Future of Benalla and District Local Development Strategy

LOCAL DEVELOPMENT STRATEGY

INTRODUCTION

Purpose and aim of the Local Development Strategy (LDS)

Benalla district is a potentially dynamic district which has many wonderful assets on which to build. Realising the benefits for its citizens and businesses will depend on:

1 Strengthening collaboration

2.Mobilising expertise to deliver shared initiatives that build local capability and capacity

3.Providing a platform that will support innovative action, building on local assets.

This document has been prepared to address the potential challenges arising from the Victorian Government’s ForestryTransition policy decision While it is not intended to serve as a comprehensive Economic Development Strategy for Benalla, elements of this document could be built upon, or feed into any future Economic Development Strategy.

In this document we will revisit the unique assets identified in the previously completed Regional ContextAnalysis, build on this knowledge and discuss the progress of the emerging Innovation Working Groups (IWGs). Additionally, we will outline the proposed projects and objectives for implementation of the next stages of this LDS, informing Council’s funding application to the Community Development Fund (CDF)

Finally, we will highlight opportunities that could be further explored through the development of an Economic Development Strategy for Benalla Rural City Council (BRCC).

BACKGROUND - WHAT IS THE LDS?

The goal of the development of the LDS is to support communities impacted by the Victorian Government’s Forestry Transition Program by developing strategies that help them transition away from native timber harvesting, create new jobs in sustainable industries, and achieve long-term economic and social benefits Eleven towns or communities were selected and received funding to prepare an LDS, Benalla Rural City being one of these communities under the banner of the ‘Future of Benalla & District Project’

The first phase of the Future of Benalla & District Project involved creating a Context Analysis to understand the Benalla district This analysis delved into the demographic and descriptive data of Benalla and its surroundings to understand the current community, business and population characteristics and activities Interviews with stakeholders from business, education/research, government, and community sectors provided insights into the region’s knowledge base, ways of working, existing connections and networks, perceived strengths, and current innovation activities

This analysis resulted in a Regional ContextAnalysis document that reviewed geographic, demographic, and other data related to Benalla and district, summarised insights from the interviews, reviewed recent planning and strategy documents and listed potential innovation opportunities

In early 2024, three innovation opportunities were explored through Entrepreneurial Discovery Process (EDP) workshops. Following this, an Innovation Working Group (IWG) was formed to further develop viable opportunities and create project plans for future investment These opportunities are not quick fixes for existing problems but are mid to long-term developments aimed at creating an effective innovation system for the region.

The LDS captures the resulting directions and priorities and helps to inform the next steps required towards implementation and funding

PROCESS USED TO PREPARE THE LDS – HOW SMART SPECIALISATION HAS BEEN IMPLEMENTED IN THE DISTRICT

The project adopted a bottom-up approach, conducting numerous interviews with local stakeholders and focusing on the district’s assets and strengths. Entrepreneurial Discovery Process (EDP) workshops were held, attended by representatives from across the Quadruple Helix of government, business and industry, educators, and community.Additionally, anArts, Culture and Heritage Innovation Working Group (IWG) was formed, consisting of researchers from Melbourne University, government representatives, community members, and industry partners.

Role of DEECA, host agency, Project Manager, PCG, RMIT

As the project funding body, The Department of Energy, Environment and Climate Action (DEECA) provided guidance on grant requirements and was a key partner in delivery of this project The Royal Melbourne Institute of Technology (RMIT) university provided academic support, participated in interviews, and facilitated workshops throughout the project. RMIT have also guided Project Coordinators on applying the Smart Specialisation methodology, tailored to suit the small regional and rural towns involved in the project.

The Smart Specialisation Strategy approach focused on trying to create a community-driven initiative in Benalla, evolving through collaboration with Council and local connections. By adapting the methodology to meet the needs of a regional town like Benalla, it aimed to foster local engagement and showcase how community ownership can drive outcomes.

Benalla Rural City Council served as the host agency for the project having overall responsibility for its delivery Employees from different departments within Council played a vital part in project delivery, introducing key local stakeholders to the Project Coordinator

The Project Control Group (PCG) ensured the project stays on track and meets contractual obligations. The Project Manager has overseen the day-to-day operations, conducted interviews, facilitated community presentations and Entrepreneurial Discovery Processes (EDPs), assisted the Arts, Culture and Heritage IWG, and prepared relevant documentation

Contribution from stakeholders – how have people been engaged?

The LDS project has seen community engagement from the outset. Over 200 individuals were involved in the initial stages, demonstrating local interest and support More than 100 people participated in the initial interview phase, while around 50 attended the presentation of the Regional Context Analysis draft. Feedback was received from 13 individuals on the initial draft. Additionally, 36 people took part in the EDP Workshops, focusing on Arts, Culture and Heritage, Eucalypt-derived health products, and a joint Agroforestry workshop with Murrindindi Shire. The Arts, Culture and Heritage IWG was formed with 13 members representing the Quadruple Helix

Section 1: What our community is and where does it want to go?

