Departmentofeconomicdevelopment Sregionalservicedeliverymodelreview

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Submission

DepartmentofEconomicDevelopment’sregionalservicedeliverymodelreview

April 2015

Via email:

TheVictorianAssociationofForestIndustries(VAFI)appreciatestheopportunitytomakeasubmissiontothereviewoftheDepartmentofEconomicDevelopment’sregionalservicedeliverymodel andthe bestpoliciestodrive economicgrowth in regionalVictoria.

VAFIisthepeakemployerrepresentativebodyfortheVictorianforestandwoodproductsindustry.Ourmembersincludeforestmanagers,harvestandhaulagebusinesses,primarytimberprocessors,pulpandpaperprocessors,secondaryprocessorsandsellersandassociated businessesandorganisations.

VAFIiscommittedtoensuringaneconomically,environmentallyandsociallysustainablefutureforVictoria’sforestandwoodproductsindustries.Wesupportandencouragebestpractice in industry andforestmanagement.

VAFIispleasedthisreviewisbeingundertakentoestablishthedirectionoffutureregionaldevelopmentandidentifykeyregionalprioritiesforfutureinvestmenttosupportgrowthand infrastructureplanning.

TheforestandwoodproductsindustryisanimportanteconomiccontributorinruralandregionalVictoria,andprovidesopportunitiesforencouraginggrowth,populationdiversityand maintaining a sustainable localindustry.

Directlyemploying21,000Victorians,andindirectlysupportinganother40,000to50,000jobs,theemploymentandeconomicactivityourindustrygeneratesisvitalincreatingsustainablefuturesforruraland regionalcommunitiesacrossVictoria.

Regionaldevelopment iscritical for theeconomicand socialwellbeing oftheState.Inparticular,therolethatRegionalDevelopment Victoria(RDV)hasprovidedin termsofvaluablebusinessdevelopmentassistancetoVAFImembers.

Anexampleisthe caseof MidwayLtd.’sdevelopment of theSouthWestFibrewoodchip millatMyamyninwesternVictoria.Duringthedesignanddevelopmentapprovalphaseoftheproject,RDVwasveryeffectiveinreducing“roadblocks”associatedwiththesupplyofhighvoltageelectricitytothefacilityandwasintegralinnavigatingcertainenvironmentalapprovals,particularlythoserelatingto thethenDepartmentofSustainabilityandEnvironment.

TheknowledgeanddepartmentalcontactsprovidedbyRDVenabledmaterialassistancetocompletingthegreenfieldsproject,alongwithmanyotherprojects,andwewishtoexpressourappreciationoftheroleRDVhasplayedthusfarinsupportingforestandwoodproductsbusinesses and theindustry morebroadly.

TherearemanyexampleswherebyVAFIandits membershaveworkedincollaborationwithRDVandotheragenciestoachieveafavourableoutcomefornotonlylocalbusinesses,butlocal communities inturn.Thisexamplehighlightsthe importanceofanintegratedapproachthroughgovernmentandindustryinplanningforthelongtermviabilityofruralandregionalindustriesandtheircommunities.VAFIstronglysupportsthecontinuedinvestmentinsuchan integratedapproach.

VAFIbelievesthatfuturegovernmentsupportprogramsmustbeflexibleanddistincttoaccommodatethebreadthofindustries,employers,employeesandassociatedbusinessesacross allofregionalVictoria.Theseprogramsneed tobelocalisedandconsideredaspartofa long term strategywherebyindustry consultationand collaboration iswelcomed.

TheVictorianGovernment,throughRDV,playanimportantroleinensuringthecontinuedgrowthofourindustryinregionalVictoria;creatingmorejobsandagreatercontributiontothe economyintothefuture.

ItiscriticaltoensurethatregionaleconomicdevelopmentstrategiesandservicestakeprominenceinallstrategicplanningwithintheDepartmentofEconomicDevelopment,Jobs,Transportand Resourcesinorderto strengthenregionalgrowthand encouragejob creation.

VAFIprovidesthefollowingcommentsregardingeconomic,socialanddemographicalissuesfacing regionalVictoria andkey policylevers:

Recognition of theforestandwoodproductsindustry

• AcknowledgethebroaderbenefitsandimpactsoftheforestandwoodproductsindustryonregionalVictoriawhen developing strategicpolicies
• Securityofresourceisparamountforasuccessfulforestandwoodproductsindustryin future
• Recognisetheforestandwoodproductsindustryasanimportantcontributortoregionaleconomies andthebroaderVictorianeconomy.

Economicopportunities

• Regionalsupportisneededforinnovativeandeconomicopportunitiesintheforestand wood productssector,including investmentvehiclestoincreaseplantations
• Supportforcollaborationacrosssectors toensureastrongandvibrantlocalindustrycontinuesto growintothe future.

