Download Context for the Planning Period

Context for the Planning Period
Introduction
A number of long-term global and national trends are expected to shape the way in which Australia
develops economically and socially. These trends, and how we might respond to them need to be factored
into long-term planning for infrastructure and land use in South Australia to ensure that the policy and
planning decisions made now keep us on a pathway to sustainable economic and social prosperity. Key
influences are strong population growth and ageing, industry growth and diversification, climate change and
resulting adaptation and mitigation initiatives and continuing advances in technologies which will provide
new opportunities and solutions to planning and infrastructure issues.
Population
Significant population growth and other demographic changes anticipated over the planning period need to
be factored into the new plan. Projections of population numbers, the rate of household formation, the age
profile and geographical distribution of population, work patterns and lifestyle expectations all have
implications for the future demand for a range of infrastructure and related services.
Like many other industrialised countries, Australia faces an ageing population as the numerous post-World
War II baby boomer cohort (born 1946-60) begins to retire from the workforce in increasing numbers over
the next decade. However, in contrast to most developed countries, Australia, due to large immigration
intakes, has experienced an acceleration of its population growth rate from 1.2 per cent per annum in 200203 and 2003-04 to 1.7 per cent per annum in 2007-08 and 2.1 per cent per annum in 2008-09. This is the
highest population growth rate of the more developed countries with over 1 million residents (U.S. Census
Bureau, International Data Base), well above the rates of growth of Ireland (1.1 per cent), the United States
(0.98 per cent), New Zealand (0.94 per cent) and Canada (0.82 per cent).
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Context for the Planning Period
The Australian Government’s third intergenerational review 1 indicates that Australia’s population is
projected to grow at an average annual rate of 1.2 per cent over the next 40 years.
South Australia, largely due to a large influx of immigrants and significant rates of economic growth, has
experienced an increase in its population growth rate since 2004. The state’s population increased by 1.1
per cent per annum in 2007-08 and 1.2 per cent per annum in 2008-09, well in excess of the 0.7 per cent
and 0.6 per cent per annum growth rates observed in 2002-03 and 2003-04. If current rates of growth are
maintained for the long-term future then it is likely that the state may achieve a population of 2 million by
2027, some 23 years ahead of the SASP population target for 2050.
Under the growth scenario used as the basis for the 30-Year Plan for Greater Adelaide, the state’s
population will increase from 1.66 million in 2011 to 1.87 million in 2021 and to 2.2 million by 2036.
Population Projection Scenario for South Australia 2006-36
2,400,000
2,200,000
Persons
2,000,000
1,800,000
1,600,000
DPLG 30 Year Plan
1,400,000
Actual ERP
1,200,000
2006
2011
2016
2021
2026
2031
2036
Year ending 30 June
Source: DPLG, 2009
The changing age profile and location of population also have important implications for infrastructure.
While medium to longer-term projections of population growth are subject to a degree of uncertainty, on any
set of plausible projections the South Australian (and national) population will progressively age over
coming decades. The graph below portrays the age distribution in South Australia as at the 2006 census
and how it will change by 30 June 2021 in accordance with the 30-Year Plan for Greater Adelaide
population projection scenario.
A large increase in the absolute size of the elderly population is expected as the large baby boomer cohort
ages, with the proportion of the population aged over 65 years projected at 19 per cent in 2021 under the
30-Year Plan for Greater Adelaide scenario. The number of elderly aged 65+ will increase from 236 000 in
2006 to a projected 356 000 in 2021 (an increase of 50 per cent in just 15 years). This will have a significant
impact on demand for health services and for aged-care and residential services in all regions of the state.
The number of children aged less than 15 years is projected to total 344 000 in 2021 under the 30-Year
Plan for Greater Adelaide scenario which constitutes an almost 20 per cent increase on the number at the
2006 census.
1
Intergenerational Report 2010 – Australia to 2050: Future Challenges, Australian Government, February 2010
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Population of Children, Working Age and Elderly Persons in South Australia in 2006 and Projected
Population 2021
1,200,000
2006 Census
1,000,000
Projected 2021
Persons
800,000
600,000
400,000
Projected growth
of 57,000 in
number of 0-14
year olds by 2021
Projected increase of
129,000 in number of
15-64 year olds by
2021
Projected growth
of 120,000 elderly
by 2021
200,000
0
0-14 years
15-64 years
65+ years
Age group
Source: DPLG, 2009
At the time of drafting the current infrastructure plan it was expected that there would be a decrease in the
school age population. Under the higher growth conditions that now apply, this decline is projected to cease
in 2011 and between 2011 and 2021 the school age population aged between 5 and 17 years is projected
to increase from 256 000 to 286 000 under the 30-Year Plan for Greater Adelaide scenario. Therefore
currently unused capacity in schools, particularly those sited in areas with a high proportion of immigrants,
is most likely to be required to meet the needs of a growing school population. This effect will not be
uniform. Areas with an ageing population with no new housing development may experience further
declines in enrolments. However, areas with high levels of new housing development or a large intake of
immigrant families are likely to see an increase in enrolments.
