Economic Development Strategy - newcastle.nsw.gov.au - City of Newcastle
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Economic
2021
Development
Strategy
newcastle.nsw.gov.au
Economic Development Strategy 2021 1
Welcome
Acknowledgment
We recognise and respect the cultural heritage,
beliefs and continuing relationship with the
land of the Awabakal and Worimi peoples. We
acknowledge the proud survivors of more than two
hundred years of resistance.
The City of Newcastle reiterates its commitment to
address disadvantages and to support Aboriginal
and Torres Strait Islander peoples of this community
to attain justice.
City of Newcastle
Smoking ceremony held at the new City Administration
Centre building at 12 Stewart Avenue. The ceremony also
included; Wakakulang Dance Troupe, Aboriginal catering
and a special guest talk by artist Saretta Fielding.
2 Economic Development Strategy 2021 3
Contents
Executive Summary 6
Our Economic Opportunities Map 12
Our City
Community Strategic Plan 14
Newcastle at a Glance 15
Our Economic Journey 16
Our Global Commitment 18
Our Collaborative Approach
City of Newcastle Context 20
The Regional Context 22
Economic Development Collaborators 23
Business Attraction Partnerships 24
New Local Framework 26
Our Challenges 30
Our Engagement 34
Our Strategic Approach
Skilled People 37
Innovative People 44
City Shaping 51
Vibrant City 61
Enquiries
References 67
For information contact
Economic Strategy and Government Relations Manager
Phone 4974 2000 Appendix A
Published by Action Plan 2021-22
City of Newcastle
PO Box 489, Newcastle NSW 2300
Phone 4974 2000 Fax 4974 2222
mail@ncc.nsw.gov.au
City of Newcastle
newcastle.nsw.gov.au
© 2021 City of Newcastle
4 Economic Development Strategy 2021 5
Executive
Summary
The City of Newcastle’s (CN) Economic Development of the 21st century demands a skilled workforce Our Collaboration: Our Strategy seeks to environmental, economic and social conditions
Strategy (EDS) 2021 offers a transformative with research indicating nine out of every ten supplement the work of the economic development that will play out over the coming decades.
perspective to economic development with a new jobs will require post-school qualifications.2 ecosystem in Newcastle. We have maintained the Our challenges have been disaggregated into
deliberate people-centred and place-led approach. Consequently, this presents a challenge for the vision from the Greater Newcastle Metropolitan four categories: population challenges, industry
Our view is that the success of our local and regional skills base of the Newcastle population, where Plan, with all Newcastle Local Government Area transition, climate emergency and economic
economy is built on the talent, skills and ingenuity almost 50% of our people do not have a post- (LGA) catalyst areas being identified with the skills impacts exacerbated due to COVID-19.
of our people. These skills lead to innovation, school qualification and less than 15% of our that will enable their success. We have identified
creativity and ultimately the formation of new jobs population are skilled international migrants. Summerhill Waste Management Centre and the In developing this Economic Development Strategy,
and investment. Our Strategy seeks to build a skilled circular economy as new emerging opportunities. extensive stakeholder and expert engagement
and innovative community supported by key city The CN is responding to these trends in this has been undertaken. This included workshops with
infrastructure and enhanced by a vibrant lifestyle. Economic Development Strategy. Our approach Our Strategy also articulates that the City of our Strategy & Innovation Advisory Committee,
is based on a framework called ‘New Local’ Newcastle will not actively pursue a business the City Taskforce and representatives from the
Historically, it has been assumed that people follow which advocates for a people-centred and attraction approach. The City of Newcastle will seek business, innovation and community sectors.
jobs. This is changing. Jobs are beginning to follow place-led approach to economic development, to supplement the work of Regional NSW and the Engagement also included targeted conversations
people. The improvements to communications and and reimagines the role of local government. Business Attraction Committee rather than lead with population groups most impacted by
technology, combined with the increasingly service- our own business attraction processes. Research the COVID-19 economic recession including
based economy of the 21st century mean that many First and foremost, our Strategy will invest in increasingly demonstrates that the marginal rate young people and international students.
jobs are no longer anchored to a location. This people, their skills, their networks and their of return is greater in investing in existing local
trend has been further accelerated by COVID-19. investments. Our delivery programs will provide a businesses and enabling them to grow, rather than Our Priorities: Our detailed and evidence-driven
This is changing migration patterns and offers an suite of opportunities for local residents and seek incentivising big corporates to relocate to the approach has led to four priorities being identified
opportunity for Newcastle to strengthen its economy. to attract new talent to the city to fill existing region. Our view is also that business attraction in this Strategy – Skilled People, Innovative People,
skill gaps. Our programs will be inclusive and, in is more effectively delivered at a regional level, City Shaping and Vibrant City. Two priorities focus on
Newcastle has a range of economic opportunities many cases, targeted to minority populations. where the LGA boundaries are not considered. investing in people and ensuring that the population
surrounding the city centre, which are described as of Newcastle is skilled and innovative. The remaining
the Innovation Arc in this Strategy. The Innovation Our Vision: Strengthen existing and create new Our Approach: Our Strategy has taken an two priorities focus on enhancing the foundations
Arc is defined as the catalyst areas identified in the economic opportunities for all in the 2020s. evidence-driven approach to identifying priorities, of our city, which enable people to create their own
Greater Newcastle Metropolitan Plan. These catalyst establishing delivery programs and proposing opportunities in Newcastle. For each priority there
Our Mission: Empower, retain and attract
sites include Williamtown (Newcastle Airport), Port actions. We have engaged with and implemented are a number of four-year delivery programs, and
people with skills for the future.
of Newcastle (and surrounding industrial lands), the New Local framework to inform our Strategy then a suite of clear, timely and measurable actions
University of Newcastle Callaghan, John Hunter Horizon: The Strategy targets ten-year outcomes development. New Local is a series of ten principles, that City of Newcastle and partners will implement.
