knox economic development strategy 2008 – 2018 Council & Community: A Partnership in Progress contents Disclaimer The information contained herein is believed to be reliable and accurate. No responsibility or liability for any information, opinions or commentary contained herein, or for any consequence of its use, will be accepted by Knox City Council, or by any person involved in the preparation of its publication. © Knox City Council 2 knox economic development strategy 4 introduction 6 6 7 7 7 8 9 preface overview regional context strategy context how does council develop plans? knox vision 2025 community & council plan 2006–10 (2007 update) 10 strengths 10 competitive advantages & opportunities 12 12 14 14 14 14 15 challenges approach to economic development new dimensions of competition sources of competitiveness economic development & local government key issues specific challenges for the knox economy 16 strategic objectives, tasks & actions 38 implementation, monitoring & evaluation 39 implementation 39 monitoring and evaluation 40 41 42 43 44 45 46 47 48 49 50 economic profile summary of recent statistical indicators, city of knox population gross regional product business numbers economic diversity household projections labour market employment profile income distribution qualifications 3 Knox City Council’s vision for the City of Knox is of an internationally competitive, inclusive and dynamic economy. This vision is of a municipality which is a great place to live, a great place to do business, a place of skilled people and a place bustling with dynamic enterprise. To achieve this, the City must be: • Internationally competitive, as the City is competing to attract and retain skilled people and resources and to sell goods and services in overseas markets; introduction • Inclusive, because there are some in the community who are not participating in the economy or equitably gaining the benefits of economic activity and wealth creation; and • A dynamic economy capable of reacting to fast changing and unpredictable global conditions. The Knox Economic Development Strategy 2008-18 (EDS) is a ten-year economic planning instrument that includes strategies to assist the City develop as an economy, a skilled employment centre and key business centre. The primary objective of the EDS is to identify practical strategies to enhance economic development in the City of Knox, its employment base and community wellbeing. The EDS is aligned with the goals and objectives of Federal and Victorian governments. It compliments their policies and strategies and, more importantly, provides these other levels of government with a very effective and efficient means for the delivery of their strategies. For its part Council is cognisant of its limited resources and will be reliant on the establishment of effective partnerships. 4 knox economic development strategy The EDS identifies the means by which Council and the community will facilitate employment and economic growth in the City. It is structured into four parts. • Section 1 sets the strategic context for the City’s approach to economic development. • Sections 2, 3 and 4 outline the main economic development opportunities, strengths and challenges that will influence the nature and rate of the City’s economic growth over the coming decade. • Section 5 outlines practical strategies, tasks and actions that Council is committed to in achieving the goals of economic development. • Section 6 provides an economic profile of the City including detailed industry and economic projections and profiles. Sustainability principles have influenced the development of the EDS. While the aim of this Strategy is to provide a clear direction for the City’s economy, it is recognised that the goal of any economic development strategy is to deliver increased prosperity to current and future generations. Prosperity is most easily thought of in terms of social, environmental and economic objectives and, to be sustainable, a strategy must deliver against each of these. Overall, the EDS focuses on eleven key objectives and associated strategies, tasks and actions that have been selected as the most practical and effective ways by which they can be achieved. Paramount in the EDS is a realisation that while traditional factors of production are still important in regional economic growth, the intensification of knowledge as a key business input now plays a critical role in determining economic success. To this end, the strategy focuses on developing the relevant networks, systems and skills in the City of Knox necessary to attract and retain modern knowledge-based industries. The strategy has been thoroughly researched and provides a framework for the coordination of all City initiatives, either public or private to ultimately grow stable, high value local jobs – and to position the City of Knox as a place of choice to work, live and play. For further information on the Economic Development Strategy please contact Knox City Council’s Economic Development Unit on 03 9298 8511, email [email protected] or visit our websites www.knox.vic.gov.au; www.knoxbusinessdirect.com.au 5 overview Knox City Council recognises economic development as one of the most important factors in improving the quality of people’s lives and to help address significant issues such as social inclusion and lifelong learning. Local economic development relates to strategic activities undertaken by local authorities to address the challenges in maintaining economic prosperity, enabling business success and enhancing community wellbeing. preface 6 Knox City Council leads and/or significantly contributes to numerous economic development initiatives both within the City and across the region. The management of individual projects is carried out at the corporate level, in partnership with others, or at an individual service level. Such activities have far reaching implications for the economic stability of the City. Knox City Council takes a coordinated approach to inward investment and business development to maximise opportunities and outcomes. knox economic development strategy regional context Strategically located at a pivotal point in Melbourne’s Outer East, Knox is an established centre for manufacturing whilst being at the same time home to around 152,000 residents. It is a major economic force in the region with a gross regional product of $5,870.1 million in 2006/07. With around 60% of its resident workforce working outside of Knox, the local economy is closely linked to other municipalities in the region. In recent periods, key industries in Knox, in common with other areas of the region, have become more skills-intensive, partly as a response to globalisation and increased specialisation, particularly in manufacturing. This has also led to greater interaction across the region, e.g. in establishing supply links with other businesses and the establishment of relationships with specialist providers of technological expertise including Swinburne and Monash Universities. The continued outward expansion of Melbourne has also resulted in closer synergies with neighbouring areas. This is particularly so with municipalities to the south and west where some Knox businesses have relocated lesser value added processes to areas where land has been less expensive. With little land left for expansion in inner suburbs to the west of Knox, there is now a greater demand from businesses seeking greenfield sites relocating to the City. The Australian Synchrotron project has also stimulated greater interest in Knox as a site for new high tech industries. In terms of its geographic location, Knox is extremely well placed in a position that links the south and east of Melbourne with other areas of the city. This is reinforced by the Eastlink freeway, Australia’s largest urban infrastructure project comprising 40 kilometres of expressway which provides quick, efficient access to all areas of Melbourne including ports and airports. strategy context The Knox Economic Development Strategy 2008-18 aims to identify and respond to opportunities and challenges within the local economy in a sustainable manner. The EDS sits within a hierarchy of strategies prepared by Knox City Council, headed by Knox Vision 2025. how does council develop plans? Developing plans is an ongoing and complex process involving: • community engagement economic development strategy community health & well being strategy sustainable city strategy • research • collaboration between Council staff, Councillors and other stakeholders • consideration of many external factors including legislation and industry standards people & organisation excellence strategy long term financial strategy 7 knox vision 2025 The City of Knox’s long-term planning framework is based on the Knox Vision 2025 strategic document, which provides direction for improving the social, economic and environmental well being of the City. Vision 2025 describes the community’s hopes and aspirations for how Knox will look, feel and be like in the year 2025. Vision 2025 consists of seven key themes that have been articulated by the community for the community: • Healthy, Connected Communities • Culturally Rich and Active Communities • Dynamic Services and Facilities • Accessible Transport Choices • Sustainable Natural Environment • Balanced Quality Urban Development • A Prosperous, Modern Economy This document takes primary guidance from the Prosperous Modern Economy theme, within which eight elements have been identified as aspirations for 2025: 1. A global economy: Knox businesses are in tune with the global market and are exporting their products and services. They have a global reputation for innovation in emerging high technology and knowledge-based industries. 2. Leading edge, environmentally sustainable industry and technology: In partnership with the Swinburne University’s National Centre for Sustainability and Environmental Design, local industry, educational facilities and residents establish Knox as a centre of excellence for sustainability and energy efficiency. Industry that specialises in the design and production of sustainable and energy efficient products and services are nurtured. Residents and businesses are encouraged to adopt best practice in sustainability and energy efficiency. 3. Contemporary business opportunities: Contemporary businesses are attracted to and retained in Knox because the business and investment climate is highly regarded. Knox has established key industry clusters especially in the fields of advanced manufacturing and biotechnology that build on the Scoresby/Rowville Employment Precinct and Knox’s close proximity to the Australian Synchrotron. 