7 minute read
Overview
Background
The Sunshine Coast region’s economic base has historically been built upon its natural resources. The rural sector, which was once prevalent, has now given way to the present three dominant sectors of tourism, construction and retail. The latter two having been driven by increases in population, proximity to a major capital city and increased awareness of the region and increased transportation links.
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The tourism, retail and construction sectors each represent between 13% and 17% of GRP. They are interdependent, with visitors driving retail and often seeking to relocate themselves and their businesses to the region. This interdependence means that the whole region is susceptible to fluctuations in the economic cycle. Recent studies and reports have placed the region within the top 20 most vulnerable in the country due to this economic sector mix.
Council will continue to foster the development and growth in the three main sectors, to increase value, jobs and overall GRP. Work will also be undertaken to develop a wider range of sectors that aren’t as interdependent, or subject as much to economic cycles, and ultimately to increase the proportion of the GRP that the new sectors represent. 11 sectors have been identified as the target for this development.
The majority of existing businesses are small, with 85% employing less than five people. This, combined with a reliance on the three large sectors, has led to a need to diversify the economy across a range of additional sectors, and to encourage the growth in the size of our businesses.
The Sunshine Coast, along with other regions, faces a number of challenges including climate change, the ongoing swings of the economic cycle and rapid growth, as well as demographic shifts impacting the labour market. Council is working proactively not only to respond to these issues, but also to turn these challenges into opportunities to develop our economy, for instance through the innovation and promotion of the knowledge economy, including the clean technology and education services.
In all its decisions regarding the economy, Council will respect the unique character of the region and quality of life enjoyed by its communities. Our distinctive sub-regions each have their unique opportunities and challenges which will be used to develop the region as a whole. The development of a new planning scheme for the region provides an opportunity to ensure we have the right foundations on which to build our economy, including the location of land for business and streamlined development assessment requirements.
Challenges
There are a number of local challenges facing the region which will be considered in Council’s approach to economic development. These include:
• The existing reliance on three major interdependent sectors, Tourism, Retail and Construction, which are some of the most susceptible to economic downturns. • Around 85% of all businesses employing less than five people, many of which are home based businesses. • A reliance on a small number of businesses to provide employment. The top 100 companies represent 1% of all businesses but represent 44% of turnover and 24% of the workforce.
• The need to ensure necessary economic infrastructure is in place to keep pace with demand. This includes transport links such as the airport, major road networks, public transport services, and high speed world class broadband. • Ensuring there are sufficiently skilled and qualified workers to meet the demands of businesses.
• An aging demographic; the region already has a lower than average participation rate and this is forecast to increase. • Stemming the flow of young adults leaving the region for education and vocational training. • Becoming well known as a destination to do business, in addition to being well known as a holiday destination. • The need to plan for climate change.
Opportunities
Some of the opportunities include:
• Proposed major infrastructure developments that can stimulate new and growing sectors to provide jobs such as the Sunshine Coast Airport Master Plan, the Sippy Downs Town Centre, Sunshine Coast University Hospital and Maroochydore Principal Activity Centre, Cooroy Knowledge Precinct, Stockland Park, Maleny Community Precinct, Sunshine Coast Industrial Park and Noosa Shire Business Centre.
• An expanding population which can provide new business opportunities and brings with it skills and experience. • An aging population providing new business opportunities around aged health care and other service provision. • Growth in educational opportunities, including an expanding Sunshine Coast University to meet the educational demands of young adults, reducing their need to leave the area.
• A lifestyle choice area that can attract highly skilled, innovative entrepreneurs. • Industry sector development resulting from the transition to a low carbon economy. • A new Planning Scheme. • The development of a strong rural sector. • The potential growth of small businesses into larger businesses will generate a significant growth in the number of jobs available. At the same time, it is accepted that some small businesses may wish to remain as they are for a variety of reasons.
1. Council's Core Business
Council undertakes a range of functions which form part of its core business and which have a significant impact on the local economy, particularly in the construction, retail and tourism sectors.
a) Land Use Planning - Council plays a major role in contributing to the robustness of the economy through the development and implementation of the Planning Scheme for the region. The Sunshine Coast currently faces a series of critical challenges and one of the roles of the Planning Scheme is to ensure the region’s significant economic development capabilities are afforded protection through specific recognition in land use planning policy. Through the Planning Scheme, Council aims to ensure support for appropriate development that is attractive to new investors and which supports successful local business, as well as protecting the natural amenity and ensuring good quality agricultural land is protected as a key economic resource.
b) Regulating - Local Laws and the Development Assessment process - The creation of Local Laws enables Council to regulate in relation to safety and amenity. These Local Laws and their implementation also have an impact on local businesses which needs to be taken into account.
c) Funding - As well as stimulating the economy through being a significant employer in the region, Council delivers a major capital expenditure program. Through its procurement strategies, Council encourages the development of business and economic growth within the Sunshine Coast region. By working with other economic development initiatives undertaken as part of sector development, Council can increase the positive impact its buying capacity has on the local economy.
2. Economic Development Initiatives
Council directs resources to targeted interventions that can stimulate, facilitate or provide co-ordination to assist in building capacity in the regional economy.
There is a range of circumstances where Council has discretion to act to influence or assist in economic development. In general, the public sector would intervene in economic development only where:
• a need has been demonstrated, • the intervention is likely to be effective, • no other player or organisation is as well placed to take action, • the free market needs assistance, and • social equity needs will not be met without intervention.
There is a clear need for intervention, for instance, in the following circumstances:
• In the provision of public goods, such as key infrastructure which benefits the whole community. This can include site assembly to enable developments. • Where there are unplanned events that affect the community as a whole, such as a company closure where the whole costs of that closure are not borne by the company. • Where companies with potential may not have the skills to grow and expand and need help and assistance. • Where there is imperfect information in the market place to make investment decisions. The public sector can play a key role in providing accessible information.
• By coordinating activities such as creating networks for businesses, joint marketing and promotion activities. • Where there is a need to diversify the economy to provide a more stable business environment and establish an economically resilient area. • Where there is a need to provide certainty and confidence for investors through leadership and investment in the economic sector.
