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The Committee for Gippsland
Incwww.committeeforgippsland.com.au
ABN: 68225605779 P: 03 5623 3219 PO Box 380E: [email protected]
F: 03 5623 2905 13A Smith St Warragul VIC 3820
28March,2013
ProfessorRozHansen
Chair
MinisterialAdvisoryCommittee
MetropolitanPlanningStrategy
Byemail:[email protected]
ResponsetoMelbourneLetsTalkAbouttheFuture DiscussionPaper
DearProfessorHansen
TheCommitteeforGippslandwelcomestheopportunitytorespondtotheMelbourneLets
TalkAbouttheFuture:DiscussionPaper.Whilethediscussionpaperfocusesprimarilyonthe
planninganddevelopmentneedsofagrowingMelbournemetropolitanregion,theCommitteeforGippslandbelievesthatthediscussionpaperalsoopensasignificantwindow
ofopportunityforpublicdiscussionabouttheimpactofthesechallengesandopportunities
foraVictorianregionsuchasGippsland.
TheCommitteeforGippslandisthepeakbusinessandindustryorganisationforthe
Gippslandregion.Establishedin2011,theorganisationrepresentsnearly60businessesand
communityorganisations,collectivelyemployingnearly10,000peopleacrosstheGippsland
region.Sectorneutral,theCommitteeforGippslandrepresentshighereducationproviders,
transportoperators,manufacturingbusinesses,dairyandmeatprocessors,professional
services,tourismoperators,powerstations,hospitalandhealthcareproviders,smallbusinessesandcommunitygroups.TheCommitteeforGippslandhasthreefoundationlevel
members,includingtheNationalAustraliaBank,PattiesFoodsandbankmecu.
InpreparationfortheCommitteeforGippslandssubmissiontothisdiscussionpaper,our
membersandstakeholderswereconsultedaboutallaspectsofit,butwithparticular
emphasisontheconceptofathirdairportforVictoria,withpotentialforittobebasedinthe
south-eastorGippsland.
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OverviewoftheGippslandRegion
Asaregion,Gippslandisadiverseandresourcedrivenregion.Gippslandis4.2million
hectaresinsize,withapopulationofnearly260,000people.By2026,thisisforecastto
growtoover300,000.Withanaveragetraveltimeofaround90minutesfrom
Melbourne,GippslandisservicedbyfreewayandexpressV/Linerail.Itisoneof
Victoriaseightkeyregionalgrowthareas,alongwithBallarat,GeelongandBendigo.Gippslandaspirestodevelopitselfasanationalfoodbowl,withitsnaturaladvantages
ofaccesstowaterandhighyieldagriculturalland,utilizedacrossarangeofsectors,
frombeeftodairying,andfromhorticulturetofoodprocessing.1
Tothisend,theCommitteeforGippslandisworkingwithRDAGippslandandother
agribusinessstakeholderstodevelopaGippslandFoodPlan,andisalsoworkingona
foodindustryskillsaudittobetterinformbothgovernmentandindustryaboutthe
currentandemergingworkforcedemographicsofthesector.
Theregionstopfiveindustrysectorsincludemanufacturing,construction,mining,agriculture,forestryandfishing,andelectricity,gasandwatersupply.Combined,these
sectorsrepresentapproximately$16.67billion,or58.8percentoftotalregionaloutput.
Theyalsogenerateapproximately$9.46billion,or88.3percentoftotalregional
exports,whichisestimatedat$10.71.2Milkproductionalonecomprisesabouthalfthe
totalvalueofGippslandsagriculturalcommoditiesandearnsanestimatedfarmgate
valueof$624million.Thetotal2006/07valueofallmeatandwoodproductionwas
$361millionand$146millionrespectively.
ThegrossvalueofforestryandtimberproductsinGippslandis$1.2billion.Theregion
alsopossessesavibranttourismeconomy,fromsmallbedandbreakfastsandwineries,tothelargestinlandlakessystemintheSouthernHemisphere.ItalsoincludesPhillip
Island,whichissecondtoonlytheGreatOceanRoadasthemostvisitedVictorian
attractionandwithover3.5millionvisitorseachyearcomesinaheadofothernational
iconssuchastheGreatBarrierReefandUluruNationalPark.3
WiththeFederalGovernmentspolicyoftransitioningtoalowcarbonfuture,Gippsland,
andinparticulartheLatrobeValleyarea,isundergoingamajoreconomicstructural
readjustment.AsoneofthelargestenergysupplierstotheNationalEnergyMarket,the
energysectorinGippslanddirectlyemploys2,500Victorians(nottomentionoutage
crews).
