Capes Regional Economic Development Strategy Shire of Augusta ...€¦ · used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given

Capes Regional Economic

Development Strategy

Shire of Augusta – Margaret River

Shire of Busselton

Regional Economic Development Program

Working Paper No. 6

Final Draft Report

September 2009

Capes Regional Economic Development Strategy Working Paper No. 6 - Final Draft Report

i

Document Control

Job ID: 15183

Job Name: CAPES REGION - Regional Economic Development Strategy

Project Director: Simon Smith

Project Manager: Michael Campbell

Company: Shire of Augusta – Margaret River

Shire of Busselton

Job Contact: Andre Schonfeldt / Paul Martin

Document Name: Capes REDS WP6 EDP Final Draft

Last Saved: 2/9/2009 9:27 PM

Version Date Reviewed PM Approved PD

Draft Report v1.0 26/8/2009 MC SS

Final Draft Report 2/9/2009 MC SS

Disclaimer:

Whilst all care and diligence have been exercised in the preparation of this report, the AEC Group Limited does not warrant the accuracy of the information contained within and accepts no liability for any loss or damage that may be suffered as a result of reliance on this information, whether or not there has been any error, omission or negligence on the part of the AEC Group Limited or their employees. Any forecasts or projections used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given that a particular set of results will in fact be achieved.


ii

Executive Summary

Background

The Shires of Augusta – Margaret River and Busselton have embarked on the

development of a regional economic development strategy for the Capes Region. This

report represents the sixth working paper contributing to the overall strategy.

Capes Regional Economic Development Program

The Capes Regional Economic Development Program is the implementation of the Capes

Regional Economic Development Strategy (Working Paper No. 5).

Figure E.1. Capes Regional Economic Development Strategy

Source: AECgroup.

• Assist local businesses to expand• Assist local businesses to find local solutions• Promote and encourage local events• Promote local industries

Mission 1: Growing Existing

Businesses

• Develop marketing material • Identify and engage with potential investors• Facilitate investment from new businesses

Mission 2: Attracting New

Businesses

• Encourage regional planning policies and regulations

• Advocate for infrastructure provision• Encourage workforce development

Mission 3: Supporting

Economic Growth

Goal: To grow the individual sectors (cluster participants) and increase the linkages between them.

Capes Regional Economic Development Strategy

Economic IndicatorsEmployment• Total employment• Unemployment rate• Average wage• Per capita incomeGRP• GRP growth• GRP by industryPrivate Business Investment• Value of building work• Number of bldg permits


iii

Table E.1: Capes Regional Economic Development Program

Activity Target / Goal Timing

Mission 1: Growing Existing Businesses

1.1 Assist local businesses to expand

Engage specifically with local businesses within key sectors (build relationships, identify issues, promote expansion) 36 meetings Annually

Meet with AusIndustry and State Government Departments regarding existing programs to support business 5 meetings Annually

Engage with Chambers of Commerce and Small Business Centre Vasse on a quarterly basis 4 meetings Annually

Engage with industry groups and associations (MRWIA, Tourism Associations, Ag/Food industry associations) to promote growth and identify regional industry issues

6 meetings Annually

Promote greater exports from the region through engaging with Austrade and bilateral chambers of commerce and hosting events to promote local products

2 events Annually

Conduct a rejuvenation project plan for the August Town Centre to encourage greater tourism and retail spending Complete Year 1

Conduct a rejuvenation project plan of the Busselton CBD to encourage greater tourism and retail spending Complete Year 1

Research for a university to co-develop a business case for a business hub of economic development and skilled training (incubator with Uni) Complete Year 2

1.2 Assist local businesses to find local solutions

In conjunction with Chambers of Commerce, establish regional network of existing companies to provide local solutions for local companies (database of local suppliers)

Complete Year 1

Through regional network, make business introductions to provide local solutions for local companies (prevent economic “leakage”) 5 introductions Annually

Assemble a list of regional food produces including products offered, capacity, seasonal variety and contact details and circulate to restaurants for reference

Complete Annually

1.3 Promote and encourage local events

Collect a comprehensive list of events in the region Complete Annually

Promote and support events that benefit the region On-going Annually

Encourage regional markets by supporting the growth of local markets to take place across the region 1 seasonal market Year 1

1.4 Promote local industries

Promote tourism aspects of region on Shire websites Complete Annually

Provide links to both tourism associations on Shire websites Complete Year 1

Provide support to tourism associations and others to market the region for tourism On-going Long-term

Encourage participation with Tourism WA initiatives to promote the region Participate in 3 initiatives Year 1

Advocate for broader international tourism marketing through Geographe Bay Tourism Association (GBTA) and Margaret River Tourism Association (MRTA) by meeting with Tourism WA, Tourism Australia, WATO and Austrade

4 meetings Year 1

Identify economic development opportunities through sister city relationships for exchange student programs, business trade links and tourism Complete Year 1

Consider the development of a nationally recognisable annual event on either side of the typical tourism season in order to lengthen the visitor season

1 event Long-term

Work with local companies with the execution of marketing trips to the Perth market for regional “Margaret River” produce Conduct 2 trips Annually

Work with partners to organise an event to bring various buyers to the region to experience the products Complete one event Annually


iv


Mission 2: Attracting New Businesses

2.1 Develop marketing material

Develop and maintain a regional business location profile for marketing purposes Complete Annually

Develop and maintain marketing information (1-2 pages) for identified industry opportunities (Food & Beverage, Agriculture, Furniture Crafts and Art, Aged Care, Property Business and Financial Services, Renewable Energy)

Complete Annually

2.2 Identify and engage with potential investors

Meet with WA Dept. of State Development – Investment Attraction unit 1 meetings Annually

Meet with Dept. of Agriculture and Food WA regarding attraction of food and beverage processors 2 meetings Annually

In conjunction with Small Business Centre Vasse, encourage entrepreneurship and support start-up companies 4 meetings Annually

Together with partners, conduct research to identify prospective investors currently active in indentified industry opportunity sectors (Food & Beverage, Agriculture, Furniture Crafts and Art, Aged Care, Property Business and Financial Services, Renewable Energy)

Identify 100 companies Annually

Send marketing material to prospective investors in identified industry opportunity areas via email/post/telephone/in-person Contact 100 companies Annually

2.3 Facilitate investment from new businesses

Provide customised information packages to prospective investors containing detailed information pertaining to their project (specific sites/areas, workforce, similar companies, support companies, DA approval checklist, etc.)