A significant increase of 128 860 in the working-age population is projected between 2006 and 2021, with
the number increasing from 1.04 million to 1.17 million by 2021 under the 30-Year Plan for Greater Adelaide
scenario.
The overall ageing of the population will increase the need for both productivity growth and increased
workforce participation to drive future increases in living standards. This makes access to modern and
efficient infrastructure even more important to growing prosperity.
South Australia’s Aboriginal population faces some unique challenges over the next decade. These
challenges stem from a combination of distinctive Aboriginal demographic trends, prevailing levels of social
and economic disadvantage, and in some cases the difficulties of remoteness.
From the 2006 Census, it is estimated that there is an Aboriginal population in South Australia of 25 557
people. This constitutes 1.7 per cent of the state’s population. The Aboriginal population is significantly
younger than the total population, as identified in the following chart, and this means infrastructure and
service needs are different from the broader community.
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South Australian population distribution by age group, 2006
Aboriginal population
Total population
100 +
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
3,000
2,000
1,000
0
0
30,000
60,000
90,000
Source: ABS Census, 2006
The median age of Aboriginal people in South Australia is only 21 years, compared to 39 years for the nonAboriginal population. When combined with the higher fertility rates and considerably younger age of
Aboriginal mothers, this represents significant challenges in terms of demands on education and early
childhood services and other community services.
Over the next 10 years, general population growth in South Australia is expected to be focussed on
increasing the rate of infill in the Greater Adelaide region. Population growth will continue on the fringes of
the Adelaide metropolitan area, particularly in the Northern Adelaide region, the peri-urban areas around
Adelaide (such as Mount Barker and Victor Harbor), and in major regional centres servicing agricultural,
aquaculture and mining industries (such as Mount Gambier, Port Lincoln and Roxby Downs). The general
growth of population in the Adelaide region and in fast growing coastal towns is expected to continue. In
contrast, some non-coastal grazing and grain growing regions will experience declines in population
numbers.
Other trends identified in the current infrastructure plan that continue to apply going forward include the:
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increasing participation of women with children in the labour force
growth in part-time and casual employment and the trend to combine study and part-time work
growth in home-based care for the aged and those with disabilities
trend to defer home ownership, marriage and childbearing
trend toward smaller average household sizes, with growth in household formation exceeding population
growth.
The South Australia’s Strategic Plan population targets include the expansion of the state’s share of the
national migration intake, increasing the number of expatriate and potential interstate migrants returning or
relocating to the state and reducing the net outflow of young and skilled people. A significant source of
working age immigration is to be through the state’s international education plan 2 with international student
numbers targeted to rise to 62 000 by 2014, including a rise in the vocational education and training (VET)
and higher education component of 85 per cent in five years. 3
2
South Australia’s International Education Industry Plan 2008-2014, Education Adelaide 144 North Terrace Adelaide, South
Australia
3
Department of Immigration and Citizenship statistics show former overseas students who graduated in Australia represent
almost 60 per cent of the permanent skilled visas granted to onshore applicants in Australia in 2006 - 07.
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Context for the Planning Period
Global competition for skilled labour and business entrepreneurs has elevated the importance of factors
such as cultural vibrancy; political freedom and personal security; the quality of education, health and other
social services and environmental quality; and modern and sophisticated infrastructure in influencing choice
of migration destination. Infrastructure priorities identified in the plan will reflect the need to ensure that
Adelaide and regional South Australia offer infrastructure and services to attract and support a growing
population.
Skilled working-age migrants are most likely to settle where industry growth offers employment
opportunities - Adelaide and the Greater Adelaide region, and major regional centres servicing value adding
to primary production such as centres in the Upper Spencer Gulf, Roxby Downs and the South East.
Retirement migration to the Southern Fleurieu and Copper Coast is likely to increase with a related demand
for services and housing not just for retirees, but for those providing the personal and retail services that
they require. The actual growth in usual residents in some of the new mining areas is difficult to project with
many of the labour requirements being met by fly-in fly-out employees whose families are residents outside
the region.
The Aboriginal population is projected to grow significantly in South Australia over the next decade - ABS
projections suggest that growth will be in excess of 30 per cent to 2020 4 . Therefore it is imperative that
infrastructure and service delivery issues are approached proactively and with an eye to the future.
The two major demographic drivers of growth in the demand for housing and related services are
population growth and changes in household formation with an associated trend toward smaller
households. Both of these processes are now occurring in South Australia. Planning for the future of the
Greater Adelaide region with its emphasis on the redevelopment and intensification of land use, the
increase of residential densities around transport corridors, transit-oriented developments and at the same
time the development of new growth areas, will increase utilisation of existing infrastructure.
The Economy
A sound infrastructure base is essential to achieving the state’s growth targets by increasing its
attractiveness as a location for investment and the competitiveness of industry in global markets,
particularly over the medium to long term. South Australia’s Strategic Plan provides clear direction on the
state’s industry development priorities, to guide infrastructure investment decisions.
