Department of Business & Innovation Annual Report, 2011-2012 - Narrative
Word Version
Department of Business and Innovation Annual Report
2011-12 -Part 1 – Narrative
Table of contents
01 OVERVIEW
2
Secretary’s foreword
2
Organisational chart
5
Ministers
6
Portfolio major achievements
6
Governance arrangements
8
2011-12 Interim Corporate Plan
10
02 STRATEGIC OBJECTIVES
11
Victorian businesses are better placed to start up, export and grow
11
Ensure Victoria is an increasingly attractive place to invest
21
Encourage more tourists to visit Victoria
27
Develop a skills base to better meet industry needs
30
Ensure Victoria’s infrastructure needs are better met
33
Generate knowledge and stimulate innovation
35
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01 Overview
Secretary’s foreword
ECONOMIC CONTEXT
The past year was one of challenge and change for the Department, with growth in the Victorian
economy constrained by subdued global and national economic conditions, the high Australian
dollar and cautious consumer and business sentiment.
The ongoing strength of the currency has added momentum to structural change in key tradeexposed industries and this is expected to continue over the medium term. Business has responded
to these tougher conditions by adopting further efficiency improvements and cost reductions,
including consolidation of operations. Exporters and companies competing with imports have found
it particularly hard. The growth of online commerce and the global integration of supply chains also
means that more sectors are being exposed to international competition.
Growth across Australia is being heavily influenced by the resources-rich States, with the two-speed
economy seeing non-resource States like Victoria and NSW growing at less than the Australian
average. The Victorian Budget forecast growth in Gross State Product for 2011-12 was 1.5 per
cent, compared with 3 per cent nationally.
Employment levels in Victoria remained steady over 2011-12, notwithstanding that the number of
unemployed persons rose as job vacancies declined. At the same time, the State benefited from
total population growth and net overseas migration growing at above the Australian average.
Victoria has also maintained the highest level among the States in housing approvals and
construction.
Global growth prospects have gradually strengthened in recent months, following setbacks in 2011,
with the International Monetary Fund revising up its growth forecasts. Victorian growth is expected
to improve moderately (to 1.75 per cent) in 2012-13. Downside risks to the global economy remain,
particularly in the Eurozone, as countries seek to achieve a balance between fiscal consolidation
and structural measures to support growth.
DEPARTMENTAL HIGHLIGHTS
In 2011-12, the Department introduced an enhanced business engagement model to build enduring
relationships at the enterprise level, promoting growth and productivity across the State. This
approach is delivered by a team of professionally trained Business Development Managers. They
work directly with businesses on resolving issues relating to regulation, market development,
infrastructure, skills, procurement and innovation and to collect business intelligence to inform policy
development and to support business advocacy at the national level.
The Business Development Managers are based in the Department’s expanded network of
statewide and international Victorian Government Business Offices, which includes new offices in
the Central Business District, Tottenham and Ringwood and new international offices opening in
Mumbai and Beijing. The Business Development Managers located in these and the Department’s
other international and State-based Victorian Government Business Offices, are working to
generate new export and investment opportunities for Victoria.
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TRADE MISSIONS
The Department delivered two Super Trade Missions, one to the Middle East and the other to India,
and targeted missions to key markets in Japan and Korea.
In February 2012, the largest-ever trade mission from Australia to India was led by the Premier of
Victoria, Ted Baillieu, supported by the Minister for Innovation, Services and Small Business, and
Minister for Tourism and Major Events, Louise Asher; the Minister for Manufacturing, Exports and
Trade, Richard Dalla-Riva; and the Minister for Technology and Minister responsible for the Aviation
Industry, Gordon Rich-Phillips. More than 200 organisations, represented by approximately 260
delegates, travelled to six cities and have reported that they anticipate significant total export sales
over the next two years.
One of the India mission’s more significant outcomes was the signing of a Memorandum of
Understanding between the Victorian Government and Mahindra Reva Electric Vehicles. The
agreement will support a feasibility study exploring the potential for research, supply chain
management and manufacturing of clean technology vehicles in Victoria.
During the mission, RMIT University announced it would collaborate with ABB Australia and the
ABB Corporate Research Centre in India to develop the Australia-India Research Centre for
Automation Software Engineering at the university, as well as establishing a research presence at
ABB’s facility in Notting Hill. ABB Australia expects to generate 300 new highly skilled jobs in
Victoria over the next four years.
Building on the India-Victoria links strengthened by the mission, Mind Blowing Films delivered the
Indian Film Festival in Melbourne over 10 days in mid-2012, boosting screen ties between Victoria
and India.
Minister Asher also led a mission of over 100 companies to the Middle East in February.
Companies working in agribusiness, water, infrastructure, food, and tourism travelled to Qatar and
the United Arab Emirates, and reported sales of over $18 million immediately following the mission,
with significant export sales anticipated over the next two years.
The Department will deliver more trade missions to key markets in 2012-13, including a Super
Trade Mission to China in September 2012, to be led by the Premier. These missions open up new
export and collaboration opportunities for Victorian companies, and create an increased awareness
and interest in the State. This is evidenced by an increase in the size and scale of inbound missions
to Victoria in 2012.
ACHIEVEMENTS
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In December 2011, Minister Dalla-Riva launched the Victorian Government’s Manufacturing
Strategy A More Competitive Manufacturing Industry – informed by input from the Victorian
Competition and Efficiency Commission’s inquiry into the Victorian manufacturing sector and by
numerous manufacturers and industry bodies. The strategy delivers clearly focused initiatives to
help lift the productivity and competitiveness of Victorian manufacturing and provide better
market intelligence, particularly for small and medium- sized businesses.
Under the banner of Victoria’s Technology Plan for the Future, the Department delivered a suite
of plans covering information and communications technology, small technologies and
biotechnology. The plans, launched by Minister Rich-Phillips in October and November 2011,
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were an election commitment to increase productivity and drive economic growth across the
three technology streams.
The Department worked successfully with the Commonwealth Government and other
stakeholders to secure the future of the Australian Synchrotron. The Synchrotron contributes
significantly to Victoria’s scientific and research effort in medical research, biosciences and
agriculture.
Tourism played an important role in Victoria’s economic development. China overtook New
Zealand as Victoria’s leading market for international visitors. To support and build on this
market growth, the Premier launched Victoria’s China Tourism Strategy in May 2012. The
strategy focuses on increasing tourism investment and building on existing tourism, education
and migration links between Victoria and China.
The successful Play Melbourne campaign was extended through the launch of the Play
Melbourne iPhone App in December 2011. The App provided visitors with an interactive
resource showcasing local tourism products.
Victoria hosted a number of major exhibitions and events, supported by the Department. The
Grace Kelly: Style Icon exhibition at the Bendigo Gallery attracted over 152,000 people and
generated significant economic benefit for the Bendigo region.
The $20 million Regional Aviation Fund was launched in February 2012 and will contribute to
capital works projects that will provide considerable economic and tourism benefits for regional
communities. The fund is designed to improve facilities at public-use regional airports.
A core function of the Department was to facilitate investment in the State. Despite weakening
global economic conditions, the Department helped bring significant projects to Victoria,
including:
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a $60 million investment by Olam Orchards Australia, whose parent company is in
Singapore, to set up an almond processing plant in Mildura
a $10 million investment by VanceInfo, a major Chinese IT consulting and solution provider
who established their Australian headquarters in Melbourne, creating an estimated 100
direct jobs
major capital works, including the new Biosciences Research Centre at La Trobe University,
the acclaimed redevelopment of Hamer Hall at Southbank, the Melbourne Park
Redevelopment, Princes Pier Restoration and the improvement of sports facilities at
Lakeside Oval at Albert Park – these projects were project-managed by the Department,
through Major Projects Victoria
LOOKING AHEAD
Despite the challenges of difficult global economic conditions in 2011-12, the Department
consolidated and built upon the new directions set by the Government and delivered on its strategic
objectives through increased engagement with Victorian business.
Thanks to the hard work and dedication of its officers and its new business engagement model, the
Department is well positioned to continue to help more Victorian businesses grow and thrive in
2012-13.
Howard Ronaldson
Secretary
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Organisational chart
Department of Business and Innovation
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Ministers
OUR MINISTERS
1. The Hon. Louise Asher MLA Minister for Innovation, Services and Small Business Minister for
Tourism and Major Events
2. The Hon. Richard Dalla-Riva MLC Minister for Employment and Industrial Relations Minister for
Manufacturing, Exports and Trade
3. The Hon. Dr Denis Napthine MLA Minister for Major Projects
4. The Hon. Gordon Rich-Phillips MLC Minister for Technology Minister responsible for the
Aviation Industry
OUR PARLIAMENTARY SECRETARY
5. Russell Northe MLA Parliamentary Secretary for Small Business
Portfolio major achievements
BUSINESS ENGAGEMENT
In late 2011, the Department more than doubled the number of Business Development Managers to
engage businesses across Victoria. In engaging with business, Business Development Managers
gathered information and built enduring relationships to better understand the business
environment. This work enabled the Department to connect more effectively with business, assist
them to achieve sustainable growth and enhanced productivity and, in turn, stimulated increased
employment, investment and export revenue for Victoria. The Department’s proactive approach to
engaging with business resulted in Business Development Managers having 4,800 face-to-face
discussions with businesses across Victoria during the year.
SUPER TRADE MISSIONS
Super Trade Missions to the Middle East and India represented more than 300 Victorian
organisations. The missions delivered immediate sales of more than $21 million, with significant
total sales anticipated in the two years following the missions. The India mission was led by the
Premier of Victoria, Ted Baillieu, supported by the Minister for Innovation, Services and Small
Business, and Minister for Tourism and Major Events, Louise Asher; the Minister for Manufacturing,
Exports and Trade, and Minister for Employment and Industrial Relations, Richard Dalla-Riva; and
the Minister for Technology and the Minister responsible for the Aviation Industry, Gordon RichPhillips.