Key demographic and economic information from the Regional Context Analysis

Most of the data available on the Benalla district is taken from the Australian Bureau of Statistics (ABS) 2021 and 2016 Census data To enhance the understanding of this data, the REMPLAN and idCommunity platforms were utilised to undertake specific analysis of community, economic and business characteristics of the Benalla district The 2021 Census data was undergoing a phased roll out so in instances where the 2021 data was unavailable, the 2016 data was used

The Benalla Local Government Area (LGA) straddles the Hume Freeway, approximately 2 hours north of Melbourne, and 1 hour south of Albury. It covers an area of roughly 235,263 hectares. The economic and social centre of the Shire is the township of Benalla, with this centre being surrounded by small hamlets such as Winton, Baddaginnie, Tatong, Goorambat and Swanpool Within Victoria’s North East region, Benalla is approximately 30 minutes from Wangaratta and 45 minutes from Shepparton, the closest large regional centres

In the 1980s and 1990s, Benalla was considered a "government town". It was home to regional offices of many government departments It was stated by a local during the interviews, that a third of the population was employed in the government sector at this time. A process of recentralisation under State governments throughout 1990s relocated these offices back to captial cities, which took many skilled workers away from the region

Benalla services large agricultural and manufacturing industries, and over time, has developed a significant Arts and Culture sector. With further investment, promotion and broader marketing effort, there is an opportunity to enhance local and visitor engagement, strengthening the sector even more

Public transport options are limited, and considered essential by most interviewees, to allow residents to travel to larger regional centres for education and employment purposes.

Benalla and district have a notably higher proportion of population aged above 50 than both Regional Victoria and the state as a whole. 52 per cent of the residents are aged 50 and above. That same age group makes up 42 per cent of Regional Victoria

The 2021 SEIFA (Socio Economic Indexes for Areas) index of disadvantage score for Benalla is 951. SEIFA scores range from 143 to 1,207. A higher score reflects lower levels of disadvantage. A score of 951 ranks Benalla as the 20th most disadvantaged LGA out of the 79 in Victoria and 233 out of 547 LGA’s across Australia.

20 per cent of people are living in rented accommodation. 53 per cent of rent is between $200 and $350 per week. 70 per cent are living in a home owned outright or with a mortgage.

The median weekly income for residents of Benalla and district is $655, compared with Regional Victoria $720. Just over 50 per cent of Benalla and district’s population is engaged in the workforce, while Regional Victoria has 55 per cent and the whole State of Victoria has 59 per cent of the population engaged in the workforce.

Of those employed, 16 per cent are Professionals, followed by Managers (15 per cent), Technicians or Trades (15 per cent), Labourers (13 per cent), and Service Workers (12 per cent). Of the entire workforce, 77 per cent are employees, 10 per cent own a business without employees, and 6 per cent own a business with employees. Over 18 per cent of residents are engaged in volunteer work.

Of youth aged between 15 and 25, 10 per cent are disengaged from work and study. Nearly 8 per cent of the population has need for assistance with core activities In Benalla and District, 39 per cent of the population has completed Year 12 Regional Victoria sees 45 per cent completing Year 12, while the state of Victoria has a 59 per cent Year 12 completion rate. Of those possessing qualifications, 39 per cent listed Certificate level, 15 per cent a Bachelor level degree, and 4 per cent a Postgraduate degree Students engaged in further study were most likely to be in Engineering (14 per cent), Management & Commerce (11 per cent), Health (11 per cent), Society & Culture (10 per cent) and Education (9 per cent)

Output is defined as the gross revenue that each industry contributes to the local economy (including direct and indirect sources). In 2021, the Construction industry accounted for almost 25 per cent of the total output

Within the construction industry, Heavy & Civil construction, and Construction Services made up 20 per cent of the total output Manufacturing contributed 19 per cent of the total output, with Metal and Metal products manufacturing accounting for 36.3 per cent of this, and Sawmill, Wood & Paper products accounting for 21 05 per cent Agriculture, Forestry & Fishing was the third largest industry, contributing 10 2 per cent to total output, with Sheep, Grain, Beef & Dairy Cattle making up 82 03 per cent of the total Agricultural output.

16.6 per cent of all employment in the Benalla region is in the Construction industry. The Health Care & Social Assistance industry is the second largest employer in the Benalla region, with 15 3 per cent of jobs being in this industry Manufacturing is the third largest employer, covering 10 8 per cent of all employment in the Benalla region. Agriculture, Forestry & Fishing (9.6 per cent), and Retail Trade (8 3 per cent) are also significant employers

Value-Added represents the marginal economic value that is added by each industry sector in a defined region and can be calculated by subtracting local expenditure and expenditure on regional imports from the output generated by an industry sector, or alternatively by adding the Wages & Salaries paid to local employees, the gross operating surplus and taxes on products and production

The total Value-added for Benalla is $900 131 million

The Construction industry contributes $173.64 million (19.3 per cent) of total Value-Added.

Rental, Hiring & Real Estate Services contributes 13.4 per cent, Health Care & Social Assistance 10 0 per cent, and Agriculture, Forestry & Fishing 9 7 per cent

The Construction industry contributes significantly to the local region through the payment of salaries and wages 19 4 per cent of wages paid are in this industry Health Care & Social Assistance (16.7 per cent), Public Administration & Safety (13.0 per cent), and Manufacturing (11.3 per cent) also contribute significantly These four industries together account for 60 per cent of the total wages paid to workers in the Benalla region Agriculture, Forestry & Fishing contributes 3 1 per cent of total wages paid, even though the industry is the fourth largest employing industry (9.6 per cent of employees)

Key Propulsive Sectors are those industries that rank within the top 5 industries (out of 19) in measures such as backward linkages, exports, employment, and value-added. These industries are considered key contributors to a local economy REMPLAN has ranked these industries for the Benalla and District region.