South Australia’s long term economic prospects need to be considered in a national context. Long term
projections in the Australian Government’s 2010 intergenerational report show real Gross Domestic Product
(GDP) growth averaging 2.7 per cent a year over the next 40 years.
Prior to the global financial crisis the South Australian economy was recording continuing growth, fuelled by
high population growth and strong growth in defence and mineral exploration activity, with a buoyant
housing construction sector and business investment at relatively high levels, despite prolonged drought.
The Australian economy is still subject to some uncertainties associated with the global financial crisis,
which had a major impact on the world economy in 2008 and 2009. Strong and swift policy action by the
Australian Government has enabled the national economy to withstand the crisis relatively well. Australia
has continued to grow despite the global recession. The Australian Government’s Economic Statement
released in July 2010 has forecast GDP growth at 3.0 per cent in 2010-11, with the national unemployment
rate expected to fall to 5.0 per cent in the same year having peaked at around 5.8 per cent in late 2009. A
recovery is underway in Australia’s Asian trading partners and there also appear to be signs of a bottoming
in GDP in advanced economies including the United States. GDP growth is projected by the Australian
Government to be three per cent in both 2012-13 and 2013-14, with the economy returning to its potential
growth path in the medium term.
A number of indicators show the South Australian economy is gathering strength with business and
consumer confidence appearing to regain the buoyancy seen over the past few years.
4
Australian Bureau of Statistics, Experimental Estimates and Projections, Aboriginal and Torres Strait Islander Australians
2006-2021, Cat. No. 3238.0.
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Context for the Planning Period
While South Australia’s exports have suffered as the global economic downturn has affected our trading
partners, employment has remained at historically high levels. Business investment and housing
construction activity have remained high, the latter supported by record population growth and South
Australia’s relatively high level of housing affordability. International student numbers are also continuing to
rise. Trend private new capital expenditure was fairly stable throughout 2009-10 with national expectations
data suggesting a rise in investment spending in 2010-11. 5
Investment in infrastructure has been a key part of the government’s strategy for responding to the global
financial crisis in addition to strengthening the state’s foundation for the future. In the 2009 budget the South
Australian Government announced a record high level of infrastructure investment of $11.4 billion over the
next four years. This includes a major program of public transport infrastructure improvement projects,
which began in 2008-09. The boost in infrastructure development has been assisted by Australian
Government funding of $1.3 billion (over four years) for schools, social housing and transport infrastructure
under the Nation Building Economic Stimulus Plan. In addition, the Australian Government has provided
$1.1 billion for a range of capital projects, including $646 million for public transport infrastructure.
The timely planning and delivery of such infrastructure will ensure South Australia is well positioned, as the
global economy regains momentum, to achieve robust growth in the medium and longer term.
As highlighted in the Economic Development Board’s recent Economic Statement and the new 30-Year
Plan for Greater Adelaide, there are strong reasons for optimism in the state’s future economic prospects.
South Australia’s real Gross State Product (GSP) is expected to grow at an average of 2.75 per cent a year
in the coming decade, with successful implementation of the 30-Year Plan for Greater Adelaide (including
the delivery of enabling infrastructure such as enhanced transport networks) creating the opportunity for
higher growth.
The government has set a target of 100 000 new jobs for South Australia in mining, defence, renewable
energy, tourism, education, food and wine, manufacturing and other key industries over the next six years.
To help reach this target the government will continue to implement policies which foster economic growth,
increase labour force participation and ensure that South Australians have the skills for jobs in the future.
30-Year Plan for Greater Adelaide Projected Gross State Product Under Policy
Intervention Scenario
Gross State Product Projections
Index (2009=100) :
250
200
150
100
50
2035/36
2024/35
2033/34
2032/33
2031/32
2030/31
2029/30
2028/29
2027/28
2026/27
2025/26
2024/25
2023/24
2022/23
2021/22
2020/21
2019/20
2018/19
2017/18
2016/17
2015/16
2014/15
2013/14
2012/13
2011/12
2010/11
2009/10
2008/09
0
Year
Source: DPLG, 2009
5
Australian Bureau of Statistics, Catalogue No. 5625.0
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Context for the Planning Period
Industry Trends
Underlying the state’s solid economic growth is a transformation in industry structure. While agricultural and
manufacturing industries will continue to be major contributors to the state’s economy, our relative reliance
on these traditional sectors is expected to fall with mineral and resource development and defence
emerging as new drivers of industry growth.
Minerals and resources development is expected to expand significantly and be a major driver of growth
in South Australia. The state possesses huge mining potential (almost 40 per cent of the world’s known
recoverable uranium reserves and significant volumes of copper, gold and silver) and is ranked as one of
the world’s most prospective locations by Canada's Fraser Institute 6 . Exploration activity has already grown
substantially, driven by the Plan for Accelerating Exploration (PACE), strong commodity prices and new
imaging technologies. Mineral exploration expenditure in 2008-09 reached $221 million, five times that of
only five years ago. Mineral exports grew to 29 per cent of total South Australian exports in 2008-09, up
from 13 per cent in 2003-04. Currently there are around 20 to 30 new mining projects in prospect in the
state, with twelve mines active, compared to just four in 2002.