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INNOVATION, SERVICES AND SMALL BUSINESS
The Government continued to provide year-round assistance for small business through a range of
practical services delivered by Small Business Victoria. These included low-cost workshops and
seminars in Melbourne and regional Victoria on key topics such as business start-up and planning,
growing a business and financial management.
Small business mentoring is a key form of assistance offered by Small Business Victoria in
partnership with the Small Business Mentoring Service. Mentoring sessions cover expert advice on
business planning and strategies. More than 3,200 subsidised business mentoring sessions were
provided to small businesses during 2011-12. As well, more than 550 free business mentoring
sessions were conducted across Victoria through the Mobile Business Centre – a travelling advisory
service that visits communities in metropolitan, rural and regional Victoria. Following the 2012
Victorian floods, this service also assisted businesses in the flood-affected towns of Numurkah and
Nathalia with business recovery.
This year the Department formed a new Indigenous Economic Development Unit to focus efforts to
improve Indigenous economic participation in Victoria and support the growth and diversity of
Victoria’s Indigenous businesses.
The Business Victoria web portal provided a key link between Victorian businesses and
Government, with two million visits during 2011-12. Government interactions increasingly indicate
ongoing, two-way relationships, with 350,000 social media interactions and 32,000 calls and emails.
Businesses use the online information and tools to make compliance easier, improve their skills and
solve problems to help their business grow.
Victoria’s reputation as a destination of excellence in international education was highlighted by the
awarding of six Victorian International Research Scholarships and ten Victoria India Doctoral
Scholarships to attract the best and brightest international PhD students to undertake research
studies in Victorian Universities.
TOURISM AND MAJOR EVENTS
In May 2012, the Government launched Victoria’s China Tourism Strategy to engage Government,
business and the tourism industry to strengthen Victoria’s relationship with China.
The tourism marketing campaign, Play Melbourne, had a significant role in attracting more interstate
visitors to Victoria, with key indicators showing positive results. The Play Melbourne video reached
one million views on YouTube, 540,000 visits to its dedicated website and 19,000 Facebook fans.
Tutankhamun and the Golden Age of the Pharaohs at Melbourne Museum generated a total
attendance of 796,277, attracting more than 326,000 interstate and international visitors (41 per
cent of attendees). Employment and Industrial Relations
The Department continued to advocate for a fair and productive regulatory and policy framework to
influence workforce participation, industrial relations and skilled and business migration through
measures, including its submission to the Review of the Fair Work Act 2009.
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MANUFACTURING, EXPORTS AND TRADE
In December 2011, the Department released the Victorian Government’s manufacturing strategy, A
More Competitive Manufacturing Industry, which aims to lift the productivity and competitiveness of
Victoria’s manufacturing sector. The Victorian State Budget 2012-13, announced in May, provided
funding of $58 million over four years to deliver the initiatives in the manufacturing strategy. These
initiatives include: delivery of a Specialist Manufacturing Service; a Manufacturing Productivity
Networks program; an Investing in Manufacturing Technology competitive grants program; a
Building Innovative Small Manufacturers initiative; and a Managing Transition for Retrenched
Workers initiative.
In addition to the international trade missions, programs like the Innovation Commercialisation
Program supported businesses to build capacity, implement technology transfer and knowledge
adaptation, and provided access to finance.
The Department’s international network of Victorian Government Business Offices focused on
attracting direct investment, developing exports, managing relationships and a range of whole-ofVictorian Government initiatives.
MAJOR PROJECTS
In 2011-12, Major Projects Victoria managed approximately $2.5 billion worth of major projects in
planning or delivery stages, including the Melbourne Park Redevelopment and the Southbank
Cultural Precinct Redevelopment.
TECHNOLOGY
The Department’s work continued to focus on ensuring Victoria retained its position as a leader in
technology, recognising the important role it plays in contributing to a competitive, productive and
growing economy. This work included: development of a Technology Trade and International
Partnering Program; installation in June 2012 of the Victorian Life Sciences Computation Initiative’s
Peak Computing Facility, the fastest, most powerful computer in Australia and the largest dedicated
to life sciences worldwide; and establishment of the Victorian Biotechnology Advisory Council in
December 2011 to advise Government on current and emerging opportunities and threats to the
Victorian biotechnology sector.
AVIATION INDUSTRY
Three regional airports – Warrnambool, Bendigo and Latrobe – were allocated a total of $8.2 million
from the four-year $20 million Regional Aviation Fund announced in May 2011 as part of the 201112 Victorian Budget. The fund provides capital to improve facilities at regional airports, helping to
deliver extra economic and tourism benefits to regional communities.
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:
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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 four Ministers for governance of
the Department. The Secretary chairs the Strategy and Management Team, the strategically
focused leadership team that provides an integrated approach to the Department’s operations,
emphasising accountability, prioritisation and coordination of whole-of-Department issues.
The Strategy and Management Team comprises: the Secretary and Deputy Secretaries; the
Principal Adviser; the Executive Director, Strategic Communications; and the Executive Director,
Strategic Planning and Ministerial Services. It meets weekly and is responsible for:
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determining the Department’s strategic direction, consistent with Government policy
appropriately resourcing the Department’s activities
building a high-performance culture
managing relationships with stakeholders
The Secretary is assisted by key committees, including the:
Planning Committee: chaired by the Secretary – provides long-term strategic leadership on wholeof-portfolio priorities and challenges, and standards for corporate and business planning.
Information Management and Technology Strategy Board: chaired by the Principal Adviser, Office
of the Secretary – 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 and
Communications – 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 and
Communications – responsible for overseeing the Department’s procurement and contracting
processes through delegated powers assigned by the Victorian Government Purchasing Board.
Occupational Health and Safety Committee: chaired by the Deputy Secretary, Corporate Services
and Communications – 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 and
Communications – responsible for endorsing the Department’s Environment Policy, Environmental
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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 Communications, 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 Enterprise Bargaining Agreement.
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 2011-12 Risk
and Audit Committee were:
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Michael Perry
Fiona Bennett
Merran Kelsall
Peter Lewinski
Sonja Gibson
Independent chair
Independent member
Independent member
Independent member
Departmental member
2011-12 Interim Corporate Plan
The Department of 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.
The Department’s Strategic Objectives were revised and detailed in the 2011-12 Budget Papers
Part 3. The objectives include:
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supply low-cost information and assistance to Victorian businesses so they are better placed to
start up, export and grow
provide market intelligence and assistance to organisations to make it easy to invest and
promote Victoria as an attractive place to invest
create awareness campaigns to encourage more tourists to visit Victoria
identify industry requirements for skilled workers, and assist businesses in accessing skilled
workers from overseas, to align with Victoria’s industry needs
support organisations to undertake collaborative research so knowledge is created and
innovation stimulated
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KEY STRATEGIC PRIORITIES FOR 2011-12
In addition to focusing on the delivery of its objectives during 2011-12, the Department placed
additional emphasis on the following key strategic priorities:
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exports – created economic opportunity for Victorian businesses by providing export
development assistance in relation to product, financing, marketing and logistics
industry assistance – supported businesses to maximise jobs growth, business growth and
commercial opportunities
manufacturing – responded to the findings of the Victorian Competition and Efficiency
Commission inquiry, resulting in the Manufacturing Strategy: A More Competitive Victorian
Manufacturing Industry
employment – streamlined employment programs with a focus on youth and Indigenous
jobseekers and skilled migration
regulation reform – tailored regulation to limit the impact on business
02 Strategic Objectives
Victorian businesses are better placed to start up, export
and grow
Target 1 Facilitate $1,000 million in exports and imports replaced
Actual Facilitated $2,172 million in exports and imports replaced
Each year Victorian businesses contribute $30 billion to the Victorian economy by exporting goods
and services to more than 200 countries.
In 2011-12, the Department provided opportunities for Victorian businesses to access new and
existing markets to ensure continued economic growth in the face of the high Australian dollar, a
volatile global economy and increasing international competition.
Throughout the year, the Department helped businesses navigate foreign markets by advising them
on how to tailor and market their products, access finance, and tap into established supply chains.
The Department exceeded its target for exports facilitated and imports replaced (Figure 1, on page
15).
To achieve exports growth, the Department, through its international engagement, focused its effort
on priority markets. These markets included China, India, the Middle East and South East Asia, and
Victoria’s industrial capability more than matched the demand.
A key component of the Department’s international engagement was the large-scale and targeted
trade mission program. It helped more than 1,000 organisations access new global markets and
strengthen their competitiveness and productivity. A highlight of this program included a Super
Trade Mission to India, the largest ever from Australia.
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The Department worked to ensure businesses were well prepared for this mission by coordinating
the activities through its local and international network of Victorian Government Business Offices.
Employees at these offices provided introductions to business leaders and helped them achieve
export success by offering local knowledge on markets and industry, in-market business programs,
market entry advice, high-level business promotion, and initiating valuable connections.
Such a hands-on approach was consistent with the Government’s commitment to engage with
individual firms and deliver business-specific solutions on a wide-ranging scale – from cultural
information to logistical support.
Highlights and Achievements
SUPER TRADE MISSION TO INDIA
A highlight of the 2011-12 financial year was the Super Trade Mission to India led by the Premier of
Victoria, Ted Baillieu, supported by the Minister for Innovation, Services and Small Business, and
Minister for Tourism and Major Events, Louise Asher; the Minister for Manufacturing, Exports and
Trade, and Minister for Employment and Industrial Relations, Richard Dalla-Riva; and the Minister
for Technology and Minister responsible for the Aviation Industry, Gordon Rich-Phillips.
The mission attracted more than 260 business delegates representing more than 200
organisations. These businesses were chosen from the following nine strategic industry sectors of
importance to the Victorian and Indian economies: automotive; aviation and aerospace; clean
technology; education; food and beverage; ICT; life sciences; tourism; and sustainable urban
design.
