Agenda of Policy Review Committee Meeting

Policy Review Committee Meeting 8 October 2012

A Leading City

Funding for Emergency Services - Discussion Paper

Compiled by: Andrew Moore, Financial Services Manager

Tracy Chalk, Waste and Community Protection Manager

Authorised by: Vicki O’Kelly, Group Manager - Finance

David Burns, Group Manager - City Presentation

Objective	We demonstrate accountability, transparency and ethical conduct
Community Outcome	A Council that behaves responsibly and ethically (5)
Strategic Response	Base our decisions on research, evidence, and our responsibility to anticipate harm before it occurs (5.2)

Executive Summary

The NSW Government has undertaken a review of the current funding model for Emergency Services. As a result a Discussion Paper has been provided with a request for written comment. The discussion paper proposes a number of potential considerations including the introduction of a property based levy, removal of the current contribution by insurance companies, potential introduction of a charge on vehicle registrations and concessions for pensioners. Additionally, the Discussion Paper proposes that Local Government may be responsible for collecting the proposed property based levy.

This is an issue previously considered in July 2008 which at that time was opposed by Council.

This report recommends that Council provide a formal response to the Discussion Paper, opposing the introduction of a property based levy to replace the current contribution by insurance companies.

Background

The NSW Government has released a Discussion Paper on Funding our Emergency Services (copy attached) and is currently seeking feedback. The review of funding sources for Emergency Services is proposed to have no impact on the overall funding for Emergency Services, which is estimated at just over $1b for NSW in 2012-13 and provides for the services of Fire and Rescue NSW, the NSW Rural Fire Service and the NSW State Emergency Service. The current funding structure has contributions by:

- Insurance companies, recovered through a levy on policies (73.7%),

- State Government funding (14.6%), and

- Local Government contributions (11.7%).

Penrith City Council’s budgeted Emergency Services Contribution for 2012-13 is $1,753,577.

This review follows on from the Henry Tax Review and the IPART Review of State Taxes (2008) which both were critical of the current funding structure and proposed the removal of the tax on insurance policy in lieu of a property based levy. IPART recommended in their review that the property based levy should be collected by Local Government.

In July 2008 Council made a submission to the IPART review that opposed the replacement of the contributions by insurance companies by an increase in the contributions made by local Government. (Refer to attached Council Report dated 7 July 2008)

Current Situation

The Discussion Paper on Funding our Emergency Services released by the NSW Government is in response to a commitment in the 2011 State election to review the funding model for Emergency Services. The Discussion Paper asserts that the current system has a number of serious weaknesses, as it is:

- Inefficient and discourages people taking out insurance,

- Unfair as the Emergency Services Levy is only paid by people with insurance, and

- Out of step with the practice in other States.

The Discussion Paper seeks feedback on 10 “key questions”, three of these questions directly relate to the formulating of funding sources and therefore potentially impact Local Government and a fourth question concerning concessions for pensioners relates to an established lobbying position of Council.

It is proposed that Council make a submission to the Discussion Paper. Each of the four questions are addressed below and proposed responses have been prepared consistent with Council’s previous position on these issues for discussion at tonight’s meeting. Any endorsed submissions will be forwarded to the NSW Government.

Discussion Paper Questions

1. Which of the current revenue sources associated with emergency services funding should be replaced by a property levy?

Background

Funding for Emergency Services is determined each year by the Minister for Police and Emergency Services in consultation with the Treasurer. Funding is provided through contributions by the insurance industry (the largest contributor), local councils, and through the State’s Consolidated Firefighting Fund.

The insurance industry contribution (the ‘fire services levy’) is determined by the market shares of insurance companies issuing policies for fire, industrial-specific risks, contractors, home and vehicle insurances. The fire services levy, as it is described on insurance policies, is not a NSW Government tax but a surcharge that general insurers impose on their customers to recoup the cost of their contribution to the fire services. Insurance companies determine if and how they will recover their contributions – in most if not all cases, this is through a levy on policy holders based on their insurance premiums.

Local Government’s contribution to Emergency Services is 11.7% of the cost of providing Emergency Services, distributed based on services covered (Fire and Rescue, RFS and SES), their costs and with consideration to the value of rateable land within the particular Local Government Area (LGA). In 2012-13, Council’s budgeted Emergency Services contribution is $1,753,577.

The Discussion Paper advocated a property valuation based levy model, to replace at least the existing fire services levy on the insurance industry. Queensland, South Australia, Western Australia and the Australian Capital Territory operate a property-based levy to fund emergency services, with Victoria transitioning to a property based levy in 2013.

Proposed response

Penrith City Council is opposed to the introduction of a property based levy to replace the current contribution by insurance companies. While the disincentives for obtaining appropriate levels of insurance are acknowledged, this approach is based on the assumption that the cost attributed to the running of emergency services are directly related to the property values of Penrith.

In fact, a considerable number of incidents that Emergency Services respond to are motor vehicle related accidents and rescues. Any variation to the funding model should include the introduction of contribution to Emergency Services as part of annual vehicle registrations.

In Queensland and Western Australia the burden of collecting the property based levy has been shifted to Local Government. Emergency Services are State Government services and as such any property based levy should be collected by the State Government allowing funding for these services to be transparently provided by the State Government, similar to other essential services including NSW Police and Ambulance Services.

2. Should pensioners receive concessional rates for a new property levy that funds emergency Services?

Proposed response

Penrith City Council supports the notion that pensioners should receive concessional rates for any new property levy that funds emergency services. Through Council’s recent Special Rate Variation, affordability particularly for pensioners was a common theme in the feedback provided by the community consultation process. To address the issue of affordability Council is directly advocating for a better deal for pensioners in relation to council rates to Members of Parliament and senior officials of both state and federal governments. Council put a motion to the 2011 Local Government Association Conference calling on the Australian Government for increased financial support to councils and pensioners. Since 1988 pensioners in NSW have received a mandatory subsidy of up to $250 on residential rates and Council believes that this level of rebate is overdue for review. In addition Council resolved to exempt pensioners from the stormwater charge which commenced this financial year.

Any additional property levy would place additional financial pressures on pensioners and Council believes that concessional rates would need to be applied to assist this group.

3. Should some proportion of emergency services funding be raised as an annual charge on vehicle registrations?

Proposed response

Penrith City Council supports the inclusion of a charge on vehicle registrations as a means to more equitably distribute the cost of providing emergency services. A considerable number of incidents that Emergency Services respond to are motor vehicle related accidents and rescues.

4. Should revenue from a land based levy be collected by local governments or the Office of State Revenue?

Background

The NSW Government Valuer General (VG) currently produces land valuation for all NSW properties. This includes valuation to Local Government for Rating and the State Government for land tax. The NSW Office of State Revenue currently collects State based tax and revenues and has been established for this purpose with the State Government currently having access to all the required information to levy and collect this new tax.

Proposed response

Notwithstanding the inequities of a property based levy alone funding Emergency Services, the provision of Emergency Services is a primary function of the State Government. As such, the collection of any property based levy as a part of the funding mix should be undertaken by the Office of State Revenue (OSR). Penrith City Council is opposed to acting as the collection agency for a state government levy. The levy would appear to ratepayers as another Council charge. Council is also concerned about the administrative costs and the level of potential arrears associated with collection of such a levy.

Conclusion

The NSW Government have released a Discussion Paper to review the funding model for Emergency Services. The paper proposes a number of potential considerations including the introduction of a property based levy, removal of the current contribution by insurance companies, potential introduction of a charge on vehicle registrations and concessions for pensioners. The Discussion Paper also considers if Local Government should be responsible for collecting the proposed property based levy. This report recommends that Council make a submission to the Discussion Paper as outlined above and caution the State Government on transferring the burden of funding Emergency Services from insurance companies to Local Government.

RECOMMENDATION

That:

1. The information contained in the report on Funding for Emergency Services - Discussion Paper be received.

2. A submission be made to the NSW Government on the Funding our Emergency Services Discussion Paper, as outlined in this report.

ATTACHMENTS/APPENDICES

1.	10 Key Questions	1 Page	Appendix
2.	Council Report to the PRC dated 7 July 2008	5 Pages	Appendix
3. View	Funding our Emergency Services Discussion Paper 2012	43 Pages	Attachment

Policy Review Committee Meeting 8 October 2012

A Leading City

Penrith City Council Community Survey 2012

Compiled by: Krystie Race, Sustainability Research Planner

Tanya Jackson, Strategic Planning Coordinator

Authorised by: Ruth Goldsmith, Group Manager - Leadership

Objective	We demonstrate accountability, transparency and ethical conduct
Community Outcome	A Council that behaves responsibly and ethically (5)
Strategic Response	Base our decisions on research, evidence, and our responsibility to anticipate harm before it occurs (5.2)

Presenter: Michael DiLeo - IRIS Research - Penrith City Council Community Survey Results for 2012

Executive Summary

This report outlines the results of the Penrith City Council Community Survey 2012. The full survey report, by IRIS Research, is provided in Attachment 1. The report recommends that the information contained in the report be received.

Background

Council regularly conducts a City-wide telephone survey of residents of the City to determine their satisfaction with Council’s services. To align with the new Integrated Planning and Reporting (IPR) requirements, the survey is now undertaken annually.

Council’s first customer survey of 623 households was conducted in April 2003 with the assistance of IRIS Research. The same methodology was used in surveys conducted in 2005, 2007, 2009, 2011 and 2012 to ensure that meaningful comparisons could be drawn from the results. The aim of the survey is to provide Council with an understanding of the perceptions and needs of our local communities regarding a broad range of services and facilities. In particular, it provides:

· Measurement of the importance of, and satisfaction with, services and facilities provided by Council

· Feedback on the customer service provided by Council staff

· Perceptions about community well being and the ‘feel’ of the City

· Information to help Council identify service priorities for our communities

· A comparison of Council’s overall satisfaction ratings with other councils.

The survey also provides information for the indicators in the Community Strategic Plan, Council’s Delivery Program and Annual Report.

Survey Methodology

A total of 601 completed telephone surveys were collected from a random sample of residents throughout the City. Strict sampling procedures ensure that characteristics of selected respondents mirror the overall adult population with a representative distribution across age, gender, ward and defined land areas (eg rural, new release and established urban areas). The survey was conducted from 25 June to 1 July 2012.

The telephone survey asked respondents to give both an importance and satisfaction rating (using a rating scale of 10 ‘very important’ or ‘very satisfied’ to 1 ‘not important’ or ‘very dissatisfied’) about Council’s external services and facilities. The survey seeks residents’ perception of service provision and Council staff performance. The key results from the 2012 survey are summarised in six sections below.

