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This background analysis is extensively quoted as the basis for assumptions in the Industry Location and Tourism: Policy Paper.

PURPOSE Goal was to investigate significant issues affecting location and development of economic activities, and identify principles and guidelines for supporting growth, influencing its location and managing its impact. It is not an economic development or tourism strategy. Economic development means encouraging and facilitating businesses that provide wealth and jobs. Business location affects attractiveness of region and efficiency. Industry location also affects social costs and benefits. Thus means for Governments to plan and manage these issues is required.

PRESENT SITUATION Queensland has a high share of Australia's natural resources, and of agricultural and mining industries. Construction is also of above average size. Exports make a large impact (mainly of commodities though tourism now contributes 5% to GSP). Manufacturing which is domestically oriented, and serves mining and agriculture, is benefiting from increasing population and raw materials processing. Services are highly diversified, especially to meet the demands of agriculture, mining and tourism. Employment grew at 3.6% pa in the decade to 1990, especially in services, through both large and small businesses. SE Queensland is the major component of Queensland's economy, and activity concentrates in: business property and commercial services; retailing and warehousing; construction; and food. Brisbane dominates in employment. Aggregate statistics do not reveal the difference between wealth creating and wealth redistributing activities. Wealth generators are: agricultural and mineral production and processing; manufacturing; tradeable services; and tourism. Manufacturing includes 'base' industries serving the local markets, and niche producers for other markets. These concentrate in different locations. Important tradeable services include: consulting; finance; insurance; legal and brokerage services mainly concentrated in the CBD. Tourism is an industry in its own right which is widely seen as one of the 'economic performers' of the decade, especially for SE Queensland which attracts about 50% of activity in Queensland, especially at the Gold Coast.

EVALUATION OF PRESENT SITUATION There are already difficulties related to operational efficiency of regional economy from industry location and tourism viewpoint. Employment opportunities are not evenly distributed across the region. Many people work outside the local authority areas where they live, which increases costs and difficulties in finding work. Only Brisbane provided sufficient jobs for its resident workforce. Certainty of land supply is important to value adding industries. Conflicts are emerging over land uses. Availability of sites, rather than efficiency, increasingly affects industrial location. Potential sites are being found to have environmental significance, or suffering urban encroachment. Industrial location is also being restricted by infrastructure availability. Good access is also important for some industries. Services costs, road congestion, lack of transport corridors, and uncertain developer contributions are inhibiting planning. Land and building deficiencies are also critical infrastructure issues. Sustainability and environmental protection are increasingly affecting industrial location, and raising costs. New methods are making it hard to categorise compatible industries. Growth pressures are beginning to degrade land and scenery. There is a lack of authoritative information on likely future growth; performance standards; buffer areas; locational requirements of particular activities; information about uses for resources; and linkages between economic activities. Strategic and statutory planning schemes are not all consistent. Excessive use of environmental assessments is of concern. Land use constraints may need to be relaxed. SE Queensland's economic image is unsatisfactory being that of a site for branch operations and holidays. State and local co-operation is vital.

ECONOMIC AND EMPLOYMENT PROSPECTS SE Queensland has created jobs to match its population growth, but this might not continue (according to projections which show a requirement for an extra 438,000 equivalent full time (EFT) jobs in the region by 2011). Business expectations in 1990 showed only 48,000 additional jobs expected by 2001, showing a large shortfall. Household expenditures could generate an extra 110,000 EFT by 2001, leaving 99000 jobs required, if unemployment is also tackled. Unless major new employment opportunities are created there will be a large shortfall. Population growth will grow employment (especially in retail, entertainment, personal services, food manufacturing, wholesaling, insurance, business services. But this is insufficient, and the gap will be covered by: firms selling goods and services outside the region; tourism, education and training to visitors; and import replacement. Realistic options for further wealth generation include: value added manufacturing; technology, education and training; tourism and international events; international transport and distribution; and regional services. The State Development Policy Leading State recognised the need to develop: value added manufacturing; traded services; and tourism. 'Base' manufacturing industries can be expanded. Technology based, niche market industries can also be expanded. International tourism growth is estimated at 8.3% pa nationally, though not all agree. Domestic tourism growth is likely to be 2%pa. Leading State and QTTC strategies envisage high growth and increasing market share for Queensland, with large impact on income and employment. An input / output model shows the gains in output and employment, which 'region must be on its toes' to benefit from. Potential jobs from identified growth industries and from servicing population growth leave only a fairly small shortfall in 2011. Conclusion: None of the growth sectors is sufficient on its own, and all must be pursued. The planning task is to define how best to facilitate these and other wealth creating activities. Emphasis is required on overcoming poor existing distribution of available job opportunities and population. Land availability, and key sites, must be addressed for the region. Infrastructure is a constraint requiring action. Environmental issues are constraints which will worsen without attention. Information required for decision asking is inadequate, and institutions are achieving only limited collaboration between different levels of Government. There is confusion over roles, and over strategies of different bodies. Tourism requires accommodation and international transport facilities.

FURTHER INVESTIGATIONS Turning realistic economic futures into reality requires action by Government and the community to make region attractive for investment, which will then create wealth and jobs. This requires identifying economic opportunities which might be attracted, though this can not be completely certain. A clear vision would provide a useful framework for decisions. Data about the region and advice to potential investors is also required. Locational efficiency requires: a high level of accessibility; options for complementary activities to co-locate; close location of work and residential areas; better transport; public and private roles in infrastructure; and appropriate institutions. Retaining strategic land (eg for manufacturing or regional transport / warehousing) and managing land of strategic importance is required, as is ensuring the continued viability of land related production. Landuse compatibility can be achieved by strategic planning and performance guidelines, through consultation and impact assessment. Flexibility is also important, as is either permitting or restricting the mix of activities to meet particular needs. The roles of Government must be clear to provide certainty to investors. The State has a legitimate interest in major projects and facilities of regional significance. Local authorities have local jurisdiction, but must collaborate with others. Greater consistency in plans is required. Appropriate institutions are needed to achieve each of these goals as well as: promoting the region; actioning mutually reinforcing initiatives; prioritising initiatives; attracting key projects; and providing infrastructure.

POLICY OPTIONS Achieve desired futures by: identification of desirable futures (eg search workshops); provision of authoritative information (eg sharing information); compatibility of planning schemes (eg collaboration); advising and assisting investors (eg via a regional economic council). Maximise locational efficiency by: including economic / employment assessments in strategic plans; preserving strategic land (eg interim zonings); ensuring complementary uses (eg reviewing allowed uses, setting performance standards); ensuring adequate infrastructure (eg by State); and matching employment and workforce (eg job and residential targeting for broad acre developments). Retain strategic land by: identification of large strategic tracts of land (eg sub-regional council groups); reserving significant sites (eg restrictive zoning); retaining land for future use; preserving key attributes of land (eg management plans). Maintain land use compatibility by: minimising conflicts (eg broader zonings with performance standards); preserving area attributes (eg strategic planning); avoiding constraints on mixed uses (eg deeming compliance); allowing provision of services and facilities (eg reviewing restrictions on Crown Land); provision of independent authoritative advice (eg key university centres); and dispute resolution procedures (eg mediation). Clarify Government roles and ensure consistency between various levels of government (eg by legislation, signed protocols, agreed guidelines). Establish collaborative institutional frameworks (eg a regional economic council, special development authorities, increased state government co-ordination).