Economic Development Strategy · Adelaide Hills Council Economic Development Strategy 2015 Page 7...

Economic Development Strategy

October 2015

ECONOMIC DEVELOPMENT STRATEGY

Table of Contents Context ..................................................................................................................................... 3

1. Introduction ......................................................................................................................... 4

1.1 What is Local Economic Development ....................................................................................... 4

1.2 Council’s Strategic Components for Economic Development .................................................... 4

2. Strategic Context .................................................................................................................. 6

2.1 Introduction ................................................................................................................................ 6

2.2 Economic Profile of the Adelaide Hills District ........................................................................... 6

2.3 SWOT Analysis Summary ............................................................................................................ 9

2.4 RDA Assessment ....................................................................................................................... 12

3. The Economic Development Strategy .................................................................................. 16

3.1 Options for Council Involvement .............................................................................................. 16

3.2 Role: .......................................................................................................................................... 17

3.3 Functions: ................................................................................................................................. 17

3.4 Key activities: ............................................................................................................................ 17

4. Action Plan ......................................................................................................................... 20

A Context: (from the Economic Profile initially) ......................................................................... 20

B Economic Sector Development: ............................................................................................... 21

C Business Groupings:.................................................................................................................. 22

D Programs, Activities and Policies: ............................................................................................. 23

E Lobbying and Co-operation: ..................................................................................................... 25

F Branding and Marketing: .......................................................................................................... 26

5. Monitoring Progress ........................................................................................................... 27

Appendix One: SWOT Analyses by Sector ................................................................................ 28

Adelaide Hills Council Economic Development Strategy 2015 of 31

Context

Commerce flourishes by circumstances, precarious, transitory, contingent, almost as the winds

and waves that bring it to our shores. - Charles Caleb Colton (1780-1832)

Running a successful business over a long period is far from easy. Markets change, people come and go,

new ideas help you one minute and compete with you the next, the rules get tougher, things always seem

to cost more... and it’s lonely being responsible for so much. Business owners, especially small business

owners, usually need all the help they can get.

Local Government can be a help to local businesses but is often caught in between its conflicting roles.

Firstly, local government is responsible for administering laws and regulations delegated to it by the State

Government, or its own by-laws and policies. Secondly, local government exists to help strengthen and

assist its community.

In the first role, for some areas of operating a business, local government can be seen as a problem, with

ever-present rates, ever more regulations, issues with development applications, and media messages that

never seem to understand business.

However, in the second role, local government can be an opportunity which provides great assistance, but

usually not in ways that you expect. Business and local government do not think the same way, but a

Council can do things and draw on people that most small businesses can’t. There are ways that Adelaide

Hills Council can help our local businesses, but we need to start slowly and simply, and get to know each

other. To date, the following actions have been undertaken:

Council has prepared an Economic Profile of this District to provide a ‘bigger picture’ of the

businesses around you, and the “State of the District” report to provide a ‘bigger picture’ of the

District.

Council has ‘economy.id’ on our website to provide you with statistics relevant to your business and

marketing plans, and to support loan and grant applications.

Council has the capacity to bring the big picture to your neighbourhood, in ways that many local

businesses can’t afford to do.

It’s not often that we can help you individually, but we can certainly do things for you as a group of

businesses – for example, to help you find common ground to address bigger markets and build stability, or

to take your difficulties to other levels of government.

This document is Council’s first Economic Development Strategy. Its intent is to:

establish and clarify the Council’s role, function and key activities to support economic activity within

the district; and,

provide a basis for long-term discussion, co-operation and investment between the District’s

business community, investors and Council.

http://economy.id.com.au/adelaide-hills


1. Introduction

Change is inevitable but progress is truly optional. - Don Allen Holbrook,

1.1 What is Local Economic Development

“The purpose of local economic development (LED) is to build up the economic capacity of a

local area in order to improve its economic future and the quality of life for all. It is a process by

which public, business, and non-governmental sector partners work collectively to create better

conditions for economic growth and employment generation. The success of a community today

depends upon its ability to adapt to the dynamic local, national, and international market

economy.” -- World Bank - Local economic development: a primer developing and implementing local

economic development strategies and action plans (2006)

For local government Economic Development can involve a variety of short-term projects, lobbying, policy

changes, long-term programs, and working with other levels of government to achieve benefits for local

businesses. The essential element of this activity is working with local businesses, often as a local or

industry group, to identify what needs to be done and how best to get it done. The end goal is to have a

wide variety of stable or growing businesses to provide jobs and services for the local community, and to

provide relevant and useful assistance to the local business community which often also serves global or

national markets. Economic Development is a long term exercise.

1.2 Council’s Strategic Components for Economic Development

Council’s intent for the economic diversity and sustainability of the District has three core

components:

this Economic Development Strategy;

the World Heritage Bid; and,

the Primary Production Lands Development Plan Amendment (DPA).

The latter two projects have defined roles and time frames and clear economic development intent.

The Economic Development Strategy will “establish the Council’s role, function & key activities to

support economic activity within the district” over the long term.

This Economic Development Strategy is a core component of Council’s Strategic Plan, to implement

the goal of achieving ‘a strong, diverse and sustainable economy’. While much of the Council’s

population works outside the Adelaide Hills region, our local community can be strengthened by a

local economy which builds on its strengths in food production, tourism and creativity. This Strategy

will co-ordinate and guide the development of the district’s local economy through an understanding

of both local and external pressures, the use of practical economic development methods, and

working with the local business community and business support organisations. This Strategy follows

the preparation of an Economic Profile for the District (see www.ahc.sa.gov.au/Business/local-

businesses), and which is summarised in section 2.2 below.

http://www.goodreads.com/author/show/1230910.Don_Allen_Holbrook


Council is undertaking this role because it is very well placed understand local issues in the wider

context of opportunities and constraints which include bushfire and flooding hazards, working with

water catchment protection demands, and local ways of doing business.