1. Overall Council Performance

Resident satisfaction with Council’s performance improved in the recent 2012 survey. Almost 70% of residents gave a ‘high’ satisfaction rating (7-10) and 28% a medium rating (4-6), while only 2.5% provided a ‘low’ satisfaction score (0-3). Residents aged between18-24 and 65+ are more likely to be highly satisfied with Council’s overall performance compared to those aged between 24 and 65 years. Residents living in rural areas were the least satisfied, which is a common trend amongst Council areas that have both urban and rural characteristics.

When compared with other metropolitan Councils that have been surveyed by IRIS, Penrith City Council is performing significantly above comparable councils. Overall satisfaction with Council’s performance and overall satisfaction with Council performance compared with other councils is graphed over the page.

Overall satisfaction with Council’s performance

(% of residents rating ‘medium’ to’ high’ satisfaction in the City-wide telephone survey)

Overall Satisfaction with Council ~ performance comparison with other councils

2. Staff Performance

To gauge Council’s overall customer service performance, survey respondents who had contact with Council staff within the last 12 months were asked to rate their level of satisfaction. Only 11.7% of residents who had contact with Council staff in 2012 rated staff performance as ‘low’ (0, 1, 2 or3 out of 10). This is slightly better than the 13% recorded in 2011.

Overall, 80.2% of residents were satisfied with the performance of Council staff compared to 15.7% that were dissatisfied (that is, a score less than 5). This provided a high level ‘mean’ satisfaction rating of 7.31, up from the 7.11 recorded in 2011.

3. Value for Money

The survey asked residents to rate their level of satisfaction with the value they feel they are receiving from their rates. A score of ‘0’represents very poor value and ‘10’ represents very good value for money. The results are detailed in the graph below.

The results show that Council continues to deliver good value for rates, with mean scores steady from 5.95 in 2003 to 6.08 in 2012 (there was a spike in the results in 2009). The survey showed that 57.5% of residents are ‘satisfied’ in this area, with 16.7% dissatisfied. Residents living in the established areas reported the highest satisfaction with the services they received for their rates, while the rural areas reported the least satisfaction with 13.5% of respondents scoring value for rates as ‘low’. In general, these results indicate that the majority of residents consider the rates charged by Council are commensurate with the services or facilities they receive.

4. Resident Prioritisation of Council Services and Facilities

Residents were asked to rate the importance and their satisfaction with 40 services and facilities that are provided by Penrith City Council. The responses for each are summarised below.

· In terms of ‘importance’, when compared to the 2011 survey, this year’s survey shows that our residents are placing a higher level of priority on the safety and condition of local roads; supporting and encouraging local industry and jobs; traffic flow; provision of parking; provision and condition of parks, playgrounds and reserves; Council speaking to other levels of government, business and community groups; litter control and street cleaning; maintaining public drains; condition of public spaces; graffiti removal; condition of footpaths; domestic animal control; and provision of Council building and neighbourhood facilities (Table 3-9 in the Community Survey 2012).

· In terms of ‘satisfaction’ our residents reported a higher level of satisfaction with food safety and hygiene in local restaurants; and domestic garbage collection. In contrast, community satisfaction fell for the condition of local roads (Table 3-18 in the Community Survey 2012).

The survey also provides an in-depth analysis by combining the survey results for both ‘importance’ and ‘satisfaction’. This indicates areas of ‘priority’ on which Council could focus, by identifying the services where residents place a high level of importance, but are not satisfied with the level of service provided.

· The combined analysis of importance and satisfaction ratings identified that the community felt Council should focus on improving its performance in providing better local roads (condition and safety); maintaining public drains; improving traffic flow; provision and cleanliness of public toilets; graffiti removal; provision of parking; speaking to other levels of government; balancing growth of our City; supporting and encouraging local industry and jobs; provision of services and facilities for older people; provision of services and facilities for youth; and improving the health of the Nepean River (Quadrant 2 in the following table).

· The combined analysis of importance and satisfaction ratings demonstrates that Council’s strengths are in providing and maintaining parks, playgrounds and reserves; the condition of public spaces and sporting fields; domestic garbage collection and recycling services; litter control and street cleaning; provision of street and public space lighting; food safety and hygiene in local eateries and restaurants; and protection of bushland, natural environment and wildlife. (Quadrant 1 in the following table).

The following table shows the Opportunity Matrix, which compares the satisfaction scores against the importance scores for each of the 40 questions about Council’s services and facilities. More attention needs to be given to Quadrant 2, which represents Higher Importance & Lower Satisfaction.

Quadrant (Matrix) Analysis for Council Services and Facilities

[Legend: NC = No change from 2011; ¬ ¯ ® = Movement in Quadrant from 2011 Survey]

§ Indicates need for more immediate attention.

· Maintaining public drains (¬)

· Ease of traffic flow (new)

· Safety of local roads (¬)

· Provision of public toilets (á)

· Cleanliness and condition of public toilets (NC)

· Graffiti removal (NC)

· Provision of parking (NC)

· Council speaking to other levels of government (NC)

· Balancing growth or our City (¬)

· Supporting and encouraging local industry and jobs (¬)

· Provision of services and facilities for older people(¬)

· Provision of services and facilities for youth (NC)

· Health of the Nepean River and creeks (NC)

§ Not an issue for majority of population (ie minority user groups only)

§ Not considered a problem at the moment but may need investigation

· Provision of cycleways (NC)

· Provision of bus shelters (NC)

· Condition of footpaths (NC)

· Condition of cycleways (NC)

· Condition of bus shelters (NC)

· Building construction and development application service (NC)

Ü Low Importance High Þ

Quadrant 2

HIGHER IMPORTANCE

LOWER SATISFACTION

Quadrant 1

HIGHER IMPORTANCE

HIGHER SATISFACTION

§ Denotes services where satisfaction should be improved as areas not delivering expected value.

§ Represents current Council strengths

§ Areas are working well and delivering high value

§ Models for other Services to capitalise on.

· Condition of local roads (NC)

· Provision of parks, playgrounds and reserves (NC)

· Condition of parks, playgrounds and reserves (NC)

· Condition of public spaces (NC)

· Condition of sporting fields (NC)

· Domestic garbage collection and other recycling services (NC)

· Litter control and street cleaning (NC)

· Provision of street and public space lighting (à)

· Food safety and hygiene in local eateries and restaurants (NC)

· Protection of bushland, natural environment and wildlife (NC)

Quadrant 3

LOWER IMPORTANCE

LOWER SATISFACTION

Quadrant 4

LOWER IMPORTANCE

HIGHER SATISFACTION

§ Represents lower priority services

§ Indicates doing an excellent job for those users who are interested

§ Often interpreted as representing services where effort exceeds expectations.

· Provision of footpaths (NC)

· Provision of council buildings (NC)

· Condition of council buildings (NC)

· Condition of cemeteries (NC)

· Provision of sporting fields (NC)

· Condition of public pools & leisure centres (NC)

· Domestic animal control (NC)

· Promoting the City (NC)

· Provision of information from Council (NC)

· Provision of library services (NC)

· Provision of children’s services (¯)

Ü Low Satisfaction High Þ

5. Communication

Residents were asked how they obtained information or updates on Council activities. Generally, residents indicated they receive information about Council activities from the Penrith Press (23.9%), Council website (23.5%, an increase from 17.2% in 2011) and the Western Weekender (12.0%). The proportion of residents reportedly using social media, such as Twitter and Facebook as their main source of information remains currently small at 1.2%.

6. Community Well Being

Section 4 of the report outlines a number of key indicators of wellbeing that were measured in the survey. This is a new part of the Community Survey which provides useful data in determining resident perceptions about Penrith as a place to live, work and travel around. The results also provide information for the indicators in the Community Strategic Plan, Council’s Delivery Program and the Annual Report. Responses to these 27 questions are outlined below.

Resident satisfaction with lifestyle

Residents were questioned on various aspects of living in the City, including satisfaction with their lifestyle and overall well being. Of the well being aspects measured, ‘I am actively involved in community organisations such as voluntary work’ was the lowest ranking statement.

Our residents report a high level of satisfaction with access to the City’s parks, playgrounds and reserves, and access to the City’s public spaces. Medium satisfaction ratings were provided for ‘the safety of the City’s public space’, ‘the ability to move in and around Penrith using all modes of transport’, and the ‘safety of parks, playgrounds and reserves’ in the area.

Penrith City residents believe they are well equipped with knowledge on how to live a healthy lifestyle, and they place a high value on the City’s natural settings, rural landscapes and built heritage. They are also proud of where they live and felt safe in their neighbourhoods.

Public transport use

One in five residents aged 18 years and above said that they use public transport to travel to school or work. One in ten (10.5%) residents indicated that they walk or cycle to work. These percentages were similar to those recorded in 2011. Residents aged 18-24 years were significantly more likely than other age groups to use public transport and walk or cycle when travelling to school or work.

Participation in sporting and recreational activities

Almost half of the residents indicated that they participate in informal passive recreation, such as walking, a picnic in the park or fishing. Around one third participate in informal active recreation, such as ball games in the park, jogging, swimming or attending the gym. Almost 30% of respondents said that they participate in organised sport.

Participation in or attendance at cultural activities and events

Festivals are attended by around six in every ten (61.9%) residents, with over half going to concerts. The next most popular cultural activity was the theatre, with 40% of residents stating that they attend. The regional gallery and art exhibitions are attended by approximately 25% of Penrith residents.

Access to the internet

The majority of residents (87.7%) felt that they have adequate access to the internet. Residents living in a rural area were less likely to feel that they have adequate access to internet than residents from established or new release areas.

Civic engagement

Residents were asked to provide feedback in relation to Council’s civic engagement activities. Council achieved a ‘medium’ result, with the highest score achieved for ‘Penrith Council provides opportunities for residents to participate in planning and having a say about the City’s future’ (50.6%). Our communities perceived that Council could improve its performance in getting things done, the effectiveness of its communication and understanding better the needs and expectations of residents.

Conclusion

The survey results continue to provide useful information on resident perceptions and satisfaction regarding Council services and facilities. As supporting information for the Community Strategic Plan, Council’s Delivery Program and Operational Plan, the survey assists in considering short and long term priority setting, resource allocations and potential service adjustments and enhancements. The satisfaction ratings are a useful performance monitoring tool, and are included in service specifications.

Council has, in general, been able to maintain a consistently high level of satisfaction in 2012 compared with the 2011 resident survey, particularly in the overall performance of Council’s service and facilities (in comparison with other councils) and the overall performance of Council’s staff. Results also continue to show that our residents perceive they are getting value from the amount of rates charged by Council.

The results generally validate the approach taken by Council in addressing the areas of relatively low satisfaction, through the successful Special Rate Variation (SRV). Future resident surveys will continue to monitor the effectiveness of these approaches and Council’s performance. The surveys will also continue to inform Council regarding priorities, and assist in our focus on continuous improvement and benchmarking.

RECOMMENDATION

That the information contained in the report on Penrith City Council Community Survey 2012 be received.

