Regional Development Victoria
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Regional Development Victoria
Contents
Section 1.0 Introduction 4
1.1 Chief Executive Foreword 5
Section 2.0 Overview of Regional Development Victoria 6
2.1 Profile of Regional Development Victoria 7
2.2 Structure of Regional Development Victoria 8
2.3 Regional Development Advisory Committee 9
Section 3.0 Year in Review 10
3.1 Highlights 2005/06 11
3.2 Case Studies 2005/06 20
3.3 Regional Infrastructure Development Fund projects in review 24
3.4 Key Partners 29
3.5 Marketing Provincial Victoria 30
3.6 Sponsorship – Herald Sun Tour-2005 31
3.7 Sponsorship – Stawell Gift 2006 32
Section 4.0 Other Relevant Information 34
4.1 Financial Performance 35
4.2 Compliance 35
4.3 Legislation 35
Section 5.0 Grants and Output Targets 36
5.1 Regional Development Victoria Grants 37
5.2 Regional Infrastructure Development Fund Grants 44
5.3 Small Towns Development Fund Grants 44
5.4 Natural Gas Extension Program Grants 47
5.5 Output Targets and Performance 48
5.6 Revenue and Expenses 49
Section 6.0 Contact Information 50
6.1 Regional Development Victoria – Contact Information 51121 Exhibition Street
Melbourne, Victoria 3000
GPO Box 4509
Melbourne, Victoria 3001
Australia
Telephone: (03) 9651 9138
Facsimile: (03) 9651 9360
The Hon. John Brumby MP
Minister for State and Regional Development
1 Treasury Place
Melbourne Vic 3000
Dear Minister,
Regional Development Victoria Annual Report 2005/06
I am pleased to submit to you, for presentation to Parliament, Regional Development Victoria’s Annual Report.
The document outlines the achievements of the organisation for the year ended 30 June 2006.
Yours sincerely,
Fran Thorn
Acting Chief Executive, Regional Development Victoria
Secretary, Department of Innovation, Industry and Regional DevelopmentIntroduction
annual report
1.1 Chief Executive Foreword
Regional Development Victoria (RDV) plays a pivotal role in fulfilling the challenges set
by the Government for growing all of the State. This report marks the achievements
of Regional Development Victoria for the period July 1, 2005 to June 30, 2006.
RDV plays a leading role in facilitating sustained economic and industry development of
provincial Victoria. Now, in its third full year of operation, RDV continued to work closely with
the Department of Innovation, Industry and Regional Development and other Government
departments to meet its goals.
In 2005/06 RDV continued to deliver initiatives and programs to strengthen regional
infrastructure, industries and communities, earning its reputation as a client-focussed
organisation with a can-do attitude.
Highlights for the year included:
• Leading the coordination and support for the Government’s $502 million action plan for rural
and regional Victoria, Moving Forward: Making Provincial Victoria the Best Place to Live,
Work and Invest
• Facilitating $1.13 billion of new investment into rural and regional Victoria, which was almost
half of the State’s total new investment of $2.48 billion
• Attracting 1,598 new jobs and a projected $29.6 million in new exports and $138.6 million in
import replacement
• Delivering the Make it Happen in Provincial Victoria marketing campaign, which targets
Melburnians by showcasing the lifestyle opportunities in provincial Victoria, and commencing
work on extending the campaign to focus on the investment and business opportunities in
provincial Victoria
• Continuing the implementation of the $70 million Natural Gas Extension Program to 34
towns in provincial Victoria through the Regional Infrastructure Development Fund. The
project will provide significant savings to businesses and the community, with a study
by KPMG estimating that natural gas will deliver a $427.6 million net boost to the State
economy and create 395 new full-time equivalent jobs each year for 20 years
• Offering assistance through the business component of the Community Regional Industry
Skills Program, which anticipates the creation of more than 900 jobs and $95 million in
new investment
• Delivering a suite of programs including the Regional Business Investment Ready Program,
Regional Investment Initiative, Regional Innovation Clusters Program and the Regional
Infrastructure Development Fund.
The achievements of RDV would not have been possible without the contribution of staff and
management and I would like to thank them all for their dedication and commitment over the
past 12 months.
The members of the Regional Development Advisory Committee contributed to the
development of Moving Forward and provided valuable advice and feedback to the
Minister throughout the year and I would like to thank them too.
Finally, a warm farewell to RDV’s inaugural chief executive, Kerry Murphy, who in April 2006,
retired after 42 years of dedicated public service. Kerry was a visionary whose legacy will
continue to contribute to the organisation’s success.
I am confident RDV will continue to deliver on the Government’s commitment to make
provincial Victoria a better place to live, work and invest.
Fran Thorn
Acting Chief Executive, Regional Development Victoria
Secretary, Department of Innovation, Industry and Regional Development
PAGE | Overview of Regional Development Victoria
annual report
2.1 Profile of Regional Development Victoria
Regional Development Victoria (RDV) is a statutory body established by the
Government under the Regional Development Victoria Act 2002 and is responsible
to the Minister for State and Regional Development. Its focus is on building
stronger economies, communities and infrastructure to create a prosperous
and growing provincial Victoria.
RDV sits within the State and Regional Development portfolio and works closely with the
Department of Innovation, Industry and Regional Development. The Department objectives to
which it contributes are:
• to position Victoria as an attractive destination for investment that stimulates growth and
development across the State
• to work with the business sector and other key partners to encourage and facilitate exports
• to facilitate and support innovation across Victorian business and industry
• to foster a high performance and skilled workforce to meet the needs of the economy
• to ensure sustained economic and industry development of provincial Victoria.
It contributes to the Government’s Growing Victoria Together objectives by:
• creating more quality jobs and thriving, innovative industries across Victoria
• growing and linking all of Victoria.