The World Heritage Bid is more properly known as the Mount Lofty Ranges Agrarian Landscape

World Heritage Bid. Council’s main reason for being involved in this project is the improved

economic development prospects and opportunities that World Heritage listing can bring. It is noted

that if a land holder has no wish to do anything different, then nothing different will happen.

However, listing brings two essential opportunities – tourists and a brand to build on. World

Heritage listing has been noted to increase visitor numbers by around 10 times prelisting levels,

which brings accommodation and tourist activity potential to the fore. World Heritage Branding

provides a globally recognised ‘good’ brand to go alongside this region’s “clean and green”

production and ‘high quality food and wine’ products. These are significant opportunities for family

farms (in particular), tourism operators, and small businesses with capacity or orientation to meet

the needs of tourists in significant numbers. For more details, please go to the project website at

www.mountloftyranges.org.

The Primary Production Lands DPA is a review of Development Plan policy which is generally

intended to “Make Farming Easier. Planning policy in the Watershed area has been very restrictive in

an effort to protect the quality and quantity of water flowing off the Hills and into the reservoirs

which provide drinking and industrial water for Adelaide and other parts of the State. Council’s

intent is that water quality can be protected in ways that allow the private land which makes up this

watershed to be used productively. This DPA will review planning policy for Council’s rural area, with

particular understandings of practical and professional farming, criteria for value adding activities,

and helping to make agricultural production in the Hills, some of the State’s most productive land, a

sustainable economic activity.

http://www.mountloftyranges.org/


2. Strategic Context

“World class communities come in all shapes and sizes, they are not determined by geography,

and/or natural resources so much as by the mindset of their local leadership.”

- Don Allen Holbrook, The Little Black Book of Economic Development

2.1 Introduction

Phil Ruthven (IBIS) has observed that around 75% all regional economies are the same, i.e. they include

sectors which serve the local market, such as retail trade and wholesale trade. It is the 25% of each

economy which differentiates that economy from others, and which needs to be the majority of the focus

for an economic development strategy. For the AHC District, this 25% includes ‘horticulture’, ‘viticulture’

(and related wine manufacturing) and ‘tourism’. The AHC economy is also differentiated by its highly

skilled and qualified workforce. These factors form the key to the District’s economic future, however it

should also be noted that every economy changes over time as market pressures shift and markets bend

and adapt.

2.2 Economic Profile of the Adelaide Hills District

The Adelaide Hills Economic Profile was prepared as a resource for the Council to use in the

preparation of an economic development strategy. The profile indicated the following as key

economic development pointers:

Economic overview (highlighting the broader population, economic and workforce characteristics of the AHC area):

population - numbers have been relatively stable over the past decade and are likely to

remain that way, given the limited scope for further development;

economy - the main sectors which differentiate the Adelaide Hills economy are horticulture

(mainly apples, pears and cherries), viticulture (with downstream wine production) and

tourism;

labour force - highly skilled with a relatively high proportion working in managerial and

professional occupations, and with incomes increasingly skewed towards the highest income

groups; and,

employment - very low levels of unemployment when compared to the rest of the State.

These attributes render the economy robust and very adaptable.

Mega Trends

global growth - projections reveal that Asia, in particular China, will continue to underpin

global economic growth. With Australia, and South Australia, becoming increasingly

economically integrated with this region, and the growth in premium food trade, Adelaide

Hills agriculture has potential for further growth in the long term.


digital economy/broadband - high speed broadband is a strategic asset for modern

economies. While AHC is relatively well served with broadband delivered by copper wire,

business and residents' strong appetite for internet usage suggests that improved

broadband and mobile communication technology would have a significant take-up.

climate change - whether man-made or naturally occurring, the agricultural sector

recognises that climate change is occurring. They also recognise the need for natural

resource stewardship to ensure industry sustainability, which is the focus of State

Government via its natural resource management plans. However, there is some concern

over the detail associated with implementation, particularly Water Allocation Plans and how

they will operate over the long term and in times of drought.

patterns of settlement - for the Adelaide Hills future population, most housing and

employment growth in the region will be accommodated at Mt Barker and Murray Bridge,

which can provide both opportunities for local businesses and stress through development

pressure for residents.

Policy context

State Government policy has the most significant direct impact on the region through the South Australian Planning Strategy and in the range of economic development plans and industry plans (such as tourism). While these plans do not provide direct resourcing support (except nominally as part of the tourism plan) they provide an opportunity for the region to collaborate with the State Government in support of industry and economic development.

Infrastructure

Overall, the Adelaide Hills does not have any major infrastructure deficits. That said, there are many rural, and some town, properties that do not have access to mains water, sewer or storm-water management infrastructure.

There is also potential that water for agricultural purposes will become a major issue around the Water Allocation Plans, and how they will operate in times of weather or climatic stress.

Sector analysis

Horticulture (mainly apples, pears, floriculture1 and cherries), viticulture (with downstream wine production) and tourism are the main sectors.

The agricultural industries are well established and demonstrate innovative practices in adapting to changing climatic conditions and in addressing new markets. The biggest issue at present is the uncertainty about how well the Water Allocation Plans will operate in the long term. An opportunity worth pursuing is securing Pest Free Status which would deliver internationally recognised protocols in managing/eradicating fruit-fly, and hence open up new international markets for local produce.

Tourism is a complex sector and one which warrants more intensive public intervention than other sectors.

1 cut flowers and nurseries


Manufacturing is directly linked to agriculture via meat processing, wine production and food products.