ATTACHMENTS/APPENDICES

1. View

Community Survey

103 Pages

Attachment

Policy Review Committee Meeting 8 October 2012

A Leading City

Planning Proposal - Land at 1-4 Old Bathurst Road, Emu Plains

Compiled by: Paul Grimson, Sustainability & Planning Manager

Authorised by: Paul Grimson, Sustainability & Planning Manager

Objective	We plan responsibly for now and the future
Community Outcome	A Council that plans responsibly for a sustainable future (3)
Strategic Response	Build our City's future on the principles of sustainability (3.1)

Procedural note: Section 375A of the Local Government Act 1993 requires that a division be called in relation to this matter.

Executive Summary

This report presents the outcomes of two separate independent assessments undertaken in relation to the proposed rezoning of land at 1-4 Old Bathurst Road, Emu Plains (Lots 1-2, DP 517958 and Lots 3-4 DP 574650) (the Site) and recommends a process for moving this matter forward. The location of the Site is indicated in Figure 1 of the Department of Planning and Infrastructure’s (the Department) September 2012 Evaluation Report (Attachment 1).

The proponents of the rezoning are seeking the application of an IN2 Light Industrial zone to approximately 18 hectares of the Site, along with a minimum lot size for subdivision of 2000m² and a maximum height of building of 12 metres. The remainder of the Site is proposed to be zoned E3 Environmental Management. The extent of the requested zones is provided in Figure 3 Proposed Land Zoning Map of the September 2011 Planning Proposal prepared by Cityscape Planning and Projects (included within the Department’s September 2012 Evaluation Report (Attachment 1)).

While a part of the Site (1.1 hectares) was zoned IN2 Light Industrial in September 2010, the remainder of the Site was deferred from Stage 1 of the City-wide Local Environmental Plan (the City-wide Plan), since published as Penrith Local Environmental Plan 2010, to allow for further evaluation of flooding matters.

The presentation of the requested rezoning to Council has been prompted by the Director General’s 25 September 2012 advice, provided in response to a request for an independent evaluation. The Department’s advice concludes that “there is sufficient strategic justification to demonstrate the land is suitable for future industrial uses subject to future planning studies (including a review of flooding) and the proposal should proceed to the Gateway to consider future industrial uses for the Site”.

Background

In February 2006, Council received an application for the rezoning of the Site to 4(a) General Industrial under Penrith Local Environmental Plan 1996 (Industrial Lands). Before the application was formally reported to Council it was withdrawn by the applicants in response to a resolution made by Council in the adoption of its Employment Planning Strategy (March 2007), to rezone the Site to 4(a) General Industrial in Stage 1 of the City-wide Plan.

The preparation of Stage 1 of the City-wide Plan included an analysis of the planning and environmental constraints affecting the Site and an assessment of the proposed zone under the Minister of Planning and Infrastructure’s statutory directions for local environmental plan making and amending. That assessment recommended that the part of the Site (1.1 hectares) above the flood planning level (as identified at that time) be zoned IN1 General Industrial.

The IN1 General Industrial zone was introduced by the New South Wales Government’s Standard Instrument Template for Local Environmental Plans and is considered the equivalent of the 4(a) General Industrial zone.

In considering the submissions received during the public exhibition of Stage 1 of the City-wide Plan Council resolved, in 2009, to amend the exhibited IN1 General Industrial zone to an IN2 Light Industrial zone in response to community concerns regarding the potential impacts of industrial development on the amenity of the neighbouring residential area. The extent of the zoning remained the same as that which was exhibited, namely, on land above the flood planning level (as identified at that time). Council also resolved that the land below the flood planning level be deferred to Stage 2 of the City-wide Plan with the flood planning level for the property to be determined by a flood study.

The preparation of Stage 2 of the City-wide Plan commenced in 2010 and to date has included a number of Councillor Briefings on the matters that need to be resolved to progress Stage 2 of the City-wide Plan, including the implementation of Council’s 2009 resolution concerning the Site. At the briefing on the matters that needed to be considered to implement the 2009 resolution, a number of Councillors raised concerns about the process to date and if the proposal was being dealt with objectively.

In light of these concerns, the General Manager sought an independent evaluation of the rezoning proposal by the Minister for Planning and Infrastructure. On 30 July 2011, the Minister referred the requested rezoning to the Joint Regional Planning Panel (JRPP). On 22 March 2012, the JRPP provided its report for Council’s consideration concluding that:

A. There is a significant supply of vacant employment land in Penrith LGA. This land has been through all of the assessments associated with rezoning and appears to be largely free of significant constraints, in contrast to the flood affectation of the subject site; and

B. At the present time uncertainties exist in relation to the environmental impacts of proposed flood mitigation works, on-going maintenance responsibilities and costs, and the consistency of the proposed development with floodplain management policies. Thus, the panel considers that any rezoning now would be premature and inappropriate.

Thus, the Panel sees no reason to give priority to the rezoning of the subject site in the near term.

Attachment 2 provides a copy of the JRPP’s 22 March 2012 report.

Upon receipt of the JRPP’s 22 March 2012 report, advice was sought from the Director General of the Department seeking clarification of the status of the JRPP’s advice and whether a view is to be expressed by the Minister of Planning and Infrastructure in relation to the requested rezoning. On the 25 September 2012, the Department provided an Independent Evaluation Report (the Report), recommending that Council:

A. Note that the Evaluation Report concludes there is sufficient strategic justification to demonstrate the land is suitable for future industrial uses subject to future planning studies (including a review of flooding) and the proposal should proceed to the Gateway to consider future industrial uses for the Site; and

B. Consider the findings of the Evaluation Report as part of any submission to the Gateway, should Council resolve to progress a planning proposal, which would seek to rezone the site for industrial purposes.

The Department’s Report also identified that flooding issues are a fundamental consideration in any proposed rezoning of the Site and recommended that a review of these issues should be considered as part of any future rezoning process. The Report included some suggested ‘terms of reference’ that could form the basis of the brief for an independent review of flooding issues.

Attachment 1 provides a full copy of the Department’s Independent Evaluation Report.

Next Steps

The preparation of a planning proposal is the first step in preparing or amending a local environmental plan and is a document that explains the intended effect of a proposed local environmental plan (or an amendment to an existing local environmental plan) and sets out the justification for making that plan (or amendment). Planning proposals must also be technically competent and founded on an accurate assessment of the likely impacts of the proposal and supported where necessary by technical studies and investigations.

Throughout the course of preparing the proposed local environmental plan (or an amendment to an existing local environmental plan), the planning proposal evolves. This is particularly the case for complex proposals in which the initial ‘gateway determination’ will confirm the technical studies and consultation required to justify the proposal. As the studies and consultation are undertaken, relevant parts of the planning proposal will be updated, amended and supplemented.

The Gateway process is a statutory process established under the Environmental Planning and Assessment Act 1979 governing the preparation of new or amended local environmental plans. The Gateway process allows a planning proposal to be reviewed at an early stage to make a decision on whether it should proceed further. After reviewing a proposal, the Minister for Planning and Infrastructure issues a ‘Gateway Determination’ which identifies:

· Whether a planning proposal will proceed, with or without variation;

· The level of community consultation required;

· Which Commonwealth, State and local government authorities need to be consulted;

· The necessity for a public hearing by the Planning Assessment Commission or other body; and

· The appropriate timeframes for the remaining stages of the gateway process.

To assist in the Department’s recent independent evaluation, the proponents for the rezoning of the Site engaged a planning consultant to prepare a Planning Proposal (the Proposal) that builds on their original 2006 rezoning application. The Proposal describes the proposed zones for the site, namely the IN2 Light Industrial and E3 Environmental Management zones, along with proposed controls for subdivision and the maximum height of buildings. The extent of the requested zones is provided in Figure 3 Proposed Land Zoning Map of the September 2011 Planning Proposal prepared by Cityscape Planning and Projects (included in the Department’s September 2012 Evaluation Report (Attachment 1)).

Subject to Council’s resolution and some minor refinements of the Proposal to meet contemporary local environmental plan making requirements, the Proposal now needs to be submitted to the Department’s ‘Gateway’ for a determination.

In addition, and in light of the Department’s recommendation that an independent review of flooding matters be undertaken, the submission of the Proposal to the Gateway will also seek confirmation of the ‘terms of reference’ for such a review. The terms of reference will be jointly prepared with the proponent and, subject to the Gateway’s confirmation of the terms of reference, it is intended that the selection of and funding of an engineering consultant will also be jointly undertaken.

The Department will also determine whether any proposed rezoning progresses as part of Stage 2 of the City-wide Plan or as a stand alone local environmental plan amendment. It is likely, given the Minister’s instruction that Stage 2 of the City-wide Plan must be completed by mid 2013 and the time required to complete the recommended independent review of flooding matters, that any rezoning of the Site will be progressed in parallel to Stage 2 of the City-wide Plan.

Conclusion

In response to the Department’s recent advice, it is recommended that:

A. The Proposal, the original rezoning application (2006) and supporting documentation be forwarded to the Department’s Gateway seeking its determination;

B. The Department be requested, in its Gateway Determination, to confirm the terms of reference for an independent review of flooding matters and any other specific further investigations required under Section 56 of the Environmental Planning and Assessment Act 1979.

C. Once terms of reference for the independent review of flooding matters have been confirmed, the engagement of a suitably qualified consultant for an independent review of flooding matters be agreed with the proponents.

RECOMMENDATION

That:

1. The information contained in the report on Planning Proposal - Land at 1-4 Old Bathurst Road, Emu Plains be received.

2. In accordance with Sections 55 and 56 of the Environmental Planning and Assessment Act 1979, that the Planning Proposal prepared by Cityscape Planning and Projects dated September 2011, the original rezoning application dated February 2006 and supporting documentation, and the Department of Planning and Infrastructure’s 25 September 2012 Evaluation Report be forwarded to the Department of Planning and Infrastructure seeking a Gateway Determination.

3. The Department of Planning and Infrastructure be requested to include in its Gateway Determination confirmation of the terms of reference for an independent review of flooding matters and any other specific further investigations required under Section 56 of the Environmental Planning and Assessment Act 1979.

4. The engagement of a suitably qualified consultant be agreed between Council and the proponent to conduct an independent review of flooding matters based on the terms of reference confirmed by the Department of Planning and Infrastructure’s Gateway Determination.

5. Council officers be authorised to request the proponents to make any minor amendments to the Planning Proposal necessary to meet the Department of Planning and Infrastructure’s guidelines for the content and format for Planning Proposals.

