Minutes of the Business and Employment Development Committee – 25 May 2016

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MINUTES OF THE BUSINESS AND EMPLOYMENT DEVELOPMENT COMMITTEE MEETING HELD ON WEDNESDAY 25 MAY 2016 IN COMMITTEE ROOMS 1, 2 & 3, CITY ADMINISTRATIVE CENTRE, BRIDGE ROAD, NOWRA COMMENCING AT 4.00 PM.

The following members were present:

Clr Watson

Clr Baptist

Clr Kitchener

Clr Kearney

Clr White

Clr Wells

Russ Pigg – General Manager

Robbie Collins

Paul Goodwin

David Goodman

Lexie Meyer

Adrian Stam

Steven Bayer

Peter Dryer

Others Present:

Tim Fletcher – Director Planning and Development

Greg Pullen – Economic Development Manager

Marianne Jones – Economic Development Officer

Cathy Bern – Development Services Manager

Coralie Bell – Tourism Manager

Catherine Shields

Apologies:

Apologies were received from Clr Gash, Clr Tribe, Ann Sudmalis MP, Shelley Hancock MP, John Lamont, Megan Cleary, Fiona Hatcher

1. Nomination of Chairperson

In the absence of John Lamont and Clr Tribe, the Committee nominated an acting Chairperson for the meeting.

MOTION: Moved: David Goodman / Second: Clr Kearney

RESOLVED that Clr Wells be nominated to act as Chairperson of the Business and Employment Development Committee meeting held on 25 May 2016.

CARRIED

2. New Members

New committee members, Peter Dryer, James Coburn and Steven Bayer were welcomed to the meeting and they introduced themselves.

3. Minutes of Previous Meeting

MOTION: Moved: David Goodman / Second: Clr White

RESOLVED that the Minutes of the meeting of the Business and Employment Development Committee, held on Monday 15 February 2016, be confirmed.

CARRIED

There were no declarations of interest.

GENERAL MANAGER

4. HVSPP, Fixing Country Roads and Fixing Country Rail File 40290E

The Economic Development Manager provided an overview of the contents of the report.

MOTION: Moved: Clr White / Second: Lexie Meyer

RESOLVED that the report on HVSPP, Fixing Country Roads and Fixing Country Rail be received for information.

CARRIED

5. Procedural Motion – Item Be Brought Forward

PROCEDURAL MOTION: Moved: Clr Baptist / Second: Clr White

That Item 11 - Development not Commenced in the Shoalhaven - Update be brought forward.

CARRIED

6. (Item 11) Development not Commenced in the Shoalhaven – Update
File 38821E

The Development Services Manager provided an overview of the contents of the report and advised the Committee that there was a typographical error in table two appended to the report. RA15/1000 should read $15 million not $1.5million. This brings the grand total of development to $606,310,768.

MOTION: Moved: David Goodman / Second: Steven Bayer

RESOLVED that the Committee receive the report of the General Manager (Planning & Development Services) regarding the update on development not commenced in the Shoalhaven.

CARRIED

7. Flinders Road Drop In Session File 5279E

The Economic Development Manager provided an overview of the contents of the report.

It was noted that the planned works have been approved and a traffic management plan will be in place when work begins.

MOTION: Moved: Clr White / Second: Paul Goodwin

RESOLVED that the report on the Flinders Road Drop In Session be received for information.

CARRIED

8. Business Development Programs File 38975E

MOTION: Moved: Clr Wells / Second: Clr Baptist

RESOLVED that that the report on Business Development Programs be received for information.

CARRIED

9. NBN Business Information Session File 47827E

The Economic Development Manager advised the Committee that the Community Affairs Manager NSW NBN will provide an information session for Councillors on the roll out of the NBN. An invitation to the information session has also been extended to local businesses.

It was noted that the information session is being held for the Nowra area in the first instance as the roll out is almost complete in Bomaderry.

Action – The Economic Development Officer to raise the issue of providing an information session for the Ulladulla region with the NBN.

MOTION: Moved: Lexie Meyer / Second: Clr Baptist

RESOLVED that the report on the NBN Business Information Session be received for information.

CARRIED

10. Smart Cities Plan File 31157E

The Economic Development Manager provided an overview of the contents of the report.

The Director Planning and Development provided an update on the Australian Government’s Smart Cities Plan and advised that more information can be found on the website, where the plan can also be downloaded https://cities.dpmc.gov.au/smart-cities-plan .

The Committee discussed what Council’s proposed response to the Plan may be and it was noted that submissions close on 24 June 2016.

MOTION: Moved: Clr Wells / Second: Clr Baptist

RECOMMENDED that:

a) The Business and Economic Development Committee receive the report on the Smart Cities Plan for information.

b) Council notify relevant federal agencies of its interest in the Smart Cities Program and make appropriate submissions.

CARRIED

11. Proposed Business Rates for 2016/2017 File 38821E

The General Manager provided an overview of the contents of the report.

MOTION: Moved: David Goodman / Second: Lexie Meyer

RESOLVED that the Business and Economic Development Committee support and endorse Council’s proposed reduction in business rates in the City as follows:

· A decrease in rates of approx. 34% for the Nowra CBD

· A decrease in rates of approx. 31% for the Ulladulla CBD

· A decrease in rates of approx. 3% for other Business rates

CARRIED

Note: Clr Kitchener voted against the motion.

12. Facilitating employment growth File 38821E

The General Manager provided an overview of the contents of the report noting that an independent consultancy has been engaged to undertake the review to gain a broader perspective and draw on their greater experience and exposure.

MOTION: Moved: Clr Kitchener / Second: Clr Baptist

RESOLVED that the Business and Economic Development Committee note the information provided with regard to facilitating employment growth.

CARRIED

13. Shoalhaven River - Riverfront Infrastructure File 38821E

The General Manager provided an overview of the contents of the report.

