MISSION AND VALUES OF COUNCIL
"A Sustainable Community that is inclusive, attractive, healthy and pleasant to live in, that uses our land so as to preserve our history and environment, respects the rights and equality of our citizens and manages our future growth wisely."
AGENDA
FOR THE
Economic Development Advisory Committee Meeting
16 July 2015
OUR VISION
"A thriving and friendly community that recognises our history and embraces cultural diversity and economic opportunity, whilst nurturing our unique natural and built environment."
OUR MISSION
“To deliver affordable and quality Local Government services.”
CORE VALUES OF THE SHIRE
The core values that underpin the achievement of the
mission will be based on a strong customer service
focus and a positive attitude:
Communication
Integrity
Respect
Innovation
Transparency
Courtesy
DISCLAIMER
The purpose of Council Meetings is to discuss, and where possible, make resolutions about items appearing on the agenda. Whilst Council has the power to resolve such items and may in fact, appear to have done so at the meeting, no person should rely on or act on the basis of such decision or on any advice or information provided by a Member or Officer, or on the content of any discussion occurring, during the course of the meeting.
Persons should be aware that the provisions of the Local Government Act 1995 (Section 5.25 (e)) establish procedures for revocation or rescission of a Council decision. No person should rely on the decisions made by Council until formal advice of the Council decision is received by that person. The Shire of Broome expressly disclaims liability for any loss or damage suffered by any person as a result of relying on or acting on the basis of any resolution of Council, or any advice or information provided by a Member or Officer, or the content of any discussion occurring, during the course of the Council meeting.
Agenda – Economic Development Advisory Committee Meeting 16 July 2015 Page 3 of 4
SHIRE OF BROOME
Economic Development Advisory Committee Meeting
Thursday 16 July 2015
INDEX – Agenda
3. Declarations Of Financial Interest / Impartiality
5.1 REGIONAL CENTRES DEVELOPMENT PLAN PHASE 2
5.3 BROOME AS AN OFFSHORE LOGISTICAL SUPPLY BASE.
5.4 CONSIDERATION OF A CASINO DEVELOPMENT FOR BROOME
Agenda – Economic Development Advisory Committee Meeting 16 July 2015 Page 4 of 5
NOTICE OF MEETING
Dear Council Member,
The next Economic Development Advisory Committee Meeting of the Shire of Broome will be held on Thursday, 16 July 2015 in the Function Room, Corner Weld and Haas Streets, Broome, commencing at 1.00.
Regards
K R DONOHOE
Chief Executive Officer
09/07/2015
An Election for Chairperson and Deputy Chairperson will be held prior to the commencement of the meeting.
N/A
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SUMMARY: This report outlines the Shire’s submission to the Regional Centres Development Plan Phase Two which was developed in consultation with the Kimberley Development Commission upon receiving an invite to participate from the State Government. On July 7, 2015 it was confirmed that The Shire of Broome has been successful in being selected as a Regional Growth Centre within this phase. |
BACKGROUND
Previous Considerations
Nil
COMMENT
The Shire was invited to make a submission to the Regional Centres Development Plan (RCDP) Phase 2 in April 2015. The RCDP is a State Government initiative that provides a platform to support the regional growth of regional centres and Super Towns identified in the State Planning Strategy. The next phase involves the preparation of a Regional Centres Development Policy, and delivers support to prepare growth plans for nine regional centres including Albany, Broome, Greater Bunbury, Busselton, Carnarvon, Geraldton, Kalgoorlie, Kununurra and Mandurah.
Program delivery is phased over two two-year stages and funding of $7.5 million is available to support the program and deliver four growth plans by October 2016. An RCDP Steering Committee provided a recommendation to the Minister for Regional Development and the Minister for Planning on the order in which growth plans will be prepared. Details of the request to invite and background assessment criteria can be seen in attachment 1 and 2.
The RCDP2 will deliver the following through various partnerships with consultancy support where required:
1. Program Management Tools
Project Management Plan
Marketing and Communications Strategy
Engagement Strategy
2. Regional Centres Development Policy and an implementation framework, which provides a platform to support regional centre growth and the development and implementation of growth plans.
Growth Plan Toolkit (including a standard implementation schedule template and
prioritisation tool) and training module, which provides guidance and training on how to develop and implement a growth plan.
3. Nine growth plans and prospectuses (x4 in Stage 1 and x5 in Stage 2), which provide
integrated economic, community and spatial development strategies, implementation
plans and marketing material.