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Backward Linkages - details the industry sectors which spend the most on locally sourced intermediate goods and services per dollar of output These industry sectors may not necessarily make the largest contributions to the Region’s economy at present However, due to well-developed local supply chains these sectors have a significant capacity to deliver broad based economic benefits for the region

Regional Exports - represents the value of goods and services exported outside of the Benalla Region that have been generated by local businesses/organisations Another way of defining exports is as an inflow of money into the region, i.e. motels have an inflow of money from people who live outside the region’s boundaries thus they are earning export equivalent dollars

Employment - the key social outcome of economic development; employment data represents the number of people employed by businesses/organisations in each of the industry sectors in the Benalla Region.

Value-added - represents the marginal economic value that is added by each industry sector in a defined region Value-Added is calculated by subtracting local expenditure and expenditure on regional imports from the output generated by an industry sector Value-Added by industry sector is the major element in the calculation of Gross Regional Product.

Within these measures of economic activity, the key propulsive sectors for the Benalla & District region, in descending order from most significant, are:

Construction – 4; Agriculture, Forestry & Fishing – 4; Manufacturing – 3; Health Care and SocialAssistance – 2. No other industry scored higher than one point

Acknowledgment of previous planning

Several previous strategies and plans were reviewed and consulted throughout the first stages of the LDS project.The following plans and strategies were summarised in the Regional ContextAnalysis:

1. Benalla Rural City Community Plan 2016-2036

2. Neighbourhood LiveabilityAssessment of Benalla

3. Benalla Rural City Council Plan 2021-2025

4. Ovens Murray Regional Economic Development Strategy

5. Benalla Future Workforce Planning Report 2021-22

The following plans and strategies and documents were not included in the Regional Context, but provided valuable context and direction for the project:

1. Benalla Rural City Municipal Health and Wellbeing Plan 2021 – 2025

2. Ovens Murray Regional Skills Demand Profile, Snapshot 2023

3. Benalla Rural City Tourism & Events Strategy 2018 – 2022

4. BenallaArt Gallery Feasibility Study, Concept Plan and Business Case, Nov. 2020

5. BenallaArt Gallery Strategic Plan 2023 – 2030

6. Future use and Management of Mirboo North and Strathbogie Ranges Immediate ProtectionAreas, Final Report

Analysis

of community, research/education, government and industry participation and collaboration in the district

Throughout the first two years of the project, it became evident that there is scope for improvement in collaboration between community, research/education, government, and industry in the district. Participants highlighted some disconnect between community and government, noting some residents felt their voices were not being heard or adequately represented, leading to some lack of trust and engagement, which was perceived to hamper the effectiveness of local initiatives.

Participation from research institutions in the district is extremely limited. The best examples of strong links between the district and research are found at the Winton Wetlands and GRETALS These projects have successfully integrated academic research with local needs, demonstrating the potential benefits of such collaborations. However, these examples are exceptions rather than the norm, and there is a significant opportunity to expand these partnerships to other areas Benalla is home to significant manufacturing plants that provide valuable employment opportunities for the local community

While these businesses are headquartered overseas, with their Research and Development (R&D) units located elsewhere, this creates a challenge in embedding these companies within a local Innovation Ecosystem. R&D activities are typically driven from global headquarters and implemented locally, which limits opportunities for local collaboration and innovation However, this also highlights a promising opportunity: by fostering stronger connections between these plants, local businesses, education providers, and government, Benalla can encourage the localisation of R&D functions and collaboration opportunities, paving the way for advanced manufacturing innovation and regional economic growth.

To address these challenges, the LDS project has emphasised the importance of the Quadruple Helix model, which involves the active participation of four key sectors: Business/Industry, Research/Education, Government, and Community This model can foster innovation and ensure that diverse perspectives are represented in both collaboration workshops and governance structures. By forming Innovation Working Groups (IWGs) that include members from all four sectors, the project has been able to explore viable opportunities and develop strategies that leverage the unique strengths and insights of each sector.

However there remains a need for greater integration and collaboration. Strengthening the links between local businesses, research institutions, government, and the community can help create a more vibrant and sustainable Innovation Ecosystem. This will require ongoing efforts to build trust, improve communication, and foster a culture of collaboration and innovation By addressing these issues, Benalla can better position itself to take advantage of new opportunities and drive long-term economic and social benefits for the community.

Summary of local strengths and assets

The interview process and data analysis identified several distinct innovation opportunities that warranted further investigation through an Entrepreneurial Discovery Process. The Regional Context Analysis suggested 6 assets and opportunities that could be the focus of Entrepreneurial Discovery Process (EDP) workshops.