The Economic Development Manager advised that it is proposed to moor the pontoons at Greys Beach, North Nowra where they will be deployed as required. It was noted that precautions will be in put place to safeguard the pontoons should a flood event occur.

It was also noted that more information will be provided to the Committee as the project progresses.

The Committee discussed how functions and events on Shoalhaven’s waterways might be promoted.

The Tourism Manager advised that a review will be undertaken by Council to consider the capacity and capability of events in the Shoalhaven. Part of the outcome of the review will be to identify gaps such as utilising Shoalhaven’s waterways.

Catherine Shields suggested that use of Shoalhaven’s waterways for events could be raised at next Shoalhaven Tourism Advisory Group meeting for discussion.

MOTION: Moved: Clr Wells / Second: Clr Kearney

RESOLVED that:

a) The Business and Economic Development Committee endorse Council’s actions to invest in, and facilitate the activation of the Shoalhaven riverfront.

b) Plans for the pontoon infrastructure be provided to the Committee after they have been considered by Council.

CARRIED

14. Illawarra Shoalhaven Youth Employment Action Plan File 38821E

The General Manager provided an overview of the contents of the report.

MOTION: Moved: Russ Pigg / Second: Paul Goodwin

RESOLVED that the Business and Economic Development Committee note the work being undertaken at a regional level to address youth employment opportunities.

CARRIED

15. Land Sales & Business Enquiries File 38821E

The Economic Development Manager provided an update regarding the increase in land sale enquiries and other contracts.

MOTION: Moved: Clr Wells / Second: Lexie Meyers

RESOLVED that that the Business and Economic Development Committee note the information regarding increase in land sale enquiries and other contracts for information.

CARRIED

EXTERNAL MEMBERS REPORTS

16. Southern Region BEC File 38821E

Adrian Stam provided an overview of the contents of the report noting that since the release of the SRBEC facebook page on Friday 20 May 2016, 122 businesses have joined.

MOTION: Moved: Adrian Stam / Second: David Goodman

RESOLVED that the Committee receive the report submitted by Adrian Stam on the Southern Region BEC for information.

CARRIED

17. NSW Department of Industry File 38821E

The Economic Development Manager provided an overview of the contents of the report.

MOTION: Moved: Clr Wells / Second: David Goodman

RESOLVED that the Committee receive the report submitted by Megan Cleary on the NSW Department of Industry Update for information.

CARRIED

GENERAL BUSINESS

18. Additional Item – Shoalhaven Careers Expo File 38821E

Robbie Collins advised the Committee that the Shoalhaven Careers Expo will be held on 22 July 2016 from 9.30am to 12.30pm and attendance of approximately 300 is expected. Approximately 30 businesses have registered and registrations are still being accepted.

19. Additional Item - National Indigenous Football Championships File 38821E

Robbie Collins advised that the National Indigenous Football Championships are scheduled to be held from 3-5 November 2016 at the Shoalhaven Sporting Complex Nowra noting that sponsorships are still being sought.

20. Additional Item – Business and Employment Development Committee Membership File 38821E

Catherine Shields, Chairperson of the Shoalhaven Tourism Advisory Group, addressed the Committee on the issue of membership.

Catherine requested that the Committee consider including a representative from the Shoalhaven Tourism Advisory Group in the Committee membership.

MOTION: Moved: Clr Watson / Second: Clr Wells

RECOMMENDED that Council approve the appointment of a representative from the Shoalhaven Tourism Advisory Group to the Business and Employment Development Committee.

CARRIED

There being no further business, the meeting concluded, the time being 5.09 pm.

Clr Wells

ACTING CHAIRPERSON

Business and Employment Development Committee – Wednesday 30 November 2016

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BE16.1 Economic Update and Employment Land Activity

HPERM Ref: D16/351798

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To update the committee on recent employment land activity and economic trends

Recommendation (Item to be determined under delegated authority)

That the report by the Economic Development Manager on Economic trends and employment land activity be received for information.

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

Labour market

With regard to the employment within Shoalhaven the following table shows the latest statistics:

	June 1996	June 2006	June 2016
Employment	24,419	32,498	35,745
Unemployment	4,112	3,517	3,640
Labour Force	28,631	36,015	39,385
Population	73,724	92,346	99,740

The cyclical nature of the Shoalhaven Labour Market comes about because of a number of factors but primarily, because of the number of international businesses within our economy, the national and global markets. Uncertainty with employers in the public sector is also creating caution within the local labour market and spending patterns generally. The falling Australian Dollar continues to provide an opportunity for the local manufacturing sector.

The general trend can be best described as positive, and this rates ahead of most of regional Australia.

Economic Indicators

Since 2013 Council has been monitoring the Gross Regional Product for the Shoalhaven LGA. This calculation by REMPLAN is calculated using the expenditure method gathered through the National Accounts and ATO data.

GRP is the total value of final goods and services produced in the Shoalhaven region over the period of one year. As can be seen from the table, this includes exports but subtracts imports.

GRP Expenditure Method	$M
Household Consumption	$4,430.958
Government Consumption	$1,195.696
Private Gross Fixed Capital Expenditure	$1,541.915
Public Gross Fixed Capital Expenditure	$339.250
Gross Regional Expenses	$7,507.819
plus Regional Exports	$2,201.061
minus Domestic Imports	-$4,461.829
minus Overseas Imports	-$808.499
Gross Regional Product	$4,438.551
Population	92,812
Per Capita GRP ($'000)	$47.823
Per Worker GRP ($'000)	$154.395

Over time the GRP will move and Shoalhaven is trending quite positively:

	Shoalhaven GRP
January 2013	$3.738b
January 2014	$4.056b (+7.84%)
January 2015	$4.193b (+3.26%)
January 2016	$4.439b (+5.54%)

The relative size of economies can be determined by comparing GRP and this is shown below:

