KEY ISSUES IN INDUSTRY LOCATION AND TOURISM

The Infrastructure Working Group of RPAG produced this Policy Paper of the SEQ 2001 Project in July 1993.

ISSUES Situation and Trends: The Industry Location and Tourism: Position Paper showed SE Queensland to need 438,000 equivalent new full time jobs between 1991 and 2011 (540,000 or 620,000 including existing unemployment under medium and high population projections respectively). Household expenditure can create 36% of these. The rest will come from: import substitution; export of goods and services; and tourist services. That paper showed potential growth in activities from pursuing economic prospects in: tourism and events; technology, education and training; value added manufacturing; international transport and distribution; and regional services. None are sufficient on their own. Issues to be Addressed: A Clear framework for economic development (which affect the types of economic activity to be attracted); avoiding mismatches between jobs and resident workforce (for economic efficiency, reduced transport costs); overcome shortages of serviced land (which are essential for efficiency of business and infrastructure); appropriate use of strategic sites; ensure planning system can handle emerging issues; and establish collaborative arrangements (to allow: region to be promoted; coherent responses to major proposals; and assistance packages to be negotiated). There could be dealt with at State, Regional, Subregional or local levels. A multi-faceted solution must involve: investigations; service provision; town planning; environmental management; financing; institutional arrangements; negotiating; information; and promotion.