Naturalassets

• Recognise thesustainableapproach tocommercialforestry,including nativeforests
• Recognise thecontributionplantationsmaketo thelocaleconomy
• Recognisetheskillsavailablewithintheforestandwoodproductssectortomanageand maintain biodiversityand ecologicalvalues.

Fire managementandforestry

• Recognisetheroletheforestandwoodproductsindustryplaysinsupportingactiveforestandfiremanagement,andinprovidingaccess,skilledpersonnelandequipment necessaryto respond tofireson publicland.

Communities

• Recognisethedependencyofmanyruralandregionalcommunitiesontheforestand wood productsindustry
• Acknowledgetheneedtoeducate,train,accessandretainyoungskilledworkersinrural andregionalareas tohelp balanceagediversityand skillsshortages.

Transport

• Supportinvestmentstoensurelocal,stateandcommonwealthroadsarecapableoftransportingbothregionalcommutersandfreightvehiclesintothefuture,ensuringbetterefficiencies in freightmovementsacrossregional areas
• ThattheVictorianGovernmentassistlocalcouncilsandindustrytoaccessfundingforstrategiclocalroad upgradestosupportkeyindustries andcommunities
• Cross-bordertransportinitiativestobeinvestigatedaspartofabroaderstrategicregionalplan.Thiswouldgreatlyincreasevalue-addingopportunities,particularlyforexports.

Infrastructure

• ThatlocalcouncilsworkwiththeVictorianandAustralianGovernmentstoincreasethecoverageofhigh-speedinternetandotherassociatedinfrastructurenecessarytoundertake businesstransactionsin rural andregionalcommunities.

Strengthenregional growth andencouragejobcreation

• VAFIencouragestheVictorianGovernmenttoworkwithindustryininvestingintheeducation andworkexperienceof thoseworking in theforestryindustry
• TheVictorianGovernmentcouldassistbusinessestosetupservicesorrelocatetoregionalareasbywayof incentives
• FurtherworkmustbeundertakencollaborativelybytheGovernmentandindustrytoeducateprimaryschoolchildrenontheforestandwoodproductsindustryandprovidethelearningtoolstoensurethatthereisafutureofskilledworkersthatremainin regionalareasand in theindustry.

Secureresourcefortheforestandwoodproductsindustryandprovideopportunitiesforfutureinvestment

• Marketdiversificationandproductivityimprovementsarevital forasustainableforestandwoodproductsindustry.However,inordertoattracttheinvestmentrequired, a secure resourcebase is required
• Currentlyresourcesecurityisnotavailabletothelevelneededtoencourageanadequatelevelofinvestmentcapitalinalargenumberofnewoperationsandnewemploymentopportunities
• Securityofresourceisparamountforasuccessfulforestandwoodproductsindustryinfuture.VAFIlooksforwardtocontinuingtoworkwithGovernmentinensuringadequateaccessand resourcesecurityfor theongoingviabilityofourindustry
• Efficientmarketopportunitiesshouldbeencouraged,andgovernmentpolicyshouldaimtoaddressmarketfailuresandreduceregulatoryinconsistencieswheretheyexist,whilstseeking to minimiseactionsthatcreatesovereign risk
• Thereisadirectneedtomaintainnativeforestharvesting,withgovernmentpolicytosupportthecontinuationofharvestingthroughoutthestate,inparticularEastGippslandandtheCentralHighlands

VAFIsupportstheremovalofimpedimentstoinvestmentsintheindustry.Moreopportunitiesforinvestment would boosteconomicactivity andemployment. Theseopportunitiesforfurtherinvestmentinboththenativeandplantationsectors oftheindustryshould beatop priorityofthegovernment

Strengtheneconomicresiliencebygrowingamorediverseeconomywhichissupportedbynewinvestment,innovation andvalue-addingintraditionalstrengths

• Regionalsupportisneededforinnovativeandeconomicopportunitiesintheforestand wood productssector
• Inaddition,thereshouldbeagreaterlevelofsupportforcollaborationacrossdifferentsectorssuchasenergyandwaste,andmorebroadlymanufacturing,foodand fibre, in thepromotionof regionalVictoria.

Finally,VAFIsupportsthefuturedirectionssurroundingfurtherdiversificationofVictoria’sserviceandmanufacturingindustriestosupportjobcreationandinvestmentinregionalVictoria,and increase value-add to localproducts.

VAFIanditsmembersstronglybelievethatopportunitiesexistinregionalVictoriafortheireconomicandsocialfabrictobesupportedbylocalindustries.VAFIlooksforwardtocontinuingtoworkwiththeVictorianGovernment,andDEDJTRandRDVinparticular,tocontinuetobuildandgrowastrongandvibrantforestandwoodproductsindustryandtherural andregionalcommunitiesinwhichtheyoperate.

Yourssincerely

TimJohnston

ChiefExecutiveOfficer

GPO Box 4700, Melbourne VIC 3001, P: 03 9611 900, E: ,