8 4. Support for entrepreneurship: Entrepreneurship is recognised, valued and encouraged as a driver of social and economic growth. 5. Activity centres with a unique and valued identity and image: Local activity centres continue to develop their uniqueness as community hubs and provide a desirable and enhanced amenity for residents and traders. 6. Business precincts that are recognised nationally: Designed in consultation with industry, business precincts take into account business needs and provide the necessary infrastructure including access, which provides significant cost savings to industry. They continue to attract new investment and provide new employment opportunities for residents. 7. Employment opportunities for all: Younger people and mature age workers are strongly represented across the full range of industries. Employees of local businesses are attracted to living in Knox. Numerous local education, trade and apprenticeship opportunities provide people with contemporary skills within the local community. The resident labour force is fully utilised and people are fully equipped with the skills that local businesses require. The experience and skills of those aged over 55 is highly valued and they are gainfully employed – often serving as mentors. 8. Retail and industrial business attraction: Retail and industrial businesses are proud of their physical setting. An improved business mix is a result of wellplanned infrastructure and planning, including high quality support services. knox economic development strategy community & council plan 2006–10 (2007 update) Council continually develops its long term strategy documents and action plans, which are a blueprint for community sustainability and for Council as an organisation. The four-year Community & Council Plan 2006-10 was the start of the process to convert aspirations and strategy into planned work activities, and identified the following key objective: ‘To encourage leading edge, sustainable, economic development.’ This objective for economic wellbeing is an integral part of the Community and Council Plan and has been adopted as the foundation for this EDS in response to the following trends: • Changing economic opportunities in local shopping precincts. • Changing business needs in light of new and emerging global trends. Council has identified nine major strategic economic development initiatives that will contribute to the Prosperous Modern Economy theme. These are: 1. Promote Knox as a centre of excellence for sustainability, energy and water efficiency by nurturing business that specialise in the research, design and production of sustainable energy, products and services. 2. Support the development of the Scoresby/ Rowville Employment Precinct by encouraging high technology research and development. 3. Maximise economic development opportunities arising from Eastlink. 4. Attract strategic private sector investment into activity centres to build on the place management approach. 5. Promote the physical setting of Knox’s commercial and industrial areas. 6. Promote networking and training opportunities to local businesses and community based organisations. • Competition from regional shopping centres and business hubs in nearby municipalities. 7. Promote local employment opportunities by encouraging the development and growth of small to medium enterprises. • Completion of Eastlink and connection between Knox business hubs and other parts of metropolitan Melbourne. 8. Advocate to government to assist the training and employment of local young people to help facilitate their employment into local businesses. • The emerging South-East Melbourne economy (Mitcham to Frankston) along the Eastlink route. 9. Advocate to link public and private transport to industrial and employment precincts. • The population increasingly wants to live and work locally. • The impact of growing e-business. 9 competitive advantages & opportunities From the City of Knox Economic Profile,(refer Section 6) the following key strengths and competitive advantages have been identified: • A greater industry concentration than the national economy in the Wholesale Trade, Manufacturing and Retail Trade sectors; strengths • A balance of sectoral employment between secondary (goods-based), tertiary (commerce-based) and quaternary (information and finance-based) industries; • In relation to Melbourne and Victoria, Knox has a comparatively high average industry turnover, particularly in the Wholesale Trade, Manufacturing, Finance & Insurance and Retail Trade sectors; • Low unemployment rate indicating high current availability of jobs for City residents; and • Comparatively high levels of household and family incomes when compared to averages for Melbourne and Victoria as a whole. 10 knox economic development strategy As wage and salary, employment and unemployment statistics are comprehensive measures of the local economy’s performance; this demonstrates that the City of Knox enjoys a solid economic base. Further, the City has significant locational and infrastructure assets, including: • Proximity/access to Eastlink, a $2.5 billion freeway linking a large area of Melbourne’s eastern and southeastern suburbs and part of the Metropolitan Ring Road project; The local economy is steadily growing more diverse, with Knox’s industry mix ensuring robust growth in periods of strong economic growth and greater stability when the economy slows. Moreover, the emerging health care and education sectors, connected to the City’s institutional links, are not as volatile during downturns as secondary and commerce-based industries. In addition to its sectoral diversity, the City also has a latent reserve of intellectual capital and innovation capacity that will provide new responses and attract new revenue streams even in more challenging economic times. • Technologically advanced industries, including nanotechnology and biotechnology based investments; • Integrated supply channels; • High quality business precincts; • Quality greenfield sites; • High quality natural environment; • National Centre for Sustainability, Swinburne University of Technology; • Swinburne University and TAFE; • Proximity to and partnerships with Monash University; and • Proximity to the Australian synchrotron project. 11 approach to economic development challenges the principal goal of the Knox Economic Development Strategy 2008-18 is to improve liveability and wellbeing in the City through economic growth that creates high quality jobs, generates wealth and investment, and helps ensure the City’s long term fiscal health. When implemented, the strategic directions and actions taken will enhance the competitive position of individuals in the Knox labour force, local firms, export clusters, the City, and the region as a whole, by building on core strengths, addressing barriers to growth, and mobilising collective resources. It aims to create more numerous and high quality employment opportunities for local residents. The state of the global (and consequently local) economy, the nature of competitiveness, the role of cities, technology and business organisations have all undergone significant changes over the last decade. Council, in response to these events, has accepted that it must adopt and adapt its own thinking, models and approaches to economic development to position Knox and its strategy firmly within the context of the emerging realities of global competition, a knowledge economy, regional cities and technological change. Council will increasingly be required to make decisions and investments on the basis of its ability to advance the City of Knox’s unique local attributes in a rapidly changing global marketplace, fuelled by information, communication and technology. 12 knox economic development strategy Economic Development: Traditional and Contemporary Approaches Objectives Traditional (Basic) Approach Contemporary (Added Value) Approach Attract jobs and assessment High quality jobs Globally-competitive, high value-added companies Nature of Competition Lowest cost for standard mass produced product Flexibility, responsiveness, innovation, customisation Competitors Regional, national Global Competitive Assets Low cost land Skilled labour force Low cost labour Regional institutions Buildings Quality of life Energy Research & development Hard infrastructure Technology Access to capital Global connectivity Business models Single, large integrated factory/office, regional scope Networks, clusters, strategic alliances, global mandate Economic Development Strategies Business retention and attraction Build specialised economic foundations Move up the value chain Comprehensive economic strategy Actions Tax incentives, marketing Skills development Innovation Entrepreneurship Supportive business climate Partnerships 13 new dimensions of competition economic development & local government The nature of competition in the global knowledge economy is significantly different from that of the industrial era. In a stable, mass production-oriented economy, the company that was able to produce a standard product for the lowest cost generally held the competitive advantage. This was achieved through economies of scale obtained by using routine processes to make virtually identical products. Cost factors such as transportation costs (to market and to raw materials); energy and raw material production costs; capital costs of plant, equipment and infrastructure; and labour costs were paramount. Cities which for geographical, historical or other reasons had a cost advantage along any of these dimensions possessed a strong competitive advantage. Within the context of a local economy, the capacity to create wealth for local residents occurs through the attraction of new investment, bringing new wealth into the area or by using local resources such as labour and land more productively (thus creating a higher return per unit of input). In the modern economy, while cost remains a key consideration, competition takes place along a number of different dimensions: • Flexibility • Timeliness • Access to information and knowledge • Ability to innovate sources of competitiveness The sources from which competitiveness is derived in the global knowledge economy are also different than those of a traditional economy, and include: • Intellectual capital/skilled labour; • Quality of life; • Economic structure; • Infrastructure; • Financing/funding; • Costs of doing business; • Networking; • Local institutions; and • Unity of vision. 