The size and scope of the Super Trade Mission was a clear indicator of the Department’s capacity
to facilitate business engagement and support the Government’s relationship with priority markets.
The mission delivered a number of benefits with participating organisations reporting immediate
export sales of $3.46 million, expected sales of more than $137 million between one and 12 months
after the mission, and expected sales of more than $214 million between 13 and 24 months after
the mission.1
Mission Outcomes
GRG International
Victorian company, GRG International, signed a Memorandum of Understanding with Madhya
Pradesh Consultancy Organisation. Under the agreement, GRG will supply ATMs and cash
dispensers for eligible recipients to access payments using transaction cards issued by GRG. A key
outcome will be a distribution system for payments made under India’s National Rural Employment
Guarantee Act. The agreement will create 50 jobs in Victoria and $500 million in Victorian exports
over the next 10 years.
Vyoneesh Rosebank Technologies
An Indian-Victorian joint venture, Vyoneesh Rosebank Technologies, will manufacture, maintain
and provide product support for components used by India’s defence and aerospace industry. The
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Victorian partner, Rosebank Engineering, is a leading supplier of defence, commercial aerospace
and land systems products and services. The project will deliver up to 10 new jobs in Victoria and
highlight the State’s aerospace expertise which will, in turn, help promote further investment.
New Delhi roundtable on education and training partnerships
A historic, bilateral education roundtable in New Delhi was attended by Indian and Victorian
university vice-chancellors, TAFE institutes, leading education providers and high-level Government
officials.
As part of the education component, 16 education partnerships, 10 new PhD scholarships and an
additional $1 million for the expansion of collaborative Victoria-India vocational training programs
were announced. This program supports the Indian Government’s mandate to upskill 500 million
people by the year 2022.
Chocolatier Australia
Melbourne-based company Chocolatier Australia will begin supplying its premium truffles, pralines
and chocolate novelties to the San Churro café in Mumbai. San Churro is a Victorian-based
chocolate café franchise that in 2011 won the Chocolate Merchants of Mumbai master franchise for
San Churro stores in India. Over the next 18 months, Chocolatier Australia plans to open eight
branded chocolate shops across Mumbai and New Delhi to facilitate the sale of its products to other
retail outlets in India. In its first full year of operations, Chocolatier Australia anticipates an export
value of $1 million to its branded stores and wholesale distribution.
REGIONAL BUSINESSES AND SUPER TRADE MISSION TO THE MIDDLE
EAST
Regional businesses were also represented on the Super Trade Mission to India, which was
preceded by a delegation to the Middle East led by Minister Asher. The Super Trade Mission to the
Middle East included more than 100 businesses from industry sectors including food, wine,
agribusiness, education and tourism, and was the largest trade mission from Australia to this region.
This provided regional businesses with an opportunity to showcase their products, access new
market opportunities, and develop new connections and business partnerships.
Companies have reported immediate export sales of $18 million, expected sales of more than $79
million in the 12-month period following the mission, and forecast more than $137 million in sales in
the 13 to 24 months following the mission.2
Mission Outcomes
Bega Cheese
Bega Cheese announced a $7.8 million expansion of its Tatura facility in response to securing
export contracts in the Middle East. The production of its cream cheese will increase from 15,000
tonnes to 22,000 tonnes per annum.
Baby Royale
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Traralgon firm Baby Royale generated $3.5 million in direct sales through its participation in the
Middle East Super Trade Mission.
Monash University and Fatima College
Monash University and Fatima College of Health Sciences in Abu Dhabi signed a five-year
agreement that will see the Monash University Faculty of Medicine, Nursing and Health Sciences
and Fatima College offer Emirati students four Bachelor level courses in Allied Health, one of the
United Arab Emirates’ priority health sectors.
Murray Goulburn Cooperative
Murray Goulburn Cooperative announced the expansion of their international footprint, with an
office in Dubai to service the world’s second largest dairy import market – the Middle East and
North Africa. Currently this region imports a combined 1.2 million tonnes of dairy, which is valued at
$3.8 billion.
Figure 1 > Exports Facilitated targets and results from 2007-08 to 2011-12
EXPO 2012 YEOSU, SOUTH KOREA
The Department facilitated Victoria’s participation in the Expo 2012 Yeosu and trade mission to
South Korea as part of an election commitment to promote Victorian exports. In May 2012, a
Victorian delegation of more than 50 businesses visited South Korea to build trade, investment,
cultural and government-to-government links in this important market. Victorian businesses
participated in a series of buyer meetings, trade shows, networking activities and workshops, and
attended opening day celebrations at the Australian Pavilion at the Expo 2012 Yeosu.
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Businesses that participated in the Expo 2012 Yeosu reported expected sales of $25 million for the
next 13 to 24 months. One participant, Lupe Wines, presented its unique single-serve wine in a
glass at the Seoul Food and Hotel trade show and recorded immediate sales of $25,000. Lupe
Wines expects additional sales of $600,000 over the next two years.
AUSTRALIAN AUTOMOTIVE WEEK
In addition to trade missions, the Department also hosted numerous inbound missions. One of the
largest was held in March 2012 to coincide with the Australian Formula One Grand Prix. Australian
Automotive Week attracted 117 delegates from the USA, the Middle East, Thailand, Malaysia,
China, Korea and Indonesia. The week promoted the diversity and capability of the Victorian
automotive industry to overseas component buyers.
Results from Australian Automotive Week included:
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the announcement that Victorian production of Australia’s first all-terrain vehicle, Tomcar, will
commence in late 2012
Thai-based company Sammitr’s decision to establish its global research and development
centre in Melbourne
Kangan Institute’s signing of a Memorandum of Understanding with the Malaysian Automotive
Institute on training seminars for the automotive industry in Malaysia
The following announcements were also made during the week. Both were initiated through a 2010
Malaysia Trade Mission, with final negotiations completed during 2011-12:
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MtM’s $10 million contract to supply gear shift lock mechanisms to Proton Cars of Malaysia
Hella Australia’s $40 million contract to supply rear lamps to Proton Cars of Malaysia
A Skills Expo was also held at the Australian Formula One Grand Prix to promote manufacturing
careers to the next generation of Victorian workers. It reinforced the Government’s commitment to
retaining and further developing the State’s skilled workforce.
AIR SERVICES
In 2011-12, the Department worked with several international airlines to boost services to
Melbourne and ensure Victoria’s continued attraction as a popular tourist destination and centre for
international education. For example, Garuda Indonesia increased the frequency of its MelbourneDenpasar and Melbourne-Jakarta services; Jetstar commenced new daily Melbourne-SingaporeBeijing services; increased services were also announced for Royal Brunei Airlines and China
Southern Airlines.
REGIONAL AVIATION FUND
The $20 million Regional Aviation Fund was launched to provide capital funding for projects
designed to improve facilities at regional airports and provide economic and tourism benefits to
regional communities. In 2011-12, $5 million was allocated to Bendigo Airport, $2 million to
Warrnambool Regional Airport and $1.2 million to support the expansion of Latrobe Regional
Airport.
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INDUSTRY CAPABILITY NETWORK VICTORIA
In September 2011, the Government entered into a four-year contract with the Industry Capability
Network Victoria to facilitate local business capability and import replacement activities. The
contract includes a provision for Industry Capability Network Victoria’s continued administration of
the Victorian Industry Participation Policy. In 2011-12, the Industry Capability Network facilitated
$202.6 million in orders for local industry as a result of its activities.
DEFENCE AND AEROSPACE
The Department supported the Victorian defence and aerospace industry’s participation in the
Defence Global Supply Chain program, designed to help the industry fit into chains of multinational
companies. The program also helped Victorian businesses to win more than 60 per cent of the
$450 million in export work awarded through the program.
The Department supported the attendance of 33 Victorian businesses at major international
defence and aerospace industry trade shows and missions in the UK and the USA.
Victoria also secured the right to host the 2012 Land Warfare Conference and Exhibition in
Melbourne from 29 October to 2 November. It is expected to attract more than 3,000 delegates,
over 500 businesses and more than 500 exhibitors.
TECHNOLOGY, TRADE AND INTERNATIONAL PARTNERING PROGRAM
Announced as part of Victoria’s Technology Plans for the Future, the Technology, Trade and
International Partnering Program was established to encourage Victorian technology businesses to
take their products worldwide. The program supports the growth and internationalisation of ICT,
biotechnology and small technologies companies.
In 2011-12, the Department processed 300 applications to the Technology, Trade and International
Partnering Program, with successful businesses reporting more than $358 million in projected
export sales over the next 24 months.
VICTORIA – LEADER IN LEARNING
The Victoria – Leader in Learning initiative supports the State’s international education sector by
promoting Victoria as a premium education destination. In 2011-12, Victoria – Leader in Learning
provided for:
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student experience and support initiatives, such as the Student Welcome Desk at Melbourne
Airport and the popular international student information days
the redevelopment of the Study Melbourne website studymelbourne.vic.gov.au – the Victorian
Government’s portal to information on post-secondary study abroad options in Melbourne and
Victoria – the site is tailored to the needs of key consumer source markets in international
education and implementation is expected to be completed in 2012-13
education-focused trade missions (in and out-bound) with Korea, Japan, Malaysia, Indonesia
and India
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Target 2 Deliver 90 per cent client satisfaction levels for small business information
provision, referral, mentoring services and business programs
Actual 93 per cent client satisfaction levels achieved
Small business is essential to the Victorian economy. Each year, more than 520,000 small
businesses contribute about 30 per cent of the State’s production in industries including
manufacturing, retail, professional, technical and creative services. Small business accounts for
more than 1.2 million jobs, 47 per cent of private sector employment, and makes up 96 per cent of
all Victorian businesses.
In 2011-12, the Department engaged directly with small businesses by facilitating practical, low-cost
programs and workshops to improve management skills, business productivity, and generate jobs
and investment. The Department also offered information through business.vic.gov.au to assist in
cutting red tape and reducing the regulatory burden on small businesses.