4. Place branding and marketing strategy, which provides a place brand architecture and marketing platform to support competitive identity and regional attraction activity.
5. Collaborative governance structure, including growth plan partnerships, to be
established through MoUs, which provides capacity, support and coordination.
Shire and KDC Submission
The joint Shire and KDC submission will be tabled at the meeting and outlines recent initiatives undertaken and aligns them to existing plans and strategies of key stakeholders and provides an overview of the relevant current demographics and economic growth rates for Broome.
The preparedness section of the submission outlines why Broome is a vital service hub for key industries and recent work undertaken to create alignment with all stakeholders. The capability section of the submission highlights alignment across the Shire, KDC and Regional Development Australia Kimberley (RDAK) plans and strategies. The information in the need section provides details of the economic advantages and key statistics of the region.
The benefits of Broome being nominated as a Regional Growth Centre are qualified by the key strategic projects that the State and Federal Government have identified, ensuring that the resources required to see these projects developed and implemented are secured.
The number of significant resource and private sector projects around Broome and the West Kimberley, as well as the opportunities for maximising these projects facilitated by becoming a Regional Growth Centre are highlighted along with a list of these projects, their status and benefits.
As a growth Centre Broome will be able to attract investment from many sectors (including those outside government). It will also lead to coordination and facilitation of growth across industry sectors that will come from
· Infrastructure developed to support and facilitate outcomes
· Certainty of approvals
· Alignment between levels of government, stakeholders and community
Announcement of Regional Growth Centre
On the 7th of July it was announced that the Shire of Broome had been selected as a Regional Growth Centre within this round along with Greater Bunbury, Greater Geraldton and Kalgoorlie. Refer to attachment 3 for the media statement from the Department of Regional Development. The nature of $7.5 million funding which will be shared by the four locations is still to be determined.
CONSULTATION
Kimberley Development Commission
Regional Development Australia Kimberley
STATUTORY ENVIRONMENT
Nil
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
Funding of $7.5 million is available but the distribution across the four growth plans is not known at this stage
RISK
The Shire becoming a Regional Growth Centre is considered low risk as it will provide additional funding and resources to realise current objectives.
STRATEGIC IMPLICATIONS
Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:
Effective communication
Affordable services and initiatives to satisfy community need
Accessible and safe community spaces
Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:
Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community
Retention and expansion of Broome’s iconic tourism assets and reputation
Council is able to mobilise resources to deliver municipal services to Indigenous communities that are compliant, effective and within Council’s capacity.
Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:
Affordable and equitable services and infrastructure
Affordable land for residential, industrial, commercial and community use
Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees
Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:
An organisational culture that strives for service excellence
Sustainable and integrated strategic and operational plans
Responsible resource allocation
Improved systems, processes and compliance
VOTING REQUIREMENTS
Simple Majority
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That the Committee recommends Council note the Shire has been successful in its submission to be selected as a Regional Growth Centre.
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RCDP INVITE |
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RCDP BACKGROUND |
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REGIONAL GROWTH CENTRE ANNOUNCEMENT PRESS RELEASE |
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REGIONAL GROWTH CENTRE ANNOUNCEMENT PRESS RELEASE |
Agenda – Economic Development Advisory Committee Meeting 16 July 2015 Page 17 of 18
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5.2 BROOME FUTURE LOCATION/ADDRESS: Nil APPLICANT: Nil FILE: EDP002 AUTHOR: Manager Economic Development CONTRIBUTOR/S: Nil RESPONSIBLE OFFICER: Deputy Chief Executive Officer DISCLOSURE OF INTEREST: Nil DATE OF REPORT: 2 February 2015 |
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SUMMARY: This report provides some background to the Broome Future organisation and the “Unlocking the Door” report which is an analysis of the feasibility of Broome being the logistics and service hub for the Kimberley. Officers recommend engagement with Broome Future to ensure alignment and coordination with stakeholders and initiatives being undertaken in this area. |
BACKGROUND
Previous Considerations
Nil
COMMENT
Broome Future Limited (Broome Future) is a not-for-profit company established and funded by organisations and individuals with commercial and community interests in Broome and the wider Kimberley region. It is an advocate for the sustainable economic, social and cultural development of Broome and the Kimberley for the benefit of the community and industry. The organisation proposes to be apolitical and uses evidence-based research to analyse the capacity of Broome to support the region as the major logistics hub and service centre. To date funding for research undertaken has come from individuals and organisations with no form of government financial assistance.