14 Research indicates the most common barriers to growth are: • Availability of land; • Lack of skilled labour; • High land costs; • Lack of capital and funding; • Resident opposition; • Limited number of major employers; and • Traffic congestion. key issues • In the interests of achieving best value it should be recognised that whilst individual programs may apply to specific areas they need to be appraised on the basis of what they provide to the municipality as a whole. • Many programs will be most effective when coordinated across an organisation. For example: sales and marketing; education and training; cluster strategies; networking and partnerships. • Awareness of economic development programs and initiatives need to be communicated to all organisations in Knox, interested parties and stakeholders. • As an expense to the community, economic development initiatives must produce adequate and demonstrable public benefits to justify the subsidy (how programs are to be evaluated needs to be established at the outset). • Leadership is another important issue for local economic development programs. The ability to attract good leadership to pull local efforts together and get things moving needs to be a high priority. knox economic development strategy • Linkages and partnerships with higher education are becoming increasingly important in the implementation of economic development programs and leadership skills programs. In its application, Economic Development programs should: • Focus on providing employment and fiscal benefits to local residents, while preserving the quality of life; • Include strategies that are focussed on business attraction, business retention, new business start-ups, high technology and land whose usage raises special concerns; • Be targeted on businesses that are most likely to provide significant employment and fiscal benefits (which includes businesses that are willing to be involved with local training and jobs programs); • Include customised training programs that can effectively service the needs of both the business community and the unemployed; • Facilitate the provision of basic information that will help increase business productivity and survival; and • Engage private businesses, educational institutions and organisations as partners in building the local community. specific challenges for the knox economy Analysis of the Knox economy (refer to Section 6; Knox Economic Profile for essential data) suggests that the City is presented with a number of challenges to achieving significant economic development, namely: • Lower forecast population and household growth than the wider Melbourne metropolitan region, which will influence local spending, revenue generation and the size of the local labour force, potentially forcing the import of labour from neighbouring areas; • An ageing population and resident workforce; • A concentration of industry/employment in the Wholesale Trade, Manufacturing and Retail Trade sectors, creating a less diverse local economy subject to downturns in these particular industries; • Limited availability of land for greenfields site developments and need for redevelopment of older brownfield industrial areas to meet the requirements of modern industry; • A tight labour market, signalled by a comparatively low unemployment level amongst City residents, leading to a reduced surplus of labour for industry/ economic expansion, again leading to a necessity to import skills and labour; • A comparatively low ratio of jobs to resident labour force, leading to the net export of jobs/workers to employment areas outside the City and lower rates of skills retention and resident expenditure; • Lower proportion of highly skilled labour than the Melbourne metropolitan region, making transition to information-based industries more difficult; • Low level of post secondary education facilities within the municipality including absence of University level facility, • Poor provision of high frequency public transport services; in particular a lack of fixed rail services to the southern areas and • Access to high quality public transport facilities to reduce reliance on motor vehicles. To meet these challenges, the goal of economic development in the City of Knox will be to focus on key factors that will facilitate local economic and industry development/growth and employment, including: • Import replacement by local production and barriers preventing this; • Higher degree of value-adding to locally produced goods and services; • Develop local resources and strengths; • Maximise employment generating opportunities, including the prioritisation of the designation and development of appropriate, well-located sites for employment purposes; • Clustering and linkages for support and efficiencies; • Capacity to tap innovation and assistance programs/ marketing, etc; • Greater understanding of local industry’s competitive advantage in the context of national and global trade; and • Mature age workforce participation. Meeting these challenges is also a matter for State and Federal government. To effectively implement this Strategy and achieve its objectives relevant State and Federal Government support is critical. 15 The implementation plan contained in the following section specifies how Council will work to achieve the economic development outcomes. It outlines how Council proposes to monitor the actions. It also identifies the services and partners primarily responsible for implementing the plan. The implementation plan also encapsulates policy links between the EDS outcomes and Council’s corporate objectives and priorities. The implementation plan is organised around key objectives of the EDS which have been identified by Knox Council Economic Development Committee in consideration of Council and community Knox Vision 2025 strategic document, specifically: strategic objectives, tasks & actions 16 Objective 1 Development of Knox Central Principal Activity Centre Objective 2 Establishment of High Tech Learning Centres Objective 3 Development of the Scoresby/Rowville Employment Precinct Objective 4 Establishment of Strong, Sustainable Energy Efficient Industry Clusters Objective 5 Strong Secondary, Tertiary and Industry Linkages Providing for the Needs of High Tech Industries (support services, technical backup and marketing). knox economic development strategy Objective 6 Fully Developed and highly functional Major, Neighbourhood and Local Activity Centres Objective 7 A More Balanced Business Mix, including More Business Support Services and Tertiary Industries Objective 8 A Strong Knox-wide Industry Network Promoting Knox Products and Services Nationally and Internationally Objective 9 Establishment of a Centre for Entrepreneurial Development Integrating Education, New Start-ups and Business Incubators Objective 10 Redevelopment of the Bayswater/ Bayswater North Industrial Precinct Objective 11 Availability of World-Competitive Infrastructure in Transport, Telecommunications and Supporting Services Whilst there is a level of interdependence each of these Objectives will be achieved within the context of a range of individual strategies and actions. These are set out in the following section as follows: Objective Strategies Tasks & Actions Timeline Start Timeline Finish Outcome 17 objective 1: development of the knox central principal activity centre Strategy 1.1: Rembrandts site (Burwood Hwy, Wantirna South) redeveloped with a mix of commercial, accommodation and residential uses Tasks & Actions Timeline Start Timeline Finish Outcome 1.1.1 Work with landowner/developer to facilitate redevelopment and rezoning of the site in accordance with Knox Central Urban Design Framework objectives Ongoing September 2010 Rezoning completed and commitments secured for 50% of the site September 2009 Infrastructure needs identified and committed to or works underway 1.1.2 Work with relevant State Government agencies August 2008 to ensure appropriate supporting infrastructure (e.g. traffic signals, telecommunications, power) are included/ provided in any redevelopment plans. Strategy 1.2: Former Department of Primary Industries site redeveloped as a mixed use precinct Tasks & Actions Timeline Start Timeline Finish Outcome 1.2.1 Work with the State Government to finalise a development master plan for the site in accordance with the objectives of the Knox Central Urban Design Framework. Ongoing December 2009 Master Plan adopted by Council 1.2.2 In liaison with relevant authorities facilitate the Ongoing necessary Planning Scheme Amendment to put in place the required planning controls to allow the site to be redeveloped in accordance with an approved master plan December 2009 Amendment in place Ongoing Developers/interested parties identified and an program in place for engagement 1.2.3 Contact and establish positive relationships with prospective developers/purchasers (where possible identify potential developers and work with them to prepare development outcomes) December 2009 Strategy 1.3: Planning controls in place to encourage investment in the redevelopment of potential sites 18 Tasks & Actions Timeline Start Timeline Finish Outcome 1.3.1 Identify priority redevelopment sites and associated preferred uses in accordance with the Knox Central Urban Design Framework. April 2008 September 2008 Sites identified an priority listed 1.3.2 Implement in a prioritised manner the necessary August 2008 planning controls to encourage redevelopment of potential sites. July 2009 Planning controls schedule in place 1.3.3 Establish a database of available sites for potential investors/developers December 2008 Established August 2008 knox economic development strategy Strategy 1.4: Secure at least 5 landmark tenancies Tasks & Actions Timeline Start Timeline Finish Outcome 1.4.1 In partnership with owners/developers identify and market sites suitable for large scale commercial uses. November 2008 December 2012 Sites committed to by investors/developers 1.4.2 Prepare specific investment attraction packs for November each site – planning provisions; available infrastructure; 2008 local business environment, community resources, etc. June 2009 In place 1.4.3 Work in collaboration with the State Government Ongoing to attract major businesses to locate in Knox Central. Ongoing Demonstrated program of successful contacts and meetings Strategy 1.5: Provision of major conference & accommodation facilities Tasks & Actions Timeline Start Timeline Finish Outcome 1.5.1 Undertake a needs analysis for major accommodation and conference facilities including the identification of potential sites. Involve State and regional tourism authorities as part of research. February 2008 August 2008 Research completed to schedule 1.5.2 Prepare marketing, information and incentive packages to attract investors/developers. September 2008 January 2009 Prepared and available 1.5.3 Liaise