The Department also fostered a competitive business environment by providing advocacy, policy
and program support to promote a business environment conducive to small business growth,
including low-cost dispute resolution through the Office of Victoria’s Small Business Commissioner.
Highlights and Achievements
SMALL BUSINESS WORKSHOPS AND SEMINARS
In 2011-12, the Department partnered with local councils and training providers across Victoria to
host more than 300 small business workshops and seminars, helping over 3,300 business people
and individuals to improve their business operations or start a business. Feedback from participants
indicated that 92 per cent found the information they received valuable and 95 per cent gave the
program a positive satisfaction rating.
MOBILE BUSINESS CENTRE
The Department coordinated the Government’s Mobile Business Centre. It visited 74 locations (35
regional and 39 metropolitan), conducted more than 550 free business mentoring sessions and
provided face-to-face information and assistance.
A key service of the Mobile Business Centre was the capacity for the Department to provide access
to highly experienced business volunteers from the Small Business Mentoring Service. The free
mentoring sessions gave small business operators insights and ideas on topics, including
marketing, finance, human resources, sales and specialist industry knowledge.
Independent evaluation in late 2011 showed 78 per cent of people who undertook a mentoring
session considered their mentor helpful.
VICTORIA’S SMALL BUSINESS FESTIVAL
Victoria’s Small Business Festival was held in August 2011 at venues around the State. The festival
aimed to improve business management capability by offering high quality information and
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education on matters relating to small business. It also sought to create greater awareness among
small business of public and private sector resources available to support them.
The 2011 festival attracted strong participation across hundreds of events held throughout the State
(64 per cent staged in metropolitan Melbourne and 36 per cent in regional Victoria) and through six
online seminars. Over 90 per cent of attendees agreed they gained additional skills and knowledge
from the festival events.
REGIONAL SMALL BUSINESS GRANTS
Of the grants approved as part of the Grow Your Business program, 43 per cent were to regional
Victorian businesses. This high uptake helped the growth and development of innovative small
businesses in rural and regional parts of the State.
INNOVATION COMMERCIALISATION PROGRAM
During 2011-12, the Department’s Commercialisation Program helped small-to-medium businesses
build capacity, implement technology transfer and knowledge adaption, and provided access to
finance.
The Department outsourced delivery of the program to private sector providers to maintain its focus
on supporting technology with clear commercial outcomes. In 2011-12, program partners helped
264 small-to-medium businesses, including those throughout rural and regional Victoria, through
seven individual programs. The following case study is an example of this effective facilitation.
Gippsland company trials waste management product in China
Innovative East Gippsland company Biomaster used the Regional Technology Commercialisation
Program (delivered by Pyksis on behalf of the Government) to accelerate its commercialisation
skills acquisition and showcase its natural biological products.
Biomaster manufactures and distributes products designed to break down biological waste, such as
garden waste, grease and sludge that blocks sewer pipes. The products contain bacteria that can
digest these waste products into environmentally sensitive by-products.
Its participation in the Government program led to an invitation to join the Global Acceleration
Program. The combined knowledge and mentoring helped Biomaster conclude successful trials with
China EPA leading to commercial negotiations in China.
VICTORIAN INDIGENOUS BUSINESS DIRECTORY
An online version and a hardcopy version of the Victorian Indigenous Business Directory were
produced during the year. The online version is available on business.vic.gov.au
The directory, which lists more than 150 small and medium-sized businesses, showcases the
Victorian Government’s support for Indigenous businesses, promoting them to help strengthen their
productivity, competitiveness and growth. The directory also reflects the growing sophistication and
diversification of Victorian Indigenous businesses.
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In addition, 10,500 hard copies were distributed through the Department’s networks.
Target 3 Provide 450,000 business interactions
Actual 625,472 business interactions conducted
The Department exceeded its target by more than 30 per cent (Figure 2, on page 20), with services
delivered to business through three channels – a web portal, call centre and social media
interactions – provided by Business Victoria as the Victorian Government’s primary online business
resource.
The Business Victoria web portal business.vic.gov.au is a one-stop contact point where businesses
can find information, ask questions and manage their interactions with Government. The portal is a
flexible and accessible service network designed to support business growth. It integrates
information from more than 100 Local, State and Commonwealth Government agencies.
Trusted as an independent knowledge resource, Business Victoria offered information and tools to
help businesses improve their productivity and reduce the burden of red tape, while assisting them
with their regulatory compliance obligations.
Through a number of services, Business Victoria provided information on key business matters,
including employment, business planning and marketing.
Businesses were able to access customised, interactive guides via the web portal, register for free
online resources such as the eUpdate newsletter, and gain expert advice and information related to
training, grants and other financial support.
Online forms also allowed businesses to locate, submit and pay for applications and licences,
including those required for starting and operating a business.
Highlights and Achievements
SMALL BUSINESS INFORMATION AND ASSISTANCE
Business Victoria online
In 2011-12, business.vic.gov.au received two million visits, over 625,000 in-depth self-service
business interactions and 350,000 social media interactions.
Services provided include:
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guides, templates and checklists to help solve common business issues
customised reports on regulation requirements
online forms and payments
training, events bookings, referrals to local business advisors and links to resources to help
improve business skills
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Business Victoria Contact Centre
In 2011-12, the Business Victoria Contact Centre received more than 32,000 calls and emails and
provided a range of information and support. The contact centre also helped businesses navigate
interactions with Government through:
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general information on starting a business, including acquiring an ABN, business name and
grants – taking into account Local, State and Commonwealth Government regulations
resolving business-to-business disputes and retail leasing enquiries on behalf of the Office of
the Small Business Commissioner
bookings for workshops and events, and business mentoring and advice delivered through the
Small Business Mentoring Service and Mobile Business Centre
referrals to other Government agencies and industry associations
Business Victoria eUpdate Newsletter
Business Victoria’s eUpdate is a key information channel providing news, advice and interactive
tools specific to the needs of Victorian businesses. Subscriptions to eUpdate increased from 44,500
in 2010-11 to 57,000 in 2011-12.
Emailed as a fortnightly publication, eUpdate covers a broad range of operational and business
planning topics, including finance, marketing and professional development.
BUSINESS REGULATION REFORM
The Government is committed to reducing business red tape by 25 per cent by 2014. The
Department contributes to this commitment through its Red Tape Reduction Program. During the
year, the Department’s Business Victoria Online delivered the Standards for Forms project that
reduced the time spent by business to complete Government forms by allowing online completion.
The project has consolidated 297 forms into 177 smart forms across 17 agencies and local
councils. It also developed 14 standardised council forms and applied the standard, developed as
part of the project, to a further 23 forms used by all 79 Victorian Local Councils.
The Department also worked with business through the Business Engagement Model to gather
information on the impact on business of proposals for regulation. During the year the Department
worked with major food processing businesses and small and medium enterprises to provide
intelligence on the impact of national food regulation proposals, including the Review of Food
Labelling Law and Policy: Labelling Logic. This ensured the impacts on business were fully
considered, resulting in deferral of some proposals by the national Legislative and Governance
Forum on Food Regulation.
Figure 2 > Business Interactions targets and results from 2007-08 to 2011-12
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Ensure Victoria is an increasingly attractive place to
invest
Target 1 Facilitate $1,600 million in new investment to help generate 5,000 jobs
Actual Facilitated $2,312 million in new investment and helped generate 6,449 jobs
The Department exceeded its investment target of $1,600 million by attracting and facilitating
$2,312 million in investments (Figure 3) and 6,449 new jobs (Figure 4).
Victoria’s capabilities and status as a compelling investment location were showcased by the
Department to national and international companies looking to expand, diversify and seek specific
investment opportunities.
The Department worked effectively with businesses to overcome challenges to attracting and
facilitating investment and jobs in Victoria.
The active pursuit of specific investment opportunities, many of them the result of close
collaboration with other Government agencies at State and Commonwealth levels, has
demonstrated the Department’s ability to engage with business, identify and address issues, and
secure favourable outcomes for Victoria.
The Department targeted new investment from international companies, and secured further
investments from local companies and investors, for business expansion and diversification in
Victoria.
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An example of this included Coles Group Ltd. The company invested $60 million to establish a
distribution and logistics centre at Truganina, directly creating 400 jobs. As well, David Jones Ltd
invested $80 million for a new store at Highpoint Shopping Centre, Maribyrnong. This will add 500
jobs.
Figure 3 > New Investment Facilitated – targets and results from 2007-08 to 2011-12
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Figure 4 > Jobs Derived – targets and results from 2007-08 to 2011-12
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.
Highlights and Achievements
In 2011-12, the Department helped facilitate key investments and create jobs for Victoria.
Achievements included:
HEADQUARTERED IN VICTORIA
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The Attachmate Group, an advanced ICT firm, opened its new Asia-Pacific headquarters in
South Yarra. It plans to create 40 jobs.
Juniper Networks, a network innovation business, opened its new Victorian headquarters in
Southbank, generating 50 new jobs.
VanceInfo, an IT consulting and solution provider, invested $10 million to establish a regional
head office in Melbourne, directly creating 100 jobs.
SilverStripe, a New Zealand open source content management company, established its
Australian headquarters in Victoria, bringing 50 highly skilled new jobs to the State.
DB Results, providers of strategic business and implementation services, opened a new
Australian headquarters with plans to create 100 jobs.
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Cordelta, providers of professional services and consulting announced plans to create 50 jobs
in Victoria by the end of 2013.
EXPANSION IN VICTORIA
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Fujitsu invested $60 million to upgrade its Noble Park data centre.
GlaxoSmithKline, one of the world’s leading pharmaceutical companies, invested $60 million to
expand its Boronia site. This investment will retain 312 current jobs and create 58 jobs in
Victoria.
The Bank of Melbourne, as part of its investment growth in the banking industry, opened a new
contact centre in the Melbourne CBD, creating 125 jobs. The bank will expand operations over
the next five years.
