Department of State Development, Business and Innovation Annual Report 2012-13 Part one: Overview and Strategic Objectives Table of contents 01 Overview 2 Secretary’s foreword 2 Major Department changes during 2012-13 4 DSDBI objectives 5 Our ministers 5 Organisational chart 7 Major achievements for 2012-13 10 Governance arrangements 13 02 Strategic Objectives 15 Assist business in accessing skilled workers to align with Victoria’s industry needs 15 Promote Victoria to attract tourists, investors and students 17 Support organisations to boost their productivity through innovation 21 Provide market intelligence and assistance to organisations to make it easy to invest in Victoria 26 Create more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace 29 Page 1 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 01 Overview SECRETARY’S FOREWORD ECONOMIC CONTEXT Victorian businesses continued to face difficult trading conditions during 2012-13, reflecting subdued national and global economic settings, the high Australian dollar (for most of the year) and ongoing cautious consumer and business sentiment. Pressures on both tradeexposed and domestic industries have continued, with firms looking for efficiency gains and cost reductions. Consolidation of operations, including closure of some facilities has, unfortunately, been the outcome in some instances. The fundamentals of the Victorian economy remain sound, with growth expected to strengthen in 2013-14 to 2.25 per cent (from the forecast outcome of 1.5 per cent in 2012-13). This compares favourably with Australia’s other non-mining states and international peers. Many of the previous drivers of growth remain important, although contributing at lower levels: population growth, especially net migration, remains strong and above the national level; Victoria continues to have the strongest non-residential building sector in Australia; and many housing indicators such as housing finance and dwelling investment are showing growth. Confidence has been slowly improving, reflecting the low inflation and low interest rate environment, and the recent shift in the exchange rate. Outcomes on employment, investment and exports have been mixed, with employment growth picking up at the end of 2012-13. While unemployment has risen, participation in the workforce has declined. Competition for job vacancies is strong as the level of job advertisements has declined both in Victoria and nationally. Investment activity has remained quiet, although the housing market has shown recent positive signs. Victoria’s outlook remains more sensitive to the exchange rate than most states. While recent falls may contribute to a more positive outlook, the current (lower) level is still high by historical standards and short-term movements are uncertain. Other positives for the outlook come from improved economic performance in the United States and Japan, although these are offset by concerns about the outlook for China and the future of quantitative easing in the United States. THE DEPARTMENT In April 2013, the Department of Business and Innovation became the new Department of State Development, Business and Innovation (DSDBI). It includes Regional Development Victoria, energy and resources, and whole-of-government ICT, together with its existing portfolios. A new Office of State Development brings the Department’s investment attraction and facilitation activities together in one division and will facilitate significant investment and development projects, requiring a whole-of-government approach. The Office of the Red Tape Commissioner also joins the Department to advise the Minister for State Development and the Minister for Employment and Trade on cutting business costs. Page 2 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 These and other changes announced at the time reflected, in the words of Premier Napthine, a desire by the Government for “the public service to offer a proactive ‘open for business’ culture across the whole-of-government.” They are also a natural extension of the work undertaken by the Department over the whole of 2012-13, with our continued focus on assisting businesses to export, invest and innovate – three activities critical to the state’s economic growth. Details of the Department’s achievements and activities for 2012-13 are contained throughout this report. They confirm that this past year has once again been a very active, challenging and productive time for the Department as Victoria’s lead economic development agency. The Government’s Business Engagement Model has continued to expand as our key way of working directly with business to help boost productivity, encourage innovation and develop new markets. During 2012-13, the Department’s Business Development Managers, based in 16 Victorian Government Business Offices (VGBOs) across metropolitan and regional Victoria met with more than 12,700 Victorian companies to identify barriers to growth faced by individual firms and infrastructure, and skills and regulatory issues where we can advocate for and lead a broader Government response. The Department has also continued its active pursuit of investment opportunities from local and international companies seeking to establish, expand or diversify in Victoria. In the 201213 financial year, the Victorian Government facilitated 166 projects valued at more than $2.2 billion which are expected to generate 4,737 new jobs. The Department’s trade engagement program grew strongly in 2012-13, providing direct support for companies to develop new export markets and skills, and organising a wide range of inbound and outward Trade Missions, including four very successful Super Trade Missions – to China, the Gulf States and Turkey, India and South-East Asia. Super Trade Missions, led by the Premier or senior ministers, include between 100 and 500 companies, and provide the critical mass for building enduring relationships with large and diverse markets. As well as these Super Trade Missions, throughout 2012-13 the Department also delivered 22 smaller Trade Missions targeted at particular industries or events in high-growth markets. Complementing this outbound program, the Department helped organise and support 16 inbound investment and buyer missions to Victoria in 2012-13, including major missions to the International Food and Beverage Trade Week, the Australian International Air Show and Australian Automotive Week. Fostering innovation in research and development activities at the firm and industry level, and in how we engage with businesses, remained a key focus for the Department over the past year. This included developing and supporting networks and collaborations to share ideas and information, and new programs to help companies make better use of Victoria’s outstanding innovation and technology capabilities. These activities include the successful rollout of the Innovation Voucher Program, which matches small and medium-sized businesses with appropriate skills and services suppliers, and the Investing in Manufacturing Technology Program, which supports high-performing manufacturers to become more internationally competitive by adopting new technologies or processes. Similarly, the Technology Voucher Program, launched in September 2012, has provided successful recipients with funding to support the testing and adoption of new technologies. The Small Business Festival, held during August 2012, raised awareness of Government and private sector support services available for small businesses and provided workshops and network opportunities to support business growth and competitiveness. Page 3 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 The Major Projects portfolio achievements in 2012-13 included the $288 million BioSciences Research Centre (AgriBio, Centre for AgriBioscience), a state-of-the-art agricultural research facility at La Trobe University’s Bundoora campus, which was formally opened by the Premier, Minister for Major Projects and Minister for Agriculture and Food Security in April 2013. The $135.8 million redevelopment of the Victorian Arts Centre’s Hamer Hall was also completed, with a refurbished foyer for greater ease of movement, auditorium improvements including new seating and improved acoustics, and external improvements that better connect Hamer Hall with the Southbank precinct and the Yarra River. Construction of Melbourne Park’s new Eastern Plaza and National Tennis Centre were completed ahead of schedule and in time for the start of the 2013 Australian Open in January. Construction of the Western Precinct remained on schedule to be completed in time for the 2015 Australian Open. Looking ahead, a new Departmental structure, effective from 1 July 2013, will allow us to meet our expanded economic development responsibilities and clearly integrate them with current initiatives and programs to support business growth. I particularly look forward to new opportunities to bring together our work on investment attraction and facilitation across the state with our energy and earth resources, major projects, innovation and technology, and international engagement and trade functions. Small business and key service industries such as tourism, international education, and financial, professional and technical services will also continue as Departmental priorities for 2013-14. I would like to thank all members of the Department for their hard work and professionalism throughout a very busy year of major change. Now, as the new Department of State Development, Business and Innovation, we are even better placed to lead an ‘open for business’ culture across the whole-of-government that contributes strongly to Victoria’s economic growth. Howard Ronaldson Secretary MAJOR DEPARTMENT CHANGES DURING 2012-13 CHANGES IN MINISTERIAL APPOINTMENTS On 13 March 2013, on the advice of the Premier, His Excellency the Governor of the State of Victoria withdrew the following ministerial appointment relevant to the Department: The Hon. Richard Dalla-Riva, MLC, as Minister for Employment and Industrial Relations, Minister for Manufacturing, Exports and Trade His Excellency the Governor of Victoria made the following ministerial appointments: The Hon. Peter Ryan, MLA, as Minister for State Development The Hon. Louise Asher, MLA, as Minister for Employment and Trade The Hon. Robert Clark, MLA, as Minister for Industrial Relations The Hon. Nicholas Kotsiras, MLA, as Minister for Energy and Resources Mr David Hodgett, MLA, as Minister for Manufacturing, Minister for Major Projects Page 4 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 MACHINERY OF GOVERNMENT CHANGES On 9 April 2013, the name of the Department was changed to the Department of State Development, Business and Innovation (DSDBI) by order of the Governor in Council. The new Department incorporates an office of State Development to provide whole-ofgovernment coordination of strategic investment projects, and the added portfolios of Regional Development Victoria, energy and earth resources and whole-of-government ICT. Joint co-ordinating ministers for the new DSDBI are the Minister for State Development (the Hon. Peter Ryan) and the Minister for Innovation, Services and Small Business (the Hon. Louise Asher). Staff carrying out policy and advice functions relating to private sector workplace relations transferred to the Department of Treasury and Finance, effective 3 June 2013. DSDBI OBJECTIVES The Department of State Development, Business and Innovation is the Victorian Government’s lead agency for economic development. The Department develops and implements a diverse range of programs, initiatives and projects designed to attract and facilitate investment, encourage exports, generate job opportunities, stimulate innovation, and promote Victoria nationally and internationally. DSDBI’s objectives include: assisting businesses in accessing skilled workers to align with Victoria’s industry needs promoting Victoria to attract