On-going Annually

Organise and host site visits to the region for prospective investors On-going Annually

Mission 3: Supporting Economic Growth

3.1 Encourage regional planning and policies

Encourage planning departments for both shires to meet and discuss opportunities for synergies in policies and regulations for the key growth opportunities

2 meetings Annually

Review Capes regional signage policy to ensure consistent signage that provides a seamless tourism experience Complete Year 2

Establish a business advisory group for the Capes region to meet quarterly 4 meetings Annually

Develop a customer friendly DA approval process with clear definition of the process and timelines as well as guaranteed turnaround times On-going Long-term

Conduct pre-lodgement meetings for key developments delivering desired outcomes and economic benefits to the community On-going Long-term

Consider the development of an incentive policy for economic development in the Capes region by examining different types of incentives and the costs and benefits associated with each

Complete Year 2

Meet with SW Development Corporation on a quarterly basis 4 meetings Annually

Celebrate successes by producing news releases and promoting good news stories in regular community correspondence 6 stories Annually

3.2 Advocate for infrastructure provision

Conduct quarterly trips to Perth to conduct meetings with State and Commonwealth officials regarding the infrastructure needs of the region Conduct 4 trips Annually

Host senior State and Commonwealth officials in the region for tours and discussions regarding the needs of the region 1 event Annually

Proactively provide insight and advice to guide future infrastructure projects (road, rail, foreshore redevelopments, CBD rejuvenation, etc.) by providing economic development priorities and input, including job growth considerations, business case, etc.

On-going Long-term


v


Develop business case for the expansion of the airport (including economic and social benefits) Complete Year 1

Develop business case for the provision and upgrading of telecommunications infrastructure in the Capes region Complete Year 1

Investigate the option of investing in local renewable power generation Complete Year 1

3.3 Encourage workforce development

Meet with workforce development providers to discuss synergies and programs (TAFE, RTOs, Universities, etc.) 5 meetings Annually

Jointly with local training providers and restaurants, explore options for the establishment of an international/national culinary institute in the Capes region

On-going Long-term

Source: AECgroup.

This program should be monitored and measured on an annual basis and adjusted accordingly to account for the success of the previous year,

changing market dynamics and new opportunities that arise.

By carrying out this program, the Shires of Augusta – Margaret River and Busselton can implement the Capes Regional Economic Development

Strategy and provide for a sustainable and prosperous future for residents.


vi

Table of Contents

DOCUMENT CONTROL .......................................................................................... I

EXECUTIVE SUMMARY ........................................................................................ II

TABLE OF CONTENTS......................................................................................... VI

1. INTRODUCTION .......................................................................................... 1

1.1 BACKGROUND .................................................................................................. 1 1.2 STRUCTURE OF THIS PROJECT ................................................................................ 1 1.3 SCOPE OF THIS REPORT ....................................................................................... 1

2. CAPES REGIONAL ECONOMIC DEVELOPMENT PROGRAM ............................. 2

2.1 ROLE OF THE SHIRES .......................................................................................... 2 2.2 DELIVERING THE ECONOMIC DEVELOPMENT STRATEGY ................................................... 3 2.3 PROGRAM OVERVIEW .......................................................................................... 3

2.3.1 MISSION 1: GROWING EXISTING BUSINESSES .................................................. 4 2.3.2 MISSION 2: ATTRACTING NEW BUSINESSES ..................................................... 4 2.3.3 MISSION 3: SUPPORTING ECONOMIC GROWTH .................................................. 5

2.4 PROGRAM DETAILS ............................................................................................ 6 2.4.1 MISSION 1: GROWING EXISTING BUSINESSES .................................................. 6 2.4.2 MISSION 2: ATTRACTING NEW BUSINESSES ................................................... 10 2.4.3 MISSION 3: SUPPORTING ECONOMIC GROWTH ................................................ 12

2.5 MONITORING AND MEASURING ............................................................................. 15 2.6 EXECUTION ................................................................................................... 15

3. RECOMMENDATIONS ................................................................................. 16


1

1. Introduction

1.1 Background

The Shires of Augusta – Margaret River and Busselton (the Capes Region) covers some

20 townsites across 3,800 square kilometres. The region has experienced population

growth of around 5% per annum in recent years, with in excess of 40,000 people now

residing in the Shires of Augusta – Margaret River and Busselton. Population growth is

expected to remain high into the future with the Capes Region a major sea change

destination.

The rapid population growth has resulted in a significant change in both the community

demographic and industry structure of the region. The regional economy has shifted

away from its traditional agricultural base to one where tourism is a significant employer,

while the population growth resulting from the sea change community has increased

demand for community services and facilities.

Externally, climate change, current financial crisis and continued globalisation are

continuing to impact the region. Internally, beyond the population growth pressures

there are numerous local issues regarding jobs, economic growth and specific industry

trends and pressures. In order to successfully provide a sustainable future that

addresses these challenges and maintains the current standard of living, a

comprehensive economic development strategy for the Capes Region is needed.

1.2 Structure of this Project

The Capes Regional Economic Development Strategy has been developed in different

stages. These stages link together and build on one another as demonstrated below.

Figure 1.1. Project Structure

Source: AECgroup.

1.3 Scope of this Report

This report represents the sixth stage of the project and outlines the regional economic

development program to implement and deliver the strategy.

Specifically, this report discusses:

• Role of the Shires in economic development;

• An overview of the economic development program across the three missions of the

strategy;

• Specific activities for the Shires to carry out to implement the strategy;

• Specific targets for the activities (including priority and timelines); and

• Recommendations for the execution of the economic development program.