Broome Future is also a member of the Northern Australia Alliance which sees key advocacy bodies from Queensland, Northern Territory and Western Australia unite to work collaboratively and act as catalysts to help shape and change communities across Northern Australia in a strategic and consultative manner, refer to attachment 1.
The first major initiative of Broome Future has been the report Unlocking the Door, by Australian Venture Consultants, please see attachment 2. It is a comprehensive analysis of the feasibility of Broome becoming a logistics hub and service centre for the Kimberley whilst balancing the environment, social and economic needs of the community.
The report has involved extensive consultation to date and provides a framework for all key stakeholders to work together in a coordinated way. It also contains a next steps section outlining a process for engaging with stakeholders in order to refine the study and develop recommendations for an implementable strategy that will give effect to enhanced logistics infrastructure in the Kimberley, centred on Broome as the regional logistics hub.
The current timeframe for this element involves further consultation with key community, logistical and road network stakeholders and roundtables over the 2015 calendar year culminating in an Unlocking the Door conference in quarter 1, 2016.
As Broome Future operates in a similar capacity to organisations such as the Committee for Perth, officers recommend that The Shire engage with Broome Future in a similar manner to other local authorities such as the City of Perth and South Perth engaging with the Committee for Perth.
This will have the benefit of demonstrating Shire support for Broome as being the main logistical hub for the region and the work undertaken by Broome Future as well as allowing the Shire to be coordinated in the development of the associated implementation plan.
It will also allow for alignment between the research and recommendations that Broome Future undertake and other work being undertaken by the Shire and stakeholders possibly removing duplication of effort and enhancing coordination with stakeholder activity.
CONSULTATION
Nil
STATUTORY ENVIRONMENT
Nil
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
The engagement proposed would not have an initial cost component.
RISK
Increased engagement with Broome Future is considered low risk as it will allow coordination, information sharing and alignment with Shire and stakeholder activity. Arguably greater risk could arise from a lack of engagement that results in effort or research duplication and a lack of coordination of initiatives and stakeholder engagement.
STRATEGIC IMPLICATIONS
Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:
Effective communication
Affordable services and initiatives to satisfy community need
Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:
Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community
A preserved, unique and significant historical and cultural heritage of Broome
Retention and expansion of Broome’s iconic tourism assets and reputation
Council is able to mobilise resources to deliver municipal services to Indigenous communities that are compliant, effective and within Council’s capacity.
Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:
Affordable and equitable services and infrastructure
Affordable land for residential, industrial, commercial and community use
Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees
Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:
An organisational culture that strives for service excellence
Sustainable and integrated strategic and operational plans
Responsible resource allocation
Improved systems, processes and compliance
VOTING REQUIREMENTS
Simple Majority
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The Committee recommends Council : 1. Note the Broome Future “Unlocking the Door Report” 2. Support engaging with Broome Future to ensure alignment with Shire and stakeholder initiatives.
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MEDIA RELEASE BROOME FUTURE |
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BROOME FUTURE REPORT UNLOCKING THE DOOR |
Agenda – Economic Development Advisory Committee Meeting 16 July 2015 Page 392 of 393
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5.3 BROOME AS AN OFFSHORE LOGISTICAL SUPPLY BASE LOCATION/ADDRESS: Nil APPLICANT: Nil FILE: EDP002 AUTHOR: Manager Economic Development CONTRIBUTOR/S: Nil RESPONSIBLE OFFICER: Deputy Chief Executive Officer DISCLOSURE OF INTEREST: Nil DATE OF REPORT: 7 July 2015 |
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SUMMARY: This report outlines recent activity in relation to Broome being the main logistical supply base to support growth sectors such as offshore oil and gas in the Browse Basin, agriculture and pastoral activity. It highlights the need for both the Shire and key Broome stakeholders, as a whole, to present a coordinated approach to ensure effective promotion of Broome being the preferred logistical hub for the region. Economic Development Advisory Committee members are requested to outline comments and provide further advice to Council on this matter. |
BACKGROUND
Previous Considerations
OMC 4 August 2009 Item 11.1
OMC 26 February 2015 Item 9.4.8
OMC 02 June 2015 Item 11.1
COMMENT
Notice of Motion – June 2 2015 Ordinary Meeting of Council
A notice of motion in the June 2 2015 OMC meeting sought council reaffirmation of its position in relation to Broome being the logistics hub for the browse and resolved that the CEO and Shire President be requested to continue their ongoing lobbying and advocacy to this effect (attachment 1). The motion also requested the matter be brought before the Economic Development Advisory Committee for their comments and advice to Council on the matter.