South Australia offers significant potential for growth in minerals, petroleum and geothermal energy
production and underground gas storage. The most prospective mineral areas are located in the far north of
the state: the Musgrave Block, Gawler Craton and Curnamona Province. The Cooper and Eromanga
Basins remain Australia’s largest onshore oil and gas producers and considerable potential remains in the
state to be explored. Frontier basins like the onshore Officer Basin and offshore Bight and Otway basins
have the potential for high risk-high reward discoveries and resultant significant infrastructure
developments. The government has announced a $10.2 million expansion of the PACE scheme, which will
help to drive further resources exploration and mining developments in the state.
Historically, the mining and petroleum industries have been the principal providers of their own built
infrastructure required for resource developments, often at remote locations. One exception was the
Moomba-Adelaide gas pipeline which was owned and operated by the State Government until privatisation
in 1995; more typically, the Moomba-Port Bonython liquids pipeline is owned and operated by the Santos
Joint Venture. New resource developments typically have requirements for power, transport, water and
pipeline infrastructure. Large scale geothermal energy development will require access to national electricity
infrastructure.
Underground storage of natural gas and ethane operated by the Cooper Basin Joint Venture has a long
history in South Australia, however greenhouse gas storage is an emerging sector. This sector will need
specialised pipeline infrastructure to transport CO 2 .
The role of government is to provide the policy and regulatory framework to facilitate such private sector
investment. World Trade Organisation (WTO) obligations prevent governments from providing financial
assistance for developments outside of public multi-user infrastructure.
The mining, petroleum and geothermal (and subsequent processing) industry has a particular need for
coordination across the public and private sectors to deal with infrastructure issues associated with major
resource development projects.
Current examples include State Government facilitation processes established to deal with applications for
the expansion or commencement of: Olympic Dam 7 , Prominent Hill, Jacinth/Ambrosia; Project Magnet (One
Steel); Angas; Kanmantoo and Honeymoon. There are also several iron ore deposits that are progressing
through advanced feasibility and approvals including: Cairn Hill (IMX Resources NL), Peculiar Knob
(Western Plains Resources), Wilgerup (Centrex Metals Ltd) and Wilcherry Hill (IronClad Mining Ltd).
6
Fraser Institute, Survey of Mining Companies
BHP Billiton has proposed to expand Olympic Dam six fold, resulting in production of 750 000 tonnes of refined copper,
19 000 tonnes of uranium oxide, 800 000 ounces of gold and 2.9 million ounces of silver per year. BHP Billiton’s final investment
decision is not expected until after the government decision on the Development Application (which includes the Environmental
Impact Assessment) is made. The South Australian Government has established the Olympic Dam Taskforce to facilitate the
development.
7
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Context for the Planning Period
In 2007, the government established the Resources and Energy Sector Infrastructure Council (RESIC) to
provide a forum for government and mining sector representatives to consider strategic issues related to
mining growth and development with a particular focus on infrastructure.
Investigations by RESIC have identified the following infrastructure opportunities and requirements:
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for several mines that are independent of other mining activity, dedicated connecting roads to the main
existing transport corridors
in the vicinity of various clustered mining developments, new common ‘trunk’ access transport corridors
to connect with an existing transport corridor
a suitable deep-water cape sized vessel harbour connected to the interstate main rail line for projects in
the Gawler Craton/Eyre Peninsula
industrial grade water for minerals processing
additional power generation capacity and, depending on where new generation capacity is located, the
extension or augmentation of transmission and distribution networks.
In summary, South Australia is moving from resources exploration to extraction and export. While export
harbours exist to accommodate small volume high value cargo South Australia lacks a harbour capable of
handling the expected high volume of iron ore exports in cape size vessels. In addition road and rail access
from many mines to the harbours is not adequate for the logistics task.
The government is working with industry to progress a feasibility study for the establishment of a deep
water bulk commodity export port at Port Bonython to address this need.
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Context for the Planning Period
Energy and water supplies to most mines situated in remote parts of South Australia are being resolved
using less economic, and in the case of diesel generation, higher polluting stand alone systems because of
the lack of network solutions. The development of coordinated strategic infrastructure solutions to support
the growth of the resources sector is constrained by the timing and remoteness of developments.
The government is actively facilitating the required infrastructure planning and investment and will consider
joint approaches to developments where the infrastructure is intended for broader industry and community
use.
The agribusiness sector remains one of South Australia’s largest industries but its share of the economy
has been declining due to stronger growth in other sectors. Climate change poses special challenges for
this sector, especially for the state’s irrigated agricultural producers. Nonetheless South Australia remains
an attractive base for agribusiness operations, which have a strong international reputation for quality
agricultural and food products. Going forward, significant business opportunities exist due to growth in
national and overseas markets, including Asia.