Strategies

From the research and analysis undertaken in the preparation of the Economic Profile, the main points for consideration in framing an Economic Development Strategy were:

Focus on that part of the economy which differentiates it from other regional economies

and which has growth prospects beyond local autonomous growth. For the Adelaide Hills,

this is horticulture, viticulture (and related wine manufacturing), tourism and a highly skilled

and qualified workforce.

Any intervention by government needs to have a compelling rationale, which has

traditionally been market failure, and such intervention needs to address the reasons for the

market failure, e.g. existence of externalities, public good attributes.

Whereas horticulture and viticulture (and related wine manufacturing) are relatively well

established, thereby not justifying significant intervention, the tourism industry, by virtue of

its industry structure (small, diverse, distributed) can justify a much deeper involvement by

government.

For the agricultural sector generally, the following actions are appropriate:

- assisting to reduce uncertainty associated with alternative water supplies within the framework of the WAPs, is appropriate; and,

- facilitating achievement of Pest Free Status.

Small business dominates the Hills economy and industry sectors, as it does for all regional

economies. Any support for small business should be considered as part of a broader

approach to industry support, particularly given the resourcing required to be effective.

Any support for industry should by underscored by an engagement plan which includes

regular meetings to consider issues of common concern.

The UNESCO Mount Lofty Ranges Agrarian Landscape World Heritage bid is not well

understood by those who would be the beneficiaries, i.e. agricultural businesses. A more

meaningful engagement with this sector is required.

High speed broadband (for fixed and mobile communication) is a strategic economic asset.

Given the relatively high propensity for internet usage by Adelaide Hills businesses and

residents it would be appropriate to actively lobby the Federal Government and internet

providers to provide this infrastructure as a priority. For the Federal Government it would

mean lobbying NBNCo to revise its roll-out program to include Adelaide Hills as a higher

priority.

The Council district possesses many of the attributes which attract potential investors,

mainly the 'soft' factors such as an agreeable climate and environment, friendly local people,

widely available entertainment/leisure, and a high skills base/educated workforce.

In preparing a branding and marketing strategy for the tourism, fine foods, agricultural

products and other sectors it would be appropriate to engage with the State Government

and local marketing expertise such as tourism operators and real estate agents who have

expertise in engaging with potential investors.

2.3 SWOT Analysis Summary

The Economic Profile can be broadly summarized into the follow SWOT2 analysis which provides a snapshot of the District’s economy and its current position.

Strengths Weaknesses Opportunities Threats

labour force - highly skilled with a relatively high proportion working in managerial and professional occupations and with incomes increasingly skewed towards the highest income groups

employment - very low levels of unemployment when compared with the rest of the State

economy - the main sectors which differentiate this economy are horticulture (mainly apples and pears and cherries), viticulture (and downstream wine production) and tourism.

digital economy/broadband - high speed broadband is a strategic asset for modern economies. The Hills are relatively well served with copper-wire-based broadband, a strong local appetite for internet usage suggests that improved broadband and mobile communication technology would have a significant take-up

Agricultural industries are well established and demonstrate innovative practices in addressing new markets and in adapting to changing climatic conditions.

a community where population and economic growth is constrained by the Mt Lofty Ranges water catchment area, water allocation planning and its topography leading to risks associated with natural events like bushfire.

a community with a high proportion of commuters to the Adelaide Metropolitan Area by road but where intra-regional travel is limited by a lack of scheduled public transport

a community that is particularly susceptible to bushfire risk with potential for increased risk due to climate

global growth - projections reveal that Asia, in particular China, will continue to underpin global economic growth. With Australia and South Australia becoming increasingly integrated economically with this region and the growth in premium food trade, Adelaide Hills agriculture has potential for further growth in the long term

patterns of settlement - For the Adelaide Hills generally, future population, housing and employment growth in the region will be accommodated at Mount Barker and Murray Bridge. Tap into this market

Policy context State Government policy has the most significant impact on the region directly through the South Australian Planning Strategy and in the range of economic development plans and industry plans (such as tourism). Whilst these plans do not provide

population - numbers have been relatively stable over the past decade and is likely to remain that way given the limited scope for further development

climate change - whether man-made or naturally occurring the agricultural sector recognises that change is occurring. They also recognise the need for natural resource stewardship to ensure industry sustainability, which is the focus of State Government via its natural resource management plans. However, there is some concern over the detail associated with implementation, particularly Water Allocation Plans and how they will operate over the

2 Strengths, Weaknesses, Opportunities and Threats



Adaptive Capacity (AC):

Adelaide Hills (and Mt Barker) LGAs have AC index scores well above the state average at +1.88 (and +1.23). These areas have proximity to a major centre (Adelaide), larger populations, good internet access, diverse economies, relatively low unemployment, highly qualified residents, and relatively high median household incomes. Adelaide Hills LGA rates second in the State for this ‘endowment of resources’ .

The Adelaide Hills LGA is strong in each of the physical, economic, human and social capital groups. Standouts include higher average household incomes, high proportions of tertiary graduates, high level of females in ‘non-routine’ jobs, and low levels of lone person households. However Adelaide Hills performed below the median in social capital and particularly in a rating for community strength which measures access to support from family and friends, and participation in community groups and activities at school where there are school aged children.

Relative Competitiveness:

Adelaide Hills LGA has strengths in:

good health, high levels of post school qualifications and good levels of technological readiness such as access to the internet

an efficient labour market with relatively low unemployment rates, high participation rates and low rates of welfare dependence

market advantages in the size of the economy and its population

change direct resourcing support (except nominally as part of the tourism plan) they provide an opportunity for the region to collaborate with the State Government in support of industry and economic development

An opportunity worth pursuing is securing Pest Free Status which would deliver internationally recognised protocols in managing/eradicating fruit-fly and hence open up new international markets for local produce.

servicing the resident population through improving connectivity between the local communities as well as with the Adelaide Metropolitan Area through the provision of park and ride and more scheduled public transport

land use planning and other strategies aimed at protecting high yield agriculture land and maintaining viability for the region’s agriculture based communities

encouraging diversity through land use planning that allows further value adding to agriculture industry activity and responding to opportunities provided by new technologies

enhancing tourism industry

long term and in times of drought

Infrastructure

Overall, Adelaide Hills does not have any major infrastructure deficits but there is the potential for water for agriculture to become a major issue around the Water Allocation Plans and how they will operate in times of climatic stress. The biggest issue at present is the uncertainty associated with the long term operation of the Water Allocation Plans.