tourists, investors and students supporting organisations to boost their productivity through innovation providing market intelligence and assistance to organisations to make it easy to invest in Victoria creating more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace OUR MINISTERS 01 The Hon. Louise Asher, MLA Minister for Innovation, Services and Small Business Minister for Tourism and Major Events Minister for Employment and Trade (from 13 March 2013) 02 The Hon. Peter Ryan, MLA Minister for State Development (from 13 March 2013) Minister for Regional and Rural Development 03 The Hon. Gordon Rich-Phillips, MLC Minister for Technology Minister responsible for the Aviation Industry 04 The Hon. David Hodgett, MLA (from 13 March 2013) Page 5 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 Minister for Major Projects Minister for Manufacturing 05 The Hon. Dr Denis Napthine, MLA Minister for Major Projects (1 July 2012 to 13 March 2013) Minister for Regional Cities 06 The Hon. Richard Dalla-Riva, MLC (1 July 2012 to 13 March 2013) Minister for Employment and Industrial Relations Minister for Manufacturing, Exports and Trade 07 The Hon. Nicholas Kotsiras, MLA (from 13 March 2013) Minister for Energy and Resources 08 The Hon. Robert Clark, MLA (from 13 March 2013) Minister for Industrial Relations OUR PARLIAMENTARY SECRETARIES 09 Russell Northe, MLA Parliamentary Secretary for Small Business and Tourism 10 Damian Drum, MLC Parliamentary Secretary for Regional Development (from 13 March 2013) Page 6 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 ORGANISATIONAL CHART Department of State Development, Business and Innovation (at 30 June 2013) Minister for Energy and Resources The Hon. Nicholas Kotsiras MLA Minister for Innovation, Services and Small Business Minister for Tourism and Major Events Minister for Employment and Trade The Hon. Louise Asher MLA Minister for Major Projects Minister for Manufacturing The Hon. David Hodgett MLA Minister for Regional Cities The Hon. Dr Denis Napthine MLA Minister for Technology Minister responsible for the Aviation Industry The Hon. Gordon Rich-Phillips MLC Minister for State Development Minister for Regional and Rural Development The Hon. Peter Ryan MLA Parliamentary Secretary Small Business And Tourism Russell Northe MLA Small Business Commissioner Geoff Browne Risk and Audit committee Secretary Howard Ronaldson Red Tape Commissioner John Lloyd Parliamentary Secretary for Regional Development Damian Drum Page 7 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 Energy and Earth Resources* Deputy Secretary Sandra Denis Innovation and Technology Deputy Secretary Grantly Mailes Technology Industries Science and Technology Programs Innovation and Technology Capabilities Science and Technology Policy Tourism and Airline Services Chief Executive/Deputy Secretary Leigh Harry Tourism Victoria Marketing Strategy and Policy Aviation and Investment Attraction Trade and industry development Deputy Secretary Justin Hanney Investment International Coordination Office Export Industry Development Metropolitan/Regional Victorian Government Business Offices Programs and Small Business Labour Markets and International Education Page 8 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 Investment and Major Projects Deputy Secretary Peter Noble Major Projects Victoria Invest Assist Melbourne Market Relocation Project Policy Deputy Secretary John Robinson Policy and Research Strategic Planning and Ministerial Services Infrastructure Regulation Reform Corporate Services Deputy Secretary Rob Barr Human Resources Information Management and Technology Legal, Audit and Risk Strategic Communications Finance Business Services Business Victoria Online Office of State Development* Acting Deputy Secretary Matt Carrick Regional Development Victoria* Deputy Secretary Lachlan Bruce * New Divisions added to the Department following the machinery-of-Government changes announced on 9 April 2013. Page 9 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 MAJOR ACHIEVEMENTS FOR 2012-13 BUSINESS ENGAGEMENT The Department continued its proactive approach to engaging with businesses across Victoria through its Business Engagement Model. Business Development Managers consulted with more than 12,700 Victorian businesses to gather information and better understand the business environment. This consultation better informs the Department to assist business to achieve sustainable growth and enhanced productivity. The business.vic.gov.au website provided a vital link between Victorian businesses and Government, with 2.92 million visits and more than 725,000 in-depth interactions occurring between businesses and Government throughout 2012-13. The website features information and tools to make compliance easier, improve business skills and solve problems to help businesses grow. The Government also interacted with business through the more than 70,000 subscribers to the Small Business Victoria Update eNewsletter, and received more than 27,800 calls and emails through its Business Victoria Contact Centre, which offers referrals to business advice and support. The network of Victorian Government Business Offices was extended with the opening of the Eastern Metropolitan VGBO in Ringwood. Six regional Business Leaders Forums were held in Ballarat, Benalla, Bendigo, Geelong, Mildura and Traralgon. Hosted by the Deputy Premier Peter Ryan, these forums were attended by up to 200 local business people. INTERNATIONAL TRADE The Department delivered opportunities for Victorian organisations through strategic engagement with overseas markets. As part of the Government’s international engagement, the Department continued its successful Trade Mission Program in 2012-13, including four Super Trade Missions to China, the Gulf States and Turkey, India and South-East Asia. More than 1,000 organisations participated in the Super Trade Missions. The projected export sales as reported by participants from the four Super Trade Missions over the 13-24 month period was $1.3 billion. From 2013-14, projected export sales will be reported for a two-year-period following participation in an export program (this reflects a change in budget reporting for future years). The Department also hosted major inbound missions throughout 2012-13. These missions were designed to coincide with major events, including Australian Automotive Week, the International Food and Beverage Trade Week and the Australian International Airshow, and Aerospace and Defence Exposition. International education is one of the state’s most valuable export sectors. International education generated $4.36 billion in expected revenue in 2012 and provides an estimated 30,500 jobs. During 2012-13, more than 80 Victorian education and training organisations participated in overseas Trade Missions. The Study Melbourne website underwent a redevelopment to strengthen its role in promoting Victoria as a study destination. In 2012-13, 45 Victorians were awarded Hamer Scholarships of $10,000 to study Chinese-language in Victoria’s sister-state, Jiangsu, China. Page 10 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 INVESTMENT FACILITATED The Department facilitated more than 166 investment projects for Victoria, totalling more than $2.2 billion during 2012-13. Projects included the new Kraft Foods Asia Pacific Confectionery Centre of Excellence – Australia’s largest food research and development centre – in Ringwood; the expansion of Cotton On’s headquarters in Geelong North; and the new $17 million Nine Mile Fresh apple sorting, grading and packaging facility in Tynong. The Department continued to implement the Victorian Government’s manufacturing strategy through the launch of two programs aimed to lift the productivity and competitiveness of Victoria’s manufacturing sector, including the Investing in Manufacturing Technology Program and the first round of Manufacturing Productivity Networks Program. The Department facilitated the Victorian Government’s partnership with the Commonwealth to deliver the $42 million Automotive New Markets Program to assist Victorian automotive businesses to diversify into new products or markets. The Department also secured an investment for Toyota to locally manufacture the next major facelift to the Toyota Camry. SMALL BUSINESS The Department continued to provide year-round assistance for small business through a range of practical services and programs delivered through Small Business Victoria. These included: low-cost workshops and seminars in Melbourne and regional Victoria; the Small Business Mentoring Service; the Small Business Festival; and the Streetlife initiative. The Department managed the interaction between businesses and the Government via business.vic.gov.au, the Business Victoria Contact Centre, its eNewsletter and social media. There were 2.92 million visits to business.vic.gov.au during 2012-13. The website, together with the Contact Centre and social media platforms allows businesses to access information, ask questions and manage their interactions with Government. There were about 383,300 social media interactions and more than 27,800 calls and emails to the Contact Centre during 2012-13. There are more than 70,000 subscribers to the Small Business Victoria Update eNewsletter. INNOVATION Launched in September 2012, the Victorian Government’s Innovation and Technology Voucher Programs represent two new ways of engaging with Victorian businesses, providing nimble and responsive funding through vouchers to help businesses develop better products, processes and services for local and global markets. Innovation, including the uptake of new technologies, is a critical driver of productivity. A total of 100 vouchers was awarded under the Innovation Voucher Program and 54 vouchers were awarded under the Technology Voucher Program during 2012-13. The $10 million Victorian Design Initiatives 2012-2015 strategy was announced in September 2012 to help Victorian businesses innovate by understanding and integrating best-practice design to improve business performance. In April 2013, the Export Design Program and Design Matters, the Government’s brand for its new Public Design Program, were announced to promote greater awareness of design among the general public and business, and to build Victoria’s design profile. The Export Design Program provides support for Victorian design businesses to attend international trade fairs, meetings to arrange or confirm sale contracts, and to carry out export market research. Page 11 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 TECHNOLOGY In December 2012, the Government supported 78 companies through workshops, seminars and industry visits as part of its Collaborative Networks Pilot Program. This $1.2 million program supports the development of four networks in diverse areas of industry, including agriculture and manufacturing, biotechnology and pharmaceuticals, technical textiles and composites industries, and textile, clothing and footwear for the mining sectors. The new networks have facilitated 10 new collaborative industry and research projects. In September 2012, the Government launched its Technology Voucher Program to facilitate the uptake of biotechnology, small technologies and ICT across industry sectors. More than 40 Technology Development Vouchers were awarded during 2012-13, valued at up to $50,000. The funds will assist companies to develop technologies or integrate technologies into a product, process or service. In April 2013, the Department announced the recipients of Technology Implementation Vouchers, valued at up to $250,000. These vouchers enable businesses to explore the use of cutting-edge technologies to create more competitive products and processes. Projects included the development of a new diagnostic tool for the forensic industry, a cloud-enabled livestock weight management system, a renewable solvent to replace existing petroleumderived products, and large-scale production of