with industry/major operators/ investors developers Ongoing Ongoing Contacts identified and schedule of regular meetings/contact in place Ongoing Promotion plan adopted, being implemented with annual review for effectiveness and recognition 1.5.4 Develop and implement an active promotion plan August 2008 Strategy 1.6: Long term planning for a civic precinct Tasks & Actions Timeline Start Timeline Finish Outcome 1.6.1 Develop a long term civic precinct master plan Ongoing December 2008 Adopted 1.6.2 Work with the owners of Knox City Shopping Centre to encourage development in accordance with the Knox Central Urban Design Framework Ongoing December 2008 Demonstrated positive and active engagement 1.6.3 Identify appropriate implementation mechanisms Ongoing December 2008 Agreed and formalised 19 objective 2: establishment of high tech learning centres Strategy 2.1: To prepare and implement a program to encourage industry specific skills development at secondary school and tertiary education levels Tasks & Actions Timeline Start Timeline Finish Outcome 2.1.1 Review current and anticipated skills shortages at regional (geographic) and industry levels; to be undertaken every two years Ongoing December 2007 Achieved and ongoing to be reviewed commitment for reviews every two years 2.1.2 Identify new and emerging industries and associated skills profiles needed to match the needs of these industries December 2007 August 2008 Formal analysis document prepared 2.1.3 Establish alliances with education providers to encourage curriculum development and linkages with industry: June 2008 May 2009 Key stakeholders identified, contacted and ongoing basis for engagement established • Knox secondary schools • Universities & TAFE (incl Monash, Synchrotron & Swinburne) • Government departments Strategy 2.2: Advocate for the development of facilities for mature age learning and programs to match industry needs 20 Tasks & Actions Timeline Start Timeline Finish Outcome 2.2.1 Undertake a study to assess needs and opportunities October 2008 February 2009 + ongoing Study completed and documented 2.2.2 Identify appropriate agencies for the delivery of programs August 2008 Ongoing Listed and evaluated 2.2.3 Undertake a lead agency role in the formation of partnerships, to act as an advocate and to provide assistance to partners with the preparation of funding submissions September 2008 Ongoing Critical partners identifie knox economic development strategy Strategy 2.3: Encourage industry to be actively involved in training and skills development programs and placement of trainees Tasks & Actions Timeline Start Timeline Finish Outcome 2.3.1 Undertake a series of industry consultation sessions to create an awareness and appreciation of the potential industry benefits of these programs Ongoing 2 per year Programs prepared –content and speakers and format(s) established 2.3.2 Organise industry visits and tours for education providers to ensure they are kept up to date with latest developments, needs and issues Ongoing Ongoing Format established and program in operation 2.3.3 Compile seminar program joining together education providers and key industry representatives July 2008 July 2008 Format and arrangements in place for 2 seminars pa Strategy 2.4: University level teaching facility located within the city Tasks & Actions Timeline Start Timeline Finish Outcome 2.4.1 Work with university providers to determine needed preconditions and prepare project plans to realise university level teaching facilities July 2009 October 2009 – June/2010 Contact established with relevant areas in universities. Plans prepared and being initiated 21 objective 3: scoresby/rowville employment precinct – at least 50 new businesses established strong, sustainable energy efficient industry clusters Strategy 3.1: Amend existing planning restrictions on office floorspace development Tasks & Actions Timeline Start Timeline Finish Outcome 3.1.1 Undertake a Planning Scheme amendment to resolve current restrictions on office floorspace development Ongoing June 2008 Adopted 3.1.2 Assess development plan applications for Caribbean Business Park in accordance with Planning Scheme provisions December 2008 June 2012 Ongoing 3.1.3 Develop a marketing and investment attraction strategy in partnership with major stakeholders July 2008 March 2009 Prepared and adopted Strategy 3.2: Stamford Park fully developed as a regional community facility Tasks & Actions Timeline Start Timeline Finish Outcome 3.2.1 Finalise and implement development plan for Stamford Park to establish it as a major multi use community facility July 2008 Ongoing Prepared and adopted Strategy 3.3: Facilitation by Council of investment attraction programs through strategic alliances & partnerships with business & government 22 Tasks & Actions Timeline Start Timeline Finish Outcome 3.3.1 Refer comment 3.1.3 re investment attraction toolkit. June 2008 Ongoing In place by December 2008 3.3.2 Prepare an investment attraction strategy; which August 2008 will also identify target markets/industries , their needs and requirements; key response generators Ongoing In Place by December 2008 3.3.3 Gather market intelligence to ensure marketing targets are current and relevant and to adjust as required to suit changing operating environments Ongoing Ongoing Format and process identified 3.3.4 Identify key stakeholder and network opportunities Ongoing Ongoing Completed 3.3.5 Building Knox as a ‘front of mind awareness’ municipality for organisations and investors when considering relocation and sites for high tech and high quality and knowledge based industry Ongoing Ongoing Concepts adopted, materials prepared and ongoing implementation from December 2008–9 3.3.6 Work with research facilities for commercialisation of opportunities generated from research programs – e.g. linking research and industry through annual showcase Ongoing Ongoing Ongoing objective 4: establishment of strong, sustainable energy efficient industry clusters Strategy 4.1: Identify opportunities to establish a business incubator specialising in sustainable technologies in association with Swinburne University’s National Centre for Sustainable Enterprise and Development Tasks & Actions Timeline Start Timeline Finish Outcome 4.1.1 Undertake a feasibility analysis and identify required resources, recommendations and timelines for introduction July 2008 July 2009 Analysis satisfactorily completed 4.1.2 Through a formation of alliances gain support of key stakeholders. September 2009 March 2010 Stakeholders identified and commitments in place 4.1.3 Establishment of Sustainable Technologies March 2011 Incubator Board to oversee planning and development – comprising major stakeholders Ongoing Established in line with adopted timelines 4.1.4 Identify and secure funding for works associated with establishment of the incubator and ongoing commitment for funding of is operations March 2011 Funding sources identified and agreement in place March 2010 Strategy 4.2: Investment attraction program to attract businesses with sustainable technologies 24 Tasks & Actions Timeline Start Timeline Finish Outcome 4.2.1 Refer 1.5.3; 3.1.1 to revise and adapt for sustainable technologies March 2011 Ongoing Strategies and methodologies adopted and in operation knox economic development strategy Strategy 4.3: Establish a Business Institute for Sustainable Investment and Practice (BISIP), in association with the Swinburne University National Centre for Sustainable Enterprise and Development Tasks & Actions Timeline Start Timeline Finish Outcome 4.3.1 Liaison with potential participants and Ongoing partnerships to generate interest and gather support for the project Ongoing Potential partners identified, support secured and program being implemented 4.3.2 Identify commercialisation and potential commercial applications for new technologies and innovation March 2010 August 2009 plus ongoing Methodologies identified and mechanisms adopted 4.3.3 Secure a high profile patron/spokesperson as head of the BISIP September 2009 March 2010 Achieved 4.3.4 Promotion of incubator program and linking to research/industry/finance sectors as support for incubator innovation and businesses July 2010 Ongoing Secure representative form these sectors on an Incubator advisory panel August 2010 Signed 4.3.5 Memorandum Of Understanding with significant July 2010 stakeholders as a basis for ongoing collaboration in the provision of support and commitment 4.3.6 Secure funding commitments for preparation of a business plan and operations of the BISIP (Business plan preparation to be responsibility of BISIP) December 2010 Ongoing 4.3.7 Implementation of Business Incubator and BISIP Ongoing projects Ongoing Secured Projects identified and committed Strategy 4.4: Facilitation between business and government to access grant funding, venture capital, etc Tasks & Actions Timeline Start Timeline Finish Outcome 4.4.1 Refer 4.1.3; 4.3.1 as a function of incubator board and strategies for commercialisation of innovation As referred Ongoing Ongoing 25 objective 5: strong secondary, tertiary & industry links providing for the needs of high tech industries (support services, technical backup and marketing) Strategy 5.1: To ensure that education providers are aware of the specific and wider needs of existing and potential Knox based high tech and knowledge based enterprises Tasks & Actions Timeline Start Timeline Finish Outcome 5.1.1 Building on the results of research into industry skills profiles and needs together with research into the structure and composition of Knox’ industrial sector determine the level of industry interactivity and the need for support services August 2008 February 2009 Program adopted and in operation Strategy 5.2: Facilitate linkages between industry and education to identify skills required to meet local employment requirements Tasks & Actions Timeline Start Timeline Finish 5.2.1 Building on alliances with education providers established under 2.1.3 and industry consultation programs under 2.3.1 and 2.3.2 to establish a formal consultative committee to ensure regular contact and ongoing communication between the two sectors. December 2008 Ongoing Outcome Program adopted and in place Strategy 5.3: Strategic alliances with all tiers of government to ensure there is across government understanding and support for the needs of Knox industry and education providers in adopting a cooperative approach to skills building and development 26 Tasks & Actions Timeline Start Timeline Finish Outcome 5.3.1 To identify and make contact with key Government departments and agencies. Arrange Individual meetings and at least one group meeting at this level each year Ongoing Ongoing