QUT Digital Repsitry: http://eprints.qut.edu.au/27550 CRC fr Cnstructin Innvatin (2006) Submissin t Brisbane City Cuncil : Draft Brisbane Ecnmic Develpment Plan. The Participants f the CRC fr Cnstructin Innvatin have delegated authrity t the CEO f the CRC t give Participants permissin t publish material created by the CRC fr Cnstructin Innvatin. This delegatin is cntained in Clause 30 f the Agreement fr the Establishment and Operatin f the Cperative Research Centre fr Cnstructin Innvatin. The CEO f the CRC fr Cnstructin Innvatin gives permissin t the Queensland University f Technlgy t publish the papers/publicatins prvided in the cllectin in QUT eprints prvided that the publicatins are published in full. Icn.Net Pty Ltd retains cpyright t the publicatins. Any ther usage is prhibited withut the express permissin f the CEO f the CRC. The CRC warrants that Icn.Net Pty Ltd hlds cpyright t all papers/reprts/publicatins prduced by the CRC fr Cnstructin Innvatin.
CRC Cnstructin Innvatin 9 th Flr, L Blck QUT Gardens Pint Campus 2 Gerge Street BRISBANE QLD 4000 t: (07) 3864 1393 f: (07) 3864 9151 www.cnstructin-innvatin.inf 1 September 2006 Mr David Jacksn Acting Manager - Ecnmic Develpment Brisbane City Cuncil david.jacksn@brisbane.qld.gv.au Dear Mr Jacksn Thank yu fr the pprtunity t prviding feedback n the draft Brisbane Ecnmic Develpment Plan. The CRC fr Cnstructin Innvatin values this pprtunity t cntribute t the ecnmic develpment plan fr Brisbane. The particular fcus f ur submissin is n the relatinship between ppulatin grwth, emplyment grwth and infrastructure. While the draft plan addresses these issues, we suggest that addressing these issues frm an intergvernmental perspective and cllabrating with a leading applied industry research rganisatin wuld further enhance the excellent planning undertaken t date. Yurs sincerely Dr Keith Hampsn Chief Executive Officer Arup Australasia Australian Building Cdes Bard Bvis Lend Lease Brisbane City Cuncil Brkwater Building Cmmissin CSIRO Curtin University f Technlgy DEM Jhn Hlland Grup Qld Building Services Authrity Qld Dept f Main Rads Qld Dept f Public Wrks Qld Dept f State Develpment, Trade and Innvatin Qld University f Technlgy Rider Hunt RMIT University The University f Newcastle The University f Sydney WA Dept f Husing and Wrks Wds Bagt
Submissin t Brisbane City Cuncil DRAFT BRISBANE ECONOMIC DEVELOPMENT PLAN Friday, 1 September 2006 Respndents Name: Prf. Keith Hampsn Phne number: +61 7 3864 2288 Psitin title: CEO Fax number: +61 7 3864 9151 Organisatin: Cnstructin Innvatin Email address: k.hampsn@cnstructin -innvatin.inf Name: Prf. Kerry Brwn Phne number: +61 7 3864 2939 Psitin title: Prfessr Fax number: +61 7 3864 1313 Organisatin: Schl f Management, QUT Email address: ka.brwn@qut.edu.au Name: Mr. Craig Furneaux Phne number: +61 7 3864 1890 Psitin title: Research Fellw Fax number: +61 7 3864 1313 Organisatin: Cnstructin Innvatin Email address: c.furneaux@cnstructininnvatin.inf Page 1
Intrductin As with any strategic planning prcess, evidence-based estimates are needed t plan effectively fr the future. Cmments belw are based upn data drawn frm the Brisbane Lng Term Infrastructure Plan (Department f Lcal Gvernment, Planning, Sprt and Recreatin, 2005) and the Brisbane Lng Term Planning Ecnmic Indicatrs (Natinal Institute f Ecnmic and Industry Research, 2005), as these are cited as the underpinning research fr the ecnmic plan. This submissin fcuses n ne critical aspect f the strategic plan the relatinship between ppulatin grwth, emplyment grwth, and infrastructure prvisin. While the fcus f the strategic plan is n the changes which wuld ccur within Brisbane, it is imprtant that cnsideratin f predicted changes in surrunding lcal gvernment areas be als carried ut. Demgraphic and Emplyment Changes Cnsiderable ppulatin grwth is anticipated fr Suth East Queensland ver the next 20 years, with an increase in the ttal ppulatin predicted at 500,000 peple. The main grwth is predicted t ccur in the lcal gvernment areas surrunding Brisbane. Table 1 Prject Ppulatin Change (QLD Dept f Lcal Gvernment, Planning, Sprt and Recreatin, 2005, p. 39) Predicted Ppulatin Change 2004 2026 Ttal Increase Percentage f Ttal Predicted Ppulatin Grwth Brisbane 957,010 1,102,726 145,716 27% Surrunding LGAs 830,474 1,231,533 401,059 73% TOTAL 1,787,484 2,334,259 546,775 Emplyment is als anticipated t grw significantly ver the same time perid. A majr cnsideratin fr planning is that in cntrast t the demgraphic changes nted abve, Brisbane LGA is predicted t prvide the main surce f emplyment grwth, when cmpared t the surrunding lcal gvernment areas. Table 2 Predicted Emplyment Grwth (Natinal Institute f Ecnmic and Industry Research, 2005, piii) Predicted Emplyment Grwth 2004 2026 Ttal Increase Percentage f Ttal Predicted Emplyment Grwth Brisbane 584,483 849,219 264,736 74% Surrunding LGAs 222,962 316,589 93,627 26% TOTAL 807,445 1,165,808 358,363 Page 2