ATTACHMENTS/APPENDICES

1. View	Department of Planning and Infrastructure Evaluation Report	171 Pages	Attachment
2. View	Joint Regional Planning Panel Report	30 Pages	Attachment

Policy Review Committee Meeting 8 October 2012

A City of Opportunities

Penrith Business Alliance Limited (PBA) 2012-2013 Business Plan

Compiled by: Paul Battersby, Senior Environmental Planner

Authorised by: Paul Grimson, Sustainability & Planning Manager

Objective	We have access to what we need
Community Outcome	A City with a strong local economy and access to jobs (6)
Strategic Response	Facilitate a diverse economy, sustainable businesses and secure employment base (6.1)

Presenters: Paul Brennan, Chairman and Bijai Kumar, Chief Executive Officer of PBA: PBA 2012 – 2013 Business Plan

Executive Summary

Council’s vision for Penrith is one of a sustainable and prosperous region with a harmony of urban and rural qualities. Continued and sustainable economic growth is a key component in the delivery of this vision. The Penrith Business Alliance Limited (PBA) is funded by Council to meet this challenge for the City.

The PBA Business Plans focus on the strategic imperatives required to attract investment and employment opportunities, and promote the growth of Penrith as a Regional City. The Plans identify specific actions to achieve the strategic imperatives. This report overviews the PBA’s key achievements over the past 12 months, and recommends that Council agree to the 2012-2013 Business Plan and provide funding in accordance with the Deed of Agreement.

A copy of the PBA’s 2012-2013 Business Plan, the draft Financial Report (prepared by PBA’s auditor) for the 2011-2012 financial year and the covering letter from the PBA, requesting funding in accordance with the Deed of Agreement are attached for the information of Councillors. The draft Financial Report will be presented for adoption to the Annual General Meeting of the PBA Board on 28 October 2012.

Paul Brennan, Chairman and Bijai Kumar, Chief Executive Officer of the PBA will present the Alliance’s 2012-2013 Business Plan.

Background

The PBA was established in 2009, following a review of options available to Council to deliver citywide economic development and employment services. The PBA is guided by a Board formed with broad representation from a range of key employment and development sectors. Council’s representatives on the Board are the Mayor, Councillor Mark Davies, Councillor Jim Aitken OAM, and Craig Butler, Director.

The PBA mission is “To promote sustainable economic growth for Penrith as a Regional City through innovation, strategic alliances, enterprise development and investment attraction.” The PBA is funded from:

1. A transfer of funds previously allocated to Council’s Economic Development Department,

2. A special rate targeted at economic development, and

3. Future developer contributions.

In this current financial year (2012-2013), the first two items total $487,260 (excluding GST). An employment contribution of $211,605 was also paid to the PBA, via Council, from developers through the Glenmore Park Stage 2 Voluntary Planning Agreement (VPA).

The Deed of Agreement broadly outlines the ‘deliverables’ the PBA is funded to achieve, with a particular focus on the creation of 40,000 jobs by 2031. The Deed, between Council and the PBA, requires submission to and agreement by Council to the PBA’s annual Business Plan. The Deed makes provision for half of the funding ($243,630) to be paid when Council endorses the Business Plan, with the balance paid in 6 months.

The Deed of Agreement also requires the PBA to report its performance against the annual Business Plan to be reported to Council, in support of the request for funding.

Performance in 2011-2012

The Deed of Agreement with Council requires the PBA to prepare an annual Business Plan identifying its strategic directions, programs, projects, initiatives, performance measures and budget that will promote and lead to achieving jobs in the City.

The 2011 – 2012 Business Plan focused on addressing the following six strategic issues:

· Construction of Erskine Business Park Link Road;

· Penrith Health and Education Precinct (based on Council’s planning framework for the Werrington Enterprise, Learning and Living precinct);

· Penrith CBD Revitalisation (based on Council’s Penrith City Centre Strategy);

· Western Sydney Employment Lands Investigation Area (WSELIA);

· Penrith Lakes;

· Other key activities mainly Enterprise Development and International Relations.

The CEO of the PBA, Bijai Kumar, has advised that objectives of the 2011-2012 Business Plan have been largely achieved. The key outcomes are discussed under each focus area in the attached PBA report. In summary, the PBA’s key achievements for 2011-2012 are:

Specific Activities 2011-2012	Status	CEO Comments
1. Erskine Park Link Road	ü	The Erskine Park Link Road is under construction and is expected to be completed by mid 2013. Completion of the road will provide direct access to the arterial road network and facilitate development of the estate.
2. Penrith Health and Education Precinct Strategic Vision Potential to deliver 12,000 – 13,000 new jobs	ü	The Strategic Vision for the Penrith Health and Education Precinct was completed, in partnership with the State Government in February 2011. To implement the Strategic Vision a number of projects have commenced, including establishing the Precinct Development Advisory Group; seeking State Government preparation of a growth Infrastructure Plan for the Precinct; receipt by UWS of $13.5million Federal funding towards the establishment of Werrington Business Park; and development of a funding and operational strategy for the establishment of the Nepean Medical Research Institute.
3. Penrith CBD Revitalisation Potential to deliver 10,000 new jobs	ü	Engagement of Kerr Partnering to design a process for the progressive revitalisation of the Penrith CBD, called The Penrith Progression. A Governance Framework, Business Case, Communications Plan and a Stakeholder Management Plan are currently being prepared.
4. Western Sydney Employment Area (WSEA) Potential to deliver 40,000 new jobs	ü	In 2012 the PBA commissioned, and extensively advocated with Government and industry, a report of the “economic costs of inaction” of not expanding the WSEA. The Department of Planning and Infrastructure is now preparing a Structure Plan for an expanded WSEA. Council is represented on the Steering Group and the PBA will participate in the Industry Reference Group overviewing the project.
5. Submissions	ü	The PBA has made the following additional submissions: · NSW Parliamentary Committee on Economic Development relating to the establishment of special economic zones. The Chairman and CEO were invited to give evidence to the Committee. · New Metropolitan Strategy- focusing on job creation and establishment of a Development Authority. · Infrastructure NSW- identifying regional and local infrastructure priorities. · Department of Planning advocating Penrith CBD as a project under the State Government’s Urban Activation Precinct Program.
6. Enterprise Development	ü	The PBA has partnered: · Penrith Business Enterprise Centre (BEC) and the Nepean Community College in attracting $297,000 in NBN funding to conduct a series of Winning Business On-Line workshops. · Council in a survey of Dunheved businesses to determine their needs for further growth and development.
7. International Engagement	ü	The PBA organized: · A business delegation to the inaugural 2012 China International Import Expo hosted in Kunshan to promote foreign businesses in China. · An MOU between the PBA and the Gangseo Chapter of the Seoul Chamber of Commerce and Industry to promote B2B relations and investment opportunities · An MOU between Kunshan Hospital No1 and the Nepean Hospital to promote staff exchanges and explore collaborative research opportunities.

Penrith Business Alliance 2012-2013 Business Plan

According to PBA research, the professional services, health and wellbeing, advanced manufacturing, and transport and logistics sectors will be best placed to contribute towards the creation of 40,000 new jobs in Penrith City by 2031. An expanded Western Sydney Employment Area has the potential to deliver 40,000 new jobs. However, delivery of that quantum of jobs will extend beyond the 2031 horizon.

In Penrith, the largest creator of new jobs over the next 20 years is expected to come from the health and wellness industry, including some 13,000 estimated jobs with the development of the Penrith Health and Education precinct. The Professional/Business Services industry is also expected to play a growing role in contributing to the creation of new jobs in Penrith.

A focus for this type of employment is expected to occur in the Penrith City Centre with PBA studies indicating that the current target of 11,000 new jobs in the centre can be accommodated. This jobs target also includes non professional services employment in the Centre, such as retail.

The 2012 – 2013 Business Plan focuses on 8 areas:

1. Penrith Health and Education Precinct

Advancing:

· UWS Werrington Park - and business growth opportunities arising from the Suburban Jobs Program application

· Provision of state infrastructure services for the precinct with the NSW Department of Planning & Infrastructure and related agencies

· Planning for the Medical Research Institute building

· Commercial medical employment opportunities surrounding the Hospital campus

· Investment in the Kingswood town centre

2. CBD revitalisation

· Working with the NSW Government to:

o attract employment and housing investment in Penrith City Centre

o develop and pilot innovative infrastructure financing options such as Tax Incremental Financing

· Attracting a major government department to the City Centre

· Implementing the Penrith Progression

3. Western Sydney Employment Area Expansion

· Participating in the preparation of a Structure Plan for expanding WSEA through the Department of Planning and Infrastructure Industry Reference Group

4. Penrith Lakes

· The PBA will propose that they have a similar role in this project as for the partnership with UWS to develop the proposed business park at Werrington.

5. Business development and relocation

· Working with the Department of Industry and Investment, Regional Development Australia (RDA) and WSROC to promote opportunities around key initiatives such as the Penrith Health and Education Precinct and the Penrith CBD.

6. Advocacy / marketing

· Developing an advocacy program for the 2013 Federal Election

· Seeking the establishment of a National Disability Insurance Scheme trial in Penrith/Western Sydney

· The employment and investment projects outlined above

· The city centres in association with the Penrith City and St Marys Town Centre Associations

7. Enterprise development and business innovation

· Continued partnerships with UWS, Western Sydney Institute of TAFE and the Penrith Business Enterprise Centre to take advantage of emerging opportunities such as the NBN rollout

· Participate in the development of Penrith’s Digital Economy Strategy commissioned by Council

· Partnering RDA Sydney and the NSW Government to explore the opportunities for developing industry clusters

· Supporting Council and the Chamber in promoting the Dunheved Business Park.

8. International relations

· The focus will be largely on the upcoming Expo in Kunshan, China in May 2013 and in the promotion of a number of development opportunities in the City

· Strengthen the relationship with the Gangseo Chapter of the Seoul Chamber of Commerce and Industry, the Kunshan Bureau of Commerce and the Kunshan Federation of Industry and Commerce to encourage investment opportunities

Conclusion

This Council has had a long standing commitment to increasing the proportion, diversity and sustainability of local jobs. This emerged from the appreciation that the city had lost ground in terms of its local jobs self-sufficiency. Today, as many as 52,000 local workers commute outside the city on a daily basis for work. This is repeated across the high growth areas of Western Sydney. This represents a lost opportunity for the local, state and national economies as the time spent commuting impacts upon productivity.

It is apparent that much work still remains for Council, the PBA and others if the adverse jobs self-sufficiency gap between western and eastern Sydney is to be closed.

An independent analysis undertaken in 2006 indicates that there was a shortfall of 182,000 jobs in Western Sydney in 2006. Current metropolitan planning will see this shortfall reach 290,000 by 2036. This will increase the number of commuters to the east by 100,000 every peak hour compared to today which will only exacerbate congestion and public transport difficulties across Sydney.