Interactive Victoria invested $35 million for a new Port Melbourne data centre employing 300
people.
Data#3, a leading Australian technology provider, opened a new integration centre in Braeside,
generating an additional 25 jobs.
Biota Holdings, a leading anti-infective drug development company, announced significant
expansion of its Notting Hill facility, leading to the creation of 35 jobs.
Ascent Pharmahealth, a supplier of health products to pharmacies, announced a new
distribution centre, creating 50 jobs and a $12 million capital investment.
RESEARCH COLLABORATION
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Servier, a leading French pharmaceutical company, entered into drug discovery and research
collaboration with the Monash Institute of Pharmaceutical Sciences. This will create 15 highly
skilled jobs.
MANUFACTURING
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GM Holden committed to an $800 million investment to manufacture its next generation small
and large cars in Australia, which will draw upon its design and engineering capabilities in Port
Melbourne. To support the retention of local advanced manufacturing capabilities, the Victorian
and Commonwealth Government have committed to a $30 million Automotive New Markets
Program that assists automotive suppliers to undertake projects that diversify their businesses
into new product and export markets.
Parker Hannifin, manufacturers of hydraulic hose and fittings, made a $3.5 million investment
and created 40 jobs when it consolidated its Australian and New Zealand operations at
Wodonga.
COMMERCIAL
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Myer committed to $1.12 billion for the creation of 5,000 ongoing jobs and 6,000 construction
jobs resulting from its Bourke Street and Lonsdale Street operations. The Department provided
assistance over the past two years to streamline and ensure timely approvals, improve
stakeholder consultation, significantly reduce the project risks and give greater certainty for the
investment in Victoria.
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TOURISM
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Marysville Conference Centre is spending $30 million to rebuild following the 2009 bushfires in
the area. The Department designed a streamlined planning approvals process that included a
special use zone, worked with Regional Development Victoria on acquisition of the site and
played a key role in design of a community consultation program. This election commitment
aims to assist the community of Marysville to rebuild its tourism and economy.
FOOD AND AGRICULTURE
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Mecrus Pty Ltd, an engineering solutions firm, invested $8 million to locate its state-of-the-art
mushroom production facility in Parwan (near Bacchus Marsh), creating 80 full-time jobs. The
Department advised Mecrus on site options, planning and environmental approvals and
provision of utilities.
INTERNATIONAL VICTORIAN GOVERNMENT BUSINESS OFFICES
The Department’s international network of Victorian Government Business Offices focused on
attracting direct investment, developing exports, managing relationships and a range of whole-ofVictorian Government initiatives.
In 2011-12, the Department, together with its Victorian Government Business Office network,
continued to support significant investment achievements, including:
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SAIC, a global scientific, engineering, and technology research and development company,
opened its first Asia-Pacific regional Cyber Security R&D Lab in Melbourne through support
provided by the business office in Washington DC. This generated 50 highly skilled technology
jobs in Victoria.
China South Rail announced the opening of its regional headquarters in Melbourne, a $5 million
investment, creating 20 new jobs, with the support of the Shanghai business office.
ABB, a global leader in power and automation technology, announced it would establish the
Australia-Indian Research Centre for Automation Software Engineering based at RMIT
University and create 300 jobs at its existing Notting Hill facility over the next four years, with
support provided by the business office in Bangalore.
Zendesk, a global leader in helpdesk software, launched its Asia Pacific headquarters in
Melbourne, creating 20 new roles, with the support of the San Francisco business office.
Acciona Group established a $200 million wind farm at Mount Gellibrand, adding 16 jobs, with
the support of the business office in London.
COMPETITIVE BUSINESS FUND
In 2011-12, the Department provided $2.9 million in grants to 17 Victorian businesses during round
two of the Competitive Business Fund. These grants leveraged a further $20 million of investment
and delivered at least 340 new jobs. In May 2012, the fund was superseded by the $24.8 million
Investing in Manufacturing Technology program, established to promote the growth, productivity
and international competitiveness of manufacturing businesses by stimulating investment in new
technologies.
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INVESTMENT SUPPORT PROGRAM
In 2011-12, the Government committed $27.5 million to projects under the Investment Support
Program. It is anticipated that these projects will result in $336.5 million of direct capital expenditure
(including $256.5 million in the automotive sector) and create 909 full-time jobs, including 328 jobs
in the defence sector and 300 in the information and communication technologies sector. This level
of investment and jobs facilitated through the Investment Support Program, as a proportion of the
Department’s facilitated investment, is consistent with previous years.
In 2011-12, Investment Support Program recipients received an aggregate 97 per cent of the
originally contracted grant amounts. These projects collectively achieved 140 per cent of the capital
expenditure and 125 per cent of the employment required to receive the full grant payment.
Follow-up survey data on investment projects attracted and facilitated by the Department, and
matured in 2011-12, indicated recipients achieved 110 per cent of forecast capital investment and
93 per cent of forecast employment.
SCREEN INDUSTRY
In 2011-12, screen projects supported by the Victorian Government through Film Victoria leveraged
total production expenditure of $152.7 million for the State, an increase of 89 per cent on the
previous year. These strong figures can be attributed to the Government securing projects like the
feature film I, Frankenstein, filmed at Docklands Studios Melbourne, and different locations around
the city; TV pilot Frontier, which was shot in regional Victoria; adult comedy feature Ted, which
completed its visual effects in Victoria; and the mini-series Howzat! Kerry Packer’s War.
TOURISM INVESTMENT
Tourism Australia and Austrade, with support from Tourism Victoria, produced a guide for
international investors identifying investment-ready opportunities in both Melbourne and regional
Victoria.
FOOD INVESTMENT
The Department provided investment support to transform Victorian food businesses, increasing
productivity through innovation. The companies included:
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Olam Orchards Australia, which will invest at least $60 million to establish a new almond
processing facility near Mildura to increase capacity and create 50 direct jobs
SPC Ardmona, which will invest $20 million to reinvigorate the Mooroopna facility and turn it
into a new Innovation Centre, creating 45 new jobs in the next 5 years
Kagome Australia, Australia’s only industrial tomato paste and dice producer, which will invest
$1.16 million to improve productivity and expand its processing capacity, creating significant job
opportunities for tomato growers in the region and adding new processing jobs in regional
Victoria
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DEFENCE INVESTMENT
The Department helped Australian Defence Apparel secure an upgrade to its Bendigo
manufacturing facility, generating $4.2 million in capital investment, 58 new jobs and approximately
$4 million per year in exports from 2012-13. This is expected to rise to $20 million per year from
2016-17. The upgrade to Australian Defence Apparel’s Bendigo facility will also position Victoria as
the Australian centre for the design, manufacture and integration of innovative armouring and
protective personnel solutions, and create a niche export market for the State.
Encourage more tourists to visit Victoria
Target Decisions influenced by campaign
Actual Number of international visitors to Victoria – 1.76 million
Number of domestic overnight visitors to Victoria – 17.8 million
Victoria performed well in 2011-12, increasing its share of international and domestic overnight
visitors and expenditure, despite a challenging economic environment that included a high
Australian dollar and high numbers of Australians travelling overseas.
A range of targeted tourism strategies and initiatives, including the launch of Victoria’s China
Tourism Strategy in May 2012, contributed to this success.
In 2011, China overtook New Zealand as Victoria’s leading international market for visitors and
expenditure. During this period, more than 265,000 overnight visitors from China to Victoria spent
$816 million – more than the combined expenditure of the State’s next three largest markets (NZ –
$313 million, UK – $287 million and the USA – $194 million).
To capitalise on this trend, the Department designed its strategies to leverage further benefits for
the State on a sustained basis. For example, Victoria’s China Tourism Strategy identified five key
priorities to engage Government, business and the tourism industry to increase visitation from
China.
Key priorities include market positioning, airline connections, investment, improving the Chinese
visitor experience and building on Victoria’s strong education, migration and business links with
China. The strategy aims to grow Chinese overnight visitor expenditure from the business-as-usual
growth rate of 7 per cent per year to the potential growth rate of 11 per cent per year. If realised, the
potential growth rate could deliver forecast annual visitor expenditure of $2 billion. This is expected
to increase Gross State Product by $18.2 billion from 2011 to 2020 and provide 41,700 jobs in
Victoria (13,200 more jobs than the forecast growth).
The number of international overnight visitors to Victoria, 1.76 million, contributed $4.3 billion in
expenditure to the economy. Visitation to regional Victoria also proved particularly strong, with
international overnight visitors in regional Victoria spending $337 million, representing an increase
of 17 per cent year on year. The increase in international overnight expenditure in regional Victoria
was driven by growth in both international overnight visitors in regional Victoria (a 5.7 per cent
increase) and nights (a 5.9 per cent increase).
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Domestically, despite continued stagnation in the Australia-wide domestic market, Victoria achieved
$9 billion in domestic overnight visitor expenditure as a result of an increase of over 4 per cent year
on year – more than twice the national growth rate. This growth was supported by a range of
successful marketing campaigns including Daylesford. Lead a Double Life and the ongoing success
of Play Melbourne.
Play Melbourne and its associated initiatives helped deliver record interstate overnight visitation
levels to Melbourne. This increase was significantly higher than all other major Australian cities,
including Sydney.
Domestic market achievements were equally strong against targets set for the period. These
included $12.9 billion in domestic expenditure (including overnight and daytrip estimates) against
the target of $12.1 billion. Domestic visitor expenditure in regional Victoria also exceeded
expectations. Domestic overnight expenditure in regional Victoria increased 6.5 per cent year on
year to $4.2 billion, helped by a recovering intrastate overnight travel market. Most impressive
within the regional market was daytrip expenditure, which reached record levels, up 16.9 per cent
year on year to $2.4 billion.
According to the 2011 National Visitor Survey, domestic overnight visitation to Melbourne increased
by 5.7 per cent to 6.6 million visitors, and domestic overnight visitor expenditure in Melbourne
increased 2.4 per cent to $4.8 billion, ahead of the national growth rate of 1.6 per cent.