PAGE | 2.2 Structure of Regional Development Victoria
RDV is structured to deliver a range of programs and initiatives to strengthen Victoria’s regional economies, infrastructure and
communities through its four divisions:
Regional Industries capacity of regional Victoria and to support industry and business
enhance economic development growth and acts as a conduit between
Regional Industries delivers a range of
through facilitating investment, government at all levels to promote
business assistance services to: develop
employment and export opportunities. regional development.
and facilitate investment; create jobs;
It achieves this through the provision of
and increase the number of innovative
funding for capital works projects that Regional Strategy and
enterprises in provincial Victoria. The
support new industry development,
Division’s activities focus on investment
link transport infrastructure, improve
Coordination
attraction, improving the international
tourism facilities, and better link Regional Strategy and Coordination is
competitiveness of companies and
regional Victoria to new opportunities responsible for rural and regional policy
enhancing Victoria’s export performance.
in education and information and and strategy development. This area
communication technologies is responsible for the management of
Regional Infrastructure infrastructure. the Provincial Victoria Growth Fund,
Development marketing and communications, and
delivery of a range of programs and
Regional Infrastructure Development, Regional Operations initiatives that support economic and
through the administration of the
Regional Operations delivers community development. This Division
Regional Infrastructure Development
Government programs and services provides a coordinated and uniform
Fund aims to improve the competitive
approach to program delivery for RDV.
Minister
State and Regional
Development
Secretary
DIIRD
Regional
Development
Chief Executive
Adviser, energy and Advisory Committee
Regional Development
water projects
Victoria
Office of
Chief Executive
Regional
Regional Regional Regional Strategy
Infrastructure
Industries Operations & Coordination
Development
Executive Support
Investment & Regional Office Regional Infra- Marketing & & Coordination
Strategy Coordination structure Dev. Fund Communication
Food Barwon South Small Towns Strategy
Group West Dev. Fund & Policy
Resource Based Moving Forward/
Grampians
Industries PVGF
Rural Technology Loddon Business &
& Innovation Mallee Community Liaison
Quality and
Hume
Programs
Gippsland
PAGE | annual report
2.3 Regional Development Advisory Committee
The Regional Development Victoria Act 2002 provides for and marketing, are members of the Regional Development
the establishment of a Regional Development Advisory Advisory Committee:
Committee to advise the Government on matters relating to
Ms Jo Bourke
community and economic development in rural and regional
Mr John G Brown
Victoria and provide support in promoting and growing rural
Mr Ed Coppe
and regional Victoria.
Ms Jenny Dawson
The Committee consists of the Chief Executive of RDV, Mr Richard Elkington
who is the Chair, and six members representing rural and Ms Mary Molloy.
regional Victoria. Committee members were approved by the
During 2005/06, the Committee met in Ballarat/Beaufort,
Governor in Council on 2 September 2003.
Melbourne, Woodend and Wangaratta.
The following rural and regional Victoria representatives,
The Committee has continued to make a valuable contribution
offering wide ranging backgrounds and expertise in economic
to the Government’s regional development agenda.
development, community development, finance
The first (three year) term of the Committee expires on
1 September, 2006.
Regional Development Advisory Committee
Minister for State and
Regional Development
The Hon John Brumby, MP
Chair
Fran Thorn
Acting Chief Executive, Regional Development Victoria
Secretary, Department of Innovation, Industry and Regional Development
Advisory Committee
Jo Bourke John G Brown Ed Coppe
Jenny Dawson Richard Elkington Mary Molloy
PAGE
PAGE| | Year in Review
annual report
3.1 Highlights 2005/06
In 2005/06 RDV delivered on the Government’s commitment to grow all of the
state by delivering a range of government programs and services.
Bushfire Recovery
The January 2006 bushfires tragically claimed the lives of three Victorians, burned out 159,746
hectares, destroyed 57 houses and claimed more than 71,480 head of stock.
RDV chaired an interdepartmental committee to support a Ministerial Taskforce established by
the Premier in January 2006. The Taskforce delivered a $10.8 million recovery package to help
rebuild and restore Victorian communities affected by the bushfires in the Grampians, Brisbane
Ranges, Gippsland, South West Victoria, Kinglake and Yea.
RDV is delivering several components of the Bushfire Recovery Package to assist Victorian
communities affected by bushfires in 2006:
• Up to $500,000 to support economic and social renewal projects in fire-affected
communities
• Up to $1.8 million to fast track 16 projects with a total value of $5.3 million under the
Small Towns Development Fund, to boost confidence in fire-affected regions
• Up to $100,000 for one-on-one advisers to business to assist recovery.
Community Development Program (CDP)
Funding of up to $10,000 per event was provided for new event-based activities that foster
community and economic development in the nine interface councils. The program provides
funding to local government and incorporated organisations to undertake event-based projects
that support community and economic development. Grants from the CDP totalled $131,760
in 2005/06, and supported events including launches of farmers’ markets and community
facilities, shopping precinct festivals, youth celebrations and business week activities.
Community Capacity Building Initiative – Macpherson Smith Community
Alliance
RDV, in partnership with the Helen Macpherson Smith Trust, made grants available to projects
identified by rural communities that were part of an earlier joint Community Capacity Building
Initiative. In 2004, RDV, in partnership with the Helen Macpherson Smith Trust, established
the $1 million Macpherson Smith Community Alliance (MSCA) with RDV and the Trust each
providing $500,000 over two years. In 2005, this partnership was strengthened through another
$500,000 commitment each from both RDV and the Trust. In 2005/06, 22 grants totalling
$554,551 were approved.
PAGE | 11Community Regional Industry Skills Program In 2005/06, eight grants under the expanded CRISP were
approved with total grant funding of $610,000. Grants were
The Community Regional Industry Skills Program (CRISP) is a
provided to assist Tatura Abattoirs to undertake a $5.6 million
key component of the Victorian Government’s commitment to
expansion of its meat processing facility delivering
promoting employment growth and economic development
80 new jobs; and Unilever Tatura to undertake a $3.9 million
across Victoria. RDV has managed the delivery of almost
expansion of its food manufacturing facility, creating up to
$5 million of CRISP funds since 2003/04 to focus on
17 new jobs. The two grants total $310,000.
addressing skills needs at enterprise level (CRISP – Business).
