Nillumbik Economic Development Strategy 20112016
Prepared by Nillumbik EDS Community Reference Group
and Tim Nott economic analysis & strategy
Human Rights Charter Compatibility Statement
In accordance with the Charter of Human Rights and Responsibilities Act 2006, the
Nillumbik Economic Development Strategy is assessed as being compatible with the human
rights protected by the charter. This assessment is based on a Statement of Compatibility of
the Human Rights protected by the Charter that are relevant to the Policy.
Executive Summary
In 2003, Nillumbik Shire Council adopted its first Economic Development Strategy as the
basis for economic development in the Shire. This revised Strategy applies to the six year
period 2011 to 2016.
Council, through its Council Plan 2009-2013, is committed to sustainable economic
development in the Shire as one of its four key Goals, “Our Economy”. The Council Plan
has nine specific objectives relating to the areas of Economic Development, Commercial
Precincts and Townships and Green Wedge Tourism and Agriculture. These objectives,
together with several strategic indicators, have been addressed in the appropriate sections
of this Economic Development Strategy.
To achieve sustainable development Council’s economic actions are guided by the need
to complement Council’s other programs. Council’s economic development activities can
make a significant contribution to key social, environmental and governance objectives.
This Strategy is designed to enhance the wellbeing of our community by encouraging the
development of a vibrant and sustainable local economy that is based on our key
advantages, including our magnificent environment and the high level of skills and abilities
of our residents and business people.
Council acknowledges the many stakeholders (listed in the acknowledgements section)
who have contributed to the development of this Strategy and thanks them for their
contributions.
A Vibrant Local Economy
Performance measures for a vibrant economy include:

Increase the number of Nillumbik residents working locally through the creation of
employment opportunities and a reduction in commuting

Increase the presence of high-skill sectors that will generate income for the area

Improve local services for residents and businesses

Grow the rate of business formation

Increase the rateable value and number of commercial and industrial properties.
This Strategy is organised into five inter-linked themes:
1. Activity Centres – revitalise our commercial heart: Maximise retail spending and
reduce leakage, increase jobs and improve living opportunities in Nillumbik’s activity
centres.
2. Business Development – focus on success and growing the base: Assist business
formation, longevity and networks.
3. Tourism – nature, culture, food and wine: Develop our attractions and improve visitor
infrastructure, cross promotion and networks.
4. Arts – celebrate our creative heritage: Capitalise on the creative heritage of our Shire
and position it as a continuing centre for the arts.
5. Rural / Green Wedge Economy – make the most of our green wedge environment:
Create opportunities for sustainable agriculture and improved bushland management.
Support “smart green” industries more generally.
Priority Actions
Council operates in an environment where the delivery of services to the community is
largely determined by the availability of resources. To enable Council to deliver the actions
outlined in its Economic Development Strategy, it must therefore set priorities that will be
established each year and set out in an Annual Implementation Plan.
The Implementation Plan will identify: the timelines and resources required to implement
actions; external funding opportunities; and the consultation that is necessary with
stakeholders and the community.
The Major Projects and Business Services Unit of Council will be responsible for managing
the Implementation Plan and undertaking many of the actions, including coordination with
other Council departments, external stakeholders and the community.
Based on the actions outlined in this document, the initial priorities are:
1. Establish an Economic Development Advisory Committee and reporting process as
outlined in this Strategy.
2. Continue to support business organisations in the Shire including traders associations,
Nillumbik Tourism Association and the HomeBiz/SmallBiz Network.
3. Continue to support tourism and business development programs such as Farmers’
Markets, the Artists Open Studios and rebuilding businesses affected by bushfire.
4. Undertake a study to assess the feasibility of establishing a regional art gallery in the
municipality, including potential opportunities to support the role of Monsalvat.
5. Assist with the development of new tourism products such as high quality eco
accommodation that is integrated with tourism related offers, including the potential for
a landmark eco hotel.
6. Continue to implement Major Activity Centre Structure Plan recommendations for
Eltham and Diamond Creek.
7. Work with property owners, developers and business associations to encourage
investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge
as well as appropriate investment in smaller townships and centres.
8. Establish a Green Business Network that is consistent with the delivery of Council’s
economic sustainability goals and objectives.
9. Continue to develop agribusiness networks and improve connections between rural
producers, their industry groups and customers.
10. Ensure that any review of the Planning Scheme and the development of Township
Strategies, considers existing impediments to sustainable economic development and
appropriate tourism related activity in rural areas, and identifies land for the potential
establishment of additional light industrial activities.
11. Develop a program that enables Council to provide information and support to
enterprises seeking to invest in the municipality, including a strategy for promoting
Nillumbik as a preferred place to do business.
12. Explore funding opportunities that are available to develop tourism, the arts, and
agribusiness on a local and regional basis, including potential marketing alliances with
adjoining municipalities and regional organisations.
These actions are expected to generate the largest number of jobs in the short and long
term based on a strategic assessment of economic opportunities in the Shire.
1
Introduction
1.1
About this Report
This Economic Development Strategy (EDS) for Nillumbik Shire Council has been
prepared to guide Council’s work on economic development over the next six years.
The Strategy provides:

A discussion on Council’s role in economic development

Identification of objectives for economic development which are compatible with
Council’s overall goals

Issues and opportunities for local economic development

Actions that are necessary to deliver economic development.
An economic profile and an assessment of opportunities for economic development are
provided as appendices to this Strategy.
1.2
What is Economic Development?
“Economic development” can have a variety of meanings. For firms competing in the
global marketplace, it means an improvement in the factors of production and better
returns on investment. For those without jobs, it means employment growth; for working
families it means better opportunities to build a secure future; for many others it may
simply mean an improvement in community goods and services.
In the context of a local economy such as Nillumbik, economic development means a
sustainable increase in the general level of resources commanded by households,
businesses and the community as a whole.
The level of available resources is determined by:

The level of income from wages, investments and benefits

The level of general prices

The distribution of resources amongst the community.
A sustainable increase in resources involves:

Encouraging local investment

Recognising the importance of “place”

Consideration of environmental issues.
1.3
Why should Council undertake Economic Development?
After all, doesn’t economic development happen as a result of investment mainly by
the private sector and policy decisions of State and Commonwealth governments?
It is certainly true that Council works within a broader economic and policy context.
However, Council is the only agency with a mandate to work for the Nillumbik community
as a whole and to exclusively look after Nillumbik’s interests. Whilst many in Nillumbik
enjoy good levels of prosperity, the local economy has a number of challenges that require
attention if the area is to be sustainable and prosperous into the future.
These challenges include:

Recovery from bushfires by supporting affected businesses to re-establish and
reducing risk for businesses located in the green wedge

High levels of commuting, which are financially and socially expensive for families and
contributes to an outflow of retail and other spending

A rapidly ageing population in which the population aged 60 or more is growing at 5%
per year compared with 0.5% for the Shire population as a whole

Rural lands that have capacity to increase economic output in the areas of tourism and
agriculture.
Many of these and other challenges need to be addressed by the community as a whole
and therefore by Nillumbik Shire Council.
Council does have an impact on economic development, deliberately or otherwise. For
example, because of the decisions it makes on investment and development approvals.
Furthermore, through its information systems, business support programs and advocacy,
Council has the opportunity to positively influence outcomes through supporting local
initiatives and advocacy to higher levels of Government. It is therefore appropriate for
Council to ensure that its decisions are consistent and lead to desired outcomes overall.
“Sustainable economic development generates increased resources for the community as
a whole that can be used to conserve and enhance the environment. Without local
economic development, resources to provide community support services, conserve
species and ecosystems, to manage pests and to tackle landscape degradation will be
diminished.”
1.4
The Roles of Council in Economic Development
Council is the largest employer in the Shire and across its whole range of programs is a
significant investor in the municipality. However, its most important roles in economic
development are:
1. Leadership and strategic planning
Council has a unique capacity to bring together diverse community interests and exercise
leadership for the benefit of existing and future residents. In some cases, this is a statutory
responsibility, as in the development of the Council Plan, land use planning and
development controls.
Strategic planning for economic development should provide clear directions for all
investors in the municipality. Council should assist a reasonable level of confidence that
factors under local control will be secure for investors at the householder and enterprise
level and instil confidence that these factors will improve over time.
2. Attracting and retaining investment
As the local community leader, Council is able to undertake and coordinate actions that
will attract new investment and assist in the retention of investors. There is a balance to be
struck between improving the existing economic activities and encouraging new activities
that should be part of the strategic planning process.
Examples of ways in which Council can assist existing businesses include:

Facilitation of networks and alliances which can lead to better supply chain
management, the spread of new technology and techniques, better market information
and improvement in skill provision