GippslandmakesamajorcontributiontotheVictorianandnationaleconomies.Among
thesecontributionsinclude:90percentofVictoriasenergyproduction,80percentof
Australiasorganicmilkproduction,24percentofAustraliasmilkoutput,27percentof
Victoriasbeefproduction,22percentofVictoriascertifiedagribusiness/horticulture
1OneGippsland:CommitteeforGippsland,RDAGippsland&GippslandLocalGovernmentNetwork,
March2013:
http://gippslandregionalplan.com.au/media/One_Gippsland_priority_projects_March_2013.pdf2
GippslandRegionalPlan,2010:http://glgn.com.au/index.php?option=com_content&view=article&id=4&Itemid=43PhilipIslandNaturePark:PresentationtotheCommitteeforGippsland,2013
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producers,avastmajorityofVictoriasnaturalgas,Australiaslargestpulpandpaper
milltogetherwith1.1millionhectaresofharvestableforestandtheregioncontainsthe
largestareaofpubliclandinVictoria.
PlanningfortheGippslandRegionsContinuedEconomicGrowth
ItisencouragingtorealisethattheGippslandregionisideallyplacedtomakea
contributiontosomeofthekeyconceptsofthisdiscussionpaper,andVictoriasfuture
growthopportunitiesmorebroadly.Firstly,viatheGippslandIntegratedLandUsePlan,
oneoftheeightregionalgrowthplansthatwillhelpinformandcomplementthe
strategyshapingVictoriato2050thatevolvesfromthisdiscussionpaper.
Secondly,itispleasingthatthereisastrongemphasiswithinthediscussionpaperon
theopportunitiesforVictoriathatcanbeleveragedthroughinternationalexport
markets,andinparticularwithAsia.Gippslandhasabroadindustrybaseandmanyof
theregionsfreshproduceanddryproductsaredirectlyexportedtoAmerica,EuropeandespeciallyAsia.TheCommitteeforGippslandhasprovidedrecentinputonbehalfof
ourfoodprocessingandagribusinessmemberstotheNationalFoodPlangreenpaper,
particularlywithregardtomaximizingexportopportunitiesfortheregion.4
TheCommitteeforGippslandhasbeenactiveacrossanumberofareasinaneffortto
promotemoreimmediateactionontheregionstransportandinfrastructureneeds.The
CommitteeforGippslandiscurrentlyworkingwithRegionalDevelopmentAustralia
GippslandtodevelopaGippslandInfrastructureandFreightMasterPlan,whichseeksto
closelyengagewithlocalindustrytohelpmapthestrategicrequirementsoftheregion
inordertofullydevelopitstransportandfreightrequirements.TheCommitteeforGippslandwasalsoactivelyinvolvedinrespondingtothedraftingstagesofthe
GippslandFreightStrategy,aplandevelopedbytheVictorianDepartmentofTransport
tohelpaddresstheregionsimmediatetransportandfreightneeds.5
Havingregardforthetransportandinfrastructurecomponentsofthisdiscussionpaper,
theCommitteeforGippslandalsodrawsattentiontotheimportanceoflinkingthese
prioritiesbetweenMelbourneandregionalVictoria.
