Nillumbik Economic Development Strategy 2011-2016

Prepared by Nillumbik EDS Community Reference Group and Tim Nott economic analysis & strategyHuman Rights Charter Compatibility Statement

In accordance with the Charter of Human Rights and Responsibilities Act 2006, the Nillumbik Economic Development Strategy is assessed as being compatible with the human rights protected by the charter. This assessment is based on a Statement of Compatibility of the Human Rights protected by the Charter that are relevant to the Policy.

Executive SummaryIn 2003, Nillumbik Shire Council adopted its first Economic Development Strategy as the basis for economic development in the Shire. This revised Strategy applies to the six year period 2011 to 2016.

Council, through its Council Plan 2009-2013, is committed to sustainable economic development in the Shire as one of its four key Goals, “Our Economy”. The Council Plan has nine specific objectives relating to the areas of Economic Development, Commercial Precincts and Townships and Green Wedge Tourism and Agriculture. These objectives, together with several strategic indicators, have been addressed in the appropriate sections of this Economic Development Strategy.

To achieve sustainable development Council’s economic actions are guided by the need to complement Council’s other programs. Council’s economic development activities can make a significant contribution to key social, environmental and governance objectives.

This Strategy is designed to enhance the wellbeing of our community by encouraging the development of a vibrant and sustainable local economy that is based on our key advantages, including our magnificent environment and the high level of skills and abilities of our residents and business people.

Council acknowledges the many stakeholders (listed in the acknowledgements section) who have contributed to the development of this Strategy and thanks them for their contributions.

A Vibrant Local EconomyPerformance measures for a vibrant economy include:

Increase the number of Nillumbik residents working locally through the creation of employment opportunities and a reduction in commuting

Increase the presence of high-skill sectors that will generate income for the area

Improve local services for residents and businesses

Grow the rate of business formation

Increase the rateable value and number of commercial and industrial properties.

This Strategy is organised into five inter-linked themes:

1. Activity Centres – revitalise our commercial heart: Maximise retail spending and reduce leakage, increase jobs and improve living opportunities in Nillumbik’s activity centres.

2. Business Development – focus on success and growing the base: Assist business formation, longevity and networks.

3. Tourism – nature, culture, food and wine: Develop our attractions and improve visitor infrastructure, cross promotion and networks.

4. Arts – celebrate our creative heritage: Capitalise on the creative heritage of our Shire and position it as a continuing centre for the arts.

5. Rural / Green Wedge Economy – make the most of our green wedge environment: Create opportunities for sustainable agriculture and improved bushland management. Support “smart green” industries more generally.

Priority ActionsCouncil operates in an environment where the delivery of services to the community is largely determined by the availability of resources. To enable Council to deliver the actions outlined in its Economic Development Strategy, it must therefore set priorities that will be established each year and set out in an Annual Implementation Plan.

The Implementation Plan will identify: the timelines and resources required to implement actions; external funding opportunities; and the consultation that is necessary with stakeholders and the community.

The Major Projects and Business Services Unit of Council will be responsible for managing the Implementation Plan and undertaking many of the actions, including coordination with other Council departments, external stakeholders and the community.

Based on the actions outlined in this document, the initial priorities are:

1. Establish an Economic Development Advisory Committee and reporting process as outlined in this Strategy.

2. Continue to support business organisations in the Shire including traders associations, Nillumbik Tourism Association and the HomeBiz/SmallBiz Network.

3. Continue to support tourism and business development programs such as Farmers’ Markets, the Artists Open Studios and rebuilding businesses affected by bushfire.

4. Undertake a study to assess the feasibility of establishing a regional art gallery in the municipality, including potential opportunities to support the role of Monsalvat.

5. Assist with the development of new tourism products such as high quality eco accommodation that is integrated with tourism related offers, including the potential for a landmark eco hotel.

6. Continue to implement Major Activity Centre Structure Plan recommendations for Eltham and Diamond Creek.

7. Work with property owners, developers and business associations to encourage investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge as well as appropriate investment in smaller townships and centres.

8. Establish a Green Business Network that is consistent with the delivery of Council’s economic sustainability goals and objectives.

9. Continue to develop agribusiness networks and improve connections between rural producers, their industry groups and customers.

10.Ensure that any review of the Planning Scheme and the development of Township Strategies, considers existing impediments to sustainable economic development and appropriate tourism related activity in rural areas, and identifies land for the potential establishment of additional light industrial activities.

11.Develop a program that enables Council to provide information and support to enterprises seeking to invest in the municipality, including a strategy for promoting Nillumbik as a preferred place to do business.

12.Explore funding opportunities that are available to develop tourism, the arts, and agribusiness on a local and regional basis, including potential marketing alliances with adjoining municipalities and regional organisations.

These actions are expected to generate the largest number of jobs in the short and long term based on a strategic assessment of economic opportunities in the Shire.

1 Introduction

1.1 About this Report

This Economic Development Strategy (EDS) for Nillumbik Shire Council has been prepared to guide Council’s work on economic development over the next six years.

The Strategy provides:

A discussion on Council’s role in economic development

Identification of objectives for economic development which are compatible with Council’s overall goals

Issues and opportunities for local economic development

Actions that are necessary to deliver economic development.

An economic profile and an assessment of opportunities for economic development are provided as appendices to this Strategy.

1.2 What is Economic Development?

“Economic development” can have a variety of meanings. For firms competing in the global marketplace, it means an improvement in the factors of production and better returns on investment. For those without jobs, it means employment growth; for working families it means better opportunities to build a secure future; for many others it may simply mean an improvement in community goods and services.

In the context of a local economy such as Nillumbik, economic development means a sustainable increase in the general level of resources commanded by households, businesses and the community as a whole.

The level of available resources is determined by:

The level of income from wages, investments and benefits

The level of general prices

The distribution of resources amongst the community.

A sustainable increase in resources involves:

Encouraging local investment

Recognising the importance of “place”

Consideration of environmental issues.

1.3 Why should Council undertake Economic Development?

After all, doesn’t economic development happen as a result of investment mainly by the private sector and policy decisions of State and Commonwealth governments?

It is certainly true that Council works within a broader economic and policy context. However, Council is the only agency with a mandate to work for the Nillumbik community as a whole and to exclusively look after Nillumbik’s interests. Whilst many in Nillumbik enjoy good levels of prosperity, the local economy has a number of challenges that require attention if the area is to be sustainable and prosperous into the future.

These challenges include:

Recovery from bushfires by supporting affected businesses to re-establish and reducing risk for businesses located in the green wedge

High levels of commuting, which are financially and socially expensive for families and contributes to an outflow of retail and other spending

A rapidly ageing population in which the population aged 60 or more is growing at 5% per year compared with 0.5% for the Shire population as a whole

Rural lands that have capacity to increase economic output in the areas of tourism and agriculture.

Many of these and other challenges need to be addressed by the community as a whole and therefore by Nillumbik Shire Council.

Council does have an impact on economic development, deliberately or otherwise. For example, because of the decisions it makes on investment and development approvals. Furthermore, through its information systems, business support programs and advocacy, Council has the opportunity to positively influence outcomes through supporting local initiatives and advocacy to higher levels of Government. It is therefore appropriate for Council to ensure that its decisions are consistent and lead to desired outcomes overall.

“Sustainable economic development generates increased resources for the community as a whole that can be used to conserve and enhance the environment. Without local economic development, resources to provide community support services, conserve species and ecosystems, to manage pests and to tackle landscape degradation will be diminished.”

1.4 The Roles of Council in Economic Development

Council is the largest employer in the Shire and across its whole range of programs is a significant investor in the municipality. However, its most important roles in economic development are:

1. Leadership and strategic planning

Council has a unique capacity to bring together diverse community interests and exercise leadership for the benefit of existing and future residents. In some cases, this is a statutory responsibility, as in the development of the Council Plan, land use planning and development controls.

Strategic planning for economic development should provide clear directions for all investors in the municipality. Council should assist a reasonable level of confidence that

factors under local control will be secure for investors at the householder and enterprise level and instil confidence that these factors will improve over time.

2. Attracting and retaining investment

As the local community leader, Council is able to undertake and coordinate actions that will attract new investment and assist in the retention of investors. There is a balance to be struck between improving the existing economic activities and encouraging new activities that should be part of the strategic planning process.