High-priority infrastructure developments required to strengthen the competitiveness of the agribusiness
sector include:
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cost competitive access to water and energy
efficient and effective transport networks particularly for access to interstate and overseas markets
infrastructure supporting research and development, particularly for SME’s
social infrastructure in regional centres servicing production and processing
waste management and composting facilities.
Abattoir and meat processing capacity is expected to expand, particularly to the north of Adelaide, the
Murraylands and the Limestone Coast. Growth in grain production and value-adding will be widespread
across the state. Growth in horticulture is expected in such regions as the Adelaide Plains and Mallee,
stimulated through improved understanding of market opportunities and innovations in packaging and
processing, while the focus for growth in the dairy industry will be the Limestone Coast. This growth will
increase demands in these regions for water and energy, particularly to support additional processing
activity. Road and rail networks and port facilities will need to accommodate additional freight activity. The
major regional centres servicing these industries will see an increase in demand for social infrastructure.
The grape and wine industry has undergone significant expansion over the past two decades. A current
world oversupply of grapes, and constrained regional access to water, is expected to slow growth in the
industry over the short to medium term.
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Context for the Planning Period
Access to water remains the most critical issue, with investment in water use efficiency; improved water
trading systems; water management tools for irrigators; and the recycling of wastewater needed to support
longer term industry viability.
Other infrastructure priorities required to underpin the competitiveness of the grape and wine sector include:
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transport and logistics facilities to ensure the efficient movement of products to and from wineries
research and development capacity underpinning innovation in grape and wine production
high speed internet across regional areas to facilitate communication along wine value-chains.
The most significant infrastructure requirement to support expansion of the aquaculture and fishing
industries is new or upgraded wharfing facilities, at selected points around the coast, to enable vessel
berthing and offloading of catch and equipment. Additional infrastructure requirements to ensure the
industry remains on a sustainable long term growth path include:
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a road network that can accommodate future growth
capacity for cold chain management at key regional airports
cost effective access to water and power for regional centres servicing the industries
enhanced research and development capabilities.
South Australia’s forestry industry is expected to continue growing, especially in the Limestone Coast and
Kangaroo Island regions. Increasing market demands for forest products will place increased pressure on
transport networks and port facilities to accommodate additional woodchip and round wood exports. There
are increasing opportunities to use forest residues to support bio-energy initiatives. High-priority
infrastructure developments to support export led growth are:
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efficient transport networks and port facilities providing access to export markets
modern wood chipping and round wood loading facilities to support efficient movement of exports
renewable energy generation capacity utilising forest and timber residues.
Defence and related industry growth are key planks of South Australia’s Strategic Plan and are backed by a
state defence strategy guided by Defence SA. The winning of the Air Warfare Destroyer (AWD) contract
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Context for the Planning Period
means that a critical mass of ancillary defence, naval and related high-tech businesses will establish in
South Australia. These industry capabilities will permanently transform the manufacturing landscape and
the performance of defence and related industries in the state. South Australia has won over $14 billion in
defence and security projects over the past six years and is on track to double the defence sector
contribution to the economy to over $2 billion by 2013.
Significant defence projects that will underpin economic development over decades to come include:
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$8 billion Air Warfare Destroyer contract
$0.7 billion AP-3C Orion aircraft fleet maintenance and upgrade
$1 billion Coastwatch Airborne Surveillance Contract
$0.6 billion Australian Army Base
the multi-billion dollar 15 year through life support contract for Collins Class submarines.
In addition, Adelaide has been selected as the assembly point for the 12 Australian navy next generation
submarines.
The expansion of this sector is supported by three large precincts - Techport Australia, at Osborne for naval
shipbuilding and related industries; the Edinburgh Parks Defence Precinct in the northern Adelaide suburbs
for the DSTO, RAAF Edinburgh for the coming mechanised battalion group; and Technology Park Adelaide
at Mawson Lakes, which is the focal point for research and training in electronics and systems engineering
and integration.
Work at the Techport Naval Industry Hub at Outer Harbor is well underway with the common user facility
shiplift completed in early 2010. Related development of industrial land will be largely in place by 2011.
In addition to the specialised infrastructure discussed above, the army’s planned expansion in South
Australia (including a new 1 200 person army battalion at Edinburgh and affiliated planned expansion and
upgrade of the Cultana Training Area) would be facilitated by the following transport infrastructure projects
to assist movement of army equipment, stores and personnel:
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an intermodal facility and deep water access in the Upper Spencer Gulf region
an intermodal facility in the Greater Edinburgh Parks Precinct
upgrade to airfields at either Whyalla or Port Augusta.
Development of housing and related infrastructure to accommodate the growing numbers of defence
personnel and their families will also be required.
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Context for the Planning Period
To promote development of the defence industry work force, the government has committed to develop a
new Naval High School at LeFevre High School, building on the school’s strong links with the maritime and
defence industries, that will specialise in providing students with skills and training necessary to take up
jobs in these growing sectors. In addition, 75 scholarships will be awarded annually for young people
wishing to pursue defence industry-related honours qualifications in local universities. These scholarships
will help lift South Australia’s productivity by increasing the talent pool, increasing education levels and
ensuring a greater chance of employment in key sectors of the state’s economy.