1• Working Paper 1: Regional Economic Profile

2• Working Paper 2: Vision, Focus Areas and Growth Projections

3• Working Paper 3: Industry Plans

4• Working Paper 4: Capes Regional Cluster Model Framework

5• Working Paper 5: Capes Regional Economic Development Strategy

6• Working Paper 6: Capes Regional Economic Development Program


2

2. Capes Regional Economic Development

Program

The Capes Regional Economic Development Strategy’s vision is

Building on regional and sectoral advantages, the Capes Region seeks to

promote economic growth, diversity and sustainability to enable choices in

employment, business and lifestyle.

The strategy provides a long-term framework and direction for economic development.

While it is important to have long-term vision and a strategy to achieve that vision, it is

imperative to have a practical, operational program to deliver the activities and actions

on-ground that will make the vision for the future a reality. The Capes Regional

Economic Development Program can become the annual operating economic

development plan for the Shire of Augusta-Margaret River and the Shire of Busselton.

Beyond the specific activities outlined to provide real, tangible results for the community,

the program has been designed to be an effective planning tool for economic

development. It is set up to provide a basis for budget planning and it should be

evaluated every year versus the success of the previous year and amended as needed.

Furthermore, the activities are within the bounds of Shire control and are set up to have

achievable targets and goals.

The Capes Regional Economic Development Program was designed with extensive

consultation, including 57 individual interviews, with various businesses, industry and

community groups in the Capes region and engagement with the project steering

committee. The stakeholder group included businesses from every sector in the cluster

model framework and represented a broad geographic spectrum from across the region.

2.1 Role of the Shires

When conducting economic development, it is important for both the Shire of Augusta-

Margaret River and the Shire of Busselton not to interfere with private sector businesses

or duplicate activities currently undertaken by another government or community

organisation. The Shires should seek to positively impact and encourage economic

development.

Through consultation with the community, the following roles for the Shires in economic

development were identified as appropriate, required and necessary to encourage future

economic growth in the Capes region:

• Planning;

• Facilitation;

• Coordination;

• Advocacy; and

• Promotion.

All of the activities in the economic development program have been designed using

these defined roles as guidelines. As such, the economic development program fulfils the

Shires’ responsibility to the community for economic development, while at the same

time, not interfering with private business.


3

Table 2.1: Role of the Shires for Economic Development

Role What it means

Planning for the future Proactive planning to work with businesses to encourage investment and employment growth

Facilitate growth Become a catalyst for economic and business growth in the region

Coordinate activities Assist and support in the coordination of regional activities and events

Advocate for infrastructure

Proactively encourage further investment from State and Commonwealth Government into infrastructure for the region

Promote the region Promote the region as a destination for tourism as well as a place for business

Source: AECgroup.

2.2 Delivering the Economic Development Strategy

The Capes Regional Economic Development Strategy will utilise the cluster model

framework and be delivered across the following three missions:

• Mission 1: Growing Existing Businesses;

• Mission 2: Attracting New Businesses; and

• Mission 3: Supporting Economic Growth.

These missions will guide the specific Shire’s activities and tasks of the program and

provide for the implementation of the strategy. Successful completion of the program

should contribute positively to the economic development of the region and growth in the

economic indicators.

Figure 2.1. Capes Regional Economic Development Strategy

Source: AECgroup.

2.3 Program Overview

This economic development program is built on the understanding that effective and

active relationships are needed in order for the Shires to conduct economic development

activities. As mentioned in the Capes Regional Economic Development Strategy (Working

Paper No. 5), partnerships are an important part of the economic development process.

At the same time, there are specific goals/targets set for each task as well as a relative

time frame. The majority of the activities and tasks are meant to occur on an annual

basis and therefore have annual goals/targets. These activities should be evaluated

every year based on the performance of the previous year. A decision must be made to

continue these activities based on this past performance. Other activities are considered

necessary only in the first year, as they often regard the establishment of a program or

• Assist local businesses to expand• Assist local businesses to find local solutions• Promote and encourage local events• Promote local industries

Mission 1: Growing Existing

Businesses

• Develop marketing material • Identify and engage with potential investors• Facilitate investment from new businesses

Mission 2: Attracting New

Businesses

• Encourage regional planning policies and regulations

• Advocate for infrastructure provision• Encourage workforce development

Mission 3: Supporting

Economic Growth

Goal: To grow the individual sectors (cluster participants) and increase the linkages between them.

Capes Regional Economic Development Strategy

Economic IndicatorsEmployment• Total employment• Unemployment rate• Average wage• Per capita incomeGRP• GRP growth• GRP by industryPrivate Business Investment• Value of building work• Number of bldg permits


4

an activity that can only be performed once. Some activities are considered

“foundational” and should be seen as on-going activities where the Shires should strive

for continual improvement. Finally, there are activities that can only be accomplished

over the long-term, where incremental progress should be sought year after year.

This program is also designed to correspond to a budget. In its current form, it would be

very easy to transfer these activities into a format where a budget line item could be

linked to every activity. In such a way, this program offers an economic development

planning tool by linking the budget to specific activities which directly relate back to the

economic development strategy. Additionally, this tool can also be used for human

resource allocation by estimating how much time is needed to complete each task. By

being able to compare budget and human resource allocation, the Shires can more easily

identify aspects of the program that they can delegate to outside consultants or partners.

2.3.1 Mission 1: Growing Existing Businesses

Strategy Goal: To grow the individual sectors (cluster participants) and increase the

linkages between them.

Mission 1 Objective: To assist local businesses to grow (which will grow the individual

sectors and increase linkages between them).

Rationale: Existing businesses are the cornerstone of any economy. As a general rule,

they are responsible for 60%-80% of total new jobs generated in an economy as well as

the majority of capital investment. Assisting local businesses to expand will contribute to

achieving the goal of the strategy.

In order to grow existing businesses, the following key activities will be carried out:

• Local businesses will be provided access to services to assist in expansion activity;

• Local businesses will be linked together to provide local solutions for local demand

(decreasing economic leakage from the region);

• Local events will be promoted and encouraged to increase the exposure of local

businesses and assist with connecting to potential customers; and

• Local industries will be promoted from the Capes region.

These key activities are explained in more detail, including specific tasks for each activity,

in Section 2.4.