What are the key challenges the community wants addressed?

barrier to attracting people to the area. With housing constraints present in regional areas becoming increasingly important for industry to partner with education and skills providers their own workforce", rather than importing workers from elsewhere

Internet connectivity has been identified as a challenge in some parts of town, with speed inadequate for some business operations with substantial data transfer needs While paid grade fibre is available in some areas, it has not been extended to areas such as Sydney where many large businesses need it. Expanding access to business-grade NBN connec would be essential to meet growing needs, particularly for data-intensive operations.

It was noted that some of the older tradespeople in town are starting to wind down toward retirement, with a lack of younger tradespeople coming through. The younger ones that a are struggling to access the capital required to take on the larger projects, like the redeve the Visitor Information Centre It was mentioned that while many locals are happy to volun local committees and boards and to run events, there is an element of volunteer burnout

Many of the interviewees noted a feeling of complacency within the town Interviewees fro the Quadruple Helix noted that people seem to be happy with doing things how they have been done. Some felt there was a lack of vibrancy in the town, despite events like the Ben Art Festival, and the Benalla Festival. Others noted that they felt there was a lack of direc leadership within the town, both within the business community, and from all levels of gov Many felt there was no clear overall strategy or plan for the town, and that some of the de occurring was rushed through, and ad hoc, rather than conforming to an overarching visio

Interviewees from across the quadruple helix noted the challenges associated with relatively low education attainment levels in the Benalla region. One of the larger employers in the area noted that 55-60 per cent of their staff hold a bachelors degree, with 15 per cent of the broader community holding this level of education, there are issues with recruiting appropriately trained staff. Many people lamented the lack of food and beverage options available in town. There is little in the way of nighttime economy activity. Many of the retail shops in town close shortly after lunch on Saturday and are closed on Sunday, providing nothing extra to keep tourists in town.

The key project initiatives proposed in this LDS aim to substantially address these challenges.

The proposed Creative Collaboration Hub project leverages Benalla’s cultural assets and strategic location to create a vibrant space for local artists, designers, and entrepreneurs to collaborate and innovate By providing high-speed internet, hosting evening events, and fostering a sense of community, the hub could improve digital connectivity, activate the CBD after dark, and support staff retention by offering professional development opportunities. Its focus on creative industries sets a strategic vision for Benalla, enhancing its appeal as a dynamic place to live and work

The Benalla Future Economy and Employment Precinct project complements this by positioning Benalla as a hub for advanced manufacturing, green technologies, and logistics With planned infrastructure improvements and a focus on sustainability, the precinct would aim to attract highvalue industries and create quality jobs, supporting staff retention and stimulating demand for housing. Investments in transport and digital infrastructure would improve connectivity, while the precinct’s strategic vision aligns with national priorities for sovereign capability and sustainability

Together, these initiatives offer a compelling pathway for Benalla to overcome current barriers and thrive as an innovative, future-focused community

The transition context – the place of forestry in the local economy and community now and in the future

In the context of the Local Development Strategy (LDS), Benalla has been fortunate regarding the impact of the forestry transition on its local economy. Local forestry businesses have proactively adapted their operations, resulting in minimal to no job losses.

The Innovation Ecosystem

What does the district innovation system look like now, and how has it changed since the start of the project?

Since the start of the Local Development Strategy (LDS) project, the district innovation system in Benalla has evolved. Initially, there was limited visibility of local assets and a lack of strong connections between the town and higher education institutions.

However, the project has brought about several positive changes:

1. Increased Visibility ofAssets: There is now greater recognition of important local sites such as Winton Wetlands and the Benalla Migrant Camp. These places are now acknowledged by a wider audience, highlighting their significance to the community and beyond.

2. Strengthened Educational Ties: The project has identified the need to strengthen connections with higher education and research institutions like GO TAFE, WodongaTAFE, and La Trobe University. Efforts are being made to build these relationships, which will enhance the district’s knowledge base and innovation capacity.

3. Unlocking Industrial Potential: There is a growing focus on unlocking the manufacturing and industrial potential of the area By using these sectors as central connectors, the project aims to open supply chains and new markets, fostering economic growth and innovation.

Overall, the district innovation system has become more cohesive and forward-looking, with a clearer understanding of its assets and a stronger foundation for future development.

How present and connected are actors in the Quadruple Helix?

The presence and connectivity of actors in the Quadruple Helix — community, research/education, government, and business — have shown promising developments in the district. There are notable examples of strong partnerships, such as the Winton Wetlands, which has successfully fostered collaboration among community members, researchers, government entities, and local businesses. Similarly, the BenallaArt Gallery has established robust links across these sectors.

While these examples highlight successful cooperation, they are more the exception than the rule locally in Benalla district. However, the Local Development Strategy project has made significant headway into bringing stakeholders together, gradually changing mindsets and fostering these essential connections. Building a cohesive Quadruple Helix network takes time, but the progress

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What are the key assets in the district, that can drive future prosperity?

The district has several key assets that have potential to drive future prosperity. One exciting opportunity lies in the eucalypt-derived health products sector Although this area has not yet progressed to a working group under this project, there remains significant potential for further investigation.The district is rich in knowledge and existing partnerships between local actors and researchers, and the key to success will be transitioning from research to commercial application.

Another strength of Benalla’s economy is its manufacturing sector. Despite the town’s size, Benalla hosts several large manufacturing entities, demonstrating a strong track record of attracting and sustaining industries.This bodes well for Benalla’s future in manufacturing.