Other manufacturing continues to undergo structural changes in response to changes in global markets
and technologies. While some of the traditional sectors have declined in importance, new growth
opportunities continue to emerge through innovation and the development of new products and processes.
The infrastructure needs of manufacturing include:
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cost competitive water, energy and waste services
fast and reliable broadband services
appropriately zoned and serviced land and a responsive planning and development system
efficient freight transport and logistics networks linked to international airports and sea ports.
Services support the majority of all South Australian jobs and, as in other advanced nations, their share of
economic activity has been increasing. Growth in ‘knowledge-intensive’ services such as education, finance
and insurance, architecture, engineering, information and communications technology and scientific
research will be promoted, in particular, by growth in the defence and mining industries. South Australia’s
education services sector has grown significantly in recent years and the sector offers the promise of
making a significant contribution to future state economic prosperity. Particular infrastructure needs of the
services sector include facilities to support workforce training and development, research and development
infrastructure and access to high speed internet through the Australian Government’s national broadband
network.
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Context for the Planning Period
The construction industry plays a key role in building, maintaining and upgrading the state’s built assets.
Construction activity is at high levels and this is expected to continue in the coming years due to the large
pipeline of major projects, South Australia's strong population growth, expansion in sectors such as mining
and resources, defence, energy and the South Australian Government’s large infrastructure investment
program. Strong population growth is providing significant opportunities for new housing development,
including urban renewal, and the infrastructure and commercial development needed to support growing
communities.
It will be important to maintain a viable local industry with the key capabilities required for complex major
infrastructure projects. The State Government remains committed to the National Framework on Australian
Industry Participation. The South Australian Industry Participation Policy, currently under review, is
facilitated by the Industry Capability Network South Australia (ICNSA) to ensure that competitive local
industry has a fair and reasonable opportunity to win work on major projects undertaken in South Australia.
Tourism is growing in importance in South Australia and long term growth prospects remain strong. The
state is well-known for its world-class wine, food, historical and cultural attractions, iconic nature
experiences, and leading international tourism events. Kangaroo Island is one of Australia’s iconic
international tourist destinations, with a third of all visitors to the island coming from overseas. The Flinders
Ranges and Outback and the state’s wine regions are also popular with international and interstate visitors.
Infrastructure developments to facilitate growth in tourism include:
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major infrastructure such as roads, power, water supply, waste treatment and
telecommunications, located to facilitate visitor access to attractions and events
minor infrastructure such as information and interpretative bays, walking trails, cycle paths and
trails, signage, lookouts and toilets are also essential to increase the comfort and convenience of
the experience for visitors.
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Context for the Planning Period
In the past decade, South Australia’s international education industry has enjoyed unprecedented growth.
The industry is now the state’s fourth biggest export earner, generating $673 million in 2007 8 . Backed by
industry, the South Australian Government now has a long-term vision for international education, and two
distinct yet interwoven strategies underscore this:
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to establish Adelaide as a university city
to establish Adelaide as an international education destination - and by doing so, attract a greater
share of Australia’s overseas students.
South Australia’s International Education Industry Plan 2008-2014 9 sets targets to take South Australia’s
international student population from 23 000 in 2007 to reach 34 000 by 2010 and more than 62 000 by
2014. By the latter date, international education will be worth an estimated $2 billion per annum for the
state. Demand for international education in South Australia has shown that these targets are realistic
particularly if sufficient infrastructure exists.
The infrastructure needs to support growth in the number of international students, include:
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9
teaching and research facilities in high-demand university courses
suitable and affordable accommodation and related services as a key element of the
international student experience in South Australia.
South Australia’s International Education Industry Plan 2008-2014, Education Adelaide
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Context for the Planning Period
Technology
Technological advances are transforming every facet of industry and society. They include advances in biosciences, materials sciences, renewable energy and the all pervasive information and communications
technology (ICT).
Advances in ICT and growth in its applications have resulted in major changes in business processes and
the way in which people interact, learn, work and live. It has become an important means of lifting the global
competitiveness of our industry, overcoming geographic and social isolation and delivering government
services. Investment in the national broadband network will further improve connectivity locally and globally
and will need to be actively incorporated into land-use and infrastructure planning.
The bioscience sector is expected to increase in importance. South Australia is home to internationally
recognised hospitals and research institutes and a dedicated commercial biomedical precinct with
manufacturing capabilities. South Australia has a proven track record for commercialising university
research and creating spin-off companies, especially in the application of science and technology to
medicine and agriculture. Five precincts located across Adelaide that combine research with commercial
activities support growth in the sector.
The Waite Research Precinct now includes the Wine Innovation Cluster. The Plant Accelerator currently
under development will reinforce the position of the Waite Research Precinct as a world leader in plant
based innovation.
Development at the Roseworthy Campus will position South Australia as a key centre for post-graduate
veterinary training and marine animal health. Future plans for Regency will provide a product and process
development hub for South Australian food businesses.