All critical parties identified and cooperation secured with ongoing programs and projects knox economic development strategy objective 6: fully developed and functioning major, neighbourhood & local activity centres Strategy 6.1: Total implementation of Bayswater place management program Tasks & Actions Timeline Start Timeline Finish Outcome 6.1.1 Ongoing Ongoing Satisfactory progress in line with adopted schedule Refer to Place Management program Strategy 6.2: Implement Boronia Place Management Program Tasks & Actions Timeline Start Timeline Finish Outcome 6.1.1 Ongoing Ongoing Satisfactory progress in line with adopted schedule Refer to Place Management program Strategy 6.3: Implementation of the Mountain Gate Place Management Program Tasks & Actions Timeline Start Timeline Finish Outcome 6.1.1 Ongoing Ongoing Satisfactory progress in line with adopted schedule Refer to Place Management program Strategy 6.4: Implementation of the Stud Park Structure Plan Tasks & Actions Timeline Start Timeline Finish Outcome 6.1.1 Ongoing Ongoing Satisfactory progress in line with adopted schedule Refer to Place Management program Strategy 6.5: Implementation of the Place Management Program of all Neighbourhood activity centres (including Cnr Boronia and Scorseby Rd, Boronia; Glenfern Rd, Ferntree Gully; 598-624 Mountian Highway Bayswater; 67-79 Anne Road, Knoxfield, Manuka Drive, FerntreeGully;Cnr Coleman and Lewis Rd, Wantirna) Tasks & Actions Timeline Start Timeline Finish Outcome 6.1.1 Ongoing Ongoing Satisfactory progress in line with adopted schedule Refer to Place Management program 27 objective 7: a more balanced business mix, including more business support services & tertiary industries Strategy 7.1: To ensure planning controls are in place to encourage investment in potential sites and precincts Tasks & Actions Timeline Start 7.1.1 Identify priority sites and precincts in conjunction Ongoing with other major projects and programs e.g. Knox Central; Scoresby/Rowville employment precinct and place management Timeline Finish Outcome Refer other programs Identified planning control changes identified and in line with other projects in place Strategy 7.2: Refer to strategies for Objective 3 re planning controls, investment attraction and formation of local alliances and strategic partnerships Tasks & Actions Timeline Start Timeline Finish Outcome 7.2.1 Build on investment attraction and marketing programs being developed in relation to other objectives Ongoing As referred Programs in place Strategy 7.3: Refer to strategies for Objective 10, in relation to Bayswater brownfields sites redevelopment as initial focus for specific brownfields redevelopment Tasks & Actions Timeline Start Timeline Finish Outcome 7.3.1 Apply programs and concepts developed as part of Objective 10 Bayswater Industrial precinct redevelopment strategies and actions Ongoing As referred Implementation of strategies underway Strategy 7.4: To develop a more integrated and balanced local economy 28 Tasks & Actions Timeline Start Timeline Finish Outcome 7.4.1 Undertake a detailed analysis of current Knox industry structure (complementary to skills profile) July 2008 December 2008 Completed 7.4.2 Refer to sections 2.1.1 and 2.1.2 (review of current November 2008 skills profile and needs of emerging industries and new technologies application) for skills analysis and needs together with current skills profile of Knox residents Completed 7.4.3 Identify priority areas. Base this not on highest November 2008 priorities but for this exercise on ease of implementation (priority areas dealt with under precinct and incubator development) In place knox economic development strategy Strategy 7.5: Preparation of marketing strategy Tasks & Actions Timeline Start Timeline Finish Outcome 7.5.1 Identify range of actions and materials needed to November 2008 November 2008 Formalised and adopted assist and guide achievement of goals. Strategy 7.6: Introduction of investment attraction programs Tasks & Actions Timeline Start 7.6.1 Refer to 1.5.3; 3.1.3 in relation to Knox Central and June 2008 Scoresby/Rowville Employment Precinct and modify as appropriate Timeline Finish Outcome April 2009 Programs adopted and in place Strategy 7.7: Council facilitated business education training programs Tasks & Actions Timeline Start Timeline Finish Outcome 7.7.1 Education and training programs represent a major commitment as part of Economic Development responsibilities to grow local businesses through skills development and technology transfer. This program involves: Ongoing Ongoing Annual programs undertaken successfully in accordance with planned annual schedules • Needs analysis • Securing funding/program grants • Planning and marketing (database maintenance and management ) 29 objective 8: a strong knox-wide industry network for national and international promotion of knox products & service facilities Strategy 8.1: Establishment of ongoing strategic alliances with major stakeholders including, industry, State and Federal Governments, tertiary institutions etc Tasks & Actions Timeline Start Timeline Finish Outcome 8.1.1 Identify and rank stakeholder and principal alliance targets (individuals, companies, government agencies and organisations) July 2008 November 2008 Completed 8.1.2 Organise annual schedules for contact and June 2008 visitation (includes events and functions such as Mayor’s Business Lunch) September 2008 Completed 8.1.3 Identify key interests of alliance partners and October 2008 introduce regular round of contact/contact strategies (need not be in person or one-to-one. Letters/ publications/phone calls can be used where appropriate for maximum efficiencies) Ongoing Project plans adopted and being implemented accordingly Strategy 8.2: Facilitation of exporting, import replacement supply chain channels Tasks & Actions 30 Timeline Start Timeline Finish Outcome 8.2.1 Assessment of industry capabilities – use existing October 2008 data, e.g. information from Department of Innovation, Industry and Regional Development (DIIRD); Austrade; AusIndustry; Industries Capability Network Review every 2 years Completed 8.2.2 Identify areas (and potential areas) of comparative and absolute advantage and niche market opportunities February 2009 July 2009 Completed 8.2.3 Establish an alternate year global trade market (this should be done on a semi regional basis in association with a number of agencies including Austrade, AusIndustry and DIIRD) May 2009 Alternate years Planning for event completed 8.2.4 Build alliances between companies and groups of companies to establish a network designed to take advantage of cooperative tendering opportunities (e.g. major defence industry contracts) Ongoing Ongoing Networking and formal linkages methodologies established knox economic development strategy Strategy 8.3: Facilitation of secondary/tertiary/mature age training linkages Tasks & Actions Timeline Start Timeline Finish Outcome 8.3.1 Establish an online skills data base and employment opportunities through www. knoxbusinessdirect.com.au July 2009 December 2009 Project in operation 8.3.2 Secure funding/partnerships for ongoing operations perhaps in association with a provider May 2009 July 2009 plus ongoing 8.3.3 Employment and Careers Expo: support for existing programs to build into a major event September 2009 Annually One major partner agreement in place Arrangements in place and supported by potential participants Strategy 8.4: Gathering and distribution of market intelligence and trade opportunities, includes preparation and maintenance of a Knox industry capability database Tasks & Actions Timeline Start Timeline Finish Outcome 8.4.1 Attendance at industry development and trade opportunity seminars conducted by government and private sector agencies; need to link in with identified areas of interest and opportunity. Ongoing Ongoing Report on attendance 8.4.2 Refer 8.2.1; 8.2.2 on industry capabilities and areas of natural/competitive advantage Ongoing Ongoing Identified and action plan prepared 8.4.3 Distribute information online through www. Ongoing knoxbusinessdirect.com.au ; email (where appropriate); Knox Business Life; seminars and workshops Ongoing Achieved (monitoring feedback) Strategy 8.5: Development of a strategy to build recognition and Knox ‘brand’ awareness Tasks & Actions Timeline Start Timeline Finish Outcome 8.5.1 Preparation of a marketing and branding plan to: Ongoing Ongoing with Branding concepts in place by March 2009 Key branding concepts identified by March 2009 and being applied. Need for annual tests as to brand awareness, • Raise profile on Knox in external (state and national) economic development forums. Attendance and active participation at seminars; workshops etc. • Define the image and shape strategies around the promotion of Knox as a progressive business friendly municipality 8.5.2 Selective sponsorships and participation in trade Ongoing and business development events In place – Provide annual list of events etc. 8.5.3 Develop display materials. Development of graphics and styles that can be used (subject to authorisation) by private organisations. Materials review completed by November in each yea Need for annual review (tie in with brand awareness) 31 objective 9: establishment of a centre for entrepreneurial development integrating education, start ups & business incubator Strategy 9.1: Refer to Objective number 4. relating to specialised sustainable technologies business incubator Tasks & Actions Timeline Start Timeline Finish Outcome 9.1.1 Incorporated in actions referred to in Objective 4 but with direction to entrepreneurial development: June 2009 June 2011 All phases of work completed to schedule • Feasibility analysis • Identify critical partners • Preparation of business case • Identification of funding needs and sources of funding Strategy 9.2: Establish alliances with Swinburne University, State and Federal Government agencies Tasks & Actions Timeline Start Timeline Finish Outcome 9.2.1 Organise individual meetings with key stakeholders to gain support. August 2009 March 2009 Achieved with either formal or informal cooperative agreements in place 9.2.2 Organise workshop to consolidate support and commitments June 2009 August 2009 Successfully completed Outcome Strategy 9.3: Conduct an independent needs analysis for home based businesses, identifying their needs 32 Tasks & Actions Timeline Start Timeline Finish 9.3.1 Undertake an analysis of studies undertaken in other municipalities to provide guidance and understanding of useful methodologies October 2008 December 2008 Completed 9.3.2 Secure funding for independent survey of home based businesses December 2008 March 2009 Grant of sponsorship