As the graph belw demnstrates, the rati f ppulatin grwth t emplyment grwth in Brisbane is in inverse prprtins t predicted jbs and ppulatin grwth in the surrunding lcal gvernment areas. Diagram 1 Cmparisn f Predicted Ppulatin and Emplyment Grwth 450000 400000 350000 300000 250000 200000 150000 100000 50000 0 Brisbane Surrunding LGAs Predicted Ppulatin Increase Predicted Emplyment Increase While BCC cites infrastructure as a critical area fr achieving ther aspects f the plan, we suggest that this smewhat understates the situatin: Infrastructure pririties are significantly shaped by frecasts which shw that apprximately 20% f Brisbane s suburbs will cntribute sme 80% f the city s exprts and jbs grwth in the years t 2026 (Brisbane City Cuncil Draft Ecnmic Develpment Plan,2006). As nted abve, 73% f the ttal ppulatin grwth in the greater Brisbane area will ccur in the lcal gvernment areas surrunding Brisbane itself, while Brisbane will prvide mst (74%) f the ttal increase in jbs. Ptential Outcme 1 The mst likely utcme f such a scenari is that the increased ppulatin in the surrunding lcal gvernment areas will travel t Brisbane t take advantage f the jb pprtunities. The vlume f daily travel will have an increased impact upn public transprt, as well as the lcal rad netwrk and cnnecting highway infrastructure. Ptential Outcme 2 Brisbane City Cuncil (BCC) is expected t experience increasing infrastructure csts (eg water supply and waste as well as transprt infrastructure) as a result f increased cmmuting t wrk frm surrunding lcal gvernment areas, while nt experiencing a cncmitant increase in revenue frm dmestic rates. In rder t reslve this issue successfully, BCC will need t be able t achieve utcmes in cllabratin with the Cuncil f Mayrs (SEQ), as well as with the relevant Queensland Gvernment departments. These intergvernmental arrangements appear critical in rder fr Brisbane City Cuncil t ensure fulfilment f the ecnmic develpment plan. The CRC fr Cnstructin Innvatin is currently prgressing research in the area f intergvernmental relatinships and their impact upn the built envirnment, via the Cnstructin Industry Business Envirnment (CIBE) prject. Fr a sample f the wrk being cmpleted in this Page 3
area, please see Furneaux, Brwn, Allan, Abel, McCnville, McFallan, Lndn and Burgess (2006). Skill Shrtages in the Cnstructin Industry While the draft plan suggests that there is an abundant supply f highly trained graduates, (p.9), research being cnducted by the Cnstructin Innvatin s Cnstructin Industry Business Envirnment prject suggests that the cnstructin industry in Queensland is in fact experiencing an nging skills shrtage. The estimated training shrtfall fr cnstructin related persnnel fr 2005 (including tradespeple and assciate prfessinals) being 4,670 peple (Department f Emplyment and Training, 2005, p.17). This skills shrtage is having a negative affect upn the ability t cmplete cnstructin prjects, and cmpunds the existing backlg f infrastructure prjects n time n budget. It is imperative that skills and industry capacity be investigated in rder t ensure nging jbs grwth tied t infrastructure prjects. Summary f Issues The CRC fr Cnstructin Innvatin supprts the Ecnmic Develpment Plan, fr Brisbane City Cuncil. Hwever a number f challenges exist that need t be addressed as they have the capacity t negatively impact upn the plan. These include: The increased ppulatin grwth in the lcal gvernment areas surrunding Brisbane is likely t place cnsiderable pressure upn Brisbane s infrastructure (transprt, rads, water and industrial waste dispsal) The cst f addressing this increased pressure is nt likely t be matched by increasing revenue frm dmestic rates Intergvernmental relatinships (bth with the State Gvernment and adjacent Lcal Gvernment Authrities) are critical fr the achievement f the infrastructure aspects f the strategic plan. The nging skills shrtage will exacerbate the existing backlg f infrastructure prjects, which are required t supprt jbs grwth. The Natinal CRC fr Cnstructin Innvatin based at QUT in Brisbane is well-psitined t prvide valuable applied research t supprt the delivery f the Ecnmic Develpment Plan. Amngst ther things, Cnstructin Innvatin leads cllabrative research with industry, gvernment and research partners (including Brisbane City Cuncil, Queensland Gvernment and QUT) t imprve the effectiveness f design, cnstructin and management f infrastructure. References Department f Emplyment and Training (2005) Skills fr Jbs and Grwth. Brisbane: Queensland Gvernment Department f Lcal Gvernment, Planning, Sprt and Recreatin. (2005) Brisbane Lng Term Infrastructure Plan: Prjectins f Demgraphic Indicatrs. Brisbane: Queensland Gvernment Furneaux, Brwn, Allan, Abel, McCnville, McFallan, Lndn and Burgess (2006) Capital wrks prcurement plicies in Australia: implicatins fr understanding and meeting client needs. In Prceedings Clients Driving Innvatin: Mving Ideas int Practice, Gld Cast, Australia. http://eprints.qut.edu.au/archive/00003848/01/3848.pdf Natinal Institute f Ecnmic and Industry Research (2005) Brisbane Lng Term Planning Ecnmic Indicatrs: A Reprt fr the Brisbane City Cuncil. Cliftn Hill: NIEIR. Page 4