Inits2011submissiontoInfrastructureAustralia,theVictorianGovernmentnotedthat
Victoriaiscontendingwithanincreasingdemandonthestatestransportnetworks,agrowingfreighttask,decliningproductivitygrowthacrosstheeconomy,escalating
constructioncostsandatightfiscalenvironment.6Whilesomeoftheworstpressuresof
theglobalfinancialcrisishaveeased,regionalVictoriastillfacesmanyofthese
challenges,whichstillincludeasubduedeconomicclimate.4CommitteeforGippslandsubmissiontotheNationalFoodPlangreenpaper,September2012:
http://www.committeeforgippsland.com.au/docs/120930%20C4G%20National%20Food%20Plan%20Sub
mission.pdf5CommitteeforGippslandsubmissiontothedraftphaseoftheGippslandFreightStrategy,October2012:
http://www.committeeforgippsland.com.au/docs/120928%20C4G%20response%20Gipps%20Freight%20
Draft%20Strategy.pdf6VictoriasSubmissiontoInfrastructureAustralia-VictorianGovernment,November2011:
http://www.dpc.vic.gov.au/images/documents/dpc_resources/Victoria_IA_Submission_2011.pdf
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ForGippsland,thedualchallengesofbuildingthecapacityoftheregionstransport
networks,andincreasingfreightandlogisticscapability,areamongtheCommitteefor
Gippslandschiefambitions.
TheCommitteeforGippslandcommendsthesupportofanumberofprojectsput
forwardintheVictorianGovernmentssubmissiontoInfrastructureAustralia,inparticulartheEastWestLink,MelbourneMetro,theDandenongRailCorridorCapacity
ProjectandthePortofHastings.
ThePortofHastingsdevelopmentiscapturedintheCommitteeforGippslands
StrategicPlandocumentandisaprojectthatwebelieveiscriticallyalignedwiththe
Gippslandregionsfutureeconomicprosperityandsustainability.7ThePortofHastings
currentlyhandles2,080,088tonnesoffreightwith100to150vesselsayear,or37per
centofVictoriastotalcontainerfreight,andisexpectedtoincreasefreighthandling
capacityby8millioncontainers,or5.2percentannuallyby2035.
TheCommitteeforGippslandhasjointlyadvocatedforEastWestLink,alongsideRDA
GippslandandtheGippslandLocalGovernmentNetwork,aspartoftheOneGippsland
consortium.Thethreegroupsrepresentthepeakbodiesforregionaldevelopment(RDA
Gippsland),thesixGippslandlocalgovernmentorganisations(GLGN),andbusinessand
industry(C4G)fortheGippslandregion.8
EastWestLinkisakeyprojectpriorityforOneGippsland,whichbelievesthatthe
projectrepresentssignificanteconomicopportunityfortheGippslandregion,
particularlywithregardtoincreasedfreightmovementefficienciesandfutureaccessto
port.TheOneGippslandconsortiumalsosupportstheNorthEastLinkproject,whichitexpectstorepresentsignificanteconomicopportunityfortheGippslandregion,
particularlywithrespecttoincreasedfreightmovementefficienciesandimproved
accesstomajorindustrialareasandintermodalterminals.OneGippslandandthe
CommitteeforGippslandsupportthecontinuedexplorationofthisconceptandnote
supportivelythatitisbeingconsideredwithinthescopeofthisplanningstrategy
discussionpaper.
TherewassomememberfeedbacktotheCommitteeforGippslandthatthisdiscussion
papercouldhavestrengtheneditsreferencestotheconnectionsthatexistbetweena
manufacturingvaluechainandtheneedformoresustainabledevelopment.Inaddition,abolderarticulationofthelinkagesbetweenskillsdevelopmentand
Melbournesfuturecouldalsohavebeendevelopedwithinthediscussionpaper.Both
ofthesereferenceswouldcomplementthebroaderplanningandeconomicintentions
behindthediscussionpaper.
7CommitteeforGippslandStrategicPlan
,CommitteeforGippsland;October2011:
http://www.committeeforgippsland.com.au/docs/C4G%20Strategic%20Plan%20Oct%202011.pdf
8OneGippslandProjectPriorities,March2013:
http://gippslandregionalplan.com.au/media/One_Gippsland_priority_projects_March_2013.pdf
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ThecaseforathirdmajorairportforVictoria
TheCommitteeforGippslandstronglybelievesthatinfrastructureisaprimaryenabler
ofproductivity.AccordingtotheFederalTransportandInfrastructureMinister,overthe
nexttwodecadesAustraliasfreighttaskwilldouble.Publictransportusagewillincreasebyone-third.
9Ofparticularinteresttothisdiscussionpaper,internationalpassenger
movementsthroughAustraliascapitalcitieswillalmosttriple.Onekeyareaofthe
discussionpaperfortheCommitteeforGippslandfocusesontheconceptofathird
majorairportforVictoria,withpotentialforittobebasedsouth-eastofMelbourneorin
thegreaterGippslandregion.