Examples of ways in which Council can assist existing businesses include:

Facilitation of networks and alliances which can lead to better supply chain management, the spread of new technology and techniques, better market information and improvement in skill provision

Infrastructure improvements to reduce costs and open up new profit possibilities

Facilitating appropriate development that enables growing businesses to remain in the Shire

Advocating to other spheres of government for investment and policy change

Facilitation of business skills development (particularly for small business)

Attraction of new skilled residents through the creation of attractive places to live and recreate

Council can also have a role in attracting new enterprises through policies to encourage new investment in a number of forms:

Background information and promotion establishing the benefits of Nillumbik as a preferred location for investment

Providing “One Stop” advice and assistance to enterprises that have expressed an interest in investing in Nillumbik

Proactive sourcing of investment in strategic target areas.

3. Improving the asset base

An improving base of physical assets (infrastructure, buildings and environment):

Reduces costs for businesses (for example, by reducing travel times through road improvements)

Increases sales (by potentially increasing the number of visitors to the area)

Generates higher property values and gives many in the community the ability to leverage more resources for investment and consumption

Encourages investment, because the rate of capital growth is a criterion for most investors.

An improving base of human capital is also attractive to investors. Human capital encompasses:

The technical skills of the labour force

The entrepreneurial ability of residents and business people

The vibrancy and adaptability of social networks.

Council can facilitate many aspects of developing human capital. However an important issue for Nillumbik is that a large proportion of its existing human capital leaves the Shire each day to work elsewhere.

4. Provision of community goods

Economic development has been defined here to include an improvement in available resources for residents bearing in mind that more than half of all local residents such as retirees, welfare recipients and children are not in the workforce and may not benefit directly from job creation.

Therefore, it is important to understand that actions, which improve the asset base, may in some cases have other effects such as higher rents and prices. Although State and Commonwealth Governments are mainly responsible for welfare payments, Council does use some of the resources at its disposal to ensure access to public goods and services.

These have traditionally included free and/or subsidised services such as libraries, swimming pools, community transport, home and community care, community centre services, immunisation, community festivals and events etc. Council can also respond to particular areas of local need, and these could include support for community housing initiatives, older people’s recreation needs, arts access, mental health support and so on.

In summary, this discussion on the most important roles in economic development serves to illustrate that economic development initiatives cover the entire range of Council services and that a strategic approach to economic development will involve the whole of Council.

2 Council ObjectivesThe Economic Development Strategy is just one facet of Council’s overall program to deliver its vision for Nillumbik. Council has a range of other policies and strategies to achieve environmental, social and governance objectives. These are guided by the Council Plan 2009–2013 (Nillumbik Shire Council, 2009).

The diagram below illustrates how the four key objectives of the Council Plan interact to produce sustainable development.

Actions on the local economy need to be integrated with other Council programs to deliver sustainable development. This means that Council will invest and encourage investment by others in creating a vibrant local economy that is based on our key advantages including our magnificent environment and the high level of skills and abilities of our residents and business people.

Council’s economic development effort will therefore engage in activities that are consistent with Council’s key social, environmental and governance objectives.

Robust community discussion about proposed activities and investments will continue since the weight and interpretation we place on these objectives will vary over time.

However, our sustainable Economic Development Strategy provides a framework to guide our decision making; for reaching acceptable compromises and working towards win-win outcomes.

3 Strategic Directions

3.1 The process

In a situation of constrained resources, Council must focus its attention on the key economic issues facing the municipality. The process that has been undertaken in determining the key issues and opportunities has included:

Statistical review of the current state of the Nillumbik economy

Review of existing regional policies and programs

Meetings of a community reference group formed to provide input to the Economic Development Strategy comprising councillors and representatives of traders and other business organisations

Discussions with a variety of individual business operators in Nillumbik

Analysis of the opportunities arising from strengths, weaknesses and threats of the local economy

Discussion of key opportunities and development themes at a workshop attended by a wide cross section of stakeholders early in 2010.

In this way, a range of stakeholders have been involved in the development of this Strategy. The Economic Profile of Nillumbik is provided as Appendix 1 to this report. Appendix 2 provides the SWOT analysis.

3.2 The Strategy

A vibrant Local Economy

Performance measures for a vibrant economy include:

Increase the number of Nillumbik residents working locally through the creation of employment opportunities and a reduction in commuting

Increase the presence of high-skill sectors that will generate income for the area

Improve local services for residents and businesses

Grow the rate of business formation

Increase the rateable value and number of commercial and industrial properties.

In addressing these economic measures, Council is mindful that its actions should be compatible with and will contribute to the delivery of its environmental, social and governance objectives.

The Strategy is organised into five inter-linked themes:

1. Activity Centres – revitalise our commercial heart: Maximise retail spending and reduce leakage, increase jobs and improve living opportunities in Nillumbik’s activity centres.

2. Business Development – focus on success and growing the base: Assist business formation, longevity and networks.

3. Tourism – nature, culture, food and wine: Develop our attractions and improve visitor infrastructure, cross promotion and networks.

4. Arts – celebrate our creative heritage: Capitalise on the creative heritage of our Shire and position it as a continuing centre for the arts.

5. Rural / Green Wedge Economy – make the most of our green wedge environment: Create opportunities for sustainable agriculture and improved bushland management. Support “smart green” industries more generally.

These themes are described in more detail in the following sections. Each theme has a set of actions for Council and others involved in economic development in Nillumbik.

4 Activity Centres

4.1 Existing Situation

Activity centres are where most of the jobs in Nillumbik are located. Activity centres provide shopping, commercial and community services. They are meeting places for the Nillumbik community and often showcase the municipality to the outside world. It is likely that investment in activity centres will make the biggest impact on the local jobs deficit.

Two of Nillumbik’s centres have been designated Major Activity Centres under the metropolitan planning strategy (Department of Sustainability and Environment, 2004):

Eltham

24,800 sqm of retail space including three supermarkets and a wide range of specialty shops

12,000 sqm of office space

A primary trade area with over 23,000 residents and a main trade area (primary and secondary trade areas combined) with over 50,000 residents

Retail escape spending from the main trade area of 64% (in 2004).

[Figures from Essential Economics, 2009]

Diamond Creek

13,000 sqm of retail space including two supermarkets and a range of specialty shops

5,100 sqm of non-retail activity space

A trade area with approximately 23,000 residents

Retail escape spending from the trade area of 70% (in 2006).

[Figures from SGS, 2006 and Essential Economics, 2009]

In retail terms, Eltham and Diamond Creek provide extensive convenience shopping (groceries, pharmacy goods, newsagents, hairdressing etc.) and a limited range of shopping for comparison goods (clothes, appliances, books, jewellery, furniture etc.). Within the hierarchy of retail centres, they are community centres (or large neighbourhood centres). Importantly, both these centres are serviced by rail and have good public transport connections to the CBD.

Neighbourhood and Local Convenience Centres providing convenience retailing include:

Hurstbridge (which also has a potentially strong tourism function)

Research

Bolton Street

Apollo Parkways

A range of local centres provide top up convenience goods and services as well as some tourist functions (markets, cafes and restaurants etc.):

Christmas Hills

Kangaroo Ground

Panton Hill

Smiths Gully

St Andrews

Wattle Glen

Yarrambat.

4.2 Issues and Opportunities

4.2.1 Retail escape spending

Retail escape spending represents a loss of jobs to the local economy. The extent of escape spending is a measure of how well the local economy provides goods and services to its residents.

In most metropolitan municipalities, escape spending is of the order of 40% to 60%. The latest estimate of retail escape spending from Nillumbik is 76%; that is, 76% of all retail spending undertaken by Nillumbik residents is spent in shops located outside the Shire (Essential Economics, 2009).

Essential Economics (2009) has produced scenarios indicating that, by 2020, if retail escape spending was reduced to 65%, Nillumbik could accommodate a further 32,000 sqm of retail floor space. This kind of increase would be likely to generate of the order of 1,000 jobs (and by comparison, in 2006 Nillumbik had a net export of nearly 2,000 workers in retailing).

Presently residents are able to access large shopping centres within a relatively short distance of the municipal boundaries at Greensborough (1.5km), Plenty Valley (5.5km), the Pines (5km) and Doncaster (5km). Each of these larger centres has department stores (Myer or David Jones) and/or Discount Department Stores (DDS) such as Kmart, Target or Big W. These types of stores are big drawcards for shoppers; and their presence is a trigger for investment by a wide range of smaller chain stores.

The usual catchment threshold population for a DDS is around 50,000 people. This would make Eltham, with its catchment population of 51,000, a notional candidate for a DDS. However, Eltham has several problems as an investment location. Firstly, the competition in the wider region is very strong with Westfield at Doncaster now one of the largest shopping centres in Melbourne, with two department stores, two DDS and a very wide range of specialty stores.