Health and Innovation Precinct, Hunter Park/ for the Newcastle economy. These outcomes which provide a roadmap to restart, renew and
Broadmeadow and the City Centre. To these we will be achieved through four-year delivery reboot our local economy in a post COVID-19
add Summerhill Waste Management Centre. Each programs and one-year action plans. and climate emergency world. Developed by
of these areas is aligned to an industry, many international experts, New Local advocates for
of which have received significant government Review: The Strategy will be refreshed a people-centred and place-led approach to
or private-sector investment. Importantly, they every four years (next in 2025). Action economic development, which builds resilient
provide the right circumstances for new enterprises plans will be updated annually. and regenerative communities, cities, towns and
to establish and scale, as well as for new talent mainstreets. The ten principles have been applied in
to locate and create new opportunities. Governance: The delivery programs and actions will the Newcastle context and underpin all our work.
be reported annually to CN’s Strategy & Innovation
To enable the Innovation Arc, a skilled and diverse Advisory Committee, who provide an important Our Strategy also fronts up to the challenges
City of Newcastle
labour supply has become the most critical input advisory role to the implementation of the Strategy. facing our local community. These challenges have
for enterprise to enable both local and global been informed by the CSIRO’s global megatrend
competitiveness.1 The service-based economy research, which identified significant shifts in
1
Buss 2014.
6 2
Goldstein 2018; Heath 2020. Economic Development Strategy 2021 7
Skilled People: Innovative People: City Shaping Vibrant City
The Skilled People Priority is about enabling and The Innovative People Priority is about increasing The City Shaping Priority is about continuing the The Vibrant City Priority is about enhancing
expanding these human capabilities to strengthen capacity for local residents to solve problems transformation of Newcastle towards increased the sectors that drive city vibrancy through
and drive existing and future opportunities and generate new economic growth. Enabling economic diversification and improved amenities. activation, performance, interaction and
in Newcastle. This will be delivered through the right conditions for people to experiment Newcastle has emerged as Australia’s leading post- cultural consumption. The City of Newcastle
partnerships with business, industry and local and invest in change helps to diversify and industrial Gateway City. It is managing a transition plays an important role in nurturing a vibrant
tertiary institutions. Importantly, Skilled People seeks differentiate our economy. Organisations from a heavy industrial past to a more diverse and city through facilitating major events, providing
to integrate marginal population groups into all of and enterprises with a higher degree of innovative knowledge and services-led economy, support and direction for the tourism sector and
the delivery programs and recognise the important novelty are more resilient to disruption and while still retaining strengths from its industrial managing the city’s cultural and civic venues.
uplift they can provide for the local economy. are typically more globally competitive. capability, such as engineering and manufacturing
skills. This positions Newcastle effectively to Our vision is for Newcastle to be a city where
Our vision is to see Newcastle strengthen a Our vision is to see Newcastle create a supportive leverage growth sectors of the new economy. things are happening, day and night. It is a city
local skills-based labour market where job environment that enables local residents to be where you enjoy living, working and playing.
seekers, employers and educators focus on the innovative in all jobs and workplaces across the city. Our vision is that Newcastle emerges as a global
skills required to do a job, rather than years of city that enables business competitiveness Newcastle will be a city of loveable places,
experience. Government, industry and business Novocastrians will be known as an innovative people. and attracts people to live and invest. with a sense of suprise, delight and wonder. It
would see widespread adoption of skills-based will be locally distinctive and globally iconic.
Delivery programs include: Newcastle will be known as a city where
hiring and targeted training practices.
you can create your own opportunity. Delivery programs include:
Novocastrians will be known as a skilled people. Innovation Provision of physical spaces,
Ecosystem information, governance and training Delivery programs include:
City Activation Strategic approach to Special
Delivery programs include: to support all entrepreneurs and
innovators to flourish across the city. Business Rate funding and
Strategic Support for strategic land use City of Newcastle grants and
NewSkills Research, promotion, funding and Living Lab A city-wide platform to solve Planning and planning to enable the Innovation
advocacy to enable local residents problems, prototype and validate sponsorships to enable the
Development
Arc and distributed local economic community to drive and shape a
to gain new skills. new ideas for commercialisation.
centres’ growth. vibrant city.
Local Business New communication channels, Inclusive Spread awareness of innovation
People partnerships (Business Improvement Innovation resources and tools to all sectors of Digital Deployment of the City Digital Newcastle After Implementation of the Newcastle
Associations) and data insights to the local economy. Infrastructure Corridor, enabling next-generation Dark After Dark Strategy to promote
support local business people with networks, including Internet of
Scaling Dedicated programming to support and build the economy.
the skills, knowledge and networks Things and 5G, and expanding the
Innovation local innovators to scale their
to grow and expand their local Visitor Economy Implementation of the
operations to national and global Living Lab testbed.
operations. Destination Management Plan.
markets.
Local Improving the connection of SMEs
Talent Targeted campaigns, both City Events Development of a City Events
Capital and to local finance through awareness
Attraction domestically and internationally, Action Plan to provide a holistic
Investment
to encourage talented and skilled of options and the nurturing of
and strategic approach to the
people to move to Newcastle. more grassroots investors and
entire events lifecycle including
Inclusive Incentives for businesses to improve alternative financing models.
principles and guidelines for
Newcastle their environmental, social and Strategic Development of staged, evidence-
corporate governance practices.
identifying, attracting, promoting
Government based strategic advocacy plans, and evaluating events.
International Support for local business people Relations
renewed support for regional
Networks to attract international skilled Advocacy Multiculturalism Celebrations of diversity through
collaboration initiatives and and Diversity
migrants and new partnerships with meaningful conversations and
continued engagement with the
international business networks. culturally focused programs and
national Gateway Cities Alliance.
events.
Circular Development of a strategic
Creative Development of a formal cultural
Economy framework to enable local support Economy precinct within the Newcastle
for the transformative and
CBD.
City of Newcastle
productive potential of the circular
economy.
City Analytics Research and data analytics
program to identify underlying local
social and economic dynamics.
Embeds evaluation into all of our
8 3
Markle Foundation 2018. programs. Economic Development Strategy 2021 9
Vision:
Strengthen
existing and
creating new
opportunities
for all in the
2020s.