This is important due to the recent announcement by Mt Gibson Iron of a joint project on Koolan Island with Qube logistics that provides a framework to progress the potential establishment of a logistical services base for the offshore oil and gas industry.
The proposal (although in the early stages) envisages the staged development of helicopter refuelling and maintenance facilities, air search and rescue facilities, an all weather runway suitable for large-scale passenger jet aircraft, a deep-water marine terminal, and accommodation facilities. The press release can be seen at attachment 2.
This may impact negatively on Broome’s ability to secure longer term arrangements with key industry players, affect land demand and negatively affect business planning to establish and supply the energy sector. There may also be wider impacts on costs of airfares and tourism travel across the region should Broome Airport not remain the regions primary airport. The Chief Executive Officer has written to the Department of State Development in relation to this issue requesting further discussion so that the implications of this proposed development can be better understood (attachment 3).
In light of the initiatives the Shire has been undertaking and additional options which are depicted below; EDAC members are requested to advise Council on further activity it feels may be required in support of Broome being the key supply base for the region.
EDAC members are requested to consider the collaborative initiatives that may need to be undertaken to ensure Broome’s future in the medium to long term in regards to being the logistics hub for the region.
Shire and Stakeholder Activity
The Shire has undertaken activities to position Broome to be the main logistics supply base for the region, this includes:
Economic Inward Investment Prospectus
The Shire has incorporated the opportunities and advantages of Broome being a logistics hub into the Economic Development Inward Investment Prospectus and featured relevant industries such as Agriculture, Marine Services and Logistics within the first round of inserts. The content developed within the prospectus and inserts also highlights Broome’s advantages such as proximity to the Browse Basin, land availability (industrial and residential) near key infrastructure as well as Broome’s high liveability within the region.
Ongoing lobbying and advocacy to all levels of Government and industry.
In the last year the Shire President and Chief Executive Officer have had over 30 meetings with resource companies to promote Broome as the ideal support base. Numerous presentations have also been made by resource companies to the Shire.
Lobbying in regards to the Cape Leveque Road upgrade has also seen some movement with the Minister for Transport recently identifying this as a key consideration and project for the State after a recent tour of aquaculture facilities in Cone Bay refer to attachment 4.
Collaborative working with local, State and Federal Agencies
The Shire has also undertaken collaborative work with State Government such as the Department of Mines and Petroleum (DMP) regarding the public awareness sessions relating to shale and tight gas.
Officers have met with DMP and commenced mapping the major resource projects within Shire. This will allow knowledge to be developed regarding shared infrastructure opportunities as well as allow the Shire and stakeholders to map opportunities for downstream industries, support services, upcoming tenders for local business, job opportunities and employment and training outcomes. See attachment 5 with further desktop research to be tabled.
To achieve efficiencies and economies of scale in logistics, development of other industries (such as agriculture or aquaculture) with reliance on logistics is important. For this reason the Shire has also participated and presented at key stakeholder workshops such as the recent La Grange workshop facilitated by the Department of Agriculture and Food to support expansion opportunities for industries such as livestock, horticulture and pastoral land all of which will contribute to economies of scale being developed in the logistics and supply industry.
The Shire is working closely with the Department of Water to maximise opportunity from high value state programs such as the Water for Food Project to ensure these opportunities for funding are promoted and incorporated into publications such as the prospectus.
The Shire recently made a submission to and participated in the Joint Select Committee of Northern Australia Inquiry in Aquaculture to promote the opportunities and demographics of aquaculture for the region. This industry could contribute achieving economies of scale in logistics and transport as well as stimulate investment in infrastructure such as the Cape Leveque Road upgrade. It will also deliver opportunities for indigenous employment, infrastructure and support industry along the Dampier Peninsula.
The Shire has also facilitated an investment tour of a Vietnamese delegation including the Vietnamese Consular Official with key stakeholders such as the Kimberley Port Authority, BCCI, KTI, Landcorp and Nyamba Buru Yawuru to illustrate opportunities for investment in the region. Interest in livestock, pastoral / horticulture, tourism and construction was expressed by the delegation.
