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Governing for growth
Enabling a stronger Queensland economy
Economic framework statement
July 2013
The Department State Development, Infrastructure and Planning is responsible for driving the economic
development of Queensland.
© State of Queensland, Department State Development, Infrastructure and Planning, July 2013, 100 George Street,
Brisbane Qld 4000. (Australia)
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Contents
Foreword ......................................................................................................... i
Executive summary ........................................................................................ ii
Governing for growth—Enabling a stronger Queensland economy ................ 1
Economic and fiscal challenge ..........................................................................2
A framework for government intervention ....................................................... 6
Priority areas for action......................................................................................7
Simplifying business regulation .........................................................................8
Minimising impediments to business growth ...................................................12
Fostering economic growth and resilience ......................................................17
Enabling infrastructure for economic growth ...................................................22
Driving productivity growth in the public sector ...............................................26
Communicating the importance of economic development .............................29
The story so far............................................................................................. 32
Where to from here—Governing for future growth........................................ 33
Foreword
The Queensland Government is unashamedly pro-growth. It is only
through increased economic growth that we will provide sustained
jobs and prosperity for Queenslanders, and address the legacy of
debt that we inherited.
While we have taken the tough decisions to repair the state’s
finances we also understand that economic growth is vital if we are
to put the state’s books in order.
To deal with the terrible legacy of the previous Labor administration,
Queensland must have a decade of economic long term and
sustainable growth. Only by increasing the state’s economic output
will we rebuild the state’s finances and provide an improved
standard of living for Queenslanders.
That is why the Queensland Government is committed to driving growth of a four pillar
economy - through clear leadership, providing greater certainty and cutting costs of doing
business. This approach is vital to secure Queensland’s future competitiveness and the
prosperity of our communities.
Over the last year, the Queensland Government has taken major steps to create the right
conditions for business to flourish. We have focused relentlessly on those areas within the
government’s control – cutting red tape, streamlining planning and major project approvals,
cutting the cost of doing business and facilitating economic growth. We have also been
determined to do all we can to increase productivity within government. This is essential to
improve public services and contribute to the task of fiscal repair.
The increased confidence this approach has brought is reflected in latest economic data
where Queensland outperforms the rest of the nation. But we cannot afford to be complacent.
Governing for Growth sets out a renewed focus and determined actions across government
to enable growth.
The framework demonstrates a wholesale change in approach. It shows how government
can help to create jobs and grow the economy if we provide clear and consistent decisionmaking, tackle excessive cost and regulatory burdens on business and bring the community
on the journey with us. All too often in the past government has been an obstacle not an
enabler of economic growth.
Governing for Growth provides a stock take of actions completed and underway. These
actions set the foundations for long-term improvements in Queensland’s economic
performance.
We are determined to ensure that Queensland has the most attractive business environment
in Australia. In doing so, we will regain the state’s reputation as the number one place to
invest.
A great state with great opportunity.
The Honourable Jeff Seeney MP
Deputy Premier and
Minister for State Development, Infrastructure and Planning
Foreword
-i-
Executive summary
Alongside the task of fiscal repair, the Queensland Commission of Audit set out a
case for strong and decisive action to restore the state’s record of productivity and
economic growth. Our economic strength and prosperity into the future will be built
on the reforms we make now, and in the next few years.
Governing for Growth provides a framework for whole-of-government action to
support a stronger Queensland economy.
Queensland is a great state with great opportunity.
But how do we enhance our competitiveness in a global market where there is new
competition every day? How do we ensure the economy can grow and develop so
Government can re-invest to ensure the delivery of the infrastructure and services
Queenslanders need?
Many issues are impacting on our economy and business competitiveness,
including:

ongoing global economic uncertainty

fluctuating commodity prices and alternative sources of supply coming onstream

a relatively strong Australian dollar

skills gaps

rising labour costs and the costs of inputs

a tightening fiscal environment at all levels of government.
Often these are market-related or Commonwealth Government issues and well
beyond the control of the state government.
But what we are determined to do is to focus on those issues within our control.
So the question is: what can the Queensland Government do to lock in sustainable
economic growth?
Governing for Growth focuses on practical actions in those areas where the state
government can make a real difference. It is about growing the economy and
providing an environment where business and industry can prosper and create
wealth.
Executive summary
- ii -
Governing for Growth provides the basis for the state government to:

provide leadership and certainty so that business can invest with confidence

reduce the cost of doing business

ensure government is efficient and effective

work with business and industry to communicate to Queenslanders the
benefits of economic development.
To achieve this, government will focus its actions on six priority areas:

simplifying business regulation

minimising impediments to business growth

fostering economic growth and resilience

enabling infrastructure for economic growth

driving productivity growth in the public sector

communicating the importance of economic development.
Governing for Growth identifies actions the Queensland Government has already
delivered, along with a number of current initiatives to help drive long-term economic
growth. Case studies highlight the benefits that the state’s economic reforms are
bringing to Queensland businesses and communities.
Actions that remove constraints to growth or that actively promote productivity
improvements focus on reducing the cost of doing business and regulatory reform
across the four pillars of agriculture, resources, construction and tourism, and more
broadly:

boosting economic opportunities and productivity by reforming the way
infrastructure is planned, prioritised, funded and used