Port Stephens LGA	$3.826b
Maitland LGA	$3.625b
Muswellbrook LGA	$2.441B
Newcastle LGA	$14.228b
Lake Macquarie LGA	$8.618b
Hawkesbury LGA	$3.532b
Blue Mountains LGA	$2.571b
Wollongong LGA	$11.392b
Shellharbour LGA	$2.104b
Kiama LGA	$0.702b
Shoalhaven LGA	$4.439b
Bega Valley LGA	$1.631b

Capital Expenditure

The current major Capital Projects by Government are:

• Princes Highway – Toolijoa –Berry

• Princes Highway – Lake Burrill Bridge

• Shoalhaven River Bridge Design

• HMAS Albatross Stage 3 upgrade

• HMAS Albatross – AIR9000 Ph 7 HATS (nearing completion)

• AATP – AIR9000 Ph 8 Seahawk support (recently completed)

• Shoalhaven Medical Precinct planning

Employment Land Activity

In recent months the level of activity across industry sectors has increased steadily. Land sales have escalated and DAs are now being assessed. Construction activities on some projects have commenced, but more will occur in upcoming months.

To date the following sales are at contract or settled:

• AATP – 4 lots settled – 3 occupied; 1 lots in contract

• Flinders Estate – 5 lots settled – 1 occupied, 1 factory under construction; 3 lots exchanged

• Huskisson Estate – 3 lot settled – 1 occupied, 2 DA submitted; 3 lots under contract

If all of the above are realised and all 7 lots are sold, this will realise to Council in excess of $5m and require construction of additional stages of subdivision at Huskisson and AATP. Recently a $1m extension to the taxiway at AATP was completed and works to bring an additional 8 lots to the market at Woollamia are scheduled for 2017.

The types of businesses that are purchasing land are:

• Local businesses that have outgrown their rental premises and wish to grow and develop their own premises (4)

• Relocating businesses to Shoalhaven (4)

• Existing Shoalhaven businesses looking to expand operations (7)

Advancement on other major projects have shown some significant progress in recent months with DAs having been approved and projects having moved or will shortly move into the construction phase such as:

• Jervis Bay Aquaculture (construction commencing 2017)

• Trinity College, Woollamia (recently opened)

• Manildra expansion(s) (ongoing)

• Vincentia Shopping Centre (completed)

• Willinga Park Equestrian Centre at Bawley Pt (completed)

• Retail complex at Sth Nowra (completed)

• Defence Support Facility (completed)

Community Engagement

Realistically the contents above give a progressive picture and are not of interest to the community until visible construction can be seen. When developments start coming out of the ground then the media and community commence being interested.

Financial Implications

The work currently being undertaken by the Economic Development Office is fully funded from Council’s operating and capital budgets and other generated income.

The income from land sales is reinvested into employment property development.

Business and Employment Development Committee – Wednesday 30 November 2016

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BE16.2 Business Development Program - Economic Development Office

HPERM Ref: D16/354490

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To update the Business and Employment Development Committee about the variety of training opportunities available through the Business Development Program co-ordinated by the Economic Development Office.

Recommendation (Item to be determined under delegated authority)

That the report on the Business Development Program co-ordinated by the Economic Development Office be received for information.

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

The Economic Development Office of Shoalhaven City Council supports a number of business training and development programs for local businesses. The Economic Development Office does this through partnering with other government and non-government entities who provide business training. This partnership approach has been extremely successful and has resulted in the delivery of quality training by skilled and knowledgeable trainers.

Currently the Economic Development Office is working with the Shoalhaven Business Chamber, the Southern Region Business Enterprise Centre and The Business Sessions to deliver training.

The Economic Development Office of Shoalhaven City Council has entered into a MoU with the Shoalhaven Business Chamber to deliver a series of busines development/improvements programs and networking opportunities. Council has sponsored the Chamber to deliver the following:

• Business Breakfast Bites series – 6 breakfasts per year. The Chamber will organise the breakfasts and arrange for a guest speaker to provide educational information around business assistance and advice.

• Lunch and Learn series. The Chamber will organise 6 lunches per year hosted by a profession (i.e. Accountants, Solicitors, Bankers etc) that provides a workshop style session on various business related topics that will assist members in their day to day business operations.

• Establish a “Women in Business” group and host networking opportunities.

Earlier in the year Council also sponsored the Chamber to deliver a series of Business Master Classes. Between January and June 2016 the Chamber held:

• 3 Breakfast Bites (156 attendees),

• 4 Lunch and Learn events (75 attendees),

• 2 Women in Business Events (135 attendees) and

• 4 Business Master Class events (140 attendees).

The Economic Development Office also supports the Southern Region Business Enterprise Centre by providing access to training rooms. The SRBEC held two training sessions at Council in 2016.

An initiative of the Economic Development Office has been to collaborate with a local business training provider, The “Business Sessions”, to provide business training, are mainly focused on effective use of electronic media. Council supports The Business Sessions by providing access to training rooms and associated equipment. The Business Sessions have trained 231 people between January and September 2016.

The Economic Development Office of Shoalhaven City Council will continue to support these partnerships and are willing to find more training partners to deliver cost effective and quality training to the local business community.

Community Engagement

This report to the Shoalhaven Business & Employment Development Committee is part of the community consultative process and its purpose is to inform. The Economic Development Office does circulate notice of these training sessions to its business networks.

Policy Implications

Business development programs meet 2016/2017 DP/OP

Key Priority Area – 3.2. Partner with industry, government and business

Corporate Activity - 3.2.03 Maintain and enhance Shoalhaven's economic base through collaboration between all levels of government, other relevant agencies, and the broader Shoalhaven community

Corporate Action - 3.2.03.4 - Facilitate and/or host business training and networking sessions for local business

Financial Implications

Shoalhaven City Council has provided funding to the Shoalhaven Business Chamber to run a number of business development sessions. This funding is allocated from the Economic Development Office budget.