(See section 3.2 Case Studies)
CRISP - Business has played a strong role in tackling skills
shortages and building skills capabilities in regional areas
and has attracted strong support from regional businesses
Food Strategy
and councils. RDV continued to implement the Next Generation Food
Strategy, the Victorian Government’s $2.3 million strategic
CRISP - Business grants approved in 2005/06 will offer action plan for the food processing industry along the supply
assistance worth more than $2.5 million for 22 projects. One chain. Involving over 170 stakeholders, the strategy was
significant project, assisted by an $800,000 CRISP grant, is developed with industry and contains initiatives across seven
the establishment by SalesForce, one of Australia’s largest key areas:
outsourced call centre companies, of a new $4 million call
centre facility in Geelong that will create up to 230 full-time • Sustainability
jobs. (See section 3.2 Case Studies). • Product integrity
• Export
In November 2005, in Moving Forward: Making Provincial • Industry and regional development
Victoria the Best Place to Live, Work and Invest, the • Innovation
Government announced a further $5.5 million from the • Education, training & careers
Provincial Victoria Growth Fund to extend CRISP Business • Promoting excellence.
and expand into three new areas:
There are 59 projects currently completed or underway.
1. Building business skills
Support for business to enhance business skills, including
Grow Your Business, Agenda for New
marketing, managing change, workforce training,
and promoting regional specialisation, clustering and Manufacturing and Opening Doors to Export
networking. Programs
Under these programs, assistance was provided to
2. Support for communities to fill skills gaps
companies to undertake a range of projects which aimed
Councils, businesses and community groups can seek to improve and build their business in areas including export
help to attract workers to meet specific skills shortages or and technology.
fill specific positions. One-off grants can be provided for
activities such as advertising, using personnel firms and In 2005/06, a total of 172 individual Agenda for New
travelling to conduct interviews. Manufacturing and Grow Your Business grants valued at
$1,216,861 were provided to businesses and organisations
3. Targeting mature-age workers in provincial Victoria.
One-off grants to Councils, businesses and business
Of those grants, 115 were Grow Your Business grants valued
organisations for projects designed to maintain the
at $660,108, 36 were Agenda for New Manufacturing grants
participation of mature-age Victorians in the regional
valued at $344,003 and 21 were Opening Doors to Export
workforce, such as: training workers to meet skills gaps;
grants valued at $212,750.
using older workers as mentors/trainers; enhancing
technology skills of older workers; and creating new The program led to increased business, exports and
opportunities for mature-age workers in home-based employment and income in provincial Victoria.
businesses or telecommuting.
PAGE | 12annual report
Industry Development and Investment Facilitation Investment Attraction
RDV delivered a range of services to assist the development Regional Development Victoria contributed to the attraction of
of strategic industries in rural and regional Victoria. $1.13 billion of new investment in rural and regional Victoria,
These include: almost half of the State’s total new investment of
$2.48 billion.
• the food processing industry and related supply chain
sectors (including stockfeed, agricultural machinery and Along with this new investment, the creation of 1,598 new
equipment, irrigation and water storage equipment). jobs is anticipated, along with delivery of a projected $29.6
RDV works closely with the food industry to increase million in new exports and $138.6m in import replacement.
its international competitiveness and develop export Total regional investment for the past financial year was well in
opportunities. excess of the target of $600 million, and new job creation also
exceeded the target of 1,000 jobs.
• industries that add value to the State’s natural resources
(including forests and plantation-based industries, furnishing Investment has come from a broad range of industry sectors,
and building products, minerals extraction and processing including forest products $593.4 million, food processing
and energy generation). $194 million and energy $69 million.
Examples of regional investments and jobs secured in this financial year include:
Company Name Location Proj Investment $m Proj Jobs
Black Forest Timbers Pty Ltd Woodend $1.0
Macquarie Alternative Assets Management Moe $300.0 200
PaperlinX Maryvale $290.0 *
Murray Goulburn Co-operative Co Ltd Leongatha $44.0
Vestas Portland $9.0 50
Unilever Australia Ltd Tatura $3.9 17
Tatura Abattoirs Pty Ltd Tatura $5.6 80
Associated Kiln Driers Pty Ltd Colac $2.4 10
Keppel Prince Engineering Pty Ltd Portland $1.6 20
Air Radiators Pty Ltd Lara $1.4 30
Oz Press Wendouree $0.7 10
Pains Wessex Australia Pty Ltd Lara $0.7 25
Pengala Pty Ltd (Modern Olives) Lara $10.0 20
CE Bartlett Pty Ltd Wendouree $0.8 12
SalesForce Australia Pty Ltd Geelong $4.0 230
Best Bottlers Pty Ltd Mildura $2.5 14
Blue Lake Milling Pty Ltd Dimboola $1.2 30
Cotton On Clothing Geelong $3.5 40
GTS Freight Management Pty Ltd Mildura $7.0 15
Visy Board Pty Ltd Wodonga $17.5 35
* Two projects; $258 million and $32 million.
PAGE | 13Living Regions, Living Suburbs Program Moving Forward also announced over $200 million for a wide
range of other initiatives.
The Living Regions, Living Suburbs Program supported
initiatives promoting economic and social renewal in rural, Highlights of the statement included:
regional and interface communities throughout Victoria.
• A $20 million program for freight and distribution
Particular emphasis was placed on local and regional projects
infrastructure, a $30 million upgrade for local ports and
that achieved the development of a sound economic base
$31.5 million to keep the Port of Lakes Entrance open
through the social and economic revitalisation of individual
communities. In 2005/06, 36 organisations were supported • A $12 million extension of the successful Make It
through the program with more than $3.3 million in funding. Happen in Provincial Victoria campaign, including a new
campaign to showcase regional businesses, sponsorship
Make it Happen in Provincial Victoria campaign for regional events and the appointment of provincial
investment ambassadors
The Make it Happen in Provincial Victoria campaign,
launched in 2003, continues to be delivered by the Victorian • Major new support for small towns, including a $25 million
Government in partnership with the State’s 48 rural and boost to the Small Towns Development Fund bringing the
regional councils. The campaign is driven by a Steering total available under the Fund to $45 million, along with
Committee comprising representatives from provincial improved conditions for small towns to access the Fund
Councils, regional development bodies and government • Investment of $43 million in a range of initiatives to boost
departments. skills, including expanded training opportunities in areas
The Make it Happen campaign combines advertising to of skills shortage, new support to attract skilled migrants,
raise awareness of the opportunities to live, work and invest an extension of CRISP and a new Make Your Career
in provincial Victoria with a grants program for provincial Happen in Provincial Victoria campaign
Councils to help them capitalise on the heightened interest • A $38 million boost to regional and local bus and
in their regions. In addition, a new Sponsorships and Events transport connections, targeted towards communities
Program provides funding for local and key regional events facing rapid population growth and significant
that help showcase the liveability of provincial Victoria to demographic change
people from outside the region, particularly Melburnians.