2.3.2 Mission 2: Attracting New Businesses



Mission 2 Objective: To attract new businesses to the region (which will grow the

individual sectors and increase linkages between them).

Rationale: Attracting new businesses to a region can add to the diversification of the

local economy as well as increase the specialisation of an industry sector. Attracting new

businesses is a key component to the Capes Regional Cluster Model Framework and

contributes to achieving the goal of the strategy.

In order to attract new businesses, the following key activities will be carried out:

• Specific marketing material regarding the economic character of the Capes Region

and the specific industry opportunities will be developed;

• A business development and marketing program to identify and engage with

prospective investors will be developed and executed; and

• New investments will be facilitated by the Shires to assist new businesses to develop.

These key activities are explained in more detail, including specific tasks for each activity,

in Section 2.4.


5

2.3.3 Mission 3: Supporting Economic Growth



Mission 3 Objective: To support economic growth in the Capes Region (which will

contribute to growing the individual sectors and increasing the linkages between them).

Rationale: Supporting economic growth is a general requirement for local governments.

Through the provision of planning instruments and regulations as well as the provision of

infrastructure, local governments can support economic growth. By supporting economic

growth across the Capes Region, the Shires can contribute to the goal of the strategy and

produce an environment conducive and supportive of economic development.

In order to support economic growth, the following key activities will be carried out:

• Encouragement of greater symmetry between Shire planning policies and regulations

across the Capes Region;

• Advocating for further infrastructure provision from state and Commonwealth

Governments; and

• Encouragement of greater workforce development across the region to deliver the

skills needed to grow and diversify.

These key activities are explained in more detail in the following pages, including specific

tasks for each activity, goals/targets and timing.


6

2.4 Program Details

2.4.1 Mission 1: Growing Existing Businesses


Mission 1: Growing Existing Businesses

1.1 Assist local businesses to expand

Engage specifically with local businesses within key sectors (build relationships, identify issues, promote expansion) 36 meetings Annually

Meet with AusIndustry and State Government Departments regarding existing programs to support business 5 meetings Annually

Engage with Chambers of Commerce and Small Business Centre Vasse on a quarterly basis 4 meetings Annually

Engage with industry groups & associations (MRWIA, Tourism Associations, Ag/Food industry associations) to promote growth and identify regional industry issues

6 meetings Annually

Promote greater exports from the region through engaging with Austrade and bilateral chambers of commerce and hosting events to promote local products

2 events Annually

Conduct a rejuvenation project plan for the August Town Centre to encourage greater tourism and retail spending Complete Year 1

Conduct a rejuvenation project plan of the Busselton CBD to encourage greater tourism and retail spending Complete Year 1

Research for a university to co-develop a business case for a business hub of economic development and skilled training Complete Year 2

1.2 Assist local businesses to find local solutions

In conjunction with Chambers of Commerce, establish regional network of existing companies to provide local solutions for local companies (database of local suppliers)

Complete Year 1

Through regional network, make business introductions to provide local solutions for local companies (prevent economic “leakage”) 5 introductions Annually

Assemble a list of regional food produces (including products offered, capacity, seasonal variety, contact details) and circulate to restaurants Complete Annually

1.3 Promote and encourage local events

Collect a comprehensive list of events in the region Complete Annually

Promote and support events that benefit the region On-going Annually

Encourage regional markets by supporting the growth of local markets to take place across the region 1 seasonal market Year 1

1.4 Promote local industries

Promote tourism aspects of region on Shire websites Complete Annually

Provide links to both tourism associations on Shire websites Complete Year 1

Provide support to tourism associations and others to market the region for tourism On-going Long-term

Encourage participation with Tourism WA initiatives to promote the region Participate in 3 initiatives Year 1

Advocate for broader international tourism marketing through Geographe Bay Tourism Association (GBTA) and Margaret River Tourism Association (MRTA) by meeting with Tourism WA, Tourism Australia, WATO and Austrade

4 meetings Year 1

Identify economic development opportunities through sister city relationships for exchange student programs, business trade links and tourism Complete Year 1

Consider the development of a nationally recognisable annual event on either side of the typical tourism season in order to lengthen the visitor season

1 event Long-term

Work with local companies with the execution of marketing trips to the Perth market for regional “Margaret River” produce Conduct 2 trips Annually

Work with partners to organise an event to bring various buyers to the region to experience the products Complete one event Annually


7

By engaging with existing businesses in key sectors, the Shires will develop stronger

relationships with their local businesses. At the same time, any current issues impeding

growth can be discussed and addressed as well as any opportunities for expansion. By

having strong relationships and a network of existing companies, the Shires is also able

to make introductions as necessary to ensure that local demand for goods and services is

being met with local supply. There are numerous business support programs from the

State and Commonwealth government and the Shires can also assist local businesses

that are interested in expanding to gain access to these programs. The Shires should

also keep abreast of the latest programs by meeting regularly with AusIndustry and State

Government agencies.

Through regular engagement with the Chambers of Commerce and the Small Business

Centre Vasse, the Shires can also maintain close relationship with local businesses.

These groups can make the Shires aware of emerging issues as well as opportunities for

growth. Industry associations like the Margaret River Wine Industry Association

(MRWIA), Geographe Bay Tourism Association (GBTA), Margaret River Tourism

Association (MRTA), Margaret River Regional Producers Association, Western Australian

Famers Federation and other industry associations should be contacted on a regular

basis. These partners can also assist with the implementation of other aspects of the

economic development program, so strong relationships are necessary.

Increasing exports from the region can offer local businesses avenues to expand

revenues and grow. Not every company should export their goods and services, but the

Shires can assist those who can by promoting exports. Austrade is the Commonwealth

organisation charged with promoting Australian products abroad. Shire activities should

not overlap with this service but leverage it. Austrade should be an active partner in

economic development and the appropriate contacts within Austrade should be

encouraged to visit the region and meet with local companies considering export. At the

same time, Austrade often brings delegations of international companies into Australia to

meet with potential suppliers. Where appropriate, these missions should be encouraged

to visit the Capes region. At the same time, export promotion can be encouraged

through working with bilateral chambers of commerce. These international chambers

should be engaged to determine their ability to promote the good and services of the

Capes region in their home country. Where appropriate, these international chambers

should visit the region to meet with local companies. By encouraging delegations of

foreign companies seeking Australian products to visit the region and meet with

companies, the Shires can encourage exports from the region.