Secondly, there is little physical space in Eltham to accommodate a large new store. A new DDS might be up to 8,000 sqm, with perhaps twice that area required for car parking,

landscaping and external circulation. Amassing such a site would require major redevelopment within the centre.

Thirdly, a major new retail drawcard within the existing constrained centre could create significant increases in traffic congestion.

A redevelopment of some of the existing components of the Eltham town centre could provide a welcome upgrade to the urban design of the centre. However, for the reasons given above, achieving a DDS in Eltham presents a significant challenge. Nevertheless, there are ways in which Eltham can capture more retail spending including:

Attracting investment in non-food comparison goods shops, concentrating on independent retailers for which investment is not triggered necessarily by the presence of larger stores

Broadening the range of high quality groceries through a market precinct to accommodate a wide range of greengrocers, butchers, delicatessen etc. and/or an upmarket supermarket (such as Leo’s Fine Foods)

Creating a recreational goods precinct (books, arts and crafts, outdoor equipment, cycles etc.)

Encouraging dining and entertainment functions creating a night time economy.

These actions would also require further retail space. It is important that the centre expands slightly in order to accommodate new retail development. Such expansion can be achieved whilst retaining a compact and walkable centre. Redevelopment within and on the periphery of the centre should include retail space at ground floor as part of the development mix.

A review of the role and retail mix in all the activity centres of the municipality would lead to improved planning by public and private sector stakeholders. This could be achieved through developing a strategy in conjunction with the relevant traders’ groups.

It is recognised that there is particular value in encouraging businesses owned by local residents. Local owners are likely to be more committed to the community they live in and a greater proportion of profits are likely to be reinvested locally.

4.2.2 Urban Design

The two main activity centres of the municipality provide a range of excellent shops and services. However, the design of the centres does not always promote the sense of place consistent with the “Green Wedge Shire” in their layout or building forms.

This is strongly recognised in the Eltham Structure Plan which discusses the need for the centre to be:

“A celebration of Eltham’s art, cultural and historic heritage; and a place that encourages and supports, through high quality urban design, social interaction and community life” (Hassal, 2004).

The economic importance of good urban design is clear. Good urban design in an activity centre:

Generates loyalty by catchment residents

Attracts visitors from beyond the catchment

Creates interest from investors

Is based, in part, on efficiency of movement and use of resources, which reduce costs for users and investors.

In seeking investment for these centres it is important that Council insists on high quality design and respect for heritage; to do otherwise will have poor economic outcomes. Council encourages high quality design in activity centres through its urban design guidelines. Council could also encourage high quality architectural design by considering the use of competitions for key Council sites that are capable of development.

4.2.3 Visitors

For several of the activity centres of the Shire, spending by visitors is an important component of overall sales. Tourist spending supports a higher level of service in local centres than could be supported by the expenditure of residents alone, particularly services such as cafes and restaurants.

Hurstbridge is nominated by many as an attractive centre which could benefit from further tourism development (and this has previously been recognised by Council in the Hurstbridge Township Strategy, Nillumbik Shire Council, 2002). Tourism development in centres tends to be an incremental process.

Further development in Hurstbridge could begin through improved coordination of opening hours at weekends and when events are taking place in the wider area (the monthly farmers market and the market at St Andrews, for example).

Tourism in other activity centres can be hampered to some extent by the land use zoning. In particular, land use zoning in some small townships does not allow otherwise appropriate investment to service residents or visitors. Council will work with local communities to prepare township strategies. The issues under investigation will be the demand for township zones in the smaller townships of the municipality to indicate where commercial development and service provision might occur.

4.2.4 Entertainment

The Shires’ activity centres have a range of cafes, restaurants, bars and hotels as well as indoor sporting facilities, libraries and galleries. There are opportunities to extend the provision of entertainment in our centres, developing the evening economy and broadening the appeal of centres, particularly for younger people.

Council can investigate the following:

Provision of a commercial cinema at Eltham (a 2 to 5 screen complex may be viable here)

Encouragement of regular part-time cinema in community buildings throughout the municipality

Encouragement of live music venues

Encouragement of appropriate regular street entertainment i.e. street busking etc.

4.2.5 Housing

Provision of more housing in and around Major Activity Centres is State Government Policy. There are also benefits to the Nillumbik economy.

Several local employers have suggested that attracting young workers is becoming more and more difficult because:

Housing is becoming more and more expensive in the Shire

Young workers tend to favour proximity to entertainment, nightlife and other services.

These workers may well find that an apartment in Eltham or Diamond Creek can provide inexpensive housing close to services.

The structure plans for Eltham and Diamond Creek centres already identify areas where medium and higher density housing is to be encouraged. Potential activity centre developers can be reminded that housing is a preferred use. In addition, the viability of multi-storey housing development should be tested by research from time to time since this is an evolving market where the lack of previous experience in outer suburban areas generates some uncertainty that may otherwise deter potential investors.

4.2.6 Office Development

Offices are a key component of activity centres, often providing the majority of the jobs. Given the white-collar labour force in Nillumbik, the provision of more offices locally will be an important factor in reducing the need to commute outside the Shire. The fundamentals are in place for growth in the provision of more offices, particularly small scale offices in Eltham and Diamond Creek:

Major Activity Centre location

Rail and bus connections

Substantial white-collar labour force with a high proportion of managers and professionals (which is the group most likely to start a small office-based enterprise)

Large home based business sector, a proportion of which may wish to expand into commercial premises

Low vacancy rate of existing office stock and no vacant shop fronts. The recognised demand for offices is mainly from small firms and a certain amount of speculation about total demand may therefore be required on the part of potential developers. The provision of multi-unit offices is more risky than development for a single tenant.

Council can work with real estate agents and the property development industry to encourage the provision of multi-unit offices in the key activity centres.

If investment in additional office provision proves difficult to attract, Council could investigate the potential of assuming some development risk either through direct development or in partnership with others, acknowledging that this not normally part of Council’s core business and would therefore require a strong ratepayer endorsement.

The feasibility of attracting larger office developments, with an alignment to employing local residents should also be investigated.

4.2.7 Industry

The activity centres are also the location for the majority of industrial land in the Shire. In general, industrial land accommodates light industry, service businesses and, increasingly, retail development.

The location of industrial land in or beside activity centres has meant that genuine industrial activity has tended to be priced out by the more dynamic retail sector. There is now no vacant industrial land remaining in the Shire, and no space for further services such as automotive repairs, joinery, storage or transport.

These types of activities are important for residents and other businesses. Without appropriately zoned land, Council may find that, increasingly, light industrial activities will be forced into residential properties.

Full scale industrial activities, other than processing activities on rural land that are allowed by the planning scheme, will not be encouraged. However, Council should continue to seek suitable sites for small scale light industrial or service businesses since these add to the quality of life for local residents and their lack generates longer car journeys. Suitable sites are likely to be:

Close to main roads (although not necessarily on main roads)

On the fringe of towns, sufficiently removed from housing to reduce amenity issues

Sufficiently large to accommodate several businesses (that is, Council will not encourage ad hoc zonings for particular businesses).

Generally, suitable sites will be found within the Urban Growth Boundary (UGB). However, in conjunction with the preparation of Township Strategies and reviews of the Nillumbik Planning Scheme, consideration will be given to providing opportunities for service businesses that meet local community needs in the Shire.

4.2.8 Activity Centre Strategy

The activity centres of the Shire form a network which is interdependent; growth or decline in one centre may well affect the prospects of other centres.

Council will prepare an overall development strategy for its activity centres network that identifies the role, the growth prospects and the vision for each centre. The work should

provide more than a retail strategy (although retailing is a key driver of development) but should look at all aspects of the service offering of centres.

The activity centres strategy should draw heavily on the existing structure plans for individual centres and on the work of the traders groups in each centre.

A component of the Activity Centres Strategy should examine the transport network serving centres. Public transport services in particular can be improved to enable better connections between outlying towns and villages with the larger centres of the Shire.

A useful input to the strategy would be a survey of centre users, including the profile and origin of visitors to the Shire

4.2.9 Support for Traders’ Groups

Traders’ organisations are present in each of the larger centres: Eltham, Diamond Creek and Hurstbridge. These organisations will be at the heart of improvement strategies for activity centres. Traders’ organisations can carry out a wide range of activities including:

Promotion and marketing of centres

Event organisation

Trader and staff training (customer service, merchandise display, stock control, personnel management, internet sales strategies, etc.) including provision of apprenticeships

Business awards

Representing traders to Council and to other spheres of government

Urban design and streetscape improvements.