• Strategic Industry Development Packages worth
The Make it Happen campaign has also encouraged a greater $46 million to support growth and competitiveness in
cooperation between provincial councils, with many of them key primary industries, including $11 million to support
combining their efforts and dollars to help attract more people Victoria’s dairy industry and associated new investment
and investment from Melbourne. by the industry and a
$27 million package of support for the earth resources
Moving Forward: Making Provincial Victoria the and energy sectors
Best Place to Live, Work and Invest • A major $27 million package of support for tourism,
In November 2005, RDV led the coordination and including investment in regional marketing, tourism
development of the $502 million action plan for growth in signage and tourism skills, and a Provincial Pathways
provincial Victoria, Moving Forward: Making Provincial Victoria program that will support the creation of the Great
the Best Place to Live, Work and Invest. Victorian Coastal Walk, new rail trails and walking tracks
Moving Forward renews the Regional Infrastructure • New investment of $34 million in arts, cultural and
Development Fund with a further $200 million and establishes recreational facilities, including $20 million for regional
the $100 million Provincial Victoria Growth Fund. Together, arts infrastructure and a tripling of funding for the Country
these funds will deliver substantial new support for local Football and Netball Program, and
communities across provincial Victoria, providing a strong
• $13.5 million to help local councils manage and plan for
foundation for future growth, economic development and new
population growth, develop economic opportunities and
opportunities in business and industry.
provide a wider range of housing options.
PAGE | 14annual report
PAGE | 15Regional Business Investment Ready Program RIDF Projects
(RBIRP) In 2005/06, the Victorian Government announced funding
The Regional Business Investment Ready Program is a three- from the RIDF worth $94.8 million. (A full list of the announced
year program designed to assist the attraction of a greater projects is identified in section 5, Grants and Output Targets.)
flow of capital into provincial Victoria. The program provides a New RIDF projects funded in 2005/06 include:
range of tailored and structured services to assist high growth
potential regional business owners. • The Gippsland Water Factory ($25 million RIDF grant),
which will see construction of a regional waste water
Through its local government stream, the program aims to treatment plant that will increase water reuse for industry
address issues surrounding the financing of public asset and improve the quality of water to outfall. The project
development and renewal projects. will leverage an expected investment of $258 million by
The first series of Finance for Business Growth workshops Australian Paper in its Maryvale Mill and $300 million
was completed with a total of 144 participants across through Macquarie Bank in plantation timber over the
regional Victoria. The first 11 Roadmap for Successful next 20 years
Commercialisation workshops were delivered with 99 • Supply of Natural Gas to South Gippsland ($27
participants accessing this service. The other three modules million RIDF grant), including Lang Lang, Leongatha,
(Mentoring for Commercialisation, Mentoring for Investor Korumburra, Wonthaggi and Inverloch, that will provide
Readiness and Investor Forums) undertook extensive massive savings to businesses and the community.
establishment activities and momentum is building in regional A study by KPMG estimated that natural gas would
Victoria for these services. As an example of the results deliver a $57 million net boost to the to South Gippsland
expected from the mentoring elements of the program, a economy and create almost 60 jobs a year for 20 years
regional manufacturer received $167,000 of Commercial
Ready funding (AusIndustry) after receiving assistance under • The Cohuna Industrial Estate ($500,000 RIDF grant),
RBIRP. This represents a leveraging of 12:1 (Commonwealth: which Gannawarra Shire Council estimates will directly
State). deliver 35 new jobs and $8.9 million in investment to
Cohuna, as well as additional “flow on” benefits
Administered by the Municipal Association of Victoria,
the local government stream of RBIRP delivered seven • The upgrading of the Avalon Airport Apron ($400,000 RIDF
workshops to councils (covering infrastructure investment grant), which has enabled Jetstar to accommodate more
issues) and five master classes – Collaborative Procurement: planes and improve manoeuvrability at the airport terminal.
Roads Procurement; Debt Financing; Real Estate: Maximising As a result, Jetstar has already been able to increase the
the value of your Assets Now and in the Future and number of flights operating from Geelong’s Avalon Airport,
Understanding Asset Management (two sessions). and expects further increases in the near future
• An extended university campus at Deakin University in
Regional Infrastructure Development Fund Geelong ($6 million RIDF grant) that will accommodate
additional students and staff, provide new courses and
The Regional Infrastructure Development Fund (RIDF)
learning opportunities for local students, and address key
facilitates investment, employment and export opportunities in
areas of skills shortage in regional Victoria
provincial Victoria through the provision of funding for capital
works with a focus on industry development, transport, • The Sovereign Hill Tourism Infrastructure Project
tourism, and education and information and communication ($3 million RIDF grant) that will assist efforts to attract
technologies. more visitors to the Ballarat region, especially from
the emerging markets of China and Korea. The
redevelopment project is crucial in addressing the
development of sustainable and new visitor markets,
and also in increasing visitor yield.
PAGE | 16annual report
Small Towns Development Fund Projects A report undertaken by KPMG found that the NGEP would
A sub-program of the RIDF, the Small Towns Development provide a $427.6 million net economic boost for provincial
Fund (STDF) helps small towns undertake practical economic Victoria over the next 20 years and generate around 395 new
and community development initiatives. The STDF targets full-time equivalent jobs each year for 20 years.
projects that aim to create new opportunities for economic These expected benefits are being realised, with the NGEP
growth via economic and social infrastructure. rollout already reducing the cost of doing business for
In 2005/06, the Victorian Government approved funding from organisations across the state, including the Historic Woori
the STDF worth $10.2 million towards 92 projects. A full list Yallock Hotel (the first NGEP connection), Patties Foods,
of these approved projects is identified in section 5, Grants Bairnsdale Hospital, GlaxoSmithKline, Fennings Timber, and
and Output Targets. local pools in Bairnsdale, Paynesville and Yarra Junction.
