POBox16
Bairnsdale,3875
10April2015
TheChairoftheExternalAdvisoryPanelHon.JohnBrumby
DearMrBrumby
EastGippslandFoodClusterIncsubmissiontothereviewof theDepartmentofEconomicDevelopment’sregionalservicedeliverymodelandthebestpoliciestodriveeconomicgrowthinregionalVictoria.
IwriteonbehalfoftheBoardandManagementoftheEastGippslandFoodCluster,andthank youfortheopportunitytoprovidecommentinrelationtotheabove.
Whilstweappreciatethescopeofboththerequirementsandthereviewisbroad,inoursubmissionwewouldliketofocusontheconceptof ‘industryclusters’aspositivemodelsforsupportingregionaldevelopmentoutcomes.
TheEastGippslandFoodClusterInc(EGFC)isanot-for-profitmember-basedcollaborativenetworkofregionalfoodandwineproducerscommittedtosupportingthesustainabledevelopmentofourregion’svitalagrifoodsector.Whilstagrifoodunderpinsourregionaleconomyandislikelycontinuetodosowellintothefuture,itisalsosubjecttoacomplexsetofsystemicchallengesandopportunities,whichmeansitisanythingbuta‘businessasusual’environment.
Sincethecluster’sinceptionin2011,theEGFChasgrownfromamembershipbaseofeight(8)toalmostthirty(30)regionalagrifoodbusinessesofallsizes,andwithmoremembersinthepipeline.Weconsiderwearegoodexampleofhow‘collaborative’and‘innovative’approachessupportpositive andintegrateddevelopmentoutcomesforregionalareas.Justafewexamplesofourpositiveachievementstodateinclude:
1.Implementationofatraineeshipprogrammewhichconnectsyoungpeoplewiththeagrifoodsectortherebydeliveringwin-winoutcomesforbusinesses(i.e.newtalent),youngpeople(i.e.careerpathwaysinanareaofhighsocialdisadvantage)andthebroadercommunity(i.e.keepingyoungpeopleengagedintheircommunity).Thisinitiative,whichisnowintoitsfourthyearandreflectsacollaborationbetweenEGFC,FederationTraining,GippslandEastLocalLearningandEmploymentNetwork(GELLEN),andLinkEmployment,wasthe‘winner’ofthe‘VictorianTrainingAwards–IndustryCollaboration’categoryin2014.
2.Theimminentlaunchofanewtradingentitywhichconnectsregionalfoodandwineproducersdirectlywithnewcustomers(consumersandbusinesses)viainnovativeeCommerceandlogisticsystems.Thisisaimedatregional,domesticandexportmarkets.
3.Jointprocurementinitiativeswhichhaveachievedsignificantproductivitygainsthroughaggregatingcollectivedemandandtenderingforcommonservicesandproducts.
4.Collaborationacrosslocalvaluechainsformorevalue-addingandnewproductdevelopmentwithintheregion.
5.Movingtoanoperationalpilotofco-digestion(anaerobic)ofmanufacturedfoodwasteandsewagesludgeforachievingoptimisedmethaneproductionandothermutuallybeneficialoutcomes,aspartofabroadercollaborationbetweenEastGippslandWater,EastGippslandShireCouncil,FederationUniversityandtheEGFC.
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Astherelationshipsand‘trusthavedevelopedwithinthecluster,weseebusinessesmorefreelysharing theirknowledge,ideas,andconcerns,andasaresulthaveasignificant‘pool’ofideastopotentiallyworkupintofurtherprojectsforthebenefitourbusinessandourregion.Ournetworkcontinuestostrengthenandextendsacrossresearchers,educationandtrainingorganisations,investors,financialinstitutions,industryassociationsandbusinesspartners.
Wegreatlyappreciatedthesupportoftheformerlabourgovernment’s‘clustersprogramme’,whichfacilitatedthelaunchoftheEGFCin2011.
Wehavealsoappreciatedthestrongpartnershiparrangementsthathaveexistedwithalllevelsofgovernment;particularlyRegionalDevelopmentVictoria.WehaverepresentativesofEastGippslandandWellingtonShireCouncils,andRegionalDevelopmentVictoria(Gippsland)sittingonourBoardinan‘ex-officio’capacitywhichhasstrengthenedmeaningfulindustry/governmentengagement.
Inparticularwehavevaluedtheknowledge,skillsandsupportoftheRDVteaminGippslandandtheirunderstandingoflocalissues.Welookforwardtothosestrongworkingrelationshipscontinuing.
WethereforestronglyurgetheVictoriangovernmenttocontinuetoinvestinsupportingbestpracticetoolsandapproachesthatunderpinsuccessfulclusters.Nowintoourfifthyearasasuccessfuland‘maturing’clusterwereflectonourownoutcomesandlearnings,alongwiththeincreasingbodyofknowledgethatisemergingaroundtheglobeinrelationtoclustersandtheirparticularimpactonregionaleconomies;inclusiveofhighervalueaddedgrowth,higherprofitabilitygrowth,andhigherwagesperemployee(aproxyfor
productivity)1.
WethereforefirmlybelievethateffectiveclusterscanplayacriticalroleinsupportingdevelopmentinregionalVictoriathroughenablingmemberstobetterleveragetheirexistingregionalbusinessenvironmentcapabilities,andtoinnovateanddevelopnewcapabilitiesthatfurtherenhancethatbusinessenvironment.
Clusterstherebyprovideagenuineandmeaningfulopportunityforgovernmenttoengagewithindustryinordertodevelopanddeployappropriatepolicyandprogrammes.Theyalsoprovideanopportunitytosupportamoreseamlessalignmentofarangeofinitiativesfromgovernmentatalllevels,andavoidwhatisoftenseenasunnecessaryduplicationand/oroverlap,aswellaspoliciesandprogrammesthatsometimesdonotmatchrealneedsand/orlevelsof readiness.
Werecognizethatwestillhavemuchtolearnaboutenhancingclustereffectiveness,andhowtoorganizeabroaderclusterbased-economicdevelopmentstrategy,butwewelcomefurtheropportunitiestocontinuethisjourneythroughongoingsupportandpartnershiparrangementswiththeVictoriangovernment,andforthebroaderbenefitofregionalVictoria.
Pleasedonothesitatetocontactusformoreinformation.
Yourssincerely
DrNicolaWattsExecutiveOfficer
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