Traders groups in Nillumbik do, or have done, many of these activities over the years. All of these activities can have economic benefits for the wider community beyond the individual traders involved. The scope of action depends on the resources available and the management capacity of the group.

Council will continue to provide assistance to traders groups where this assistance has wider economic benefits. This assistance will include continued administration and management of special rates schemes.

Whilst the mixed use centres in Nillumbik have many advantages, they do also have disadvantages compared with single operator centres where management is able to control the retail mix, positioning of retailers, and promotion of the centre as a whole.

A centre manager in strip shopping centres can overcome some of these disadvantages by working to an agreed business plan. Such a centre manager can create better coordination of promotion and training and has the time to work with individual traders on business planning and development issues. Council can work with traders groups on funding for centre management.

4.3 Activity Centres Action Program

The following action plan on activity centres is designed to facilitate the expansion and enhancement of the commercial economic base and local employment opportunities:

Substantially increase the number and breadth of jobs and services in Nillumbik’s activity centres

Improve the long term viability of centres and apply a strategic approach to their development

Support the traders groups to take a more active role in centre management and development.

Other themes also have actions relevant to activity centre development.

Actions

Work with property owners, developers and business associations to encourage investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge as well as appropriate investment in smaller townships and centres.

Consider instituting an architecture and design competition to encourage good urban design in activity centres.

Continue to implement Major Activity Centre Structure Plan recommendations for Eltham and Diamond Creek.

Ensure that any review of the Planning Scheme and the development of Township Strategies, considers existing impediments to sustainable economic development and appropriate tourism related activity in rural areas, and identifies land for the potential establishment of additional light industrial activities.

Develop township strategies for small towns and investigate the demand for development in small town centres.

Investigate the feasibility of providing a cinema within the Eltham activity centre.

Encourage live music in activity centres.

Provide ongoing feasibility assessment of small offices and multi-unit housing in Eltham and Diamond Creek.

Undertake an audit of the supply and demand for industrial land and continue to seek land that can be zoned for small scale light industrial activities.

Undertake an activity centre strategy.

Lobby for improved public transport connections between rural towns and villages and the larger centres of the Shire.

Continue special rate (and other funding) for centre management, business planning and development.

5 Business Development

5.1 Existing Situation

There are around 6,000 businesses in the Shire according to the Australian Bureau of Statistics (ABS, 2008). The industries with the largest number of businesses are:

Property and business services – 1,600 or 27% of the total

Construction – 1,570 or 26%

Retail trade – 530 or 9%

This industry structure reflects the high proportion of professionals and trades people with their own small business.

Approximately 90% of businesses in the Shire, or 5,400, have fewer than five employees. Judging by figures from the State as a whole, 60% or more of all businesses in Nillumbik are operated from home.

The Shire has a number of business organisations, including: traders’ associations in Eltham, Diamond Creek, Hurstbridge and Research; Nillumbik Tourism Association; and the HomeBiz network, which represents and encourages home based businesses.

5.2 Issues and Opportunities

5.2.1 Infrastructure to Work from Home

Home based business is very strong throughout the Shire. It is particularly important in rural townships (for example, recovery efforts following the bushfire disaster in 2009 found that up to 70% of homes in Strathewen accommodated a business). However, in some rural areas, mobile phone coverage and broadband connections are poor or lacking altogether.

This has an adverse impact on the efficiency and profitability of enterprises and may be preventing the formation of certain types of home based businesses in some rural areas.

Improvement in technology, and in particular broadband services, will increase opportunities for local businesses to develop in the Shire. This can increase local economic activity and reduce commuting. Council will monitor opportunities to support this trend, including advocating as part of its regional alliances for improved broadband services.

Council will continue to advocate for improved telecommunications services throughout the Shire and particularly in rural areas.

5.2.2 Bushfire Recovery

Following the bushfire disaster in 2009, Council, in conjunction with the Bushfire Recovery and Reconstruction Authority, has provided assistance in the form of mentoring and strategic planning support for many small business operators in affected areas. Ongoing

assistance will be required by local communities to rebuild commercial infrastructure and economic resilience. Council will continue to work with local communities providing access to training, assistance and networking.

5.2.3 Green Business

There is a strong interest in Nillumbik in undertaking business that has a clear environmental benefit. Any business can be operated with an eye to sustainability as a key consideration but here “green business” is taken to mean business which is directly related to the management of energy, resources or ecosystems.

Such businesses include:

Design and installation of renewable energy systems

Design and installation of water saving technologies

Environmental audits and energy and water consulting services

Building and urban design and landscape architecture

Ecosystem research

Sustainable farming systems.

These types of business have a strong presence in Nillumbik and are a match for the occupational structure of the Shire, which has a high proportion of both trades people and professionals.

At present, much of the green business sector is reliant on markets created by legislation and government subsidies. Decisive market advantages will accrue to firms that are able to introduce systems that capture economies of scale, that work with or without subsidies, that are able to introduce new systems that better meet (or define) customer needs, and which are able to be flexible in responding to demand.

These kinds of advantages may be generated by a cluster of businesses that collaborate and compete in overlapping markets. Development of business clusters has emerged as a significant tool of economic developers over the past decade or so. Locations with successful business clusters in growing industries are likely to have strong growth in high skill jobs.

There are several ways in which Council can assist in the formation of a green business cluster in Nillumbik. At an elementary level, Council can identify locally based green businesses and put them in touch with one another through an electronic newsletter. Formation of a green business network is a next step and would allow local small firms to act as a larger virtual entity, collaborating on developing and promoting their services. Edendale Farm, Council’s environment resource centre, could form a hub for green businesses.

If demand warrants, a green business incubator or accelerator could be developed as a means of concentrating green business expertise in a single location. This concentration can create the type of heightened collaboration/competition that leads to innovation and

which generates economies of scale for service providers (including provision of training). These factors lead to industry development and more jobs.

5.2.4 Promoting Home Based Business

Home based businesses are an important source of local jobs. The relatively skilled nature of the labour force in Nillumbik combined with the expansive housing stock make home based business an option for many workers.

However, there are difficulties in operating from home, including for some operators:

Social isolation

Lack of access to peer review

Inability to maintain professional development

Lack of business management skills

Difficulties in marketing and market access.

Council has funded the establishment of the Nillumbik HomeBiz Network to help operators overcome these problems. More can be done to promote the network and the idea of working from home in Nillumbik.

For example, Council can promote success stories about local home based businesses in Council newsletters and on the Council information page in the local newspapers. Council can also provide links from its webpage to local business organisations (and thereby, to individual businesses).

Council can promote the Shire as a location for home-based businesses to target groups outside the municipality. As well as the magnificent environment, these groups will be attracted by excellent amenities, education and health services. Council will work with relevant agencies to promote and improve services in activity centres (see previous section) as well as education and community health services.

5.2.5 Lifelong Learning

There are clear economic advantages for places that have a culture of lifelong learning. Business operators develop and capitalise on new techniques earlier than their competitors; workers are able to learn and be rewarded for developing new skills; and communities are able to develop quicker responses to challenges or opportunities.

Council will work with existing and potential education providers to encourage lifelong learning practices. These will include expansion of business related courses at Council’s Living and Learning Centres and investigation of the provision of IT learning infrastructure in locations that are accessible to young people.

Council will support the development of new educational infrastructure, particularly further and higher education. Also, Council will bring together education providers to understand how the local education sector can be expanded to generate new economic opportunities.

5.2.6 Integrated Approach to Planning and Major Projects

An integrated approach to planning and major projects within the Shire will improve the benefits captured for the community. Council will develop appropriate working teams combining staff members with relevant expertise to assist the coordination deliver major projects.

5.2.7 Business Attraction and Retention

A key role for any local government economic development unit is working with new or existing businesses that may be considering investing in the municipality. Such businesses may require assistance with:

Site selection

Development approvals

Other Council or Government regulations

Business planning or mentoring

Market development and contacts with suppliers.

The Business Development and Tourism Unit at Council should respond to these types of enquiry, at least as a first port of call, knowing where to source appropriate assistance as required. At least some of these information and contact services can be provided through a web based business portal.

In addition to responding to business enquiries, there is a role for Council to seek out appropriate business investment, marketing the municipality to businesses that can take advantage of the attributes of the Shire as well as marketing to enterprises that might fill a gap in the local business mix. This may be assisted through development of a business opportunities register available on the web.