City of Newcastle
10 Economic Development Strategy 2021 11
University of Newcastle
City of Newcastle 12 Economic Development Strategy 2021 13
Our City Newcastle
In 2030, Newcastle will
at a glance
be a smart, liveable and
sustainable global city
Our Population
We will celebrate our cultural heritage and history, protect our natural environment
and support our people to thrive and prosper. As an inclusive community,
Newcastle LGA population 2020: 167,363 NSW Newcastle
we will strive for equal rights and access for all. We will face challenges with Population by 2041: 199,680
integrity, innovation and creativity. Support business growth, education and
employment opportunities. We will be a leading lifestyle city with vibrant public Greater Newcastle/Hunter region population 2019: 747,381
places and spaces, connected transport networks and unique urbanism. This
Population by 2041: 863,131 Source: ABS 2021a
will be achieved within a framework of open and collaborative leadership.
Vision Definitions
Our People
Smart - is a city that Inclusive - is used to reflect Largest age cohort:
puts its community at its
centre; enjoys smart and
the community’s desire to not
just be welcoming and open, 20-24 year olds 3.5%
digitally connected public but to actively recognise and of our population identify
(about 8.8% of total population)
and urban infrastructure; embrace differences. as Aboriginal or Torres
and works to develop a Estimated annual population growth rate:
Community - refers to Strait Islander
thriving ecosystem to drive
innovation and creativity. everyone; residents, workers,
businesses, visitors and
1% Source: NSW DPIE 2020, ABS 2020a
Liveable - are the factors stakeholders.
that influence our quality
of life, including the built Newcastle Urbanism - (refer Our Workforce
and natural environments, to City of Newcastle’s Local
Largest industry sector by employment:
economic prosperity,
social stability and equity,
Planning Strategy) is the built
environment that addresses 102,800 jobs in Newcastle Health Care and
educational opportunity, public spaces, is scaled for
and cultural, entertainment
and recreation possibilities.
pedestrians, and respects
culture, heritage and place.
Over
65,000 Newcastle residents
Social Assistance
Urban form that encourages have formal professional qualifications 18,880 jobs, or 19.4%
Sustainable - are both safe and activated places;
environmental and financial promotes active and Source: ABS 2017a, ABS 2017d, Remplan 2021.
sustainability. Sustainability healthy communities and
is about meeting the needs provides opportunities
of the present generation for social interaction. Our Economy
without compromising the
ability of future generations Value of building approvals in 2019-20
$18.2 billion
to meet their needs.
$1.15 billion Newcastle’s Gross Regional
Product (2019, nominal)
The City of Newcastle is revising it's Community Strategic Plan.
City of Newcastle
Newcastle 2040 will soon be considered by Council. Newcastle is home to:
80% of the Hunter’s office space
30% of developed industrial space Source: Remplan 2021, City of Newcastler
14 Economic Development Strategy 2021 15
Our Economic Journey
Looking across the silo wharf from
Honeysuckle 1935, Gold Collection, BHP Newcastle Steelworks closure: final walkout,
Lycett, Joseph, approximately 1775-1828 Newcastle Regional Library 30th September 1999, Newcastle Libraries Collection
Pre 1700’s 1797 1800’s 1900s 2000s to Today
The Awabakal and Worimi The year 1797 marked the Newcastle’s coal industry grew in Due to the abundance of coal in the region, Newcastle’s economy has changed significantly in
peoples are descendants of first time British colonists importance during the 1800s and BHP opened a steelworks in the city in the past two decades, with the growth of digital
the traditional custodians of came ashore on the banks of sea transport to Sydney became 1915. This facility dominated Newcastle’s technology, service industries and advanced
the land situated within the the Hunter River. The abun more frequent. By the latter part economy for much of the 20th century and manufacturing industries. Prior to the COVID-19
Newcastle LGA, including dance of coal in the area of the century, schools, churches, was interlinked with the city’s growth. The pandemic, there were many indications of strength
wetlands, rivers, creeks and was immediately apparent, harbour infrastructure, a rudimentary steelworks also marked Newcastle as a key and growth for Newcastle’s local economy. For
coastal environments. It is and over the next two years roads network, sewerage, street centre for heavy industry and manufacturing: example, between 2015 and 2019, the total number
known that their heritage several ships sailed from lighting, telegraph services and in 1961 manufacturing jobs peaked at over of operating businesses increased from 12,475 to
and cultural ties to Newcastle Sydney to the Hunter to other municipal buildings had been 39% of total employment in the city, with the 14,312. In the year ended 30 June 2019, the value of
date back tens of thousands collect coal. By 1799, sufficient constructed. The populations of metalworking, founding and engineering building approvals was more than $814 million, well
of years. Muluubinba is the stockpiles had been gathered Wallsend, Merewether, Stockton, industries alone accounting for over 26% above long-term averages. In the same year, only
traditional name for the to ship overseas - thus Tighes Hill, Carrington, Lambton of the total workforce7. The BHP steelworks three local businesses reported insolvencies related
people. Its name is attributed Newcastle coal became the and Hamilton mining villages grew was by far the largest single employer in to “economic conditions”, which again was well below
to a local sea fern that was first commodity export from rapidly, accelerated by the opening this sector. Between 1960 and 1975, the longer-term trends10. In January 2020, immediately
traditionally harvested as a a Britishcolonised Australia5. of a direct rail line to Sydney in 18966. number of jobs at the steelworks never prior to the pandemic outbreak, the official
food crop4. Large numbers fell below 10,0008 . This reliance on heavy unemployment rote in the Newcastle region was
of clan groups were known Surviving what was the industry exposed Newcastle to the structural at a historic low of 3.5%11. The continued challenge
to have lived along the complete upheaval of decline of manufacturing in developed for the city’s development is how to transition to
river and coast, around the traditional life with the countries over the past 50 years. Due to a more diversified, resilient and sustainable local
wetlands and hinterlands. onset of settlement, the trends towards largerscale production, economy. The growth of local world-class research
Living a settled life managing survival and growth of declining international shipping costs, trade institutions, such as the University of Newcastle,
and farming their lands Muluubinba, and then what policy changes and the rise of the Asian CSIRO and the John Hunter Health and Innovation
according to their cultural became Newcastle, can tiger economies, Newcastle’s industrial Precinct, coupled with a vibrant entrepreneurial
and family obligations and be attributed to Awabakal economy has declined since the 1970s sector centred on renewable energy, advanced
the lore, carefully moving and Worimi peoples. Their manufacturing, health technologies, defence and
with the seasons and for intricate knowledge of In 1999, the BHP steelworks closed and, aerospace, as well as the creative industries, are new
ceremonial necessities. the flora and fauna of this as of 2016, the manufacturing industry’s and growing opportunities. Newcastle’s response to
country was fundamental share of employment had fallen to 5.9%9. the COVID-19 pandemic, and the rise of more local
The Awabakal people were in the survival of those early However, Newcastle continues to have economic networks, may offer further opportunities
City of Newcastle
the first peoples in the world settlers. The securing of strengths in the fields of engineering for transformation. The role of this Economic
to recognise the use of Nikkin food, water, bush medicines linked to energy production, which may Development Strategy is to enact a plan for
(coal) as a fuel source. and building materials were provide new opportunities for the future. Newcastle’s next chapter of its economic progression.