UNESCO Mount Lofty Ranges World Heritage bid is not well understood by those who would be the beneficiaries ie agricultural businesses.



The Community:

is relatively affluent, with large residential populations in the southern and western townships.

has smaller, rural communities in the northern area with reasonable access to the north of Adelaide

is generally well educated and experienced workforce

has strong comparative advantage industries in agriculture and tourism, which benefit from high yielding, well serviced agricultural land, unique natural assets and good access to Adelaide metropolitan markets

This area has many of the attributes which attract potential investors, mainly the 'soft' factors such as; agreeable climate and environment; friendly local people; widely available entertainment/leisure and skills base/educated workforce.

opportunities including building links to existing industries like food and wine and emerging industries like arts, culture, history and heritage

managing risks from natural events, particularly bush fire in the context of climate change

UNESCO Mount Lofty Ranges World Heritage bid

2.4 RDA Assessment

The Adelaide Hills Council district falls within the area of Regional Development Australia Adelaide Hills Fleurieu

and Kangaroo Island, which has produced the Regional Roadmap 2013. This Roadmap document, in part,

considers the following indicators:

Adaptive capacity of the region - strengths and weaknesses in human capital and sustainable

communities – AHC has an adaptive capacity index scores well above the state average (+1.88).

It is characterised by close proximity to a major centre (Adelaide), larger populations,

good connectivity (internet access), a diverse economy, relatively low levels of

unemployment, highly qualified residents, and relatively high median household incomes.

AHC is in the top 2 LGAs in SA for this ‘endowment of resources’.

AHC is strong in each of the four ‘capital’ groups of ‘physical’, ‘economic’, ‘human’ and

‘social’ capital. Standouts include higher average household incomes, high proportions of

tertiary qualifications (graduates), high level of females in ‘non-routine’ jobs and low

levels of lone person households.

However, AHC performed below the median in ‘social capital’ and particularly in a rating

for ‘community strength’ which is a measure of access to support from family and friends

and participation in community groups, and activities at school where there are school

aged children.

National Competitive Index - strengths and weaknesses in access to markets, comparative

advantage and business competitiveness with particular relative competitiveness strengths in:

good health, high levels of post school qualifications and good levels of technological

readiness such as access to the internet;

an efficient labour market with relatively low unemployment rates, high participation

rates and low rates of welfare dependence; and,

market advantages in the size of the economy and its population.


The Roadmap also identified the key characteristics and opportunities for Adelaide Hills Council area:

Key characteristics Opportunities

a relatively affluent community with large

residential populations in the southern and

western townships with less densely

populated areas, having a more rural ‘feel’,

towards the northern boundary

a community with a generally well educated

and experienced workforce

a community with strong comparative

advantage industries in agriculture and

tourism which benefit from high yielding, well

serviced agricultural land, unique natural

assets and good access to Adelaide

metropolitan markets

a set of smaller, more rural communities in

the northern area with reasonable access to

the northern suburbs of Adelaide

a community where population and economic

growth is constrained by the Mt Lofty Ranges

water catchment area, water allocation

planning and its topography leading to risks

associated with natural events like bushfire.

a community with a high proportion of

commuters to the Adelaide Metropolitan Area

by road but where intra-regional travel is

limited by a lack of scheduled public transport

a community that is particularly susceptible to

bushfire risk with potential for increased risk

due to climate change

servicing the resident population through

improving connectivity between the local

communities as well as with the Adelaide

Metropolitan Area through the provision of

park and ride and more scheduled public

transport

land use planning and other strategies aimed

at protecting high yield agriculture land and

maintaining viability for the region’s

agriculture based communities

encouraging diversity through land use

planning that allows further value adding to

agriculture industry activity and responding

to opportunities provided by new

technologies

enhancing tourism industry opportunities,

including building links to existing industries

like ‘food and wine’ and emerging industries

like ‘arts’, ‘culture’, ‘history’ and ‘heritage’

managing risks from natural events,

particularly bush fire in the context of climate

change


Map 1: Adelaide Hills Council district showing major towns and villages.


Map 2: Elevations and main topographical features of the District

3. The Economic Development Strategy

Behind every small business, there's a story worth knowing. All the corner shops

in our towns and cities, the restaurants, cleaners, gyms,

hair salons, hardware stores - these didn't come out of nowhere. - Paul Ryan

From the AHC Strategic Plan 2014-18, this Economic Development Strategy is primarily intended to

“establish the Council’s role, function & key activities to support economic activity within the district”.

This is the first Economic Development Strategy undertaken by this Council and is intended to work:

1. by providing a basis for ongoing discussions with the District’s business community about how

best to support economic activity; and,

2. by providing a focus through which Council can determine its role, define suitable functions

and allocate resources to key activities in the support of economic activities.

The following elements establish the range and nature of tasks which can, together, comprise

Council’s Economic Development Strategy.

3.1 Options for Council Involvement

Local Government involvement in Economic Development fits in between the existing programs and

campaigns of Commonwealth or State Governments and the organizational and promotional efforts

of industry associations and local business groups. Local Government is usually limited in the

resources it can offer to assist businesses operating within their Districts, but it usually has good

connections into other levels of government and other sources of business or financial support.