Council will need to develop appropriate publicity material to assist with the promotional effort.

5.2.8 Business Organisation

There are a range of organisations representing business in the Shire. Whilst these each have their own interests and constituencies, there are times when a single voice or point of contact could be useful:

Responding to Council or other spheres of Government on common issues

Disseminating business information

Coordinating Shire wide networking opportunities

Publicising and running business awards and business breakfasts

Creating a viable market for business development training

Common purchase programs.

Council will facilitate a business summit involving the various organisations to discuss these and other issues of common interest.

5.3 Business Development Action Program

The following action program recognises that small business is, and will remain, the principal generator of jobs in the municipality.

The action plan is designed to:

Support and improve the capacity of business to operate and be successful in the Shire

Encourage the formation of a green business cluster

Attract appropriate business investment

Strengthen the collective organisations of business.

Actions

Promote the concept of ‘intelligent communities’ including advocacy for improved broadband capacity (including National) and mobile phone coverage in the Shire through representations at regional and State level.

Continue to support tourism and business development programs such as Farmers’ Markets, Artists Open Studios and rebuilding businesses affected by bushfire.

Establish a Green Business network that is consistent with the delivery of Council’s economic sustainability goals and objectives.

Undertake feasibility assessment of green business accelerator.

Continue to support business organisations in the Shire, including traders associations, Nillumbik Tourism Association and the HomeBiz / SmallBiz Network.

Develop a program that enables Council to provide information and support to enterprises seeking to invest in the municipality, including a strategy for promoting Nillumbik as a preferred place to do business.

Continue to encourage home based businesses to establish in Nillumbik by promoting such businesses in Council newsletters and local newspapers (including businesses in the Green Wedge).

Attract home based businesses from outside the municipality, promoting the environment and the commercial, education and health services of the Shire.

Promote lifelong learning throughout Nillumbik.

Convene a forum of education providers in Nillumbik to foster growth in the local education sector.

Develop integrated approach to planning and major projects.

Assist new and existing businesses to invest in the municipality.

Promote the municipality to appropriate investors.

Establish a business portal to provide timely information on business issues, including contacts and business opportunities.

Encourage development of a single voice for business in Nillumbik.

Fund business development and tourism contract position within Council as additional resource.

6 Tourism

6.1 Existing Situation

Nillumbik’s Green Wedge is part of the rural playground for Melburnians and their visitors. The bushland and pastoral backdrop provides the setting for a variety of activities including:

Weekend markets, events and festivals

Wineries

Diamond Valley Railway

Edendale Farm

Local farm products

Arts and crafts galleries and studios

The Artists Trail along the Yarra Valley

Accommodation (approximately 17 establishments with a total of 84 rooms)

Cafes, restaurants country pubs and function centres

Plant nurseries

Health and relaxation enterprises

Shared trails including Diamond Creek trail and Ring Road trail that connect with CBD

Closest country towns to the city

Popular routes for road and mountain bike cyclists.

These attractions are spread throughout the municipality.

Tourism is an important industry for the local economy because the expenditure of visitors supports services used by residents that would not otherwise be viable. Services supported by visitors include a wider range of restaurants and shops as well as food, art and craft producers.

According to Tourism Research Australia (TRA, 2008), Nillumbik has approximately 171,000 visitors per year; with an average spend of $53 per visit.

This compares with an average of $91 per visit in Victoria as a whole, and is lower largely because there is limited accommodation capacity for visitors who stay overnight in Nillumbik compared with the State as a whole.

The tourism industry body for the area is the Nillumbik Tourism Association (NTA), which is made up of industry members and Council representatives. The vision and mission of the NTA is reproduced below. The NTA is a voluntary organisation that finances its administration and promotional activities from the contributions of members and sponsors.

Council, which is a member and sponsor of NTA, spends around $100,000 per year on tourism marketing, promotion and membership of regional tourism bodies.

Nillumbik Tourism Association

Vision

To build and nurture a sustainable tourism industry which coexists and complements Nillumbik’s unique natural environment and draws upon the culture of the region.

Mission

The members of the Nillumbik Tourism Association in partnership with the Nillumbik Shire Council will strive to develop the local tourism industry by leading and advocating for the local tourism industry, supporting membership through communication and professional development and providing cooperative marketing opportunities to maximise the benefits of visitation to the area including initiatives consistent with “... where Melbourne meets the Yarra Valley” brand.

The NTA has a strategic business plan (Nillumbik Tourism Association, 2008) in which the key themes are to engage operators, the Nillumbik community and target markets; to establish a separate identity for Nillumbik as a tourism destination; and to improve the viability and management capacity of operators.

Nillumbik has also been part of regional tourism marketing and infrastructure development organisations such as Yarra Ranges Regional Marketing and Melbourne’s Valley of the Arts. Council’s contribution to these regional organisations has been suspended pending a review of local tourism directions and the way in which the tourism industry in the Shire can extract the best value from its regional connections.

6.2 Issues and Opportunities

6.2.1 Accommodation

The extent of accommodation in the Shire is limited. There are two motels in Eltham and approximately 15 bed and breakfast establishments in Eltham, Research and the rural parts of the municipality. Other types of accommodation are not present in the municipality such as backpackers, camping, upmarket hotels, larger conference facilities etc.

In similar settings elsewhere hotels provide conference and convention facilities, resort style recreational opportunities, health retreats, ecotourism opportunities and so on. Nillumbik is potentially able to cater to the Melbourne market for conferences, retreats and bushland activities.

A new, higher standard of accommodation, such as, for example, a medium sized eco hotel in the green wedge, catering to this market would generate substantial employment opportunities, probably of the order of one job per room (or more for a boutique luxury hotel).

The presence of such a facility could also support a range of external activities and service providers such as cultural and indigenous tours, day spa facilities, outdoor pursuits providers and help to underpin, by example, increasing awareness in our environment and sustainable development.

Such an environmental focus would also generate tourism publicity for the municipality and its other attractions.

Notwithstanding the limitations of the current Planning Scheme, to be acceptable within the green wedge, any such accommodation would need to be designed with environmental sustainability at its heart, low rise and built of local or recycled materials. It would respect and protect the environment of its setting; it would use innovative active and passive energy generation and water harvesting and reuse technologies; it would provide design inspiration to other buildings in the region.

Outside the green wedge, there may be scope for more urban style boutique hotels in Eltham, Diamond Creek or Hurstbridge. Nevertheless, even in these locations, building design should reflect the green wedge ethos.

Smaller, more low key accommodation can also be encouraged, particularly where such accommodation is provided in association with rural activities such as wineries or similar outlets.

Council’s roles in supporting this type of accommodation would need to be clearly defined, and could involve, for example, a role in promoting the establishment of the concept within Nillumbik to suitable landholders and hotel operators; to assist the proponent to create an acceptable design; and to ensure rapid and consistent responses at the approvals stage. This may involve consideration of appropriate changes to land use zoning to allow the appropriate type of development to occur.

6.2.2 Meet the Maker Tourism

The Shire has a growing range of art, craft and food products that are made locally. The stories behind these products – the method of manufacture, the people who made them and the environment in which they were made – can be as interesting and attractive to visitors as the products themselves. Tying these producers into a more formal network or trail would provide a varied visitor experience that can be promoted through personal and paper tour guides and on the web (in the same way as, for example, the Yarra Valley wineries).

6.2.3 Trails Development

Council has a commitment to work to extend recreational trails through the municipality in conjunction with other landholders such as Parks Victoria. Existing, extended and new trails through the municipality could be promoted as one of the key outdoor experiences of Melbourne. Such a development could generate business for accommodation providers, tour guides, bike and canoe hire, and so on.

In order to encourage visitation and use of trails, the network should be planned from the outset with service nodes in mind. Where possible, these should be existing activity centres; however, it may be necessary to establish new service nodes (camp sites, toilets, cafes, equipment hire etc.) to fill any gaps in provision.

6.2.4 Tourism Education

Post school education in tourism and hospitality can develop a ready-made labour force for the local tourism industry as well as extending the skills of existing workers. Some post school hospitality education is already provided in the Shire through Eltham College.

This can be extended, with the potential at the College to provide technical education in a cluster of associated industries such as winemaking and permaculture, as well as hospitality. Skills development for existing hospitality business operators and their staff is a priority for the NTA and for trader’s organisations. There is potential to coordinate the provision of such training throughout Nillumbik.