The Shire of Augusta – Margaret River should consider a rejuvenation project for the

main street of Augusta. This project would consider how to rejuvenate the streetscape

together with the businesses on the main street in an attempt to capture more of the

passing tourists that visit the Augusta Lighthouse (estimated at 125,000 per year).

These projects require adequate planning, time and funding to complete. For the first

year, the Shire of August – Margaret River should strive to complete the project plan,

which would include community consultation, landscape design concepts and economic

analysis.

The Shire of Busselton should consider a rejuvenation project for the Busselton CBD.

This project would seek to rejuvenate the CBD and provide future planning for the centre.

This project would attempt to leverage the Jetty Rejuvenation and Foreshore

Redevelopment to capture more of the retail spending for the local area. The project

would seek to conduct detailed urban design and landscaping to promote and encourage

people to spend time in the CBD. Additionally, economic analysis can provide guidance

for retail spending, current gaps and future demand for retail and commercial space

requirements. The Shire should seek to complete the project plan in Year 1, with

implementation over subsequent years.

Together with a University, the Shires should consider the development of a business

case for a business hub for economic development and skilled training. This business

incubator would not only leverage university staff to assist with the development of new

businesses but also provide specialised training to develop highly skilled workforce. For

the business incubator, the Small Business Centre Vasse should also be consulted.

Together with the Chambers of Commerce, the Shires should develop a regional network

of local businesses. These businesses could be captured in a database that could be used

to find goods and service providers locally. There are many ways to capture this data


8

and generate a regional directory of businesses. The important aspect is that the

information is easily kept up to date and provides a quick reference guide for products

and services. In essence, this directory can become a guide for business to business

referrals. This information could provide the Shire with the ability to make introductions

between businesses to ensure local businesses find local solutions.

The Shires should generate a comprehensive list of local agricultural producers including

their contact details, products offered, capacity and seasonal variety. This list can be

distributed amongst local restaurants to encourage them to purchase locally. Many

restaurants currently purchase local produce, but this directory would encourage greater

local purchases by providing information across the entire suite of products available. In

such a way, this activity would encourage expansion of the existing linkages between the

local agricultural sector and the accommodation, restaurants and cafes sector.

There are already numerous events, festivals, markets and other activities that bring

together many of the local artists, wine producers, food producers and other local

companies. However, the Shires can assist to coordinate and help promote all of these

events to a broader base of potential customers, including tourists and local residents.

The Shires can collect a comprehensive list of activities, together with partners, and then

post these events to their websites. Additionally, the Shires can consider promoting

these events through their regular news outlets, such as newsletters. Many of these

events are organised through the time and effort of volunteers, farmer’s market in

Margaret River for example. The Shires can potentially assist events that benefit the

region by allocating staff time to assist with the organisation of events or markets. At

the same time, by growing some local events, the Shires could encourage stronger

regional events. For example, regular farmers markets are held currently across the

region. The Shires should investigate the opportunity to provide a seasonal farmers

market on a regional scale, in order to promote seasonal produce. Alternatively, the

Shires could look at creating a signature market in the region, which could become a well

known attraction for tourists as well.

Events where local artists, wine and food producers can display and promote their goods

in retail centres should be promoted and encouraged. These events encourage greater

linkages between these industry sectors and assist local businesses to promote and sell

their goods. If both Shires determine there is need for additional such events, they

should work together with existing partners to organise and execute the events. The

Shires may wish to consider if any existing events could function as regularly occurring

events, and as such become part of the ongoing tourism experience of the region.

The tourist season provides a tremendous amount of activity in the region, while outside

of this time frame, many of the businesses geared towards tourism must suffer through a

period of low revenues. Any extension of the peak tourist season (on either side) would

be a boost to many local businesses. The Shires should consider the development of a

large, nationally recognisable event on either side of the tourist season that could be

used to lengthen this “busy” season. Examples of a signature event could be a golf

tournament, music festival or another unique community experience. Naturally, this kind

of an event can only be developed over the long term but efforts should be made to

progress the idea on an annual basis.

As tourism is an important industry sector for the regional economy, the Shires should

promote the region as a tourist destination. At the same time, it is important not to

duplicate efforts of other organisations to promote the area as well. The Shires should

develop information on their websites regarding the tourism offering in the region. The

website should also provide links to the tourism associations. As much as possible this

should be a joint effort of both Shires and contain the same information. At the same

time, the Shires should provide support to other organisations that conduct marketing

and promotion activities to increase visitation to the region. For example, both tourism

associations (GBTA and MRTA) conduct marketing for the region. The Margaret River

Wine Industry Association also conducts events to promote wine tourism. These

activities should be supported by the Shires. Since the Shires are also a tourism operator

(through the operation of various attractions across the region), the Shires stand to gain

financially from increased tourism in the region. The Tourism Task Force is currently

considering how the region can work together to promote tourism in the Capes region.

The Shires should continue these efforts and seek to work collaboratively on tourism

marketing and promotion.


9

Given the strong dependence on the Perth market for visitors, the Shires should also

engage with the GBTA and MRTA regarding broadening marketing efforts to the East

Coast and international markets. The local associations can then engage with Tourism

WA, Tourism Australia, among others to devise further programs and plans. Sister city

relationships could also be an avenue to promote greater economic development and

tourism through exchange student programs, business trade links and tourism

marketing.

Many of the locally produced food products come from small companies (often businesses

with only 1-2 employees). These businesses often struggle between producing their

quality products (food and agricultural products) and then marketing these products.