Holiday Tracking Survey results showed Melbourne as the destination most preferred by
Australians for a domestic holiday in the next two years. More than 20 per cent of respondents
wanted to holiday in Melbourne within the next two years, compared to the Gold Coast (17.5 per
cent) and Sydney (12.9 per cent). Preference for Melbourne was even higher among the interstate
market: 23.4 per cent compared to the Gold Coast (15.9 per cent) and Sydney (14.7 per cent).
Melbourne’s status as the events capital of Australia also remained strong, and was helped by a
calendar of hallmark events and exhibitions. One popular event was Tutankhamun and the Golden
Age of the Pharaohs – an exhibition which attracted 796,000 people, of whom more than 40 per
cent were from interstate or overseas.
Highlights and Achievements
PLAY MELBOURNE
The Play Melbourne campaign aimed to deepen consumer appreciation of Melbourne’s creative
subculture, convert preference to travel to Melbourne and reinforce its reputation as Australia’s
most culturally diverse city. Key indicators showed positive results for interstate visitation including:
one million views on YouTube for Play Melbourne; 540,000 visits to its dedicated website; 19,000
Facebook fans; and 15,000 downloads of the Play Melbourne iPhone App (launched December
2011). Play Melbourne was launched in New Zealand in January 2012 – and was the first
significant Melbourne campaign since 2007 in this market.
DAYLESFORD. LEAD A DOUBLE LIFE CAMPAIGN
In 2011-12, the Daylesford. Lead a Double Life campaign continued to promote Daylesford in the
key interstate markets of Sydney, Adelaide and Brisbane. The campaign included broad media
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placements, promotions with online partner Gourmet Traveller, public relations activity and
competitions, and targeted database activity.
Key campaign indicators showed that Victoria continued to lead as the State with the reputation for
offering spa and wellbeing experiences. Unprompted awareness of Daylesford and the Macedon
Ranges destinations in New South Wales increased from 2.9 per cent in 2009 to 4.4 per cent in
2011.
MAJOR EVENTS
Major events helped drive Melbourne’s national and international positioning and profile, tourism,
branding and business linkages. In 2011-12, major events contributed strongly to the Victorian
economy and brought international, interstate and intrastate visitors to Melbourne and regional
Victoria. For example, the Grace Kelly: Style Icon exhibition at the Bendigo Gallery attracted over
152,000 people in three months and generated significant economic benefit for the Bendigo region.
In 2011-12, Victoria’s major events calendar continued to be one of the most prestigious and
successful in the world. Events and exhibitions included:
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Australian Goldfields Open – Bendigo (Australia’s first world-ranking snooker event)
UCI Track Cycling World Championships – Melbourne
National Rugby League State of Origin – Melbourne
Festival of Sails – Geelong
Ironman Asia-Pacific Championship Melbourne – Frankston and St Kilda
Melbourne Winter masterpieces exhibitions – Vienna: Art and Design at the National Gallery
(June to October 2011) and Tutankhamun and the Golden Age of the Pharaohs at Melbourne
Museum (April to December 2011)
BUSINESS EVENTS & CONFERENCES
In 2011-12, Melbourne’s reputation as a world-class business events destination was evidenced by
the attraction of a range of forthcoming major business events, including:
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International Conference on Care and Housing for the Ageing 2013
IEEE Energy Conversion Congress and Exposition – ECCE ASIA 2013
Inaugural Broadband World Congress 2013
The MHS 2013 (Mental Health Services Conference)
The International Conference on Systems Biology 2014
International Symposium on Information Theory and its Applications – ISITA 2014
International Congress on Noise Control Engineering (INTERNOISE) 2014
Congress of the Asia-Pacific Federation of Coloproctology 2015
AFMC International Medicinal Chemistry Symposium 2017
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Develop a skills base to better meet industry needs
Target 1 Department assistance/program facilitated participation in training and professional
development
Actual Developed strategic partnerships to support training and professional development
opportunities for Indigenous businesses; identified areas requiring skilled workers
In 2011-12, the Department continued its focus on increasing the number of skilled staff in the
Victorian workforce, particularly in the areas of information and communications technology (ICT),
biotechnology, small technology and professional development of Indigenous leaders.
In August, the Department released a $2 million suite of initiatives to attract and grow the pool of
ICT workers across Victoria. These initiatives will build on the State’s reputation as the leading
Australian supplier of skilled ICT professionals.
The Small Technologies Cluster is a collection of facilities and stakeholders focused on assisting
Victorian industry to become more competitive through an increased awareness of the benefits of
utilising small technologies in their products, processes and services. The Department, through
skills activities delivered by the Small Technologies Cluster, worked with specific businesses on
increasing the uptake of small technologies. The Cluster identifies technology needs for companies,
matching these with technology suppliers, facilitating access to a specialised workforce and
provision of advice to develop solutions.
The Department identified, via a skills audit, critical skills shortages in the biotechnology sector. To
help improve the talent pool, it supported the Practical Drug Development program and the
Undergraduate Research Opportunities program.
The Department’s Indigenous Economic Development Unit successfully engaged with Melbourne
Business School, Indigenous Business Australia and the Australian Industry Minority Supplier
Council to provide training, and professional and leadership development for Indigenous leaders
and business owners.
The Department also identified skills supply and demand issues through its enhanced business
engagement model. It worked with other Government agencies and educational institutions to
encourage appropriate training and education programs to meet the future needs of industry.
Highlights and Achievements
AUSTRALIAN INDUSTRY MINORITY SUPPLIER COUNCIL
The Department worked with the Australian Industry Minority Supplier Council to facilitate
professional development and training in the area of Government and private sector procurement.
In particular: 12 Indigenous businesses participated in a Winning Government Business workshop
to explore how Indigenous businesses could gain a competitive advantage in supplying goods and
services to Government; and eight Indigenous businesses were sponsored by the Department to
attend the council’s Connect 2012 conference. The conference provided an opportunity for
Indigenous businesses to meet with the council’s corporate and Government buyers, to exhibit their
products, and to discuss procurement/business opportunities.
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MELBOURNE BUSINESS SCHOOL
The Department partnered with the Melbourne Business School, Kinaway and the Indigenous
Leadership Network to provide the Murra 2012 Aboriginal Business Master Class Series. The series
exposed 30 Indigenous business leaders to key business concepts and issues, with participants
learning from Melbourne Business School’s faculty and leading guest lecturers.
INDIGENOUS BUSINESS AUSTRALIA
The Department worked with Indigenous Business Australia to support training and development for
newly established Indigenous businesses. The Indigenous Business Australia Into Business
workshops helped Indigenous business owners assess whether their business idea was
commercially viable and ascertain the requirements to manage a business on a day-to-day basis.
INFORMATION AND COMMUNICATIONS TECHNOLOGY
Information and communications technology (ICT) is a key driver of business innovation and
productivity. A highly skilled ICT workforce is essential to the innovative use of ICT across the
economy.
Victoria is recognised as the leading Australian supplier of skilled ICT professionals. In 2011-12,
Victoria had more graduating ICT students than any other Australian State: 36 per cent of the
national total and 37 per cent of postgraduate completions.
Building ICT skills for the future is a national issue for industry, the education sector and
governments. In August 2011, the Department released a $2 million suite of ICT skills initiatives to
support a strong supply of ICT workers in future. The initiatives focused on three areas: career
awareness; building skills; and growing the workforce.
BIOTECHNOLOGY
The success of the Victorian biotechnology sector depends on the ability of companies to attract
and retain highly skilled people. Through an independent skills audit, the Department identified the
following specific areas of critical skills shortages within the sector: regulatory affairs, clinical
strategy and project management.
To improve Victoria’s biotechnology talent pool the Government supported:
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the Practical Drug Development Program (through Medicines Development Ltd) to strengthen
project management of drug development across the biotechnology sector
the Undergraduate Research Opportunities program (through the Bio21 Cluster) to provide
cross-discipline graduates with practical research experience
SMALL TECHNOLOGIES
The Government’s activities in the small technologies area focused on boosting productivity by
increasing the uptake of small technologies across the economy.
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Skills activities were predominantly conducted on behalf of the Department by the Small
Technologies Cluster. They promoted awareness of small technologies within Victorian business
and provided mentoring and expertise to encourage uptake.
The Small Technologies Cluster hosted several well-attended sessions, promoting the economic
benefits of small technologies to business. The cluster worked extensively with specific businesses
to identify technology needs, broker partnerships with technology suppliers and incorporate small
technologies into business practices.
HAMER SCHOLARSHIPS PROGRAM
The Hamer Scholarships Program provided support for 11 Victorians to study Chinese language in
Jiangsu, China.
The scholarships gave Victorians an opportunity to:
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progress their Mandarin language skills related to their career path
pursue specialised language skills in specific areas such as Chinese medicine, law, teaching or
engineering and other appropriate courses available in Jiangsu
enhance opportunities for their organisation or industry body
Target 2 Help facilitate employment of supported job seekers/State-sponsored migrants
Actual 1,100 skilled migrants through the Skilled Business Migration Program and 1,900
skilled migrants to vacancies through the Regional Sponsored Migration Scheme
In 2011-12, the Department supported and promoted a fair and productive regulatory and policy
framework that influenced workforce participation, industrial relations and skilled migration.
The Department prepared a Victorian Government submission to the Review of the Fair Work Act
2009. The submission encouraged the Commonwealth to make changes to the Act to promote
flexibility and productivity, while maintaining a fair and relevant safety net of employment terms and
conditions.
Advocating Victorian interests in workplace relations proceedings was another focus of the
Department, particularly supporting the State Government’s participation in proceedings before Fair
Work Australia and the courts. For example, to promote greater employment opportunities for young
people, the Government intervened in Fair Work Australia and Federal Court proceedings to
support reduced minimum shifts for school students working in retail.