funding secured 9.3.3 Prepare information kit for home based businesses April 2009 July 2009 Completed 9.3.4 Establish a business network for Knox home based businesses July 2009 January 2010 In place with min 50 members and active executive 9.3.5 Provide specialised programs for home based businesses Ongoing Ongoing In place knox economic development strategy Strategy 9.4: Encourage entrepreneurial educational programs in secondary schools Tasks & Actions Timeline Start Timeline Finish Outcome 9.4.1 Establish alliances with Knox schools and other education providers to introduce entrepreneurial skills development programs into secondary and post secondary education programs March 2009 February 2011 plus ongoing Formal program with recognised outcomes in place 9.4.2 Provide award/recognition/scholarship to encourage entrepreneurial initiatives in schools and for young people. Link with industry group(s) such as Australian Industry Group (AIG); Australian Institute of Management (AIM) for sponsorship and support February 2010 February 2010 plus ongoing In place 9.4.3 Investigate potential for major entrepreneurial event (e.g. Camp Enterprise or similar with a major sponsor) July 2009 February 2010 Assessment completed 9.4.4 Establish relationship with Young Achievement Australia organisation in working with schools on entrepreneurial development programs Ongoing Ongoing In place Strategy 9.5: Establish programs to encourage leadership in small business Tasks & Actions Timeline Start Timeline Finish Outcome 9.5.1 Work with Small Business Counselling Service (SBCS) and Victorian Business Centre (VBC) to identify programs and to secure funding on an ongoing basis Ongoing Ongoing Specific programs prepared and arrangements in place 9.5.2 Establish an annual program to recognise February 2009 achievement in small business : publicise (e.g. Knox Gold Star Achievement); civic recognition awards, etc September 2009 In place plus ongoing 33 objective 10: redevelopment of the bayswater/bayswater north industrial land precinct Strategy 10.1: To identify potential for redevelopment of ‘brownfield sites’ in the Bayswater/Bayswater North Industrial precinct Tasks & Actions Timeline Start Timeline Finish Outcome 10.1.1 Undertake an internal review of previous studies July 2008 and planning documents to identify and evaluate potential outcomes and priority actions December 2008 Completed 10.1.2 Identify relevant areas within Council for carriage October 2008 of project and associated programs e.g. City Strategy; Sustainability December 2008 Completed 10.1.3 Identify and implement actions for areas where partnerships may be required, e.g. Neighbouring Councils and government agencies February 2009 August 2008 Actions identified and priorities agreed to with partner stakeholders Strategy 10.2: Develop appropriate investment attraction programs Tasks & Actions Timeline Start Timeline Finish Outcome 10.2.1 Review marketing proposal prepared as part of original study April 2009 July 2009 Completed 10.2.2 Prepare cooperative marketing concepts and themes (and potential partners) July 2009 December 2009 Completed Strategy 10.3: Explore potential partnerships with neighbouring councils Tasks & Actions Timeline Start Timeline Finish 10.3.1 In partnership with Maroondah City Council and Yarra Ranges Shire Council initiate a coordinated approach to implementation of projects November 2009 January 2010 Outcome Partnership agreements in place and commitment to identified programs/ projects Strategy 10.4: Link in our plans for this precinct with objective 8.1 in establishing on going strategic alliances with major stakeholders and interested parties 34 Tasks & Actions Timeline Start Timeline Finish Outcome 10.4.1 Refer actions 8.1 in relation to identification of key parties and individuals, contacts and visitation; also noting key areas of interest and concern for potential partners Ongoing Ongoing Alliances secured and ongoing basis for relationships in place objective 11: availability of world-competitive infrastructure in transport, telecommunications and supporting services Strategy 11.1: Develop an understanding of infrastructure requirements of new technologies and industry Tasks & Actions Timeline Start Timeline Finish Outcome 11.1.1 Refer earlier sections on liaison and networking Ongoing Ongoing Demonstrated ability to liaise effectively with key stakeholders 11.1.2 Attendance at relevant seminars, workshops, industry functions and conferences Ongoing Ongoing Attendance at relevant events 11.1.3 Subscriptions and desk research Ongoing Ongoing Demonstrated knowledge Strategy 11.2: Encourage developers to provide state of the art communications infrastructure and future proofing 36 Tasks & Actions Timeline Start Timeline Finish Outcome 11.2.1 Develop an understanding of needs and opportunities Ongoing Ongoing Demonstrated ability to liaise effectively with key developers 11.2.2 Direct contact with developers and companies Ongoing Ongoing Preparation and successful completion of annual schedule knox economic development strategy Strategy 11.3: Explore potential partnerships with neighbouring councils Tasks & Actions Timeline Start Timeline Finish Outcome 11.3.1 In conjunction with Knox Marketing Department Ongoing and Council’s Public transport Consultative Committee identify key messages for promotion of improved public transport services and utilise in Economic Development forums and communications as relevant Ongoing Key messages and strategies of advocacy determined and being implemented 11.3.2 In conjunction with developers seek to enhance Ongoing the provision of public transport facilities and services in new commercial/industrial projects Ongoing Identify and secure commitment to at least one significant project 11.3.3 In conjunction with the Eastern Transport Coalition Ongoing Refer 11.3.1 above Timeline Finish Outcome Ongoing Attendance at relevant meetings Timeline Finish Outcome Ongoing Attendance at relevant meetings and news items reported in Knox Business Life and website as relevant and opportune Ongoing Strategy 11.4: Complete the off-road bicycle network Tasks & Actions Timeline Start 11.4.1 Internal and external liaison, e.g. Port of Ongoing Melbourne Authority (PMCA) and neighbouring Councils – Active Links project Strategy 11.5: Advocate for ongoing road improvements Tasks & Actions Timeline Start 11.5.1 Internal and external liaison, promotion through Ongoing communications, e.g. Knox Business Life and forums 37 implementation, monitoring & evaluation 38 knox economic development strategy implementation The Economic Development Strategy confirms the Knox City Council’s commitment to the Knox Vision 2025 which is an expression of the community’s aspiration for a better and more liveable city particularly as expressed in the goal of a ‘Prosperous and Modern Economy’. In doing so it provides a bridge between the vision and the means by which it will be achieved. It is a detailed strategy and with its focus on development of innovation, high-tech and knowledge based industry, together with the provision of education and skills development opportunities for the Knox resident workforce, is comprehensive in its scope. The Economic Development Strategy is based on partnerships and cooperation. It takes advantage of local government’s unique position as the direct interface with its local community to provide the means by which many State and Federal Government economic strategies can be transformed into action. The Federal Government has acknowledged the need to find ways to increase innovation performance across the economy and to ensure that business has better access to new ideas and technologies that bridge the gap between industry and research. It states that it is about building a strong, robust and truly national innovation system to bolster Australia’s innovation performance, boosting productivity and helping secure high-wage, high-skill jobs for the future. (Senator Kim Carr Minister for Innovation, Industry, Science and Research, January 2008) The Victorian Governments’ overarching policy for State development is set out in its document ‘Growing Victoria Together’. In its aspirations for the State’s economy its vision is complemented by Council’s Knox Vision 2025 Theme of ‘A Prosperous Modern Economy’. This Agenda also makes the important point that innovation is not confined to high-tech industries and that it should not be treated as a research and development or science and technology issue. Innovation, it states , is a major economic strategy that must flow through all sectors of Australia from classrooms to workrooms to boardrooms. monitoring and evaluation the Knox Economic Development Strategy is totally aligned to these goals and objectives. At a local level it is committed to delivering these policies with a detailed prescription of tasks and actions. Through cooperation and the creation of strategic alliances and partnerships, the Strategy provides an effective means by which the aspirations of all three levels of government can be achieved. However only limited funds are available from local resources. Additional resources, particularly those that can be made available through government agencies whose strategic objectives align with this strategy, will be needed to deliver this strategy. Inherent in the Economic Development Strategy is an awareness that the economy is subject to constant change and evolution. It is also recognised that the speed of change has accelerated enormously in recent periods. Whilst this in no way affects the community’s goal of a ‘Prosperous and Modern Economy’ it can and almost certainly will have implications for the manner in which this goal will be achieved. In this context and in the interests of accountability and transparency the Economic Development Strategy will be monitored by Council’s Economic Development Committee. It will: In March 2007 the Victorian Government published its ‘National Innovation Agenda’ which highlighted five key themes or needs, i.e.: • At its regular meeting receive progress reports from Council staff responsible for implementation of the Strategy. • Increase business innovation; • Provide an annual report to Council on the progressive implementation of the Strategy. • Provide the infrastructure to enable innovation; • Develop skills for the innovation economy; • Create a better regulatory environment for innovation; and • Forge better connections and collaborations. • In 2010 and 2012 undertake an extensive review of the Strategy to ensure ongoing relevancy and priorities of tasks and actions. • In 2013 review key objectives of the Strategy and detail appropriate and relevant tasks and actions for their implementation. Every task and action in the Strategy is matched to a defined outcome. As part of the reporting process these will also be evaluated to ensure they are delivered on time and to a high standard. 