The Economic Strategy

The Economic Strategy for Melbourne ’s South East is a structured set of economic and strategic principles and identified project areas, projects and initiatives to provide a framework for the medium and long term development of the Region.  There are three principal components of the Strategy:-

1.       Economic Framework;

2.       Projects Framework;

3.       Implementation Framework.

5.1  Economic Framework

The Economic Strategy for Melbourne ’s South East provides a framework to facilitate public and private investment and address key issues and challenges which have been identified.  The underlying structure of the Strategy is set out in Figure 4.  At the broadest level, the Strategy may be viewed as a hierarchy of values, social and economic issues, and strategic principles.  It comprises:-

key commitment areas and a vision focused on achieving a balance of prosperity, equitable access and liveability for the region as a whole;

identification of the key elements which comprise the region’s social, economic and environmental context.  The Strategy is required to be responsive to the existing and emerging social and economic conditions in the region and their geographic and cultural context.  The development of the Economic Strategy for Melbourne ’s South East has taken full cognisance of:-

  • existing and emerging industry structure;
  • emerging employment patterns and future demands;
  • infrastructure requirements;
  • socio-economic patterns of the region;
  • business and human resource issues;
  • liveability issues;
  • business development and leadership;

recognition of the potential roles of the various levels of Government to secure the effective implementation of the Strategy These roles include:-

  • advocacy;
  • capital and recurrent expenditures;
  • legislative support;
  • policy development;
  • business and community development;
  • governance;

an identified set of strategic principles to guide the development of the Strategy.  Key issue areas addressed by strategic principles encompassed:-

  • leadership development;
  • education and industry partnership;
  • activity and business centres;
  • public transport and regional access;
  • industry development;
  • liveability;
  • building competitive advantage;

a list of potential projects to address each of the above key issues.

5.2 Projects Framework

The Economic Strategy for Melbourne ’s South East has been developed as a projects framework (refer Figure 5).  This shows the envisaged inter-relationship of key regional projects (a summary of major regional projects and implementation requirements is set out in Table 7 (Section 5.3).  The projects framework seeks to achieve the following outcomes for the region:-

  • a process and supportive framework to generate leadership for the region;
  • the core of the project’s framework focused on the revitalisation of existing activity centres and the development of new employment nodes along the Mitcham-Frankston Corridor.  The objective is to progress the Corridor as an integrated activities-transport system with significant north-south and east-west linkages (refer Figures 6 & 7);
  • identified land requirements for future industry and related servicesdevelopment;
  • targeted structure and actions to upgrade the region’s business environment;
  • projects to foster targeted improvements to key industries in the region;
  • supportive projects for regional improvements to infrastructure and liveability;
  • recognition of the region’s agricultural output and linkages;
  • provision for the development and linkages to the Port of Hastings .

 

In summary, the Projects Framework is directed to achieve a transformation of the region from a Melbourne-centric focus, with dependency on Central Melbourne for knowledge-based jobs and advanced business services, to a highly interactive north-south region based on a series of revitalised and new employment/living nodes linked by a premium regional public transit system.  The Projects Framework is based on the recognition that the fostering of advanced business services should be progressed from the region’s manufacturing strengths, linked to its recognised education and research resources, and developed in new business and living environments.

5.3  Implementation Framework

Specified Regional Projects

As a further step in the progression of the Economic Strategy, a set of potential regional projects for detailed evaluation and development were identified.  Table 7 provides a summary of the identified regional projects, which are classified into groups as follows:-

Key Foundational Projects

Three projects are identified as being of highest significance for long term regional prosperity and sustainability.  These are:

  • Leadership;
  • Mitcham-Frankston Employment Corridor;
  • Transit Cities Infrastructure Development Fund.

The projects are aimed at stimulating regional transformation and provide a solid strategic foundation for advancing the South East.  Further, the leadership component provides guidance on coordination and impetus for realizing the overall strategy.

Major Regional Infrastructure Projects

Projects that are aimed at the development of major regional infrastructure include:

  • East-West Roads;
  • Water Recycling Project – Eastern Treatment Plant.

The roads project seeks to upgrade east-west road connections in the region to enhance accessibility and transport times.  This project is vital in connecting the outer south-east with the region’s economic driver areas, ensuring access to employment opportunities for fringe residents.  The water recycling project involves the

 

5.3  Implementation Framework

Specified Regional Projects

As a further step in the progression of the Economic Strategy, a set of potential regional projects for detailed evaluation and development were identified.  Table 7 provides a summary of the identified regional projects, which are classified into groups as follows:-

Key Foundational Projects

Three projects are identified as being of highest significance for long term regional prosperity and sustainability.  These are:

  • Leadership;
  • Mitcham-Frankston Employment Corridor;
  • Transit Cities Infrastructure Development Fund.

 

The projects are aimed at stimulating regional transformation and provide a solid strategic foundation for advancing the South East.  Further, the leadership component provides guidance on coordination and impetus for realizing the overall strategy.

Major Regional Infrastructure Projects

Projects that are aimed at the development of major regional infrastructure include:

 

  • East-West Roads;
  • Water Recycling Project – Eastern Treatment Plant.

 

The roads project seeks to upgrade east-west road connections in the region to enhance accessibility and transport times.  This project is vital in connecting the outer south-east with the region’s economic driver areas, ensuring access to employment opportunities for fringe residents.  The water recycling project involves the progressive development of several water recycling schemes, stemming from the Eastern Treatment Plant.

Industry and Business Development

Projects directed toward industry and business development include:

  • Synchrotron Awareness and Opportunities Project;
  • Export Cluster Facilitation;
  • Regional Business Education Forum.