an additive to improve the strength of plastics. TOURISM AND MAJOR EVENTS In September 2012, the Government’s first dedicated brand campaign to the China market was unveiled as part of the China Super Trade Mission. The $8 million integrated marketing campaign promoted Victoria in Beijing, Shanghai, Guangzhou and Shenzhen using advertising, print, social media and public relations activities. The campaign also featured a fully redeveloped Chinese-language website. To complement the brand campaign in China, the Government launched an integrated trade and consumer marketing campaign, providing information on tourism experiences available in Melbourne and Victoria, and promoting themed travel packages. Over the six-week campaign, the microsite featured 30 new themed Victorian travel packages, attracted more than 50,000 visitors, more than 18,000 campaign participants and nearly 4,000 new fans to Tourism Victoria’s Sina Weibo media channel. EMPLOYMENT AND INDUSTRIAL RELATIONS The Department nominated 651 business migrants for provisional and permanent residency visas in 2012-13. These businesses expect to invest up to $1.1 billion and create more than 1,300 jobs in Victoria. The Department also nominated 768 business migrants – who successfully established businesses in Victoria while holding a provisional visa – for permanent residency. The business activities of these migrants have resulted in investment of $227 million and the creation of 871 jobs across the state. The Department also assessed the overseas qualifications of 1,191 recently arrived individuals who are keen to pursue further education and employment in Victoria. The leading sources of migrants in this category were India, Sri Lanka, Iran, Pakistan, New Zealand and the Philippines. The Department also continued to advocate for a fair and productive regulatory and policy framework to influence workforce participation, industrial relations and skilled and business migration. Measures included its submission to the Annual Wage Review 2012-13. The Department placed 341 young people in the Victorian public sector under the Youth Employment Scheme. Page 12 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 AVIATION AND AIRLINE SERVICES The $20 million Regional Aviation Fund supports infrastructure upgrades at regional publicuse aerodromes. As at 30 June 2013, funding of $9.8 million has been committed to upgrade aeronautical infrastructure at Bendigo, Colac, Warrnambool, Latrobe, Edenhope, Cohuna, Benalla, Stawell and Wangaratta airports. The infrastructure upgrades ensure Victoria has a network of safe and accessible regional airports that can be used by a greater variety of aircraft in all-weather conditions, including emergency services aircraft. In February 2013, the Department facilitated the launch of Sichuan Airlines’ Australian services to Melbourne. The airline commenced direct flights connecting Melbourne with Chengdu, a major inland economic hub, three times per week. This will provide an additional 820 seats per week, or 42,744 seats per annum, between Melbourne and China’s fastestgrowing region. MAJOR PROJECTS Major Projects Victoria managed approximately $1.9 billion worth of major projects in delivery stages, including the Melbourne Park Redevelopment and the Metropolitan Fire Brigade’s Future of Organisational Learning and Development project. GOVERNANCE ARRANGEMENTS Governance is the system by which organisations are directed and controlled, providing the foundations for sound decision-making and accountability. The Department’s governance framework: has established processes for developing organisational strategy and direction ensures compliance and accountability contains clearly defined structures and relationships maintains performance monitoring and review processes The Secretary, as head of the Department, is accountable to the Department’s ministers for governance of the Department. The Secretary chairs the Strategy and Management Team (SMT), the strategically focused leadership team for the Department that provides an integrated approach for operations, emphasising accountability, prioritisation and coordination of whole-of-department issues. The SMT consists of the Secretary, Deputy Secretaries, the Executive Director, Strategic Communications, and the Executive Director, Strategic Planning and Ministerial Services. It meets weekly and is responsible for: determining the Department’s strategic direction, consistent with government policy appropriately resourcing the Department’s activities building a high-performance culture actively managing relationships with stakeholders Page 13 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 The Secretary is assisted by key committees, including the: Planning Committee, chaired by the Secretary: provides long-term strategic leadership on whole-of-portfolio priorities and challenges, and standards for corporate and business planning. Information Management and Technology Strategy Board, chaired by the Deputy Secretary, Innovation and Technology: responsible for developing strategies for information management initiatives and significant new business systems, and establishing the appropriate governance arrangements. Information Security Committee, chaired by the Deputy Secretary, Corporate Services: responsible for ensuring that information security practices, including policies, systems and employee awareness, are effective in maintaining the integrity of Departmental information and compliance with relevant legislation and standards. Accredited Purchasing Unit, chaired by the Deputy Secretary, Corporate Services: responsible for overseeing the Department’s procurement and contracting process through delegated powers assigned by the Victorian Government Purchasing Board. Occupational Health and Safety Committee, chaired by the Deputy Secretary, Corporate Services: facilitates cooperation and consultation between the Department and employees in instigating, developing and implementing initiatives designed to ensure the health and safety of employees. People Committee, chaired by the Deputy Secretary, Trade and Industry Development: responsible for guiding the development of departmental workforce and people strategies, shaping organisational culture and monitoring the delivery of key initiatives. Environment Steering Committee, chaired by the Deputy Secretary, Corporate Services: responsible for endorsing the Department’s Environment Policy, Environmental Management System and annual Environmental Management Program, and for ensuring compliance with relevant audit and reporting requirements. Workplace Partnership Committee, chair is shared between the Deputy Secretary, Corporate Services, and a Community and Public Sector Union industrial officer: responsible for providing a formal mechanism for communication and consultation between management and staff consistent with the principles of the Victorian Public Service Workplace Determination 2012. RISK AND AUDIT COMMITTEE The Risk and Audit Committee is an independent body established in accordance with the Financial Management Act 1994. It reviews risk management activity and key systems of internal control, including internal and external audit. The Committee operates under an approved charter and comprises an independent chair, three independent members and one departmental member. Members of the Department’s 2012-13 Risk and Audit Committee were: Michael Perry – Independent chair Fiona Bennett – Independent member Merran Kelsall – Independent member (To December 2012) Peter Lewinski – Independent member Mark Darmody – Independent member (From March 2013) Sonja Gibson – Departmental member Page 14 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 02 Strategic Objectives ASSIST BUSINESS IN ACCESSING SKILLED WORKERS TO ALIGN WITH VICTORIA’S INDUSTRY NEEDS The Government supports Victorian industries and businesses in addressing skills shortages across a number of sectors, including health, engineering, science and ICT. In 2012-13, Victoria nominated 1,331 skilled migrants with skills in high demand for permanent residency visas, including 310 international student graduates, mainly nurses, life scientists, chemists, university lecturers and engineering technologists. More than 1,191 Victorian residents were assisted in having their overseas qualifications recognised. The Department also nominated 651 new business migrants who expect to invest up to $1.1 billion in the Victorian economy. The Department managed the Youth Employment Scheme. This program encourages the creation of structured training and employment opportunities for young people aged 15 to 24 years by providing a wage subsidy for traineeships in the Victorian public sector. It helps build skills and opportunities for local labour markets and career pathways for those who are disadvantaged. In 2012-13, 341 young people commenced employment in the Victorian public sector under the scheme. Seven youth employment projects for the private sector placed 115 young people into employment. In 2012, the Government launched its Innovation Voucher Program, including the Innovation Skills Vouchers, to assist businesses in developing and commercialising new products and processes to improve productivity and competitiveness. Early feedback shows almost a third of Innovation Skills applications are from regional Victoria and that small and medium-sized businesses across the state are keen to embrace innovation in their everyday business activities. Together with the Innovation Business Research and Development Vouchers and the Technology Voucher Program, these initiatives continue to promote the existence of a pool of highly skilled people. This ensures that companies will have access to the necessary skills needed for success in accessing global markets. The success of the Victorian biotechnology sector depends on the ability of companies to attract and retain highly skilled people. To ensure Victoria remains at the forefront of biotechnology innovation, in October 2012, the Government launched initiatives designed to build the commercial, business and technical skills of Victoria’s biotechnology workforce. These initiatives deliver against targets under Victoria’s Technology Plan for the Future – Biotechnology. Throughout 2012-13, the Government continued to advocate for Victoria’s interests in workplace relations reviews and proceedings. For example, the Department prepared the Victorian Government submission to the Annual Wage Review 2012-13. The submission urged the Fair Work Commission, when making its decision, to take account of the soft labour market performance and outlook, and the limited capacity for employers to absorb or pass on increases in minimum wages. It also noted the importance of retaining incentives for parties to bargain at the enterprise level. The Fair Work Commission referenced the Victorian Government submission at a number of points in its decision. Page 15 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 The Government also supported Bendigo TAFE’s High Court appeal of the full Federal Court Barclay decision, which was an important test case on the Fair Work Act’s general protections laws. In late 2012, the High Court unanimously allowed the appeal and ordered the respondents to pay the TAFE’s costs of the appeal. HIGHLIGHTS AND ACHIEVEMENTS: INNOVATION VOUCHER PROGRAM AND TECHNOLOGY VOUCHER PROGRAM These two complementary initiatives assist companies to develop new and improved products, processes and services that will enhance their productivity and competitiveness through the use of cutting-edge technologies. The programs provide Victorian businesses with improved access to the state’s extensive research and development and technology expertise in order to support innovation. BUSINESS ENGAGEMENT MODEL Throughout 2012-13, the Department continued to deliver the Government’s Business Engagement Model. The model aims to build enduring relationships with individual