Infrastructure improvements to reduce costs and open up new profit possibilities

Facilitating appropriate development that enables growing businesses to remain in the
Shire

Advocating to other spheres of government for investment and policy change

Facilitation of business skills development (particularly for small business)

Attraction of new skilled residents through the creation of attractive places to live and
recreate

Council can also have a role in attracting new enterprises through policies to
encourage new investment in a number of forms:

Background information and promotion establishing the benefits of Nillumbik as a
preferred location for investment

Providing “One Stop” advice and assistance to enterprises that have expressed an
interest in investing in Nillumbik

Proactive sourcing of investment in strategic target areas.
3. Improving the asset base
An improving base of physical assets (infrastructure, buildings and environment):

Reduces costs for businesses (for example, by reducing travel times through road
improvements)

Increases sales (by potentially increasing the number of visitors to the area)

Generates higher property values and gives many in the community the ability to
leverage more resources for investment and consumption

Encourages investment, because the rate of capital growth is a criterion for most
investors.
An improving base of human capital is also attractive to investors. Human capital
encompasses:

The technical skills of the labour force

The entrepreneurial ability of residents and business people

The vibrancy and adaptability of social networks.
Council can facilitate many aspects of developing human capital. However an important
issue for Nillumbik is that a large proportion of its existing human capital leaves the Shire
each day to work elsewhere.
4. Provision of community goods
Economic development has been defined here to include an improvement in available
resources for residents bearing in mind that more than half of all local residents such as
retirees, welfare recipients and children are not in the workforce and may not benefit
directly from job creation.
Therefore, it is important to understand that actions, which improve the asset base, may in
some cases have other effects such as higher rents and prices. Although State and
Commonwealth Governments are mainly responsible for welfare payments, Council does
use some of the resources at its disposal to ensure access to public goods and services.
These have traditionally included free and/or subsidised services such as libraries,
swimming pools, community transport, home and community care, community centre
services, immunisation, community festivals and events etc. Council can also respond to
particular areas of local need, and these could include support for community housing
initiatives, older people’s recreation needs, arts access, mental health support and so on.
In summary, this discussion on the most important roles in economic development serves
to illustrate that economic development initiatives cover the entire range of Council
services and that a strategic approach to economic development will involve the whole of
Council.
2
Council Objectives
The Economic Development Strategy is just one facet of Council’s overall program to
deliver its vision for Nillumbik. Council has a range of other policies and strategies to
achieve environmental, social and governance objectives. These are guided by the
Council Plan 2009–2013 (Nillumbik Shire Council, 2009).
The diagram below illustrates how the four key objectives of the Council Plan interact to
produce sustainable development.
Actions on the local economy need to be integrated with other Council programs to deliver
sustainable development. This means that Council will invest and encourage investment
by others in creating a vibrant local economy that is based on our key advantages
including our magnificent environment and the high level of skills and abilities of our
residents and business people.
Council’s economic development effort will therefore engage in activities that are
consistent with Council’s key social, environmental and governance objectives.
Robust community discussion about proposed activities and investments will continue
since the weight and interpretation we place on these objectives will vary over time.
However, our sustainable Economic Development Strategy provides a framework to guide
our decision making; for reaching acceptable compromises and working towards win-win
outcomes.
3
Strategic Directions
3.1
The process
In a situation of constrained resources, Council must focus its attention on the key
economic issues facing the municipality. The process that has been undertaken in
determining the key issues and opportunities has included:

Statistical review of the current state of the Nillumbik economy

Review of existing regional policies and programs

Meetings of a community reference group formed to provide input to the Economic
Development Strategy comprising councillors and representatives of traders and other
business organisations

Discussions with a variety of individual business operators in Nillumbik

Analysis of the opportunities arising from strengths, weaknesses and threats of the
local economy

Discussion of key opportunities and development themes at a workshop attended by a
wide cross section of stakeholders early in 2010.
In this way, a range of stakeholders have been involved in the development of this
Strategy. The Economic Profile of Nillumbik is provided as Appendix 1 to this report.
Appendix 2 provides the SWOT analysis.
3.2
The Strategy
A vibrant Local Economy
Performance measures for a vibrant economy include:

Increase the number of Nillumbik residents working locally through the creation of
employment opportunities and a reduction in commuting

Increase the presence of high-skill sectors that will generate income for the area

Improve local services for residents and businesses

Grow the rate of business formation

Increase the rateable value and number of commercial and industrial properties.
In addressing these economic measures, Council is mindful that its actions should be
compatible with and will contribute to the delivery of its environmental, social and
governance objectives.
The Strategy is organised into five inter-linked themes:
1. Activity Centres – revitalise our commercial heart: Maximise retail spending and reduce
leakage, increase jobs and improve living opportunities in Nillumbik’s activity centres.
2. Business Development – focus on success and growing the base: Assist business
formation, longevity and networks.
3. Tourism – nature, culture, food and wine: Develop our attractions and improve visitor
infrastructure, cross promotion and networks.
4. Arts – celebrate our creative heritage: Capitalise on the creative heritage of our Shire
and position it as a continuing centre for the arts.
5. Rural / Green Wedge Economy – make the most of our green wedge environment:
Create opportunities for sustainable agriculture and improved bushland management.
Support “smart green” industries more generally.
These themes are described in more detail in the following sections. Each theme has a set
of actions for Council and others involved in economic development in Nillumbik.
4
Activity Centres
4.1
Existing Situation
Activity centres are where most of the jobs in Nillumbik are located. Activity centres
provide shopping, commercial and community services. They are meeting places for the
Nillumbik community and often showcase the municipality to the outside world. It is likely
that investment in activity centres will make the biggest impact on the local jobs deficit.
Two of Nillumbik’s centres have been designated Major Activity Centres under the
metropolitan planning strategy (Department of Sustainability and Environment, 2004):
Eltham

24,800 sqm of retail space including three supermarkets and a wide range of specialty
shops

12,000 sqm of office space

A primary trade area with over 23,000 residents and a main trade area (primary and
secondary trade areas combined) with over 50,000 residents

Retail escape spending from the main trade area of 64% (in 2004).
[Figures from Essential Economics, 2009]
Diamond Creek

13,000 sqm of retail space including two supermarkets and a range of specialty shops

5,100 sqm of non-retail activity space

A trade area with approximately 23,000 residents

Retail escape spending from the trade area of 70% (in 2006).
[Figures from SGS, 2006 and Essential Economics, 2009]
In retail terms, Eltham and Diamond Creek provide extensive convenience shopping
(groceries, pharmacy goods, newsagents, hairdressing etc.) and a limited range of
shopping for comparison goods (clothes, appliances, books, jewellery, furniture etc.).
Within the hierarchy of retail centres, they are community centres (or large neighbourhood
centres). Importantly, both these centres are serviced by rail and have good public
transport connections to the CBD.
Neighbourhood and Local Convenience Centres providing convenience retailing include:

Hurstbridge (which also has a potentially strong tourism function)

Research

Bolton Street

Apollo Parkways
A range of local centres provide top up convenience goods and services as well as some
tourist functions (markets, cafes and restaurants etc.):

Christmas Hills

Kangaroo Ground

Panton Hill

Smiths Gully

St Andrews

Wattle Glen

Yarrambat.
4.2
Issues and Opportunities
4.2.1
Retail escape spending
Retail escape spending represents a loss of jobs to the local economy. The extent of
escape spending is a measure of how well the local economy provides goods and services
to its residents.
In most metropolitan municipalities, escape spending is of the order of 40% to 60%. The
latest estimate of retail escape spending from Nillumbik is 76%; that is, 76% of all retail
spending undertaken by Nillumbik residents is spent in shops located outside the Shire
(Essential Economics, 2009).
Essential Economics (2009) has produced scenarios indicating that, by 2020, if retail
escape spending was reduced to 65%, Nillumbik could accommodate a further 32,000
sqm of retail floor space. This kind of increase would be likely to generate of the order of
1,000 jobs (and by comparison, in 2006 Nillumbik had a net export of nearly 2,000 workers
in retailing).
Presently residents are able to access large shopping centres within a relatively short
distance of the municipal boundaries at Greensborough (1.5km), Plenty Valley (5.5km),
the Pines (5km) and Doncaster (5km). Each of these larger centres has department stores
(Myer or David Jones) and/or Discount Department Stores (DDS) such as Kmart, Target or
Big W. These types of stores are big drawcards for shoppers; and their presence is a
trigger for investment by a wide range of smaller chain stores.
The usual catchment threshold population for a DDS is around 50,000 people. This would
make Eltham, with its catchment population of 51,000, a notional candidate for a DDS.
However, Eltham has several problems as an investment location. Firstly, the competition
in the wider region is very strong with Westfield at Doncaster now one of the largest
shopping centres in Melbourne, with two department stores, two DDS and a very wide
range of specialty stores.
Secondly, there is little physical space in Eltham to accommodate a large new store. A
new DDS might be up to 8,000 sqm, with perhaps twice that area required for car parking,
landscaping and external circulation. Amassing such a site would require major
redevelopment within the centre.
Thirdly, a major new retail drawcard within the existing constrained centre could create
significant increases in traffic congestion.
A redevelopment of some of the existing components of the Eltham town centre could
provide a welcome upgrade to the urban design of the centre. However, for the reasons
given above, achieving a DDS in Eltham presents a significant challenge. Nevertheless,
there are ways in which Eltham can capture more retail spending including:

Attracting investment in non-food comparison goods shops, concentrating on
independent retailers for which investment is not triggered necessarily by the presence
of larger stores

Broadening the range of high quality groceries through a market precinct to
accommodate a wide range of greengrocers, butchers, delicatessen etc. and/or an
upmarket supermarket (such as Leo’s Fine Foods)

Creating a recreational goods precinct (books, arts and crafts, outdoor equipment,
cycles etc.)