encouraging innovation and helping business access new and expanding
markets

seizing regional economic growth opportunities

working in partnership with local government and business to better
communicate the importance of economic development to the state’s
wellbeing.
Executive summary
- iii -
The next stage is to develop a more detailed whole-of-government action plan to
drive economic growth over the next decade. The action plan will be informed by
consultation with industry and the wider community and will support the long-term
vision set out through the Queensland Plan.
A key aspect of Governing for Growth is changing the culture across government
agencies so economic growth is encouraged and is clearly understood as a
Queensland Government priority.
Governing for Growth will ensure all government agencies play a full role in enabling
economic growth, and help to restore Queensland as the number one state in the
nation to start or grow a business.
Executive summary
- iv -
Governing for growth—Enabling a
stronger Queensland economy
Over the last decade, the state has offered one of the strongest growth rates of all
advanced economies. Queensland has a dynamic economy, with world-leading
resources in agriculture, mining and energy markets, an internationally recognised
science base and talented people and businesses. However, we face increased
international competition, significant cost pressures and a challenge to boost
productivity to ensure economic growth into the future.
Alongside the case for fiscal repair, the Queensland Commission of Audit urged
strong and decisive action to restore economic and productivity growth. Transforming
the role of government is necessary to address the major demographic, economic
and fiscal challenges faced by our communities and industries.
Faced with these challenges, ‘business as usual’ is not an option. The state
government must change the way it provides services to better meet the needs of
Queenslanders and create a more dynamic economy.
Since March 2012, the Queensland Government has undertaken significant work to
provide certainty for businesses and investors, reduce costs for industry and create
the right conditions for economic growth. There have been major reforms to fiscal
settings, planning reforms, cutting red and green tape and reducing timeframes for
major project approvals.
But this is just a start.
To seize market opportunities and address the challenges we face requires further
action. The state government will progress a systematic approach to identify and
develop practical actions to increase the productive capacity of the Queensland
economy. Governing for Growth sets out priority areas for economic reform to create
the conditions for the private sector to invest, innovate, grow and create new wealth.
It is important to recognise that the private sector is the engine of economic growth.
However, government shapes the Queensland economy with its decisions every day
– in areas such as planning, regulation, infrastructure and spending. The
Queensland Government plays a central role in shaping the conditions for private
sector success and addressing the barriers and impediments faced by industry.
Clear leadership and stable and certain decision-making are needed if Queensland
is to compete for business investment against lower cost destinations.
Governing for Growth sets the foundations for long-term, sustainable economic
growth.
Governing for growth—Enabling a stronger Queensland economy
-1-
Economic and fiscal challenge
The global and Queensland economies have been going through major structural
changes. These have been driven by the rapid industrialisation of China, India and
other Asian economies, and also as a result of the Global Financial Crisis (GFC) and
its aftermath.
Over the past decade, our economy has benefited from higher global demand for our
natural resources. This has led to a shift of capital and labour into the mining,
exploration, mining services, and construction sectors. We are now experiencing
another shift as the economy transitions from investment in major resource sector
projects to the production and export phase. Our economy has also absorbed
massive shocks from natural disasters in recent years. The total cost of natural
disasters since 2010 now stands at nearly $14 billion.
Against this backdrop, the Commission of Audit—and the 2013–14 State Budget—
identify several key challenges confronting the Queensland economy. These
challenges include the rise of new competitors in the global economy, a high
Australian dollar and at home a legacy of expanding regulatory and tax burdens.
The Commission of Audit set out the challenge for Queensland—“to lift its
productivity performance to sustain the economic growth which will improve living
standards for its citizens.”
The Commission of Audit also found that the Queensland economy over the last 25
years has been driven largely by population growth, increased workforce
participation and the development of the state’s vast mineral resources. We cannot
rely on these factors alone to drive its economic growth over the next 25 years and
beyond.
The recent economic performance of Queensland and Australia has been marked by
a decline in productivity. Notably, Queensland’s productivity has fallen further than
Australia’s and is now lower than it was a decade ago.
Over the four years to 2011–12, Queensland’s multi-factor productivity (a
comprehensive measure of productivity that takes into account labour and capital
inputs) has declined two per cent in average annual terms, while the rest of
Australia’s remained unchanged.
Based on the scenarios developed for the Commission of Audit, long-term economic
projections show that Queensland’s per capita economic growth rate over the next
40 years is likely to be significantly lower than it was over the last 25 years. Improved
productivity performance is vital if we are to improve living standards and manage
the pressures that come with a growing and ageing population.
Without a lift in productivity, a substantial budget deficit is also likely to re-emerge
beyond 2015–16, affecting the cost of living and quality of public services. This
makes a clear argument for further, sustained policy action.
Governing for growth—Enabling a stronger Queensland economy
-2-
The government has set out a clear fiscal strategy to tackle the deficit it inherited.
The strategy is guided by four principles:
(i)
stabilise then significantly reduce debt
(ii)
achieve and maintain a General Government sector fiscal balance by 2014–
15
(iii)
maintain a competitive tax environment for business; and,
(iv)
target full funding of long-term liabilities, such as superannuation in
accordance with actuarial advice.
Governing for Growth complements this fiscal strategy. It deals with the growth side
of the ledger, setting out a clear framework and actions to support the economy and
drive productivity growth.
Queensland economic outlook
The 2013–14 State Budget forecasts gross state product (GSP) growth at
3 per cent per annum for 2013–14 and 2014–15, and 6 per cent for 2015–16 (see
Figure 1).
Figure 1
Contributions to growth in Queensland’s gross state product1
Source: Budget Strategy and Outlook 2013–14, Queensland Treasury and Trade
Governing for growth—Enabling a stronger Queensland economy
-3-
For three years, business investment has been boosted by substantial investment in
three liquefied natural gas (LNG) projects. During their construction phase these
projects have a combined capital spend exceeding $60 billion. This investment is
expected to peak in 2013. With no projects of similar size currently committed, the
staged completion of these three mega-projects will see business investment fall
each year from 2013–14 to 2015–16.
However, this unwinding of the LNG investment masks a forecast improvement in
investment conditions outside the resources sector. Household consumption is
expected to strengthen over the coming period.
The ramp up in LNG production will drive growth in overseas exports by 23.25 per
cent in 2015–16. Combined with the strong domestic sector, this should boost
economic growth to six per cent in 2015–16.
The forecast strengthening in the household sector is expected to drive a recovery in
employment growth from 2013–14 onwards and a steady improvement in the
unemployment rate from six per cent in 2013–14 to 5.5 per cent in 2015–16.
The 2013–14 State Budget continues the task of fiscal repair. It sees debt in the
General Government sector rising by $9.4 billion over the forward estimates but,
importantly, stabilising in 2015–16. A fiscal deficit of $7.7 billion is budgeted for
2013–14, and a modest $244 million deficit in 2014–15. The projected fiscal position
continues to improve over the remainder of the forward estimates, with fiscal
surpluses exceeding $1 billion projected in 2015–16 and 2016–17 (see Figure 2).
Figure 2
General Government sector fiscal balance
Source: Budget Strategy and Outlook 2013-14, Queensland Treasury and Trade
Governing for growth—Enabling a stronger Queensland economy
-4-
The government has published A Plan – Better Services for Queenslanders. This
accepts the majority of recommendations in the Commission of Audit’s final report.
Government is committed to improving the quality and quantity of frontline services,
restoring the state’s fiscal position and crucially, taking action to boost productivity
growth.
Governing for growth—Enabling a stronger Queensland economy
-5-
A framework for government
intervention
Through the Queensland Plan process, the government is engaging with the
community to develop a shared vision for the state for the next 30 years. This vision
will identify local and state-wide priorities and guide future activities of all levels of
government, business and the community. The vision for Queensland’s economic
future is a pivotal part of the Queensland Plan and will guide and shape actions
developed under this framework.
Productivity gains will be central to long-term prosperity and sustained jobs growth in
Queensland. The Commission of Audit emphasised the urgent need for action and
set out the roles that government should play in the economy:

setting the legal and institutional framework in which the private sector
operates (which can be conducive to economic growth or otherwise)

as an employer and purchaser of goods and services

through efficient and effective uses of its revenue to build physical and
human capital

to correct for market failures.
While the private sector is the engine of the economy, the Queensland Government
will create a positive environment for business growth and, where necessary, deliver
catalytic actions to unlock economic opportunities. Governing for Growth provides
the framework for how and where government will play these roles.
Many of the key issues confronting Queensland’s economy such as global
uncertainty, fluctuating commodity prices, a strong Australian dollar, and rising labour
and input costs are outside the control of state government. Governing for Growth
addresses those factors that the state government can control. First and foremost, it
is about leadership - making the case for growth, providing certainty and stability so
business can invest with confidence, and reducing burdens on industry.
The government is determined to make it easier to do business in Queensland. This
starts with a whole-of-government commitment to support economic growth. Across
all agencies, there will be a renewed focus on boosting productivity, reducing costs
on business and providing clear and predictable decision-making. Government will
actively facilitate major industry projects and provide direct access to key decisionmakers.
The Commission of Audit found previous government assistance to industry was
often poorly targeted, with limited evidence of economic impact or value for money.
A framework for government intervention
-6-
The waste of the previous government resulted in missed opportunities to invest in
the infrastructure that would have provided catalytic economic benefits.
The state government will ensure that spending on goods, services and
infrastructure delivers greater productivity benefits. This demands that decisions take
into account the opportunity to better deliver economic outcomes and promote
innovation.
In future, government action to support industry will need to demonstrate that it:

addresses a clear market or system failure

is necessary and can make a difference at an industry, regional or
economy-wide scale

will be cost-effective.
Boosting productivity growth will deliver sustained benefits to Queensland
communities. While there is no silver bullet for the challenge of productivity growth,
the Productivity Commission1 recommended a policy approach that embraces both
the drivers and enablers of business performance. These include policies around
human capital, innovation, infrastructure, regulatory restraints, and the business
environment.
Priority areas for action
Governing for Growth identifies six priority areas for action to better support
economic growth in the state:

simplifying business regulation

minimising impediments to business growth

fostering economic growth and resilience

enabling infrastructure for economic growth

driving productivity growth in the public sector

communicating the importance of economic development.
1
Productivity Commission, Gary Banks, Productivity Policies: the ‘to do’ list, Paper presented at the
Economic and Social Outlook Conference, ’Securing the Future’, November 2012.
A framework for government intervention
-7-
Simplifying business regulation
Regulation can promote competition, protect consumers and bring a range of
economic, social and environmental benefits. However, when poorly designed, it can
constrain growth by imposing additional costs on businesses or limiting their capacity
to start-up or grow.
Over recent decades, the volume of regulation in Queensland and Australia has
grown rapidly. In many cases, regulation has proven ineffective in achieving the
desired policy objective. Frequently, the costs imposed outweigh the benefits. The
Queensland Government will develop a regulatory environment that provides
certainty for businesses and the public and is conducive to business growth and
innovation. There will be a systematic approach to remove unnecessary red tape.
Delivered and current actions
Whole of government Regulatory Management System:
Delivered actions
 Established the independent Office of Best Practice Regulation (OBPR) within the
Queensland Competition Authority (QCA) to implement a 20 per cent reduction target in
the burden of regulation.
Current actions
 Implement and achieve the 20 per cent reduction in regulatory burden.
 Require Regulatory Impact Statements (RIS) if the proposal is deemed to have a
significant impact on business, the community or government.
 Provide up to three options to reduce or ‘offset’ the regulatory burden of any proposal that
imposes new regulations or procedures on small businesses.
Green tape reduction
Delivered actions
 Established the Green tape Reduction project to simplify and improve environmental
licensing processes.
Regulatory review:
Current actions
 Take forward a program of zero-based regulation reviews through the QCA.
 Develop actions to implement key findings of the Building and Construction Industry
Payments Act 2004 (BCIPA) review.
 Develop a new building code to reduce red tape for homeowners and simplify an
unnecessarily complex approvals process. The code will remove superfluous layers of
regulation and allow a timely and cost effective appeals process.
 Bring forward the review of the Strategic Cropping Land (SCL) legislation.
 Review the portable long service leave scheme (QLeave) to ensure that workers have
adequate entitlements, and that liabilities are appropriately calculated.
 Enable conversion of exploration gas wells to water bores where suitable, through the
assent of the Land, Water and Other Legislation Amendment Act 2013 on 14 May 2013.
A framework for government intervention
-8-
Delivered and current actions
Resources sector:
Delivered actions
 Established the Resources Cabinet Committee to encourage investment and support the
competitiveness of the resources sector in Queensland by streamlining approvals and
cutting red tape.
 Developed the Coal Seam Gas Engagement and Compliance Plan to achieve a balance
between the interests of industry, rural landholders, regional communities and the
environment.
 Introduced amendments to the Environmental Protection Regulation 2008 to help
proponents ensure their Environmental Management Plans provide the right information
about coal seam gas (CSG) water management to prevent delays in granting
environmental authorities.
 Reduced red tape for small-scale alluvial mining.
Current actions
 Streamline and reduce by over 50 per cent, legislative complexity through the Modernising
Queensland’s Resources Legislation program by 2016.
 Undertake the post-implementation review of the Petroleum and Gas Safety and Health
Fee to assess its impacts.
 Finalise the comprehensive review of the Queensland Government’s approach to
regulating the CSG industry.
Environmental management:
Delivered actions
 Amended the vegetation management framework to reduce the regulatory burden on
landholders, business and government, while continuing to protect and manage
Queensland’s native vegetation resources.
Current actions
 Review the Queensland Government Environmental Offsets Policy, which will replace
existing issue specific biodiversity offset policies.
Queensland is competing with other states and countries for a limited pool of
international investment in new resource and energy projects. The regulatory
environment and costs of doing business are major determinants of where this
investment occurs. Capital investment in resources exploration and development can
often be stalled by excessive red and green tape.
The Queensland Government established the Resources Cabinet Committee to drive
regulatory reform and promote investment in resource exploration and production.
The work of the committee has already delivered significant reductions in red and
green tape that impeded profitability in the resources sector.
A framework for government intervention
-9-
Case study: Green Tape Reduction
The Environmental Protection (Greentape Reduction) and Other Legislation Amendment
Act 2012 simplified a range of environmental licensing procedures and was the most
significant reform in more than a decade. These changes streamlined the application and
approval processes under the Environmental Protection Act 1994, and removed licensing
requirements for 20 environmentally relevant activities. They also introduced a new
category of small scale mining activity that does not require an environmental authority.
The reforms do not lower environmental standards but better match the approval
requirements with the actual level of environmental risk of particular activities.
These greentape reduction measures came into effect in April 2013 to deliver significant
benefits to both government and business. In total, the savings to businesses and
government are estimated at $20 million through reducing administrative costs, as well as
the removal or lowering of application and annual fees. These reductions mean that
businesses can do what they do best, getting on with growing the economy and generating
jobs for Queenslanders.
Government regulation imposes both direct and indirect costs on business. Direct
costs include the time businesses are required to set aside to attend to regulatory
paperwork or apply for permits. They also include the costs of hiring external experts
to do regulatory compliance work, and any government fees and charges imposed
on businesses. Indirect costs arise where regulations distort business decisions,
reduce flexibility or unduly impact on investment spending.
Regulations can be state-wide and apply to all businesses in Queensland, such as
building and planning laws, or be specific to industry sectors or government owned
corporations that operate in the electricity, water and transport sectors.
Improving the efficiency of regulatory systems can make a big difference to business
innovation and growth. Cutting red tape brings a number of productivity benefits by:

allowing businesses the flexibility they need to make productivity-enhancing
changes and investment to their products and services, processes or
organisational models and work practices