Together with the Margaret River Regional Producers Association, the Shires could

coordinate marketing trips to food stores and chains in the Perth area. The Shires could

allocate staff resources to identify and contact the appropriate stores in Perth (and other

parts of WA), coordinate the collection of samples to produce a “Margaret River Basket”

and accompany a representative of the Margaret River Regional Producers Association to

the meetings. At no time would Shire staff be involved in the “selling” of products, which

can and should only be the function of the private business representative. The Shire

staff are simply there to support these efforts and allow the local industry to promote and

sell its products.

The Shires should work with local businesses to identify and generate a list of buyers for

the wide range of local products including wine, beer, cheese, yogurt, coffee, chocolate

and other food products. The Shires could then organise an event to promote all of the

local products to these buyers. The event would offer the “Margaret River Experience”

and assist in the promotion of these products by allowing the buyers to experience the

area. A central location would offer a forum for all the buyers to experience the diverse

range of products that the region has to offer.


10

2.4.2 Mission 2: Attracting New Businesses


Mission 2: Attracting New Businesses

2.1 Develop marketing material

Develop and maintain a regional business location profile for marketing purposes Complete Annually

Develop and maintain marketing information (1-2 pages) for identified industry opportunities (Food & Beverage, Agriculture, Furniture Crafts and Art, Aged Care, Property Business and Financial Services, Renewable Energy)

Complete Annually

2.2 Identify and engage with potential investors

Meet with WA Dept. of State Development – Investment Attraction unit 1 meetings Annually

Meet with Dept. of Agriculture and Food WA regarding attraction of food and beverage processors 2 meetings Annually

In conjunction with Small Business Centre Vasse, encourage entrepreneurship and support start-up companies 4 meetings Annually

Together with partners, conduct research to identify prospective investors currently active in indentified industry opportunity sectors (Food & Beverage, Agriculture, Furniture Crafts and Art, Aged Care, Property Business and Financial Services, Renewable Energy)

Identify 100 companies Annually

Send marketing material to prospective investors in identified industry opportunity areas via email/post/telephone/in-person Contact 100 companies Annually

2.3 Facilitate investment from new businesses

Provide customised information packages to prospective investors containing detailed information pertaining to their project (specific sites/areas, workforce, similar companies, support companies, DA approval checklist, etc.)

On-going Annually

Organise and host site visits to the region for prospective investors On-going Annually


11

In order to promote the Capes region as a business destination, the Shires should

develop joint marketing information including a regional location profile (approximately

10-12 pages) containing a variety of general information on the region as well as industry

profiles (approximately 1-4 pages) highlighting the specific capability and opportunity in

specific industry sectors (Food & Beverage, Agriculture, Furniture Crafts and Art, Aged

Care, Property Business and Financial Services, Renewable Energy). This information

should be available in hard and soft (electronic PDF) versions. The electronic versions

need to be available on-line and for download from the Shire websites. This information

should be updated on an annual basis.

The Shires should arrange to meet with the WA Department of State Development

(Investment Attraction unit) to discuss the competitive advantage and opportunities for

growth in the region. This investment attraction group would regularly engage with

prospective investors considering WA as a potential location. By keeping them informed

of the opportunities (including specific available sites and any incentives that may be

offered in the future) and forming strong relationships with the unit, the Shires can

promote the Capes region as a location for new businesses. At the same time, the

Department of Agriculture and Food WA also investigates new opportunities for

investments in food processing sector. Similarly, by working together with this

organisation, the Shires can promote the region as a location for new food manufacturing

businesses. New businesses can also be attracted to the area in the form of start-up

companies. To encourage entrepreneurship and new companies, the Shires should work

cooperatively with and support the Small Business Centre Vasse, which currently

provides a wealth of services to small business and start-ups.

Together with partners, Council should seek to identify prospective investors currently

active in the industry areas of opportunity (Food & Beverage, Agriculture, Furniture

Crafts and Art, Aged Care, Property Business and Financial Services, Renewable Energy).

The Shires can identify companies through conducting internal research, purchasing

subscriptions to industry publications or through external research. These efforts need to

be closely aligned with those of the South West Development Commission, State and

Commonwealth Governments so as not to duplicate efforts. Once identified, these

prospective investors should be contacted directly using the marketing material

mentioned previously. These investors should be made aware of the opportunities in the

Capes region and invited to explore them further. Again, a coordinated approach with

partners should be taken so as not to duplicate any current activities from other

organisations.

As prospective investors are considering the Capes region as a location, the Shires should

be in a position to readily provide customised information packages that contain

information pertinent and specific to the proponent’s project. This information could

include population and demographic information, employment and wage information,

land and zoning information as well as contacts with relevant government agencies and

utility providers. The Shires should also organise and host site visits from these

prospective investors to assist them in their evaluations of the area. These visits could

include guided tours of the region and sites under consideration, meetings with planning

department, discussions with utility providers and meetings with other similar companies

in the region for a “peer review” of the region’s advantages.


12

2.4.3 Mission 3: Supporting Economic Growth


Mission 3: Supporting Economic Growth

3.1 Encourage regional planning and policies

Encourage planning departments for both shires to meet and discuss opportunities for synergies in policies and regulations for the key growth opportunities

2 meetings Annually

Review Capes regional signage policy to ensure consistent signage that provides a seamless tourism experience Complete Year 2

Establish a business advisory group for the Capes region to meet quarterly 4 meetings Annually

Develop a customer friendly DA approval process with clear definition of the process and timelines as well as guaranteed turnaround times On-going Long-term

Conduct pre-lodgement meetings for key developments delivering desired outcomes and economic benefits to the community On-going Long-term

Consider the development of an incentive policy for economic development in the Capes region by examining different types of incentives and the costs and benefits associated with each

Complete Year 2

Meet with SW Development Corporation on a quarterly basis 4 meetings Annually

Celebrate successes by producing news releases and promoting good news stories in regular community correspondence 6 stories Annually

3.2 Advocate for infrastructure provision

Conduct quarterly trips to Perth to conduct meetings with State and Commonwealth officials regarding the infrastructure needs of the region Conduct 4 trips Annually

Host senior State and Commonwealth officials in the region for tours and discussions regarding the needs of the region 1 event Annually

Proactively provide insight and advice to guide future infrastructure projects (road, rail, foreshore redevelopments, CBD rejuvenation, etc.) by providing economic development priorities and input, including job growth considerations, business case, etc.