The SRBEC and the Business Sessions receive support through the use of Council training rooms. This has minimal cost to Council but is again met through the ED budget.

Business and Employment Development Committee – Wednesday 30 November 2016

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BE16.3 School to Work Transition Programs

HPERM Ref: D16/354634

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To report to the Committee and organisations that members represent, the current work being done to facilitate a better understanding of career opportunities within the Shoalhaven.

Recommendation (Item to be determined under delegated authority)

That the report on the School to Work Transition Programs be received for information.

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

Shoalhaven City Council, the Shoalhaven Professional Business Association and the University of Wollongong - Shoalhaven Campus run a number of annual School to Work Transition Programs aimed at encouraging local youth to pursue local careers and to increase the awareness of local teachers and students of the diversity of career options available in the Shoalhaven.

The annual calendar of events commences with the Professional Snapshot scheduled in Term 1. The Professional Snapshot is jointly organised by the Economic Development Office of Shoalhaven City Council in partnership with the Shoalhaven Professional Business Association. The aim of this day is to expose students in Years 10 to 12 to professional careers that they may not have previously considered. This day is very successful with students exposed to a typical workday in careers as varied as Engineering, Surveying, Valuing, Accounting, Financial Management, Law and Town Planning. In 2015, an Allied Health stream was introduced that was very popular. Students walk away from this day with a better understanding of each career which will help guide them toward a rewarding career path.

Each year around 80 students are involved, co-ordinated through the Careers Advisers at the local High Schools. Businesses are restricted to the Nowra CBD area, for logistical reasons. Each year around 10-15 businesses give of their time to deliver the overview of the various career prospects.

The University of Wollongong - Shoalhaven Campus hosts an annual Careers Expo. This event is held in the middle of the year. It is well-attended and students can meet prospective employers and discover what local businesses are looking for in potential recruits. Both business and students find this day rewarding.

The Term 4 activity is the Teachers Industry Tour. Careers Advisors and about 30 teachers spend the day travelling by bus in the northern Shoalhaven and visit a number local businesses. The aim of this day is to demonstrate the breadth of employment/career opportunities in the Shoalhaven - from manual unskilled labour through to careers that can lead to international opportunities. Feedback from this day is generally quite positive with many attendees expressing their surprise at the calibre of businesses and variety of employment opportunities available within the Shoalhaven.

The 2016 Teacher Industry Tour was held on the 17th November 2016 with 25 teachers attending. Teachers from Nowra, Bomaderry, Shoalhaven High Schools as well as from St John’s and Nowra Christian School attended the day.

The Economic Development Office of Shoalhaven City Council would like to thank the following businesses for their participation.

• Sikorsky Helitech

• Shoalhaven City Council

• Manildra

• Integrity Real Estate

• Hanlon Windows

• Bomaderry Bowling Club

• Walsh and Monaghan

• Financial Dynamics

• Shoalhaven Medical Imaging.

Community Engagement

This report is to provide the Committee with an overview of the project. And the involvement by the schools, local businesses and business associations.

Policy Implications

Business development programs meet 2016/2017 DP/OP

Key Priority Area – 3.2. Partner with industry, government and business

Corporate Activity - 3.2.03 Maintain and enhance Shoalhaven's economic base through collaboration between all levels of government, other relevant agencies, and the broader Shoalhaven community

Corpprate Action - 3.2.03.3 Maintain and/or enhance industry liaison and networks

Corporate Action - 3.2.03.4 - Facilitate and/or host business training and networking sessions for local business

Financial Implications

The Economic Development Office of Shoalhaven City Council provides lunch, meeting room space and staff resources for the Professional Snapshot. The costs are minimal and come from the Economic Development Office budget. Other key sponsors include the Shoalhaven Professional Business Association, Southern Phone and local business participants.

The University of Wollongong - Shoalhaven Campus Careers Expo is funded by the Shoalhaven Campus.

The Teachers to Industry Tour is funded by the Economic Development Office of Shoalhaven City Council. Costs include providing morning tea, lunch and transport (bus) for the tour.

The School to Work Transition programs have been highly successful and are due to the coordinated efforts of the Economic Development Office, the Shoalhaven Professional Business Association, the University of Wollongong - Shoalhaven Campus, the local business community and the Shoalhaven Careers Advisors Network.

Business and Employment Development Committee – Wednesday 30 November 2016

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BE16.4 Nowra Buskers Series and Nowra CBD Street Flags in Jelly Bean Park

HPERM Ref: D16/354599

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To provide the committee with information about the Nowra Buskers Series held in Jelly Bean Park, coordinated by the Economic Development Office

Recommendation (Item to be determined under delegated authority)

That

The report on the Nowra Buskers Series in Jelly Bean Park be received for information

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

The Economic Development Office of Shoalhaven City Council has an extremely varied work output. The aim of the EDO is to grow the Shoalhaven economy through supporting local business and enticing new business into the area. Achieving this aim means that the section undertakes a wide variety of activities.

For each committee meeting a report will be submitted on the smaller programs being co-ordinated through the Economic Development Office.

The Nowra Buskers Series is an Economic Development Office initiative and is aimed at creating activity in the Nowra CBD. Activation of the CBD increases foot traffic and hopefully leads to more vibrant and prosperous town centre. In addition, activation also discourages anti-social behaviour.

Commencing in June 2016, the series was originally intended to occur every Tuesday in Jelly Bean Park. However, weather impacts made it necessary to be more flexible in our approach. The EDO Administration Officer coordinates the program. This involves developing a relationship with the buskers and scheduling their performances. The program will now continue into 2017.

As a result of this promotion, buskers are now appearing more regularly in other areas of the City as they become aware of the Council rules, made easy by a quick explanation.

As a compliment to the above, the EDO co-ordinates the street banners in Junction/Kinghorne St, again to add vibrancy to the Nowra CBD. Banners are generally rotated every 4-6 weeks along the theme at the time – Christmas, ANZAC Day, Seasons of the year, events, celebrations… The cost of the generic flags are met from within the ED budget with 3rd party promotions being met by the organiser/sponsor.