helping businesses access new markets and supply chains

improving the ease of market entry, leading to increased competition,
innovation and choice for consumers.
This helps to grow and sustain jobs in Queensland and also brings downward
pressure on prices for consumers.
Business surveys suggest that some state regulations – such as those applying to
occupational health and safety, workers compensation and building and construction
activities2 - are among the most time consuming for business. The most costly stage
of the compliance process is the ‘cost of money’ incurred while waiting for regulatory
2
Ai Group and Deloitte National CEO Survey 2011: Business Regulation, September 2011.
A framework for government intervention
- 10 -
decisions to be made. Close to 70 per cent of businesses surveyed for the Australian
Industry (Ai) Group and Deloitte National CEO Survey 2011 reported a rise in the
direct cost of complying with regulations over the past three years, while
approximately 75 per cent expected further increases over the next three years.
Business regulation, including its costs, was also highlighted as a potential inhibitor
of growth in the 2013 Ai Group National CEO Survey. It was noted as a ‘growth
blocker’ by 20 per cent of miners, 14 per cent of services businesses and nine per
cent of manufacturers and construction firms.3
The Queensland Government is committed to cutting red tape by 20 per cent and
simplifying how business is done in Queensland. Achieving this target will particularly
benefit small businesses that are least able to absorb the costs imposed by
regulation. More than 300 red tape reduction reforms are in train. Many of these
reforms are aimed at streamlining regulatory processes and reducing compliance
and reporting requirements, levies and charges for smaller firms.
3
Ai Group National CEO Survey 2013: Business Prospects in 2013, February 2013
A framework for government intervention
- 11 -
Minimising impediments to business growth
Businesses today face a range of challenges. Global economic uncertainty, a strong
Australian dollar, cautious consumers, red tape burden, skills and labour supply
issues, and the increasing costs of doing business all impact on productivity and
business growth. Some factors, such as exchange rates and federal taxes, are
largely beyond the control or influence of state governments.
The Queensland Government will continue to work in partnership with industry to
minimise impediments to business growth. Significant progress has already been
made to address impediments identified by businesses and peak bodies. This
includes reforms to cut costs and complexity of planning, zoning and development
assessments and to streamline major project approvals. Other key areas, including
skills and labour, business capability and growth are also being addressed.
Delivered and current actions
Costs of doing business
Delivered actions
 Lowered payroll tax by increasing exemption threshold from $1 million to $1.1 million and
as a result, 90 per cent of Queensland employers are exempted from payroll tax.
 Conducted the Central Queensland Water in Mines pilot.
Current actions
 Implement further reform to payroll tax by 2015.
 Expand the Water in Mines pilot scheme catchment wide for the 2013-14 wet season as an
interim step towards a market-based mechanism.
Planning, zoning and development assessments
Delivered actions
 Implemented planning reform including State Planning Policy and State Assessment and
Referral Agency to facilitate economic development and improve efficiency through
streamlined processes.
 Established Economic Development Queensland to facilitate development through land
and development areas.
 Prepared draft regional plans for Darling Downs and Central Queensland.
Current actions
 Replace the Sustainable Planning Act 2009 with a new act that is less prescriptive and
provides better service development outcomes.
 Review the Infrastructure Charges Framework to introduce a more balanced infrastructure
charging framework that is equitable, transparent and certain.
 Review the South East Queensland Regional Plan to align it with the government’s policy
and planning reform agenda to better deliver planning to ensure the state’s continued
growth and prosperity.
Streamlining major project approvals
Delivered actions
 Reduced the timeframes for major project approvals through the Office of the CoordinatorGeneral to secure and speed up investment projects.
Current actions
 Streamline the EIS process and develop generic terms of reference.
A framework for government intervention
- 12 -
Delivered and current actions
 Develop clear and consistent guidelines for Social Impact Assessment supported by
improved data to improve the management of impacts and reduce costs for industry and
local government.
Innovation
Current actions
 Develop the Queensland Science and Innovation Action Plan to ensure the supply of
demand driven science and remove impediments to business innovation.
 Engage with the most innovative businesses to hear what they need from government to
boost innovation.
Skills and labour
Delivered actions
 Allocated $86 million to the creation of 10 000 additional apprenticeship places over
six years.
 Refocused Department of Education, Training and Employment regional offices to provide
training assistance.
Current actions
 Government is implementing key recommendations of the Skills and Training Taskforce
report to strengthen Queensland’s vocational, education and training sector.
 Progress skilled and business migration reforms to encourage entrepreneurship,
competition and address key skills gaps in the Queensland economy.
Business capability and growth
Delivered actions
 Developed and released the Small Business Action Plan 2013–15 to help small
businesses grow and prosper.
Current actions
 Continue to implement Mentoring for Growth to facilitate small businesses to capitalise on
growth opportunities.
 Expand the Business and Industry Portal to provide businesses with greater time and
money savings.
Costs of doing business
KPMG produces an annual report that benchmarks the relative costs of doing
business in 14 countries in the Americas, Europe, Asia Pacific and high-growth
countries. This demonstrates that Australia is a high-cost business location. These
costs have increased since 2010, which has seen Australia’s ranking drop from three
in 2010 to eight in 2012 (out of the nine mature countries). Cost trends included an
11 per cent currency appreciation against the US dollar as well as increases in
industrial facility costs and other costs including freight and electricity rates.
Figure 3 provides a comparison across a range of cities in Europe, Asia Pacific
(including Brisbane) and high-growth countries including Brazil, Russia, India and
China.
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Figure 3
Benchmarking International Business Costs, KPMG, 2012
120
100
Cost Index
80
60
40
20
Europe
Asia Pacific
MATURE
United States of
America
Moscow
Mexico City
Mumbai
Shanghai
Sao Paulo
Montreal
Toronto
Los
Angeles
San
Francisco
Chicago
New York
Tokyo
Osaka
Sydney
Melbourne
Brisbane
Manchester
London
Amsterdam
Rome
Frankfurt
Berlin
Paris
0
Canada BrazilChinaIndiaMexico
Russia
HIGH GROWTH
Source: KPMG, Competitive Alternatives 2012, Note: Business costs are estimated by KPMG modelling of
representative business costs across 19 industries and include 26 individual cost components.
These increases in the cost of doing business have also been seen in the resources
sector, a key pillar of the Queensland economy.
Case Study: Planning Reforms
Since coming to office, the government has worked to set a framework and create the conditions for
business to grow, invest and create jobs with confidence and certainty. Government has already
delivered a number of reforms to restore efficiency, consistency and certainty to the planning and
development system, including:

draft Statutory Regional Plans for the Darling Downs and Central Queensland

progress on a single State Planning policy, reducing from 14 confusing and contradictory
state policy documents to one document, which provides clarity on the state’s interests in
planning and development

a review of referral triggers contained in the Sustainable Planning Regulation 2009 which
has seen a significant reduction in the number of referral triggers and the number of
development applications required to be referred. Two rounds of reductions will account for
around 2500 referrals per year.
Feedback from the Government’s inaugural Planning Forum in March 2013 indicated overwhelming
support for reform of the current Sustainable Planning Act.
The government will pursue fundamental reform of the state’s planning system through a once-in-ageneration overhaul of planning laws to boost Queensland’s property and construction sectors. New
planning legislation will be introduced into Parliament early next year.
The purpose of the new legislation will be to enable development. It will drive a major transformation
of the state’s planning system and culture from its current approach, which is stifling development.
The principle underpinning this is to simplify the state’s land use planning, and development approval
regulations and prescriptions. This will greatly assist local governments to better plan for their
communities, without the constraints of an overly burdensome and prescriptive approach to their
planning schemes
This will benefit the community, councils and industry, and enable the government to get on with
developing and creating jobs.
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Case study: Major Projects Approvals
Delays in the major project approvals process can impose unnecessary costs on proponents.
The process itself may not be achieving its desired regulatory outcome. One of the top
priorities of this government is to fast-track the approvals process. As of end of June 2013, the
government had made 161 statutory decisions. This contrasts with 55 made in the equivalent
65-week period prior to April 2012 and is a decision rate nearly three times greater than the
previous administration.
The Office of the Coordinator-General continues to deliver decisions that will progress
significant economic projects. Currently, 29 projects are being assessed with a total capital
cost of $69 billion, an estimated 32 000 construction jobs and a projected 23 000 operational
jobs. The statutory decisions relate to multi-billion dollar projects at various stages of
assessment to ensure that proper account is taken of all potential environmental, economic
and social impacts. Assessment times for the stages of the environmental impact statement
process have been reduced by 285 business days or by 54 per cent when compared to the
four-year historical average of 619 days. The reduced timeframes for assessment bode well for
attracting future investment to our state.
A Fast-Tracking Taskforce has been set up in the Office of the Coordinator-General to identify
ways to speed up and streamline approvals processes. A 43-point action plan developed in
conjunction with industry, and federal and local government has been implemented.
The Queensland Government has provided a detailed submission to the Productivity
Commission, which is currently undertaking a study to benchmark Australia’s major project
development assessment and approvals (DAA) processes against international best practice.
The Productivity Commission’s draft findings are expected by the end of July 2013 with a final
report completed by the end of December 2013.
Ease of doing business
The World Bank’s 2013 Ease of Doing Business study ranks Australia favourably
(10 out of 185 countries and 7 out of 31 OECD high-income countries) for ease of
doing business. This highlights that while we are a relatively high-cost international
location, the ease of doing business here makes the nation a favourable international
location. The key to encouraging more business activity and fostering a productive
business environment is to continue to minimise the impediments to business growth
in Queensland.
The Queensland Government will continue to take action to address impediments
within its control. In addition, we will advocate to the Australian Government for:

bilateral arrangements that prevent duplication and unnecessary costs,
delays or uncertainty

micro-economic reforms at the Commonwealth level that will have significant
impacts on productivity and the competitiveness of Queensland businesses.
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Case study: State Assessment and Referral Agency
On 1 July 2013, the Queensland Government launched the State Assessment and Referral
Agency (SARA). SARA establishes the Department of State Development, Infrastructure and
Planning (DSDIP) as the single lodgement and assessment point for all development
applications where the state has jurisdiction under the Sustainable Planning Act 2009 (SPA).
SARA delivers a coordinated, whole-of-government approach to the state's assessment of
development applications, providing a simpler, fairer development assessment system. It will
be managed regionally by DSDIP regional centres. This system is unique in Australia and
moves Queensland closer to the goal of implementing the best planning system in the nation.
Some of the many benefits of SARA include:

a single agency lodgement and assessment point for development applications, where the
state has a jurisdiction

a final decision maker to ensure no 'unreasonable' requirements are imposed on
applicants.
The outcome will be a more efficient system that cuts costs and time for the applicant.
SARA is supported by MyDAS—a new online system that allows an applicant to prepare and
lodge or refer applications to DSDIP. MyDAS will provide:

online lodgement of development applications and tracking through the Integrated
Development Assessment System (IDAS) process