Council in association with the PBA and other stakeholders such as the National Growth Areas Alliance, NSW Property Council, Urban Taskforce and the UDIA must continue to press this dilemma with the State and Federal Governments. Initiatives such as:

· Expanding WSEA,

· Investing in the development of regional cities such as Penrith,

· Providing the infrastructure necessary to develop the Penrith Health and Education Precinct,

· Delivering the Penrith Lakes Scheme and

· Improving cross regional transport connections

are integral to improving the employment circumstances in the City. Co-ordinated stakeholder advocacy would assist achievement of these outcomes and we are currently working with our partners to identify and promote our common goals.

Successive PBA Business Plans have identified the strategic imperatives required to attract investment and employment opportunities to the City, and focussed on implementing a number of agreed initiatives. The 2012-2013 Business Plan identifies the key directions for the organisation over this current year.

The attached PBA report demonstrates that the specific activities in the 2011-2012 Business Plan have been substantially achieved, though some of them are long term or multi-year activities. The 2012-2013 Business Plan appropriately reflects the functions that are defined for the PBA through the Deed of Agreement.

Accordingly, it is recommended that Council endorse the Penrith Business Alliance 2012-2013 Business Plan and provide funding in accordance with the provisions of the Deed of Agreement.

RECOMMENDATION

That:

1. The information contained in the report on Penrith Business Alliance Limited (PBA) 2012-2013 Business Plan be received.

2. Council agree to the PBA Business Plan for 2012-2013, and provide funding through two separate six-monthly payments of $243,630 (plus GST) in accordance with the provisions of the Deed of Agreement.

ATTACHMENTS/APPENDICES

1. View	Letter from PBA requesting funding	1 Page	Attachment
2. View	PBA Business Plan 2012 - 2013	25 Pages	Attachment
3. View	Draft Financial Report for 2011-2012 financial year	21 Pages	Attachment

Policy Review Committee Meeting 8 October 2012

Attachment 2 - PBA Business Plan 2012 - 2013

PENRITH BUSINESS ALLIANCE

BUSINESS PLAN FOR THE 2012-2013 FINANCIAL YEAR

PRESENTED TO

PENRITH CITY COUNCIL POLICY REVIEW COMMITTEE MEETING

8 October 2012

PENRITH BUSINESS ALLIANCE

BUSINESS PLAN REVIEW AND FUTURE ACTIVITIES

PBA Mission

To promote sustainable economic growth for Penrith as a Regional City through innovation, strategic alliances, enterprise development and investment attraction

The Deed of Agreement between Council and the Penrith Business Alliance’s (PBA) outlines the PBA’s key roles and responsibilities, reporting requirements and funding arrangements and requires the PBA to present its annual Business Plan to Council. The report provides a performance review for the 2011-12 financial year and outlines our key initiatives for the following year in the context of the job creation challenge that we face as a regional city. The proposed Business Plan and Budget was approved by the PBA Board at its meeting held in June 2012. A copy of audited financial reports for 2011-12 to be considered by the Board at the next AGM on 30 October is also provided with this report.

This Report is provided in two parts:

· 2011-12 Performance Review

· Budget and Business Plan for 2012-13

2011-12 Performance Review

The PBA’s activities were focused on addressing the following six strategic issues which the Board views as most critical in restructuring the local economy and creating sustainable employment opportunities in Penrith Regional City:

· Construction of Erskine Business Park Link Road;

· Penrith Health and Education Precinct (based on Council’s planning framework for the Werrington Enterprise, Learning and Living precinct);

· Penrith CBD Revitalisation (based on Council’s Penrith City Centre Strategy);

· Western Sydney Employment Lands Investigation Area (WSELIA);

· Penrith Lakes;

· Other key activities such as Enterprise Development, Council activities and International Relations.

However before looking at the key outcomes it is important to set the context for economic growth and job creation that we face as a Regional City.

The key performance indicator of the PBA is jobs growth in the local economy. A target of 40,000 additional jobs in Penrith has been set to be achieved by 2031. The creation of 40,000 new jobs in Penrith by 2031 represents more than a 75% increase in the total number of local jobs compared to 2006. This is an ambitious target.

To achieve this target will require significant restructure of the current economic base. Such a restructure will require a major interventionist approach to industry development and investment attraction. This approach has been espoused by Professor Phil O’Neill in his analysis relating to the proposed Penrith Valley Economic Corridor where he has stated that:

“as well as the ongoing nurturing of the region’s traditional manufacturing base, there needs to be a diversification of economic activity involving the growth of sectors that build concentrations of career-based, high skill, high value added employment. Such diversification and integration requires that deliberate spatial strategies be developed, committed to, and implemented enthusiastically and determinedly over time.”

Following is the PBA’s estimated job targets by industry through to 2031. Estimates are based on a range of studies conducted by the PBA, along with estimates provided by data collection agencies, and estimates from methodologies developed by the PBA. Underpinning some of these estimates is the assumption that PBA’s interventionist strategies will be effective in creating an environment where new business will grow, where skilled workers will be attracted, and new levels of investment will flow to Penrith over the next 10-20 years.

New Jobs by Industry in 2031

Industry	Job stock 2006	New Job growth by 2031	Total job stock 2031
Mining	166	50	216
Agriculture Forestry Fishing	496	100	596
Electricity, gas & water supply	477	400	877
Cultural & recreational services	930	500	1,430
Accommodation, cafes & restaurants	2,511	800	3,311
Personal & other services	2,405	1,000	3,405
Communication services	593	1,000	1,593
Government administration & defence	3,069	1,500	4,569
Retail trade	10,089	2,000	12,089
Construction	3,491	2,000	5,491
Transport & storage	1,935	2,000	3,935
Wholesale trade	2,074	2,000	4,074
Finance & insurance	1,083	2,000	3,083
Manufacturing	6,440	2,200	8,640
Education	5,475	2,200	7,675
Property & business services	3,642	8,000	11,642
Health & community services~	6,962	13,000	19,962
	51,838	40,750	92,588

Jobs by Industry in 2031

We believe that Professional Services, Health and Wellbeing, Advanced Manufacturing and the Transport and Logistics industries have the best opportunities in contributing towards the creation of 40,000 new jobs in Penrith by 2031. However, it should be noted that industrial estates such as Erskine Business Park which are attracting high profile warehousing and distribution companies, are achieving very low job densities, currently some 12-15 jobs per hectare. In contrast the job numbers for business parks such as Norwest are dramatically higher.

In line with national trends, the largest creator of new jobs in Penrith over the next 20 years is expected to come from the health and wellness industry. With the emergence of an ageing population and the prevalence of chronic disease, along with Penrith’s strategic position within a regional population estimated to reach 1 million people, Penrith will become the natural centre for direct health care, allied health services and related care. As suggested in various PBA studies and other research, these trends in combination with the development of a world class health and education precinct suggest that up to 13,000 new jobs could be created in local health and wellness by 2031. This would represent one third of the employment target set for Penrith.

The Professional/ Business Services industry is also expected to play a growing role in contributing to the creation of new jobs in Penrith. A focus for this type of employment is expected to occur in the Penrith CBD with PBA studies indicating that the current target of 11,000 new jobs in the centre can be accommodated. This jobs target also includes non professional services employment in the Centre, such as retail.

The “Existing Local Jobs Deficit” Table below shows that except for the Education sector which has 360 more jobs then resident workers, all other sectors have a deficit, that is Penrith has more resident workers than jobs available for them. Thus in the key business services sector (including Finance and Insurance) we have a pool of 6,200 resident workers who don’t have a job locally and could potentially offer their services to businesses wishing to locate in the Penrith CBD. This represents a very powerful argument for a CBD business relocation program both for the private sector and state government agencies.

Existing local jobs deficit (2006)

	*Resident workers*	*Local Job stock*	*Local jobs deficit*
Manufacturing	10,962	6,440	-4,522
Retail trade	10,180	10,089	-91
Construction	7,862	3,491	-4,371
Health & community services	7,431	6,962	-469
Transport & storage	5,967	1,935	-4,032
Govt.admin & defence	5,870	3,069	-2,801
Education	5,115	5,475	360
Wholesale trade	4,644	2,074	-2,570
Accom, cafes & restaurants	4,615	2,511	-2,104
Finance & insurance	3,737	1,083	-2,654
Property & business services*	7,193	3,642	-3,551
Personal & other services	3,461	2,405	-1,056
Communication services	1,339	593	-746
Electricity, gas & water supply	1,127	477	-650
Cultural & recreational services	962	930	-32
Agriculture Forestry Fishing	590	496	-94
Mining	190	166	-24
In ad. described/ not stated	2,217	0	-2217
Total	83,462	51,838	-31,624

Further, sub regional employment studies conducted by the UWS Urban Research Centre concluded that almost half of all new jobs in Western Sydney need to be created in business services industries if the region is to maintain a competitive global position. In practical terms this suggests that the Centre employment target of 11,000 new jobs should, at the very least, be focused entirely on business services jobs.

Notwithstanding population driven employment growth in local sectors such as retail and construction, the remainder of the jobs challenge for Penrith will be achieved through Advanced Manufacturing and Transport & Logistics. Given the industrial settings required for these industries, employment targets will more or less be determined by either the availability of industrial land, or the ratio of labour to capital used in these industries. The PBA’s initiatives in this regard involve investment attraction to industrial precincts, or attempting to improve innovation among the local manufacturing sector.

Role of Government in achieving our objectives

The ability of the PBA to achieve its objective of 40,000 new jobs by 2036 is also dependent upon Government supporting initiatives designed by the PBA and Council.

We cannot emphasise the crucial the role of government, both state and commonwealth, in meeting our objective of job creation. It needs to be recognised that while the PBA can craft the strategies and plans that provide the rationale and justification for public investment to occur in Penrith and demonstrate community commitment through strong partnerships, initiatives that may involve tens of millions of dollars may not see the light of day without strong political leadership and support from our local Members of Parliament both state and federal. PBA’s Advocacy platform is built on the premise that community based solutions will assist in meeting the Government’s own objectives of growth and job creation.

We note that a number of important plans produced by the NSW Government (eg, NSW transport master plan, the New Metro plan, the 20 year NSW infrastructure strategy) are disappointing in terms of any clear commitment to the creation of “Jobs in the West”. Many of these recent strategies, combined with other signals from the Government, indicate a preference for NSW Government attention in the east of Sydney, particularly the ‘Global Economic Corridor’.

However, we are encouraged by the Government’s involvement and leadership in the following key strategic areas advocated by the PBA:

· Commencement of planning for Western Sydney Employment lands, the bulk of which lies in our City;

· The creation of the Office of Penrith Lakes to progress urban development at the Lakes;

· Strong engagement and support for planning for infrastructure and services for the Penrith Health and Education precinct;

· Support for activating development in the Penrith CBD.

It is vital that pressure be maintained on the Government to ensure that rhetoric is followed by allocation of real resources to get these major initiatives off the ground to create quality jobs for our residents. PBA will rely heavily on the support of Council, particularly the elected leaders to ensure the Government’s ongoing involvement and commitment. We look with great anticipation the release of job targets and plans for employment creation and growth to be announced in the soon to be released Sydney Metro Strategy.