vital in the establishment of
4
Hunter 1998. the colony in Newcastle. 7
ABS 1962 10
ABS 2021.
5
City of Newcastle 2020a. 8
Kirkwood 2019. 11
ABS 2020c.
16 6
op cit. 9
ABS 2017b. Economic Development Strategy 2021 17
Our Global
Commitment
The SDGs underpin our work The Economic Development Strategy will provide The SDGs and the Economic Development Strategy:
vision and delivery programs for the Newcastle
In September 2015, Australia was one of 193 economy over the next 10 years. Consequently,
SDG and targets How it is addressed in the Economic
countries to commit to the United Nations the global language of the SDGs has been
Development Strategy
Sustainable Development Goals (the SDGs). applied, not just at a goal level but embedded as
The City of Newcastle has been proactive targets and indicators throughout this Strategy. QUALITY SDG 4 Quality Education – Ensure inclusive and A skills-based labour market is one of
EDUCATION
in the strategic implementation and action The City of Newcastle has an essential role in equitable high-quality education the priorities of this Strategy. A number of
on the SDGs since this commitment. Central educating and leading the achievement of the and promote lifelong learning opportunities for programs will provide local residents with
to this has been the implementation of the SDGs for the region. The core alignment and all. opportunities to gain new skills.
SDGs in our core Strategy documents. implementation has been outlined as follows.
DECENT WORK AND SDG 8 Decent Work and Economic Growth - The vision of this Strategy is to create
ECONOMIC GROWTH Promote sustained, inclusive and sustainable new opportunities for all. Every
economic growth, full and productive program is designed to be inclusive
employment and decent work for all. and to remove barriers to access.
INDUSTRY, INNOVATION SDG 9 Industry, Innovation and The Innovation Economy and City-Shaping
AND INFRASTRUCTURE Infrastructure - Build resilient infrastructure, Initiatives (including advocacy and digital
promote inclusive and sustainable infrastructure) are priorities of this Strategy.
industrialisation and foster innovation. City analytics incorporating scientific research
is embedded throughout the Strategy.
Targets 9.4 and 9.5, address upgrades to
infrastructure, with a focus on sustainability
and enhancing scientific research.
RESPONSIBLE SDG 12 Responsible Consumption and This Strategy identifies the economic
CONSUMPTION Production - Ensure sustainable consumption development opportunity of the circular
AND PRODUCTION
and production patterns. All of the targets economy and proposes more work to be
for this SDG directly relate to the reduction of taken both by the City of Newcastle and
waste and the growth of a circular economy. across industry.
SDG 17 Partnerships for the Goals - This Strategy is centred around a
PARTNERSHIPS
FOR THE GOALS Strengthen the means of implementation collaborative approach to implementation.
and revitalise the global partnership By virtue, it follows that our actions will require
for sustainable development. partnerships to achieve them.
SDG 13 - Take urgent action to combat The Strategy supports the detailed work
CLIMATE
ACTION climate change and its impacts. Green already undertaken in the Climate Action
City of Newcastle
transition - investments must accelerate the Plan. The Strategy supports the transition
decarbonisation of all aspects of our economy. of our existing skills base to green jobs
This will lead to the development of green and highlights the opportunity of a
jobs and sustainable and inclusive growth Renewable Energy Zone in Newcastle
18 Economic Development Strategy 2021 19Our Collaborative
Approach
The City of Newcastle’s Economic Development including outlines of key State Government
Strategy offers a transformative approach strategies and a map of the key actors in the
to economic development with a deliberate local economic development ecosystem. Community Strategic Plan
people-centred and place-led approach. Our 2018-2028
Strategy seeks to build a skilled and innovative Following is a description of the New Local
people supported by key city infrastructure and framework. New Local has been fundamental
enhanced by a vibrant lifestyle. This section details to our approach and provides context for a
the approach we have taken to identify priorities, number of our proposed delivery programs.
establish delivery programs and propose actions.
This section then details the challenges facing the
The section begins by outlining the context of Newcastle economy from a population, industry
our Economic Development Strategy. Firstly, transition, climate emergency and COVID-19
the Strategy’s relationship with the City of viewpoint. The section concludes by summarising the
Newcastle’s Community Strategic Plan and other extensive stakeholder and community engagement
strategic work. Secondly, the regional context we have undertaken to develop this Strategy.