businesses and capture business intelligence to better inform the Government of the key issues affecting business. Policy processes informed by business intelligence include reforms to the Dangerous Goods (Storage and Handling) Regulations, which came into effect in December 2012, and the Victorian Waste Policy, released in April 2013. The Department also regularly shares a summary of business intelligence with the Environment Protection Authority and the Victorian Work Cover Authority so that issues can be identified and addressed. The Department delivers the Business Engagement Model through its network of Victorian Government Business Offices throughout Victoria, including the Ringwood office, which opened in 2013. In 2012-13, the Department engaged with more than 12,700 Victorian companies, and facilitated six regional Business Leaders Forums. The Department also established a partnership with the Department of Education and Early Childhood Development to place skill and training experts within Victorian Government Business Offices. These experts will assist businesses navigate training systems and access support through the Victorian Training Guarantee. ABORIGINAL EMPLOYMENT INITIATIVES The Department is delivering integrated initiatives to improve Aboriginal employment rates. These initiatives have resulted in sustainable ongoing employment (16 weeks of continuous work) for 94 Indigenous job seekers in the period from 1 July 2012 to 14 June 2013. The Government’s Employment StartUp for Indigenous Jobseeker Program supports job seekers by providing training, mentoring and work placements in 17 metropolitan and regional locations across the state. Partners in the program include industry organisations, local Governments, Indigenous organisations, high-profile sporting clubs and community specialist organisations, such as the Australian Retail Association, the Municipal Association Victoria, the Victorian Transport Association, Collingwood, Essendon and Richmond Football Clubs and the Victorian Rugby Union. This project has 1,149 participants, with 560 placed in employment. The Department has also partnered with the Australian Retail Association’s Retail Institute to assist with the delivery of the Bridge to Work Program. This program offers Aboriginal job seekers quality retail employment opportunities, retail-based training with a focus on skills directly relevant to working in retail. Page 16 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 PROMOTE VICTORIA TO ATTRACT TOURISTS, INVESTORS AND STUDENTS Tourism remains a significant economic driver for Victoria, worth $19.1 billion a year or 5.8 per cent of the total Victorian economy in 2011-12. The tourism industry generated more than 200,000 jobs or seven per cent of the employment in Victoria in 2011-12. China was Victoria’s largest source of international visitors in 2012, and the second largest source of visitors to Australia behind New Zealand. The second phase of the Department’s Play Melbourne campaign played a significant role in attracting visitors from New Zealand to Melbourne and regional Victoria. The Melbourne Now! campaign – the first Australian tourism campaign to focus on markets beyond the major cities in India – garnered more than 200,000 Facebook fans and was seen by more than five million people. In 2012, spending by international overnight visitors to Victoria reached a record $4.4 billion, an increase of 2.1 per cent year-on-year. The latest forecasts indicate that Victoria will gain 65 per cent of expected tourism expenditure growth to 2021-22 from international markets, especially China and India. Chinese overnight visitors also had the highest expenditure of all international visitors to Victoria in 2012, following 8.7 per cent year-on-year growth. Chinese visitors to Victoria spent more than the next three largest markets combined (New Zealand, UK and Malaysia), accounting for more than one-fifth of total international visitor expenditure in Victoria. National Visitor Survey results showed Victoria experienced an increase in domestic overnight expenditure of 4.2 per cent to reach $10.3 billion in 2012. At the same time, domestic overnight visitors to Victoria increased by 1.9 per cent to reach 18 million in 2012. The Department continued to promote Victoria as a destination of excellence in education, delivering a range of initiatives to attract international students to Victoria’s educational institutions. This includes supporting the participation of more than 80 Victorian education and training organisations on Super Trade Missions to China, India, the Gulf States and Turkey, and South-East Asia, as well as the Department’s education mission to Japan. The Department also supported senior inbound delegations from Brazil, Iraq, India, Japan and Turkey. In 2012-13, the Department completed a major redevelopment of the Study Melbourne website – the Victorian Government’s portal to information on post-secondary study options in Melbourne and Victoria. The redevelopment included 10 language versions and mobile sites in five languages. The Department continued to provide support for international students in Victoria, including: the International Student Care Service, which provides free and confidential support and welfare advice for international students; the Student Welcome Desk at Melbourne Airport; two International Student Information Days; and a free Culture Card for international students. Page 17 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 HIGHLIGHTS AND ACHIEVEMENTS: INTERNATIONAL ENGAGEMENT During 2012-13, the Government established Victorian Government Business Offices in Beijing, Chengdu and Mumbai. The international offices around the world helped facilitate more than $2.2 billion of direct foreign investment into the state in 2012-13, which helped create 4,737 new full-time jobs in Victoria. They also supported 2,685 Victorian organisations operating in international markets. The Government released four country strategies to support Victoria’s international engagement: Engaging China – Strengthening Victoria, the State’s China Strategy (September 2012); the Victoria – Gulf States Engagement Strategy 2013, focusing on Victoria’s engagement with key economies in the Gulf States (February 2013); Victoria and India From Engagement to Partnership 2013, the State’s India Strategy (March 2013); and South-East Asian Market Engagement Plan 2013 (June 2013). VICTORIA INDIA DOCTORAL SCHOLARSHIPS These scholarships support essential research by providing funding for India’s brightest students to commence PhD studies at a Victorian institution, helping to build closer partnerships between India and Victoria. Ten scholarship winners were announced in India during the Super Trade Mission in March 2013. MASTERCHEF In August 2012, the Department successfully negotiated to bring MasterChef Australia to Melbourne. MasterChef: The Professionals aired nationally in January 2013, and attracted on average 1.3 million peak viewers per episode in its launch week. The show highlighted Melbourne and regional Victoria’s culinary excellence, showcasing the state’s fresh produce, innovative chefs, quality restaurants and outstanding winemakers. It featured offsite challenges filmed in key Victorian locations, including Federation Square and featuring a pop-up tram restaurant; while in Mansfield an episode involved the legendary cattlemen of the High Country. Both episodes attracted around one million viewers. AUSTRALIAN GOURMET TRAVELLER CAMPAIGN The Department partnered with Australian Gourmet Traveller magazine in a promotion to increase awareness in interstate markets of the quality and range of tourism experiences in regional Victoria. Five leading Victorian chefs were chosen by the national magazine for their passion, skill and contribution to raising awareness of the culinary riches of their respective regions. The areas included: the Mornington Peninsula, the Yarra Valley, Daylesford, the Grampians and the Victorian High Country. A dedicated booklet was included in the July edition of Australian Gourmet Traveller and content will also be distributed across the publisher’s website and iPad channels. The Department also negotiated for two reader events to be held, featuring Victorian produce and wine at two exclusive restaurants, in Sydney and Brisbane. There was also a consumer prize promotion with the opportunity to win a trip to Victoria. Page 18 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 SPOTTED BY LOCALS CAMPAIGN Launched in May 2013, the Spotted by Locals campaign, a partnership between Tourism Victoria and Fairfax Media, featured prominent Melburnians with personal connections to regional Victoria. Raising awareness of a range of experiences available in regional Victoria, the participants’ recommendations were published across Fairfax publications and websites and through social media. Video content was available for viewing through a special section on The Age website, iPad and mobile applications. REGIONAL COOPERATIVE MARKETING INNOVATION FUND Launched in June 2013, the Department, through Tourism Victoria, is working with all 10 regional tourism boards to support innovative and creative projects, encourage regional collaboration and support projects that align with state-wide priorities and product strengths. Projects that have been supported include the development of social media campaigns, free Wi-Fi networks at key visitor locations, mobile phone applications and mobile-optimised websites. MAJOR EVENTS In 2012-13, Victoria’s major events calendar remained one of the most prestigious and successful in the world. The Department continued to work with Victoria Major Events Company, Government departments, event promoters and organisers to attract, promote and leverage the tourism benefits of major events. Events and exhibitions included: Napoleon: Revolution to Empire and Game Masters As part of the Melbourne Winter Masterpieces series, the Napoleon: Revolution to Empire exhibition opened at the National Gallery of Victoria in June 2012, attracting 188,729 people over its duration. The Game Masters exhibition, at the Australian Centre for the Moving Image, attracted 102,803 people over the duration of the exhibition. This was the fourth-mostattended exhibition in ACMI’s history, with 23 per cent of visitors coming from outside Victoria. Men’s Champions Trophy Hockey Tournament Held over nine days in December 2012, the 34th edition of the Hockey Champions Trophy for men was hosted at the State Netball Hockey Centre in Melbourne. Featuring the world’s top eight hockey teams, Australia won the tournament, extending its record winning streak at the event to five consecutive titles. ISAF Sailing World Cup – Melbourne The International Sailing Federation’s ISAF Sailing World Cup series is the grand slam of Olympic class sailing, featuring the world’s best sailors. The Melbourne event held in December 2012, one of six hosted in different countries, ran over six days and attracted 216 competitors from overseas and interstate. Indian Film Festival of Melbourne The second Indian Film Festival of Melbourne ran through May 2013. The festival celebrated the centenary of Indian cinema by opening with Raja Harishchandra, India’s first feature film, 100 years to the day since its first public screening. The festival screened more than 60 films from across India and the subcontinent, including retrospectives, industry master classes and free public events. Page 19 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 White Night Melbourne An all-night arts and cultural celebration, the inaugural White Night event was attended by more than 300,000 people. Cultural institutions recorded significant attendance, including the National Gallery of Victoria, Australian Centre for the Moving Image, and the Arts Centre Melbourne. Videos of the event were distributed through social media and attracted 95,000 Facebook views and produced an estimated Twitter