The Winton Wetlands offer significant potential for nature and recreation-based tourism, providing a unique asset for the district.Additionally, arts and culture are already key assets in Benalla, with room for growth. Building better connections between existing stakeholders and strengthening ties with government, research bodies, and the arts sector (Quadruple Helix) can further enhance this area.

Finally, acknowledging Benalla’s ageing population, the health and aged care sector is poised for natural growth as the population continues to age. This sector will become increasingly important in supporting the community’s needs.

What are the existing and emerging drivers of prosperity in the district?

The drivers of prosperity in the Benalla district can be broadly categorised into several key areas.

Economic diversification is crucial, moving away from reliance on native forestry, towards a more varied economy that includes manufacturing, health products, tourism, and arts and culture. This diversification builds resilience against economic shocks.

Innovation and research play a significant role, leveraging local knowledge and partnerships with educational institutions like RMIT, GOTAFE, WodongaTAFE, and LaTrobe University to drive innovation.This includes transitioning research into practical applications, particularly in emerging sectors like eucalypt-derived health products.

Community engagement is essential, with strong involvement and collaboration across the Quadruple Helix - community, research/education, government, and business. Projects like this LDS initiative have demonstrated the importance of bringing stakeholders together to foster a collaboration.

Improving infrastructure and connectivity, both physical and digital, supports business operations and attracts new investments. Enhancing transportation networks, internet access, and facilities that support industrial and commercial activities are key components.

Sustainable development is emphasised across all sectors, from manufacturing to tourism. This includes promoting eco-friendly tourism at places like Winton Wetlands and developing sustainable health products.

Cultural and recreational assets are utilised and promoted to attract tourism and enhance the quality of life for residents. The BenallaArt Gallery and Winton Wetlands, Winton Motor Raceway, and Benalla Migrant Camp are prime examples of assets that can drive cultural and recreational tourism.

Finally, addressing the needs of an ageing population by expanding the health and aged care sector is vital.This not only provides essential services but also creates job opportunities and supports the local economy

By focusing on these areas, Benalla can build a robust and sustainable economic future that benefits all members of the community

What are potential growth industries in the district?

The district has several promising growth industries that can significantly contribute to its economic development:

1. Manufacturing:As a cornerstone of the district’s economy, manufacturing offers substantial growth potential. Investing in advanced technologies and sustainable practices can enhance productivity and competitiveness, driving economic progress.

2. ManufacturingAllied Industries: These industries are essential for supporting the primary manufacturing sector.They provide necessary materials, components, and services, fostering a robust supply chain and creating numerous job opportunities.

3. Creative Industries (Arts, Cultural and Heritage): This presents a significant economic growth opportunity for Benalla by leveraging its unique assets, such as the BenallaArt Gallery, street art, Winton Wetlands, Benalla Migrant Camp and Winton Motor Raceway, to attract tourism, foster creative industries, and enhance local identity Establishing a Creative Collaboration Hub could stimulate job creation, innovation, and investment, positioning Benalla as a vibrant cultural destination in regional Victoria

By focusing on these key areas, the district can aim to build a diverse and resilient economy, ensuring long-term prosperity and quality of life for its residents

Where does local expertise lie – and where does it need to be brought in to support development?

The district has a strong foundation of local expertise across key sectors, presenting significant opportunities to drive sustainable development and growth:

1. Skilled Workforce:The district benefits from a highly skilled workforce with extensive experience in sectors such as manufacturing and creative industries These industries are supported by a local talent pool that is well-versed in both operational and technical requirements, positioning them as essential drivers of economic growth.

2. Opportunities for Skills Development through Education:To sustain and amplify growth, there is a need to strengthen local educational and training programs By fostering partnerships with local educational institutions and industry leaders, the district can provide specialised training and upskilling opportunities.This will ensure the workforce remains adaptable, competitive, and capable of meeting the evolving demands of a dynamic market

3 Creative Industries: Benalla is comparably rich in prominent arts, culture and heritage organisations, driven by employed specialists or dedicated and knowledgeable volunteers Through the LDS process and formation of an Innovation Working Group, the collaborative potential of these organisations has been identified Drawing together existing expertise and attractions, Benalla can elevate its position as a compelling cultural tourist destination.

Areas requiring external expertise:

1. Advanced Manufacturing Technologies: While the local workforce excels in traditional manufacturing, introducing expertise in advanced technologies - such as automation, robotics, and sustainable practices - can significantly enhance productivity, drive innovation, and position the district as a leader in modern manufacturing.

2. Creative Industries: There is potential to enhance existing local expertise and the opportunities for innovation and entrepreneurship through partnerships with external organisations (including deepening existing partnerships with organisations such as RMIT and Melbourne University) and attraction of new creative practitioners. Fostering partnerships, generating new ideas, and turning creative opportunities into sustainable businesses will be key to deriving maximum benefit from Benalla’s creative industries; driving economic growth, job creation, and community engagement.

By integrating local expertise with targeted external knowledge and resources, the district can build a dynamic and more resilient economy and community, paving the way for sustainable growth, innovation, and long-term development.