POLICIES Framework for Regional Development: Wealth creating opportunities will only be achieved with clear vision, and authoritative economic information. Growth depends on investor's confidence that their businesses are welcome. Economic development strategies for the region (and each subregion) are required (ie business, government, unions and community groups should have common understanding of how area is seeking to position itself in world economy). Tourism has been identified as one key growth sector and requires a regional identity for SE Queensland. Reliable data is required to: prepare strategies; inform the planning process; and assist business decision making. This requires: establishing baseline data; assessing comparative advantages; interpreting international and local trends for their significance; and establishing criteria for industry targeting. Many different types of information are required: to eliminate myths; facilitate growth planning; allow regional marketing; advise investors. Raw information also needs far more interpretation than it presently receives if benefits are to be increased. More emphasis needs to be given to financial risk analysis, and to tourism data. A widely accepted framework for growth is required (for business and community confidence, availability of information, scope for efficient market operation and provision of infrastructure). This could be formed by: government agencies separately (status quo); co-operative arrangements amongst agencies (risking self interest); a single agency; local authority groups (which might divert work from consultants); or other agencies (risking self interest and diversion of work from consultants). Preferred arrangement involves: departments analysing trends; region wide strategies being formed co-operatively by departments and forums of councils; and analysis at subregional level. Balance between Jobs and Workforce: A broad mix of economic activity is required in each part of the region, and a match between jobs and resident population. This can also reduce transport infrastructure requirements. Options are: guide footloose business to high population growth areas (50% of jobs could be in high population growth areas by various means); ensuring major investors make good housing shortfall in their areas; planning for business sites and enterprise development in redevelopment areas (many of these areas are attractive locations if properly serviced, and 'seeding' methods for new enterprises are possible). Planners need to provide for: footloose and home based businesses; integrated business service centres at major regional centres; and integrated employment nodes near transport facilities. A State Planning policy or 'Economic Enhancement Zones' (involving incentives for investors) could be considered, together with Business and Service centres, and Community Attraction Complexes. Methods are thus required to: facilitate establishment of targeted activities; provide enterprise development, training and business advisory services; ensure site availability; and provide human services. Options include: promotional planning (least expensive but slow); strategic planning (enhancement of status quo); land banking (expand DBIRD past role); public / private partnerships (difficult to arrange); creation of semi-autonomous Development Authorities (for special cases). Preferred option is: strategic planning; statements of intent; supporting guidelines on jobs / workforce balance; and enterprise facilitation. Adequate Serviced Land: Must guide development to locations which are efficient as well as environmentally and community acceptable. Sites must be already available for niche markets with small window of opportunity. Sites with suitable characteristics are in short supply. Land must be provided by Government. Key land requirements are for: purposes constrained by transport / accessibility issues (eg raw materials supplies, market access, accessibility to special facilities or skills); and tourism (access to 'amenity', less dispersed). Land requirements for the region can be predicted and should be translated to subregional level. Suitable land is becoming scarce. Costs of land development need to be identified, along with requirements for large sites. Traditional methods of picking industrial land are now inappropriate. Community Attraction Complexes could be a solution to obtaining large land requirements for tourism in face of competing demands. Other facilities need to be properly located, and amenity retained through conservation of natural resources. Future growth areas need to be identified; subregional growth strategies to be formulated. Government must plan for an adequate supply of land, and the market must be free to supply it. Options are the same as for balancing jobs and resident population. Strategic planning and pro-active negotiations with developers is preferred, though government / private equity partnerships should be an option. Local authority strategic plans, and subregional development strategies are also needed. Appropriate Use of Strategic Sites: Some sites have scarce characteristics, which can be important to future economic growth, which should not be squandered. This includes such features as: attractive areas supporting tourism (beauty, environment); resources for wealth generating activities (value adding to resources); easy to service with key infrastructure (eg cheap energy, waste disposal); locations suitable for transport (and in vicinity of transport nodes); locations for 'difficult to locate' facilities (say) hazardous industries (to overcome amenity constraints, security, community sensitivity). Such sites need to be: identified; have special infrastructure precommitted; protected from 'zoning erosion'; and buffered. Some very large sites may be needed. A preliminary analysis indicates the importance of areas of Albert, Beaudesert and Moreton Shire. Areas impact studies of prospective locations should be undertaken. Options are for sites to be identified by: local authorities (enhancement of status quo); regional forums of councils (also requires agreement); state government departments (risks self interest); or an independent organisation (risks self interest). Preferred option involves collaboration amongst several bodies under auspices of body like RPAG, with results included in strategic plans. This should be supported by: State Planning policies; independent advice; declaration of 'Development Areas'; co-ordination of infrastructure; as well as management and marketing plans. Planning System and Emerging Landuse Issues: To compete for investment it is vital to: insure investor confidence; minimise delays; maximise value of co-location; and be flexible. Rather than supplying land 'anywhere' that particular characteristics are found, must respond to demand for land in particular locations and manage adverse impacts. To balance economic, environmental and social requirements, must include the latter in the strategic planning process. Market mechanisms fail to deal with environmental problems, requiring Government regulation. Mechanisms should be established for: managing the location of hazardous industries (zoning, performance standards, appropriate technology, pollution control); area impact assessments (prepared in advance for particular activities); environmental accounting (to balance gains and losses); and transferable emission rights and ambient permits (allows transfer amongst business to control cumulative problems). A pro-active and enabling planning environment is required, rather than one which is regulatory and restrictive. Performance based planning criteria are widely favoured, but difficult to implement. They could be considered for: home based businesses; mixed residential / business areas; business parks; and tourist attraction complexes. These would increase certainty for investors and planners. Activity based codes of practice might also be developed by industries with high growth prospects, and potential landuse problems. It is necessary to: tap public and private expertise on these issues; and obtain financing. It could be done by: individual local authorities (status quo); regional groupings (requires will and finance); state Government (as for State Planning Policies); or separate research groups (flexible). Preferred arrangement involves DHLGP and other departments, with input of outside advice and the use of best practice. Collaborative Arrangements: Collaboration allows problems to be solved which can be dealt with no other way. Mechanisms are required for public / private partnerships (to create positive investment environment by sharing information, preparing growth statements, advising investors etc); financing for strategic governmental initiatives (eg a Regional Economic Development and Adjustment Fund); and providing advice to governments and investors. Available options include: ad hoc groups (flexible, but hard to gain credibility); regional and subregional forums (potential conflicts in going beyond advisory role); standing advisory groups (formalising RPAG say); Tripartite task Forces; or Management Authority (devolution of powers and costly). A small advisory body with a high profile Chairperson is preferred. Standing Advisory Groups could be established to advise subregional Forums of councils, and Governments. Meetings of Government officials should be used to plan delivery of Government programs and services. A Tourist industry body needs to be established.

COMBINED ACTION PLANS: Recommendations, organisational responsibilities, and priorities are givesuggested for actions to: create a superior business environment by forming regional and subregional economic strategies; provide quality information; ensure balance of employment and minimal infrastructure costs through strategies and provision of key infrastructure; recognising and managing strategic sites; instil confidence in flexibility of planning system by managing location of 'difficult to locate' activities and use of performance planning procedures; recognise Government's community service obligation to address market failure by intergovernmental collaboration and establishing Regional Economic Development Fund.