reach of 68,000. Ironman Asia-Pacific Championship – Melbourne This long-distance triathlon race featuring a 3.8-kilometre swim in Frankston; a 180-kilometre bike ride on the EastLink motorway; and a 42.2-kilometre run along Port Phillip Bay was held in March 2013. The race attracted 2,200 competitors, including the world’s elite Iron Man distance triathletes. BUSINESS EVENTS AND CONFERENCES In 2012-13, Melbourne reinforced its reputation as a world-class business events destination by attracting a range of major business events to the state. In the financial year ending June 2013, a partnership between Tourism Victoria, the Melbourne Convention and Exhibition Centre, and Melbourne Convention Bureau held 172 business events (10 of which were supported by the Major Business Events Fund). In 2012-13, major international conferences held at the Melbourne Convention and Exhibition Centre included: World Model United Nations: in March 2013, Melbourne hosted more than 2,000 university students from about 80 countries for a week of debate and cultural exchange at the Harvard WorldMUN. Modelled on the United Nations, students debated issues of global importance at the Melbourne Convention and Exhibition Centre. The Department hosted a traditional barbecue lunch and Bollywood dancers performed a farewell to students Australian International Education Conference: in October 2012, Melbourne hosted the annual Australian International Education Conference at the Melbourne Convention and Exhibition Centre. The conference addressed global developments and trends in international education and was attended by about 1,300 national and international delegates Amway India Leadership Seminar: in December 2012, Melbourne welcomed 3,890 Amway delegates from India. It was the largest Indian incentive group to be hosted in Australia and the first time Amway India’s top achievers have been able to meet at one convention centre at the same time Page 20 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 SUPPORT ORGANISATIONS TO BOOST THEIR PRODUCTIVITY THROUGH INNOVATION Victoria has a strong set of innovation capabilities, with many skilled people, an internationally recognised research sector, cutting-edge technology platforms and infrastructure, and businesses that are global leaders. The Department facilitates collaboration between business and the research sector to help better connect businesses with the knowledge, information, capacity, skills and partners they need to be innovative and generate economic success for Victoria. This collaboration was facilitated by a range of support programs, including the Collaborative Networks Pilot Program. Designed to bring industry and research networks together to translate recent research and technical innovations into commercial outcomes, the program provides $1.2 million to establish networks in diverse areas of industry, including agriculture and manufacturing; biotechnology and pharmaceuticals; technical textiles and composites industries; and textile, clothing and footwear products for the mining sector. In 2012-13, 78 companies were supported through the program’s workshops, seminars and industry visits. These activities have led to the development of 10 new projects for industry and research collaboration to develop new products, such as protective apparel for hot and humid climates, anti-bacterial and anti-influenza drug screening, carbon fibre for bridge reconstruction, and the use of carbon dioxide to extend the shelf life of dairy products. In September 2012, the Government launched two complementary programs to support business innovation – the Innovation Voucher Program and the Technology Voucher Program. These programs aim to build business productivity and competitiveness through the development of new and improved products, processes and services. The diverse range of companies that have already benefited from take-up of vouchers include bluechiip, Biota Pharmaceuticals, Dolphin Products, Carbon Revolution, Albion Sports and Nufarm. The Government continues to support innovation by providing business with access to information and improving the delivery of Government services. In 2012-13, this included the relaunch of the website at vic.gov.au, giving citizens smarter access to Victorian Government information and services, and making the most of current and innovative ICT. As part of the Victorian Government’s ICT Strategy, the new mobile-friendly vic.gov.au improves the online experience for Victorians through search-driven access to Government information, services, contacts and events, and provides immediate access via an aggregated feed to all Government tweets. In August 2012, the Government released its DataVic Access Policy, promoting open access to Government data to drive innovation, create new business opportunities and enable new services. In the year to June 2013, the number of Government data-sets available on data.vic.gov.au rose from 99 to almost 700 and will meet the target of more than 1,000 datasets available by September 2013. The Government also launched Grants Victoria, a new gateway for businesses and individuals to access state grants available to them via vic.gov.au/grants. The website provides information on more than 130 Government grants which can be searched using key words, categories and recently added grants. Page 21 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 HIGHLIGHTS AND ACHIEVEMENTS: INNOVATION VOUCHER PROGRAM Innovation vouchers can be used by businesses to access external research and development facilities and expertise. During 2012-13, 100 vouchers were awarded under the Innovation Voucher Program, including: 62 small and medium-sized businesses were awarded Business Research and Development vouchers with a total value of approximately $1.44 million, to access research and development facilities and expertise. Almost half of these businesses had never collaborated previously 38 small and medium-sized businesses and research organisations were awarded Innovation Skills Vouchers with a total value of more than $344,000. Almost one-inthree applicants for skills vouchers were from regional Victoria Sixty-nine suppliers were listed on the business Research and Development voucher supplier directory, linking them with business networks, while 20 suppliers are approved to deliver skills development activities and programs for Innovation Skills vouchers. TECHNOLOGY VOUCHER PROGRAM Technology vouchers can be used to explore how cutting-edge technologies, such as biotechnology, small technologies and advanced ICT, can be used to develop new and improved products and processes. During 2012-13, 54 vouchers were awarded under the Technology Voucher Program, including: seven companies were awarded a total of more than $1.6 million Technology Implementation vouchers worth up to $250,000 each, for projects including the development of new diagnostic tools for the forensic industry, and a large-scale production of an additive to improve the strength of plastics 38 companies were awarded Technology Development vouchers worth approximately $1.8 million in total to assist them in developing or integrating technologies into new or improved products, processes and services. More than half of the companies were in the manufacturing, ICT, pharmaceutical and life science sectors nine companies were awarded Technology Student Accelerator Vouchers During 2012-13, 213 suppliers were listed on the technology voucher supplier directory. INVESTING IN MANUFACTURING TECHNOLOGY PROGRAM The Investing in Manufacturing Technology Program assists manufacturers to purchase and integrate new technologies that will improve productivity and competitiveness, strengthen capability and have a transformative impact on their business. The $24.8 million initiative is part of the Victorian Government’s manufacturing strategy, A More Competitive Manufacturing Industry. To date, the Victorian Government has committed $6.6 million in assistance to 40 Victorian manufacturers over two funding rounds. These projects represent $29 million in additional investment into the state, and are expected to create 219 new jobs and transition a further 310 to higher-value roles. Page 22 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 GROWING VICTORIA’S BIOTECHNOLOGY CAPACITY In April 2013, the Victorian Government launched the Building Global Bridges Program in partnership with the Massachusetts Life Sciences Center. Building Global Bridges is designed to support Victorian life sciences companies to collaborate with similar businesses in Massachusetts in order to accelerate late-stage life sciences research and development projects. As part of Victoria’s Technology Plan for the Future – Biotechnology, the Department also supported the Victorian Platform Technologies Network in its second phase of activity. Building on the successful networking of biotechnology research and development facilities, the second phase of the network will expand to include other disciplines and industries. New software and a single web-booking system will be rolled out to help industry and academic researchers to better access the network’s facilities through the Australian Research Infrastructure Network Project. VICTORIAN FIBRE STRATEGY Construction of the Victorian Government-funded fibre optic cable network from Geelong to Warrnambool was completed in May 2013. The new fibre network will enable high-capacity broadband services for the public sector and support competition in the backhaul telecommunications market in Victoria’s south-west region. The fibre was rolled out as part of the Victorian Fibre Strategy, with the aim of supporting a range of alternative broadband networks. BROADBAND ENABLED INNOVATION PROGRAM The Broadband Enabled Innovation Program is a competitive grants program that provides funding to community, business and government organisations to develop innovative technologies that rely on high-capacity broadband. In 2012-13, round two of the program funded 11 projects across the environment, emergency services, health, education and training, human services and aged care sectors. The Government launched three projects in the first half of 2013: the Uni TV trial, which will test the use of internet protocol television as a delivery mechanism for educational content the Regional Cystic Fibrosis e-Health and Telemonitoring Program, a pilot project that will remotely monitor cystic fibrosis patients at home and deliver online health services the Victorian Stroke Telemedicine – Loddon Mallee Project, which will use highcapacity broadband to link Melbourne-based neurologists with regional doctors treating emergency stroke patients OPERATIONAL INFRASTRUCTURE SUPPORT PROGRAM The Government’s Operational Infrastructure Support Program provided $26.1 million to assist 13 Victorian medical research institutes to meet their operational overhead costs. In 2012, this support assisted the institutes in attracting more than $196 million in external competitive research funding to Victoria. The administrative burden on institutes applying for funding from the program was reduced in 2012-13 by substantially reducing the paperwork involved. Page 23 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 ERESEARCH AGENDA In November 2012, the Government released its new eResearch Agenda detailing support for the use of advanced ICT in research, committing $3.9 million towards sustainable and mainstream adoption of eResearch. In 2012-13 supported activites included: continuation of the Victorian eResearch Strategic Initiative, which provides Victoria’s researchers with advanced ICT services the set-up of the VicNode, a new data storage facility for Victorian researchers DIGITAL FUTURES FUND The Government’s $11 million Digital Futures Fund supports collaborative projects that transform business practices and deliver productivity benefits to Victorian small and mediumsized businesses through developing ICT solutions. In