We acknowledge the significant support provided by the Commonwealth Government in funding the first stage development of the proposed business park at Werrington. The $13.5 million grant to build a $29 million corporate centre at UWS provides a clear and positive signal to the development industry that government has confidence in the project and the consortium (PBA-UWS-Council) to deliver on vision for the project.

Key Activities 2012-12

This section outlines our key activities based on our strategic program initiatives:

· Erskine Park Link Road

The PBA took every opportunity to lobby for funding for the commencement of the Link Road and it was greatly pleasing when the new State Government announced funding soon after it took office. The four lane divided Link Road costing about $55 million is now under construction and will be completed by mid 2013.

· Penrith Health and Education Precinct (PHEP)

In 2011 we completed a Strategic Vision of the Penrith Health and Education Precinct. This Vision was requested by the then NSW Labour Government and Premier, and was prepared in partnership with several state agencies. The PBA established an expert taskforce to prepare the Vision and the taskforce included all major stakeholders in the precinct. The vision is a practical guide of all deliverable projects that will enhance investment into the precinct and contribute to achieving the Mission of:

Becoming one of Australia’s premier destinations for health, education, industry and medical research over the next 10 years

The Strategic Vision was delivered to the then NSW Premier in February 2011. Funding for this work was secured from the NSW Department of Premier and Cabinet.

So far, the following projects have been commenced as part of implementing the Strategic Vision for the Penrith Health and Education Precinct:

(i) Precinct Development Advisory Group

To implement the Strategic Vision for the Penrith Health and Education Precinct the PBA has established a “Precinct Development Advisory Group” to lead and guide the implementation of the Vision. Local businessman, Greg Allchin chairs this sub- committee of the PBA. A Charter governing the role of this subcommittee has been endorsed by the PBA Board.

(ii) Listing as a State Significant Site

In 2011 the PBA, with a support letter from Council officers, provided a submission to the NSW Minister for Planning and Infrastructure to list the Precinct as a Site of State Significance – including the preparation of the necessary studies that will support the orderly growth and development of the Precinct. The Minister also established a working group with the PBA to coordinate efforts.

During 2012 the Department suggested a more simplified range of works to support the Precinct, including a State Infrastructure Plan for the Precinct that would support the scale of activity envisaged for the Precinct.

The PBA, with the support of Council are still attempting to work with the Department to see a State Infrastructure plan created for the Precinct.

(iii) Werrington Business Park (UWS North Werrington)

The PBA estimates that 4,500 on-site jobs could be created on the UWS Werrington North Campus if future development of the site is focused around a Business Park/ Innovation Campus. The PBA is working with UWS, the NSW Government and Penrith Council in the negotiations and planning for this site.

To support the creation of Sydney’s much needed next business park the PBA has completed the following:

· Completed a ‘Proof of Demand’ study of tenants most likely to re locate to the proposed campus. This demand analysis will be used in future negotiations with UWS, the Government and potential development partners, all of whom may be involved in the future development of the site.

· Prepared a Briefing paper to Government on the benefits of a Business park at Werrington. This Briefing paper was supported by UWS and 4 Local State Members of Parliament, UWS’s Deputy VC and Council.

· Lead a successful application to the Australian Government to seed fund Stage 1 of the Werrington Business Park. This has resulted in a federal grant of $13.5 million to build a $29 million “employment catalyst” – the Werrington Park Corporate Centre.

· Leading negotiation and lobbying efforts with Department of Planning for the preparation of a State Infrastructure Plan for the wider Precinct.

(iv) Nepean Medical Research Institute

In 2011 the PBA launched a community initiative to build a Nepean Medical Research Institute Building. The PBA worked with the local medical research community to develop a brief of a facility, and prepare architectural drawings and costings to build the facility.

The PBA is now working on a range of elements to this project that include identifying the appropriate site; developing a funding strategy to build a MRI; developing an operational strategy – including potential users; and securing local political and community support for this catalyst project.

This project will attract up to 500 research jobs to Penrith and tens of millions of dollars in construction. It will also attract more health professionals and specialists to the region, leading to improved local health care. Specialists will resist moving to a hospital that does not provide them with the opportunity to undertake research.

Jointly with Council we are also approaching major philanthropic organisations to seek their support to fund the Institute.

(vi) Other areas of Engagement (as part of PHEP)

· We have assisted Professor Khadra in the application and lobbying for funding for a tele- health research centre (funding announced by Government in this year’s budget - $2 million over 4 years). The initiative consists of the following key projects:

o Development and refinement of the Virtual Intensive Care Unit

o Develop an ipad App to allow for paediatric patients and their families to locate vital health services through the Nepean Blue Mountains LHD network and in the community

o Home Monitoring to facilitate early discharge from hospital

o Anytime-Anywhere patient access and diagnostics

o Tele-education Support for Remote Practitioners

PBA’s Chief Executive Officer is a member of the Project Management Team headed by Professor Mohamed Khadra from Sydney University.

· We have supported a major application by UWS for a multi-million dollar CRC grant for tele-health and tele-care research

· The PBA Chairman has been appointed on the Personally Controlled Electronic Health Records (PCHER) Board based at Nepean established by the Commonwealth with hundreds of millions of dollars in funding nationally. Recently the Chairman has also joined the Medicare Local Board as director.

PCEHR trials are being undertaken in Penrith and the Lower Blue Mountains covering the following:

- electronic discharge summary

- electronic blue books

- better management of chronic health problems

· Penrith CBD Revitalisation- The Penrith Progression

Between 2010 and 2011 the PBA carefully considered all options for the revitalisation of Penrith CBD. This was necessary given the wide range of supportive works completed by Council over the preceding decade in regards to the CBD. From the PBA’s investigations it was concluded that any strategy to revitalise the CBD requires a specific demand side strategy, opposed to more traditional supply side approaches.

The PBA then investigated national best practice examples of demand lead approaches to city revitalisation. As a result the PBA Board resolved to engage Kerr Partnering to design a process for the progressive revitalisation of the Penrith CBD. This process is called The Penrith Progression.

In 2012 the PBA resolved to support the proposed process (The Penrith Progression) designed to revitalise the Penrith CBD through a series of market lead, demand side project stages.

Some of the objectives of the Penrith Progression include:

- Facilitate the economic development of Penrith LGA

- Create a new market for jobs and housing in the Penrith CBD

- Give the Penrith CBD an identity

- Develop a transparent and open process that listens to the needs of stakeholders at all levels of the private and public sectors

- Ensure implementation of the current planning framework

- Improve the CBD’s connectivity and linkages with other important assets in Penrith including the University, Hospital, Panthers development and the river.

- Encourage private sector investment to achieve the stated objectives

- Improve property values in the CBD

- Attract relevant investment partners to the CBD

- Deliver agreed upon outcomes for the CBD

- Identify better strategic uses for the communities land in the CBD (including either locally, state or federally owned land).

The first initiative of The Penrith Progression was a joint submission to the Department of Planning by the PBA and Council for nomination of the Penrith CBD as an ‘Urban Activation Precinct’.

The Penrith Progression has also been supported by the NSW Treasurer who has nominated a team from Treasury to work with the PBA and Council on piloting new models for funding local infrastructure in the Penrith CBD. One model to be investigated is ‘Tax Incremental Finance’. This follows a presentation made to the Treasure by a joint PBA-Council team led by the Mayor and PBA Director Glenn Byres.

The PBA, in partnership with Council, has drafted the following elements to the Penrith Progression:

· A Governance Framework, including an MOU between PBA and Council

(Probity and governance around discussion of public land, project roles, decision making process, project leadership and consistency of message to external parties)

· A Business Case on the need for the Penrith Progression

(To demonstrate why we need such a process)

· A Communications Plan

(Clear protocols on who says what, and when about the process to maintain consistency and unity of purpose and vision)

· A Stakeholder Management Plan

(How we genuinely engage all stakeholders in the process)

A full report on the Penrith Progression, including requested Council support, will be made available to the Council later in 2012 by the PBA.

· Western Sydney Employment Lands Investigation Area (WSELIA)

The PBA has taken every opportunity to lobby for the planning of WSELIA to be commenced. In 2012 the PBA also commissioned a report of the “economic costs of inaction” of the Government not delivering new employment lands at WSELIA.

This report detailed the extent of the current under supply of employment lands in Western, and what will happen if new employment lands are not planned and delivered in the region by the Government.

This report became a powerful lobbying tool that was widely distributed and referred to by a range of stakeholders. Copies of the report were provided to WSROC, Regional Development Australia, NSW Business Chamber and all the members of the Employment Lands Taskforce.

The Department of Planning also indicated to the PBA that the report assisted the Department greatly in scoping out their work in bringing forward the planning of WSELIA.

The Department has now advised that a broad Structure Plan for WSELIA will be on public exhibition by mid 2013. A number of consultancies are planned in partnership with the concerned Councils including Penrith and the PBA will have a role in contributing to and commenting on the proposed economic study on WSELIA.

· Penrith Lakes

The NSW Government has established an Office of Penrith Lakes to oversee the development of a master plan of the future use of the Lakes. The Office will also be involved in the longer term management of the lakes.

The PBA will continue to liaise with the Office of Penrith Lakes (OPL) to see if any productive role for the PBA is necessary to ensure positive economic outcomes are delivered at the Lakes. The December meeting of the PBA will be conducted at OPL to enable the Directors to receive a briefing on developments.

· Other Major Business Planning Activities including International Relations

o Marketing and Public Relations (Advocacy)

The PBA Board has strongly focused on building an Advocacy Program to highlight the key issues affecting Penrith’s growth as a Regional City and opportunities associated with job creation.

The Board has set up an Advocacy Sub-Committee of Directors to lead in the design and crafting of an advocacy campaign and meets regularly to review and update the campaign program. We regularly discuss our advocacy program with Council to ensure that the messages we deliver are consistent and based on rigorous analysis of the issues.

The Advocacy Program covers the following 5 key issues with specific recommendations for consideration by Government:

· Funding for the Erskine Park Link Road (now completed)

· Penrith Lakes

· CBD Revitalisation

· Western Sydney Employment Lands Investigation Area

· Penrith Health and Education Precinct.

The Advocacy issues are currently being revised.

o Submissions to Government

We made the following submissions to Government:

· NSW Parliamentary Committee on Economic Development- the submission related to the establishment of special economic zones. The Chairman and CEO were invited to give sworn evidence to the Committee based on the very quality of the submission

· New Metropolitan Strategy- focusing on job creation and funding through a Development Authority

· National Growth Area’s Alliance- advice and support provided to Council’s representative on NGAA

· Infrastructure NSW- regional and local infrastructure priorities and acquisition of transport corridors

· Urban Activation Precinct to the Department of Planning to gain access to state funding for local infrastructure in the CBD

· Suburban Jobs Fund Application to the Australian Government to fund Werrington park Corporate Centre.