Encouraging dining and entertainment functions creating a night time economy.
These actions would also require further retail space. It is important that the centre
expands slightly in order to accommodate new retail development. Such expansion can be
achieved whilst retaining a compact and walkable centre. Redevelopment within and on
the periphery of the centre should include retail space at ground floor as part of the
development mix.
A review of the role and retail mix in all the activity centres of the municipality would lead to
improved planning by public and private sector stakeholders. This could be achieved
through developing a strategy in conjunction with the relevant traders’ groups.
It is recognised that there is particular value in encouraging businesses owned by local
residents. Local owners are likely to be more committed to the community they live in and
a greater proportion of profits are likely to be reinvested locally.
4.2.2
Urban Design
The two main activity centres of the municipality provide a range of excellent shops and
services. However, the design of the centres does not always promote the sense of place
consistent with the “Green Wedge Shire” in their layout or building forms.
This is strongly recognised in the Eltham Structure Plan which discusses the need for the
centre to be:
“A celebration of Eltham’s art, cultural and historic heritage; and a place that encourages
and supports, through high quality urban design, social interaction and community life”
(Hassal, 2004).
The economic importance of good urban design is clear. Good urban design in an activity
centre:

Generates loyalty by catchment residents

Attracts visitors from beyond the catchment

Creates interest from investors

Is based, in part, on efficiency of movement and use of resources, which reduce costs
for users and investors.
In seeking investment for these centres it is important that Council insists on high quality
design and respect for heritage; to do otherwise will have poor economic outcomes.
Council encourages high quality design in activity centres through its urban design
guidelines. Council could also encourage high quality architectural design by considering
the use of competitions for key Council sites that are capable of development.
4.2.3
Visitors
For several of the activity centres of the Shire, spending by visitors is an important
component of overall sales. Tourist spending supports a higher level of service in local
centres than could be supported by the expenditure of residents alone, particularly
services such as cafes and restaurants.
Hurstbridge is nominated by many as an attractive centre which could benefit from further
tourism development (and this has previously been recognised by Council in the
Hurstbridge Township Strategy, Nillumbik Shire Council, 2002). Tourism development in
centres tends to be an incremental process.
Further development in Hurstbridge could begin through improved coordination of opening
hours at weekends and when events are taking place in the wider area (the monthly
farmers market and the market at St Andrews, for example).
Tourism in other activity centres can be hampered to some extent by the land use zoning.
In particular, land use zoning in some small townships does not allow otherwise
appropriate investment to service residents or visitors. Council will work with local
communities to prepare township strategies. The issues under investigation will be the
demand for township zones in the smaller townships of the municipality to indicate where
commercial development and service provision might occur.
4.2.4
Entertainment
The Shires’ activity centres have a range of cafes, restaurants, bars and hotels as well as
indoor sporting facilities, libraries and galleries. There are opportunities to extend the
provision of entertainment in our centres, developing the evening economy and
broadening the appeal of centres, particularly for younger people.
Council can investigate the following:

Provision of a commercial cinema at Eltham (a 2 to 5 screen complex may be viable
here)

Encouragement of regular part-time cinema in community buildings throughout the
municipality

Encouragement of live music venues

Encouragement of appropriate regular street entertainment i.e. street busking etc.
4.2.5
Housing
Provision of more housing in and around Major Activity Centres is State Government
Policy. There are also benefits to the Nillumbik economy.
Several local employers have suggested that attracting young workers is becoming more
and more difficult because:

Housing is becoming more and more expensive in the Shire

Young workers tend to favour proximity to entertainment, nightlife and other services.
These workers may well find that an apartment in Eltham or Diamond Creek can provide
inexpensive housing close to services.
The structure plans for Eltham and Diamond Creek centres already identify areas where
medium and higher density housing is to be encouraged. Potential activity centre
developers can be reminded that housing is a preferred use. In addition, the viability of
multi-storey housing development should be tested by research from time to time since
this is an evolving market where the lack of previous experience in outer suburban areas
generates some uncertainty that may otherwise deter potential investors.
4.2.6
Office Development
Offices are a key component of activity centres, often providing the majority of the jobs.
Given the white-collar labour force in Nillumbik, the provision of more offices locally will be
an important factor in reducing the need to commute outside the Shire. The fundamentals
are in place for growth in the provision of more offices, particularly small scale offices in
Eltham and Diamond Creek:

Major Activity Centre location

Rail and bus connections

Substantial white-collar labour force with a high proportion of managers and
professionals (which is the group most likely to start a small office-based enterprise)

Large home based business sector, a proportion of which may wish to expand into
commercial premises

Low vacancy rate of existing office stock and no vacant shop fronts. The recognised
demand for offices is mainly from small firms and a certain amount of speculation about
total demand may therefore be required on the part of potential developers. The
provision of multi-unit offices is more risky than development for a single tenant.
Council can work with real estate agents and the property development industry to
encourage the provision of multi-unit offices in the key activity centres.
If investment in additional office provision proves difficult to attract, Council could
investigate the potential of assuming some development risk either through direct
development or in partnership with others, acknowledging that this not normally part of
Council’s core business and would therefore require a strong ratepayer endorsement.
The feasibility of attracting larger office developments, with an alignment to employing
local residents should also be investigated.
4.2.7
Industry
The activity centres are also the location for the majority of industrial land in the Shire. In
general, industrial land accommodates light industry, service businesses and, increasingly,
retail development.
The location of industrial land in or beside activity centres has meant that genuine
industrial activity has tended to be priced out by the more dynamic retail sector. There is
now no vacant industrial land remaining in the Shire, and no space for further services
such as automotive repairs, joinery, storage or transport.
These types of activities are important for residents and other businesses. Without
appropriately zoned land, Council may find that, increasingly, light industrial activities will
be forced into residential properties.
Full scale industrial activities, other than processing activities on rural land that are allowed
by the planning scheme, will not be encouraged. However, Council should continue to
seek suitable sites for small scale light industrial or service businesses since these add to
the quality of life for local residents and their lack generates longer car journeys. Suitable
sites are likely to be:

Close to main roads (although not necessarily on main roads)

On the fringe of towns, sufficiently removed from housing to reduce amenity issues

Sufficiently large to accommodate several businesses (that is, Council will not
encourage ad hoc zonings for particular businesses).
Generally, suitable sites will be found within the Urban Growth Boundary (UGB). However,
in conjunction with the preparation of Township Strategies and reviews of the Nillumbik
Planning Scheme, consideration will be given to providing opportunities for service
businesses that meet local community needs in the Shire.
4.2.8
Activity Centre Strategy
The activity centres of the Shire form a network which is interdependent; growth or decline
in one centre may well affect the prospects of other centres.
Council will prepare an overall development strategy for its activity centres network that
identifies the role, the growth prospects and the vision for each centre. The work should
provide more than a retail strategy (although retailing is a key driver of development) but
should look at all aspects of the service offering of centres.
The activity centres strategy should draw heavily on the existing structure plans for
individual centres and on the work of the traders groups in each centre.
A component of the Activity Centres Strategy should examine the transport network
serving centres. Public transport services in particular can be improved to enable better
connections between outlying towns and villages with the larger centres of the Shire.
A useful input to the strategy would be a survey of centre users, including the profile and
origin of visitors to the Shire
4.2.9
Support for Traders’ Groups
Traders’ organisations are present in each of the larger centres: Eltham, Diamond Creek
and Hurstbridge. These organisations will be at the heart of improvement strategies for
activity centres. Traders’ organisations can carry out a wide range of activities including:

Promotion and marketing of centres

Event organisation

Trader and staff training (customer service, merchandise display, stock control,
personnel management, internet sales strategies, etc.) including provision of
apprenticeships