 

These initiatives aim to build on the region’s strength in manufacturing through the development of select export clusters, the identification of opportunities stemming from Australia’s first synchrotron, and the establishment of a South East ‘business to education’ forum, to upgrade regional skills and education provision.

Amenity and Liveability Projects

Projects aimed at enhancing regional amenity and liveability include the:

  • Dandenong Creek Project: ‘The Basin to the Bay’;
  • CentralHarbour at Frankston (Tourism Project);
  • Public Transport Service Delivery.

These projects aim to deliver enhanced environmental quality and public amenity in Melbourne’s South East, in order to boost the region’s image and attractiveness to investors and knowledge workers.

Regional Intelligence and Management

Projects focusing on regional intelligence and marketing include:

  • IndustrialLand Supply Project;
  • Regional Information System;
  • Marketing Project.

These projects will establish vital mechanisms to gather and disseminate information on property, infrastructure, companies, markets and industry assistance.  Such information is essential for the medium and long term strategic planning needs of business and industry.  The Marketing Project will establish a marketing strategy and branding identity for the South East region, enabling the promotion of a strong investment brand and image.

 

  • their key elements and components; and
  • assessed regional significance for sustainable economic development;
  • initial actions and project tasks which are recommended to be undertaken to further progress the projects;
  • Table 7 is referenced to a recommended process for the delegation of management responsibilities;
  • an outline of project objectives and success factors for the identified initial stages of implementation.

Evaluation Framework for Regional Projects

The specified regional projects have been taken through an initial evaluation in terms of economic, social and environmental impacts (refer Table 8).  Regional economic impact criteria addressed the following:-

  • the likely contribution of the subject project to regional exports and export development;
  • likely contribution of the subject project to the development and integration of regional infrastructure;
  • potential of the subject project to attract new investment into the region;
  • likely contribution of the subject project to the ongoing development of knowledge-based skills and employment.

Social assessment criteria addressed the following:-

  • potential contribution of the subject project to contribute to the greater diversity of living environments;
  • likely contribution of the subject project to contribute to the improvement of accessibility to existing and future employment;
  • potential contribution of the project to deliver improved leisure and recreation opportunities, environments and outcomes;
  • potential contribution of the project to improve access to training, education and research.

Environmental assessment criteria addressed the following:-

  • potential of the subject project to improve environmental quality in the district or region;
  • potential of the subject project to result in reductions of greenhouse gases;
  • likely contribution of the subject project to reduce stress on riverine systems and water catchments.

 

Projects were assessed in relation to the above criteria in terms of the likely scale of impacts, and in particular:-

  • the potential of the subject project to result in major transformational contributions to regional prosperity and liveability;
  • the potential of the project to deliver significant contributions to regional prosperity and liveability (in many instances it was likely that these would form the multiplier effects of major transformational impacts);
  • the possibility of longer term net benefits which could be delivered by projects

 

An initial assessment of the identified regional projects in terms of the above evaluation criteria is set out in Table 8.  The evaluation provided an overview of the likely order of significance of the key regional projects.  It will be noted that of the fourteen specified regional projects, three were clearly identified as being likely to deliver the highest order of economic, social and environmental benefits.  These were the:-

  • Leadership Project;
  • Mitcham-Frankston Employment Corridor;
  • Transit Cities Infrastructure Development Fund.

On this basis, these projects are essential to the long-term economic development and sustainability of the region.

Table 8 also indicated projects of high significance in terms of likely orders of economic, social or environmental contribution to the Region.  These projects were the:-

 

  • Synchrotron Awareness and Opportunities project;
  • East-West Roads projects;
  • Public Transport Service Delivery project;
  • Dandenong Creek project.

It is important to note in Table 8 that each of the specified projects is likely to deliver  a range of potential contributions to the Region in terms of economic, social and environmental benefits.  Thus, the projects indicated below will provide important benefits to the balanced development of the Region:-

  • Industrial Land Supply project;
  • Water Recycling project;
  • Regional Information System;
  • Marketing project;
  • Education Added Value project;
  • Export Clusters Facilitation project
  • CentralHarbour at Frankston.

Management of Project Development

An overview has been provided of the component steps required to be undertaken in the project inception, development and post-development phases.  Table 9 shows the various implementation phases and the range of tasks which are likely to be required by project phase.  It will be noted that the tasks which are recommended to be undertaken in Table 7 for the specified major regional projects are only initial actions and refer generally to the pre-feasibility stages of each project.

The Economic Strategy for Melbourne’s South East has been undertaken on the clear understanding that the Strategy will be required to be approved by the member Councils and organisations, which comprise the regional grouping.  In this context, there are several levels of political and management responsibility.  These are:-

  • Councils or elected boards of organisations;
  • the executive management of Councils and organisations;
  • the economic development managers;
  • assigned working groups reporting to the economic development managers.

The general management and reporting process envisaged in the initial stages of implementation is set out in Table 7 for the Mitcham-Frankston Employment Corridor project.  It will be noted that in general terms it is envisaged that:-

  • the oversight of the implementation process will be conducted through regular meetings of the Region’s economic development managers;
  • the meetings of the economic development managers will elect or assign team leaders and working groups to manage each of the regional projects which are being progressed;
  • the team leaders and working groups will then prepare a program of actions required for immediate implementation, based on the recommendations in Table 7;
  • progress reports will be made by the working groups to scheduled meetings of the Region’s economic development managers;
  • upon completion of the initial implementation phase/s, the economic development managers group will then report to the regional forum (chief executive officers);
  • the process to approve the progression to further phases in the implementation process will need to be developed taking account of the needs for periodic reviews by the member Councils.