In November 2005, in line with the Government’s Moving Households connecting to natural gas are saving between
Forward Statement, an additional $25 million became $600 to $1,200 each year.
available under STDF. The funding formula was also The NGEP is also benefiting Victorian contractors, with
improved, with grants being made available to councils on a Dandenong-based Champ Constructions making significant
$2:$1 basis (from $1:$1) and the maximum funding amount capital investment and increasing employment as a result of
increasing to $250,000 (from $200,000). These changes have winning NGEP construction contracts.
prompted a significant rise in the average grant value, from
approximately $63,600 in 2004/05 to $111,000 in 2005/06.
$200 million renewal of the Regional Infrastructure
STDF projects funded in 2005/06 include: Development Fund
• National Vietnam Veterans’ Museum, Newhaven, In November 2005 the Government announced a $200
Phillip Island ($250,000) million renewal of the RIDF as part of Moving Forward: Making
Provincial Victoria the Best Place to Live, Work and Invest.
• Winton Gateway Streetscape ($150,000)
The renewed RIDF includes a number of new priority areas:
• Coast to Craters Rail Trail Stage 1,
Timboon to Port Campbell ($250,000)
Small Towns Development Fund
• Newmerella to Orbost Connecting Pathway ($80,000) A $25 million increase to the Small Towns Development
• Jeparit Entry and Museum Project ($36,500). Fund to help small towns develop economic and social
infrastructure, including an increase in the maximum
Natural Gas Extension Program (NGEP) funding amount and a revised funding formula.
A sub-program of the RIDF, the Natural Gas Extension
Program (NGEP) is supporting the provision of natural Intermodal Freight Hubs
gas to new areas of provincial Victoria. An allocation of $20 million to facilitate the development
of intermodal hubs at key locations in regional Victoria to
During 2005/06, the Government announced the final project
improve the performance of the supply chain between
to be supported under the $70 million NGEP – supply of
regional export industries and ports, and to complement
natural gas to five towns in South Gippsland. The five South
developments occurring in the growth of urban intermodal
Gippsland towns bring the total number of towns that will be
facilities.
connected under the NGEP to 34.
During 2005/06, construction work to lay gas pipelines Local Ports
accelerated. Over 325 km of gas pipeline has now been laid,
An allocation of $20 million for new investment at local
and at 30 June 2006, 22 of the 34 towns had works underway
ports to upgrade, enhance and replace infrastructure,
to supply them with natural gas. Works are scheduled to
enabling them to remain important economic and
commence for the remaining 12 towns in 2006/07.
community assets, for the commercial and recreational
By 30 June 2006 new natural gas connections had been fishing and boating industries.
achieved in 12 towns as a result of the NGEP.
PAGE | 17Building Arts and Cultural Infrastructure Regional Networks (Victorian Business Centres)
An allocation of $20 million to build and upgrade regional RDV was widely accessible through Victorian Business
arts facilities that are capable of supporting a full spectrum Centres located across Victoria in Ballarat, Bendigo, Geelong,
of arts programs, similar in style and range to city centres. Mildura, Shepparton, Traralgon, Wangaratta and Wodonga.
They provided a first point of contact for businesses and
Provincial Pathways communities seeking to access Government services.
An allocation of $7.6 million to develop rail trails, pathways RDV staff were also located in Ararat, Bairnsdale, Colac,
and walking track projects that demonstrate the potential to Horsham, Seymour, Warragul and Warrnambool.
stimulate tourism and economic activity by attracting more
Regional offices actively marketed and promoted business
people, jobs and investment to regional Victoria and promote
and economic development programs and services to the
sustainable development and better land management.
following key local stakeholders:
Dairy Industry Roads • local government/development associations and
service authorities
An allocation of $6 million to improve local roads on key
dairy routes and access to dairy farms, enabling safe and • industry/business associations
efficient operation of B-double milk tankers. • community groups
Section 3.3 Regional Infrastructure Development Fund • potential and established local businesses, and
Projects in Review, reports on the outcomes of a number
of completed RIDF and STDF projects. • relevant State and Federal government departments.
Regional offices also worked closely with other agencies
Regional Innovation Clusters Program to maintain a whole-of-government approach to service
The program is a three-year initiative to assist businesses and provision. They provided information and referral services
create jobs and investment in rural and regional Victoria by for business, through co-location with other Government
supporting growth clusters. Four components of assistance and business providers, including:
are delivered under the program, based on where a cluster is • Area Consultative Committees
in its growth cycle. Funding was available to clusters that had
• AusIndustry
established as incorporated bodies, and to the 48 rural and
regional and the nine interface councils. In 2005/06, grants • Austrade
totalling $515,000 were provided to eight clusters in a range • Australian Taxation Office
of industry sectors across regional Victoria. • Department of Primary Industries
• Department for Victorian Communities
Regional Investment Initiative • Industry Capability Network
This program commenced in 2004/05 to support projects that • TradeStart
will attract new investment, assist in retaining and expanding
• Victorian Employers’ Chamber of Commerce
existing businesses and improve the business practices of firms
and Industry, and
in regions. This program is available to regional businesses,
regional councils and interface councils. In 2005/06, grants • Other local economic development agencies.
were approved to support 53 projects with a grant value of
almost $1.9 million. The grants were provided for a variety of Small Business Advice and Referral Services
investment-related projects such as investment opportunity A range of services were provided to rural and regional small
studies, economic development strategies and workshops, and businesses, including information on starting, expanding and
business workshops. managing a business, referral to specialist service providers,
access to enterprise development programs and investment
facilitation assistance.