Business Breakfast – Industry Promotion
The Business Breakfast Series have been very well received and have occurred quarterly over the last nine months. Past Business Breakfast Series have included presentations such as the Broome Future report and other resource related projects including the Shell Prelude project and Sheffield Resources – Thunderbird Mineral Sands Project.
This allows the local business community to understand the many advantages of these projects and to see the benefits that arise in the form of investment into the local economy, jobs, training and education. This also allows industries (particularly downstream and support industries such as logistics) to capitalise on growth opportunities that will develop in the future. This series also allows local suppliers to be aware of upcoming opportunities such as tenders and support industry requirements related to the large scale resource and energy sector projects.
Formation of the Economic Development Advisory Committee
The transition of the Economic Development Advisory Group into a formal committee of council will allow recommendations to be considered by Council from key industry stakeholders who are closely aligned with the aims of the logistical and supply base hub concept.
Options moving forward
1. Deputation Group formed to engage with industry
A group of stakeholders such as the Broome International Airport, Kimberley Port Authority and the Shire could form a deputation group to meet with the key industry organisations. This engagement could be utilised to gauge current thoughts and opinions regarding Broome’s offshore oil and gas logistics. This will allow insight into relevant drivers from their end and allow collective initiatives to be developed to ensure Broome is positioned to meet their needs in the medium to long term. It may also highlight considerations that Broome needs to start working on to ensure industry needs can be met in the longer term or highlight barriers to growth for Broome over an expanded timeframe.
The greatest short term cost of this initiative would be the time required for appropriate level staff to undertake this consultation. Further resourcing and cost implications would arise in terms of the scale, number and nature of initiatives that the feedback from industry generates. This initiative would however allow such costs to be focussed on industry need and relatively well targeted.
2. Enhanced Offshore Oil and Gas Industry Marketing
Stakeholders could pursue proactive marketing initiatives to Offshore Oil and Gas organisations. As an example Landcorp and officers identified a relevant trade expo and have done some initial investigation into the feasibility of being an exhibitor at the LNG18 - International Conference and Exhibition on Liquefied Natural Gas. This will be held in Perth at the Convention and Exhibition Centre from the 12th – 15th of April in 2016. There is an existing wait list and the size of the limited available exhibition sites range from 36sqm to 150sqm. Officers would recommend the Shell Scheme package at AUD $1,115.00 + 10% GST per square metre as most appropriate;
The Shell Scheme is a modular display system of poles, panels, signage, power and lighting, designed to allow exhibitors to simply turn up, mount their own graphics using the walls (and specifications) provided and set out their equipment. Note furniture is not included
Graphics, furniture and collateral would be additional for the exhibitor shell, design and marketing collateral and then resources to man the stall, possibly including travel, return flights, accommodation and per diems per for three. An overview of estimated financial costs is included below.
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Estimated Costs |
35 sqm Option |
150 sqm Option |
Comment |
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Exhibitor Shell Hire |
$39,025 |
$167,250 |
Current wait list – sqm costs quoted in July |
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Graphics and Collateral |
$20,000 |
$30,000 |
Much larger space to cover in larger option |
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Furniture hire (estimate) |
$2,000 |
$5,000 |
More furniture required |
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Flights for 3 return to Broome |
$2,700 |
$2,700 |
Dependant on booking date |
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Accommodation 4 nights ($280 pp) (3 people) |
$3,360 |
$3,360 |
Assumes arrive 11th and return 15th – Assumes availability – many hotels would be pre booked |
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Per diems ($70
pp) 3 people |
$1,050 |
$1,050 |
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Contingency |
$6,500 |
$20,000 |
Recommended to cover items that may arise as more detail is known |
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Initial financial estimate |
$74,635 |
229,360 |
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Other considerations would include the time and resources required for co-ordination, marketing development, project management and manning of the exhibit etc. The Shire may be able to gain approval for a $5,000 - $10,000 contribution and could offer existing collateral undertaken from the prospectus, however this is currently an unbudgeted initiative and would require stakeholder financing, procurement and resourcing.
All stakeholders who would most benefit would need to determine the best position of each interested organisation to undertake discrete components of such a proposal, undertake coordination aspects and provide ongoing resources as the real work should be generated in the follow up and working on opportunities that may be developed post conference. Alternatively state agencies may be able to share space with other agencies who may be exhibiting such as the Department of State Development.