Thediscussionpapercapturestheessenceofopportunitywell,notingthat;Melbourne
isakeyfreightandlogisticscentreforAustralia,butcapacityatthePortofMelbourneis
constrained.MelbourneAirportiscurfewfreeandisontracktohandlemorethan40
millionpassengers.ThereisadequatecapacitytoincreasethenumberofaircraftflyingintoMelbourneAirportforsometimebutmorelimitedcapacitytoprovideland-based
accesstotheairport.AvalonAirporthasplanstobecomeaninternationalairportanda
furtherairportinthesouth-east.10(AvalonAirportwasdeclaredaninternationalairport
inthesamemonththisdiscussionpaperwaspublished).
AsnotedrecentlybytheFederalInfrastructureandTransportMinister,while50per
centofinternationalflightsin2000weretoandfromSydneyairport,thissharehas
droppedto41percent.Asof2011,Melbourneairportsinternationaltraffichasgrown
by10percent,whichisnearlyfourtimestherateofgrowthinSydney.11
Becausethisisanationalproductivityissue,Sydneyismissingoutoneconomicactivity,
whileMelbourneandBrisbaneseconomicgrowthinthisrespectiscontinuing,thanks
totheirinternationalairportcapacity.Tocontinuethiseconomicgrowth,Victoriamust
ensurethatitcontinuestohaveavailableinternationalairportcapacity.Akeydriverof
thiscontinuedeconomicgrowthwillbethesoutheastofMelbourneandtheGippsland
region,asamajorindustrialandemploymenthuboutsideofMelbourneCBD.
GippslandandMelbournessouth-easthaveahighlyskilled,mobilepopulation,thatis
notcurrentlyservedbyadomesticairport.TherearesmallerairfieldsaroundtheShire
ofCardinia,LatrobeCity,EastGippslandShireandWellingtonShires,however,whichmayofferthemselvesaspotentialoptionsinplanningtodevelopfurther.
TheCommitteeforGippslandisoftheviewthatairportsplayanimportantrolein
sustainingregionalcompetitivenessandenhancingeconomicactivity.AvalonAirport,
locatednearGeelong,isacaseinpoint.Itwasdeclaredaninternationalairportin9SpeechtotheSydneyInstitutebytheHonAnthonyAlbanese,MPFederalMinisterforInfrastructureand
Transport;March2013:http://anthonyalbanese.com.au/infrastructure-driving-productivity-address-to-
the-sydney-institute10MelbourneLetsTalkAbouttheFuturediscussionpaper,ExecutiveSummarypageix,preparedbythe
MinisterialAdvisoryCouncilfortheMetropolitanPlanningStrategyforMelbourne,October2012.11
SpeechtotheSydneyInstitutebytheHonAnthonyAlbanese,MPFederalMinisterforInfrastructureandTransport;March2013:http://anthonyalbanese.com.au/infrastructure-driving-productivity-address-
to-the-sydney-institute
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October2012,andhasattractedmorethan$53millionVictorianandFederal
governmentfunding,whichhassubstantiallycontributedtothesustainabilityand
prosperityofthatregion.
Amajorairportforthesouth-east
Victoriasongoingsustainabilityandregionalcompetitivenesshasbeengreatly
supportedbyMelbourneAirportsabilitytodeliverwhereSydneyiscurrentlystruggling,
becauseofregulatory,congestionandcapacityissues.Accordingtoa2010Essential
Economicsstudy;AvalonAirportEconomicBenefitStudy,bothMelbourneandAvalon
airportscontribute$1.75billiontothestateseconomy,anddirectlyemployover
10,000people.
Tocontinuetocapturethiswealthandsustaingrowth,Victorianeedsanewairport.As
thisdiscussionpapernotesitself,Melbourneiscurfewfree,andontracktohandlemore
than40millionpassengers.TheemergingchallengeforMelbourneAirport,however,existsintheroadcapacitytogettoandfromtheairport,particularlyalongits
connectingfreewaynetworks.Inordertosetinplaceearlyplanningforthiseventuality,
Melbournessouth-eastregionoffersalogicaloptiontohelpaddresstheemergingroad
capacitytoMelbourneAirport,aswellaseconomicandcommunitybenefitforresidents
inGippslandandthesouth-east.