PAGE | 18annual report
Trade Fairs and Missions Program VicStart Regional Technology Commercialisation
The Trade Fairs and Missions Program is central to RDV’s Program
efforts in achieving the Victorian Government’s agenda Based on the successful 2004 Pilot Regional
for export growth. The Trade Fairs and Missions Program Commercialisation Program and funded by the Office of
provides targeted financial assistance for three key activities: Business Innovation and Strategy, the VicStart Regional
overseas trade fairs, overseas trade missions and inward Technology Commercialisation is a three year program.
buyer missions. It involves a program of practical workshops, run over
In 2005/06 Regional Development Victoria provided financial approximately 12 weeks, to help innovative individuals
assistance totalling $242,000 to 114 export-ready Victorian and businesses develop business cases to commercialise
companies from the food and beverage, furniture, timber and new products. Services are delivered under contract by a
mining sectors to participate in six overseas trade fairs and two specialist provider.
trade missions. Participating companies collectively reported that RDV actively facilitated the delivery of the first annual cycle of
they would increase annual exports by more than $58 million the three-year program in major regional centres. A total of 65
as a direct result of participating in the Trade Fairs and Missions businesses took part in one-day diagnostic workshops and
Program. 31 businesses graduated from the three intensive eleven-
Food & Hotel Asia 2006, the largest food trade show in week programs of business-case building, which culminated
South-East Asia, had 41 Victorian food and beverage in presentations to an independent expert panel.
companies exhibiting with assistance from RDV.
Exhibitors reported immediate sales of $700,000 and
anticipated exports of $4.3 million over 12 months and
$10.3 million over 24 months. RDV also provided tailored
services to the companies, including market research and
analysis, business matching, cultural awareness training and
business networking activities.
RDV also organised visits to Victoria by 12 international
buyers. The companies, from Singapore, Hong Kong, Japan,
Brunei, India, United Arab Emirates, Italy, the United States
and Mexico, met with over 100 Victorian companies.
Case example
Inwards Trade Mission – Hong Kong, Taiwan & Vietnam
An inwards buyer mission sponsored through the Trade
Fairs and Missions Program provided the opportunity for 14
regional and metropolitan companies in the building product,
furnishing and environmental sectors to showcase their wares
to nine buyers representing seven companies from Hong
Kong, Taiwan and Vietnam. More than $60,000 of sales were
negotiated immediately after the mission, held in Geelong
from 28 May to 1 June. Sales expectations in the next two
years are about $8.5 million.
PAGE | 193.2 Case Studies 2005/06 Case Study 3
PROVINCIAL LEADERS DEVELOPMENT PROGRAM MOVES
The case examples in this section showcase the FORWARD IN LODDON SHIRE
achievements of Regional Development Victoria A $100,000 grant to the Loddon Shire Council through the
through the delivery of programs and services that Provincial Leaders Development Program – Regional Leaders
capture opportunities for business and community Initiative will help develop creative and confident community
growth in provincial Victoria. leaders drawn from 11 regional shires over the next two
years. The program involves structured activities and events,
held throughout the region. The participants will benefit from
Case Study 1 an increased awareness and understanding of regional issues
CALL CENTRE FOR GEELONG and resources and will develop regional leadership networks
A $800,000 grant through the Community Regional Industry that will benefit and strengthen communities and industries.
Skills Program will help SalesForce, one of Australia’s largest
outsourced call centre companies, hire and train staff at the Case Study 4
new $4 million call centre to be established at the former SURF’S UP FOR THE CLUSTERS PROGRAM
woolstore on Moorabool and Brougham streets, Geelong.
The project will provide up to 230 full-time jobs, will increase A cluster to develop the surf and lifestyle industry around
the local pool of skilled employees and boost economic Geelong and Torquay was established with the help of
development opportunities in Geelong and the South a $50,000 grant under the Regional Innovation Clusters
West region. Program. The funding was provided to Surf Coast Shire
Council to support the Surf and Lifestyle Torquay (SALT)
industry cluster group. Companies driving the SALT industry
Case Study 2 cluster group include: Rip Curl, Quiksilver, Propaganda
$10 MILLION NEW INVESTMENT AND 97 NEW JOBS FOR Screen Printing, Strapper Surf Boards, Martini Fibreglass
TATURA Industries, Fast ‘n’ Fun Innovative Recreation and Adventure
Two separate grants through the Community Regional Airsports Kite Surfing. This unique cluster project will help
Industry Skills Program (CRISP) helped deliver nearly the development of the surf and lifestyle industry in Geelong
$10 million in new investment and almost 100 jobs to the and the Surf Coast region by strengthening innovation and
town of Tatura. productivity, and boosting the region’s natural competitive
advantages.
The grants would enable Tatura Abattoirs to undertake a
$5.6 million expansion of its meat processing facility delivering
80 new jobs; and Unilever Tatura to undertake a $3.9 million
Case Study 5
expansion of its food manufacturing facility, creating up to Upgrade to Elmore Field Days Site
17 new jobs. Accommodates More Visitors
The two grants worth a total of $310,000 under CRISP would A $200,000 Small Towns Development Fund grant
create new employment opportunities, boost economic contributed to the $660,000 upgrade of the Elmore Field
development in Tatura, and increase the local pool of skilled Days site, enabling it to hold major events. The project
employees. included upgrades to public amenities including showers,
toilets, change rooms and effluent treatment. The upgrade
will enable the site to host the 21st Scouts Australian National
Jamboree in 2007, which will draw more than 12,000 scouts
over a 10-day period, and many thousands more in family
members and visitors to the camp. Bookings for the January
2007 Jamboree are exceeding expectations. The event is
expected to contribute more than $2 million to the region
and provide a bonus for traders and tourism operators
in the region with towns such as Echuca, Rochester and
Shepparton also expected to benefit from the influx of visitors.
PAGE | 20annual report
Case Study 6 The new facility has not only enabled the Wellington Shire
Council to rationalise several old and underutilised buildings,
THE GREATER REGIONAL DEVELOPMENT PICTURE IN
but it also saw community organisations working together for
GIPPSLAND
better outcomes.
In August 2005 Australian Paper announced an investment of
$258 million to expand its Maryvale pulp and paper mill. The
project will generate 400 construction jobs over the next two
Case Study 8
years. Australian Paper’s project coincides with Macquarie ALPINE VALLEY EXPORTERS HEAD TO SOUTH-EAST ASIA
Bank’s plans to invest up to $300 million on new sustainable Ten food and wine companies from North East Victoria
timber plantations to supply the upgraded pulp and paper participated in a two-month promotion of their gourmet
mill. This will lead to a further 200 jobs in harvesting and products in Singapore with the assistance of a Next Step
plantation management. Exporter Collaborative Export Marketing Program grant.