Community Engagement

The purpose of this report is to provide an overview of the Nowra Buskers Series and to provide a very quick snapshot of the range of work undertaken by the Economic Development Office.

The Busker Series has created positive feedback from shop owners and shoppers. The postings are well liked on Council’s Facebook page.

Financial Implications

The Nowra Buskers Series requires some staff time. Uninsured buskers are covered by a council insurance policy purchased by Council (estimated cost of insurance is $10 per person per event).

Business and Employment Development Committee – Wednesday 30 November 2016

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BE16.5 Major Grant Applications by Council

HPERM Ref: D16/354555

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

The Economic Development Office of Council has been involved in several major grant applications in recent years. This report is to give an update on the status of these applications.

Recommendation (Item to be determined under delegated authority)

That the report on HVSPP, Fixing Country Roads and Fixing Country Rail be received for information.

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

The Economic Development Office of Shoalhaven City Council has provided support, advice and assistance on a number of federal and state government grant programs including:

• National Stronger Regions (Federal)

• Heavy Vehicle Safety Productivity Program (HVSPP) (Federal)

• Fixing Country Roads (FCR) (State)

• Fixing Country Rail (State)

National Stronger Regions – Round 3

Two applications were lodged by Council in the most recent round being Increased Berthing at Ulladulla Harbour and Nowra CBD Revitalisation. The Nowra CBD Revitalisation project was not successful. Increased Berthing at Ulladulla Harbour was subsequently approved for funding under the Community Development Grants Programme.

National Stronger Regions – Round 2

Two applications were lodged by Council with one application (Mind the Gap) being successful and the other (Nthn Shoalhaven Leisure Centre) being unsuccessful.

Status of Successful projects:

Mind the Gap

Mind the Gap is a collaborative project between Shoalhaven City Council (lead agency) and the University of Wollongong.

The project consists of the construction of an Educational and Mental Health Building on the Shoalhaven Campus of the University. MIND the GaP (Mental Illness Nowra District – Goals & Prevention) is a unique facility to be established at the University of Wollongong, Shoalhaven Campus. The Shoalhaven City Council and University’s $2.45M MIND the GaP facility will be a purpose designed building where education, translational research and service provision can intersect through collaborations with Lifeline, Coordinaire, Illawarra Shoalhaven Local Health District and Noah’s Shoalhaven. MIND the GaP will provide improved community-driven mental health interventions for the Shoalhaven and other regions around Australia.

The funding approved amounted to $1,229,554, being 50% of the capital cost of the project.

The Development Application for the project is currently being assessed by Council and it is expected that construction will commence in early 2017 at the Shoalhaven Education Campus.

Increased Berthing at Ulladulla Harbour

The Increased Berthing at Ulladulla Harbour project although lodged under the National Stronger Regions Program has been funded under the Community Development Grants program. The project will deliver a small marina within Ulladulla Harbour. Contracts with the Commonwealth are currently being finalised.

The funding approval is for $789,742 from the Commonwealth, with the NSW Crown Lands committed to $400,000 towards deepening of the harbour floor and a Council contribution of $400,000.

Final designs will be prepared once the contractual agreements are in place as well as preparation of management and leasing arrangements for the operation of the facility. Works should commence before mid-2017 and be completed in readiness for the 2017 summer.

East-West Freight Corridor (beyond Nerriga

The HVSPP is a federal government program that aims to increase productivity and safety of heavy vehicles by enhancing the capacity of existing roads and improving connections to freight networks. The government will contribute a maximum of 50% of the total project cost.

Fixing Country Roads is a State Government program which aims to provide targeted funding to local councils for road projects that will eliminate connectivity constraints on local roads in NSW and reduce the cost to market for local businesses. Round 2 closed on May 2016.

Councils are able to use Fixing Country Roads funding to match funds requested from the HVSPP. Grant applications to both funding streams are assessed in tandem by the state and federal funding bodies. This approach provides councils will a unique opportunity to secure funding for significant road projects that are beyond the financial capabilities of regional councils.

Shoalhaven City Council, Goulburn Mulwaree Council and Palerang Shire Councils partnered to apply for funding to upgrade the route between Nerriga and Sandy Point Road via Oallen Ford. This project is entitled ‘Heavy Vehicle Freight Route – Nerriga to Sandy Point Road’. The aim of the project is to upgrade a 32.7km section of road between Nerriga and Sandy Point. The upgrade will eliminate the 15 tonne load limit on Oallen Ford Road and thereby create a heavy vehicle freight route linking the coast to the Hume Highway. Once the project is completed, General Mass Limit and Higher Mass Limit Heavy Vehicles will be able to cross the Illawarra escarpment travelling via Nerriga and Tarago on a route that generally has lower gradients and shorter travel distances than other accessible travel routes.

Goulburn Mulwaree Council applied to Round Five of the HVSPP for funding for this project while Palerang Shire Council was the proponent for Fixing Country Roads.

Goulburn Mulwarree Council requested $24,755,000 in funding toward the project total of $49,513,000. This figure was revised as more detailed costings were developed. This accounts for the discrepancy between project costings.

Fixing Country Rail

The Fixing Country Roads grant application was a two staged process. Proponents submitted an expression of interest. Selected proponents were then asked to submit a final application. Palerang Shire Council submitted the final application requesting $21,317,300 toward a total project cost of $45,634,600.

Goulburn Mulwaree and Palerang Shire Council’s were each to contribute $1,500,000 toward the project.

Both applications, the HVSPP and the Fixing Country Roads, were assessed in tandem.

Thus far feedback has been favourable. Early reviews of the EoI and HVSPP application were positive. Transport for NSW staff have been particularly helpful and have provided assistance with the Business Cost Analysis template. In addition, Goulburn Mulwaree and Shoalhaven Council staff provided Transport for NSW a guided tour of the route.