In the longer term, there may be scope to develop a specialist university campus providing advanced courses in local specialties such as hospitality management, winemaking, permaculture, landscape design and bushland management.

6.2.5 Coordination and Cross Promotion

The unique tourism offer in Nillumbik is the combination of nature, culture and art, food and wine. This can be a winning combination provided that the elements form part of a single package and that there is sufficient coordination of activity and cross promotion between operators.

This requires the development of networks (as outlined previously) and packaging of product (such as the Meet the Maker tours described above). It also requires that the local industry works together to offer visitors a seamless experience. Coordination of weekend opening hours in activity centres is an example of how the local industry can improve its cross promotion and improve the visitor experience.

The Shire does not presently have an accredited Visitor Information Centre (VIC), although visitor information is provided through a number of venues in most Shire towns. An accredited VIC is not presently a high priority but may become so as the local industry develops and as more and more people visit the Shire (particularly people visiting from interstate and overseas).

6.2.6 Regional Tourism Alliances and Markets

There is no doubt that Nillumbik has commonalities with neighbouring municipalities and is part of a wider region within Melbourne. The Shire has contributed to organisations such as Yarra Ranges Regional Marketing and Melbourne’s Valley of the Arts and will continue to work with its neighbours.

The Shire can focus its contribution in areas which are of direct relevance – promoting the strengths of Nillumbik in arts, food and bush recreation; and in developing region wide tourism infrastructure such as a linked trails network.

More populous nearby municipalities will also continue to form a large part of the market for attractions in Nillumbik.

In particular, the northern metropolitan growth areas of Whittlesea and Hume have a rapidly expanding population. Early marketing to the growth areas will ensure that Nillumbik destinations form part of the suite of leisure activities that are considered by new residents. Within this wider region, Nillumbik can differentiate its offering as providing higher value experiences in food, culture and the environment.

6.2.7 Nillumbik Tourism Association

Actions on tourism, including product development and promotion, form a substantial component of this Strategy for economic development in the Shire. The NTA presently relies on administrative support funded by Council (20 hours per week) and on hard working volunteers who may or may not be available in the future.

The organisation will be a major partner with Council in implementing key parts of its Economic Development Strategy.

Council will continue to work with the NTA to examine the potential for re-organising its current partnership through a service agreement in the short term, which outlines the basis for developing a sustainable tourism strategic plan, including the feasibility of providing officer support to work with the NTA and its members.

Such a strategic plan should form the basis for a longer term Memorandum of Understanding between Council and the NTA to enable the NTA to focus on strategic issues, developing their networks and other business development issues.

6.3 Tourism Action Program

This action plan on tourism is designed to:

Focus on the Shire’s tourism strengths in the combination of nature, culture, food and wine

Advocate for the removal of impediments to sustainable investment in tourism

Assist the local tourism industry to cooperate more effectively.

Actions

Assist with the development of new tourism products such as high quality eco accommodation that is integrated with other tourism related offers, including the potential of a landmark eco hotel.

Advocate for appropriate sustainable accommodation in the green wedge to be allowed by the planning scheme.

Develop Meet the Maker tours.

Explore funding opportunities that are available to develop the tourism, arts, and agribusiness offer on a local and regional basis, including potential marketing alliances with adjoining municipalities.

Consider marketing the high quality nature, culture, food and wine brand to the northern metropolitan growth areas as a new market.

Promote the concept and achievement of trails and associated service nodes throughout the municipality.

Improve coordination of weekend opening hours to ensure that visitors are well served.

Investigate the potential for expanded development of training in hospitality and associated industries with local training providers and traders organisations.

Continue to fund NTA and regional tourism promotion efforts where these have a direct benefit to Nillumbik.

Assist the NTA to develop a sustainable tourism strategic plan for the Shire (including the Green Wedge).

Expand tourism opportunities compatible with the Green Wedge, in Green Wedge townships and in identified Green Wedge locations.

7 Arts

7.1 Existing Situation

Nillumbik has a long creative heritage through its various artists’ colonies and its distinctive mud-brick architecture. Since the time of Heidelberg school artist Walter Withers in the early 20th Century, many well known artists have taken inspiration from the local environment. The current offering of arts and crafts infrastructure includes:

Private and municipal gallery spaces

Craft markets

Artists’ studios open to the public

Artists’ residency programs at Montsalvat (Eltham), Dunmoochin (Cottles Bridge) and at Laughing Waters (sponsored by Council and Parks Victoria)

Sculpture in public places (including Alistair Knox Park in Eltham)

Council art collection, parts of which are on display at Council venues

Nillumbik Art Prize sponsored by Council

Privately operated tours such as the mud-brick architecture tour

Music festivals such as the Eltham Jazz Festival.

Of particular note, Montsalvat in Eltham was constructed as an artists’ colony during the depression of the 1930s. This heritage listed complex of buildings and gardens continues to operate as an artists’ retreat as well as hosting small scale exhibitions and operating as a function centre. Montsalvat remains a well loved part of our cultural heritage and is supported by State Government and Council.

Council also supports the Artists Open Studios program in which, currently, 24 artists open their home studios to the public on several weekends per year.

7.2 Issues and Opportunities

Arts and artists are intrinsically valuable. They are also an important asset of the local economy. A creative environment attracts highly skilled residents; arts on show attract visitors, with spin-offs for other service providers; and an atmosphere of artistic innovation can lead to innovation in other activities, including in business.

Council has a strong commitment to the arts which is managed by its Arts Unit. This assessment of issues and opportunities concentrates on the economic development aspects of local arts development.

A number of local people have made the observation that there is no serious permanent showcase or gallery for the work of local artists. This is a missing link in an area which has a reputation outside the municipality as a place of arts and culture.

Montsalvat has several galleries which are used on an ad hoc basis but these lack security and climate control.

The board of Montsalvat has a plan to redevelop its main gallery as a substantial exhibition space and to open its other galleries on a full time basis. Together, these could provide a major regional art gallery that could house a revolving exhibition of permanent works, exhibitions by local artists and travelling exhibitions by national or international artists. The spaces and accompanying staff could also play a strong role in leading community arts and encouraging student artists.

The board of Montsalvat has produced a preliminary funding proposal to improve the gallery spaces. More detail is now required to understand how the gallery would manage the new space, how visitors would be looked after and what the benefits and costs of the development would be.

In addition to supporting the facilities at Montsalvat, Council will continue to examine other opportunities and contribute to the Artists Open Studios scheme. There is potential to link this with exhibitions at Montsalvat, including showing of works by younger artists.

For the most part, the visible artists in the municipality are long established. New spaces and encouragement for young artists may well be required to generate the ferment of ideas and innovation that are important for economic as well as artistic endeavours.

Council will investigate the creation of spaces for innovative arts practice, particularly in the main town centres of the Shire. This could involve use of vacant shop units or temporary spaces.

7.3 Arts Action Program

This action plan is designed to integrate the arts more effectively into the local economy.

Actions

Undertake a study to assess the feasibility of establishing a regional art gallery in the municipality, including potential opportunities to support the role of Monsalvat.

Continue to support Artists Open Studios scheme and mud-brick architecture tours.

Encourage use of existing and new town centre spaces for display of art works and performances by new artists.

8 The Rural / Green Wedge Economy

8.1 Existing Policy

Nillumbik describes itself as the “Green Wedge Shire”. Green wedges, “safeguard agricultural uses and preserve rural and scenic landscapes, non-renewable resources and natural areas including water catchments. They also play an important part in Melbourne’s open space network and provide opportunities for tourism and recreation.” (Department of Sustainability and Environment, 2004)

The land in the Green Wedge is often a mix of intensively settled rural lifestyle areas, intensive farming, recreational zones and state forest and parks. In Nillumbik, 90% of the Shire is designated as Green Wedge. This area accommodates around 29% of the Shire’s population, largely in small towns such as Hurstbridge, Panton Hill, St Andrews, Yarrambat, Arthurs Creek and Kangaroo Ground. However, even the suburban parts of the municipality have a bushland setting or rural backdrop, and this forms a large part of the attraction of the area for new and existing residents.

Council has recently developed a Green Wedge Management Plan (Nillumbik Shire Council, October 2009). This Plan contains a number of relevant objectives for economic development in the rural areas of the Shire.

Economic Goals and Strategies of the Green Wedge Management Plan

1. Improve the economic viability of the Nillumbik Green Wedge and its townships and settlements: Hurstbridge, Panton Hill, St Andrews, Yarrambat, Arthurs Creek and Kangaroo Ground.