This is just one example, there are other expos such as the Annual Australiasion Oil and Gas Exhibition (AOG) which was held in Perth in March in 2015 (approximately 600 exhibitors from 20 countries with 15,000 visitors) which this type of initiative could also be considered for in the future.
3. Investment Delegations
As industries related to logistics develop with more certainty (such as agriculture or aquaculture initiatives) along with growth in offshore Oil and Gas key stakeholders may be in a position to coordinate investment delegations of Asian countries or other possible investment partners. This would demonstrate pro activity in developing investment relationships and convey strong alignment across government and stakeholders in attracting investment to Broome.
This could be enacted as a joint initiative with organisations such as Nyamba Buru Yawuru, Landcorp, relevant State Government bodies such as the trade and investment division of the Department of Agriculture and Food or the Department of State or Regional Development. Collateral would need to be developed specific to strategic initiatives common across all partners such as the development of project investment videos with different language overdubs etc. There would also need to be strong stakeholder alignment on the relevant opportunities, coordination in the production and scheduling of such an initiative and high degrees of certainty about the investments being promoted.
This initiative would need to be driven by the organisations and departments of the State who most stand to benefit, with the Shire supporting the more ceremonial aspects with participation.
This may be more of a medium term initiative for consideration, due to the variability of options in terms of participants and itinerary along with type and number of investments being promoted. Therefore costs would need to be determined in consultation with EDAC members and interested organisations.
SUMMARY
Officers consider option 1 could be progressed in the short term; however these options (and others) will be discussed at the committee meeting with a view to recommendations being provided to Council.
CONSULTATION
EDAC Members and organisations
DMP
STATUTORY ENVIRONMENT
Nil
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
Financial implications not already detailed will need to be determined in consultation with stakeholders.
RISK
The real underlying risk relates to Broome not being competitive as the regions supply hub in the medium to longer term, this is considered possible as most industries would undertake a cost based approach to logistics and if Broome is not as financially attractive (or able to provide other offset benefits) this could have major impact with a resultant long term extreme risk. There is however, relative opportunity to employ mitigating factors provided stakeholders are coordinated.
STRATEGIC IMPLICATIONS
Our People Goal – Foster a community environment that is accessible, affordable, inclusive, healthy and safe:
Effective communication
Affordable services and initiatives to satisfy community need
Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:
Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community
A unique natural environment for the benefit and enjoyment of current and future generations
Retention and expansion of Broome’s iconic tourism assets and reputation
Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:
Affordable and equitable services and infrastructure
Affordable land for residential, industrial, commercial and community use
Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees
Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:
Sustainable and integrated strategic and operational plans
Improved systems, processes and compliance
VOTING REQUIREMENTS
Simple Majority
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1. For the Committees consideration with recommendations to be provided to Council
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NOTICE OF MOTION 2 JUNE 2015 |
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PRESS RELEASE KOOLAN ISLAND MT GIBSON |
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LETTER TO DEPT STATE DEVELOPMENT |
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CAPE LEVEQUE ROAD ARTICLE BROOME ADVERTISER JUNE 4 2015 |
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RESOURCE PROJECT MAPPPING |
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CAPE LEVEQUE ROAD ARTICLE BROOME ADVERTISER JUNE 4 2015 |
Agenda – Economic Development Advisory Committee Meeting 16 July 2015 Page 409 of 410
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5.4 CONSIDERATION OF A CASINO DEVELOPMENT FOR BROOME LOCATION/ADDRESS: Nil APPLICANT: Nil FILE: KRD05 AUTHOR: Chief Executive Officer CONTRIBUTOR/S: Nil RESPONSIBLE OFFICER: Chief Executive Officer DISCLOSURE OF INTEREST: Nil DATE OF REPORT: 9 July 2015 |
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SUMMARY: This report seeks consideration by the Economic Development Advisory Committee to investigate the development opportunities to see a boutique Casino project developed in Broome. This report seeks consideration by the Committee to undertake a study into the implications and requirements needed to develop such a project for Broome with further information being considered once an initial study of the issues has been prepared for consideration by the Committee and Council. |
BACKGROUND
Previous Considerations
Nil
COMMENT
Broome has for some years been discussing the development of a Casino project, this report seeks consideration by the Economic Development Advisory Committee to conceptually investigate the development of a Casino facility in Broome and for the Committee to reflect on the commercial opportunities this may provide to the town and wider region including connectivity with Asia.