· Report to the Department of Planning on the economic costs of inaction at WSELIA.

o Enterprise Development

The PBA worked with two local consortiums (TAFE; and BEC and Nepean Community College) set up to attract NBN funding to support increased use of online facilities and services to promote and grow business. Funding has been received by the Nepean Community College and BEC in the amount of $297,000 over next two years to deliver training utilising the Winning Business On-Line series of Workshops and one on one support to businesses.

We have also agreed to participate jointly with Council in a survey of Dunheved businesses to determine their needs for further growth and development. We await further advice from Council on the timing of the survey.

The Chairman and another PBA Director serve on the NSW Business Chamber State Council while the CEO has continued to serve on the Board of the Penrith Business Enterprise Centre (BEC) and the NSW Business Chamber Western Sydney Council. The PBA Chairman is also Chair of the Skills and Engineering Taskforce of Regional Development Australia-Sydney. The PBA is a corporate sponsor of the Business Enterprise Centre. These associations are of great value in providing advice to businesses and more importantly in making representations to Ministers (and Shadow Ministers) and business leaders who have responsibility for policy and program development and implementation.

PBA has welcomed the use of its premises and facilities by SMEs and other institutions that need such space to conduct meetings etc. Normally the facilities are provided free of charge as part of our plans to support local businesses.

Businesses which have benefitted from this service include:

· NAMS Domestic Cleaners Agency

· Australian Taxation Office

· Food Within

· Department of Employment, Education and Workplace Relations

· Tactical Solutions

· Direct Accounting

· Bridgeport

· Home Based Business Network

· HR Success

· Blue Mountains Cancer Council

· Penrith Medical Foundation

We continue to work with local agents, developers and the Department of Trade and Investment to provide detailed economic and business information to attract prospective businesses to the City.

Our experience in promoting business relocation has shown that while the key drivers for some businesses such as manufacturing and transport and logistics and warehousing are cost driven most professional and service business seek high quality public and social amenities, strong synergies with similar businesses, easy access to clients and good skills base. It is important that efforts to attract business services, particularly in the CBD, recognise the value of the “soft” factors and spatial dynamics such as those being developed as part of the Penrith Health and Education Precinct described below.

We continued to profile new and existing businesses on the PBA website.

o International Engagement

At the request of Council’s partner City, Kunshan and in consultation with Council, we organised a business delegation that participated in the inaugural 2012 China International Import Expo hosted in Kunshan to promote foreign businesses in China. The delegation was led by the PBA Chairman and did not include any Council staff. The delegation also visited Council’s partner city, Gangseo. A comprehensive report on the outcomes of the visit was provided to the PBA Board, Council and the Deputy Premier who forwarded the report to the Government’s Multicultural Business Advisory Committee. In both China and Korea meetings, including an investor forum attended by 60 businesses in Gangseo, were held to promote a number of development opportunities in Penrith.

We also facilitated the signing of two international MOUs:

· MOU between the PBA and the Gangseo Chapter of the Seoul Chamber of Commerce and Industry to promote B2B relations and investment opportunities; and

· MOU between Kunshan Hospital No1 and the Nepean Hospital to promote staff exchanges and explore collaborative research opportunities.

It will be noted as a result of our associations senior officers both in Kunshan and Gangseo have agreed for us to use their names and contacts on translated material we prepared on development opportunities for distribution in China and Korea. This demonstrates a high level of trust and commitment to working together for mutual benefit.

o National Disability Insurance Scheme Launch sites

With leadership provided by PBA Director and CEO of AFFORD and support from WSROC, we have lobbied the federal and state governments for the introduction of NDIS as well as a launch site in Penrith and Western Sydney. This included briefing the local Federal Member and the State Minister for Disability Services.

The Minister wrote to the PBA strongly supporting two sites in the Hunter and Western Sydney but following agreement with the Commonwealth only the Hunter site has been sanctioned by the State Government. The NDIS will create a significant number of jobs in health, insurance and health services related jobs across Australia and would become a major economic driver for the region.

Engaging with Council and Council Staff

The PBA has continued to work closely with a number of staff members and teams at Council on a diverse range of initiatives and also responded to request for information on the economy and jobs. Details are provided below:

· Suburban Jobs Program and NGAA – Craig Butler and Paul Battersby

· Advocacy Issues for Penrith – Leadership Team (Craig Butler and Ruth Goldsmith)

· CBD Revitalisation and the Penrith Progression – Property Team (Barry Husking and David Ellks)

· Planning for the Penrith Health and Education Precinct – Planning Team (Paul Battersby)

· City and Town Centre Review – (Roger Nethercote and Terry Agar)

· Development of Cultural Enterprises in Centres- Karen Harris

· International Relations – City Marketing Team (Brian Steffen and Jill Turner)

· City Talk – City Marketing Team (Collin Dickson and Jill Turner)

· City Branding and Marketing– City Marketing Team (Barbara Mcgee and Paul Page)

Several joint letters from the Mayor and PBA Chairman were sent to Ministers and others to seek support for funding (such as Medical Research Institute) or highlight key issues for the City’s growth. Such liaison and ongoing interaction ensures that the PBA and its Board is cognisant of Council policy and directions and is able to provide good economic advise and analysis when needed by Council staff. The Chairman has also maintained regular discourse with Council’s General Manager to keep him abreast of PBA’s activities and to discuss joint initiatives particularly in the area of advocacy.

2012-13 PBA Business Plan and Budget

I: 2012-13 Business Plan

This section outlines the key areas of focus for the PBA in 2012-13. The entire sum of $211,000 received via the VPA has been allocated in the Budget to Project Activities, a number of which were started last year.

1. Penrith Health and Education Precinct (PHEP)

The following four elements are identified in the vision document of the PHEP and will be further developed by the PHEP Taskforce jointly with the PBA:

· UWS Werrington Park - and business growth opportunities arising from the Suburban Jobs Program application

· Planning for the provision of state infrastructure services for the PHEP with the NSW Department of Planning & Infrastructure and related agencies.

· Medical Research Institute building

· Commercial medical employment opportunities surrounding the Hospital campus

· Looking at positively impacting the Kingwood town centre

The funds will be used to secure any further commercial advice required to support progression of these projects. Our focus will be influenced greatly by the outcome of the application for funding under the Suburban Jobs Program to kick start Werrington Park.

Management will be seeking Board approval to move PBA offices to new premises at UWS in order to undertake business development and investment attraction activities related to Werrington Park – particularly to support efforts to develop and manage any incubation space in the building.

· MOU with UWS and Council

We wrote to the Vice Chancellor, UWS seeking greater engagement with UWS in progressing the concept of a business park, irrespective of the outcomes of the suburban jobs funding application. The VC has responded, strongly supporting the proposal and we are working towards a partnership between the PBA, UWS and Council that will be formalised through a MOU.

2. CBD Revitalisation

The focus will be on progressing Stage 2 of The Penrith Progression in partnership with Council and other major stakeholders in the CBD.

Underpinning this initiative will be our efforts to partner with and lobby the State Government in the following two areas:

o Working with the NSW Government to deliver Urban Renewal outcomes in the Penrith Centre in areas of employment and housing

o Financing CBD infrastructure through innovative financing options such as Tax Incremental Financing (as agreed with Treasury);

o Attracting a major government department to the CBD; and

o Developing a deeper relationship with Nashville and the Tennessee State Government to explore the applicability of the TIF models developed by them to finance key CBD projects.

An interview panel headed by PBA Director Glenn Byres and comprising PBA CEO, Council Director, Barry Husking , councillor Karen Mckeown and an independent member, Aaron Gadiel from Gadens Lawyers (formerly CEO of Urban Taskforce ) appointed Kerr Partnering as the Principle Implementation Advisor for The Penrith Progression.

3. Western Sydney Employment Lands Investigation Area (WSELIA)

The PBA has been invited to participate on an Industry Reference Group that will be involved in preparing a new structure plan for WSELIA.

Participation on this Reference Group will enable the PBA to have an influence on the planning for WSELIA. The PBA will continue to advocate the employment and economic opportunities that WSELIA offers Sydney in addressing the jobs imbalance between east and west of Sydney.

4. Penrith Lakes

The Government has taken an affirmative position on the future development of Penrith Lakes through establishing the Office of Penrith Lakes. The PBA Board will receive a briefing on this development from the Office at its December board meeting.

Following this the PBA will be able to further advise on what role the PBA may play in bringing forward positive economic and social outcomes for Penrith through this development. It is anticipated that PBA will have a similar as the partnership with UWS to develop the proposed business park at Werrington.

5. Business Development and Relocation

· Investment briefings

We will continue to promote opportunities identified around key initiatives such the Penrith Health and Education precinct and the Penrith CBD. We will work more closely with the Department of Industry and Investment, RDA and WSROC in this area.

6. Advocacy/ Marketing

Key Advocacy Issues

With the construction of the Erskine Park link road the remaining four advocacy issues will form the core of PBA’s marketing campaign:

· Penrith Health and Education Precinct (PHEP and its related projects);

· Penrith CBD Revitalisation and Government Office Relocation;

· Western Sydney Employment Lands Investigation Area (WSELIA); and

· Penrith Lakes

The Advocacy document has become the reference point for communication with both levels of Government and our lobbying platform. We will continue to work with Council to advance our advocacy program to ensure that the issues are advanced in a consistent and complementary way.

Our efforts to organise Ministerial briefings both at the State and national level will continue and we will keep agitating about issues that are critical to creating employment opportunities in the City. We have created strong working relationships with both local State Members and the local Federal Member and regularly rely on their support to meet with Ministers as well advocate for key development issues.

Federal Elections 2013

While the federal election is scheduled to be held in late 2013, it is quite possible the elections are held earlier. PBA will work on identifying some of the critical issues that could from part of a Commonwealth advocacy program.

National Disability Insurance Scheme (NDIS) and Trials

We will continue to work with Tim Walton. PBA director and CEO of AFFORD and Chair NDS- NSW to seek for a NDIS trail to be established in Penrith/Western Sydney.

City talk

We successfully identified and arranged an international speaker for the 2012 City Talk. This will most likely result in a new relationship between the PBA and Nashville Healthcare Council and benefit our efforts to grow our own health and education precinct. We will continue to assist Penrith Council in 2013 and the future. As a result of this relationship we are also seeking information and guidance from experts on how the Tennessee Government is using Tax Incremental Financing to fund major multi-million dollar community projects. This initiative has the support of the NSW Treasurer.

Employment Lands Task Force (ELTF)

The deliberations and recommendations (to Government) by the ELDC will be critical to the planning for the delivery of new employment lands and associated infrastructure development in our region. We will continue our lobbying work through Government and ELDC and provide reports commissioned by the PBA to support the work of the ELTF. PBA Director, Glenn Byres is a member of the ELTF.