The bioscience industry requires access to advanced computing and information infrastructure capabilities
and specialised laboratory and other facilities. The establishment of business incubators and further
development of specialised laboratory and other facilities is planned to support expansion in bioscience
activity at Thebarton, the Florey Precinct, the Waite Research Precinct and the Regency and Roseworthy
Campuses.
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Context for the Planning Period
Investment in energy production will be required over the next decade or more to support South Australia’s
development. Climate change policies, especially renewable energy targets and the introduction of a
national emissions trading scheme, will put upward pressure on energy prices and shift investment towards
renewable energy (solar, wind, geothermal, wave). South Australia possesses world-class renewable
energy resources and is well placed to benefit strongly from this trend. It already has Australia’s largest
supply of wind energy. Large parts of South Australia contain attractive geology for generation of
geothermal energy and 29 companies have geothermal exploration licences in the state. Solar and wave
energy are also under consideration. The State Government has established Renewables SA and a
$20 million Renewable Energy Fund to support the research, development and commercialisation of
renewable energy technologies.
A modern clean-technology sector is emerging in the state to take advantage of the significant
opportunities associated with climate change mitigation and adaption, renewable energy, and the need for
greater resource use efficiency to lower the state’s ecological footprint. The opportunities are driving
research and education developments and investment in new technologies in a variety of industries. Cleantechnology developments are expected to provide new growth opportunities for the manufacturing
industries.
The government has committed to a Green Manufacturing Package to support the growth of clean
technology industry and to promote more sustainable manufacturing by assisting existing businesses to
increase their resource efficiency. Under this package the CleanTech Partnering Program aims to reduce
the barriers between research and commercialisation; the Eco-Innovation Program will assist industry to
use energy, water and other resources more efficiently; and the Business Sustainability Alliance
coordinates the delivery of services and information to business to support sustainable practices.
The State Government’s 10-Year Vision for Science, Technology and Innovation (STI10) focuses on
improving the generation and application of knowledge. STI10 is based on partnering and provides the
strategic policy framework upon which projects have been evaluated and investments made by the state.
The following strategies underpin delivery of the STI10 vision:
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Building capability and infrastructure
Momentum through collaboration
Developing people and communities.
Innovate SA has been established by the government to assist firms take up and apply new technologies
and link with the expertise of our research institutes through collaboration. These technologies are expected
to offer significant social, environmental and economic benefits in such areas as communications, medical
treatments, energy and water supplies.
Social Inclusion
South Australia is a dynamic state. Its growing population, evolving employment practices, technological
advancements, patterns of international migration and shifting household sizes and family structures will
continue to drive change across the community. In the face of such change, our collective challenge is to
ensure that we are becoming a more inclusive state where diversity is valued and where all citizens have
the means and opportunity to participate and prosper in the civic, cultural, social and economic life of the
community.
This challenge has been tackled head-on through South Australia’s Social Inclusion Initiative. Over the past
seven years the initiative has taken on the task of finding new ways to address some of South Australia’s
most pressing social issues be they homelessness, school retention, disability, Aboriginal health and
wellbeing, young offending or mental health reform.
It is vital that infrastructure planning plays its part and leads to more effective and accessible service
provision that increases opportunity, promotes health, wellness, education and civic participation in the
wider community. An important focus is on ensuring that the community has access to day-to-day essential
services in a respectful way without the need for people having to move between different providers and
locations.
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Context for the Planning Period
Co-location encourages service providers to collaborate so better meeting the complex inter-connected
needs of people experiencing disadvantage, and hence is a major priority in social infrastructure planning.
Integration of infrastructure planning with land use planning is a means of ensuring not just affordable
housing but affordable living. Presently, across Australia, affordable housing is frequently located in areas
that have limited access to work, recreation and public and social services (e.g. schools, transport, health
services etc). The result is that while housing may be affordable, isolated and under-serviced locations
make living in certain areas less affordable for residents (e.g. increased living costs that arise from needing
to run a car to access schools, child care, health services and grocery shopping).
Ongoing engagement between the government and the wider community aims to ensure that special
attention is given to the needs of specific groups, including:
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Aboriginal people, in metropolitan Adelaide and regional and remote parts of the state
newly arrived refugees and their families
people with disabilities
people experiencing mental health issues
homeless people or those that are sleeping rough.
A social inclusion approach to infrastructure planning will ensure that the community is genuinely involved
and has a voice in shaping decisions that are made about local area service provision. These specific
groups require careful consideration in the planning of infrastructure to ensure access to education and
training facilities, childcare, housing and community facilities, urban centres and public transport.
It is not just in the planning of infrastructure that specific groups should be included, but also in its delivery.
As a key funder of major infrastructure projects, the government is committed to using its purchasing power
to ensure that (entry) level employment opportunities for disadvantaged South Australians are pursued
during the construction phase of projects. Such an approach has been used on the $564 million Northern
Expressway project and has also been encouraged in a number of Nation Building Economic Stimulus Plan
projects. Providing employment opportunities for local people who face barriers to employment can be
transformational, for individuals, families and local communities.