Economic Development Strategy
Newcastle Events Plan Destination Smart City Local Social Live Music
After Dark 2016-2019 Management Strategy Strategy Strategy
2018-2022 Plan 2017-2021 2021-2025 2016-2019
2021-2025
City of Newcastle
20 Economic Development Strategy 2021 21Regional Context Economic Development
The Hunter Regional Plan 2036 and the Greater
Newcastle Metropolitan Plan 2036 are the key
regional economic development planning
There is a recurring narrative throughout the Hunter
Regional Plan 2036 and the Greater Newcastle
Metropolitan Plan 2036 strongly advocating for
Collaborators
documents that impact the City of Newcastle. regional collaboration across council boundaries
Published by the NSW Government in 2016 and and levels of government. As stated in the Greater
Local Coordinating Partners Local Small Business Support State Government Partners
2018 respectively, these plans are intended to Newcastle Metropolitan Plan: “Metropolitan
be the blueprint to deliver future economic and cities succeed and perform best when all tiers of Regional NSW Newcastle Airport Department of Planning,
population growth in the region. The Hunter Regional government collaborate and work together with Industry and Environment
Hunter Joint Organisation Port of Newcastle
Plan provides an overarching strategic framework business, industry and community to deliver a
Hunter New England Health
for land use plans, development proposals and shared vision for their city”12. The City of Newcastle Hunter Central Coast Hunter Water
infrastructure funding decisions. The Greater will seek to embrace the collaboration in all of our Development Corporation Health Infrastructure
Newcastle Metropolitan Plan 2036 aims to achieve delivery programs. Our view is that LGA boundaries Transport for NSW
Regional Development Local Innovation &
the vision set by the Hunter Regional Plan but are irrelevant to economic development. Expanding
Australia Hunter Creative Networks Infrastructure NSW
contains a more detailed action plan and has a economic opportunities in Newcastle benefits the
tighter geographic focus on the Newcastle Local other Lower Hunter Councils and vice versa. Committee for the Hunter Hunter iF NSW Treasury
Government Area (LGA) and four neighbouring LGAs. Independent Creative
The City of Newcastle also acknowledges key Destination NSW
Local Business/Industry Alliance Newcastle (ICAN)
City of Newcastle’s Economic Development integrations with other NSW Government Strategies Networks Create NSW
Strategy aims to translate and align the strategic including the NSW Economic Blueprint 2040, I2N
visions for the region into a local context, and Productivity Commission Green Paper and Hunter Business Improvement NSW Office of the Small
Eighteen04 Business Commissioner
to assert Newcastle as the vibrant metropolitan & Central Coast Enabling Adaptation report. Associations (BIAs)
heart of Australia’s leading regional economy. Hunter Business Chamber
Both the Hunter Regional Plan and the Greater
Newcastle Metropolitan Plan identify Newcastle Local Business Chambers and Local Research/ Federal Government Partners
Business Groups Education Partners
as a key economic hub for northern NSW, and an Infrastructure Australia
attractive lifestyle city with the following benefits: HunterNet The University of Newcastle
Ai Group Hunter Region TAFE NSW
A dynamic and entrepreneurial business culture, with Data & Analysis
a globally competitive economy and leadership in Newcastle Tourism Industry Hunter Medical Research
smart city technology, cleantech industries and Institute (HMRI) id Population Experts
Group
renewable energy initiatives. REMPLAN
Property Council of Australia Commonwealth Scientific
The vibrancy of a metropolitan lifestyle with green Hunter Chapter and Industrial Research Spendmapp
suburban community living, and easy access to (CSIRO)
Urban Development Institute Australian Business Register
beaches and bushland.
of Australia National Institute for Energy
World-class infrastructure, including a deep-water Australian Tourism Data
Research (NIER)
port, international airport, university, the John Hunter Warehouse
Hospital Precinct and large-scale development plans Local Infrastructure Authorities
across the region. National Partners
Newcastle Airport
A culture of change, innovation and renewal. Port of Newcastle Gateway Cities Alliance
City of Newcastle
Hunter Water
International Partners
G20 Pioneer Cities
22 12
NSW DPE 2018: 14. Economic Development Strategy 2021 23Business Attraction
Partnerships
In 2019, the NSW Government’s Regional NSW Many new business enquiries initially engage
established a Business Attraction Committee (BAC) to through local government. We will seek to support
formulate the strategy and direction of collaborative the BAC by referring all new business enquiries of
business attraction activities in the Hunter Region. size (>20 employees) to the BAC concierge service.
The Committee has also established an operational Furthermore, the City of Newcastle proposes to
process for responding to incoming enquiries through support prospective businesses by:
a concierge service, managed by Regional NSW.
Working collaboratively to identify potential
Local Government is represented on the Committee commercial sites
by the Hunter Joint Organisation. Council supports a
Provide confidence with our local leadership and
cohesive approach to business attraction through a
investment in attracting skilled and talent workers to
regional lens and in partnership with industry. Business
the city.
development and attraction is best achieved with
size and scale, which often extends beyond the LGA Instil confidence with the breadth of our support for
boundaries. The City of Newcastle are seeking to local business people through training opportunities
complement existing initiatives rather than replicate. and regular communications.
Advocate on behalf of local business people for the
enabling infrastructure required to multiply local
opportunities.
Demonstrate the vibrancy of Newcastle through
engaging presentations and a detailed local
evidence base.
City of Newcastle
24 Economic Development Strategy 2021 25New Local
New Local is a series of ten principles, which provide a roadmap to
restart, renew and reboot our local economy in a post COVID-19 and
climate emergency world. New Local advocates for a
people-centred and place-led approach to economic
development, which builds resilient and regenerative communities,
cities, towns and mainstreets.
The ten principles have been applied in the Newcastle context and
provide the theoretical framework that underpins the programs of
work in this Strategy. All of our delivery programs and actions have
been aligned to at least one New Local principle Place
Placemaking is the art of creating meaningful,
inclusive and connected places. It is the
“The City of Newcastle has
collaborative process of making places
that benefit all people, every day. Place is
the opportunity to be a about equity, accessibility and fostering
a sense of ownership and livability.
global leader in developing
a compelling 21st century
economic development vision
and roadmap that puts people
and planet first, unleashes
creative entrepreneurship and
becomes an enabler, facilitator
and partner of social innovation
and positive change”
Connectivity
Regeneration
- Gilbert Rochecouste, Global Placemaking thought leader International connections – especially
and Michael Shuman, an Entrepreneur and leading visionary on Regeneration is where we put back more with people, culture, and knowledge –
Community Economics. into our ecological and social fabric than will allow you to take advantage of the
we take out. It addresses the whole system best of what the world offers, without
and strives to make it better and more becoming dangerously dependent on it.
resilient. Regeneration empowers local
City of Newcastle
enterprises to be part of their place and
feel pride in contributing to it, supporting
them to think about what they can do
to improve the local environment.