Shoalhaven City Council is supporting Goulburn Mulwaree Council and the newly created Queanbeyan-Palerang Council in preparing revised documents for resubmission in January/February 2017.

Fixing Country Rail is NSW Government pilot rail program designed to complement Fixing Country Roads and aims to eliminate connectivity constraints on the NSW regional rail network. Like Fixing Country Roads, Fixing Country Rail is a two staged application process; proponents first submit an EoI and if ‘successful’ are then requested to submit a full application. The government has allocated $15 million to this pilot program.

Shoalhaven City Council, via the Economic Development Office, has written letters of support for the following rail projects identified by the Manildra Group:

• Upgrade the rail corridor between Berry and Bomaderry (13km) to Class 1 track – this project will enable Manildra to carry a third container on their 60ft wagons leading to a 33% increase in efficiency. (Indicative cost $4.16M)

• Nowra Container Terminal Construction and required Signalling Changes – Manildra will be investing over $19M in the construction of a new Container Terminal and associated rail sidings. This project requests that the Bomaderry Home and Distant Signal be relocated a further 500 meters towards Berry. This would free up much needed space for Manildra to shunt and form trains and will also significantly reduce the number of Bolong Road crossing. (Indicative cost $1.2M)

• Extension of the Crossing Facility at Unanderra through installation of a new Turnout – this will ensure rail services that operate on the Moss Vale to Unanderra corridor to or from the South Coast can operate in excess of 600 metres in length by performing the run around movement at Unanderra and avoiding the need to operate via Inner or Outer Harbour, a journey that can take up to an hour. (Cost $800,000)

• Moss Vale to Unanderra Corridor – Extension of the Summit Tank Loop – will allow for greater efficiency by rail for the movement of rail services through greater rail capacity with the primary advantage of operating services on the corridor greater than 670 metres. The project will extend the existing loop at Summit Tank from 670 metres to 900 metres allowing services to operate at this length in between clearance points from the main line. ($ provided by ARTC)

• Refurbishment of Manildra Yard (Manildra NSW) including the main line, Ex loop now siding, the grain siding. The NSW Government owns this entire infrastructure - from Western Grain locations through rail services to Manildra being 14,300 tonnes per week for flour production and a further 1000 tonnes per week of Canola delivery for production. Manildra also loads to rail 7200 tonnes per week of flour and 750 tonnes per week of pellets for transit to the Manildra Group Bomaderry facility. Manildra also exports approximately 3000 containers to the Port of Botany each year with this figure expected to grow to 5,600 containers within the next 12 months. The Manildra Group employs approximately 1000 personnel in NSW with 250 employees located at the Manildra plant. The Manildra Mill plant is the 8th largest independent Mill of its kind in the world. The completion of this project will ensure that the existing 1.5 million tonnes and continued growth of freight moved. (Cost $4,798,800)

• Manildra Yard – Extension of the Container Siding and connection to the main line – extension of the container siding at Manildra yard, Manildra, NSW, a further 245 metres and connect to the main line. Closure of Boree Road level crossing and asphalt works to seal new roadway connection. (Project total $2.2M; funding request $1.77M)

Many of the projects listed above do not occur within the Shoalhaven. The Economic Development Office acknowledges that freight constraints in other locations can adversely impact the economy of the Shoalhaven and it is for this reason that Council is supportive of projects in other areas.

None of the above projects were successful. However, the NSW Government has committed funding to plan and design work for:

• Installation of a new turnout at the centre of Dunmore Loop at Shellharbour to improve line efficiency and capacity.

• Installation of a new turnout at Unanderra to allow for longer trains and increased line capacity.

Community Engagement

This report to the Shoalhaven Business & Employment Development Committee is to inform the committee of a number of identified infrastructure projects that would have a positive impact on the economy of the Shoalhaven.

Financial Implications

Shoalhaven City Council will not contribute financially to any of these projects. Costs incurred are limited to staff time and travel to neighbouring LGA’s and Transport for NSW (Sydney).

Business and Employment Development Committee – Wednesday 30 November 2016

Page 23

BE16.6 South Nowra Freight Corridor Upgrade

HPERM Ref: D16/354662

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To update the committee on the progress of two projects which will resilt in an upgraded Sth Nowra Freight Corridor between the Princes Highway and Albatross Rd.

Recommendation (Item to be determined under delegated authority)

That the report on the South Nowra Freight Corridor Upgrade be received for information

Options

1. The recommendation be accepted as written.

2. An alternative recommendation be proposed.

Background

Council in the late 1970 completed the link between the Princes Highway and Albatross Rd at South Nowra into what is known today as Flinders Rd. The building of the road some 40 years ago was tied to the development of the Flinders Industrial Estate which was a joint project of the NSW Government and Council.

Remedial works to this important link have occurred over the years but it was considered that the road was inadequate for the traffic volumes and characteristics of today. At times heavy vehicles can form 20% of the traffic volumes and the narrowness of the pavement can be dangerous if any vehicle needs to pass a turning vehicle or take corrective action.

Flinders Rd has seven intersections – Princes Highway, Bellevue St, Angus Ave, Cumberland Ave, Norfolk Ave, Albatross Service Rd and Albatross Rd. Each of these intersections require movements of B-double vehicles to access factory premises and the designs of 40 years ago do not meet the necessary design standards for these larger vehicles.

Following the upgrading of the Princes Highway through Sth Nowra, the RTA/RMS were keen to close the access to Flinders Rd but council argued and preserved the left in/left out movement and the right in movement but undertook to review the situation going forward.

With the leasing of Port Kembla by the NSW Government, funds became available under the Restart Illawarra program administered by Infrastructure NSW for local infrastructure projects. Council made application and was successful in obtaining $1.05m towards a project to realign the intersection of Flinders Rd to the Highway at the Browns Rd roundabout. Roads to Recovery (Federal) grant funds were also used to supplement the State funds.