The Benalla Future Workforce Planning Report 2021-22 focuses on a deep dive analysis of the current and future jobs and skills needs within the municipality.This analysis offers an overview of the education and training needs employers have said they need to fill the jobs of the future, key challenges identified, and some ideas for potential solutions to these challenges.

Growth industries in the Benalla LGAinclude allied health, tourism, concrete manufacturing, renewable energy, agribusiness, construction and logistics. The objective of this report is to determine current job opportunities, predictions of future job opportunities and recognising skill gaps and how to fill them.

The data for the report was collected through qualitative in-depth research by face-to-face interviews with local businesses and focus groups held with a mix of local business, Council, and education providers. Employers from the top 19 industries for employment in Benalla were consulted for input on current and future labour force barriers, skills and training and employment opportunities.

The report demonstrates the barriers to employment are more entrenched in the community in a range of ways as opposed to being as the result of the COVID-19 pandemic or any one factor. It is clear the priorities to meet current and future roles are existing skill gaps, future skill needs, education and training needs and infrastructure shortfalls. The main barriers to employment are difficulties finding appropriate staff, insufficient accommodation for workers, inadequate internet and lack of public transport.

Employers say they have difficulties finding staff with the main barriers being workforce readiness and attitude, lack of enterprise skills, lack of professionalism, drug and alcohol use (fear of a drug test on employment), limited qualified candidates, and employees not being passionate about their jobs. Current skills gaps also include core skills, motivation, reliability, poor quality resume and no cover letter, limited ability to communicate effectively and build rapport with clients, leadership and work ethic.

Future skills that are predicted to be needed in the future were said to include digital skills, innovative mindset, intuition, planning skills, resilience, troubleshooting capabilities, negotiation skills and respect of diversity. Most industries have education and training needs for employees to hold at least a certificate qualification, with some employers happy to offer on the job training through apprenticeships.

Infrastructure requirements to improve job outcomes across industries are internet, public transport, a networking business hub, digital transformation, short and long-term housing, and improved workplace spaces and conditions. To solve these issues the report stated it would require collective community groups, industry leaders and educators to work together. No singular organisation would be able to resolve these needs on their own.

Solutions could include developing a systemic approach to address the future skills gaps and establishing working groups to create the plans for future skills gaps, which the working groups will implement. By 2025, new jobs or additional skills within job roles, will evolve in the Benalla region within existing industries.Additional skills will be required by jobseekers.Arange of education and training will be essential. To prepare for these roles, skills building needs to start now

Section 2: How we get there (LDS Implementation Roadmap)

This section documents the activities that will support LDS initiatives and the development of the Regional Innovation System.

Innovation Opportunities

What are the initiatives that will develop local competitive advantage in key areas of strength?

ACreative Industries (Arts, Culture & Heritage IWG) has been formed as a result of the LDS Entrepreneurial Design Workshop.At this Workshop, a Value Proposition was defined as, “By building the collaborative capacity and capability of Benalla’s key arts, culture and heritage stakeholders, Benalla will be recognised as a leader of arts, culture and heritage.”

The group deliberated on refining the value proposition to highlight Benalla's uniqueness and starting strengths. By collaborating more closely the key organisations will be able to build on expertise, records, and reputation that they currently have to develop a more innovative and dynamic reputation for arts, culture and heritage in the district.

The initial phases of discussion drew from evidenced examples of culture-led revitalisation in Australia and abroad. Considerable investigation of a multi-site event prototype was undertaken, with a view to building on existing collaborative networks and processes and strengthening Benalla’s position as a multi-layered arts and culture destination. The prototype was intended to gather data to support the future and regular delivery of such collaborative multi-site experiences and events.

However, the concept has recently evolved from this multi-site collaborative project, which was centred on four key organisations (BenallaArt Gallery, Winton Wetlands, Benalla Migrant Camp, and Benalla Motor Raceway), to the development of a creative collaboration space in Benalla. This concept, while still enabling greater collaboration of the four key organisations and greater visitor distribution to these existing assets, is also recognised as having additional economic growth and job creation benefits.

Acting as both a tourist attractor and distributor, this concept would pave the way to diversify Benalla’s creative industries, which encompasses an evolving mix of sectors spanning arts, culture, screen, music, design and architecture, games development, fashion, publishing and more. Further, the creative collaboration space is recognised as aligning more directly to a number of the key challenges the community wanted addressed through the LDS consultations, chiefly staff retention, strategic vision, and nighttime economy activation.

Another initiative under investigation is the Manufacturing Precinct Plan and InfrastructureAudit to identify strengths and opportunities in this sector.The Benalla-Yarrawonga Road and Enterprise Park Industrial Precinct is well-positioned for significant growth, driven by defence manufacturing, advanced logistics, and sustainability initiatives. With the right investments in infrastructure, workforce development, and government support, the precinct can become a national leader in advanced industrial innovation and logistics.

How are these going to be pursued – what are the governance arrangements, business entities involved and potential sources of funding and investment?

To develop a local competitive advantage in key areas of strength, the district is undertaking several strategic initiatives:

Creative Industries (Arts, Culture & Heritage Innovation Working Group): The formation of theArts, Culture & Heritage Innovation Working Group (IWG) was a significant step forward. This group has analysed in detail and conceptualised in various formats how Benalla can leverage its existing cultural assets and become a vibrant hub for creative industries, unlocking long-term economic benefits and community development. The development of a Creative Collaboration Hub in Benalla represents a unique opportunity to activate economic growth, create jobs, and enhance the town’s cultural identity.