On-going Long-term

Develop business case for the expansion of the airport (including economic and social benefits) Complete Year 1

Develop business case for the provision and upgrading of telecommunications infrastructure in the Capes region Complete Year 1

Investigate the option of investing in local renewable power generation Complete Year 1

3.3 Encourage workforce development

Meet with workforce development providers to discuss synergies and programs (TAFE, RTOs, Universities, etc.) 5 meetings Annually

Jointly with local training providers and restaurants, explore options for the establishment of an international/national culinary institute in the Capes region

On-going Long-term


13

Planning is a critical function for local government and can positively contribute to

economic development in the Capes region. During consultation with businesses and

industry, the need for common policies and regulations across both Shires was

mentioned on several occasions. By creating synergies between policies and regulations,

the Shires could encourage existing companies and new prospective companies to grow

through the simplification of the procedures across the region. By having common

policies and regulations in key growth areas, prospective investors can look objectively at

the area and not have to consider various policies and regulations across the different

local government areas. Similarly, signage is crucial for the tourism industry and any

existing policies must maximize the exposure for local businesses, particularly wineries,

artists and other businesses providing tourism experiences. At the same time, it is

important that the signage provides a consistent and seamless experience for visitors.

A business advisory group should also be developed that would contribute to the overall

economic development program. This group should be informal and represent only

private sector businesses. Representation should be broad across industry sectors and

include individuals from across the region. The purpose of this group is to provide

feedback to the Shires regarding the economic development program to ensure that the

activities do add value to businesses. Additionally, this group can act as a sounding

board for new economic development initiatives. The group should not have any power

over budgets or activities but offer advice.

The Shires can encourage development by having a straightforward and clear

development approval process. The overall process should be clearly explained to project

proponents (in the form of a 1-2 page info sheet) and guaranteed timelines for a

response from the Shires should be maintained. For larger, more complex project, which

can often have greater economic benefit to the community, the Shires should conduct

“pre-lodgement” meetings with the proponents. These meeting would give the

proponent an opportunity to present the project to the Shire, outlining the general

parameters, sharing initial concept drawings, etc. This meeting would provide the Shire

planning department with an opportunity to provide feedback regarding the development

and the current planning scheme. In such a way, the Shires can provide input up front,

before the application is lodged, which would hopefully assist the proponent in preparing

the application. This process could assist in saving valuable time for both the proponent

and the individual Shires planning departments.

Through consultation, it was identified that it takes relatively longer to get the necessary

development approvals in both the Shire of Augusta – Margaret River and the Shire of

Busselton than other shires in the South West region of WA.

Incentive policies can also help to foster economic growth and desired developments.

Many local governments around the world have policies that offer companies financial

and/or non-financial incentives to secure investments. In the Capes region, incentives

could come in the form of reduced fees, rate rebates, provision of infrastructure (road),

amongst others. The Shires should conduct a more detailed investigation into

establishing an incentive policy to encourage developments in desired areas. This

process would consider the nature of the incentive, community benefit, incentive and

assessment procedures, case studies as well as recommendations for the actual policy.

As part of this incentive policy, providing a streamlined development application approval

process for large, high impact projects, would allow the Shires to encourage these

developments in the region. The Shires can shape the guidelines and qualifying factors

for this process to align with strategic and overall growth objectives of the Shires to

ensure that the qualifying projects deliver desired developments that have relatively

higher economic benefits when compared to other development applications. This

process would not circumvent the regulated process, but offer an expedited route. By

decreasing the time to assess and permit projects, the Shires can encourage these

developments locally.

It is important to celebrate successes in economic development. By communicating

these success stories to local residents and partners outside of the region, the Shires can

not only gain recognition for their work, but promote the region as a place for business.

For existing companies, these stories can highlight expansion activity and provide some

marketing and media value. For attracting new companies, there is no better

endorsement for a region than companies investing money and generating jobs. These

messages will be meaningful for other companies (in similar industries) that could also be


14

potential investors. These stories should be shared with residents and partners through

normal communication channels (community newsletters, media releases, e-blasts and

on Shire websites).

The Shires should also interact regularly with the South West Development Corporation

in regards to promoting economic development. These partners should be involved in

infrastructure planning and advocacy, assistance with existing businesses and attracting

new businesses. There are a variety of resources available through the South West

Development Corporation and these should be leveraged to the fullest for the Capes

region.

Suitable infrastructure is crucial to future economic development. On-going efforts to

widen and improve the Bunbury Highway will have significant benefits to the Capes

region by offering tourists from Perth a shorter trip and quicker access to the region,

which would support increased visitation. Additionally, the improvements help existing

businesses export their product more effectively. The future expansion of this

infrastructure will only serve to increase the accessibility of the region.

In order for the Shires to advocate for further investment into infrastructure in the region

by State and Commonwealth Governments, the specific value proposition and business

case must be clearly established and demonstrated to the appropriate representatives.

Once clearly articulated, these messages should be taken directly to the various State

and Commonwealth Government departments. The Shires should undertake regular trips

to Perth (and potentially Canberra) to convey these messages to the appropriate

representatives in the various Government departments. At the same time, the Shires

should host State and Commonwealth Government representatives in the region so that

they can see first-hand the needs of the region and the potential benefits of improved

infrastructure.

There are on-going discussions about expanding the current airport in Busselton. This

expansion could open the door for regular passenger traffic and offer tourists in the

eastern states quicker access to the region. At the same time, international flights from

Singapore, China and Japan would offer additional opportunities for international tourism

from some key wine consuming markets. There are additional economic and social

benefits that a significant upgrade to the airport could have on the region. These should

be explored further with a detailed business case highlighting the benefits of this

potential expansion. If it were to proceed, the upgrade to the airport could have

tremendous benefits to the community, if it facilitated a dramatic increase in tourists.