26 Economic Development Strategy 2021 27Culture
Culturally rich places are shaped
through freedom of expression, creative
risk-taking and showcasing diverse
voices. Strong, collective community
values and cultural assets enhance a
sense of place and local identity.
Ownership
Local ownership of business matters. A
growing body of evidence shows that
communities with higher levels of local
ownership have more social equality, Innovation
civic engagement and sustainability.
Innovation involves continuously looking for ways to
expand and improve existing businesses, and successfully
launch new ones. It means providing entrepreneurs
with the technology, assistance, space, mentors,
networks and finance to succeed. Entrepreneurs
Reinvestment come from all sectors of the population, such as the
young, retirees, immigrants, people of colour, the
Reinvestment means helping local residents’, businesses, chronically unemployed and people with a disability.
and governmental bodies redirecting their capital from
global businesses to local ones. It means more local
banking, more local securities, more local investment
funds and more local superannuation options.
Diversification
While traditional economic Equity
development encourages the
Social equity is
nurturing of a small number
about providing
Democracy
of world-class industries
equitable access
to achieve comparative Democracy is about power to the
to basic needs
advantages, the New Local people, where empowered citizens
and opportunities,
encourages economic directly participate in the decisions
readily and locally,
diversification, greater self- affecting their lives, communities and
irrespective of
reliance and stronger reliance. local ecologies. A new approach to
race, class and
Paradoxically, a community resilience and economic development
City of Newcastle
other dimensions
that is more self-reliant is often has a foundation of authentic
of social identity.
wealthier and has many more engagement at its core, supported
promising export sectors. by powerful engagement and
governance tools and models.
28 Economic Development Strategy 2021 29Our Challenges
This Strategy acknowledges and fronts up to the challenges facing the local Newcastle economy. These
challenges have been informed by the CSIRO’s global megatrend research, which identified significant shifts
in environmental, economic and social conditions that will play out over the coming decades.
Our challenges have been disaggregated into four categories: population challenges, industry transition, a
climate emergency and economic impacts exacerbated due to COVID-19.
Australia Newcastle
Measure of diversity
Birthplace in Australia 71.7% 85.4%
Population Challenges
Language spoken at 77.7% 89.5%
Moderate Population Growth: Lack of Diversity: home – English only
A past challenge for Newcastle has been our lagging Compared to the rest of Australia’s population,
population growth compared to Australia’s other residents of Newcastle are more likely to have been % of the population
major population centres, which may contribute to born in Australia (85.4% versus 71.7%) and are more
slower economic diversification, output and likely to only speak English at home rather than other
opportunities. In the period 2019-20, Newcastle’s languages (89.5% versus 77.7%)16. This may signify less Low Education:
population grew by 1.1%, compared to a capital city exposure to diverse cultures and innovative practices,
At the 2016 Census, just over half (53.1%) of Newcastle’s population above the age of 20 years had
average growth rate of 1.4%. Newcastle’s population and fewer international connections17. Additionally,
attained a post-school qualification of Certificate III or above. The rate of the population with
grew slowly compared to similar regional centres like the Federal Treasury and other research18 have
post-school qualifications increased by approximately 1.1% per year between 2011 and 2016, which is
Geelong (2.3%), Adelaide (2.5%) and the Gold Coast identified that migrant populations deliver an
slightly above population growth20. With nine out of ten future jobs estimated to require post-school
(2.4%)13. economic dividend to local economies, with migrants
qualifications21, there is likely to be a significant decline in demand for an unqualified labour force. This
more likely to be employed, earning higher income
Local Brain Drain: would have a substantial impact on the Newcastle economy and threaten to polarise employment
and providing skills that supplement the needs of the
Related to the issue of lower-than-average opportunities and increase economic inequality into the future.
local labour force. Collectively, migrant populations
population growth is the composition of who is provide multiplying benefits to local communities and
leaving Newcastle, and at what stage of their lives.
Net internal migration (which measures the
drive economic productivity19. Newcastle’s lag in
Educational attainment in Newcastle
attracting migrant populations may therefore be a Source: ABS 2017a; ABS 2012; ABS 2007.
movement of people within Australia) has remained significant hindrance on the city’s economic
negative for Newcastle, meaning more people are development.
2016
leaving the city to live elsewhere in Australia than are
2011
choosing to relocate here14. Regional population data
2006
suggests the population cohort most likely to move
away from Newcastle is 15 to 24-year-old people15,
which is the age group most likely to be engaging in
post-school education and entering the workforce.
This is a common trend for a university town, but also 41.4% 47.5% 53.1%
provides an opportunity for retaining and expanding
the local skills base.
City of Newcastle
% of the population aged 20 years or above
13
ABS 2021a 17
International Organisation
14
ABS 2021b. for Migration 2020: Chap 5.
15
ABS 2020d. 18
Massey & Parr 2012.
16
ABS 2017a. 19
The Treasury 2018: 1 20
ABS 2017a; ABS 2012; ABS 2007.
30 21
Goldstein 2018; Heath 2020. Economic Development Strategy 2021 31Economic Transition: During the first period of lockdown in April 2020, local
Industry Transition established coal export market worth almost $14 billion
annually. China has been the second-largest market for economic activity fell by almost half compared to
Environmental limits are placing constraints on local
Sunset Industries: Australian coal, therefore this policy shift has had an the peak Christmas trading period in December
economic growth. Cities in particular are responsible
immediate and significant impact on exports through 201935. Many thousands of Novocastrians relied on
The mining sector continues to play a significant role for the majority of carbon emissions and need to be
the Port of Newcastle. Regarding future global demand Jobseeker income support, and an average of
in our local economy, particularly coal that is at the forefront of responding to the climate
for coal, the International Energy Agency states: “the approximately 6,500 businesses per month applied
extracted in the Upper Hunter region and exported emergency through emissions reductions. Economic
medium-term outlook is highly uncertain… with regard for JobKeeper payments between April and
through the Port of Newcastle. Until recently, about transition is not a cost-neutral process and will
to the evolution of Chinese import policies and September 202036. Although some industries
95% of the Port of Newcastle’s trade were coal represent a disruptive force for the modus operandi
developments in India’s indigenous thermal coal recovered strongly towards the end of 2020, other
exports. In 2015-16, it was estimated the direct and of Newcastle’s economy and its stakeholders. For
production”29. These factors underscore how geopolitical sectors such as tourism and hospitality have been
indirect economic impact of coal mining in the example, in 2018-19 the majority (61%) of Newcastle’s
developments can have rapid and detrimental impacts disproportionately impacted and are struggling to
greater Newcastle and Hunter region was $7.8 carbon emissions were from electricity generation,
on Newcastle’s local economy if diversification is not return to normal trading levels37.