Financial resources to fund staff and comprehensive programs are becoming harder to allocate

across a variety of essential services. That said, there are programs and services for which Local

Government is ideally placed, by being local, and for which Local Government can be a useful

advocate, by understanding local issues, capacity and needs. Common Local Government economic

development services can include:

3.1.1. Promoting the District with a Prospectus or similar document

3.1.2. Providing an Economic Profile, State of the District report and research support to demonstrate the current state of the local economy

3.1.3. Providing an Economic Development Strategy to focus and co-ordinate local economic development efforts by businesses, industry associations and various levels of government

3.1.4. Providing Networking opportunities

3.1.5. Providing, or lobbying, for infrastructure replacement or upgrades to meet changing needs

3.1.6. Providing opportunities for businesses to work co-operatively to address markets beyond the reach of each individually

3.1.7. Working with other levels of government and the private sector to enable projects, works, investments and public-private partnerships which benefit the local economy

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3.1.8. Changing or amending local policies and procedures to benefit business as part of the local community

3.1.9. Assisting with understanding and negotiating Council’s regulatory obligations

3.1.10. Supporting grants applications to benefit local businesses

3.1.11. Working at a district or regional level to promote, brand or market local industries, products or localities too small

3.1.12. Promoting the District as the sum of all of its businesses, etc.

3.2 Role:

To strengthen the diversity and economic sustainability of the local economy, to the benefit of the

District’s business and residential communities, within the limits of Council’s available resources.

3.3 Functions:

The following functions form the basis for the key activities listed in section 3.4 below.

3.3.1. Promotion of the District’s economy as the sum of all of its businesses, etc. (See all Action Groups below)

3.3.2. Promotion of the District’s key economic sectors (See Action Group B below)

3.3.3. Provision of an Economic Profile, relevant economic data and research support to demonstrate the current state of the local economy, and support (See Action Group B below)

3.3.4. Provision of an Economic Development Strategy to focus and co-ordinate local economic development efforts by businesses, industry associations and various levels of government (This document.)

3.3.5. Provision of networking opportunities for local businesses by region or industry, to assist in understanding of key elements of the local economy and facilitating beneficial co-operative actions between businesses to address markets beyond the reach of each individually (See Action Group C below)

3.3.6. Provision of, or lobbying for, infrastructure replacement or upgrades to meet changing economic needs (See Action Group E below)

3.3.7. Working with other levels of government and the private sector to enable projects, works or investments which benefit the local economy (See Action Group E below)

3.3.8. Changing or amending local policies and procedures to benefit business as part of the local community (See Actions A.6 and B.3)

3.3.9. Supporting grants applications to external parties to benefit local businesses (See Action A.6 below)

3.3.10. Working at a district or regional level to promote, brand or market local industries, products or localities (See Action Group F below)

3.4 Key activities:

The following key activities are further developed as individual Actions in the Action Plan which

forms Chapter 4 below. The numbers in square brackets refer to the relevant item in the AHC

Strategic Plan 2014-18.

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A Context: (from the Economic Profile initially)

A.1 Prepare a data resource with updateable information on external factors, a District business sector profile, and information relevant to understanding the changing pattern of economic development in the District.

A.2 Hold a database of businesses and contacts within the District; [3.1.3]

A.3 Identify significant places (locations) within the local Economy;

A.4 Identify significant organisations, roles and skillsets within the local economy (even if they are not based locally);

A.5 Identify significant economic infrastructure issues and opportunities [3.4]; and,

A.6 Assess local government’s legislative, governance and operational options for undertaking a role in peri-urban economic development. [3.4]

B Economic Sector Development:

B.1 Identify and recommend economic sectors and centres to which Council can provide practical assistance, and strategies to support or guide that development

B.2 Identify & monitor activities/developments that will bring in spending power, eg: B.2.1 Events (music festivals, harvest celebrations, special events (eg, the

Gumeracha Medieval Fair) [3.3.5] B.2.2 Accommodation (provision of camping facilities, facilities for RV’s, B&Bs,

motel accommodation, specialist accommodation) [3.3.7]; and B.2.3 Recreational (a Mountain Bike Strategy for the Hills, safe cycle routes

strategy, Adventure sports Eco-Tourism).

B.3 Investigate Council functions that can assist business, eg signage approvals and provision (consistent signage for businesses located off main tourism routes) [3.4]

C Business Groupings:

C.1 Identify and recommend preferred business groupings by industry, location, region, interest, etc to which Council can provide practical assistance, or which Council can form, to better represent the interests of one or more business communities, and strategies to guide the practical interaction between those organisations and Council

C.2 Recommend individuals or organisations to be involved in representative body to represent and advise businesses across the District.

D Programs, Activities and Policies:

D.1 Identify and recommend programs, activities and strategies which are within the budget and resources of Council and which are likely to have a practical and beneficial impact on local businesses and economic development generally, e.g. Totally Locally, Adelaide Hills Business Forum, Small Shop, Night-time Economy, Pop-ups, Incredible Edible Todmorden, Main Street programs, Small Business Development programs, regional branding programs.

D.2 Identify and recommend existing or potential business development programs that Council can support or initiate.

D.3 Identify topic areas in which Council should create or update its policies to provide practical and beneficial impacts on local businesses and economic development generally, and indicate the general nature of such policies.

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D.4 Identify options for Council to support and bring to local, national and international markets collective products from local food, fibre and wine producers [3.4.2]

E Lobbying and Co-operation:

E.1 Identify government departments or organisations which Council should lobby on behalf of local economic development generally, to undertake provision or upgrades of local economic infrastructure, etc., and strategies to guide such activities, such as for more park-and-ride places, and public transport;

E.2 Identify and recommend organisations with whom Council should form or maintain relationships.