2. Manufacturing Precinct Plan and Infrastructure Audit: Another critical initiative under investigation is a Manufacturing Precinct Plan and Infrastructure Audit. This comprehensive plan aims to identify the strengths and opportunities within the manufacturing sector By conducting an in-depth audit of existing infrastructure, the district can pinpoint areas for improvement and investment This initiative will aim to streamline operations, enhance productivity, and attract new businesses, thereby solidifying the district’s position as a manufacturing hub

By focusing on these initiatives, the district can leverage its existing strengths while identifying new opportunities for growth. These efforts will ensure a competitive edge in the creative industries (arts, culture, and heritage) and manufacturing sectors, driving sustainable economic development.

Collaboration Hub in Benalla. Leveraging successful examples from around internationally, this hub would provide a space for artists, designers, entrepreneurs, and digital creatives to work, collaborate, and innovate – including those attracted to the region as a result of the project.The hub would also aim to catalyse and enable greater collaboration between, and awareness of, existing arts, culture and heritage assets and organisations, community groups, and sole traders.

By capitalising on Benalla’s cultural assets and its strategic location, the hub could stimulate economic growth, job creation and community engagement. Drawing from international best practices, such as the adaptive reuse of underutilised spaces and fostering community-driven initiatives, the hub could provide significant cultural and economic benefits for Benalla.

This emerging direction will investigate feasibility of developing the hub, and the further work required to plan and implement the project.

Benalla Future Economy and Employment Precinct

This project will aim to deliver an infrastructure audit and manufacturing precinct masterplan The Benalla-Yarrawonga Road and Enterprise Park Industrial Precinct is a major infrastructure and industrial development project designed to transform Benalla into a hub for advanced manufacturing, logistics, and sustainable technologies This initiative will drive regional economic growth, attract high-value industries, and create a sustainable industrial ecosystem aligned withAustralia’s national priorities for sovereign capability and geopolitical resilience

The project will aim to deliver long-term benefits to the local and national economy through job creation, infrastructure improvements, and increased industrial output, while addressing national objectives such as energy sovereignty and sustainability. Its focus on green technologies and circular economy practices ensures that the precinct will align with global sustainability goals

Enabling infrastructure

What infrastructure will enable future prosperity in the community?

As part of the next phase of the Future of Benalla Project, it will be important to gain a better understanding of our infrastructure needs. Feasibility studies, Master Planning and an infrastructure audit will provide important data on what is already here, the state of current infrastructure, and what gaps are present.

Understanding where we are currently, will allow key stakeholders to plan future infrastructure projects to ensure Benalla is well placed to attract new businesses to the district.

This will include developing project plans to test the feasibility of:

The Benalla Creative Collaboration hub concept

The Benalla-Yarrawonga Road and Enterprise Park Industrial Precinct activation

These priorities will be the main focus for the next stage FundingApplication to the Community Development Fund (CDF).

Collaboration and governance

Who are the people and organisations that will support ongoing community- led economic development?

There are several local organisations that will need to support ongoing community-led economic development. Most of the following organisations have participated in the LDS project over the last two years, except for the Benalla Business Network (which has just relaunched after COVID):

BenallaArt Gallery

Benalla Business Network

Benalla Migrant Camp

Benalla Rural City Council

GOTAFE

Industry leaders in the manufacturing sector

Latrobe University

TomorrowToday Foundation

Tourism Northeast

Winton Motor Raceway

Winton Wetlands

What participation from community, government, education/research and business now looks like in this community – has this changed since the start of the project?

Since the start of the Local Development Strategy (LDS) project, participation from the community, government, education/research, and business sectors in Benalla has seen a significant transformation.

Historically, Benalla has had a strong tradition of citizens banding together for various causes.This project has built on that foundation, fostering even stronger connections and collaboration across diverse sectors.

The community’s involvement has deepened, with more residents actively participating in initiatives and discussions. This engagement has been crucial in identifying local strengths and opportunities, ensuring that the strategies developed are well-informed and community-driven.

Government participation has also increased, with local authorities playing a pivotal role in guiding and supporting the project. Their involvement has ensured that the initiatives align with broader policy goals and receive the necessary resources and support.

The education and research sector has become more integrated into the community’s development efforts. Institutions like RMIT University Melbourne University, LaTrobe University, GOTAFE, and Wodonga have provided valuable insights and expertise, helping to drive innovation and practical applications of research. This collaboration has been instrumental in exploring new opportunities, such as eucalypt-derived health products.

The business sector has shown a proactive approach, with local businesses adapting their operations and exploring new markets. project has facilitated cross-pollination of ideas between business and other sectors, uncovering strengths in seemingly unrelated fie has led to innovative solutions and new partnerships that would n emerged without the project

Overall, the LDS project has significantly enhanced participation a collaboration among community, government, education/research business sectors in Benalla This strengthened network is now be equipped to drive sustainable economic growth and innovation, b the entire community.

What additional or ongoing support may be needed to develop local leadership and capability?