access to and assistance with preparing IDAS forms

integration with the SARA online mapping system

electronic payment of fees.
SARA will contribute to the government’s key priority to create the most efficient and effective
planning and development assessment system in Australia.
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Fostering economic growth and resilience
The last decade has seen unprecedented economic shocks. The prolonged effects
of the GFC continue to beset many economies and capital markets. We cannot
afford to be complacent and assume the growth levels of the past will continue into
the future. Already we are seeing adjustments in key industries such as mining.
Policies need to reflect this challenging environment where international financial
volatility, debt crises and geopolitical uncertainties are becoming more prevalent.
The severity and recurrence of natural disasters have further impacted on the
operations and productivity of key supply chains in Queensland. Against this
backdrop, it is crucial to focus on policies that foster economic growth and resilience
to build a stronger Queensland economy.
The government has demonstrated its focus on growing Queensland’s economy,
rebuilding after natural disasters and making communities more resilient for the
future. The state is determined to diversify the Queensland economy, its four pillars
and their associated supply chains.
Delivered and current actions
Growing a four pillar economy
Delivered actions
 Developed and released Queensland’s Agriculture Strategy to double the value of
agricultural production by 2040.
 Complete and release the Agricultural Land Audit Report.
 Strengthened the Geology Survey of Queensland’s ability to provide information about
development potential and exploration to attract investment.
 Developed new policies to enable the development of uranium mining and oil shale
industries under clear and robust environmental conditions.
 Responded to the Uranium Mining Implementation Committee’s recommended best
practice policy framework for developing a uranium mining and export industry in
Queensland.
 Established the $15 000 Great Start Grant to drive growth in Queensland’s residential
construction market.
 Established a construction industry ‘go-to’ person to act as a conduit between the
construction and property industries and government, to assist in resolving industry-wide
issues and encourage development.
 Developed the DestinationQ Blueprint 2012–15, which outlines the key actions for
government in the tourism industry over the next three years.
 Established the Tourism Investment Attraction Unit to assist in achieving the government’s
goal of doubling annual overnight visitor expenditure by 2020.
 Established the $8 million Attracting Aviation Investment Fund to secure new aviation
business and routes into Queensland.
Current actions
 Implement the actions identified in Queensland’s Agriculture Strategy across the four key
pathways to growth including resource availability, productivity, markets and production
costs.
 Work with industry to develop supply chain productivity in North West and Central
Queensland.
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Delivered and current actions
 Identify industrial land to support mining, supply chains, freight and logistics routes.
 Set up the independent Queensland Building and Construction Commission as the new
industry regulator to improve industry governance.
 Implement the initiatives identified by DestinationQ Blueprint 2012-15.
 Developing a framework to support the sustainable development of the shale gas industry.
 Develop a 20 year tourism strategy, in partnership with industry, to help reach the growth
target of doubling annual overnight visitor expenditure in Queensland to $30 billion by
2020.
Promoting growth opportunities
Delivered actions
 Established Defence Industries Queensland to support the growth of the defence sector.
 Developed and released the Small Business Action Plan to help capitalise on growth
opportunities across Queensland’s small businesses and regions.
Current actions
 Establish Trade and Investment Queensland to facilitate trade and investment and
capitalise on growth opportunities in emerging and established export markets.
 Prepare and publish a Defence Industries Roadmap to drive growth in the sector.
 Work with industry to develop a plan to seize growth opportunities in the food processing
and manufacturing sector.
 Undertake a Property and Asset Utilisation Review to identify all government land assets,
especially surplus land that could be used more productively to support economic growth.
Promoting economic resilience through infrastructure and strong communities
Delivered actions
 Allocated an initial $40 million to the Betterment Fund to assist local governments
recovering from natural disasters.
 Established the Royalties for the Regions program and committed $495 million over four
years to invest in regional community infrastructure, roads and flood mitigation projects.
Current actions
 Continue to deliver recovery initiatives to foster economic resilience.
 Continue to support community, road and flood mitigation projects through the Royalties
for the Regions program.
Growing a four pillar economy
Queensland has a great natural advantage in our export industries. We grow healthy
and safe food in a region that is increasingly demanding food security. We supply
world class primary products, our research and education industries take knowledge
to the world and our manufacturers use Queensland’s know-how to deliver products
to the world. The Queensland Government is committed to growing the four pillar
economy – resources, agriculture, tourism and construction.
The three Queensland LNG plants on Curtis Island are pioneers in converting CSG
to LNG for export. The industry has reached a new peak of almost 30 000 workers,
with LNG companies injecting more than $20 billion into businesses across the state.
DestinationQ is a new partnership between the Queensland Government and the
tourism industry. The main goal of DestinationQ is to make Queensland Australia’s
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number one tourist destination, and in the medium-term, achieve the national target
of doubling visitor expenditure by 2020.
Case study: Queensland’s Agriculture Strategy
The Queensland Government has released Queensland’s agriculture strategy, a
strategy to double Queensland’s agricultural production by 2040. The aim is to grow
agriculture as one of the four pillars of the Queensland economy.
The government’s 2040 vision for agriculture is for an efficient, innovative, resilient, and
profitable sector, based on four key pathways:
 securing and increasing resource availability
 driving productivity growth across the supply chain
 securing and increasing market access
 minimising the costs of production.
These key pathways are the foundations required for sustainable and ongoing growth
of the sector in terms of increasing production and value.
Similarly, the state has a vision to double Queensland’s agricultural production by
2040. To achieve this vision, the government has endorsed four key pathways to
growth: securing and increasing resource availability; driving productivity growth
across the supply chain; securing and increasing market access; and minimising the
costs of production.
The government also supports the continued growth of a strong, sustainable and
socially responsible property and construction sector in Queensland.
Promoting growth opportunities
Queensland is world famous for its mining resources and expertise, but there is
much that remains to be discovered about the geology and mineral potential of the
state. In response, the government will provide new funding of $30 million over three
years for a range of initiatives to upgrade the Geological Survey of Queensland. The
government has also recently announced it will allow uranium mining to recommence
and has set out policies for the shale gas and oil shale industries, governed by
world's best practice and strict environmental, safety and approval processes.
Alongside the four pillars, the government is promoting new growth opportunities in
high-value sectors such as defence, life sciences and engineering services. To
provide new impetus to this work government has established Defence Industries
Queensland, appointed a Defence Envoy and will shortly launch a new Trade and
Investment agency.
There are opportunities arising from a fast-growing middle class in the developing
world. Queensland needs to be outwardly proud and promote its achievements and
unique characteristics—effectively pushing ‘Brand Queensland’ to the world. Now,
more than ever, it is vital that Queensland businesses and industries maintain and
develop their relationships with our major trading partners. Importantly, the
government will focus on assisting small to medium enterprises to establish footholds
in growth markets across Asia and the Americas.
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Case study: Economic Development Queensland
The Economic Development Act 2012 was passed late last year to facilitate economic
development by helping councils and the state make available land for economic development
that may not have been possible under other legislation or council planning schemes. The Act
helps cut the regulatory burden that has been constraining the state’s property and
construction sector.
The Act established Economic Development Queensland (EDQ) to facilitate and fast track
economic development and development for community purposes across Queensland. EDQ
has the ability to deal commercially in land, property and infrastructure and has responsibility
for planning and development activities. Unlike the former Urban Land Development Authority
(ULDA), EDQ can facilitate urban, residential, industrial, and retail and commercial
developments. This has allowed the government to facilitate projects that were previously out
of scope, including the Commonwealth Games Village.
Stakeholders benefit from the introduction of Priority Development Areas (PDAs) which fasttrack development for specific sites and purposes if there is an overriding economic or
community need to start the proposed development quickly.
EDQ has the potential to generate economic returns to communities that were previously held
back by regulatory hurdles. Four PDAs were declared between February and July 2013, some
of which may not have been possible under the ULDA Act. The 17 Urban Development Areas
declared under the ULDA Act have been transitioned to PDAs and can now facilitate a much
broader range of economic and community development activities. A PDA has also been
proposed for the Maroochydore City Centre to help it become a focal point for regional
business, community services and employment on the Sunshine Coast. This will provide an
opportunity to reinvigorate the region through residential, commercial, retail and mixed-use
development. As a result, the proposed PDA has the potential to make major contributions to
the Sunshine Coast and state economies by boosting tourism and local businesses and
creating more jobs for Queenslanders.
EDQ aims to generate over $240 million in private investment through land sales in 2013–14.
Over the medium term, the establishment of EDQ in some instances is expected to bring
forward approvals for a range of development projects by as much as two years. This should
assist with spurring future investment and economic growth in the state.
Promoting economic resilience
The government is committed to promoting economic resilience through
infrastructure and strong communities. The government has established a
Betterment Fund to improve the resilience of flood-damaged community
infrastructure by rebuilding it to withstand future natural disasters. The Royalties for
the Regions program is also investing in floodplain security projects to support local
governments in building the resilience of their economies.
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Case study: Royalties for the Regions
Royalties for the Regions is designed to ensure that regional communities receive real, longterm royalty benefits through better planning and infrastructure investment. From 2012, the
Royalties for the Regions program will invest $495 million over four years, and $200 million
each year beyond that, in community infrastructure, roads and flood mitigation projects.
Round 1 of Royalties for the Regions was piloted as a competitive funding program with a twostage assessment process comprising an expression of interest and a business case.
Fourteen local councils experiencing the most acute growth pressures arising from resource
development were eligible to apply for funding.
Eighteen successful projects have been announced which will see over $78 million invested in
regional communities. This includes over $49 million in royalties program funds, alongside $9.7
million from industry, $6.7 million from councils and $12.4 million from other state and
Australian Government agencies.
An evaluation of Round 1 found the program was very well received. Stakeholders supported a
change to the geographic scope of the program which has resulted in eligibility being
expanded to include all local governments outside of South East Queensland, but still including
Toowoomba Regional Council.
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Enabling infrastructure for economic growth
Productivity improvements are a pre-condition for a stronger Queensland economy.
For businesses, increasing productivity is largely about having the right connections
with the markets they supply and those that supply them. Economic infrastructure
makes these supply chain and labour market connections and is vital to the
competitiveness of the state. Economic infrastructure includes physical transport
assets such as road, rail, air and sea and utilities such as water, power and
broadband. Social infrastructure, including health and education, delivers the
community amenity required to maintain liveability and to attract new residents to live
and work. It enables communities to manage growth and to prosper.
How economic infrastructure is planned, prioritised, funded and delivered has
significant implications for productivity outcomes, economic growth levels, and ability
to meet the service needs of a growing Queensland population. The same can be
said for how existing infrastructure is used, maintained, expanded and recycled.
The Commission of Audit identified the need to do more with less in terms of
infrastructure. The private sector will play an increasing role in financing, delivering
and operating economic infrastructure, often in partnership with the public sector.
The government’s first major private sector development, 1 William Street, stands as
an example of the new approach.
Delivered and current actions
Infrastructure planning, prioritisation, coordination and strategic decision-making
Delivered actions
 Established Infrastructure Queensland
 Established Projects Queensland within Queensland Treasury and Trade to enhance the
government’s infrastructure development, assessment and procurement processes and
increase private sector participation.
 Developed and released the Galilee Basin Infrastructure Framework, which sets out a
clear policy for the coordinated development of infrastructure in the Galilee Basin –
providing greater certainty for landholders and industry.
 Commenced the 1 William Street project.
Current actions
 Finalise a whole-of-government economic infrastructure prioritisation framework.
 Develop and release a 10-year infrastructure plan and an infrastructure pipeline that
provides the private sector with the confidence to plan and invest.
 Finalise and release the Infrastructure Frameworks for Surat and the North West Minerals
Province.
 Consider a broad range of options to encourage contestability and attract more entrants
into Queensland’s infrastructure market.
 Review regional infrastructure plans and supply chain requirements to best equip regional
areas for economic development.
 Released the Building Projects Industry Guide for 2013–14, detailing upcoming capital
works worth around $2.8 billion.
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Delivered and current actions
Transport infrastructure
Delivered actions
 Developed and released the Queensland Transport and Roads Investment Program
2013–14 to 2016–17, which outlines the current transport and road projects that
Queensland Government plans to deliver over the next four years to meet the state’s
infrastructure needs.
 Devised the Bruce Highway Action Plan, which sets out a detailed program of works to
improve the capacity and safety of the highway over the next 10 years.
 Announced new routes for innovative high productivity heavy vehicles across Queensland.
 Completed a revised business case for the Toowoomba Second Range Crossing.
Current actions
 Finalise and release Moving Freight to provide a 10-year strategic approach for developing
a sustainable and productive multi-modal freight network that is responsive to customers
needs, changing industry requirements and growing economic activity.
 Form an expert panel to review the public transport infrastructure needs of South East
Queensland.
Power, water and energy infrastructure
Delivered actions
 Released draft water resource plans, which provide frameworks for sharing water equitably
and sustainably between urban, rural, industrial, environmental, social, and indigenous
uses.
Current actions
 Finalise and release the 30-year water sector and electricity sector strategies to deliver
water and energy services to meet the future needs of Queensland.
 Reform Queensland’s electricity sector, e.g., merging electricity suppliers to reduce costs
of living and doing business, as part of a plan to save more than $580 million over seven
years.
International gateways
Current actions