Penrith City and St Marys town centre associations review

As a result of the review of the town and city centre associations PBA will have a more direct involvement in the activities of the Centres relating in particular to the delivery of employment in the centres. We have not yet been advised of the full nature and scope for this role and the budgetary implications/ opportunities for us.

Some of the proposed activities as part of this involvement include the following:

· In partnership with Council seek landowner participation in a project to conduct environmental audit and upgrade premises to attract better quality tenants and businesses;

· Seek landowner and business participation in the Penrith Progression;

· In partnership with city marketing (Council) strengthen the role of the centres in bringing new events into the city, including conferences;

· Strengthen the town and gown relationship with UWS and Sydney University;

· Promote greater diversification of retail and commercial mix in the centres;

· Explore opportunities for growing creative industry businesses in the CBD; and

· Explore opportunities for the creating a healthier and safer night economies in Penrith and St Marys

7. Enterprise Development and Business Innovation

The commitment to the development of existing businesses and innovation will continue. This will be achieved largely through the proposed partnership with TAFE Western Sydney Institute but also through outsourced training programs developed in partnership with such organisations as the BEC and UWS.

The roll out of the NBN in the Penrith CBD also presents new opportunities both in creating smarter businesses and new ways of doing businesses but also exploring new business opportunities and associated technologies. We are consortium partners with TAFE and the BEC in the delivery of the Digital Enterprise Project which will be funded under the NBN roll-out program for Penrith.

While the BEC and TAFE will focus on training programs our focus will be on new business opportunities or smarter ways of doing businesses to ensure that our businesses remain competitive in a global marketplace that is becoming more reliant on access to faster broad band services to do business, diversify and grow.

PBA will also participate in the Development of Penrith’s Digital Economy Strategy commissioned by Council. The Strategy will “reflect our community’s vision for economic growth and social integration over the next 12 years.” The strategy comes at an opportune time for the PBA given our involvement (with UWS) in the development of the business hub as part of the innovation campus. The business hub could provide shared services for existing enterprises as well foster the incubation of innovative digital solutions related to health care and other industries.

We will also work in partnership with RDA Sydney and the NSW Government to explore the opportunities for developing industry clusters. This will include exploring the prospects of advanced manufacturing which encompasses the “knowledge” end of the manufacturing business covering innovation, design and electronics etc to build on the knowledge base of the city. It will require building a stronger partnership with TAFE and UWS.

PBA will support the Council and the Chamber in conducting preliminary work on understanding the types of businesses operating in Dunheved and the issues confronting them. A sum of $2,000 has been set aside for this work by each party.

8. International Relations

The focus will be largely on the upcoming Expo in Kunshan in May 2013 and in the promotion of a number of development opportunities in the City. The relationship with the Gangseo Chapter of the Seoul Chamber of Commerce and Industry will be strengthened as will be our ties with the Kunshan Bureau of Commerce which supports Chinese direct foreign investment and the Kunshan Federation of Industry and Commerce with several members expressing a keen interest in the city.

We will also work closely with our tele-health team and Government to promote contemporary technology developed in Korea and elsewhere.

A comprehensive Report on our successes in China and Korea was provided to the Deputy Premier who is also the Minister for Trade and Investment. He has responded very positively about a possible partnership and has directed that a senior Industry and Investment officer work with the PBA. The Minister has also provided a copy of our Report to the Government’s Multicultural Business Advisory Panel which he has set up. Mr Stoner also spoke at the City Talk on 5^th June and commended PBA and Council for its international activities.

There is strong interest for a business partnership in India to capitalise on the advances being made in business services and related technologies. The objective would be explore a partnership with a leading business organisation in a smaller city which has a strong orientation towards knowledge based tertiary industries, education and research. PBA is a member of the Australia India Business Council and this relationship would assist in any future initiatives. As part of our international relations program an economic partnership in India will also be explored.

II: 2012-13 Budget

The PBA continues to derive its funding from Council through a combination of funds from general revenue and a special citywide levy arising from the 2010 special rate variation (SRV) which PBA strongly supported. However as a result of the SRV, the funding allocation to PBA has been reduced by some $137,000 over the last two years.

It is estimated that the value of in-kind contribution by the Directors and PBA’s strategic partners is in the order of $100,000 per annum. Our records also show that in the last financial year the Chairman spent some five hours per week which is equivalent to six full working weeks on PBA activities such as meetings, consultations, presentations and attending functions. This does not include leading the business delegation to China and Korea. Since the inception of the PBA Board no Director has claimed for any expenses, including travel, for attending Board meetings or other events.

The budgeted income for the year is $504,504 with Council contribution amounting to $487,254 while forecasted operational expenditure is $504,231. However with a surplus of around $240,000 from the last year the budget position at the end of next financial year will be in the positive (around $40,000) after drawing $200,000 for contingency as per the Board resolution to accumulate $250,000 over 5 years to 2013-14.

It will be noted that the current level of funding provided by Council will no longer be sufficient to meet the operational costs of the PBA from 2013-14 unless the accumulated reserve is used to finance the deficit. The PBA is in discussions with Council on how best to resolve this issue of resourcing PBAs operational costs.

In 2010 Council negotiated and signed a Voluntary Planning Agreement with Glenmore Park Stage Two landowners whereby a sum of $1.6 million will be provided over eight years for job creation activities to be undertaken by the PBA. The VPA was negotiated when it became apparent that as a result of a number of constraints the proposed Glenmore Park stage development would not be able to generate the required number of jobs to meet Council’s 1:1 jobs policy for new residential developments.

The first tranche of the funding, amounting to $211,000 has been received by the PBA and the entire sum has been applied to a number of initiatives and projects outlined in the budget summary below. It will be noted that according to the VPA these funds can only be used for employment related projects and not for operation purposes.

2012-13 Budget Summary

Income

· Ratepayer funds $487,254

· Other income $ 17,250

· Surplus from previous year $240,505

Total $745,009

· Add payment via VPA between Council

and Glenmore Park Stage 2 landowners

(GPS2-VPA) $211,000

Total Income $956,009

Expenses

· Operational Costs $504,231

· Business Plan Activities $211,000

o Penrith Health and Education

Precinct $ 10,000

o CBD Revitalisation $125,000

o Business Development and

Relocation $10,000

o Advocacy/Marketing $20,000

o Enterprise Development $10,000

o International Relations $25,000

o Werrington Corporate Centre $11,000

Less Total Expenses ($715,231)

Add Future Contingency Fund ($200,000)

Total ($915,231)

Estimated Surplus for 2012-13 $40,778

Notes

1. All figures are GST exclusive

2. GPS2-VPA will realize $1.6 million over 8 years or $200,000 pa starting 2012-13 , and is only to be spent on employment related project activities- not operational expenditure

3. Board has resolved to set aside $250,000 in future contingencies which will be achieved in financial year 2013-14 (5 years at $50,000 pa).

PBA Directors and Staff

Directors

· Paul Brennan, Managing Director ASP Plastics and ASP Healthcare; Managing Director International Tool and Gauge; and Director Fitstick Pty Ltd (Chairman and Advanced Manufacturing sector representative)

· Dr Paul Wakefield, Director, Wakefield & Associates (Business Services sector representative)

· Greg Chapman* National Distribution Manager, Hotel Liquor Wholesalers (Transport & Logistics sector representative)

· Judith Field, Economic and Employment Development Manager, Lend Lease (Community sector representative)

· Roy Medich OAM, Managing Director, Medich Group (Community sector representative)

· Lea Hicks, General Manager, Hicks Electrical Group, (Small Business sector representative)

· Sumeet Kumar* Salmat (Arts, Culture & Communications sector representative)

· Andrew Mackenzie, General Manager, CSR Property, (Development sector representative)

· Glenn Byres, NSW Executive Director, Property Council (Housing & Construction sector representative)

· Whitney Rousham* Director WSI Business, TAFE – Western Sydney Institute (Education, Training & Learning sector representative)

· Tim Walton, Chief Executive Officer, AFFORD (Health & Well Being sector representative)

· Clr Ross Fowler OAM, Principal, Ross Fowler & Co. (Council Nominee)

· Clr Jim Aitken OAM, Managing Director, Jim Aitken & Partners (Council Nominee and Deputy Chairman)

· Craig Butler, Director City Planning, Penrith City Council (Council Nominee - nominated by the General Manager)

It will be noted that except for two directors who were appointed by the Board to replace retiring directors from the same organisations, the other twelve serving directors were appointed by Council when the PBA was formed in late 2008.

The organisation’s AGM will be held at the end of October and as per the Constitution three Directors* will retire or resign/renominate for the three positions. To encourage other qualified people to consider a position on the PBA Board the positions will be advertised via the PBA website. Council has also been requested to advertise the positions through its normal channels.

Staff

Bijai Kumar

Chief Executive Officer

Ben Artup

Manager Industry and Investment

Jacci Benedek

Corporate Support

Major Directorships – PBA non-Council Directors and Staff

· Paul Brennan- State Council of NSW Business Chamber; Personally Controlled Health Electronic Records (PCHER); Nepean Blue Mountains Medicare Local

· Roy Medich – Deputy Chair, Regional Development Australia Sydney

· Glenn Byres – Member, Employment Lands Development Committee

· Judith Field - State Council of NSW Business Chamber

· Whitney Rousham – Chair, Western Sydney Business connection

· Bijai Kumar – Penrith BEC; NSW Business Chamber, Western Sydney Council; Tele- health Technology Centre, Nepean Hospital

· Tim Walton – Chair National Disability Services, NSW

Audit Report 2011-12 Financial Year

A copy of the Audit Report prepared by auditors Berger Piepers is provided. The report will be considered and adopted at the PBA’s Annual General Meeting scheduled for 28 October 2012.

Penrith Business Alliance

September 2011

v	Meeting at which the Draft Operational Plan for 2012-2013 is endorsed for exhibition
*	Meeting at which the Operational Plan for 2012-2013 is adopted
#	Meetings at which the Operational Plan quarterly reviews are presented
@	Delivery Program progress reports
^	Election of Mayor/Deputy Mayor
ü	Meeting at which the 2011-2012 Annual Statements are presented
∞	Meeting at which any comments on the 2011-2012 Annual Statements are presented
\	The opportunity may be taken to move this meeting to the 17 September 2012, should the election result be declared early
	The Ordinary Council Election will be held on 8 September 2012

Objective	We have a say in our future
Community Outcome	A Council that speaks out for Penrith and our region (9)
Strategic Response	Advocate for the employment, transport, and infrastructure to ensure the region is sustainable (9.1)

Objective	Our natural habitats are healthy
Community Outcome	A City with healthy waterways and protected natural areas (11)
Strategic Response	Work with others to protect and conserve the River, waterways and catchments, and natural environments (11.1)