billion22. At the 2016 Census, approximately 1,200 and private businesses were responsible for about
people in Newcastle and 12,000 people in the region pursued. 70% of electricity consumption31. Alongside these challenges are new opportunities for
were employed directly in the mining sector23. Newcastle’s economic development. Research has
In order to affect lasting change and create new
However, intermediate inputs into the mining sector indicated that the COVID-19 pandemic has greatly
opportunities, collective action and commitment
such as advanced manufacturing, transport, Climate Emergency Challenges from businesses, as well as government and the
accelerated the adoption of digitisation
warehousing and technical services have a larger technologies in the workplace across the Asia-Pacific
Climate Emergency Impacts: community, will be required.
economic impact24 , and coal industry advocates region38. This technological shift is facilitating the
have claimed that there are 36,000 coal mining The climate emergency has become the key social and COVID-19 Pandemic uptake of more long-term Working from Home
related jobs across the Newcastle and Hunter economic challenge for the 21st century. We are already arrangements for workers in many industries, which in
region25. beginning to glimpse the impacts of a changing climate Challenges turn is encouraging a demographic drift away from
on our everyday lives. Globally, the last decade was the The COVID-19 pandemic has been an congested capital cities to second cities and
The significance of coal mining to the local economy
hottest ever recorded, and 2020 effectively tied with unprecedented economic and social challenge for regional areas. There are indications that
highlights Newcastle’s exposure to volatility and long-
2016 as the hottest years on record. Australia. In the June 2020 quarter, the nation’s GDP Sydneysiders are choosing to emigrate to regional
term downturns in the industry. For the past decade,
fell by seven per cent, the largest quarterly decrease NSW at significantly higher rates than prior to the
the absolute share of coal consumption for electricity, The likely effects of hotter and more extreme climate
on record32. This trend was mirrored in Newcastle with pandemic,39 and the uptake of office space in the
heating and industrial production has been declining, events include more frequent and widespread bushfires,
the official local unemployment rate peaking at 11%, Sydney CBD in 2021 is predicted to fall by as much as
particularly in the United States, Europe and China26. flooding, extreme heat and increased risk of disease
compared to around only four per cent prior to the 15 per cent40. These trends represent an opportunity
Between 2018 and 2020, global coal consumption is and pandemics – all with indeterminate impact on our
pandemic33. Young people were even more severely to attract more internal migration to Newcastle, with
estimated to have decreased by seven per cent, and economic and social fabric. The devastating bushfires
impacted with unemployment climbing to almost the working population enticed by lifestyle, cost of
forecasts are for this trend to continue27. Since 2012, throughout eastern Australia in 2019-20 are a case
30% at the early peak of the pandemic34. living considerations and competitive infrastructure.
there has been an overall decline in employment in study of the economic, social and ecological costs of a
the coal mining sector28, which may further climate emergency. 33 people lost their lives in the
Figure 1: Economic downturn during the COVID-19 pandemic:
accelerate through increased automation in the bushfires and smoke from the fires was linked to more
industry. than 445 deaths. Over 3,000 homes were destroyed
Total expenditure activity in Newcastle LGA, Jan 2019 - Dec 2020
and billions of dollars of buildings and infrastructure 350
were damaged30. Eighteen million hectares were 300
Geopolitical Tensions: burned during the bushfires and more than a billion 250
Furthermore, many other important importers of animals died, with long-term ramifications for 200
$m
Australian coal (including Japan, South Korea and biodiversity and industries reliant on natural resources 150
the European Union) have adopted policy settings (such as tourism and agricultural production of milk, 100
aimed at rapidly reducing carbon emissions. In meat, wool and honey). If the severity and frequency of 50
these types of events continues to increase, it will
City of Newcastle
December 2020, the government of China formally 0
represent a costly and fundamental disruption to
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
imposed import restrictions on Australian coal and
other key sectors, bringing uncertainty to a previously normal economic activity.
Source: Spendmapp 2021
22
Port of Newcastle 2017: 6 25
Port of Newcastle 2017: 6. 28
Australian Industry and Skills Committee 2020. 31
City of Newcastle 2020b: 21 34
ABS 2020f; 2020g. 36
The Treasury 2021. 1991 39
Wright & Duke 2021.
23
ABS 2017b; ABS 2017c. 26
International Energy Agency (IEA) 2020a. 29
IEA 2020b. 32
ABS 2020e. 35
Spendmapp 2021. See 37
Spendmapp, op cit. 40
Lenaghan 2021.
32 24
MacroPlanDimasi 2017: 31. 27
IEA 2020b. 30
UNEP 2020 33
ABS 2020f. graph in draft form above. 38
LaBerge et al 2020.Our
Engagement
How we have engaged:
The preparation for the Economic Development
400+
individuals were
Strategy began in early 2020. As a result of the directly and
global pandemic, we responded and changed our indirectly engaged
approach to engagement, with a greater focus on
virtual forums. Across two months in late 2020, we
187
engaged with our community and stakeholders
through a community-wide survey and a range of
face-to-face and virtual workshops. This included community surveys
workshops with our Strategy & Innovation Committee were completed.
of Counci41, the City Taskforce42 and representatives
from State Government agencies, and the business,
innovation and community sectors. Our engagement
was shaped by a Discussion Paper, which proposed A social media reach of
a new people-centred approach to economic
development with an inclusive focus of creating 260,000
opportunities for all.
Our engagement included targeted conversations
with population groups most impacted by the
COVID-19 economic recession. In particular, we 11
successfully held discussions with young people by workshops with 200+
partnering with TAFE NSW, HunterNet, the University attendees representing over
of Newcastle and the Hunter Young Professionals. We 30 organisations and groups.
also focused on engaging with people from
non-English speaking backgrounds, talking to four
cohorts of international (English as a second
language) students from TAFE NSW.