ForGippslandandthesouth-easttomeetitsambitionofdevelopingasanationalfood
hub,improveitsproductivity,andenhanceemploymentandhighereducation
participation,adomesticairportintheregionisrequired.
Basedonexistingsuccessfulmodelsofprivateparticipationinairportownershipand
management,suchasAvalonAirport,theCommitteeforGippslandisalsooftheview
thattheprivatesectorshouldbeengagedandencouragedinthepotentialownership
andmanagementofathirdairport.
TheMahindraAerospacebackedGippsAerocompanymakesGippslanduniqueinthe
aircraftmanufacturingsectorforVictoria,andastandoutaroundAustralia.Producinga
rangeofgeneralaviationaircraftdesignedspecificallytomeetnichemarketsintourism,
skydiving,airsurveillance,freightandaircharteroperations,GippsAeroistheonly
companyinAustralia,andoneofahandfulintheworld,withthecapabilitytobothdesignandmanufacturecommercialaircraftfromfirstprinciples.Thecompanyemploys
localpeoplewhoarespecialistsintheirfields,includinginengineering,manufacturing
andmaintenanceandmodifications.ThisfactagainenhancesGippslandandthesouth-
eastsnaturalchoiceoftheVictorianregionbestsuitedtohostingathirdmajorairport.
AstheLatrobeValleyIndustryandEmploymentRoadmapnotes;Aviationandaerospace
arewellestablishedcapabilitieswithintheregion,buildingonthelocationofthe
regionalairportatMorwellandtheEastSaleRoyalAustralianAirForce(RAAF)base.
TheVictorianGovernmenthasfundedanupgradingoftheLatrobeRegionalAirportto
providetheinfrastructureimprovementsnecessarytosupportthis.Therearerelatedopportunitiestoincreaseflyingtrainingandassociatedactivities,especiallyasthe
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capacityfortrainingatMoorabbinAirportbecomeincreasinglyconstrained.Thereare
manypotentiallysuitableairportsandaerodromesintheGippslandregionthatare
workingtogethertosupportgrowthinthisarea.12
TheCommitteeforGippslandhasalsoworkedonseveralprojectprioritiestosupport
thecontinuedsustainabilityandgrowthoftheRAAFbaseinEastSale,bothindividually,
andasajointlybadgedinitiativewiththeOneGippslandconsortium.Thiscaseisstrengthenedfurther,whencomplementedbyGippslandandthesouth-
eastsgrowingpopulation,askilledandavailableworkforce,aeronauticinvestmentand
capability,aport,freightandlogisticallyintegratedregion,andalesscongestedroad
andtransportnetworkascomparedtoinnermetropolitanareas.
Inpreparingthissubmission,theCommitteeforGippslandhasconsultedcloselywith
ourmembersonthisdiscussionpaper,withparticularemphasisonseekingtheirviews
ontheconceptofanairportfortheregion.SomecommentsfromtheCommitteefor
Gippslandsmembersinresponsetothiselicitedthefollowingcomments:
Istronglysupporttheaimtoidentifyandsecureplanningprovisionsforathird
MelbourneAirport;thisactionisconsistentwiththeneedfortheState
Governmenttothinklongandactlong,andestablishaneffectivelongterm
investmentplanwhichassistsbothregionalandmetropolitanareasandserves
thepublicandbusinessneedswithkeyinfrastructure.
Theotheradvantageofanairportispotentialforairfreightthiswouldprovide
connectivitytogetfreshproduceoutofGippslandtoagrowingmarketinAsia.
Therewouldalsobelikelyprivatesectorinterest.
AgoodpotentialoptionistheTooradinareaneartheoldSouthGippslandrail
line,ontheSouthGippslandHighwayandexistingpavedrunway.
WhywouldanyonedriveallthewaytoTullamarine(publictransportisterribly
inadequate),payasmallfortuneforparking,anddrownincongestionoutthere
iftheycouldflyfromsomewhereonthisside(Gippsland)oftheworld.