June 2013, the first funding round saw $900,000 awarded to ICT projects involving more than 17 partners across the warehousing, automotive and manufacturing sectors. HEALTH MARKET VALIDATION PROGRAM The Health Market Validation Program is a flagship initiative under Victoria’s Technology Plan for the Future – Biotechnology. In May 2013, the Government announced its support for 12 feasibility study projects with funding of $100,000 per project. The program offers $15 million worth of competitive grants to encourage innovation in healthcare and builds on the structure and success of the Market Validation Program pilot. The Victorian Government is seeking solutions to healthcare challenges through the program, in order to: achieve better health outcomes improve healthcare service delivery deliver economic benefits for Victoria LAUNCH OF THE VICTORIAN GOVERNMENT ICT STRATEGY In February 2013, the Government launched the Victorian Government ICT Strategy 2013 to 2014. The strategy provides high-level direction on the design and use of information and technology in the Victorian Government to deliver better services. The principles and objectives of the strategy are now being incorporated into ICT planning. In 2012-13, as part of the strategy, the Department updated and relaunched the Victorian Government web portal at vic.gov.au, creating an online searchable register of Government mobile apps, publicly releasing Government datasets, consolidation of ICT planning and conducting a review of ICT governance. As foreshadowed by the strategy, the Government created the new role of Chief Technology Advocate in March 2013, and in June 2013 concluded the transfer of whole-of-government ICT responsibilities to the Department. OPENING OF WALTER AND ELIZA HALL INSTITUTE In November 2012, the Premier and the Commonwealth Parliamentary Secretary for Health opened the new $185 million Walter and Eliza Hall Institute research facility in Parkville. The redevelopment doubles the institute’s floor space and includes a number of Australian-first research services. This includes a new personalised medicine research centre, volunteer blood donor registry, insectary for breeding malaria-carrying mosquitoes and a clinical translation centre. Page 24 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 INNOVATION AND SCIENCE AWARENESS SUPPORT The Victorian Government continues to recognise the valuable contribution made by Victorian researchers through its support of: 2013 Premier’s Award for Health and Medical Research: awarded to Dr Aung Ko Win for his research on colorectal cancer Innovation Fellowships and Inspiring Students program: the Victorian Endowment for Science, Knowledge and Innovation received additional funding of $1.5 million over three years for Innovation Fellowships, which are designed to bring the world’s top researchers to Victoria. Four Innovation Fellowships were awarded in 2012-13. The program is also working with three outer metropolitan and regional schools to improve student engagement with science and technology 2012 Victoria Prize for Science and Innovation and the Victoria Fellowships: the 2012 Victoria Prize for Science and Innovation (Life Sciences) was awarded to Professor Terry Speed (analysis of large data-sets), and the 2012 Victoria Prize in Physical Sciences was awarded to Professor Ana Deletic (water management). The Victorian Government has doubled the number of fellowships to be awarded annually with 12 Victoria fellowships being awarded in 2012-13 VICTORIAN DESIGN INITIATIVES 2012-15 In September 2012, the Government launched the Victorian Design Initiatives 2012-15 Designing the Future to support best practice and excellence in design in Victoria and grow the state’s design business capability. Initiatives commencing in 2012-13 included: the Export Design Program, which helps Victorian designers explore new export opportunities and connect them with global markets the Design Matters public design program, which celebrates and promotes good design in Victoria. The program includes the Premier’s Design Awards, which recognise and reward Victorian designers and businesses for outstanding applications of design, and agIdeas 2013, held in April 2013, the flagship event of the Melbourne International Design Week Page 25 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 PROVIDE MARKET INTELLIGENCE AND ASSISTANCE TO ORGANISATIONS TO MAKE IT EASY TO INVEST IN VICTORIA The Department showcased Victoria’s capabilities and status as an attractive investment location to national and international companies looking to expand, diversify and seek specific investment opportunities. In doing so, the Department provided facilitation services to new international investors, continued to encourage additional investment by companies already operating in Victoria, and worked effectively with businesses to overcome challenges to pursuing investment and creating jobs for Victoria. In 2012-13, the Department facilitated 166 projects totalling more than $2.2 billion, which are expected to generate more than 4,700 jobs for Victoria. One example is the Kraft Foods Asia Pacific Confectionery Centre of Excellence. The company will establish a world-class, globally competitive research facility at Kraft’s manufacturing site in Ringwood. The centre is a significant boost for Victorian food manufacturing innovations, and will be staffed by the largest research and development team in Australia. The Government’s investment into the facility will expand Kraft’s market from 20 million Australian consumers to a market of 1.6 billion consumers across the Asia-Pacific. As part of the Government’s ongoing commitment to engaging with business, the Department also helped prospective investors navigate the complex processes for new developments, provided specialist services (including locating suitable development sites) and advice on development approvals and infrastructure services. In 2012-13, Major Projects Victoria managed approximately $1.9 billion worth of projects in delivery stages and project development for projects notionally worth $5 billion to $10 billion. Contracted projects that contributed to the Department’s performance for 2012-13 include: Biosciences Research Centre Kew Residential Services Melbourne Market Relocation Melbourne Park Redevelopment – Eastern Plaza Melbourne Park Redevelopment – Western Precinct Parkville Gardens Southbank Cultural Precinct Redevelopment HIGHLIGHTS AND ACHIEVEMENTS: INVESTMENT SUPPORT PROGRAM In 2012-13, the Government committed $55 million to projects under the Investment Support Program. It is anticipated that these projects will result in $166 million of direct capital expenditure (including $76 million in the packaging sector and $63 million in the food sector) and create 1,521 full-time jobs, including 500 jobs in manufacturing and 450 in information and communication technologies. In 2012-13, Investment Support Program recipients received an aggregate 94 per cent of the originally contracted grant amounts. These projects collectively achieved 107 per cent of the capital expenditure and 115 per cent of the employment required to receive the full grant payment. Page 26 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 Follow-up survey data on investment projects attracted and facilitated by the Department, and matured in 2012-13, indicated recipients achieved 125 per cent of forecast capital investment and 97 per cent of forecast employment. In 2012-13, the Government helped facilitate key projects, which are expected to deliver significant investment and jobs for Victoria. Specific achievements include: Cotton On Group – stage two global headquarters expansion, creating up to 500 jobs in Geelong North Swisse – establishment of new global headquarters in Collingwood, creating up to 140 jobs Nine Mile Fresh – $17 million apple-sorting, grading and packaging facility in Tynong, creating up to 100 jobs SAP – establishment of the global software company’s Mission Control Centre in Melbourne Mars Australia – $52 million product line expansion in Ballarat, securing more than 400 jobs Kraft – Asia-Pacific Confectionery Centre of Excellence, creating up to 100 jobs in Ringwood Cipla – establishment of the Australian headquarters of India’s largest pharmaceuticals company IBM Australia – expansion at Victoria’s Ballarat Technology Park, creating 150 jobs. The new investment will lead to the establishment of an IBM Asia-Pacific Centre of Excellence for Software Testing in Victoria Primary Health Care – establishment of a Specialist Diagnostic Services Innovation Centre in Ballarat, creating up to 60 jobs China Construction Bank and Industrial and Commercial Bank of China – establishment of branches in Melbourne, creating up to 80 jobs and building on the Victorian Government’s engagement with the Chinese market Australian Paper – $90 million de-inking plant in Maryvale MAJOR PROJECTS Major Projects Victoria acted as an interface between Government and industry in the development and delivery of projects that facilitate investment, generate jobs and promote innovation in Victoria. In 2012-13, Major Projects Victoria managed development projects such as E-Gate, Federation Square East, the Flinders Station Design Competition and Stage two of the Melbourne Park Redevelopment, a total notionally worth $5 billion to $10 billion. Further, during 2012-13 Major Projects Victoria managed the delivery of the Melbourne Park Redevelopment, Parkville Gardens, the Metropolitan Fire Brigade’s Future of Organisational Learning and Development facilities project, and the Galleries of Remembrance at the Melbourne Shrine. A major achievement was the $135.8 million refurbishment of Hamer Hall. Part of the Southbank cultural precinct redevelopment, the project delivered substantial improvements to Hamer Hall and its surroundings, as well as creating better connections between the buildings, Southbank, the city and the river. Page 27 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 Other projects in development or delivery stages being managed by the Department include: Melbourne Market Relocation Project The Department has been working closely with the Melbourne Market Authority in order to relocate the market from its current location in West Melbourne to Epping in 2014-15. The relocation will create a pivotal piece of infrastructure for the development of Melbourne’s northern sector as a food-related industrial and logistics hub. Docklands Studios Melbourne Docklands Studios Melbourne completed building upgrades that will enhance the studios’ reputation as Victoria’s premier live television facility, offering a flexible, multi-use complex. The new building works, completed in December 2012, were made possible by a $10 million investment by the Victorian Government. Victorian Coal Development During 2012-13, the Department was responsible for a whole-of-government approach to drafting the Victorian Coal Development Strategy. The first stage of the strategy, which involves a market engagement process to gauge the industry’s interest in developing brown coal and interest in the Latrobe Valley location, is being prepared. AUSTRALIAN INTERNATIONAL AIRSHOW AND THE AEROSPACE AND DEFENCE EXPOSITION The airshow was held at Avalon Airport from 26 February to 3 March 2013. The Department was responsible for the management and delivery of the Victorian Government activities associated with the airshow and the exposition. For Victoria, the Australian International Airshow and the Aerospace and Defence Exposition generated an economic impact gross benefit of $141.6 million and a direct economic impact of $97.09 million. The airshow was attended by 135,138 people and the exposition by 32,671 people. 