Business awards

Representing traders to Council and to other spheres of government

Urban design and streetscape improvements.
Traders groups in Nillumbik do, or have done, many of these activities over the years. All
of these activities can have economic benefits for the wider community beyond the
individual traders involved. The scope of action depends on the resources available and
the management capacity of the group.
Council will continue to provide assistance to traders groups where this assistance has
wider economic benefits. This assistance will include continued administration and
management of special rates schemes.
Whilst the mixed use centres in Nillumbik have many advantages, they do also have
disadvantages compared with single operator centres where management is able to
control the retail mix, positioning of retailers, and promotion of the centre as a whole.
A centre manager in strip shopping centres can overcome some of these disadvantages
by working to an agreed business plan. Such a centre manager can create better
coordination of promotion and training and has the time to work with individual traders on
business planning and development issues. Council can work with traders groups on
funding for centre management.
4.3
Activity Centres Action Program
The following action plan on activity centres is designed to facilitate the expansion and
enhancement of the commercial economic base and local employment opportunities:

Substantially increase the number and breadth of jobs and services in Nillumbik’s
activity centres

Improve the long term viability of centres and apply a strategic approach to their
development

Support the traders groups to take a more active role in centre management and
development.
Other themes also have actions relevant to activity centre development.
Actions
Work with property owners, developers and business associations to encourage
investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge as
well as appropriate investment in smaller townships and centres.
Consider instituting an architecture and design competition to encourage good urban
design in activity centres.
Continue to implement Major Activity Centre Structure Plan recommendations for Eltham
and Diamond Creek.
Ensure that any review of the Planning Scheme and the development of Township
Strategies, considers existing impediments to sustainable economic development and
appropriate tourism related activity in rural areas, and identifies land for the potential
establishment of additional light industrial activities.
Develop township strategies for small towns and investigate the demand for development
in small town centres.
Investigate the feasibility of providing a cinema within the Eltham activity centre.
Encourage live music in activity centres.
Provide ongoing feasibility assessment of small offices and multi-unit housing in Eltham
and Diamond Creek.
Undertake an audit of the supply and demand for industrial land and continue to seek land
that can be zoned for small scale light industrial activities.
Undertake an activity centre strategy.
Lobby for improved public transport connections between rural towns and villages and the
larger centres of the Shire.
Continue special rate (and other funding) for centre management, business planning and
development.
5
Business Development
5.1
Existing Situation
There are around 6,000 businesses in the Shire according to the Australian Bureau of
Statistics (ABS, 2008). The industries with the largest number of businesses are:

Property and business services – 1,600 or 27% of the total

Construction – 1,570 or 26%

Retail trade – 530 or 9%
This industry structure reflects the high proportion of professionals and trades people with
their own small business.
Approximately 90% of businesses in the Shire, or 5,400, have fewer than five employees.
Judging by figures from the State as a whole, 60% or more of all businesses in Nillumbik
are operated from home.
The Shire has a number of business organisations, including: traders’ associations in
Eltham, Diamond Creek, Hurstbridge and Research; Nillumbik Tourism Association; and
the HomeBiz network, which represents and encourages home based businesses.
5.2
Issues and Opportunities
5.2.1
Infrastructure to Work from Home
Home based business is very strong throughout the Shire. It is particularly important in
rural townships (for example, recovery efforts following the bushfire disaster in 2009 found
that up to 70% of homes in Strathewen accommodated a business). However, in some
rural areas, mobile phone coverage and broadband connections are poor or lacking
altogether.
This has an adverse impact on the efficiency and profitability of enterprises and may be
preventing the formation of certain types of home based businesses in some rural areas.
Improvement in technology, and in particular broadband services, will increase
opportunities for local businesses to develop in the Shire. This can increase local
economic activity and reduce commuting. Council will monitor opportunities to support this
trend, including advocating as part of its regional alliances for improved broadband
services.
Council will continue to advocate for improved telecommunications services throughout the
Shire and particularly in rural areas.
5.2.2
Bushfire Recovery
Following the bushfire disaster in 2009, Council, in conjunction with the Bushfire Recovery
and Reconstruction Authority, has provided assistance in the form of mentoring and
strategic planning support for many small business operators in affected areas. Ongoing
assistance will be required by local communities to rebuild commercial infrastructure and
economic resilience. Council will continue to work with local communities providing access
to training, assistance and networking.
5.2.3
Green Business
There is a strong interest in Nillumbik in undertaking business that has a clear
environmental benefit. Any business can be operated with an eye to sustainability as a key
consideration but here “green business” is taken to mean business which is directly related
to the management of energy, resources or ecosystems.
Such businesses include:

Design and installation of renewable energy systems

Design and installation of water saving technologies

Environmental audits and energy and water consulting services

Building and urban design and landscape architecture

Ecosystem research

Sustainable farming systems.
These types of business have a strong presence in Nillumbik and are a match for the
occupational structure of the Shire, which has a high proportion of both trades people and
professionals.
At present, much of the green business sector is reliant on markets created by legislation
and government subsidies. Decisive market advantages will accrue to firms that are able
to introduce systems that capture economies of scale, that work with or without subsidies,
that are able to introduce new systems that better meet (or define) customer needs, and
which are able to be flexible in responding to demand.
These kinds of advantages may be generated by a cluster of businesses that collaborate
and compete in overlapping markets. Development of business clusters has emerged as a
significant tool of economic developers over the past decade or so. Locations with
successful business clusters in growing industries are likely to have strong growth in high
skill jobs.
There are several ways in which Council can assist in the formation of a green business
cluster in Nillumbik. At an elementary level, Council can identify locally based green
businesses and put them in touch with one another through an electronic newsletter.
Formation of a green business network is a next step and would allow local small firms to
act as a larger virtual entity, collaborating on developing and promoting their services.
Edendale Farm, Council’s environment resource centre, could form a hub for green
businesses.
If demand warrants, a green business incubator or accelerator could be developed as a
means of concentrating green business expertise in a single location. This concentration
can create the type of heightened collaboration/competition that leads to innovation and
which generates economies of scale for service providers (including provision of training).
These factors lead to industry development and more jobs.
5.2.4
Promoting Home Based Business
Home based businesses are an important source of local jobs. The relatively skilled nature
of the labour force in Nillumbik combined with the expansive housing stock make home
based business an option for many workers.
However, there are difficulties in operating from home, including for some operators:
Social isolation
Lack of access to peer review
Inability to maintain professional development
Lack of business management skills
Difficulties in marketing and market access.
Council has funded the establishment of the Nillumbik HomeBiz Network to help operators
overcome these problems. More can be done to promote the network and the idea of
working from home in Nillumbik.
For example, Council can promote success stories about local home based businesses in
Council newsletters and on the Council information page in the local newspapers. Council
can also provide links from its webpage to local business organisations (and thereby, to
individual businesses).
Council can promote the Shire as a location for home-based businesses to target groups
outside the municipality. As well as the magnificent environment, these groups will be
attracted by excellent amenities, education and health services. Council will work with
relevant agencies to promote and improve services in activity centres (see previous
section) as well as education and community health services.
5.2.5
Lifelong Learning
There are clear economic advantages for places that have a culture of lifelong learning.
Business operators develop and capitalise on new techniques earlier than their
competitors; workers are able to learn and be rewarded for developing new skills; and
communities are able to develop quicker responses to challenges or opportunities.
Council will work with existing and potential education providers to encourage lifelong
learning practices. These will include expansion of business related courses at Council’s
Living and Learning Centres and investigation of the provision of IT learning infrastructure
in locations that are accessible to young people.
Council will support the development of new educational infrastructure, particularly further
and higher education. Also, Council will bring together education providers to understand
how the local education sector can be expanded to generate new economic opportunities.
5.2.6
Integrated Approach to Planning and Major Projects
An integrated approach to planning and major projects within the Shire will improve the
benefits captured for the community. Council will develop appropriate working teams
combining staff members with relevant expertise to assist the coordination deliver major
projects.
5.2.7
Business Attraction and Retention
A key role for any local government economic development unit is working with new or
existing businesses that may be considering investing in the municipality. Such businesses
may require assistance with:

Site selection

Development approvals

Other Council or Government regulations

Business planning or mentoring

Market development and contacts with suppliers.
The Business Development and Tourism Unit at Council should respond to these types of
enquiry, at least as a first port of call, knowing where to source appropriate assistance as
required. At least some of these information and contact services can be provided through
a web based business portal.
In addition to responding to business enquiries, there is a role for Council to seek out
appropriate business investment, marketing the municipality to businesses that can take
advantage of the attributes of the Shire as well as marketing to enterprises that might fill a
gap in the local business mix. This may be assisted through development of a business
opportunities register available on the web.
Council will need to develop appropriate publicity material to assist with the promotional
effort.
5.2.8
Business Organisation
There are a range of organisations representing business in the Shire. Whilst these each
have their own interests and constituencies, there are times when a single voice or point of
contact could be useful:

Responding to Council or other spheres of Government on common issues

Disseminating business information

Coordinating Shire wide networking opportunities

Publicising and running business awards and business breakfasts

Creating a viable market for business development training

Common purchase programs.
Council will facilitate a business summit involving the various organisations to discuss
these and other issues of common interest.
5.3
Business Development Action Program
The following action program recognises that small business is, and will remain, the
principal generator of jobs in the municipality.
The action plan is designed to:

Support and improve the capacity of business to operate and be successful in the Shire

Encourage the formation of a green business cluster

Attract appropriate business investment

Strengthen the collective organisations of business.
Actions
Promote the concept of ‘intelligent communities’ including advocacy for improved
broadband capacity (including National) and mobile phone coverage in the Shire through
representations at regional and State level.
Continue to support tourism and business development programs such as Farmers’
Markets, Artists Open Studios and rebuilding businesses affected by bushfire.
Establish a Green Business network that is consistent with the delivery of Council’s
economic sustainability goals and objectives.
Undertake feasibility assessment of green business accelerator.
Continue to support business organisations in the Shire, including traders associations,
Nillumbik Tourism Association and the HomeBiz / SmallBiz Network.
Develop a program that enables Council to provide information and support to enterprises
seeking to invest in the municipality, including a strategy for promoting Nillumbik as a
preferred place to do business.
Continue to encourage home based businesses to establish in Nillumbik by promoting
such businesses in Council newsletters and local newspapers (including businesses in the
Green Wedge).
Attract home based businesses from outside the municipality, promoting the environment
and the commercial, education and health services of the Shire.
Promote lifelong learning throughout Nillumbik.
Convene a forum of education providers in Nillumbik to foster growth in the local education
sector.
Develop integrated approach to planning and major projects.
Assist new and existing businesses to invest in the municipality.
Promote the municipality to appropriate investors.
Establish a business portal to provide timely information on business issues, including
contacts and business opportunities.
Encourage development of a single voice for business in Nillumbik.
Fund business development and tourism contract position within Council as additional
resource.
6
Tourism
6.1
Existing Situation
Nillumbik’s Green Wedge is part of the rural playground for Melburnians and their visitors.
The bushland and pastoral backdrop provides the setting for a variety of activities
including:

Weekend markets, events and festivals

Wineries

Diamond Valley Railway

Edendale Farm

Local farm products

Arts and crafts galleries and studios

The Artists Trail along the Yarra Valley

Accommodation (approximately 17 establishments with a total of 84 rooms)

Cafes, restaurants country pubs and function centres

Plant nurseries

Health and relaxation enterprises

Shared trails including Diamond Creek trail and Ring Road trail that connect with CBD

Closest country towns to the city

Popular routes for road and mountain bike cyclists.
These attractions are spread throughout the municipality.
Tourism is an important industry for the local economy because the expenditure of visitors
supports services used by residents that would not otherwise be viable. Services
supported by visitors include a wider range of restaurants and shops as well as food, art
and craft producers.
According to Tourism Research Australia (TRA, 2008), Nillumbik has approximately
171,000 visitors per year; with an average spend of $53 per visit.
This compares with an average of $91 per visit in Victoria as a whole, and is lower largely
because there is limited accommodation capacity for visitors who stay overnight in
Nillumbik compared with the State as a whole.
The tourism industry body for the area is the Nillumbik Tourism Association (NTA), which
is made up of industry members and Council representatives. The vision and mission of
the NTA is reproduced below. The NTA is a voluntary organisation that finances its
administration and promotional activities from the contributions of members and sponsors.
Council, which is a member and sponsor of NTA, spends around $100,000 per year on
tourism marketing, promotion and membership of regional tourism bodies.
Nillumbik Tourism Association
Vision
To build and nurture a sustainable tourism industry which coexists and complements
Nillumbik’s unique natural environment and draws upon the culture of the region.
Mission
The members of the Nillumbik Tourism Association in partnership with the Nillumbik Shire
Council will strive to develop the local tourism industry by leading and advocating for the
local tourism industry, supporting membership through communication and professional
development and providing cooperative marketing opportunities to maximise the benefits
of visitation to the area including initiatives consistent with “... where Melbourne meets the
Yarra Valley” brand.
The NTA has a strategic business plan (Nillumbik Tourism Association, 2008) in which the
key themes are to engage operators, the Nillumbik community and target markets; to
establish a separate identity for Nillumbik as a tourism destination; and to improve the
viability and management capacity of operators.
Nillumbik has also been part of regional tourism marketing and infrastructure development
organisations such as Yarra Ranges Regional Marketing and Melbourne’s Valley of the
Arts. Council’s contribution to these regional organisations has been suspended pending a
review of local tourism directions and the way in which the tourism industry in the Shire
can extract the best value from its regional connections.
6.2
Issues and Opportunities
6.2.1
Accommodation
The extent of accommodation in the Shire is limited. There are two motels in Eltham and
approximately 15 bed and breakfast establishments in Eltham, Research and the rural
parts of the municipality. Other types of accommodation are not present in the municipality
such as backpackers, camping, upmarket hotels, larger conference facilities etc.
In similar settings elsewhere hotels provide conference and convention facilities, resort
style recreational opportunities, health retreats, ecotourism opportunities and so on.
Nillumbik is potentially able to cater to the Melbourne market for conferences, retreats and
bushland activities.
A new, higher standard of accommodation, such as, for example, a medium sized eco
hotel in the green wedge, catering to this market would generate substantial employment
opportunities, probably of the order of one job per room (or more for a boutique luxury
hotel).
The presence of such a facility could also support a range of external activities and service
providers such as cultural and indigenous tours, day spa facilities, outdoor pursuits
providers and help to underpin, by example, increasing awareness in our environment and
sustainable development.
Such an environmental focus would also generate tourism publicity for the municipality and
its other attractions.
Notwithstanding the limitations of the current Planning Scheme, to be acceptable within
the green wedge, any such accommodation would need to be designed with
environmental sustainability at its heart, low rise and built of local or recycled materials. It
would respect and protect the environment of its setting; it would use innovative active and
passive energy generation and water harvesting and reuse technologies; it would provide
design inspiration to other buildings in the region.
Outside the green wedge, there may be scope for more urban style boutique hotels in
Eltham, Diamond Creek or Hurstbridge. Nevertheless, even in these locations, building
design should reflect the green wedge ethos.
Smaller, more low key accommodation can also be encouraged, particularly where such
accommodation is provided in association with rural activities such as wineries or similar
outlets.
Council’s roles in supporting this type of accommodation would need to be clearly defined,
and could involve, for example, a role in promoting the establishment of the concept within
Nillumbik to suitable landholders and hotel operators; to assist the proponent to create an
acceptable design; and to ensure rapid and consistent responses at the approvals stage.
This may involve consideration of appropriate changes to land use zoning to allow the
appropriate type of development to occur.
6.2.2
Meet the Maker Tourism
The Shire has a growing range of art, craft and food products that are made locally. The
stories behind these products – the method of manufacture, the people who made them
and the environment in which they were made – can be as interesting and attractive to
visitors as the products themselves. Tying these producers into a more formal network or
trail would provide a varied visitor experience that can be promoted through personal and
paper tour guides and on the web (in the same way as, for example, the Yarra Valley
wineries).
6.2.3
Trails Development
Council has a commitment to work to extend recreational trails through the municipality in
conjunction with other landholders such as Parks Victoria. Existing, extended and new
trails through the municipality could be promoted as one of the key outdoor experiences of
Melbourne. Such a development could generate business for accommodation providers,
tour guides, bike and canoe hire, and so on.
In order to encourage visitation and use of trails, the network should be planned from the
outset with service nodes in mind. Where possible, these should be existing activity
centres; however, it may be necessary to establish new service nodes (camp sites, toilets,
cafes, equipment hire etc.) to fill any gaps in provision.
6.2.4
Tourism Education
Post school education in tourism and hospitality can develop a ready-made labour force
for the local tourism industry as well as extending the skills of existing workers. Some post
school hospitality education is already provided in the Shire through Eltham College.
This can be extended, with the potential at the College to provide technical education in a
cluster of associated industries such as winemaking and permaculture, as well as
hospitality. Skills development for existing hospitality business operators and their staff is a
priority for the NTA and for trader’s organisations. There is potential to coordinate the
provision of such training throughout Nillumbik.
In the longer term, there may be scope to develop a specialist university campus providing
advanced courses in local specialties such as hospitality management, winemaking,
permaculture, landscape design and bushland management.
6.2.5
Coordination and Cross Promotion
The unique tourism offer in Nillumbik is the combination of nature, culture and art, food
and wine. This can be a winning combination provided that the elements form part of a
single package and that there is sufficient coordination of activity and cross promotion
between operators.
This requires the development of networks (as outlined previously) and packaging of
product (such as the Meet the Maker tours described above). It also requires that the local
industry works together to offer visitors a seamless experience. Coordination of weekend
opening hours in activity centres is an example of how the local industry can improve its
cross promotion and improve the visitor experience.
The Shire does not presently have an accredited Visitor Information Centre (VIC), although
visitor information is provided through a number of venues in most Shire towns. An
accredited VIC is not presently a high priority but may become so as the local industry
develops and as more and more people visit the Shire (particularly people visiting from
interstate and overseas).
6.2.6
Regional Tourism Alliances and Markets
There is no doubt that Nillumbik has commonalities with neighbouring municipalities and is
part of a wider region within Melbourne. The Shire has contributed to organisations such
as Yarra Ranges Regional Marketing and Melbourne’s Valley of the Arts and will continue
to work with its neighbours.
The Shire can focus its contribution in areas which are of direct relevance – promoting the
strengths of Nillumbik in arts, food and bush recreation; and in developing region wide
tourism infrastructure such as a linked trails network.
More populous nearby municipalities will also continue to form a large part of the market
for attractions in Nillumbik.
In particular, the northern metropolitan growth areas of Whittlesea and Hume have a
rapidly expanding population. Early marketing to the growth areas will ensure that
Nillumbik destinations form part of the suite of leisure activities that are considered by new
residents. Within this wider region, Nillumbik can differentiate its offering as providing
higher value experiences in food, culture and the environment.
6.2.7
Nillumbik Tourism Association
Actions on tourism, including product development and promotion, form a substantial
component of this Strategy for economic development in the Shire. The NTA presently
relies on administrative support funded by Council (20 hours per week) and on hard
working volunteers who may or may not be available in the future.
The organisation will be a major partner with Council in implementing key parts of its
Economic Development Strategy.
Council will continue to work with the NTA to examine the potential for re-organising its
current partnership through a service agreement in the short term, which outlines the basis
for developing a sustainable tourism strategic plan, including the feasibility of providing
officer support to work with the NTA and its members.
Such a strategic plan should form the basis for a longer term Memorandum of
Understanding between Council and the NTA to enable the NTA to focus on strategic
issues, developing their networks and other business development issues.
6.3
Tourism Action Program
This action plan on tourism is designed to:

Focus on the Shire’s tourism strengths in the combination of nature, culture, food and
wine

Advocate for the removal of impediments to sustainable investment in tourism

Assist the local tourism industry to cooperate more effectively.
Actions
Assist with the development of new tourism products such as high quality eco
accommodation that is integrated with other tourism related offers, including the potential
of a landmark eco hotel.
Advocate for appropriate sustainable accommodation in the green wedge to be allowed by
the planning scheme.
Develop Meet the Maker tours.
Explore funding opportunities that are available to develop the tourism, arts, and
agribusiness offer on a local and regional basis, including potential marketing alliances
with adjoining municipalities.
Consider marketing the high quality nature, culture, food and wine brand to the northern
metropolitan growth areas as a new market.
Promote the concept and achievement of trails and associated service nodes throughout
the municipality.
Improve coordination of weekend opening hours to ensure that visitors are well served.
Investigate the potential for expanded development of training in hospitality and associated
industries with local training providers and traders organisations.
Continue to fund NTA and regional tourism promotion efforts where these have a direct
benefit to Nillumbik.
Assist the NTA to develop a sustainable tourism strategic plan for the Shire (including the
Green Wedge).
Expand tourism opportunities compatible with the Green Wedge, in Green Wedge
townships and in identified Green Wedge locations.
7
Arts
7.1
Existing Situation
Nillumbik has a long creative heritage through its various artists’ colonies and its distinctive
mud-brick architecture. Since the time of Heidelberg school artist Walter Withers in the
early 20th Century, many well known artists have taken inspiration from the local
environment. The current offering of arts and crafts infrastructure includes:

Private and municipal gallery spaces

Craft markets

Artists’ studios open to the public

Artists’ residency programs at Montsalvat (Eltham), Dunmoochin (Cottles Bridge) and
at Laughing Waters (sponsored by Council and Parks Victoria)

Sculpture in public places (including Alistair Knox Park in Eltham)