Further investments and expansion of the telecommunications infrastructure in the region

are also needed to enable future economic development. Solid high speed internet

connections are currently not available throughout the region. By having this

infrastructure throughout the region, it will be easier to facilitate business growth and

expansion, particularly from new businesses. Today, businesses must have modern

access to the internet. For many of the identified opportunities, the potential companies

would conduct significant business over the internet, particularly sharing data and

information with customers and suppliers outside of the region. This infrastructure will

be crucial for future economic growth, diversity and expansion. A solid business case for

the investment needed in this infrastructure would also assist in acquiring the required

funding.

As mentioned previously, opportunities exist in the region for future renewable power

generation. These opportunities are underscored by future increasing demand for power

and increased regulation supporting renewable energy. The Shires should investigate the

opportunities to invest in local renewable power generation. The construction and

operation would bring direct economic benefits to the region. Additionally, the Shires can

further diversify their own revenue streams. There are companies in the current market

place that will design, construct and operate these assets, so there is the potential for the

Shires to take on minor additional liability or technical involvement (maintenance,

regulations, etc.). At the same time, some technologies today demonstrate the ability to

provide grid parity (or lower) electricity rates. The Shires could invest capital in the

project to secure the generation locally, receive revenues from this investment and

potentially offer its residents lower cost power. Naturally, there are also the

environmental impacts and benefits associated with renewable power generation. The

Shires should consider a feasibility study to in pursuit of this project in the future.


15

Having a skilled workforce that meets the demands of industry is important for future

economic growth. By meeting regularly with training organisations like TAFE, RTOs and

universities, the Shires can encourage and support workforce development efforts. Since

the Shires will be engaged with the local businesses, they can help facilitate access to

customised training by passing along information received directly from businesses and

connecting businesses that need training with organisations to carry it out. Given the

strong wine and food production capabilities in the region as well as the gourmet

restaurants, the Shires should give consideration to establishing an internationally or

nationally recognised culinary institute. This unique training facility would provide a

pipeline of new highly skilled cooks for the restaurants. At the same time, there is a

heavy emphasis in these institutions for work experience. Given the number of

restaurants in the area, the Capes region would be able to accommodate the students.

At the same time, this facility would also encourage new restaurants to open.

2.5 Monitoring and Measuring

As with any program, it will be important to monitor and measure the success of the

Capes Regional Economic Development Program. The goals/targets have been

established as an ambitious objective for each task. It will be necessary to measure the

actual goals/targets achieved for each task, together with the resources (both human and

financial) dedicated to each task. In such a way, the performance of the Shires can be

measured for economic development. This measurement system is preferable over just

assessing the performance of the Shires based on the health of the economy, which is

outside the sphere of the Shires’ influence. The economic health of the region remains

an important measurement and the economic indicators for the region should be updated

on an annual basis. After evaluating the actual goals/targets reached for each task and

the value each task delivered to the community (in line with the resources it consumed),

the Shires can make a decision whether to continue that specific task, increase resources

or amend the goal/target.

As a monitoring program, monthly reports should be generated that can demonstrate

what tasks were completed in the month and the performance versus stated

goals/targets. At six months (the middle of the program) an assessment should be

carried out to understand what progress has been made on the program. By recording

specific progress toward these goals/targets, the Shires will also be able to quantify

achievements at the end of the year.

In order to track these activities and tasks, an easy to use reporting system has to be

developed. It would be highly recommended that an “off the shelf” contact management

system (like ACT!, Microsoft CRM and Goldmine) be purchased and implemented for this

purpose. These systems record not only contact information but interaction with contacts

and other fields that users can customise. In such a way, a report template can be

generated so that monthly reporting can be accomplished in one click (after inputting the

information). It is important that the activity information be easy to record so that the

reporting structure does not deter from carrying out the tasks. Add-ins to Microsoft

Office and Access can also be used but are not recommended. Excel should be avoided.

2.6 Execution

The Shire of Augusta – Margaret River and the Shire of Busselton should work

collaboratively on the Capes Regional Economic Development Program. By combining

resources (both human and financial), the two Shires will be able to accomplish more

than by acting individually. The two Shires should discuss the most effective manner in

which to allocate the combined resources across the program and ownership of specific

tasks and/or activities should be delegated to a specific Shire for completion.

Additionally, the economic development staff from both Shires should meet on a monthly

basis at a regularly scheduled date and time. As much as possible, the economic

development staff of both Shires should avoid scheduling other meetings during this

time. At these meetings, recent activity and completion of the tasks should be discussed

as well as future events/activities and how these will be accomplished.

This monthly forum will foster an environment of cooperation between the two Shires and

present the opportunity to track the activities in the Economic Development Program and

produce regular reports back to the respective Shire.


16

3. Recommendations

This report provides a detailed summary of the Capes Regional Economic Development

Program.

AECgroup proposes the following recommendations:

• The Shire of Augusta – Margaret River and the Shire of Busselton should officially

adopt the Capes Regional Economic Development Strategy and Program;

• The Shire of Augusta – Margaret River and the Shire of Busselton should execute the

Capes Regional Economic Development Program as described in this report; and

• The Shire of Augusta – Margaret River and the Shire of Busselton should consider

agreements (potential expansion of the current Memorandum of Understanding) to

cooperate in regards to economic development and tourism.

Brisbane

Melbourne

Sydney

Townsville

Perth

Level 5, 131 Leichhardt Street Spring Hill QLD 4000

Level 27, 101 Collins Street

Melbourne VIC 3000

Level 6, 234 Sussex Street Sydney NSW 2000

233 Flinders Street East

Townsville QLD 4810

Level 18, Central Park

152 - 158 St Georges Terrace Perth WA 6000

PO Box 942 Spring Hill QLD 4004

PO Box 5804MC

Townsville QLD 4810

T +61 7 3831 0577

F +61 7 3831 3899

T +61 3 9653 9312 F +61 3 9653 9307

T +61 2 8223 3874

F +61 2 8223 3871

T +61 7 4771 5550

F +61 7 4771 5152

T +61 8 9288 4456 F +61 7 9288 4457

E [email protected] W www.aecgroupltd.com

Documents

Capes Regional Economic Development Strategy Shire of Augusta ...€¦ · used in the analysis can be affected by a number of unforeseen variables, and as such no warranty is given