The Department coordinated the Government’s intervention in the Qantas proceedings before Fair
Work Australia and the Federal Court to support termination of industrial action that adversely
affected the airline, its passengers, and the Victorian and Australian aviation and tourism industries.
The Department also coordinated the Government’s involvement in the Fair Work Australia Equal
Remuneration case.
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Highlights and Achievements
KARREETA YIRRAMBOI: 2010-2015
Karreeta Yirramboi is the Victorian Government’s public sector employment and career
development action plan, aimed at a one per cent Indigenous employment target across the
Victorian Public Sector by 2015. The Department coordinated this plan on behalf of the
Government. As at June 2011, 758 public sector employees identified as being Indigenous, which is
0.3 per cent of the Victorian public sector workforce.
The Department also ran employment programs to support improved Indigenous employment
outcomes outside the public sector. In 2011-12, more than 200 Indigenous Victorians were placed
into sustainable, ongoing employment (16 plus weeks of continuous work), and more than 390 were
placed into employment (yet to complete 16 continuous weeks) through State Government funded
employment programs across Victoria.
SKILLED AND BUSINESS MIGRATION PROGRAM
In 2011-12, the Government sponsored more than 1,100 skilled migrants through the Department’s
Skilled Business Migration Program. The Victorian Government sponsored 2,800 provisional visas
for business migrants who plan to invest more than $1.8 billion and intend to create more than
6,300 jobs in Victoria within four years of arrival. The Government also sponsored more than 765
business migrants for permanent residency after they established successful businesses in Victoria.
The Department’s regional Victorian Government Business Offices helped businesses sponsor
more than 1,900 skilled migrants to vacancies through the Commonwealth Government’s Regional
Sponsored Migration Scheme.
Ensure Victoria’s infrastructure needs are better met
Target 1 Deliver nominated Major Projects Victoria projects in compliance with agreed plans
Actual 99 per cent of projects delivered in compliance with agreed plans
In 2011-12, the Department managed approximately $2.5 billion worth of projects through planning
or delivery stages.
Projects included stage 1 of the Melbourne Park Redevelopment, $366 million; the Biosciences
Research Centre, $288 million; the Southbank Cultural Precinct Redevelopment, $135.8 million;
and the State Sports Facilities project, $67.2 million.
The Melbourne Park Redevelopment project required the Department to maintain a long-term focus,
and to develop strong and sustainable partnerships and close collaboration between the public and
private sectors.
On all these major projects, the Department demonstrated its capabilities in meeting the
Government’s commitment to well-planned, high-quality infrastructure projects to attract more
international investment to Victoria, while sustaining and enhancing Melbourne’s world-class
liveability.
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The Department’s performance against the target was assessed against the criteria of time, costs
and quality as agreed with each client.
Highlights and Achievements
MELBOURNE PARK REDEVELOPMENT
The Melbourne Park Redevelopment project aims to cater for the growing popularity of events in
Victoria. It has already helped to secure the Australian Open until at least 2036.
When complete, the project will deliver: an elevated plaza, providing direct access into the first-level
eastern concourse of Hisense Arena; a new National Tennis Centre comprising eight indoor tennis
courts; 13 outdoor tennis courts; a gym; change rooms and player amenities; a pedestrian bridge
connecting the Eastern Plaza to AAMI Park; upgrades to Margaret Court Arena with an additional
1,500 seats and an operable roof; and upgrades to Rod Laver Arena concourse.
SOUTHBANK CULTURAL PRECINCT REDEVELOPMENT
The Southbank Cultural Precinct Redevelopment is a master plan to rejuvenate and reconnect
Melbourne’s cultural precinct and individual venues to each other and to the wider city precincts.
The Department has delivered stage one of the master plan, a $135.8 million redevelopment of
Hamer Hall, to open in July 2012, making the facility more accessible and providing a better
experience for audiences.
MELBOURNE MARKET RELOCATION PROJECT
Following an extensive review of the project, significant additional funding was obtained to ensure
that rents for tenants in the new market will be affordable. A program of consultation is underway
giving tenants the critical information they need to make their business decisions. The market is
expected to move from its current location in West Melbourne to Epping in 2014-15.
NOMINATED PROJECTS
The following nominated projects contributed to the Department’s target for 2011-12:
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Biosciences Research Centre
Kew Residential Services
Melbourne Park Redevelopment
Melbourne Market Relocation
Parkville Gardens
Princes Pier Restoration
Southbank Cultural Precinct Redevelopment
State Sports Facilities
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INVEST ASSIST
Docklands Studios Melbourne
Docklands Studios Melbourne is an important piece of infrastructure for Victoria’s screen industry.
In 2011-12, the Department initiated modifications to Sound Stage 5 and associated works, to
facilitate fast turnaround of light entertainment and live audience television programs at the facility.
The contractor for the main construction works was appointed in March 2012. The modifications to
Sound Stage 5 are scheduled for completion by the end of 2012, in time for the start of the 2013
production season.
Generate knowledge and stimulate innovation
Target 1 Establish collaborations
Actual 139 collaborative projects established
Victorian businesses that accessed new expertise, knowledge or partners outside their business
became more innovative. This was particularly the case for small and medium-sized enterprises,
which were less likely to have the in-house knowledge or skills to make innovation-driven
improvements.
Collaboration, including between businesses and between business and research organisations,
has been a key driver of innovation.
In 2011-12, strong and productive linkages, interactions and information flows between innovative
businesses were essential to deliver improved innovation and productivity outcomes.
Victoria has a strong set of innovation capabilities, with many skilled people, an internationallyrecognised research sector, world-class technology platforms and infrastructure, and businesses
that are global leaders. The Department played a role in facilitating collaboration between these
participants to help better connect businesses with the knowledge, information, capacity, skills and
partners they need to innovate and generate economic value for Victoria.
Highlights and Achievements
SMART SMALL TO MEDIUM ENTERPRISES MARKET VALIDATION PROGRAM
In 2011-12, the Victorian Government supported 12 projects through its Smart Small to Medium
Enterprises Market Validation Program. These projects received funding to undertake a threemonth feasibility study stage. Following the study, a rigorous assessment and selection process
was conducted and six projects were approved to progress into a two-year proof-of-concept stage.
Five of the six proof-of-concept projects were focused on the health sector, the sixth on the water
sector. The proof-of-concept stage projects comprise:
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Melbourne Health and Osprey Medical to deliver an antibiotic delivery system
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Melbourne Health and GenesFX to develop an innovative drug safety system to reduce adverse
reactions
Melbourne Water and Hawk Measurement to produce a smart sensor for large diameter water
pipelines
The Royal Children’s Hospital and APS Innovations to develop a new specialised infant feeding
teat
Royal Victorian Eye & Ear Hospital and Ingeneus to investigate an easy-to-use slit lamp and
tonometer for the assessment of eye health by a General Practitioner to assist in the diagnosis
of glaucoma
Western Health and Alcidion to investigate a product that gives real-time information on the
current status of all patients within the health service network
HEALTH MARKET VALIDATION PROGRAM
The Victorian Government provided $15 million under its Victoria’s Technology Plan for the Future –
Biotechnology to fund a Health Market Validation Program, partnering Government health agencies
(including public hospitals) with innovative small-to -medium businesses on the development of
new, market-ready technology solutions to health service delivery issues.
The Health Market Validation Program is modelled on the Smart Small to Medium Enterprises
Market Validation Program. As at 30 June 2012, the Health Market Validation Program had
received 46 project proposals to review. Funding of up to $100,000 for a feasibility study and up to
$1.5 million for a validation stage (including clinical trials) will be provided to successful small-tomedium enterprises in the next three years.
Projects funded through the Health Market Validation Program will allow the Victorian public health
sector to make significant improvements in productivity and cost-effectiveness of service delivery,
and provide small-to-medium businesses with opportunities to create and test new commercialready products.
COLLABORATIVE NETWORKS PILOT PROGRAM
The Collaborative Networks Pilot Program was launched on 12 December 2011. The program was
designed to help Victorian businesses become more productive and competitive by improving
collaboration and leveraging Victoria’s existing innovation capability (such as its world-class public
research sector) to increase technology uptake.
From a large number of applications for the program, four applicants were shortlisted and asked to
prepare comprehensive business plans. It is anticipated that funding will flow to successful projects
in early 2012-13.
THE VICTORIAN COOPERATIVE RESEARCH CENTRE BID SUPPORT
PROGRAM
The Victorian Cooperative Research Centre Bid Support Program was an election commitment to
support Victorian-focused applications to the Commonwealth Government’s cooperative research
centre funding rounds. Of the six successful applications announced in December 2011, three were
Victorian-based, collectively securing $70.5 million from $148 million in cooperative research centre
program funding. The successful Victorian cooperative research centres were:
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the Automotive Australia 2020 Cooperative Research Centre, which will receive $26 million in
funding to undertake research programs and build human capital in areas of vehicle
electrification, gaseous fuels and production of greener vehicles and components
the Cooperative Research Centre for Water Sensitive Cities, which will receive $14.5 million in
funding and contribute to establishing Australia as a leading provider and exporter of products
that meet emerging global needs in the areas of health therapies, water and food security and
low-cost solar energy
the Cooperative Research Centre for Polymers, which will receive $30 million in funding to
deliver planning, technology and decision support tools to improve urban water systems
Target 2 Refereed articles
Actual 2,543 peer-reviewed research articles published
The Department invested in many initiatives that support and enable research that creates new
knowledge. These included major capital developments, such as the construction of new medical
research facilities in the Olivia Newton-John Cancer and Wellness Centre, the Walter and Eliza Hall
Institute, the Melbourne Brain Centre, the Burnet Institute and the Australian Regenerative Medicine
Institute.
These developments also included sophisticated technology platforms required to undertake
research, such as the Australian Synchrotron and the Victorian Biomedical Imaging Capability.