Gippsland Water, the local water utility, also announced its The initiative, known as AlpValleys to Asia, built on the
more than $140 million waste water treatment facility that will success of other regional Australian promotions but targeted
result in more recycled water being available to industry and a more specialised gourmet food market niche. Three of the
reduced waste water outfalls. participants were first-time exporters and five had limited
export experience – only two were regular exporters. This
The Victorian Government contributed $50 million to the new project was the beginning of a long-term export relationship
treatment plant, to be known as the Gippsland Water Factory. for the participating companies and is expected to result in
The Government’s $50 million is made up of $25 million from on-going export orders.
the Regional Infrastructure Development Fund through Regional
Development Victoria and $25 million from the Victorian Water
Trust. The new Gippsland Water Factory will treat effluent Case Study 9
from the Maryvale plant and recycle it into Class A waste NEW WING TECHNOLOGY STRENGTHENS WATER TANKS
water, ready for re-use by the mill and other industries, saving Irymple company, Global Roto-Moulding Pty Ltd
otherwise valuable drinking water for local water supplies and manufactures a range of large industrial roto-moulded plastic
taking pressure off local dams and stressed rivers. products. The drive to encourage water conservation has
This combined project will boost economic activity in the led to a significant increase in the demand for underground
Latrobe Valley by an ongoing $130 million per annum. And water tanks. A $20,000 grant from the Technology Evaluation
by replacing around 80,000 tonnes of bleached pulp that Program has helped Global Roto-Moulding develop a new
previously came from overseas every year, the Maryvale pulp range of underground water tanks featuring a unique wing
and paper mill project will single-handedly cut Australia’s design that provides additional stability for the tanks.
trade deficit by around $80 million each year.
Case Study 10
Case Study 7 VIETNAM VETERANS MUSEUM
ROSEDALE MULTIPURPOSE COMMUNITY CENTRE The National Vietnam Veterans Museum is the sole national
A $200,000 Small Towns Development Fund grant assisted in museum for the Vietnam War in Australia. A $250,000 Small
the $2.55 million development of a multipurpose community Towns Development Fund grant to the Bass Coast Shire
centre in the small Gippsland town of Rosedale. The new will help complete the second stage of the Museum at
facility, which includes a Neighbourhood House, a municipal Newhaven, Phillip Island. This will include a new interactive
library, a doctor’s surgery, community health facilities, meeting audio visual display and installation space, as well as
rooms and childcare facilities is now the hub of community landscaping, a new car park and access for people with
activity. Since its opening, library membership and use has disabilities. The Museum will provide a place of healing for the
increased and the new meeting rooms are being used by a Veteran community and the general public, and an unbiased
wider range of organisations. historical display for the interest and education of future
generations.
PAGE | 21Case Study 11 The project will boost the local economy by providing
more attractive facilities for residents and visitors including
150 NEW JOBS IN $15M FONTERRA GLOBAL R&D
upgraded water and waste water infrastructure, major
CENTRE
landscaping improvements, underground power lines
When the world’s largest dairy exporter, Fonterra, announced along Viaduct Road, and a newly-developed outdoor
it would establish its new Global Consumer and Food recreation area. The improvements will pave the way for the
Research and Development Centre in Victoria, RDV’s redevelopment of the existing Yacht club site and create
Regional Industries Group, led the celebrations. RDV worked opportunities for further harbour improvements. The project
closely with Fonterra to bring the centre to Victoria because had been the subject of extensive community consultation
of the significant boost it would provide for the State’s dairy and had received a high level of community support.
industry. The new centre, to be based in Melbourne’s south-
east, will directly employ about 150 people, mainly in high-
skilled research positions, and involve an initial investment of
Case Study 14
up to $15 million. It is expected the centre will attract leading MAINTAINING A HEALTHY GLOBAL FOOD SUPPLY CHAIN
researchers from Fonterra’s global operations as well as issue In the age of avian flu and bio-terrorism, maintaining a healthy
significant external R&D contracts to support its own in-house global food supply chain is a challenge. That’s why The
programs. International Food Chain Integrity and Traceability Project, is
so important. The project, supported by the Next Generation
Case Study 12 Food Strategy, will develop a supply chain documentation
system to improve the quality, safety, security and business
10 GRANT ENGINEERS A POSITIVE OUTCOME
efficiency of Australian food exports. The project, which
A $15,000 Grow Your Business grant helped Campaspe brings together stakeholders along the export supply chain
Shire Council facilitate an eight-week Business Planning using technology that traces food products all the way from
Workshop for 10 local engineering firms. Each operation has Australian farmers to overseas retailers, will gain the world’s
grown as a result of their involvement in the workshops and trust of the integrity of Australian food exports. Released
the formation of a local Engineers Network is another positive in October 2004, the Next Generation Food Strategy is
outcome. The program generated nine new employment the Government’s framework to support Victoria’s food
positions, six new contractor positions and one participant processing industry as it develops and grows.
purchased a second business. The Campaspe Shire, through
its economic modelling, estimates the program and its flow
on effects will inject an extra $5 million into the Campaspe
Case Study 15
economy over the next 12 months. BIODIESEL PLANT THE FIRST OF ITS KIND IN AUSTRALIA
Biodiesel Producers Pty Ltd is a start-up company that
Case Study 13 will make biodiesel using technology under licence from
an Austrian-based company. This will be the first biodiesel
WARRNAMBOOL HARBOUR PRECINCT REVITALISATION
plant of its type in Australia and the project will provide up to
PROJECT (STAGE 1)
24 full-time jobs. A grant through the Community Regional
Warrnambool City Council will improve and revitalise the City’s Industry Skills Program is assisting the company train new
harbour precinct with the help of a $378,000 Living Regions, staff to establish an operating plant capable of producing 60
Living Suburbs grant. Council estimates that the $880,000 million litres per annum of biodiesel from tallow (animal waste)
Warrnambool Harbour Precinct project will create up to and waste oils for markets in NSW, Victoria and ACT.
57 new jobs, generate $19 million in new investment, and
provide a massive boost to tourism in Warrnambool.