2. Expand tourism opportunities compatible with the Green Wedge, in Green Wedge townships and in identified Green Wedge locations.

3. Ensure that agriculture remains technically viable in the Green Wedge.

E.1 Achieve economic development in townships of St Andrews, Hurstbridge and Panton Hill and in the Green Wedge where appropriate.

E.2 Prioritise expansion in the following identified business sectors: Home based business and services to business in the Green Wedge.

E.3 Support the delivery of a sustainable tourism strategy for the Green Wedge.

E.4 Provide certainty with regard to what types of tourism business can be established in the Green Wedge and where.

E.5 Provide for land uses which encourage expanded, compatible, tourism activity in the Green Wedge and its townships.

E.6 Retain existing agricultural land for soil based agricultural production.

E.7 Encourage the pursuit of a variety of agricultural activities in the Green Wedge – from modest sized commercial enterprises to smaller/boutique agricultural businesses and farms.

The actions nominated by the Economic Development Strategy are aligned with the actions in the Green Wedge Management Plan.

8.2 Key Issues and Opportunities

8.2.1 Sustainable Agriculture

The principal agriculture products of the Shire are beef cattle, sheep, grapes and orchard fruit, although there are also a wide range of minor farm products including pigs, goats, buffalo products, alpacas, horses and mushrooms.

Large parts of the rural areas of the municipality are in the public reserve system (Kinglake National Park, reserves along the Yarra and Plenty Rivers, Sugarloaf reservoir catchment area etc.) or are in areas of rural residential development where the subdivision pattern is generally too small to support fully commercial farming.

The area of the municipality that is utilised for farming and agriculture amounts to only 16% of the land area of the Shire (ABS, 2010).

Nevertheless there remain some substantial commercial farming enterprises and agriculture is an important economic activity. The main advantage of Nillumbik as a farming location is its proximity to Melbourne markets.

Research for the Green Wedge Management Plan (Essential Economics, 2008) indicates that there are approximately 200 agricultural enterprises in Nillumbik which support around 150 jobs. The largest of these businesses produce from orchards and vineyards, although there are also a number of significant beef producers.

The orchard businesses in particular are important employers in the rural areas of the Shire. Many other commercial farm businesses have disappeared over the years as the price of land in the Green Wedge has made all but the most capital-intensive operations uneconomic to establish.

Some orchard businesses (and vineyards) are seeking to expand, especially where there is an established value-adding opportunity such as fruit storage and packing or winemaking.

A key issue raised by these businesses is the need to maintain the consistency of the current land-use regime as the means of preventing further subdivision of farmland that would make the land more expensive. Where these businesses are seeking to invest in further processing and create local jobs, Council can work with the proponents to ensure that, where possible, Nillumbik meets their locational requirements.

Most farm businesses that are left provide only partial incomes for the families operating them. In many cases, this is a lifestyle choice; people have chosen to undertake small-

scale farming as part of a range of income producing activities that might include professional duties, trades, retailing, tourism, art production or investment.

Small-scale farmers provide an important environmental service in managing the land (removing weeds and pests, maintaining fences and other infrastructure, etc.) and add to the stock of locally produced food, reducing “food-miles”.

In some cases, the small farm production can form the basis of further value adding such as grapes-wine-cellar door retailing-tourism, or fruit preserves-local markets-tourism, for example. At the least, small-scale farmers play an important role in maintaining the landscape of the Shire for all to enjoy.

Improving the farm incomes of this group of people would create social and environmental benefits. Higher agribusiness returns would encourage greater commitment to the land and to rural communities in the Shire.

In particular, small producers can benefit from the economies of scale created by networks.

Networks include distribution channels such as the farmers’ markets, or associations and events formed to promote the produce of the area. They can also include closer connections between producers and consumers through direct purchasing agreements between groups of households and farmers.

Similar schemes currently run in Queensland which aims to reduce food miles and supply fresher food as well as improve certainty for farmers. Sustainable community agriculture describes a variety of models whereby producers supply local consumers with a share of the crop under a subscription arrangement, similar to operations that are already established in Australia, including the Yarra Valley and the United States.

The Council Plan 2009-2013 Objective 2.1.14 states that Council will “encourage sustainable and community supported agriculture.”

Council can continue to support and strengthen these existing networks. It can also assist the development of new networks where these have local champions including, for example, support for networks of organic food producers delivering directly to local consumers.

8.2.2 Bushland Fringe Management

The bushfire disaster of early 2009 has brought home to us that our Green Wedge lifestyle carries risks. Much work on replacing community assets and rebuilding community resilience have been done by the Bushfire Recovery and Reconstruction Authority and the affected communities as well as by the Shire.

Long-term strategies are required to reduce the risks of bushfire and other issues affecting the bushland fringe, including pest management and landuse change. These strategies require ongoing research, including:

Planning for sustainable settlements

Fire-resistant and environmentally sustainable buildings

Technologies for fire fighting

Weed and feral animal control

Bushland management

Community education.

Council will investigate whether these research and education strands can be woven together to be delivered from a single facility (or network of facilities) located in the Shire. This will involve collaboration with education and research institutions.

8.3 Green Wedge Action Program

This action plan is designed to:

Protect the viability of commercial farming businesses

Assist part-time farmers to improve their viability through development of networks

Capitalise on Nillumbik’s urban fringe location.

Assist in the implementation of economic strategies related to the Green Wedge.

Actions

Implement the economic development actions of the Green Wedge Management Plan when adopted.

Ensure that subdivision does not further reduce the viability of commercial farming enterprises in the Shire by the supporting ongoing viability of agriculture in the Green Wedge.

Work with agribusiness investors to ensure that jobs in value-adding can be located in the Shire.

Continue to support the development of agribusiness networks that improve connections between rural producers, their industry groups and customers.

Encourage the pursuit of a wider variety of agricultural activities in the Green Wedge.

Investigate the development of a bush fringe research centre.

9 Priorities and Monitoring

9.1 Organisation to Monitor Economic Development

Council will develop Terms of Reference for the appointment of an Economic Development Advisory Committee comprising Councillors and representatives of the small business network, traders’ groups, the Nillumbik Tourism Association, farmers’ groups and other community members as appropriate. The role of the Committee will be to recommend priorities to Council, monitor implementation of the Strategy, to recommend policy adjustments as required and, from time to time, to set offer new directions.

9.2 Reporting

Following adoption of this Strategy, Council will prepare an Annual Implementation Plan in consultation with the Economic Development Advisory Committee. This will set economic development priorities for the year ahead within the framework set by Council’s budget and the Economic Development Strategy.

This economic development function of Council will have the following reporting requirements:

Quarterly reports to the Economic Development Advisory Committee on progress towards the Annual Implementation Plan

Annual reports to Council on the Implementation Plan and progress on the overall Economic Development Strategy, including any adjustments that may need to be made

Occasional reports that lead to major revisions in the Economic Development Strategy, with an expectation that the Strategy will be revisited every four years from 2017.

9.3 Performance Indicators

Each of the actions in the Action Program has its own performance indicators. However, there are some more general indicators that can be used to assess how the Nillumbik economy is performing.

For a regular quarterly report to the Economic Development Advisory Committee, the following indicators will change:

Unemployment rate (DEEWR)

Value of building construction (Building Commission)

Visitor accommodation figures, if these become available separately for Nillumbik (ABS).

For an annual report to Council, as well as those above, the following indicators will change:

Estimated resident population and population growth rate (ABS)

Estimated change in the number and type of businesses (ABR)

Value of property sales and median prices (Land Victoria).

For significant reviews of the Economic Development Strategy (say every five years from the ABS Census), the following relevant indicators will also change:

Population of towns and small areas within the Shire (ABS)

Industry and occupation of the labour force (ABS)

Employment self sufficiency (ABS)

Journey to work and the extent of commuting outside the Shire (ABS)

Greenhouse impacts of commuting (calculated from commuting figures)

Population forecasts (DPCD).

Many of these indicators for Nillumbik can be compared over time with neighbouring municipalities in order to track how the Shire is progressing. Comparison municipalities could include:

Banyule

Manningham

Whittlesea

Yarra Ranges

Mornington Peninsula.

Further research on municipalities with similar opportunities and constraints to Nillumbik will also be undertaken to understand best practice in sustainable economic development.

9.4 Monitoring Action Program

The following action program is designed to implement the Economic Development Strategy.

Actions

Establish an Economic Development Advisory Committee and reporting process outlined in this Strategy.

Prepare Annual Implementation Plan for Economic Development that establishes priorities for the year.