39 The Knox economy is well-placed to achieve sustainable economic growth, which is important in providing for increased community wellbeing in the City. Key economic and business drivers demonstrating recent and forecast growth in the City include: • Average annual population growth of 0.7% between 2001 and 2006 and forecast average annual growth of 0.48% (or 17,945 persons) through until 2031; • Estimated Gross Regional Product (GRP) of approximately $5.9 billion in 2006/07, an increase of 3.8% from the level recorded in 2005/06; economic profile • Forecast increase of 11,594 households (or 21.3%) from 2006 to 2031, representing an average annual increase of 0.8% over this period; • Estimated average industry turnover of approximately $1.3 million, with the highest industry turnovers recorded by the Wholesale Trade ($6.7 million), Manufacturing ($2.5 million) and Finance & Insurance ($2.5 million) sectors; • Unemployment rate of 3.6%, lower than the averages for Melbourne SD# (4.6%), Victoria (4.8%) and Australia (4.6%); and • Average household income of $1,316.96, higher than both Melbourne SD ($1,278.45) and Victoria ($1,201.36). 40 knox economic development strategy summary of recent statistical indicators, city of knox Population Estimated Resident Population (2006) 152,388 Projected Population (2031) 170,333 Projected Households (2031) 66,114 Employment Employed Persons (Sep Qtr 2007) 84,548 Unemployment Rate (%) (Sep Qtr 2007) Labour Force (Sep Qtr 2007) 3.4 87,531 Participation Rate (%) (Sep Qtr 2007) 69.7 Business Investment Gross Regional Product ($m) (2006/07) 5,870.1 No. of Businesses (June 2006) 14,355 Avg Industry Turnover ($’000) (June 2006) 1,306.4 Index of Economic Diversity (Australia = 1) (2006) 0.668 Demographics Avg weekly individual income ($) (2006) Avg weekly household income ($) (2006) 607.38 1,316.96 Occupation – managers/professionals (%) (2006) 28.4 Employment by sector – primary (resources-based) (%) (2006) 0.3 Employment by sector – secondary (goods-based) (%) (2006) 25.9 Employment by sector – tertiary (commerce-based) (%) (2006) 29.2 Employment by sector – quaternary (information and finance-based) (%) (2006) 27.1 Employment by sector – quinary (domestic, household-based) (%) (2006) 15.0 % of population 15+ yrs with qualification (2006) 49.0 Qualifications – bachelor degree or higher (%) (2006) 27.5 # SD refers to Melbourne Statistical Division, which is situated on the northern and eastern side of Port Phillip Bay down to the Mornington Peninsula. It covers an area of approximately 9274.50 sq km. 41 population Over the period to 2031, the population of the City of Knox is expected to increase by 17,945 persons – or an average annual rate of 0.4% – to a population of approximately 170,333 persons. The growth rate for the City of Knox is lower than that forecast for Melbourne SD and Victoria (both 0.8%). The City of Knox is expected to contribute 2.1% of the total increase in population of Melbourne SD (854,001 persons) over the period to 2031. The estimated resident population of the City of Knox in 2006 was 152,362 persons, an increase of 4,955 persons, or average annual growth of 0.7%, from the level recorded in 2001. This was lower than the average annual population growth rates for Melbourne SD (1.5%) and Victoria (1.3%) over the same period. In 2006, Knox accounted for 4.1% of the population of Melbourne SD and 3.0% of the population of Victoria. By 2031, these proportions are projected to decrease slightly to 3.8% and 2.7% respectively. Population – Knox 175,000 Actual 170,000 Projected 165,000 160,000 155,000 150,000 145,000 140,000 135,000 130,000 125,000 120,000 115,000 110,000 105,000 100,000 1996 2001 2006 2011 2016 2021 2026 2031 Source: ABS 3218.0, forecast.id Estimated Residential Population Level 2001 Level 2006 5-Year Ann % chg Level 2031 Avg Ann Growth, 2006–31 147,433 152,388 0.7 170,333 0.4 Melbourne SD 3,471,625 3,744,373 1.5 4,538,462 0.8 Victoria 4,804,726 5,128,310 1.3 6,225,477 0.8 Knox(a) Note: Population projections for Knox recently updated by i.d. consulting P/L.(‘forecasted,2007’). Revised figures for Melbourne SD and Victoria are currently under preparation (Department of Planning and Community Development) but unavailable at time of publication Source: ABS 3218.0, Dept of Sustainability & Environment, forecast.id 42 42 knox economic development strategy gross regional product Gross Regional Product – Knox 2006/07 Agriculture, Forestry & Fishing Mining The Gross Regional Product (GRP) of the City of Knox was estimated at approximately $5.9 billion in 2006/07, representing an increase of 3.8% from the level recorded in 2005/06 ($5.7 billion). The City of Knox contributed 3.4% and 2.4%, respectively, to the gross regional / state products of Melbourne SD ($172.4 billion) and Victoria ($247.4 billion) in 2005/06. Goods Sector Non Classifiable Industry Services Sector Electricity, Gas & Water Supply Other Accomm, Cafes & Restaurants Cultural & Recreational Services Government Admin & Defence Personal & Other Services Communication Services Transport & Storage Education Finance & Insurance Construction Health & Community Services Ownership of dwellings Retail Trade Property & Business Services With regard to industry, the largest contribution was made by the Manufacturing sector, with approximately $1,518.6 million, or 25.9% of the total GRP for the City of Knox. The Wholesale Trade (12.6%), Property & Business Services (8.5%) and Retail Trade (7.0%) industries were the next highest contributors to the GRP of the City of Knox. Wholesale Trade Manufacturing 0 200 400 600 800 1,000 1,200 1,400 1,600 $ million Source: Lawrence Consulting Gross Regional Product, 2006/07 Knox Level ($m) Agriculture, Forestry & Fishing $15.5 0.3 -22.0 $867.2 0.5 -22.0 $5,085 2.1 -19.6 Mining $16.7 0.3 6.9 $1,601.4 0.9 6.9 $4,836 2.0 4.5 $1,518.6 25.9 3.8 $26,041.5 15.1 3.9 $29,585 12.0 2.2 $46.3 0.8 -5.8 $2,049.5 1.2 -5.8 $5,588 2.3 -2.0 $233.7 4.0 5.2 $5,460.9 3.2 5.3 $15,020 6.1 10.1 Wholesale Trade $737.9 12.6 -1.2 $10,560.0 6.1 -1.1 $13,136 5.3 6.4 Retail Trade $412.7 7.0 2.6 $9,092.6 5.3 2.7 $12,584 5.1 2.3 $47.9 0.8 -11.3 $2,322.6 1.3 -11.2 $3,720 1.5 2.8 Transport & Storage $126.5 2.2 14.7 $5,881.4 3.4 14.8 $9,503 3.8 11.3 Communication Services $100.3 1.7 12.9 $5,838.2 3.4 13.0 $7,127 2.9 2.4 Finance & Insurance $227.6 3.9 2.9 $16,322.0 9.5 2.9 $20,214 8.2 12.7 Property & Business Services $497.4 8.5 14.7 $25,122.9 14.6 14.7 $31,722 12.8 7.2 $54.0 0.9 4.0 $3,759.3 2.2 4.0 $6,333 2.6 8.8 Education $214.3 3.7 3.6 $8,479.3 4.9 3.7 $12,639 5.1 9.9 Health & Community Services $316.9 5.4 11.1 $9,710.8 5.6 11.1 $15,498 6.3 7.3 Cultural & Recreational Services $50.1 0.9 1.0 $2,270.8 1.3 1.0 $3,537 1.4 4.4 Personal & Other Services $79.3 1.4 -6.6 $2,436.1 1.4 -6.6 $3,964 1.6 3.0 Non Classifiable industry $36.4 0.6 4.4 $1,128.5 0.7 4.4 $4,732.1 80.6 4.2 $138,945.2 80.6 5.5 $200,091 80.9 5.6 $407.8 6.9 3.0 $11,975.1 6.9 4.2 $17,245 7.0 4.3 $5,139.9 87.6 4.1 $150,920.4 87.6 5.4 $217,336 87.8 5.5 $729.5 12.4 1.0 $21,419.1 12.4 2.2 $30,845 12.5 2.3 $0.7 0.0 $19.4 0.0 $28 0.0 Electricity, Gas & Water Supply Construction Accommodation, Cafes & Restaurants Government Administration & Defence Total Industry Factor Income Ownership of dwellings GRP at Factor Cost ($m) Taxes less subsidies on production and imports Statistical discrepancy (I) Gross Regional Product ($m) $5,870.1 100.0 3.8 Level ($m) % of Ann GRP % chg Victoria Industry Manufacturing % of Ann GRP % chg Melbourne SD $172,358.9 100.0 Level ($m) % of Ann % GRP chg 0.0 5.0 $247,440 100.0 4.8 Source: Lawrence Consulting 43 business numbers The most recent Australian Business Register indicated there were an estimated 14,355 businesses operating in the City of Knox in June 2006. In terms of business numbers by industry, the Property & Business Services sector was the largest sector with 3,360 businesses (or 23.4% of total businesses), followed by the Construction (20.9%), Retail Trade (12.5%) and Manufacturing (11.8%) industries. Number of Businesses by Industry Knox, June 2007 Agriculture, Forestry & Fishing Mining The estimated average turnover of all businesses in the City of Knox region was approximately $1.3 million, with the Wholesale Trade sector recording the highest average industry turnover ($6.7 million), followed by the Manufacturing ($2.5 million) and Finance & Insurance ($2.5 million) industries. Business Numbers by Industry & Average Turnover, June 2006 Industry Division No. Agriculture, Forestry & Fishing 261 1.8 615.1 6 0.0 350.0 1,698 11.8 2,534.3 24 0.2 434.4 Construction 3,000 20.9 395.3 Wholesale Trade 1,044 7.3 6,679.3 Retail Trade 1,797 12.5 1,026.0 Accommodation, Cafes & Restaurants 210 1.5 503.9 Transport & Storage 723 5.0 314.5 Communication Services 234 1.6 215.5 Finance & Insurance 765 5.3 2,481.0 3,360 23.4 398.4 Education 129 0.9 124.1 Health & Community Services 420 2.9 698.6 Cultural & Recreational Services 249 1.7 649.2 Personal & Other Services 435 3.0 419.0 14,355 100.0 1,306.4 Mining Manufacturing Electricity, Gas & Water Supply Manufacturing Construction Avg % of turnover total ($’000) Wholesale Trade Electricity, Gas & Water Supply Retail Trade Accomm, Cafes & Restaurants Transport & Storage Communication Services Finance & Insurance Property & Business Services Education Health & Community Services Cultural & Recreational Services Personal & Other Services 0 500 1,000 1,500 2 ,000 Source: ABS Australian Business Register – June 2007 2 ,500 3 ,000 3 ,500 Property & Business Services Total Note: Includes businesses located within postcodes in the City of Knox. The number of businesses in the Government Administration & Defence industry classification was not available for publication. Source: ABS Australian Business Register – June 2006 44 knox economic development strategy economic diversity Index of Economic Diversity Greater Dandenong The Regional Index of Economic Diversity measures economic or industrial diversity within a region by determining the degree to which the region’s industry mix differs from that of the nation. When the index value is close to one, the industrial profile of a region mirrors that of the national economy and is considered more diverse. The index value for the City of Knox is 0.668, which ranks ninth of all LGAs comprising South East Melbourne. By comparison, the index values for South East Melbourne, Melbourne SD and Victoria are 0.821, 0.904 and 0.960, respectively. When the index is calculated using the state economy as the