F Branding and Marketing:

F.1 Identify and recommend preferred branding options and strategies for general and sector specific branding [3.3.2] [5.1]

F.2 Identify and recommend marketing methodologies, techniques and strategies suitable for Council’s resources [5.2]

Please note that not all of Council’s potential functions listed in section 3.3 above are addressed in

complete detail in the following Action Plan. As this is a new initiative of Council, these functions

will be implemented over time. The Action Plan below will be reviewed from time to time to reflect

changing conditions, lessons learned and available resources.

4. Action Plan

(Economic development) … can be a specifically undertaken activity, the same intended consequences might also

take place spontaneously, without any deliberate efforts to achieve them.

However, the fact that desired improvements do not often appear spontaneously

is the reason that the deliberate practice of economic development has arisen. Stewart Perry.

The numbers in square brackets refer to the relevant item in the AHC Strategic Plan 2014-18

Strategic Element Actions Priority Resp.

A Context: (from the Economic Profile initially)

A1 Prepare a data resource with updateable information on external factors, a District business sector profile, and information relevant to understanding the changing pattern of economic development in the District;

Action A.1: Update the AHC District Economic Profile as appropriate, to maintain an assessment of the current and foreseeable state of the District’s Economy.

A.2 Hold a database of businesses and contacts within the District; [3.1.3]

Action A.2: Prepare a database of the District’s businesses by name, address, contact phone numbers, email contact addresses, employees, Industry Code, Land Use Code, etc., to facilitate two way communication via a range of media.

A.3 Identify significant places (locations) within the local Economy;

Action A.3: Prepare a GIS layer of significant locations containing clusters of businesses and potential locations for businesses

A.4 Identify significant organisations, roles and skillsets within the local economy (even if they are not based locally);

Action A.4: Prepare a Register of business and other relevant organisations, including their role(s) and skillsets

A.5 Identify significant economic infrastructure issues and opportunities [3.4]; and,

Action A.5.a: Maintain a Register of significant economic infrastructure issues to be reported as part of an annual report on Economic Development activities.

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Action A.5.b: Maintain a Register of significant economic infrastructure opportunities

A.6 Assess local government’s legislative, governance and operational options for undertaking a role in peri-urban economic development. [3.4]

Action A.6.a: Assess local government’s legislative, governance and operational options for undertaking a role in peri-urban development. [3.4]

B Economic Sector Development:

B.1 Identify and recommend economic sectors and centres to which Council can provide practical assistance, and strategies to support or guide that development

Action B.1.a: Identify those parts of the local economy which differentiate it from other regional economies, and which have growth prospects beyond local autonomous growth, eg, horti-culture, viticulture (& related wine manufacturing) and tourism, and a highly skilled and qualified workforce. The World Heritage Bid is a key aspect of this Action, as it also involves working with local and State industry and community groups.

Action B.1.b: Investigate options for providing support for small business as part of industry sectors, within the resources and operations of local government. Options could include fee or rate holidays, etc.

B.2 Identify, promote and monitor activities/developments that will bring in spending power, eg:

B.2.1 Events (music festivals, harvest celebrations, special events (eg, the Gumeracha Medieval Fair) [3.3.5]

Action B.2.1.a: Liaise with Council’s Events Officer to monitor existing and proposed events within the Council district to gain information which can improve future events.

Action B.2.1.b: Prepare an ‘Events Potential Review’ to identify possible new events, event types, useful event venues, and review current events policies.

B.2.2 Accommodation (provision of camping facilities, facilities for RV’s, B&Bs, motel accommodation, specialist accommodation) [3.3.7]; and

Action B.2.2.a: Establish an internal ‘Tourist Accommodation Working Group’ to investigate location options for camping sites, administrative arrangements to issue permits, provision of facilities for camping, caravans and RV’s, eco-tourism and similar, and the management of camping and RV sites.

Action B.2.2.b: Undertake a review of accommodation in the District and identify locations, accommodation types and

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Strategic Element Actions Priority Resp. potential investors to improve the range and quality of the District’s accommodation offer.

Action B.2.2.c: In partnership with businesses, investigate opportunities for cross-promotion and linkages with other economic activities within/near the District.

B.2.3 Recreational (a Mountain Bike Strategy for the Hills, safe cycle routes strategy, Adventure sports Eco-Tourism).

Action B.2.3.a: Liaise with Council’s Sports and Recreation Officer in identifying economic development opportunities associated with existing and potential recreation activities and events.

B.3 Investigate Council functions that can assist business, eg signage approvals and provision (consistent signage for businesses located off main tourism routes) [3.4]

Action B.3.a: Investigate Council functions and staff that can assist business, with matters such as development assessment and regulatory services, designating a central person for agricultural forms of development in the DA team, investigating how best to ‘buy local’, reviewing assessment of changing land use types, reviewing the signage policy, or advocating for business internally.

C Business Groupings:

C.1 Identify and recommend preferred business groupings by industry, location, region, interest, etc to which Council can provide practical assistance, or which Council can form, to better represent the interests of one of more business communities, and strategies to guide the practical interaction between those organisations and Council

Action C.1.a: In the same form as Action A.2, prepare a database of contacts and significant members of business associations, town groupings, industry associations and similar which operate either wholly or partly within the District, to provide a directory of people and organisations relevant to Council’s Economic Development functions.

Action C.1.b: Investigate whether an organisation exists, or should be created, to best represent the District’s businesses to Council and to better represent the interests of one or more business communities, eg, an Economic Development and Business Advisory Group.

C.2 Recommend individuals or organisations to be involved in representative body to represent and advise

Action C.2.a: subject to the recommendations of Action C.1.b above, recommend individuals or organisations to be involved

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Strategic Element Actions Priority Resp. businesses across the District. in representative body to represent and advise businesses

across the District.