This work was recently completed and opened on 4th November 2016. To date feedback from trucking operators is favourable.

The second part of the upgrade project was to widen the pavement between the existing bridge near the Highway and Albatross Rd and improve the intersection treatments. Council has engaged consultant design capacity to assist with the project and this work is very advanced. Preliminary designs were explained to local bus and truck operators in mid 2016 and the feedback was incorporated into the final design.

Council is now undertaking utility relocations with the various agencies and it is hoped that tenders for the roadworks/intersections will be called in early 2017 with construction commencing before mid year and weather permitting should be completed around the end of 2016.

The funding for this significant upgrade will come from 3 sources:

• $300,000 from Council

• $3,100,000 from the NSW Government under Fixing Country Roads program

• $2,950,000 from the Australian Government under the Heavy Vehicles Safety Productivity Program.

The case for these projects was based on the many businesses operating at both Flinders Industrial Estate and the Albatross employment precinct.

Flinders Industrial Estate, AATP and surrounding areas contribute significantly to our regional economy. The Shoalhaven has a diverse manufacturing sector with the project area generating $832.2M in regional exports annually. Much of this production is for the national market (all states) and internationally. Manufacturing represents 40% of the Shoalhaven’s regional exports.

The manufacturing sector in the Sth Nowra/Albatross precinct is quite diverse and creates a variety of high value goods that require transport. The logistics network for both the finished/semi-processed goods as well as the raw material inputs is quite widespread.

Major logistic activities for the range of industries include:

• Chemical manufacture – export/national domestic

• Aircraft maintenance – export/national domestic

• Watercraft manufacture – export/national domestic

• Food products – export/national domestic

• Animal feed products – export/national domestic

• Construction components - national domestic

• Industrial machinery- export/national domestic

International markets include- Middle East, China, USA & Americas, Europe, and throughout Asia & Oceania.

Major logistic warehousing has established at Sth Nowra supplying south-eastern NSW in a range of products.

International manufacturers from USA, UK, Japan and Canada operate from South Nowra

Several of these companies lie in the middle of vertical supply chains and are unique to Australia. They compete for work on the national stage and any productivity gain is instrumental in retaining/growing job opportunities in Australia. Their ability to process & deliver competitively priced goods can have dramatic effects on other processors in other parts of NSW/Australia.

The larger of the two projects was subjected to evaluation by Transport for NSW and Council submitted the final application with a BCR of 14.8.

Community Engagement

Council has been quite public about these projects. Consultation with specific industry groups have been held and reported at meetings of business groups.

Financial Implications

Council has committed funds to these projects from its capital works program.

Business and Employment Development Committee – Wednesday 30 November 2016

Page 26

BE16.7 BioMarine 2016

HPERM Ref: D16/361871

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To provide feedback to the committee and Council regarding attendance at BioMarine 2016 in Oslo by industry representatives from Blue BioTech Shoalhaven, including Council’s Economic Development Manager.

Recommendation

Resolve that

i. The report of the Economic Development Manager on the attendance by representatives of Blue BioTech Shoalhaven to BioMarine 2016 in Oslo be accepted.

ii. Council congratulate Blue BioTech Shoalhaven on the initiative being shown to develop a new innovative industry sector based on aquatic biotechnology here in the Shoalhaven.

iii. The Economic Development Office submit an application to host a future BioMarine in Shoalhaven, if considered feasible to achieve a break even result.

Recommend to Council

i. That it adopt a “Small Business Lens” on the development of future policies and the renewal of existing policies as they fall due.

Options

1. As Recommended. This will acknowledge the progress of emerging industry in the Shoalhaven.

2. Committee suggest additional or alternate action.

Background

A delegation of 3 attended BioMarine 2016 held in Oslo from 19-21 October 2016. In total there were around 275 delegates from industry, academia, research institutions and government. The local representatives to attend were:

• Dr Pia Winberg, Director & Chief Scientist, Venus Shell Systems

• Ben Mellows, Director, Shoalhaven Health Co & Essence Group

• Greg Pullen, Economic Development Manager, Shoalhaven City Council

BioMarine is a movement focused on enhancing the blue economy on a global basis. And with the 8th BioMarine there is sufficient evidence by business and government that momentum has built to have government recognise the importance of the sector especially within those countries with larger sovereign marine borders – Portugal, Norway, Canada, Argentina, USA, France, UAE.

At the moment Australia fits into the dominant group of countries that does not fully understand the blue economy because “Primary Production” has a land based focus.

The key issue is that the blue economy is not purely about producing an agricultural outcome i.e. protein, fibre etc. but rather an agricultural raw product as an ingredient to help to produce new nutraceuticals, cosmetic products, or even cancer treatment drugs.

It is with this foundation that Blue BioTech Shoalhaven was formed in 2014 and the evolution into health care products, pharmaceuticals and other higher value commodities is now coming about.

Summary of BioMarine 2016 Introductory Session

• Oslo Stock Exchange

o Norway has the longest coastline in Europe. It has a strong fishing and aquaculture industry.

o The OSX is trying to grow investor appetite for the blue economy and were looking at precedents to allow easier access to financing, even for SMEs. Looking for start-ups from other countries to list on OSX.

• Nofima/Research Council of Norway

o 70% of globe is water – one continuous body

o Need to merge biology + technology

o Priority has to be turning research into strategies

o Need to attract graduates from other disciplines not just bio-sciences

o Need to better understand the marketplace

o Collaboration across technologies to expand the entire context

• AquaGen

o Produces eggs for the salmon farming industry

o Need to foster innovation, collaboration and be prepared to look at things differently

o BioMarine is a catalyst for change

o Preserving ocean eco-systems for eternity (and growth)

• Outcomes for session:

a) Different businesses in vertical chain must be supported

b) Turn research into business strategies and jobs

c) With the transition from oil and gas downturn (structural change) there is an opportunity to adapt technologies and people to marine biosciences

d) Traditional sectors are not assured in future - need ‘new” sectors to form part of solution – blue economy is part of the solution.

e) Opportunities in the ocean need to engage younger students to think in new ways.