Initial thoughts see opportunities to facilitate developing a case for international flights from Broome to other destinations. Development of new local tourism product, enhance opportunities for wider Kimberley destinations and visitor experiences. Increased visitor stay periods in Broome and provide an impetus for local build and employment opportunities.
To achieve these initial aims this report recommends the appointment of a consultant to consider a number of fundamentals to better advise the Chief Executive Officer, Committee and Council on pursuing such an endeavour for Broome as there is no agreed proponent at this time and the Shire of Broome does not have the technical knowledge of this component of the tourism industry.
Discussions that the Chief Executive Officer has had with prospective industry representatives indicates that there is an interest in considering such a project for Broome should the Western Australian Government consider granting a licence for a second Casino in Broome. Initial conversations indicate that it may not be a large scale development more a boutique casino with smaller numbers of tables and machines than capital city facilities though the market would need to be developed and may be part of other packaging of destinations by a developer.
While discussion has been circulating in the community about the development of a Casino for some years it is recognised that while there are economic opportunities there will also be criticism around the social disadvantages that an establishment may bring to Broome. These would include the impacts of gambling on individuals, attraction of the wrong cliental type to the facility and possible loss of identity for Broome brand.
Land opportunities are not discussed in this report though prime locations would be between Gantheume Point and Cable Beach should land be identified to suitable proponents. While some discussions on opportunities have taken place with individual land holders these have only been at a conceptual stage.
To ensure a level of appropriate due diligence is undertaken to investigate this proposal as an economic opportunity for Broome it is recommended that an independent report be commissioned to undertake a high level concept paper for the Economic Development Advisory Committee to consider and then make recommendations to Council.
The project scope for the concept paper to be the following;
The project will involve the development of a High Level Concept Paper to assist Council in making a decision as to whether a detailed assessment and analysis is required.
SCOPE
The concept paper will include the following items:
1. Overview of the gaming and casino market in Australia and the South East Asian Market.
2. The competitive landscape in Australia.
3. The regulatory environment in Western Australia and Australia and the steps required to achieve gaming functions.
4. The major market participants.
5. The dynamics of successful gaming markets and the regional / local success factors that contribute to such.
6. The success and benefits observed in other locations.
7. The likely project scope in terms of capital requirements.
8. The associated infrastructure and other project needs to facilitate the project.
9. A high level explanation of the economic benefits to the local area, region and State.
10. Likely opposition to be focussed.
11. The potential models available for delivering the project, including partnering models.
12. Risk assessment of the project.
13. Program of works required for project development should the project proceed.
14. Likely Shire funding commitment for the project to undertake further detailed business case for Broome, should the Council progress the project further.
15. Overall assessment of:
a. Advantages
b. Disadvantages
c. Benefits
d. Risks
CONSULTATION
No formal consultation process has been undertaken at this time. The report recommends an initial concept paper be developed and Council may choose a different level of engagement and consultation after considering the determinations of the concept paper.
STATUTORY ENVIRONMENT
Casino Control Act 1984
19. Minister may enter into agreement with respect to construction and establishment of casino complex
(1) Subject to this section, the Minister acting for and on behalf of the State and its instrumentalities may enter into an agreement with a public company, whether acting on its own behalf or as a trustee or in any other capacity, with respect to the construction and establishment of a new casino complex in the State, and may in such an agreement undertake not to approve under section 21(3) during a period specified in that agreement of an application for a casino gaming licence made by a person other than a party to that agreement.
(1a) The Commission shall, before the Minister enters into a casino complex agreement with a public company, carry out such investigations as it considers necessary or desirable for the purposes of that casino complex agreement and for the purposes of satisfying itself that the public company, and each close associate of the public company, is a suitable person to be concerned in or associated with the organization and conduct of the gaming operations of a licensed casino.
(2) Without limiting the matters that may be investigated by the Commission under subsection (1a), investigations made under that subsection shall include such investigations as the Commission considers necessary or desirable to inform itself of —
(a) the reputation and financial status of the public company and each close associate of the public company, and the financial status or proposed financial status and the structure of any trust or proposed trust of which the public company, or a close associate of the public company, is or may become the promoter or founder or trustee; and
(b) the reputation, financial status, and capacity to be concerned in or associated with the organization and conduct of the gaming operations of a licensed casino, of —
(i) each natural person; and
(ii) each director or other member of the governing body of, and each principal officer of, a body corporate,
intended by the public company, or believed by the Commission, to be concerned in or associated with the organization and conduct of the gaming operations of the licensed casino with which the casino complex agreement is concerned; and
(c) such other matters as may be prescribed.