D Programs, Activities and Policies:

D.1 Identify and recommend programs, activities and strategies which are within the budget and resources of Council and which are likely to have a practical and beneficial impact on local businesses and economic development generally, e.g. Totally Locally, Adelaide Hills Business Forum, Small Shop, Night-time Economy, Pop-ups, Incredible Edible Todmorden, Main Street programs, Small Business Development programs, regional branding programs.

Action D.1.a: Identify and recommend programs, activities and strategies which are within the budget and resources of Council and which are likely to have a practical and beneficial impact on local businesses and economic development generally, e.g. Totally Locally, Adelaide Hills Business Forum, Small Shop, Night-time Economy, Pop-ups, Incredible Edible Todmorden, Main Street programs, Small Business Development programs, or regional branding programs.

D.2 Identify and recommend existing or potential business development programs that Council can support or initiate.

Action D.2.a: Investigate the provision of technical assistance to existing small businesses as a potential business development program that Council could support or initiate.

Action D.2.b: Investigate the creation of improved access to external markets as a potential business development program that Council could support or initiate.

Action D.2.c: Investigate improvement of local marketing and increasing passing trade (resulting from either single business direct or regional marketing/promotion) as a potential business development program that Council could support or initiate. Examples may include placing screens advertising local businesses in public places, or developing a local Taxi-style system to help young adults get to work or shop and the elderly to shop and socialise.

Action D.2.d: Investigate the development of cluster or sectoral co-operation or programs among local businesses as a potential

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Strategic Element Actions Priority Resp. business development program that Council could support or initiate.

Action D.2.e: Investigate the development of entrepreneur support as a potential business development program that Council could support or initiate.

Action D.2.f: Investigate any program, initiative or concept as a potential business development program that Council could support or initiate. For example, creating working groups to address the best use of Mount Lofty for local business, addressing the needs of cycle tourists, or night-time decorative lighting in the towns.

D.3 Identify topic areas in which Council should create or update its policies to provide practical and beneficial impacts on local businesses and economic development generally, and indicate the general nature of such policies

Action D3.a: Investigate how best to address ‘doing business in the watershed’ assistance. [3.2.1]

Action D.3.b: Investigate how to enable a suitable range of agricultural value-adding activities and on-farm small businesses to improve farm viability [3.2.2.]

Action D.3.c: Review the impacts of regulation on farm viability and agricultural production activities [3.2.3]

Action D.3.d: Identify models through which Council can make the most effective use of available resources to encourage, promote and support tourism in the District. [3.3.1] Practical options here are to work with or through local industry groups like the Apple and Pear Growers Association (APGA) in finding and managing such resources, and to prepare a list of infrastructure requirements to meet changing tourism demands.

Action D.3.e: Identify ways to functionally and promotionally link accommodation activities with tourist attractors, tourism businesses, farms and other rural activities [3.3.3]

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Action D.3.f: Investigate alternative water supplies as a way to reduce uncertainty resulting from the Water Allocation Plans.

Action D.3.g: Investigate implementation of Pest Free Status for the District.

D.4 Identify options for Council to support and bring to local, national and international markets collective products from local food, fibre and wine producers [3.4.2]

Action D.4.a: Identify options for Council to support and bring to local, national and international markets collective products from local food, fibre and wine producers.

E Lobbying and Co-operation:

E.1 Identify government departments or organisations which Council should lobby on behalf of local economic development generally, to undertake provision or upgrades of local economic infra-structure, services, etc., and strategies to guide such activities;

Action E.1.a: Identify government departments or organisations which Council should lobby on behalf of local economic development generally, to undertake provision or upgrades of local economic infrastructure, etc., and strategies to guide such activities.

Action E.1.b: Prepare a standing list of items, facilities and services required in the District and suitable for lobbying or co-operative programs, along with strategies to attract funding, support or assistance as appropriate. Examples include more park-and-ride facilities, bus/coach parking in tourist areas, a local Taxi-style transport service, a B-Double or large transport vehicle route, major transport route upgrades, tourist route upgrades as new attractions and businesses develop, public toilets and litter bins in tourist areas, and co-operative research with the tertiary sector.

E.2 Identify and recommend organisations with whom Council should form or maintain relationships.

Action E.2.a: Identify and recommend organisations with whom Council can work or co-operate to benefit local businesses and economic development generally. Examples could include

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Strategic Element Actions Priority Resp. working with APGA to have the Hills recognised as a Pest Free Area (and other issues), lobbying NBN to hasten the rollout of the NBN in this area, lobbying telecommunications companies to address mobile phone blackspots (which are problems for business and for bushfire management) and to improve broadband services generally to ADSL2+, working with government land holders to resolve interface issues, and lobbying NRM regarding farmer issues with the Water Allocation Plans.

Action E.2.b: Identify and review those economic development related organisations:

a) in which Council has an interest and which may benefit from altered composition, amalgamation or financing structure; [3.3.1]

b) in which Council should consider membership; c) from which Council can receive information, briefings or

analyses which will keep Council well informed on trends and approaching headwinds.

F Branding and Marketing:

F.1 Identify and recommend preferred branding options and strategies for general and sector specific branding [3.3.2] [5.1]

Action F.1.a: Identify and recommend preferred branding options and strategies for general and sector specific branding [3.3.2] [5.1]

F.2 Identify and recommend marketing methodologies, techniques and strategies suitable for Council’s resources [5.2]

Action F.2.a: Identify and recommend marketing methodologies, techniques and strategies suitable for Council’s resources [5.2]

5. Monitoring Progress

The Economy is complex, and understanding its changes can be difficult.

For the purposes of this strategy it is considered important that monitoring Information is;

readily available over time, and

easily understood by the wider community

At this early stage of the Strategy’s development, it seems practical to monitor high level

information which reflects the status and health of the economic community (see in the box below).