2012 LAND WARFARE CONFERENCE AND TRADE EXPOSITION The 2012 Land Warfare Conference and Trade Exposition was held at the Melbourne Exhibition and Conference Centre from 29 October to 2 November 2012. The conference was co-sponsored by the Australian Army and the Defence Science and Technology Organisation. The conference was attended by 1,500 delegates and had more than 250 exhibitors. As a direct result of the conference, more than 140 new business leads and 49 new projects or contracts were generated by local exhibitors at the Victorian Government Pavilion. SCREEN PRODUCTION ACTIVITY In 2012-13, Film Victoria supported 54 film, television and digital media projects with funding, delivering an estimated 5,810 jobs and generating a total spend of more than $140 million in the state. Supported projects included feature film Predestination starring Ethan Hawke, and popular Australian television series such as Offspring, Jack Irish, Wentworth and Miss Fisher’s Murder Mysteries. Page 28 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 CREATE MORE OPPORTUNITIES FOR VICTORIAN BUSINESSES TO GROW AND BECOME MORE PRODUCTIVE AND COMPETITIVE IN THE GLOBAL MARKETPLACE A key focus of the Department in 2012-13 was to create more opportunities for Victorian businesses to grow and become more productive and competitive in the global marketplace. During this period, 2,685 businesses participated in export programs facilitated by the Department, including the outbound Trade Mission Program, a major component of the Government’s International Engagement model. The Trade Mission Program supports Victorian companies across a range of industries, including food and beverage, infrastructure (including building and construction), sustainable urban development, aged and health care, automotive, aviation and aerospace, cleantech, ICT, professional services, resources and mining services, defence, equine, water technologies, marine and biotechnology. Ninety-five per cent of Victorian businesses participating in Trade Missions were satisfied with the program. In 2012-13, the Government supported 26 Trade Missions, including four Super Trade Missions abroad. The Trade Mission Program targeted more than 20 countries, including countries across the Gulf States and Turkey, South-East Asia, North Asia, the Americas and Europe. Collectively the Trade Mission Program is expected to facilitate more than $1.5 billion in additional exports in the period 13-24 months following the missions, as reported by participating companies. The Department’s Export Skills Program supported the Trade Mission Program, providing training and information sessions on business skills and international markets to 646 companies across metropolitan and regional Victoria. The Department operated a range of communications channels to engage with Victorian businesses, including the recently upgraded website, business.vic.gov.au, a central site for information on starting and running a business. The website provides tools to help businesses improve their productivity and reduce the burden of red tape, while assisting with regulatory compliance obligations. The Department also provided news, advice and interactive tools specific to the needs of Victorian businesses through its fortnightly Small Business Victoria Update eNewsletter and through social media. Subscriptions to the Small Business Victoria Update increased from 57,000 in 2011-12 to 70,000 in 2012-13. There were 383,320 social media interactions for 2012-13, with membership of the Business Victoria Facebook group, ‘I am a business owner in Victoria’, increasing to more than 2,300 members. An estimated 163,000 small and medium-sized businesses accessed business.vic.gov.au services more than 11 times during 2012-13. These businesses using the website are 40 per cent more satisfied with the overall services the Government offers than those not using the website. Page 29 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 HIGHLIGHTS AND ACHIEVEMENTS: SUPER TRADE MISSION TO CHINA The Department’s Super Trade Mission to China in September 2012 was the largest to leave Australia. The Super Trade Mission was led by the then Premier of Victoria, the Hon. Ted Baillieu, and supported by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events; the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry; and the Hon. Richard DallaRiva, the then Minister for Employment and Trade. This mission attracted more than 650 delegates representing 406 organisations seeking to gain a first-hand understanding of China’s market dynamics and showcase their organisations with potential qualified customers, business partners and investors. Participants represented industries of strategic importance to both Victoria and China, including: automotive, aviation and aerospace, cleantech, education, food and beverage, ICT, life sciences, mining equipment and technology services, professional services (including financial, carbon markets and healthcare), sustainable urban design and tourism. This mission significantly strengthened Victoria’s investment relationship with China and generated positive outcomes for both economies, as well as additional exports and jobs for Victoria. Companies that participated in this mission reported more than $964 million in anticipated additional exports for the 13-24 month period following the mission. A number of significant investments were announced as part of the visit, including the China Construction Bank and the Industrial and Commercial Bank of China establishing a presence in Victoria; and VanceInfo announcing expansion of its Australian and New Zealand headquarters by 60 employees, bringing total employment numbers to 200 by 2014. Significant investment announced as part of the mission included: Victorian ICT company CPT Global striking a deal with leading technology service provider China eTek NICTA’s intended collaboration with Shanghai University on precision farming practices using the FarmNet software platform SmartTrans and Double Eagle China agreement to deliver e-shopping payments card technology for China Merchants Bank Environmental Protection Authority (EPA) Victoria signing a Memorandum of Understanding with the Xiangtan Environmental Protection Department EPA Victoria signing a Memorandum of Understanding with the Jiangsu Government when the latter visited Melbourne in December 2012 SUPER TRADE MISSION TO GULF STATES AND TURKEY The Gulf States and Turkey represent a major and fast-growing trading region for Victoria. It is now the second-largest value-added export region after South-East Asia. The Super Trade Mission in February 2013 was led by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events, and supported by the Hon. Peter Walsh, Minister for Agriculture and Food Security and Minister for Water, and the Hon. Dr Denis Napthine, the then Minister for Racing, Minister for Ports, Minister for Major Projects and Minister for Regional Cities. Page 30 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 The Trade Mission attracted 178 organisations, including leading business representatives from food and beverage, defence, marine, education, tourism, professional services, agribusiness, infrastructure and water management industries. The mission also visited Turkey to develop new and wider trade, investment and joint venture opportunities. This mission strengthened Victoria’s investment relationships with the region and generated substantial outcomes for both economies, as well as additional exports and jobs for Victoria. Participating companies reported more than $127 million in anticipated additional exports for the 13-24 month period following the mission. Companies participated in a range of events and activities, including Gulfood, the world’s largest annual food and beverage trade fair; the International Defence Exhibition and Conference (IDEX) Abu Dhabi; Dubai International Boat Show; the A2 Education Fair; and significant buyer meetings and forums with relevant local government and business representatives. More than 70 Victorian companies participated at Gulfood in Dubai, with 40 Victorian food and beverage companies showcasing their products on the Victorian stand. SUPER TRADE MISSION TO INDIA In March 2013, the Super Trade Mission Program visited India, a country with a rapidly growing economy and an important player in the shift of global economic and political influence to Asia. The Trade Mission was led by the Hon. Louise Asher, Minister for Innovation, Services and Small Business and Minister for Tourism and Major Events, and supported by the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry and the Hon. Richard Della-Riva, the then Minister for Manufacturing, Exports and Trade. The mission visited Mumbai, Bangalore, Delhi, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad and Gandhinagar. The mission attracted 146 organisations and included 180 delegates representing nine industry sectors, including automotive, aviation and aerospace, biotech, cleantech, education, food and beverage, ICT, infrastructure and tourism. Participating companies reported projected export sales of more than $110 million in the period 13-24 months following the mission. Key outcomes from the 2013 Super Trade Mission to India include: launch of the Victorian Government’s India Strategy ‘From Engagement to Partnership’ in Mumbai launch of the 2013 Indian Film Festival of Melbourne program in Mumbai with Indian Film Festival of Melbourne ambassador and one of India’s leading actors, Vidya Balan awarding the 2013 Victoria India Doctoral Scholarships to Indian students co-hosting a Sustainable Urban Development roundtable with the Federation of Indian Chambers of Commerce and Industry to showcase Victoria’s capabilities in this area launch of a Melbourne photography exhibition by leading Indian photographer Atul Kasbekar. The exhibition is part of a tourism campaign to promote Melbourne and Victoria as a tourism destination to the Indian tourism industry a Victoria India Higher Education Dialogue in New Delhi, a development on a previous education roundtable held during the Super Trade Mission to India in February 2012. The dialogue expanded and strengthened engagement between Victorian and Indian universities announcement of 120 new high-tech jobs to be created in Victoria with the expansion of global software services company, SAP opening of the new office of we-do-IT in Hyderabad. we-do-IT expects to create 15 new jobs in Victoria as a result of increasing its global capacity announcement that Mumbai-based pharmaceutical company Cipla has opened its Australian Headquarters in Melbourne. This marks one of the first investments by the company in a regional office outside India Page 31 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 SUPER TRADE MISSION TO SOUTH-EAST ASIA In June 2013, the Government conducted a Super Trade Mission to countries within the Association of South-East Asian Nations, Victoria’s largest export market for both goods and services. The mission was led by the Premier of Victoria, the Hon. Dr Denis Napthine and supported by the Hon. Louise Asher, Minister for Innovation Services and Small Business, Minister for Tourism and Major Events and Minister for Employment and Trade; the Hon. Gordon Rich-Phillips, Minister for Technology and Minister responsible for the Aviation Industry; the Hon. Peter Walsh, Minister for Agriculture and Food Security and Minister for Water; and the Hon. Ryan Smith, Minister for Environment and Climate Change. The mission visited Malaysia, Singapore, Indonesia, Vietnam, Thailand and the Philippines. More than 300 organisations participated in the mission from a diverse set of Victorian industries, including ICT, health and aged care, infrastructure, automotive, aviation, tourism, education, wealth and funds management, food and beverage (including wine), and cleantech. This mission was completed in late June 2013 and company export projections are still to be finalised. However, initial projections of export sales by participating companies are expected to total more than $106 million in the period 13-24 months following the Trade Mission. As part of the mission, the Premier announced