comparative benchmark, the City of Knox has the seventh highest index value of all LGAs within South East Melbourne (0.757). With regard to location quotients, the City of Knox has a greater industry concentration (i.e. location quotient greater than 1) than the national economy in the Wholesale Trade (2.30), Manufacturing (2.21) and Retail Trade (1.30) industries. Kingston Knox Cardinia Mornington Peninsula Monash Maroondah Whitehorse Casey Bayside SE Melbourne Frankston Melbourne SD VIC 0 .0 0 .1 0.2 0 .3 0.4 0.5 0 .6 0 .7 0 .8 0 .9 1.0 Source: Lawrence Consulting Location Quotients Agriculture, Forestry & Fishing Mining Manufacturing Electricity, Gas & Water Supply Construction Wholesale Trade Retail Trade Accom, Cafes & Restaurants Knox Transport & Storage Melbourne SD Communication Services Victoria Finance & Insurance Property & Business Services Government Admin & Defence Education Health & Community Services Cultural & Recreational Services Personal & Other Services 0.0 0 .5 1.0 1 .5 2 .0 2 .5 Source: Lawrence Consulting Index of Economic Diversity Diversity Index (Australia) Rank (SE Melbourne) Diversity Index (Victoria) Rank (SE Melbourne) Knox 0.668 9 0.757 7 Bayside 0.812 2 0.843 2 Cardinia 0.671 8 0.656 10 Casey 0.802 3 0.818 5 Frankston 0.822 1 0.851 1 Greater Dandenong 0.578 11 0.674 9 Kingston 0.590 10 0.695 8 Maroondah 0.746 5 0.821 4 Monash 0.721 6 0.810 6 Mornington Peninsula 0.712 7 0.619 11 Whitehorse 0.795 4 0.826 3 South East Melbourne 0.821 0.899 Melbourne SD 0.904 0.962 Victoria 0.960 n.a. 45 household projections Households – Knox 70 ,000 Over the period from 2006 to 2031, the number of households in the City of Knox is expected to increase by 21.3% – or an average annual rate of 0.8% – to approximately 64,559 households. The growth rate for the City of Knox is slightly lower than that forecast for the South East Melbourne region and Melbourne SD (both 1.2%) as well as Victoria (1.3%). The City of Knox is expected to contribute 2.2% of the total increase in the number of households in Melbourne SD (515,941) over the period to 2031. Actual Projected 65 ,000 60,000 55 ,000 50,000 45,000 40 ,000 35 ,000 30 ,000 1996 2001 2006 2011 2016 2021 2026 2031 Source: Dept of Sustainability & Environment Household Projections Level 2001 Level 2006 Level 2011 Level 2016 Level 2021 Level 2026 Level 2031 Avg Ann Growth, 2006–31 51,056 54,520 57,121 59,600 62,062 64,193 64,559 0.8 Melbourne SD 1,309,401 1,420,121 1,533,890 1,646,759 1,757,080 1,853,060 1,936,062 1.2 Victoria 1,833,623 1,987,078 2,147,059 2,307,596 2,465,384 2,601,659 2,719,200 1.3 Knox Note: Household numbers for Knox have recently been updated by i.d. consulting P/L (‘forecast id 2007’) Revised figures for Melbourne SD and Victoria are under preparation (Department of Planning and Community Development) but unavailable at time of publication. Source: Dept of Sustainability & Environment 46 knox economic development strategy labour market Unemployment Rate % The number of employed persons in the City of Knox was estimated at 84,548 in the September Quarter 2007, representing an annual increase of 4.0% from the level recorded in the September Quarter 2006. The City of Knox contributed 4.5% to the estimated number of employed persons in Melbourne SD (1,894,100) in the September Quarter 2007. 6 .5 The unemployment rate in the City of Knox was 3.4% in the September Quarter 2007, which was 0.5 percentage points lower than the rate recorded in the September Quarter 2006. The unemployment rate in the City of Knox has remained below the level of 5% since the December Quarter 2003. The City of Knox’s unemployment rate is also historically lower than the averages for Melbourne SD, Victoria and Australia, levels for which in the September Quarter 2007 were 4.5%, 4.7% and 4.4%, respectively. 3 .5 Knox Melbourne SD Victoria Australia 6 .0 5.5 5 .0 4 .5 4 .0 3 .0 2 .5 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07 Sep-07 Source: DEWR The City of Knox has a job provision rate (i.e. the ratio of jobs per resident labour force) of 0.75 jobs per resident, which is lower than the ratios for the neighbouring LGAs of Monash (1.13) and Dandenong (1.20), as well as the average for the Melbourne SD (0.90). This indicates that the City of Knox is a net exporter of jobs/workers to areas outside the LGA. Labour Market, September Quarter 2007 Employed persons Unemployed Unemployment rate(a) Labour force No. Ann % chg No. Ann % chg % Ann % chg No. Ann % chg 84,548 4.0 2,983 -10.2 3.4 -0.5 87,531 3.4 Melbourne SD 1,894,100 2.0 90,100 -4.5 4.5 -0.3 1,984,200 1.7 Victoria 2,576,700 2.6 127,400 -6.5 4.7 -0.4 2,704,100 2.1 Knox Note: (a) Unemployment rate changes are percentage point changes. Source: DEWR, Lawrence Consulting 47 employment profile Employment By Industry Agriculture, Forestry & Fishing The largest industry of employment for residents in the City of Knox in 2006 was Manufacturing with 12,439 persons, or 16.5% of total industry employment. The Retail Trade (13.5%), Health Care & Social Assistance (9.5%) and Construction (8.6%) sectors are also significant industry employers in the City of Knox. Mining Manufacturing Electricity, Gas, Water & Waste Services Construction Wholesale Trade 2006 Retail Trade 2001 Accommodation & Food Services Transport, Postal & Warehousing Information Media & Telecommunications Financial & Insurance Services Rental, Hiring & Real Estate Services Professional, Scientific & Technical Services Administrative & Support Services The most common occupational grouping amongst employed residents in the City of Knox in 2006 was Clerical & Administrative Workers, accounting for 17.5% of total employment, followed by Professionals (16.8%) and Technicians & Trades Workers (16.5%). Education & Training Arts & Recreation Services Other Services % 0 2 4 6 8 10 12 14 16 18 Managers Professionals Technicians & trades workers Community & personal service workers Clerical & admin workers Sales workers Machinery operators & drivers Labourers Inadequately described/ not stated % of total employment by industry Source: ABS 2006 Census Agriculture, Forestry & Fishing 0.6 0.1 0.2 0.0 0.2 0.1 0.2 0.6 0.2 0.2 Mining 0.2 0.2 0.1 0.0 0.1 0.0 0.2 0.1 0.0 0.1 19.1 8.4 23.9 0.7 12.6 7.4 36.2 31.7 17.7 16.5 Electricity, Gas, Water & Waste Services 1.0 0.8 0.9 0.0 1.4 0.3 1.6 0.4 1.0 0.8 Construction 6.6 1.5 30.9 0.2 5.5 0.9 5.6 10.5 4.6 8.6 Wholesale Trade 11.7 5.2 3.0 0.2 10.6 9.7 16.0 4.0 6.1 7.3 Retail Trade 18.0 3.5 5.2 1.6 7.0 59.8 8.1 10.3 6.1 13.5 Accommodation & Food Services 7.0 0.3 3.4 14.2 1.0 6.6 0.8 11.6 2.3 4.7 Transport, Postal & Warehousing 3.9 1.0 0.8 0.9 6.2 1.6 21.8 1.7 2.1 3.8 Information Media & Telecommunications 2.4 3.3 2.7 0.1 2.4 2.5 0.6 0.5 2.1 2.1 Financial & Insurance Services 5.0 6.3 0.5 0.2 11.3 1.4 0.2 0.3 3.1 4.0 Rental, Hiring & Real Estate Services 1.5 0.5 0.4 0.2 1.7 3.8 0.6 0.5 1.0 1.2 Professional, Scientific & Technical Services 5.9 16.4 4.4 0.4 9.2 1.4 0.6 1.3 3.9 6.2 Administrative & Support Services 2.3 2.2 2.4 2.9 3.7 0.8 2.1 11.2 2.0 3.3 Public Administration & Safety 2.9 4.4 1.3 17.9 6.6 0.4 0.6 2.0 2.6 4.2 Education & Training 3.4 22.0 1.6 12.1 4.4 0.2 0.3 1.3 1.2 6.2 Health Care & Social Assistance 3.8 19.6 2.5 36.8 9.5 0.4 1.2 6.1 4.6 9.5 Arts & Recreation Services 1.5 1.1 0.6 5.7 1.2 0.8 0.1 1.0 1.0 1.3 Other Services 2.3 2.2 13.0 4.8 3.3 0.7 1.3 3.1 1.8 4.2 Inadequately described/not stated 1.3 1.3 2.3 1.1 2.2 1.1 1.9 1.9 36.3 2.3 11.7 16.8 16.5 7.9 17.5 11.6 6.7 9.5 Employment By Industry & Occupation (%), 2006 Manufacturing % of total employment by occupation Source: ABS 2006 Census 48 Public Administration & Safety Health Care & Social Assistance 1.8 100.0 20 knox economic development strategy income distribution In 2006, the average individual weekly income for the City of Knox was $607.38, whilst the averages for Melbourne SD and Victoria were $624.12 and $597.66, respectively. With regards to household income, the City of Knox recorded a higher weekly average ($1,316.96) than both Melbourne SD ($1,278.45) and Victoria ($1,201.36). Weekly Individual Income Distribution 2006 % 16 Knox Melbourne Victoria 14 12 10 8 6 4 2 0 -ve/Nil $1 -$149 $ 150 $ 249 $ 250 $ 399 $ 400 $ 599 $ 600 $ 799 $800 $999 $1,000 $1,299 $ 1 ,300 $ 1 ,599 $1,600 - $ 2 ,000 or $1,999 more Source: ABS 2006 Census Weekly Income Distribution (%) Knox Melbourne SD Victoria Negative/Nil income 8.4 8.9 8.3 $1-$149 8.8 8.1 8.2 $150-$249 12.3 14.5 15.4 $250-$399 12.9 12.8 13.9 $400-$599 15.3 14.1 14.9 $600-$799 13.2 11.7 11.7 $800-$999 10.0 9.3 8.9 $1,000-$1,299 9.4 8.8 8.3 $1,300-$1,599 4.5 4.6 4.2 $1,600-$1,999 2.6 2.8 2.5 $2,000 or more 2.8 4.3 3.7 Not Stated 8.4 8.9 8.3 100.0 100.0 100.0 607.38 624.12 597.66 Avg wkly household income ($) 1,316.96 1,278.45 1,201.36 Avg wkly family income ($) 1,453.30 1,445.17 1,370.02 Total Avg wkly individual income ($) Source: ABS 2006 Census 49 qualifications Qualifications – Population 15 Years and Over 2006 In 2006, 79.7%% of persons 15 years and over in the City of Knox had a certificate or higher level qualification, which was higher than the averages for Melbourne SD (76.5%) and Victoria (75.7%). The most common form of qualification in the City of Knox was a certificate, with 36.1% of the population aged 15 years and over attaining a qualification at this level. The City of Knox recorded a lower proportion of the population 15 years and over who held a bachelor degree or higher (27.5%) than both Melbourne SD (36.2%) and Victoria (32.7%). Knox Postgraduate Degree Melbourne SD VIC Graduate Diploma and Graduate Certificate Bachelor Degree Advanced Diploma and Diploma Certificate % 0 5 10 15 20 25 30 35 40 Source: ABS 2006 Census Non-School Qualifications – Population 15 Years and Over Knox Melbourne SD Victoria No. % of total No. % of total No. % of total Postgraduate Degree 2,042 3.4 95,916 6.1 108,123 5.2 Graduate Diploma and Graduate Certificate 1,615 2.7 58,034 3.7 74,045 3.5 12,769 21.4 418,334 26.5 502,516 24.0 9,608 16.1 223,276 14.1 289,645 13.8 1,946 3.3 42,185 2.7 56,368 2.7 18,398 30.8 345,725 21.9 516,489 24.7 1,169 2.0 24,286 1.5 37,558 1.8 21,513 36.1 412,196 26.1 610,415 29.2 1,815 3.0 39,022 2.5 52,370 2.5 Level of education not stated 10,302 17.3 333,718 21.1 455,296 21.8 Total 59,664 100.0 1,580,496 100.0 2,092,410 100.0 Bachelor Degree Advanced Diploma and Diploma Certificate: Certificate nfd Certificate III & IV(c) Certificate I & II(d) Total Level of education inadequately described Source: ABS 2006 Census Knox City Council 511 Burwood Highway Wantirna South VIC 3152 Australia Telephone: 03 9298 8000 Fax: 03 9800 3096 International: +61 3 9298 8000 Hearing Assisted (TTY): 03 9298 8521
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