(2a) The public company and the natural persons, directors or other members of a governing body, and principal officers, referred to in subsection (2) shall provide the Commission with such information and books —
(a) as the Commission requires for the purposes of an investigation carried out under that subsection; and
(b) as they are able to provide.
(2b) After having informed itself of the matters referred to in subsection (2), the Commission shall submit a report on those matters and on any other matters it considers relevant, together with its recommendations thereon, to the Minister.
(3) A casino complex agreement is not enforceable by any party thereto unless and until it has been ratified by an Act, and no action or other proceedings may be brought in relation to a casino complex agreement until it has been so ratified.
(4) A casino complex agreement shall not confer the right on any party thereto, or on a person referred to therein, to conduct games at the premises of the casino to which the casino complex agreement relates until a casino gaming licence is granted to that party and then only in accordance with the casino gaming licence.
(5) A casino complex agreement may be amended or terminated in accordance with its provisions.
[Section 19 amended by No. 10 of 1985 s. 29; No. 74 of 1987 s. 20; No. 24 of 1998 s. 13.]
Perth’s Crown Casino is managed through the development of a Casino (Burswood Island) Act as separate legislation. It is not known how a second Casino establishment within Western Australia would be licensed beyond the Casino Control Act and this information would form part of the information requested in the Concept Paper.
POLICY IMPLICATIONS
Nil
FINANCIAL IMPLICATIONS
Estimated costs to develop an initial high level Concept Paper in accordance with the proposed scope are within the realm of $20,000 to $40,000.
RISK
The following risks are considered in assessing this report;
1. Sectors of the community may focus on the negative implications of developing a Casino in Broome which may lead to controversy affecting the “Brand of Broome” during a recovery period of the tourism sector.
The frequency of the above is assumed to be POSSIBLE with a possible impact on the brand. However, this is considered an acceptable risk on the basis of ensuring fair community debate in relation to a proposal that could add significant value to the tourism product of Broome in a period when the town needs to reinvent its product due to other competing interests in the tourism sector. A do nothing approach may see an opportunity lost or a development to be located in another district such as Karratha. The Concept Paper scope has included disadvantages be independently assessed and reported on.
2. Possible conflicts within the Tourism Sector itself may see interested parties not wanting to develop a Casino facility in Broome due to increased completion or devaluation of existing tourism facilities.
The above risk is considered POSSIBLE though may be mitigated if it is identified that a proposed Casino would value add to the existing market and provide a new visitor experience, return to Broome visitations or may see additional stay opportunities and additional income derived from extra days in Broome and other experiences adding to the economy of the town. Further, the opportunities to develop international flights may also provide new opportunities for business (i.e. Agricultural/Aquaculture product) to develop new markets from Broome into Asia. These assumptions would need to be tested through a market assessment.
3. Possible relationship issues with tourism marketing partners such as Australia’s North West or Tourism WA Board may have different objectives for developing a Brand around a Broome experience and a Casino product may not fit in that proposed marketing mix.
The above risk is considered POSSIBLE and the initial Concept Paper would identify this level of risk to the Shire and community within its project scope.
STRATEGIC IMPLICATIONS
Our Place Goal – Help to protect the nature and built environment and cultural heritage of Broome whilst recognising the unique sense of the place:
Realistic and sustainable land use strategies for the Shire within state and national frameworks and in consultation with the community
Retention and expansion of Broome’s iconic tourism assets and reputation
Our Prosperity Goal – Create the means to enable local jobs creation and lifestyle affordability for the current and future population:
Affordable and equitable services and infrastructure
Affordable land for residential, industrial, commercial and community use
Key economic development strategies for the Shire which are aligned to regional outcomes working through recognised planning and development groups/committees
Our Organisation Goal – Continually enhance the Shire’s organisational capacity to service the needs of a growing community:
Sustainable and integrated strategic and operational plans
VOTING REQUIREMENTS
Simple Majority
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That Economic Development Advisory Committee recommends to Council: 1. That the Chief Executive Officer is authorised to seek quotes for the development of a high level Concept Paper investigating the initial consideration for the development of a Casino in Broome 2. That quotes be sought in accordance with the scope of works as detailed within this report.
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