Institute quarterly progress reports to the Advisory Committee including reporting on broad performance indicators.

Institute annual reports to Council including reporting on broad performance indicators.

Undertake ongoing research to identify best practice in sustainable economic development.

Align the time frame of the Economic Development Strategy with that of the Council Plan and undertake a major review of Economic Development Strategy every four years beginning in 2017.

9.5 Priorities

Council operates in an environment where the delivery of services to the community is largely determined by the availability of resources.

To enable Council to deliver the actions outlined in its Economic Development Strategy, it must therefore set priorities that will be established each year and set out in an Annual Implementation Plan.

The Implementation Plan will identify: the timelines and resources required to implement actions; external funding opportunities; and the consultation that is necessary with stakeholders and the community.

The Major Projects and Business Services Unit of Council will be responsible for managing the Implementation Plan and undertaking many of the actions, including coordination with other Council departments, external stakeholders and the community.

Based on the actions outlined in this document, the initial priorities are:

1. Establish an Economic Development Advisory Committee and reporting process outlined in this Strategy.

2. Continue to support business organisations in the Shire including traders associations, Nillumbik Tourism Association and the HomeBiz/SmallBiz Network.

3. Continue to support tourism and business development programs such as Farmers’ Markets, the Artists Open Studios and rebuilding businesses affected by bushfire.

4. Undertake a study to assess the feasibility of establishing a regional art gallery in the municipality, including potential opportunities to support the role of Monsalvat.

5. Assist with the development of new tourism products such as high quality eco accommodation that is integrated with tourism related offers, including the potential for a landmark eco hotel.

6. Continue to implement Major Activity Centre Structure Plan recommendations for Eltham and Diamond Creek.

7. Work with property owners, developers and business associations to encourage investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge as well as appropriate investment in smaller townships and centres.

8. Establish a Green Business Network that is consistent with the delivery of Council’s economic sustainability goals and objectives.

9. Continue to develop agribusiness networks and improve connections between rural producers, their industry groups and customers.

10.Ensure that any review of the Planning Scheme and the development of Township Strategies, considers existing impediments to sustainable economic development and appropriate tourism related activity in rural areas, and identifies land for the potential establishment of additional light industrial activities.

11.Develop a program that enables Council to provide information and support to enterprises seeking to invest in the municipality, including a strategy for promoting Nillumbik as a preferred place to do business.

12.Explore funding opportunities that are available to develop the tourism, arts, and agribusiness offer on a local and regional basis, including potential marketing alliances with adjoining municipalities and regional organisations.

These actions are expected to generate the largest number of jobs in the short and long term based on a strategic assessment of economic opportunities in the Shire.

10 References ABS, 2008, National Regional Profiles, accessed via www.abs.gov.au

Department of Sustainability and Environment, 2004, Melbourne 2030, Melbourne

Essential Economics, 2009, Economic Input to Planning Scheme Review, for Nillumbik Shire Council

Essential Economics, 2008, Draft Final Nillumbik Green Wedge Management Plan Economic Research, for Nillumbik Shire Council, Greensborough

Essential Economics, 2004, Economic Input to the Eltham Activity Centre Structure Plan, for Nillumbik Shire Council

Hassall, 2004, Eltham Activity Centre Structure Plan, for Nillumbik Shire Council

Nillumbik Shire Council, 2009, Draft Green Wedge Management Plan, Greensborough

Nillumbik Shire Council, 2009, Council Plan 2009-2013, Greensborough

Nillumbik Shire Council, 2002, Hurstbridge Township Strategy, Greensborough

Nillumbik Shire Council, 2006, Healthy Living in Nillumbik (Municipal Health Plan), Greensborough

Nillumbik Shire Council, 2010, Climate Change Plan, Greensborough

NORTH Link et al, 2009, Melbourne’s North – the new knowledge economy, Melbourne

SGS, 2006, Urban Economics Input for the Diamond Creek Structure Plan, for Nillumbik Shire Council

Tourism Research Australia, 2008, Tourism Profile for Nillumbik Shire, Canberra

Acknowledgements

This project has benefited from input by the following people:

Councillors

Cr Chris Chapple (Chair EDS Ref Group)

Cr Ken King

Cr Lewis Brock

Strategy Reference Group

Andrew Gillard

Carol Jenkinson

Norm Williams

Phil Marendaz

Renee Hasseldine

Workshop Participants

David Nicholls

Dr David Warner

Donna Kilgour

Dianne Granger

Daryl Brooke

Dylan Baker

Frank Lynch

Heidi Crundwell

Ian Clark

Jim Missailidis

Khan Franke

Paul Riggs

Teunis Kwak

Tom Crothers

Other interviewees

Chris and Mary-Lou Pittard

David Pryor

Eric and Bronwyn South

Gary Flood

Graham Morrison

Neil Roberts

Steve Herbert MP

Council officers

Barry Green

Chad Griffiths

Jackie Donkin

Kim Taylor

Margaret Abbey

Neville Slade

Darko Popovski

Personnel Assisting Council

Ken Northwood (Reference Group and Workshops Facilitator)

Appendix A: Economic Profile

Nillumbik SnapshotThe Shire is a municipality on the fringe of Melbourne with a mix of leafy suburbs, small townships, rural lifestyle precincts and farming areas.

Whilst Nillumbik has a number of vibrant activity centres most residents travel outside the Shire for work and for a large part of their retail and other commercial needs.

The complete economic profile is attached to this Strategy as a separate document.

Indicator Nillumbik Victoria

Estimated resident population in 2008

63,200 5,313,800

Annual population growth rate, 2001 to 2008

0.5% 1.4%

Forecast annual population growth rate, 2006 to 2021

0.5% 1.4%

Households with a weekly income less than $500 in 2006

5.0% 3.0%

Forecast annual growth in people aged 60+, 2006 to 2021

10% 22%

Households with a weekly income more than $2,000 in 2006

33% 18%

Largest industry for employed residents, 2006

Health care Manufacturing

Employed residents who are managers or professionals

39% 34%

Unemployment rate, December 2008

1.5% 4.3%

Proportion of resident workers who work in Nillumbik

25% N/A

Industry that generates most jobs within the area,

Education Manufacturing

Indicator Nillumbik Victoria

2006

Estimated number of businesses, 2006

6,000 490,800

Industry with largest number of businesses, 2006

Property & business services

Property & business services

Proportion of micro businesses (with less than 5 employees), 2006

90% 85%

Median house price, 2008 $480,000 $335,000

Annual average rise in median house price, 1998 to 2008

10% 10%

Value of building works per person, 2008

$1,500 $7,200

Appendix A: SWOT AnalysisIn the SWOT Analysis, opportunities for action on economic development stem from the strengths, weaknesses and threats facing the Shire. Not all the opportunities can, or should be pursued. Subsequent work in the preparation of the Economic Development Strategy for the Shire will identify which opportunities will deliver the best results.

The opportunities analysis is available as a separate document. Some of the identified opportunities are listed below:

Promote labour force to intending investors in knowledge intensive industries

Encourage skilled residents to establish local businesses

Provision of more office space in key activity centres

Enhancement of broadband infrastructure

Further training and mentoring of local professional start-up businesses

Attract investment in an eco tourist retreat providing accommodation, health and education services

Attract/develop businesses with a low carbon footprint

Protect environment and amenity that attracts residents and small businesses

Develop local environmental services network to foster skills and innovation in the sector

Potential for wider variety of skills development programs

Investigate development of business incubator for other small businesses wanting mentoring and contact with like businesses

Promote home based businesses in Nillumbik

Improve local provision of post-school educational opportunities

Potential to expand retail and other commercial services in key activity centres

Identify land for commercial growth in Eltham, including development over car parks and/or railway land

Rezone land for industrial purposes in appropriate locations

Develop policies that encourage better use of existing industrial land stock

Continue to support open studios program

Develop a regional arts centre

Retain land in zones in which farming is viable and resist subdivision for residential/lifestyle purposes

Investigate potential for innovative forms of subdivision that allow continued agricultural production

Provide training, including workshops with local businesses, for Council staff

Develop an economic strategy that is sensitive to “place”

Implement road improvements in key commuter corridors

Improve public transport connections, including bus interchanges with the train line

Institute common brand and promote

Improve tertiary education opportunities, particularly in environment and the arts

Eco tourism education and research centre

Monitor water availability

Ensure new buildings and activities make use of water saving technology

Identify retail and commercial development opportunities

Identify and address causes of retail leakage.