Over time, and as Council’s economic programs and projects develop, a wider range of information

is likely to be collected to track specific aspects of the District’s economy and the impact of Council

activity.

Regional Statistics

Gross Regional Product $1.228 b (2014) up 1.2% from 2013 – 1.32% of SA GRP

Local Businesses 3,975

Largest Industry Agriculture, Tourism; Manufacturing

Local Jobs 10,467 (2014) down 3.65% from 2013 – 1.28% of SA Jobs

Employed Residents 21,059 (2014) down 1.65% from 2013 – 2.63% of SA employees

Appendix One: SWOT Analyses by Sector Strengths Weaknesses Opportunities Threats

APPLES & PEARS

Cohesive industry

Optimistic about the future

Fruit is of generally high quality

Close to market

High calibre of grower

Core group of young growers

coming through

Geography and topography good

for quality fruit

Good access to labour

Lacking critical mass - to gain access to

export markets

High cost of production due to

topography

Labour costs - high due to minimum wage

and high relative to other competitor

nations (and related to topography)

Access to water

Access to capital - businesses are highly

geared

Lack of understanding of alternative

water sources particularly water trading -

a concern that any trading could be

confined to very small area sub-

catchment zones

Lack of understanding of the World

heritage proposal

New varieties

Export boost with Pest Free

Area status

Value-adding: juicing, cider

World heritage

Biosecurity: fruit fly outbreak, fire blight

Bird damage (20% lost in 2013) - has

been building through loss of natural

habitat (bushfires in Victoria etc)

Access by NZ and US producers

Decline in consumption of fresh fruit

Water levy

Climate change

Extreme heat

Bushfire

Reduced chilling (winter chill needed)

Reduced water availability

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CHERRIES

Close to market - Adelaide

Cherries are available for the

Christmas market

100 producers with only a few really

serious and 60 part-timers - potential to

undermine the brand

Department of Agriculture (State)

understaffed

Access to new water for expansion

Pest Free Status - will open up

niche markets and mass

markets (China)

Cherry Trail - continues to

grow

No market access which would lead to

massive oversupply. Interstate growers

are generally larger and can sustain a

price war longer than SA producers.

This could mean a loss for local

producers

Water Allocation Plan - based on a 2003

moratorium - tends to lock in status quo

and lacks flexibility of land use. The

potential impacts of WAPs do not seem

to be fully understood industry wide.

Alternative water access strategies are

not well formed, in particular any

notion of a water trading scheme.

MANUFACTURING

Proximity to Adelaide for markets

Proximity to Adelaide for labour

Access to major interstate freight

route

Successful conversion of the

Onkaparinga Woollen Mill into a

business park

Limited supply of industrial land for

expansion of existing businesses

Freight movement within the area

The name of the AH Business and

Tourism Centre (AHBTC) does not reflect

the services provided. It is a business park

only.

Asset management costs associated with

the AHBTC

Growing identity of Adelaide

Hills as a premium wine region

Planned population growth in

Mount Barker

Exchange rate appreciation

Variability of agricultural production

due to climatic conditions

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WINE & VITICULTURE

Terrior

Geographic location (climate,

soils, proximity to Adelaide)

Educated labour force

Clean and green image

Consistent Quality

Diversity of products

Biosecurity - there is a

commitment to address

biosecurity issues via NRM Boards

A recognised wine region

domestically

Complex regulatory factors and costs

Adelaide market is very competitive with

500 producers within 50 km radius

Small producers in meeting demand

Business Management Skills – particularly

planning, marketing and investment

funding

Terrain which necessitates hand picking

Compressed harvest period - which

creates logistics issues around storage

andcrushing

Not a well recognised wine region on the

eastern sea-board of Australia

Water Allocation Plans - uncertainty

regarding access to alternative water

sources

New markets inc. exports to

Asia

Tourism

Regional Branding

Local market development

Investment funding

Sales through on-line and

cellar doors

Exchange rates

Competition from within and outside of

Australia, particularly New Zealand

Sauvignon Blancs

Diminishing return on investment for

viticulture investment

Biosecurity

TOURISM

Geographic location (climate,

soils, close to Adelaide)

Most attractions are in the

Adelaide Hills Council area

Educated labour force

Skill shortages

Inconsistent customer service

Limitations around relative population &

small domestic market

Small producers in meeting demand

Restaurant Australia

Campaign

Regional branding

Local market development

Investment funding (local

Exchange rates

Climate change

Perception of bushfire risk by

potential visitors

Greater incidence of bushfires

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Clean and green image

Quality

Diversity of products

Biosecurity

Seasonality which generates

return visitation

Hahndorf is a recognised

attraction and good to leverage

off

Business management skills – particularly

planning, marketing and investment

funding

Fragmented consumer data

Close to Adelaide so fewer overnighters

Limited options for additional

accommodation - development

restrictions via the Watershed zoning

Market intelligence is limited

Public tourism resourcing is insufficient

and inbound)

World Heritage Listing bid

RDA is developing an

investment tool to attract

investment into tourism

Wine tourism has scope

for growth

Leveraging Adelaide Oval

redevelopment

Industrial tourism - micro-

breweries, food

production

Bushfires and business continuity

Competition from within and outside

Australia

Urban Development

Withdrawal of State Government

funding for Visitor Information Centre

SMALL BUSINESS

Close to Adelaide tourist market

Close to Adelaide airport and

cruise-ship port

Stirling markets as an attractor

Iconic attractions in townships

Relatively fragmented sector

geographically

Conflict between Stirling Business

Association and Stirling Markets

regarding branding

Limited expansion opportunities

Signage on the South Eastern Freeway to

various attractions

Lack of autonomous market growth

Carparking in Stirling

Population growth in Mount

Barker and Murray Bridge

Council premises as a lever to

improve carparking in Stirling

Risk of bushfire and impact on business

continuity

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