Ministerial Session Key points

• Norway

o Major share of national growth comes from the sea

o 2015 – 20m tonnes of seaweed harvested

o Higher order products need to be developed

o Looking to use 100% of product – no waste

• Quebec/Canada

o Emphasis needs to be on pharmaceutical, aqua feeds, food + agricultural opportunities

• Argentina

o The “take, use and dispose” economy is not sustainable

o Economy is currently energy driven - changing to need more brainpower

o Changing towards green economy - sustainability + ecological

o There is a need for protein to feed the world by 2050 – must look to sea (majority of globe is blue – sustainability of oceans)

o Need to increase genetic research for better nutrition outcomes

o Looking to create “wealth out of knowledge” with 2 decades 15% of GDP from sea. Government to assist by Joint venturing – government + industry until private investment takes up the need.

• Portugal

o Looking to increase GDP coming from blue economy. (Currently 2.5%)

o Need to increase the knowledge base + ocean and its potential products.

o “Blue Fund” created by government

o Support innovative ideas

o Attract investment

o Good policy to approve aquaculture licences within 3 months

Highlight points from Workshop Sessions

• Developing new products

o Need for a better understanding of the correlations between algal products and health uses/needs to enhance potential for developing new products

o Medical/Pharma products need traceability of raw materials

o A market for the product is essential

o Working across industry disciplines is essential to develop products + rules

o Common standards apply – need do this from start

o There are complex regulatory regimes for registration of new compounds

• Regulatory Regimes for registration of new compounds

o GM Salmon approval in Canada took several years

o Industry needs to engage early in process

o Industry sectors (medical, pharmaceutical…) have standards that need to be met

o Good science & documentation required.

o Small business lens

• Fisheries Management

o Better management required of the by-catch & unused bio-mass

o Banks are adverse to projects where there are by-products or waste processing GM Salmon approved in Canada took several years

o Industry needs to engage early in process

o Industry sectors have standards

o Good science & documentation required

• Financing of BioMarine Industry

o The bank position (DNB) – bank is risk averse with start-ups but frequent funder to aquaculture

o Fund raising is required for future development of medical products for humans and animals and this forms a different risk profile

o Funding BioMarine industries is difficult with current investor profiles

• Marine Bacteria Technology

o Developers are looking to solutions from algae for

o Pesticide replacement for marine and animal applications

o Antibiotic development for marine and animal applications

Investment Pitches (by product developers)

• StemMatters (Portugal)

o Regenerative medicine technologies – cartilage repair, osteoarthritis management

o Investment thus far = 2.2m Euros

o Annual number of Arthroscopes = 500k in Europe; 400k in USA

• Oceanwell (Germany)

o Developer of Algae based skin care products

o Developing a wound healing compound

o Researching skin care products for cancer radiation treatments

• Omegatri (Norway)

o Have developed a tablet form of Omega 3

o Technology in drying material into a powder form to press into a tablet

o Replaces capsules which cannot be used by some client groups

The Blue BioTech Shoalhaven delegates were involved in a number of sessions as workshop facilitators, workshop panellists and had numerous meetings with product developers, investors, marketers etc. These meetings were undertaken on behalf of the wider industry mix of Blue BioTech and feedback is being provided to those members for follow up.

The overall impression coming out of BioMarine 2016 was that across the globe it was being realised that the business applications for aquatic biotechnology had moved forward, away from the mass biofuels and aquafeeds products to those addressing the medical, pharmaceutical and cosmetic benefits. The science is taking this industry away from primary production into the fields of health and nutrition, something that members of Blue BioTech realised a year or more ago.

At BioMarine 2016 information was shared and sought, however the protection of the competitive edge and IP advantages that have developed within Blue BioTech members were being carefully guarded. The vertical value chain approach that is the fundamental difference between Blue BioTech Shoalhaven and other cluster groups around the world is now attracting much interest. The fact that members of Blue BioTech Shoalhaven have product on the shelf in the health food and more general food ingredient markets was clearly the difference.

The Australian delegates came away clearly with the belief that Blue BioTech Shoalhaven as a group and as individual businesses have developed to be leaders in the product development field in only 2 years.

More details about Blue BioTech Shoalhaven can be found at www.bluebiotechshoalhaven.com.au with details of the 11 partners that form the network.

Organisational Feedback

The organisers of BioMarine are keen for Australia to be a venue for a future BioMarine. Rimouski City in Quebec will host BioMarine 2017. Shoalhaven has the facilities to host the event and 2018 or 2019 could be candidate years.

Information has been sought from the organisers for what is required to be a host in 2018 and initial discussions have been held with Events NSW for their support in preparing the necessary submission.

Community Engagement

Limited public information has been circulated but certain companies have been able to talk about research and product development as warranted.

The fact that both Council and the NSW Government have been supportive is openly promoted at presentations and in government submissions.

Under the Australia 21 think tank of the Federal Government, representatives from Blue BioTech were invited to attend the workshop on an Algal Roundtable.

Policy Implications

Blue BioTech and the work identified around the world clearly identifies that small entrepreneurial start-ups are key to innovative industrial development.

From the Canadian approach to Economic Development they have adopted a “small business lens” to all policy development and review. The focus is to consider that there is not a regulatory or business burden on innovative ideas could well be a step that should be adopted here in Shoalhaven.

Financial Implications

The costs associated with attending BioMarine 2016 were met by attending businesses, with the Economic Development Manager’s expenses being met from within the ED Budget.

The overall costs and benefits of Blue BioTech Shoalhaven will be subject of a future report to Council in early 2017.