that Victoria would reopen the Indonesia Victorian Government Business Office in Jakarta, signalling a strengthened commitment to the region. The mission is expected to generate substantial outcomes for Victoria, as well as additional investment, exports and jobs for the state, including: Baby Royale, as a result of engagement with the Department and participation in this and past Trade Missions, secured a contract to supply its products to about 350 supermarkets in Malaysia. First-year sales of $2 million and $20 million over five years are estimated Tune Hotel will open its first hotel in Australia in Melbourne’s CBD in November 2013. The Tune Group will also establish its Australian and New Zealand operational headquarters in Melbourne. This investment is expected to create up to 100 jobs Telekomunikasi Indonesia, the country’s largest telecommunications company, chose Melbourne as the site of its first Australian office, announced during the Trade Mission. The new Telkom Australia office will create jobs and partnerships with local businesses in Victoria Aircraft Maintenance Services Australia announced an expansion of maintenance operations at Melbourne Airport, creating 100 jobs Victorian print management software company, Papercut International, signing a letter of appointment with Bizmann (Singapore) to be the Authorised Solution Centre for South-East Asia Streamline Solutions, securing its first customer, Singapore Mercantile Co-Operative, to use its core processing system in Singapore Geelong’s Sky Software announcing its collaboration with Singapore-based, Inchone, which will offer Blue Sky to the Singaporean market Rectifier Technologies Pacific Pty Ltd, together with business partner ADC Power Concept, secured a significant order of unique modular hot swappable power supplies to Petronas Malaysia, for its oil field refining and gas processing plants Page 32 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 TECHNOLOGY TRADE AND INTERNATIONAL PARTNERING PROGRAM The Technology Trade and International Partnering (TRIP) Program provides grants for export-ready Victorian ICT companies to attend recognised overseas trade shows and events. In 2012-13, 289 grants were provided, generating more than $126 million in anticipated exports over the next 12 months and more than $304 million in anticipated exports over the next 24 months. A separate TRIP program was also available for life sciences companies, which in 2012-13 provided 91 grants and is expected to generate $72.9 million in anticipated exports over the next 12 months and $191.4 million in anticipated exports over the next 24 months. INBOUND MISSIONS In addition to the Trade Mission Program abroad, the Department facilitated major inbound missions during 2012-13, to coincide with the following events: International Food and Beverage Trade Week During International Food and Beverage Trade Week, the Department hosted a three-day program for targeted, senior international buyers from South-East Asia, China, Japan and South Korea. The events were held to coincide with the Melbourne Food and Wine Festival. Automotive Week As part of Automotive Week 2013, the Department led an inbound mission of delegates from South Korea, Germany, Malaysia, China, Indonesia and Thailand. The Department partnered with the Australian Grand Prix Corporation to deliver an Industry and Innovation Precinct at the Australian Grand Prix to promote the local manufacturing industry to prospective business partners and school children. Australian International Airshow – Aerospace and Defence Exposition The exposition and airshow was held at Avalon Airport from 26 February to 1 March 2013 and is expected to have generated approximately $20-25 million of direct investment within Victoria. The exposition was attended by 32,671 people. MANUFACTURING PRODUCTIVITY NETWORKS PROGRAM Launched in September 2012, the Manufacturing Productivity Networks Program is a major initiative of the Victorian Government’s manufacturing strategy, A More Competitive Manufacturing Industry. The $7.5 million program provides funding to business networks to undertake projects on behalf of their manufacturing member firms. Twelve networks were contracted to undertake projects and activities that will benefit 508 businesses. Projects and activities include: research in additive manufacturing, prototyping, testing and commercialisation of new products collaborative approaches for major projects opportunities for businesses in clean technology productivity audits and supply chain mapping digital manufacturing, innovation and leadership seminars coaching and peer-to-peer forums Page 33 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 REFORMS TO THE VICTORIAN INDUSTRY PARTICIPATION POLICY On 1 January 2013, the Government introduced reforms to the Victorian Industry Participation Policy. The policy targets Government procurement where there are contestable goods and services, which are those goods and services with competitive international suppliers and competitive local suppliers. If there are no significant contestable items, bidders no longer need to prepare a Victorian Industry Participation Policy Plan. Instead, only an estimate of total local content is required. A consultation process for grants and design contracts has also been introduced. This process replaces Victorian Industry Participation Policy Plans for grants and ensures design specifications for projects above $3 million in Melbourne or $1 million in regional Victoria do not inadvertently exclude local industry from bidding into a supply chain for Government work. The Industry Capability Network (Victoria) Ltd assists the Department in the implementation of the reforms, and has developed a new online smart form to make the process easier for businesses and the Government. The Department and ICN Victoria have jointly held information sessions for businesses and for Victorian public sector bodies to raise awareness and understanding of the Victorian Industry Participation Policy and the 2013 reforms. The reforms are contributing towards the Government’s red tape reduction target. It is expected that the number of plans required will drop by at least 20 per cent, and indicative results suggest that this reduction is being exceeded. STREETLIFE More than 70 applications from local councils and business or trader associations were received for the first round of Streetlife. Twenty-four councils received $457,730 and eight business/trader associations received $39,340 to assist business improvement projects in local shopping areas across Victoria. More than 60 per cent of round one projects will be delivered in regional Victoria. SMALL BUSINESS FESTIVAL The Small Business Festival creates greater awareness and uptake of both Government and private sector small business support services. In 2012, the festival was refocused to place greater emphasis on events being held in regional Victoria and, in particular, at times more convenient for small business owners. More than 32,000 participants received assistance through workshops, conferences, expos, seminars and events, and 67 per cent of attendees agreed the festival increased their awareness of available Victorian Government support services. HAMER SCHOLARSHIPS PROGRAM The Hamer Scholarships program provides scholarships for Victorian students to undertake intensive Chinese-language study in Victoria’s sister-state, Jiangsu, China. In 2012-13, two selection rounds were held, bringing the total number of Victorians awarded a Hamer Scholarship to 57. The Premier, the Hon. Dr Denis Napthine, announced the expansion of the Hamer Scholarships program to Indonesia while in Jakarta in June 2013. Page 34 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 SMALL BUSINESS WORKSHOPS AND SEMINARS PROGRAM AND GROW YOUR BUSINESS GRANTS During 2012-13, the Department continued its Small Business Workshops and Seminars Program, including the new Commercialising Your New Idea workshops, to assist businesses at the early stages of innovation, and the Winning Government Business workshops, which help small and medium-sized businesses to access opportunities in Government procurement. Throughout the year, 4,235 small business operators participated in 360 workshops and seminars. The Department also awarded 87 Grow Your Business grants, valued at $1,036,577. The grants help small businesses develop and implement strategies to become internationally competitive. MOBILE BUSINESS CENTRE The Department’s Mobile Business Centre visited 103 locations throughout Victoria (52 regional and 51 metropolitan) and delivered more than 703 mentoring sessions (285 regional and 418 metropolitan). In late 2012, it visited Kyabram, Echuca, Shepparton and Warrnambool to deliver free mentoring assistance to businesses affected by the Banksia Financial Group collapse. Mentoring sessions are provided by highly experienced business advisers from the Small Business Mentoring Service. The sessions provide small business operators with specialist industry knowledge, and help them gain insights and ideas in a variety of areas, including marketing, finance, human resources and sales. RETAIL LEASES AMENDMENT ACT 2012 In 2012, the Retail Leases Act 2003 was amended to reduce red tape for small business owners. The Retail Leases Amendment Act 2012 removed the requirement to notify the Victorian Small Business Commissioner of certain information each time a lease is entered into or renewed. In April 2013, the Retail Leases Regulations were remade following an extensive consultation process and preparation of a Regulatory Impact Statement. The new regulations introduce streamlined disclosure statements and provide greater protection for tenants from interruptions to their business caused by planned works that may be known by the landlord when a lease agreement is signed but not revealed to the tenant. VICTORIAN SMALL BUSINESS COMMISSIONER – REVIEW OF ROLE AND POWERS In 2013, 10 years since the introduction of the Victorian Small Business Commissioner, the Government released a consultation paper inviting public comment on ways to enhance the Commissioner’s functions and powers. After taking into account all submissions, the Government will consider amending the Small Business Commissioner Act 2003 to ensure the role and functions of the Commissioner keep pace with current developments in business and law. BUSHFIRE AND FLOOD ASSISTANCE In 2012-13, mentors from the Small Business Mentoring Service assisted small businesses affected by the bushfires in the Alpine Shire region. Mentors also assisted businesses affected by Victoria’s March to June 2012 floods. The Department approved 659 disaster assistance grants valued at $12.5 million, and 46 low-interest loans valued at $2.2 million. Page 35 of 36 Department of State Development, Business and Innovation Annual Report 2012-13 BUSINESS VICTORIA CONTACT CENTRE The Business Victoria Contact Centre helped Victorian businesses by providing information on: starting a business; assisting with bookings for workshops and events; obtaining the services of a business mentor; and providing referrals to other Victoria Government agencies and industry associations. In 2012-13, the Contact Centre responded to more than 27,800 calls and emails from Victorian small businesses. The Contact Centre handled 5,500 calls for the Office of the Small Business Commissioner in relation to business-to-business disputes and retail leasing. BUSINESS REGULATION REFORM In November 2012, the Victorian Business Licencing Information Service and Find a Form service transitioned to the national service delivered by the Council of Australian Government’s Business Online Services Program. This national service, known as the Australian Business Licence Information Service, allows businesses to find all Commonwealth, state and local government licences, permits, registrations, standards and guidelines needed to meet compliance responsibilities. Page 36 of 36