Congestionisntgoingtoreducewithoutalternatives.Butthecongestionisntall
causedbyairporttravellersofcourse.Shifting20%oftravellerstoathirdairportwontcurecongestionitmaysimplyholddowntherateofcongestiongrowth
Bycontrast,shiftingfreightawayfromthePortofMelbourne,andtheeastern
precincts(forairfreight)mightwellhaveasignificanteffect.Withthesuggestion
ofTooradin,Iwouldexpectasoutheastsuburbstravellercouldsaveanhour
(comparedtoTullamarine).
TheTooradinareaseemstomakesenseanditsnexttothePortofHastings
development.
12TheLatrobeValleyIndustryandEmploymentRoadmap,RegionalDevelopmentVictoria;page15,July
2012.
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Theproductivityimprovementthatacommercialairportwouldoffertothesouth
eastwouldbesignificant,notonlyintermsofmovingpeopleandfreightinand
outofGippslandandthesoutheastgrowthcorridor,butalsothepotentialfor
tourismdestinationacrosssouth,centralandeastGippsland.
Summaryofstakeholderfeedback
TosummarisetheviewsoftheCommitteeforGippsland,basedonourownresearch
andconsultation,adomesticairportinthesouth-eastorGippslandregionofMelbourne
(withtheoptiontodevelopasaninternationalairport)wouldofferthefollowingsocial
andeconomicbenefitstothelocalGippslandregion,andmorebroadlyVictoria:
Serviceagrowingpopulationofmorethantwoandahalfmillionpeoplewhich
is125%morethanAdelaideAirportservices.
Generatearound8,000directjobsand24,000indirectjobs.
Presentimmediateopportunitiesfortheregionslocaleconomy,particularlyin
regardtoyouthemployment,participationinhighereducationandgreater
utilisationoftheregionsskilledworkforce.
ComplementthedevelopmentofthePortofHastings,particularlyinregardto
freight,butalsoindustryandagribusiness,alsoofferingefficientfreightexport
linkages.
PlanaheadtomitigatetheeventualroadcapacitytobereachedforMelbourne
InternationalAirport.
AssistinalleviatingcongestionontheMonashFreewayandsurroundingroad
networks.
Presentsignificantsocialandeconomicbenefitstothesouth-eastregionand
metropolitanMelbournebygreatlyreducingcongestionontheMonashand
otherfreewayandlocalroadsnetworks.
Createnumeroussocial,communityandeconomicbenefitsforGippslandandthe
south-east.
Benefitfromtheexistingrailnetworks,forexampleCranbourneandPakenham
trainstationsbeingnearby;and
Victoriawouldbeabletoleverageofftheproductivityandeconomicgrowth
opportunitiesthatathirdmajorairportwouldoffer,puttingthestateatan
economicadvantageanddestinationofchoiceforbusinessandtourismtoits
nearestcompetitors.
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Conclusion
Inconclusion,theCommitteeforGippslandmakesthefollowingrecommendationsfor
theadvisorypaneltoconsiderinthecontextofthisdiscussionplan:
1
ThattheVictorianGovernmentproceedwithplanningandpreparationworkfora
thirdmajorairportforVictoria,withtheoptionofdevelopingitasaninternational
airportatalaterstage.Industryshouldalsobeengagedtoencourageathirdairport
tobedevelopedthroughtheprivatesector.
2
ThatalocationwithinthebroaderGippslandandsouth-eastregion,suchasTooradin,
beidentified,andafeasibilitystudybeundertakentoascertainitssuitabilitytobe
developedasafreightandpassengerairport,withpotentialasaninternational
airportatalaterstage.Thiswouldincludeworkingwithnecessarylocalgovernment
andplanningauthoritiestoidentifyandreserveanappropriateareaofland.
Onceagain,theCommitteeforGippslandcommendsthisdiscussionpaperfor
commencinglong-termplanninganddiscussiononthesignificantchallengesand
opportunitiesthatlieaheadforVictoriasfuture.
TheCommitteeforGippslandwouldbepleasedtoprovidefurtherdetailonanyaspects
ofitssubmissiontotheadvisorycommittee.TheCommitteeforGippslandsChief
ExecutiveOfficer,MaryAldredcanbecontactedon(03)56233219.
Sincerely
MaryAldred
ChiefExecutiveOfficer