Aboriginal Communities
The geographic distribution of the Aboriginal and non-Aboriginal populations differ markedly. Around 48 per
cent of Aboriginal South Australians live in urban areas, compared to 73 per cent of the non-Aboriginal
population. While 19 per cent of the Aboriginal population reside in remote or very remote parts of the state,
only three per cent of the non-Aboriginal population do. 10
A significant proportion of Aboriginal people living in regional and remote areas live in discrete communities.
These communities are based on Aboriginal lands, held in trust by three Aboriginal landholding authorities the Aboriginal Lands Trust, Maralinga Tjarutja and Anangu Pitjantjatjara Yankunytjatjara (APY). While this is
a continuing challenge for the delivery of essential services and community support, the development of
communications technology and the growth of the mining, tourism and landcare sectors has the potential to
increase the participation of Aboriginal communities in the state’s economic development.
Aboriginal people, particularly from remote and regional locations, are far more mobile than non-Aboriginal
people from the same areas and this poses significant challenges to mainstream service systems which are
usually designed to service clients that are resident in one location and who access these services
consistently over time. The higher population mobility results in a lack of continuity in program participation
and in the relationship between individuals and services providers, for example school attendance,
sustained medical care and child protection. Government planning needs to take into account this seasonal
mobility to avoid overloading of services and related infrastructure.
10
Australian Bureau of Statistics, Census of Population and Housing, Canberra, 2006
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Context for the Planning Period
Recognising the unique situation of South Australia’s Aboriginal population, South Australia’s Strategic Plan
acknowledges the urgent need for action in a range of areas relating to Aboriginal wellbeing, including
health, housing, employment and education.
The wellbeing of South Australia’s Aboriginal communities is intimately connected to the standard of
housing, infrastructure and essential services, as well as the availability of Aboriginal-specific and
mainstream services. The South Australian Government is committed to working with the Australian
Government to ensure appropriate levels of funding are targeted to priority areas and that planning
recognises the unique characteristics and needs of Aboriginal South Australians.
The Environment
Planning for infrastructure must be based on the recognition that the economy, society and the environment
are integrated. South Australia has embarked on a number of long term initiatives to ensure sustainable
economic development, many of which are nation and world-leading. Infrastructure developments to
support targeted population and economic growth must continue to be sustainable, promoting improved
resource management practices and reducing reliance on non-renewable resources.
Climate change projections, suggesting reduced rainfall and increased temperatures across the state, are
expected to impact on natural resources and primary production, future settlement patterns, building and
infrastructure design.
South Australia’s Climate Change and Greenhouse Emissions Reduction Act 2007 contains a commitment
to a target to reduce greenhouse gas emissions to 60 per cent below 1990 levels by 2050, and to increase
the generation of renewable energy to 33 per cent of all electricity generated by 2020. This requires a
reversal of trends since 1990 that have seen residential sector energy and transport emissions increase by
28 per cent. This will be facilitated by the planned introduction of a national emissions trading scheme.
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Context for the Planning Period
The fifth State of the Environment Report for South Australia (SOE) 11 completed in 2008, identifies
environmental issues of significance for infrastructure planning in the state. The State Government has
expressed support for almost all the recommendations and has adopted the following ongoing
environmental priorities with infrastructure implications: land stewardship, water use and climate change
adaptation.
Key plans that support these priorities are:
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No Species Loss Strategy
State Natural Resources Management Plan
Water for Good
Tackling Climate Change: SA’s Greenhouse Strategy
30-Year Plan for Greater Adelaide.
Detailed actions in support of these priorities are listed in the Transport, Urban Land, Energy, Water,
Natural Assets and Waste Management sections of this discussion paper.
The SOE report also cites significant positive developments over the past five years which are continuing,
including a decrease in the amount of solid waste sent to landfill, an increased proportion of the state’s
electricity sourced from renewable resources and an increase in the re-use of treated wastewater.
Continued stewardship of the natural environment underlies all infrastructure development. This task is
made more challenging by the potential impacts of climate change and the need to adapt to a carbon
constrained economy. The 30-Year Plan for Greater Adelaide identifies principles for more environmentally
sustainable urban development:
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increased housing density close to modern and efficient rail transport corridors
increasing water and energy efficiency of new developments
identifying and protecting our natural assets in recognition of the free services they provide to
nature and our society leading the nation in renewable energy development and water recycling
reducing carbon emissions in preparation for a carbon constrained economy
mandating water sensitive urban design (WSUD)
providing cooler public spaces in a warming world through innovative design of open space and
corridors.
These principles will also be applied, through the planning strategy, to urban development in regional
South Australia. Provision of appropriate infrastructure is fundamental to delivering this new urban form,
whether it be through energy, transport or water infrastructure, the innovative use of infrastructure corridors
to create improved open space, biodiversity restoration, or promotion of recreational opportunities.
11
The State of Our Environment, South Australia, 2008 Environment Protection Authority
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