Other initiatives supported research partnerships between our academic research sector and
industry, or research in specialised areas of need, such as stem cell biology or cancer. The
Department also supported less visible aspects of research in Victoria, including indirect (overhead)
costs of research.
A key measure of performance in research is the publication of peer-reviewed (refereed) scientific
articles in international journals. Published articles are a measure of new knowledge created
through research.
Research that influences the work of others can be assessed from the number of times other
scientists cite the published research articles in their published work. Publications and citations are
used by the national and international community to assess and rank the performance of our
research organisations. The number of publications and citations also informs the allocation of
research grant funding, currently worth over $1 billion per annum to Victoria, and stimulates
business for our higher education sector, Victoria’s largest export earner.
It should also be noted that publications are a lag measure – they occur some years after the
investment that supports them. Citation of published work naturally lags even longer after the
investment. Consequently, investments in research, especially in capital developments and major
technology platforms, are likely to affect publication and citation metrics 5 to 10 years after the
investment.
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Figure 5 > Number of articles published by supported medical research institute from 2002-11
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Figure 6 > Highly cited articles published by supported medical research institute from 2002-11
Highlights and Achievements
OPERATIONAL INFRASTRUCTURE SUPPORT PROGRAM
The Department’s annual Operational Infrastructure Support program supports Victoria’s
independent medical research institutes by providing funding towards their operational overheads.
Program funding was $25.9 million in 2011-12 – the equal largest amount ever provided. The 13
institutes supported by the program in 2011-12 have continued to increase the number of refereed
scientific articles published over the last five years, growing from 1,902 in 2006 to 2,543 in 2011, a
34 per cent increase (Figure 5). The new knowledge discovered through research and published by
these institutes is increasingly recognised by other researchers around the world as important. The
number of research articles published by Victoria’s supported medical research institutes and highly
cited by other research publications has grown from 2,580 to 3,424 over the past 10 years, a 33 per
cent increase (Figure 6).
Independent recognition of the high value of knowledge created by Victoria’s medical research
institutes supported by the State Government has come from a recent NSW analysis (NSW Health
and Medical Research Strategic Review Fact Base, p. 60 – NSW Government, 1 September 2011).
It found that more highly cited research articles were produced by Victorian medical research
institutes than from those in other states, including all universities, hospitals or the CSIRO.
Target 3 Facilitate uptake of new innovation
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Actual 111 projects commenced
Improving the uptake of new innovations (knowledge and technologies) across the economy boosts
productivity, stimulates employment growth and raises living standards. For individual businesses,
innovation improves efficiency, enables higher value goods and services to be produced, and
underpins the capacity to compete.
Taking up a new innovation can, however, be hard for individual businesses as the adoption of new
technologies and processes can challenge accepted conventions and require a high degree of risk
tolerance. Depending on the scale of the change, a complete revolution of business operations,
staffing and skills requirements may be required. Businesses may also be required to implement a
range of capital investments or changes to their systems and processes.
In 2011-12, the Department supported Victorian businesses to be early adopters of new innovations
and generated information to assist diffusion of new innovations more rapidly across the Victorian
economy. Through its programs to increase the uptake of new technologies, the Department
assisted businesses to manage the risks and uncertainties of the innovation process and
demonstrate the productive value to their business. This provided real world examples of the
benefits and adoption of new innovations and technologies to inform other businesses and
industries. It also meant the productivity benefits would be realised more quickly by Victorian
business, helping them to be more competitive.
Highlights and Achievements
SMALL TECHNOLOGIES INDUSTRY UPTAKE PROGRAM
As the flagship initiative of the Victorian Technology Plan for the Future – Small Technologies, the
Small Technologies Industry Uptake Program provided vouchers to successful applicants from a
range of industries. The voucher model differs from a traditional grant model as it provides vouchers
to be exchanged for access to Victorian small technologies facilities, goods, services, advice or
expertise, allowing innovative companies to demonstrate and commercialise their goods and
services.
The first voucher program run by the Department, the Small Technologies Industry Uptake
Program, was well received by industry and 50 vouchers valued at approximately $2.4 million were
awarded in 2011-12 (including $750,000 for three projects through a single round of trial vouchers).
Examples of successful project outcomes facilitated by companies awarded vouchers are presented
in the following case studies:
Commercialisation of medical device for Parkinson’s Disease
Parkinson’s Disease is an incurable progressive neurodegenerative disease affecting more than
65,000 Australians and 15,000 Victorians. The total economic cost to Australia is estimated at $8.3
billion each year.
Victorian technology company, Global Kinetics Corporation, received a Small Technologies Industry
Uptake Program trial voucher, together with researchers at the Florey Neuroscience Institutes and
Grey Innovation. Together they are developing a wrist-worn device that remotely records data about
a patient’s movement. This device provides a report for the patient’s neurologist to assess the
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severity of the patient’s symptoms and optimise their treatment. The KinetiGraph device has
attracted commercial interest, securing $3.5 million in equity funding and Government grants to
commercialise the device. Future plans include employment of additional staff, conducting of global
clinical trials. Export sales are expected within six months.
Refinement of nanomaterials development and manufacturing
Micronisers is a nanomaterials development and manufacturing company. The company was
awarded a Small Technologies Industry Uptake Program feasibility voucher for $10,000 to access
specialist equipment and expertise from the Cooperative Research Centre for Polymers. This
access allowed Micronisers to identify the production parameters required to manufacture the
product. Micronisers has also undertaken more detailed refinements to the nano-structured product
for commercial readiness.
BROADBAND ENABLED INNOVATION PROGRAM
The Department’s Broadband-Enabled Innovation Program promoted the effective use of
broadband-led adoption and innovative information and communication technology (ICT). It funded
12 innovative projects to develop new ways of working and improving service delivery in business,
Government and the community through the use of high-capacity broadband. A second round of the
program was launched in November 2011 and 11 proposals have been shortlisted. An example of
one of these projects follows.
Beyond the Exhibition: Transforming the museums experience through broadband
innovation
The Australian Centre for the Moving Image (ACMI) in conjunction with partner organisations (ABC
Innovation, Department of Education and Early Childhood Development, Enterprise Connect
Creative Industries Innovation Centre, Arts Victoria and the Australian Academic and Research
Network) was awarded funding to develop a project Beyond the Exhibition, which will utilise highcapacity broadband networks, offering new ways to reach new audiences and for them to engage
with exhibitions to enrich the cultural experience.
It is expected the project will lead to the development of new business models for the digital
distribution of museum content, using high capacity broadband, increased consumption of
innovative live and recorded content, and extending the opportunities and abilities of educators,
students and the general public to engage with cultural exhibition content in the new modes and
spaces enabled by ubiquitous, broadband networks. Other cultural institutions may be influenced to
adopt demonstrated models for delivering content via high capacity broadband.
On 28 June 2012, ACMI launched the first outcome of this project, the Game Masters exhibition
which included a digital program developed with the support of the Broadband Enabled Innovation
Program. The Game Masters Digital Program includes Game Masters: The Game, a custom-made
game available for download on mobile devices and includes an innovative touch-screen, table-top
version as part of the exhibition itself, an eCatalogue available for download and a Video
Conferencing initiative that utilises high-bandwidth infrastructure to help ACMI reach audiences in
regional areas, at schools and higher-education institutions. The Game Masters website is the hub
of activity for the Digital Program. It includes information on the program and exhibition and links to
the digital products and makes available recorded Video Conference events.
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VICTORIAN LIFE SCIENCES COMPUTATION INITIATIVE
The Victorian Life Sciences Computation Initiative is a $100 million initiative designed to create a
world-class infrastructure base on which to build Victoria as a world biotechnology hub and sustain
Victoria’s competitiveness in global life sciences. Victorian Life Sciences companies employ an
estimated 10,000 people (estimated in October 2011).
In early 2012, the University of Melbourne, together with IBM, progressed to the Stage 2 Peak
Computing Facility, acquiring the first Blue Gene/Q system in the southern hemisphere and
substantially upgrading its existing iDataplex system. The Stage 2 Peak Computing Facility installed
in June 2012 will deliver almost 900 teraflops, making it the most powerful computer in Australia.
The Victorian Life Sciences Computation Initiative aims to be one of the top five Life Science
computation facilities in the world and is a key initiative that will improve multidisciplinary
collaboration. It will continue Victoria’s progress towards sustainable and mainstream adoption of
eResearch and the use of ICT technologies to conduct research. The State’s public research
organisations form a key part of our innovation system and Victoria is a leader in eResearch uptake
and capability.
Community benefits of projects undertaken at the facility will generate new knowledge that will lead
to improved medical and health outcomes.
DIGITAL FUTURES FUND
In 2011-12, the Victorian Government launched the $11 million Digital Futures Fund as part of
Victoria’s Technology Plan for the Future – Information and Communication Technology. The fund
helps Victorian small-to-medium enterprises establish collaborative projects that develop cutting
edge, novel and transformative ICT-enabled solutions to enable them to better share challenges
and improve performance. The first round of the Digital Futures Fund was launched in March 2012,
with successful projects expected to be announced in the second half of 2012.
INDUSTRY SUSTAINABILITY WORKING COMMITTEE
In 2011-12, the Victorian Government established the Industry Sustainability Working Committee. It
worked with industry, research and educational organisations and other stakeholders to advise on
ways to encourage businesses to include environmental quality in their strategies, and adopt new
sustainable technologies and production practices.
VICTORIAN BIOTECHNOLOGY ADVISORY COUNCIL
The Victorian Biotechnology Advisory Council was announced in December 2011 and provides
industry-focused advice to Government on current and emerging opportunities and threats to the
Victorian biotechnology sector, as well as contributing to the implementation of the Victorian
Government’s biotechnology policy. The establishment of the council provides a long-term and
coordinated approach to fostering innovation and promoting growth in Victoria’s biotechnology
industry.
1
The 13 to 24 month figure is how the Department has reported annual export sales.
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2
The 13 to 24 month figure is how the Department has reported annual export sales.
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