PAGE | 22annual report
Case Study 16 The US market is estimated to be 50 to 100 times the size
of the Australian market and the export of Exago’s product
$230,000 FOR BACCHUS MARSH MADDINGLEY PARK
to the US will significantly enhance Victoria’s reputation in the
UPGRADE
information and knowledge management areas.
A $345,000 upgrade of Bacchus Marsh’s historic Maddingley
Park will provide facilities for visitors and locals to enjoy
for many years to come. The $230,000 Small Towns
Case Study 19
Development Fund grant to Moorabool Shire Council, is $ 3.8 MILLION FOR MAGIC NEW SOVEREIGN HILL
expected to attract more visitors to Bacchus Marsh and ATTRACTIONS
create spin-off benefits for local businesses. Major works A new Reinventing the Magic project will give Sovereign
include upgrading and landscaping the gardens; restoration Hill visitors first-hand experience of the risks that miners
of the path network; restoration of historic structures; and took every day of their working lives. The $3.8 million
upgrading of public amenities and the surrounding area. redevelopment of Sovereign Hill in Ballarat through funding
from the Regional Infrastructure Development Fund will
Case Study 17 enable the construction of a new inclined tramway ride and
a new state-of-the-art multi-media presentation detailing the
$110,000 BOOST TO INCREASE VISITORS AT ARARAT’S J
1882 Creswick Mine Disaster. The redevelopment will include
WARD TOURIST FACILITY
two new attractions and renovations to five existing exhibits.
A $110,000 grant through the Small Towns Development The redevelopment project will help Sovereign Hill develop
Fund for the $165,000 upgrade to Ararat’s J Ward tourist sustainable and new visitor markets and increase visitor yield.
facility helped support fire-affected communities in the
Grampians region. Funding to Ararat Rural City Council was
brought forward in response to the devastating bushfires that
Case Study 20
swept through the area in January 2006. A heritage-listed LITTLE DOVE RETURNS TO PORT FAIRY 400 YEARS
former prison for the criminally insane, J Ward is a unique AFTER FIRST LANDING
and important regional tourist facility that attracts more than A $7,500 grant through the Provincial Victoria Local Events
12,000 people each year. This project – to restore two of the Program helped Moyne Shire Council hold a four-day event,
guard towers at J Ward and redevelop the former recreation in June 2006, to commemorate the 400th anniversary of
area into a conference centre and meeting area with the first documented European contact with Australia.
interpretive signage – is expected to attract more people to A cornerstone of the event was the berthing of The Duyfken
the region, providing a boost to local tourism and economic (Little Dove) in Port Fairy.
development.
A total of 5,613 people boarded the vessel over its four days
in Port Fairy, including 1,800 in just one day. The program
Case Study 18 of activities included a civic reception with an indigenous
LIMA SOUTH COMPANY EXPLORES EXPORT welcoming ceremony, displays of historic material,
OPPORTUNITIES TO THE USA re-enactments including cannon firing, and a market.
The Port Fairy Traders Association reported an overall
Exago Pty Ltd is a small innovative company that has
increase of 10 to 35 per cent in turnover with an up-to-
patented a state-of-the-art supply-chain monitoring system.
40 per cent increase in food provider takings compared
The system enables supply chain partners to check the
with the same period 2005.
temperature, humidity and location of perishable products
throughout their journey from farm to shop. A $2,418 grant
through the Opening Doors to Export Program helped Exago
Pty Ltd, which is located in Lima South in Victoria’s North-
East, explore export opportunities to the US. The grant
enabled Exago’s Managing Director to visit the US and start
negotiations with a potential partner.
PAGE | 233.3 Regional Infrastructure Development Fund projects in review
From its inception in 2000 to 30 June 2006, the RIDF has provided approximately $318 million to 111 major
projects with a total value in excess of $850 million. Of the 111 announced projects, 69 had been completed
by 30 June 2006. The outcomes of a number of completed RIDF projects are provided in this section.
DemoDAIRY, Terang. Bendigo Exhibition Centre
In 2001, the Government provided $100,000 from the RIDF In October 2004 the Government announced a
to DemoDAIRY, through Corangamite Shire Council, to $2.5 million RIDF grant to the Greater Bendigo City Council
upgrade key infrastructure. DemoDAIRY is a not-for-profit for the Bendigo Exhibition Centre. According to the Bendigo
research and demonstration co-operative for the promotion of Agricultural Show Society, the completed Exhibition Centre is
dairy farming best practice in South West Victoria. the largest clear span exhibition space in regional Australia,
with 5,600 sqm of floor space.
Since completion of the funded improvements, research and
demonstration activity at DemoDAIRY has intensified, with The Centre opened in July 2005 and in its first year of
researchers/staff numbers increasing from two to 17, annual operation attracted 120,000 visitors to 12 major events.
extension days and expos growing from 14 to 33, and dairy The Centre attracted several new events to Bendigo,
demonstration sites increasing from three to 10. including the Alpaca Show and Sale, the National Beef
Show, Eco V and the National Homemaker Expo. With a
With the facility now at physical capacity, in 2005/06 the
number of the new and existing events having a national
Government approved a grant of $250,000 through the
focus, the Bendigo Exhibition Centre has generated flow-
STDF to assist DemoDAIRY in its next phase of growth.
on benefits to other sectors of the local economy, including
accommodation, catering, staging and equipment hire.
Murray Goulburn Co-operative Co Ltd,
Cobram – milk production expansion and
water re-use system
In late 2002, the Government provided $1.25 million from the
RIDF to Murray Goulburn Co-operative Co Ltd for a water
reuse scheme at Cobram. The $7.7 million project saw the
construction of a 37 kilometre pipeline to distribute 1,000
megalitres (one million litres) of nutrient-rich, recycled water to
eight dairy farms for irrigation.
Completed in time for the 2004/05 August to May irrigation
season, the pipeline dispersed 991 megalitres of recycled water
to the eight farms, reducing reliance on irrigation water across
1,515 hectares of farm land. The nutrient-rich recycled water
contains around half the annual fertiliser requirements, reducing
costs to participating farmers and improving pasture production.
The ability to treat and dispose of larger volumes of waste water
has also enabled Murray Goulburn to increase product mass
and associated employment at the Cobram plant.
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