Release an Economic Development Statement for Queensland Airports.
Finalise the Queensland Ports Strategy to pave the way for future port development by
increasing productivity through improvements to planning, governance, environmental
management and supply chain connections.
Work with industry to examine options for improving freight access to the Port of
Brisbane.
Community, health and education infrastructure
Delivered actions
 Announced further boosts to spending in education, health and community in the 2013–14
State Budget.
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Case study: Queensland Ports Strategy
The Queensland Government is developing the Queensland Ports Strategy to support the
most efficient and strategic use of ports to grow the four pillar economy, whilst ensuring high
standards in environmental management. The strategy will be informed by the results of public
consultation on the Great Barrier Reef Ports Strategy in late 2012.
The strategy aims to increase productivity through system improvements to the planning,
governance, environmental management and supply chain connections of ports. It will pave
the way for future port development and planning that recognises the differing strategic roles
and opportunities of Queensland ports.
The Queensland Ports Strategy will extend the principles developed for Great Barrier Reef
Ports Strategy to all Queensland ports, namely:
1. strategic use of ports to facilitate economic growth
2. a whole of network approach
3. the right balance between economic development and environmental protection
4. maximise efficiency throughout the port system
5. clarity and transparency in port planning.
The strategy will also support the efficient commercial operation of ports, improved port and
infrastructure corridor protection, consistency and mutual compatibility of ports, rail, roads and
freight strategies, improved landside infrastructure planning for port supply chains and rigorous
environmental management.
The Queensland Government has established Infrastructure Queensland, which
brings together industry leaders and infrastructure experts. Infrastructure
Queensland provides advice to the Queensland Government on infrastructure
priorities and long-term planning.
Working with Infrastructure Queensland, government will develop a new policy
framework for economic infrastructure. This will address the imperative and
challenges of providing infrastructure to enable the next wave of economic growth. It
will also outline the government’s approach to decision making and set the
framework for the development by government of a 10-year infrastructure plan. The
benefits will be considerable:

improved infrastructure services for Queensland businesses and
communities

greater certainty for the private sector, bringing new capital and improved
management of Queensland’s infrastructure networks and assets

better value for money for taxpayer investment in infrastructure
Key actions will include:

a coordinated approach to infrastructure planning across geographic
boundaries, asset classes, co-location of infrastructure, and levels of
government

selecting the appropriate infrastructure options to maximise productivity and
deliver value for money
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
greater contestability to infrastructure decisions and more disciplined
prioritisation between infrastructure options

harnessing the strengths of private sector financing and funding of economic
infrastructure

a more disciplined approach to asset lifecycle management – from
procurement and delivery to recycling of mature assets.
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Driving productivity growth in the public sector
An essential part of lifting our productivity performance is improving the efficiency of
the public sector. The public sector employs a large workforce and public services
are highly labour intensive. Increased public sector productivity will help restore
Queensland’s long-term fiscal position. It will reduce the unit cost of service delivery,
the cost of doing business for firms using services and the level of taxes required to
deliver them.
Delivered and current actions
Innovation within the public service and public sector renewal
Delivered actions
 Realigned workforce to ensure public sector skills and expertise are best utilised to meet
the government’s priorities.
 Implemented a culture and values renewal program to help achieve the government’s
vision of Queensland being the best administered state in Australia.
 Implemented new chief executive and executive performance and development
frameworks to drive performance and accountability for customer service delivery.
 Reduced red tape and streamlining of employment directives, guidelines, policies, awards
and agreements to enhance managerial decision-making – ‘letting managers and
employees get on with the job.’
 Undertaking departmental reviews by the Public Sector Renewal Board into the range and
quality of services delivered to customers and stakeholders.
Current actions
 Implement five-year strategic workforce plans to help ensure that the Queensland public
sector is sourcing, developing and retaining the workforce with the capabilities Queensland
needs, now and into the future.
 Promote the innovative use of government information and information sharing across
government agencies.
 Take forward a culture and values renewal program informed by results of the 2013
Working for Queensland employee opinion survey to embed innovation, and drive
improvement in the way we work.
 Continue to reform public sector employment legislation to provide a simplified and
streamlined employment environment with enhanced flexibility and mobility.
 Invest in the development of leaders across the public sector, through the executive
capability assessment and development initiative, given the critical importance of
leadership in achieving better services and outcomes for customers and stakeholders.
Service delivery
Delivered actions
 Delivered better customer service through initiatives, such as Open Data and the
Intellectual Property Audit, which are early actions to help unlock commercialisation
opportunities.
 Undertook an independent audit of ICT within the Queensland Government to support
effective delivery of services and achieve savings and reduce waste.
 A commitment to pay bills to small business within 30 days, backed by a new Late
Payments Policy which will guarantee that private sector suppliers who do not receive
payment within 30 days will receive interest on the amount they are owed.
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Delivered and current actions
Current actions
 Implement the recommendations accepted in A Plan: Better Services for Queenslanders in
response to the Commission of Audit to revitalise front line services.
 Use digital technology to improve access to information for people and business and
personalise delivery of government services.
Leveraging assets and procurement
Delivered actions
 Established the Government Land and Asset Management (GLAM) unit to drive the better
use of government assets through effective identification, assessment and management of
the state’s real property-based assets.
 Completed a review of whole-of-government strategic sourcing to identify and act on
opportunities for greater cost savings.
Current actions
 Continue to facilitate the effective identification, assessment and management of the
state’s real property-based assets through GLAM
 Implement the first wave of reforms identified by the review of whole-of-government
strategic sourcing to capitalise on cost savings.
 Implement innovative approaches to maximise value of assets and information.
 Implement the ‘ICT as a service’ strategy, which includes using cloud email and other
emerging technologies.
 Deliver the Queensland Government ICT Strategy 2013–17 to improve service delivery,
increase efficiencies and reduce costs.
 Implement the Building and Asset Services (BAS) unit to centrally coordinate the
procurement and contract management of building services, which will ensure the best
value for money is achieved.
Private sector operators and non-government organisations have new ideas and
ways of delivering solutions to problems. The state government needs to harness
these by moving from being the ‘doer’ to an ‘enabler’.
A key principle in this transformation is contestability, as recommended by the
Commission of Audit. Contestability is a process where government tests the market
to ensure it is providing the public with the best possible solution at the best possible
price. It also means the government works within those areas where it is best placed
when compared to the services offered by the private sector. This approach could
provide significant cost savings, improve public services and support economic
development. Implementing these reforms will require the right skills and systems to
be in place.
The state government is committed to delivering Australia’s most innovative and
productive public sector. The Commission of Audit showed that a productivity gain of
between 0.8 per cent and 1.1 per cent per annum across sectors involved in the
provision of government services would not only help maintain fiscal balance but
also have very significant wider economic benefits. This includes lifting average
Gross State Product (GSP) by around 0.5 per cent per year, equivalent to $8320 per
year in today’s dollars for each Queenslander by 2050-51.
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Case study: Government Land and Asset Management (GLAM)
The Commission of Audit report found that Queensland’s stock of General Government
land holdings is significantly higher than other states, comprising $90.7 billion, or just under
half of the land stock of all states. On a per capita basis, the contrast between Queensland
and other states is even more pronounced. General Government land holdings in
Queensland are over $20 000 per capita, about five times higher than New South Wales
and three times higher than Victoria.
The Commission of Audit report recommended that the government’s state assets
(including land holdings) are managed efficiently and effectively to ensure enhanced value
for money. This would release funding that could be used to support the delivery of frontline services. The Government Land and Asset Management (GLAM) group within the
Department of State Development, Infrastructure and Planning is investigating a whole-ofgovernment approach to drive the better use of government land assets.
GLAM will ensure the state's real property-based assets are identified, assessed and
managed to their full potential now and into the future. Opportunities for the private and
not-for-profit sectors will become available as the government looks to optimise its land
holdings. A Property Asset Utilisation Review is being undertaken to identify all government
land assets, with a focus on determining surplus land that will not be required for
government programs and needs. It is expected to be completed by the end of 2013.
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Communicating the importance of economic
development
We need to create wealth through economic development so we can maintain and
improve our standard of living.
However, we can no longer take it for granted that the community automatically
understands or accepts the need for economic development. We need to bring
communities along on the journey.
So why is economic growth important?
Improvements in productivity are needed to deliver:

a higher standard of living, with healthy and more prosperous communities

greater business confidence and investment that feed through into profits
and jobs

competitiveness of Queensland businesses, products and services in global
markets

more and better jobs, providing higher wages and better opportunities for
advancement

increased revenues, generating the money to finance spending on public
goods and services, such as infrastructure, schools and health services
without the need to raise taxes.
In the wake of the GFC many countries and regions are facing pressures of
structural adjustment. This includes China which played a dominant role in driving
demand for Queensland’s natural resources. Global growth rates have moderated
and significant risks remain. And while developing economies present major
opportunities for Queensland exporters, new and lower sources of supply threaten
our position in global markets. Against this backdrop, we cannot afford to be
complacent. The case for boosting Queensland’s competitiveness needs to be made
afresh.
The Queensland Government recognises that growth needs to be well managed.
Economic development can and must occur in a way that protects the unique
environment and communities of Queensland. Nowhere is this more evident than in
the determination of the government to work with industry and the community to
protect our unique, world-renowned Great Barrier Reef and its wonderfully diverse
environment which provides us with an unrivalled lifestyle. Productivity growth and
environmental protection can and must go hand in hand.
A framework for government intervention
- 29 -
There is a good story to tell. But government and industry both need to lift their
games about the way we engage with the community and communicate the need for
and benefits of growth.
Case study: Water in mines
Unnecessarily restrictive mine water release conditions imposed following the 2008
Ensham mine flooding, coupled with unprecedented wet season rainfalls, has resulted in
flooding of operational pits and increased production costs for Central Queensland coal
mines.
The flooding of the coal mines has caused job losses and cost the state in the order of
$750 million in lost royalties – that is money that could be invested in better public
services.
In response to the significant economic impacts of this legacy mine water, the
Queensland Government initiated a pilot mine water release program at four mines during
the 2012-13 wet season. Understandably the community, downstream businesses and
landholders had significant concerns about the potential for impacts on water quality for
drinking water, stock, irrigation and other business uses.
To provide confidence to the community, Government committed to a carefully controlled
pilot program and to provide transparent, high quality data on its impacts. Ministers have
demonstrated clear leadership and accountability by engaging in regular and open
communication with the community to address concerns and share the findings of the
pilot program. This approach has been positively received by stakeholders and the
community.
The pilot program has demonstrated successfully that mine water releases could be
sustainably increased, whilst ensuring the protection of water quality.
The mine water program is currently being extended to other coal mines in the Fitzroy
Basin. Participating mines will be provided with the opportunity to optimise their mine
water releases, if they can demonstrate best practice mine water management. This
expanded program will not only address the legacy water issue, but will drive a long-term
improvement in coal mine water management and catchment water quality.
Government remains committed to keeping the community fully informed. Alongside an
enhanced environmental monitoring program, Government has developed an interactive
water quality map that allows the public to easily get up to date information on water
quality in the Fitzroy Basin. Interested parties can also subscribe to receive immediate
information on mine water releases. This will complemented by regular information
updates on releases and results from the monitoring program. We have also committed
$120,000 per year to support the Fitzroy Partnership for River Health’s ongoing
assessment of the catchment’s health.
A framework for government intervention
- 30 -
Delivered and current actions
Engaging the community in planning the future of Queensland
Current actions

Through the Queensland Plan journey, enable Queenslanders to shape the 30 year
vision for the state.
A commitment to sound science and evidence-based decision-making
Delivered actions

Committed $10 million in 2013-14 to the Reef Protection Program, which is part of the
Government’s $35 million per year commitment to the Great Barrier Reef Plan

Committed $4 million over two years to the Gladstone Healthy Harbour Partnership
Current actions

Working with the Australian Government to undertake a comprehensive Strategic
Assessment of the Great Barrier Reef World Heritage Area and the adjacent coastal zone
to achieve best practice in managing a balance between growth and environment
protection.
Improving coexistence
Delivered actions

Established the GasFields Commission to improve sustainable coexistence of
landholders, regional communities and the onshore gas industry in Queensland

Prepared draft Statutory Regional Plans for Darling Downs and Central Queensland
Better managing the impacts of growth
Delivered actions

Invested $50 million through the first round of Royalties for the Regions to address
infrastructure needs arising from resource sector growth, with a commitment to grow the
program to $200 million per year

Developed a new policy framework to better manage the impacts of major projects in
resource communities to improve the legacy of growth for resource regions.
A framework for government intervention
- 31 -
The story so far
The following diagram is a summary of the Governing for Growth economic
framework, showing how it fits within Queensland Government priorities, and
strategies. Achievements and future actions demonstrate how activities align with the
framework.
Vision for
Queensland
The Queensland Plan
Queensland Government
Priorities and Strategies
Priority areas
for action
Achievements
so far
Current
actions
Simplifying
business
regulation
Governing for
Growth
A Plan – Better
Services for
Queenslanders
State Budget
2013-14
Minimising
impediments to
business growth
Fostering
economic
growth and
resilience
Enabling
infrastructure
for economic
growth
Driving
productivity
growth in the
public sector
Communicating
the importance
of economic
development
 Established
OBPR to
reduce
regulatory
burden by
20%
 Green tape
reduction
project
 Streamlining
EIS reforms
 Single State
Planning
Policy (SPP)
 State
Assessment
and Referral
Agency
 Streamlined
major project
approvals
 Queensland’s
Agricultural
Strategy 2040
 Destination Q
strategy
 Resources
Cabinet
Committee
 Betterment
Fund
 Infrastructure
Queensland
 Projects
Queensland
 Galilee Basin
Infrastructure
Framework
 Bruce
Highway
Action Plan
 Government
Land and
Asset
Management
Unit
 Open data
initiative
 whole of
government
strategic
sourcing
 Established
the GasFields
Commission
 Delivered the
first round of
the Royalties
for the
Regions
program
 Zero-based
regulation
reviews
 Modernising
Queensland’s
Resources
Legislation
 Develop new
building code
to reduce red
tape for home
owners
 Replacement
of Sustainable
Planning Act
 Infrastructure
charges
framework
 Queensland
Science and
Innovation
Action plan
 Defence
Industry
Roadmap
 20 year
Tourism
Strategy
 Establish new
Trade and
Investment
Qld agency
 10-Year
Infrastructure
Plan
 Qld Ports and
Freight
Strategies
 30-year Qld
Energy and
Water
Strategies
 Strategic
workforce
plans for
public sector
 implement
ICT as a
service
strategy
 Cultural
Renewal
Strategy
 Finalise the
Queensland
Plan
 Managing the
impacts of
major projects
in resource
communities
 Complete the
Great barrier
Reef Strategic
Assessment
The story so far
- 32 -
Where to from here—Governing for
future growth
The actions identified in this Governing for Growth statement represent the first wave
of government efforts to promote increased productivity and economic growth.
They are the crucial building blocks of economic growth but they are just the
beginning.
Our next task is to drive and embed reforms that will ensure economic growth and
jobs for a decade of growth. We will continue to focus on the four pillars of the
economy and look at wider opportunities where Queensland has existing or
emerging comparative advantage.
The six priority areas for action focus the government on moving from being a ‘doer’
to being an ‘enabler’.
A more detailed plan for action under each priority area will be developed to support
the long-term vision established through the Queensland Plan. Actions will be
informed by consultation with industry and the community to ensure action is aligned,
effective and provides value-for-money.
Where to from here—Governing for future growth
- 33 -
Department of State Development, Infrastructure and Planning
tel 13 QGOV (13 74 68)
[email protected]
www.dsdip.qld.gov.au