jobs 550 500 450 Oct-92 Oct-93 Oct-94 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Source: ABS Source: Australian Bureau of Statistics
Regional Investment Facilitated 1995/96 to 2005/06 1200 1000 Investment ($m) 800 600 400 200 0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Projected * * Recent Ford investment not included Source: DIIRD
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. Mildura Marina Wetlands $5.3m Cohuna Industrial Estate $1m Supply of Natural Gas to the Macedon Ranges Bendigo Bank Civic Space $9m LaTrobe University Wodonga Freight Shepparton $6m Distribution Hub $16.2m Falls Creek All Seasons Plumpton Road Gateway $3.5m Industrial Estate $1.4m Lakes Entrance Vessel Service Point $2.8m Brambuk National Park & Cultural Centre $2.7m Sovereign Hill Tourism Infrastructure $3.8m Supply of Natural Gas to Paynesville Class A Water Treatment Gippsland Water Plant $2m Factory $140m Portland Multi Purpose Shiploader $15 m Supply of Natural Skilled Stadium Gas to Port Fairy Redevelopment $26m Supply of Natural Gas to South Gippsland
Growing Regional Building Approvals January 1999 to January 2006 Value of Approvals $ billion 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan. 2006 Year Ending Source: Building Commission
Victoria Building Approvals $m 9000 3600 domestic(LHS) 2700 6000 1800 commercial(RHS) 3000 900 0 0 1998 1999 2000 2001 2002 2003 2004 2005
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