A communication plan was activated throughout the
1,500+
visits to the Have
public exhibition period to promote the opportunity
Your Say webpage
for community members to provide feedback. Key
economic development stakeholders, including
everyone who had contributed to the initial Figures include both early engagement and public
engagement period for the Economic Development exhibition period
Strategy, were directly contacted.
41
The Strategy and Innovation Advisory Committee consists of Councillors and key stakeholder & community
City of Newcastle
representatives. The purpose of the Committee is to provide advice and guidance on the development of strategies,
and identification of challenges and opportunities, in relation to activation of Newcastle as a destination leading in
innovative technologies, smart infrastructure, and high value investment, and major events and tourism.
42
The City Taskforce, led by the City of Newcastle, was established to act as the local coordinating advisory committee to
oversee the recovery phases of the COVID-19 pandemic. The City Taskforce was made up of 17 key city leaders from across
manufacturing, small business, financial services, tourism, transport and logistics, arts and culture, workers, education and
the community sector. The first meeting was in mid-April and the Taskforce concluded in December 2020.
34 Economic Development Strategy 2021 35Our Strategic
Priorities
Skilled People Priority
Objective What do 1.1 NewSkills: To facilitate opportunities for Newcastle residents and
you want businesses to acquire new skills that drive innovation and employment.
to achieve? 1.2 Local business people: To support local business people to expand
their existing operations in Newcastle.
1.3 Talent attraction: To attract talented domestic and international
people to live and expand their business interests in Newcastle.
1.4 Inclusive Newcastle: To drive environmental, social and corporate
governance practices amongst small and medium enterprises in
Newcastle using economic incentives.
1.5 International networks: To establish new and deliberate international
networks, which support the attraction of skilled migrants to Newcastle.
Community What does The growing of our local skills base, an increase in skilled migration to
Benefit success Newcastle and the embedding of inclusive practices in all actions of local
look like? business. Newcastle will effectively establish a skills-based labour market.
Community How will our • 75% of the Newcastle population has a post-school qualification
Indicator community by 2030, which represents two per cent year-on-year growth.
change? • Newcastle’s population grows at an average of two per cent
per annum.
• The number of active skilled migration visas in Newcastle increases.
• International student numbers in Newcastle double by 2030
(Feb 2020 baseline).
Links to CSP 4.1 A welcoming community that cares and looks after each other.
6.1 A vibrant, diverse and resilient economy built on educational
excellence and research.
6.2 A culture that supports and encourages innovation and creativity
at all levels.
6.3 A thriving city that attracts people to live, work, invest and visit.
Links to New Connectivity, Diversification, Equity, Culture.
Local Framework
Links to other Social Infrastructure Strategy (forthcoming),
City of Newcastle
City of Newcastle Local Social Strategy,
strategies/plans Disability Inclusion Action Plan.
36 Newcastle Institute for Energy and Resources Economic Development Strategy 2021 37Our Newcastle economy is built on the talent, skills
and ingenuity of our people. Thus, people are at the
The New Local framework emphasises the value of
self-reliant, diversely-skilled people, empowered to Case Study
centre of local economic development, both as engage in their own communities, who are proud of
individuals and within enterprise. The Skilled People both their place and their culture. A people-centred,
Priority is about enabling and expanding these skills-based approach highlights the importance of Research identified that Newcastle had a
human capabilities to strengthen existing and drive putting local people at the centre of the economic significant shortage in bookable tourism product.
future opportunities in Newcastle. This will be development narrative. The City of Newcastle partnered with a registered
delivered through partnerships with business, industry training organisation to provide 15 local businesses
In the long-term, our vision is to see Newcastle with access to professional mentors. These mentors
and local tertiary institutions. Importantly, Skilled
establish a local skills-based labour market43 where provided advice on how to develop, promote and
People seeks to integrate marginal population
job seekers, employers and educators focus on the sell tourism products and experiences to a wider
groups into all of the delivery programs and
recognise the important uplift they can provide for
skills required to do a job, rather than the years of
experience. Government, industry and business
market. Since commencement the program has
seen a number of new bookable tourism products
53%
the local economy. of Newcastle’s population
would see widespread adoption of skills-based hiring be established in Newcastle. Targeted local have a post-school
A people-centred approach to economic and targeted training practices. Novocastrians would government assistance, in partnership with industry, qualification44
development builds in flexibility and promotes be known as a skilled people. can address local market gaps.
resilience to structural changes in the economy, such
as those prompted by the COVID-19 pandemic and
the long-term shift away from carbon-based energy.
This Strategy is proposing key skills opportunities to
Remote Tulsa was a one-year program that
respond and protect against existing challenges:
Localisation of industry supply chains:
offered a $10,000 grant and additional benefits 7,399
to encourage remote workers in the US to move international students
How can we work on encouraging local industries and work from Tulsa, Oklahoma. The program enrolled with the University
and the local workforce to effectively deliver the was highly successful with more than 10,000 of Newcastle in 2020.
goods and services required? applications, two billion digital impressions and
300 relocating workers. This talent attraction
Energy industry transition:
program is an example of a people-centred
How can we plan for a smooth transition away from
approach to economic development.
extractive mining industries towards a growing Lean in Newy is an online platform where
renewable energy sector? residents living in the Newcastle and
Capitalising on digitisation: surrounding areas sign up to be
What opportunities are there for businesses to boost members and earn points by taking
their online presence and leverage digital challenges like helping out in their
technologies to access new markets and create new 9/10 neighbourhood, volunteering for charities
or supporting local businesses. The
products and services? future jobs will require post-
school qualifications45 program drives inclusive community
Promoting the knowledge economy:
practices and engages local businesses
City of Newcastle
How can we encourage local growth of industries
in driving opportunities across our city.
whose competitive advantage is technical and
scientific innovation?
44
ABS 2017a.
38 43
Markle Foundation 2018. 45
Goldstein 2018; Heath 2020. Economic Development Strategy 2021 39You can also read