Council art collection, parts of which are on display at Council venues

Nillumbik Art Prize sponsored by Council

Privately operated tours such as the mud-brick architecture tour

Music festivals such as the Eltham Jazz Festival.
Of particular note, Montsalvat in Eltham was constructed as an artists’ colony during the
depression of the 1930s. This heritage listed complex of buildings and gardens continues
to operate as an artists’ retreat as well as hosting small scale exhibitions and operating as
a function centre. Montsalvat remains a well loved part of our cultural heritage and is
supported by State Government and Council.
Council also supports the Artists Open Studios program in which, currently, 24 artists open
their home studios to the public on several weekends per year.
7.2
Issues and Opportunities
Arts and artists are intrinsically valuable. They are also an important asset of the local
economy. A creative environment attracts highly skilled residents; arts on show attract
visitors, with spin-offs for other service providers; and an atmosphere of artistic innovation
can lead to innovation in other activities, including in business.
Council has a strong commitment to the arts which is managed by its Arts Unit. This
assessment of issues and opportunities concentrates on the economic development
aspects of local arts development.
A number of local people have made the observation that there is no serious permanent
showcase or gallery for the work of local artists. This is a missing link in an area which has
a reputation outside the municipality as a place of arts and culture.
Montsalvat has several galleries which are used on an ad hoc basis but these lack security
and climate control.
The board of Montsalvat has a plan to redevelop its main gallery as a substantial exhibition
space and to open its other galleries on a full time basis. Together, these could provide a
major regional art gallery that could house a revolving exhibition of permanent works,
exhibitions by local artists and travelling exhibitions by national or international artists. The
spaces and accompanying staff could also play a strong role in leading community arts
and encouraging student artists.
The board of Montsalvat has produced a preliminary funding proposal to improve the
gallery spaces. More detail is now required to understand how the gallery would manage
the new space, how visitors would be looked after and what the benefits and costs of the
development would be.
In addition to supporting the facilities at Montsalvat, Council will continue to examine other
opportunities and contribute to the Artists Open Studios scheme. There is potential to link
this with exhibitions at Montsalvat, including showing of works by younger artists.
For the most part, the visible artists in the municipality are long established. New spaces
and encouragement for young artists may well be required to generate the ferment of
ideas and innovation that are important for economic as well as artistic endeavours.
Council will investigate the creation of spaces for innovative arts practice, particularly in
the main town centres of the Shire. This could involve use of vacant shop units or
temporary spaces.
7.3
Arts Action Program
This action plan is designed to integrate the arts more effectively into the local economy.
Actions
Undertake a study to assess the feasibility of establishing a regional art gallery in the
municipality, including potential opportunities to support the role of Monsalvat.
Continue to support Artists Open Studios scheme and mud-brick architecture tours.
Encourage use of existing and new town centre spaces for display of art works and
performances by new artists.
8
The Rural / Green Wedge Economy
8.1
Existing Policy
Nillumbik describes itself as the “Green Wedge Shire”. Green wedges, “safeguard
agricultural uses and preserve rural and scenic landscapes, non-renewable resources and
natural areas including water catchments. They also play an important part in Melbourne’s
open space network and provide opportunities for tourism and recreation.” (Department of
Sustainability and Environment, 2004)
The land in the Green Wedge is often a mix of intensively settled rural lifestyle areas,
intensive farming, recreational zones and state forest and parks. In Nillumbik, 90% of the
Shire is designated as Green Wedge. This area accommodates around 29% of the Shire’s
population, largely in small towns such as Hurstbridge, Panton Hill, St Andrews,
Yarrambat, Arthurs Creek and Kangaroo Ground. However, even the suburban parts of
the municipality have a bushland setting or rural backdrop, and this forms a large part of
the attraction of the area for new and existing residents.
Council has recently developed a Green Wedge Management Plan (Nillumbik Shire
Council, October 2009). This Plan contains a number of relevant objectives for economic
development in the rural areas of the Shire.
Economic Goals and Strategies of the Green Wedge Management Plan
1. Improve the economic viability of the Nillumbik Green Wedge and its townships and
settlements: Hurstbridge, Panton Hill, St Andrews, Yarrambat, Arthurs Creek and
Kangaroo Ground.
2. Expand tourism opportunities compatible with the Green Wedge, in Green Wedge
townships and in identified Green Wedge locations.
3. Ensure that agriculture remains technically viable in the Green Wedge.
E.1 Achieve economic development in townships of St Andrews, Hurstbridge and
Panton Hill and in the Green Wedge where appropriate.
E.2 Prioritise expansion in the following identified business sectors: Home based
business and services to business in the Green Wedge.
E.3
Support the delivery of a sustainable tourism strategy for the Green Wedge.
E.4 Provide certainty with regard to what types of tourism business can be established
in the Green Wedge and where.
E.5 Provide for land uses which encourage expanded, compatible, tourism activity in
the Green Wedge and its townships.
E.6
Retain existing agricultural land for soil based agricultural production.
E.7 Encourage the pursuit of a variety of agricultural activities in the Green Wedge –
from modest sized commercial enterprises to smaller/boutique agricultural businesses and
farms.
The actions nominated by the Economic Development Strategy are aligned with the
actions in the Green Wedge Management Plan.
8.2
Key Issues and Opportunities
8.2.1
Sustainable Agriculture
The principal agriculture products of the Shire are beef cattle, sheep, grapes and orchard
fruit, although there are also a wide range of minor farm products including pigs, goats,
buffalo products, alpacas, horses and mushrooms.
Large parts of the rural areas of the municipality are in the public reserve system (Kinglake
National Park, reserves along the Yarra and Plenty Rivers, Sugarloaf reservoir catchment
area etc.) or are in areas of rural residential development where the subdivision pattern is
generally too small to support fully commercial farming.
The area of the municipality that is utilised for farming and agriculture amounts to only
16% of the land area of the Shire (ABS, 2010).
Nevertheless there remain some substantial commercial farming enterprises and
agriculture is an important economic activity. The main advantage of Nillumbik as a
farming location is its proximity to Melbourne markets.
Research for the Green Wedge Management Plan (Essential Economics, 2008) indicates
that there are approximately 200 agricultural enterprises in Nillumbik which support around
150 jobs. The largest of these businesses produce from orchards and vineyards, although
there are also a number of significant beef producers.
The orchard businesses in particular are important employers in the rural areas of the
Shire. Many other commercial farm businesses have disappeared over the years as the
price of land in the Green Wedge has made all but the most capital-intensive operations
uneconomic to establish.
Some orchard businesses (and vineyards) are seeking to expand, especially where there
is an established value-adding opportunity such as fruit storage and packing or
winemaking.
A key issue raised by these businesses is the need to maintain the consistency of the
current land-use regime as the means of preventing further subdivision of farmland that
would make the land more expensive. Where these businesses are seeking to invest in
further processing and create local jobs, Council can work with the proponents to ensure
that, where possible, Nillumbik meets their locational requirements.
Most farm businesses that are left provide only partial incomes for the families operating
them. In many cases, this is a lifestyle choice; people have chosen to undertake smallscale farming as part of a range of income producing activities that might include
professional duties, trades, retailing, tourism, art production or investment.
Small-scale farmers provide an important environmental service in managing the land
(removing weeds and pests, maintaining fences and other infrastructure, etc.) and add to
the stock of locally produced food, reducing “food-miles”.
In some cases, the small farm production can form the basis of further value adding such
as grapes-wine-cellar door retailing-tourism, or fruit preserves-local markets-tourism, for
example. At the least, small-scale farmers play an important role in maintaining the
landscape of the Shire for all to enjoy.
Improving the farm incomes of this group of people would create social and environmental
benefits. Higher agribusiness returns would encourage greater commitment to the land
and to rural communities in the Shire.
In particular, small producers can benefit from the economies of scale created by
networks.
Networks include distribution channels such as the farmers’ markets, or associations and
events formed to promote the produce of the area. They can also include closer
connections between producers and consumers through direct purchasing agreements
between groups of households and farmers.
Similar schemes currently run in Queensland which aims to reduce food miles and supply
fresher food as well as improve certainty for farmers. Sustainable community agriculture
describes a variety of models whereby producers supply local consumers with a share of
the crop under a subscription arrangement, similar to operations that are already
established in Australia, including the Yarra Valley and the United States.
The Council Plan 2009-2013 Objective 2.1.14 states that Council will “encourage
sustainable and community supported agriculture.”
Council can continue to support and strengthen these existing networks. It can also assist
the development of new networks where these have local champions including, for
example, support for networks of organic food producers delivering directly to local
consumers.
8.2.2
Bushland Fringe Management
The bushfire disaster of early 2009 has brought home to us that our Green Wedge lifestyle
carries risks. Much work on replacing community assets and rebuilding community
resilience have been done by the Bushfire Recovery and Reconstruction Authority and the
affected communities as well as by the Shire.
Long-term strategies are required to reduce the risks of bushfire and other issues affecting
the bushland fringe, including pest management and landuse change. These strategies
require ongoing research, including:

Planning for sustainable settlements

Fire-resistant and environmentally sustainable buildings

Technologies for fire fighting

Weed and feral animal control

Bushland management

Community education.
Council will investigate whether these research and education strands can be woven
together to be delivered from a single facility (or network of facilities) located in the Shire.
This will involve collaboration with education and research institutions.
8.3
Green Wedge Action Program
This action plan is designed to:

Protect the viability of commercial farming businesses

Assist part-time farmers to improve their viability through development of networks

Capitalise on Nillumbik’s urban fringe location.

Assist in the implementation of economic strategies related to the Green Wedge.
Actions
Implement the economic development actions of the Green Wedge Management Plan
when adopted.
Ensure that subdivision does not further reduce the viability of commercial farming
enterprises in the Shire by the supporting ongoing viability of agriculture in the Green
Wedge.
Work with agribusiness investors to ensure that jobs in value-adding can be located in the
Shire.
Continue to support the development of agribusiness networks that improve connections
between rural producers, their industry groups and customers.
Encourage the pursuit of a wider variety of agricultural activities in the Green Wedge.
Investigate the development of a bush fringe research centre.
9
Priorities and Monitoring
9.1
Organisation to Monitor Economic Development
Council will develop Terms of Reference for the appointment of an Economic Development
Advisory Committee comprising Councillors and representatives of the small business
network, traders’ groups, the Nillumbik Tourism Association, farmers’ groups and other
community members as appropriate. The role of the Committee will be to recommend
priorities to Council, monitor implementation of the Strategy, to recommend policy
adjustments as required and, from time to time, to set offer new directions.
9.2
Reporting
Following adoption of this Strategy, Council will prepare an Annual Implementation Plan in
consultation with the Economic Development Advisory Committee. This will set economic
development priorities for the year ahead within the framework set by Council’s budget
and the Economic Development Strategy.
This economic development function of Council will have the following reporting
requirements:

Quarterly reports to the Economic Development Advisory Committee on progress
towards the Annual Implementation Plan

Annual reports to Council on the Implementation Plan and progress on the overall
Economic Development Strategy, including any adjustments that may need to be made

Occasional reports that lead to major revisions in the Economic Development Strategy,
with an expectation that the Strategy will be revisited every four years from 2017.
9.3
Performance Indicators
Each of the actions in the Action Program has its own performance indicators. However,
there are some more general indicators that can be used to assess how the Nillumbik
economy is performing.
For a regular quarterly report to the Economic Development Advisory Committee, the
following indicators will change:

Unemployment rate (DEEWR)

Value of building construction (Building Commission)

Visitor accommodation figures, if these become available separately for Nillumbik
(ABS).
For an annual report to Council, as well as those above, the following indicators will
change:

Estimated resident population and population growth rate (ABS)

Estimated change in the number and type of businesses (ABR)

Value of property sales and median prices (Land Victoria).
For significant reviews of the Economic Development Strategy (say every five years from
the ABS Census), the following relevant indicators will also change:

Population of towns and small areas within the Shire (ABS)

Industry and occupation of the labour force (ABS)

Employment self sufficiency (ABS)

Journey to work and the extent of commuting outside the Shire (ABS)

Greenhouse impacts of commuting (calculated from commuting figures)

Population forecasts (DPCD).
Many of these indicators for Nillumbik can be compared over time with neighbouring
municipalities in order to track how the Shire is progressing. Comparison municipalities
could include:

Banyule

Manningham

Whittlesea

Yarra Ranges

Mornington Peninsula.
Further research on municipalities with similar opportunities and constraints to Nillumbik
will also be undertaken to understand best practice in sustainable economic development.
9.4
Monitoring Action Program
The following action program is designed to implement the Economic Development
Strategy.
Actions
Establish an Economic Development Advisory Committee and reporting process outlined
in this Strategy.
Prepare Annual Implementation Plan for Economic Development that establishes priorities
for the year.
Institute quarterly progress reports to the Advisory Committee including reporting on broad
performance indicators.
Institute annual reports to Council including reporting on broad performance indicators.
Undertake ongoing research to identify best practice in sustainable economic
development.
Align the time frame of the Economic Development Strategy with that of the Council Plan
and undertake a major review of Economic Development Strategy every four years
beginning in 2017.
9.5
Priorities
Council operates in an environment where the delivery of services to the community is
largely determined by the availability of resources.
To enable Council to deliver the actions outlined in its Economic Development Strategy, it
must therefore set priorities that will be established each year and set out in an Annual
Implementation Plan.
The Implementation Plan will identify: the timelines and resources required to implement
actions; external funding opportunities; and the consultation that is necessary with
stakeholders and the community.
The Major Projects and Business Services Unit of Council will be responsible for managing
the Implementation Plan and undertaking many of the actions, including coordination with
other Council departments, external stakeholders and the community.
Based on the actions outlined in this document, the initial priorities are:
1. Establish an Economic Development Advisory Committee and reporting process
outlined in this Strategy.
2. Continue to support business organisations in the Shire including traders associations,
Nillumbik Tourism Association and the HomeBiz/SmallBiz Network.
3. Continue to support tourism and business development programs such as Farmers’
Markets, the Artists Open Studios and rebuilding businesses affected by bushfire.
4. Undertake a study to assess the feasibility of establishing a regional art gallery in the
municipality, including potential opportunities to support the role of Monsalvat.
5. Assist with the development of new tourism products such as high quality eco
accommodation that is integrated with tourism related offers, including the potential for
a landmark eco hotel.
6. Continue to implement Major Activity Centre Structure Plan recommendations for
Eltham and Diamond Creek.
7. Work with property owners, developers and business associations to encourage
investment in retailing, offices and housing in Eltham, Diamond Creek and Hurstbridge
as well as appropriate investment in smaller townships and centres.
8. Establish a Green Business Network that is consistent with the delivery of Council’s
economic sustainability goals and objectives.
9. Continue to develop agribusiness networks and improve connections between rural
producers, their industry groups and customers.
10. Ensure that any review of the Planning Scheme and the development of Township
Strategies, considers existing impediments to sustainable economic development and
appropriate tourism related activity in rural areas, and identifies land for the potential
establishment of additional light industrial activities.
11. Develop a program that enables Council to provide information and support to
enterprises seeking to invest in the municipality, including a strategy for promoting
Nillumbik as a preferred place to do business.
12. Explore funding opportunities that are available to develop the tourism, arts, and
agribusiness offer on a local and regional basis, including potential marketing alliances
with adjoining municipalities and regional organisations.
These actions are expected to generate the largest number of jobs in the short and long
term based on a strategic assessment of economic opportunities in the Shire.
10
References

ABS, 2008, National Regional Profiles, accessed via www.abs.gov.au

Department of Sustainability and Environment, 2004, Melbourne 2030, Melbourne

Essential Economics, 2009, Economic Input to Planning Scheme Review, for Nillumbik
Shire Council

Essential Economics, 2008, Draft Final Nillumbik Green Wedge Management Plan
Economic Research, for Nillumbik Shire Council, Greensborough

Essential Economics, 2004, Economic Input to the Eltham Activity Centre Structure
Plan, for Nillumbik Shire Council

Hassall, 2004, Eltham Activity Centre Structure Plan, for Nillumbik Shire Council

Nillumbik Shire Council, 2009, Draft Green Wedge Management Plan, Greensborough

Nillumbik Shire Council, 2009, Council Plan 2009-2013, Greensborough

Nillumbik Shire Council, 2002, Hurstbridge Township Strategy, Greensborough

Nillumbik Shire Council, 2006, Healthy Living in Nillumbik (Municipal Health Plan),
Greensborough

Nillumbik Shire Council, 2010, Climate Change Plan, Greensborough

NORTH Link et al, 2009, Melbourne’s North – the new knowledge economy, Melbourne

SGS, 2006, Urban Economics Input for the Diamond Creek Structure Plan, for
Nillumbik Shire Council

Tourism Research Australia, 2008, Tourism Profile for Nillumbik Shire, Canberra
Acknowledgements
This project has benefited from input by the following people:
Councillors
Cr Chris Chapple (Chair EDS Ref Group)
Cr Ken King
Cr Lewis Brock
Strategy Reference Group
Andrew Gillard
Carol Jenkinson
Norm Williams
Phil Marendaz
Renee Hasseldine
Workshop Participants
David Nicholls
Dr David Warner
Donna Kilgour
Dianne Granger
Daryl Brooke
Dylan Baker
Frank Lynch
Heidi Crundwell
Ian Clark
Jim Missailidis
Khan Franke
Paul Riggs
Teunis Kwak
Tom Crothers
Other interviewees
Chris and Mary-Lou Pittard
David Pryor
Eric and Bronwyn South
Gary Flood
Graham Morrison
Neil Roberts
Steve Herbert MP
Council officers
Barry Green
Chad Griffiths
Jackie Donkin
Kim Taylor
Margaret Abbey
Neville Slade
Darko Popovski
Personnel Assisting Council
Ken Northwood (Reference Group and Workshops Facilitator)
Appendix B: Economic Profile
Nillumbik Snapshot
The Shire is a municipality on the fringe of Melbourne with a mix of leafy suburbs, small
townships, rural lifestyle precincts and farming areas.
Whilst Nillumbik has a number of vibrant activity centres most residents travel outside the
Shire for work and for a large part of their retail and other commercial needs.
The complete economic profile is attached to this Strategy as a separate document.
Indicator
Nillumbik
Victoria
Estimated resident
population in 2008
63,200
5,313,800
Annual population growth
rate, 2001 to 2008
0.5%
1.4%
Forecast annual population
growth rate, 2006 to 2021
0.5%
1.4%
Households with a weekly
income less than $500 in
2006
5.0%
3.0%
Forecast annual growth in
people aged 60+, 2006 to
2021
10%
22%
Households with a weekly
income more than $2,000 in
2006
33%
18%
Largest industry for
employed residents, 2006
Health care
Manufacturing
Employed residents who
are managers or
professionals
39%
34%
Unemployment rate,
December 2008
1.5%
4.3%
Proportion of resident
workers who work in
Nillumbik
25%
N/A
Industry that generates
most jobs within the area,
2006
Education
Manufacturing
Indicator
Nillumbik
Victoria
Estimated number of
businesses, 2006
6,000
490,800
Industry with largest
number of businesses,
2006
Property & business
services
Property & business
services
Proportion of micro
businesses (with less than
5 employees), 2006
90%
85%
Median house price, 2008
$480,000
$335,000
Annual average rise in
median house price, 1998
to 2008
10%
10%
Value of building works per
person, 2008
$1,500
$7,200
Appendix C: SWOT Analysis
In the SWOT Analysis, opportunities for action on economic development stem from the
strengths, weaknesses and threats facing the Shire. Not all the opportunities can, or
should be pursued. Subsequent work in the preparation of the Economic Development
Strategy for the Shire will identify which opportunities will deliver the best results.
The opportunities analysis is available as a separate document. Some of the identified
opportunities are listed below:

Promote labour force to intending investors in knowledge intensive industries

Encourage skilled residents to establish local businesses

Provision of more office space in key activity centres

Enhancement of broadband infrastructure

Further training and mentoring of local professional start-up businesses

Attract investment in an eco tourist retreat providing accommodation, health and
education services

Attract/develop businesses with a low carbon footprint

Protect environment and amenity that attracts residents and small businesses

Develop local environmental services network to foster skills and innovation in the
sector

Potential for wider variety of skills development programs

Investigate development of business incubator for other small businesses wanting
mentoring and contact with like businesses

Promote home based businesses in Nillumbik

Improve local provision of post-school educational opportunities

Potential to expand retail and other commercial services in key activity centres

Identify land for commercial growth in Eltham, including development over car parks
and/or railway land

Rezone land for industrial purposes in appropriate locations

Develop policies that encourage better use of existing industrial land stock

Continue to support open studios program

Develop a regional arts centre

Retain land in zones in which farming is viable and resist subdivision for
residential/lifestyle purposes

Investigate potential for innovative forms of subdivision that allow continued agricultural
production

Provide training, including workshops with local businesses, for Council staff

Develop an economic strategy that is sensitive to “place”

Implement road improvements in key commuter corridors

Improve public transport connections, including bus interchanges with the train line

Institute common brand and promote

Improve tertiary education opportunities, particularly in environment and the arts

Eco tourism education and research centre

Monitor water availability

Ensure new buildings and activities make use of water saving technology

Identify retail and commercial development opportunities

Identify and address causes of retail leakage.