To further develop local leadership and capability in Benalla, several additional and ongoing support measures are possible, including placebased leadership and capacity-building programs. This could be made available to interested parties from all sectors, providing a structured approach to developing leadership skills and enhancing local capabilities.

Beyond this initiative, continuous support is needed in several areas:

1. Ongoing education and training: Regular workshops, seminars, and training sessions can help community members, business leaders, and government officials stay updated on best practices and new developments This continuous learning environment will foster a culture of

innovation and adaptability

2. Mentorship and networking opportunities: Mentorship programs and networking events are vital for fostering local expertise, sharing insights, and encouraging collaboration across sectors. The Benalla Business Network (BBN) could potentially play a role here, leveraging its local connections to build capacity and complement other providers This could help strengthen Benalla’s business ecosystem, support professional growth, and drive innovation

3 Access to resources and funding: Ensuring that local leaders have access to the necessary resources and funding is vital for implementing new initiatives and sustaining ongoing projects. This includes financial support, technical assistance, and access to research and data

4 Community engagement and participation: Encouraging broader community involvement in decision-making processes will help ensure that initiatives are inclusive and reflective of local needs. This can be achieved through regular community meetings, surveys, and feedback mechanisms.

5. Strengthening institutional ties: Building and maintaining strong relationships with educational institutions, such as La Trobe University, RMIT university, Melbourne University, and local TAFEs, will provide ongoing access to expertise and research. These partnerships can support continuous innovation and capacity building. educational institutions, such as La Trobe University, RMIT university, Melbourne University, and local TAFEs, will provide ongoing access to expertise and research. These partnerships can support continuous innovation and capacity building.

6. Promoting a collaborative culture: Fostering a culture of collaboration across the Quadruple Helix - community, research/education, government, and business - will be essential. This includes creating platforms for regular interaction and joint projects that leverage the strengths of each sector

By focusing on these areas, Benalla can ensure that local leadership and capability continue to grow, driving sustainable development and prosperity for the community. It is proposed that the feasibility and development of the Creative Collaboration Hub, and further actions required to develop the Benalla-Yarrawonga Road and Enterprise Park Industrial Precinct will present opportunities to do this.

What

governance structures are in place or needed – e.g. through Chambers of Commerce, local government, or local community groups

In Benalla, a combination of existing and needed governance structures can play a pivotal role in fostering local leadership, capability development, and innovation.These structures are essential for ensuring strategic alignment, community engagement, and sustainable growth across sectors. For example, the recent relaunch of the Benalla Business Network featuring a new Executive Committee, updated website, and renewed push for membership, is a significant step forward in fostering local business growth and collaboration.

Existing Governance Structures

1

. Local Government: the Benalla Rural City Council is central to srategic planning, resource allocation, and connecting various sectors. The Council provides governance and support for community-driven initiatives while fostering collaboration between public, private, and community stakeholders.

2. Benalla Business Network (BBN): With its revitalisation, the BBN may be well-positioned to act as a hub for local businesses, offering advocacy, networking opportunities, and business development support It could serve as a bridge between enterprises and other governance bodies, driving economic growth and innovation

3. Community groups: Local community organisations represent the interests of residents, facilitate engagement, and ensure that diverse voices are heard in decision-making processes. Their contributions are vital for inclusive governance and grassroots development

4. Creative Industries (Arts, Culture & Heritage Innovation Working Group):The firstArts, Culture and Heritage Innovation Working Group meeting was convened on 16April 2024, as an outcome of the Quadruple Helix consultation and a subsequent EDP Workshop.The group includes representation of the Benalla Migrant Camp, Benalla Rural City Council, Benalla Motor Raceway, University of Melbourne Faculty of FineArts and Music,TomorrowToday Foundation, Winton Wetlands, BenallaArt Gallery,Tourism North East, RMIT, and DEECA. The group has robustly discussed and explored various initiatives, leading to the current Creative Collaboration Hub concept.

Needed Governance Structures

1.

Educational and Research Partnerships: Strengthening ties with robe University, RMITUniversity, Melbourne AFEs can integrate research, training, and innovation into local development strategies. Formalised partnerships could provide expertise and help to align educational offerings with

2. Sector-Specific Innovation Working Groups (IWGs):

Establishing new IWGs in areas like creative industries and advanced manufacturing can facilitate collaboration among diverse stakeholders. These groups can act as drivers of innovation and targeted economic

Advisory Boards: Inclusive advisory boards composed of representatives from community, business, government, and education sectors can provide strategic oversight and guidance. Such boards would ensure that decisions reflect a diversity of perspectives and align with local priorities.

4. Quadruple Helix Collaboration: Leveraging the Quadruple Helix model, which integrates government, academia, industry, and civil , can drive innovation and sustainable development. This framework encourages co-creation by aligning the needs of the community with the capabilities of businesses, researchers, and policymakers. For example, innovation initiatives within IWGs could directly engage community groups to ensure that outcomes reflect local aspirations while benefiting from global expertise.

grating these governance structures, Benalla amework for collaboration, innovation, and e Helix model offers a unique opportunity to und shared goals, ensuring that development is king, and sustainable This approach would ress local challenges, unlock economic itself as a leader in regional innovation