Mackay - Isaac - Whitsunday Region Digital Economy Strategy and Action Plan February 2015 Updated Jun 2015
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Contents 1 Executive Summary 3 1.1 Background 3 1.2 Digital Economy 3 1.3 Digital Environment 3 1.4 Digital Capability 3 1.5 Risk and Impact 4 1.6 Action Plan and Roadmap 4 2 Background 6 3 Digital Economy 7 3.1 What is the Digital Economy 7 3.2 Importance of the Digital Economy 7 3.3 The Digital Economy in Australia 9 3.4 Example of an Existing Regional Digital Economy Strategy 10 3.5 Digital Economy Opportunities for the Mackay, Isaac and Whitsunday LGAs 11 4 Digital Environmental Scan for the Mackay LGA 12 4.1 Mackay LGA 12 4.2 Regional Demand 12 4.2.1 Drivers 13 4.2.2 Future Growth 13 4.3 Regional Supply 14 4.3.1 Soft infrastructure 15 4.3.2 Hard infrastructure 15 5 Digital Environmental Scan for the Isaac LGA 16 5.1 Isaac LGA 16 5.2 Regional Demand 16 5.2.1 Drivers 17 5.2.2 Future Growth 17 5.3 Regional Supply 18 5.3.1 Soft infrastructure 18 5.3.2 Hard infrastructure 18 6 Digital Environmental Scan for the Whitsunday LGA 20 6.1 Whitsunday LGA 20 Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 1
6.2 Regional Demand 20 6.2.1 Drivers 20 6.2.2 Future Growth 21 6.3 Regional Supply 22 6.3.1 Soft infrastructure 22 6.3.2 Hard infrastructure 22 7 Digital Capability 24 7.1 Demand Opportunities 24 7.2 Supply Opportunities 26 7.2.1 ICT Industry 26 7.2.2 Telecommunications Infrastructure 27 7.2.3 NBN Engagement 27 7.2.4 Carrier Engagement 28 7.3 Leadership Opportunities 28 8 Risk and Impact 31 8.1 Demand 31 8.2 Supply 33 8.3 Local Leadership 34 9 Action Plan 37 9.1 Demand 37 9.2 Supply 40 9.3 Local Leadership 41 10 Roadmap for Digital Capability Development 45 Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 2
1 EXECUTIVE SUMMARY 1.1 Background Mackay, Isaac and Whitsunday Local Government Areas (LGAs) have identified the need to develop a Strategy and Action Plan for readying industry, businesses, government agencies and communities in the region to maximise opportunities to embrace the digital economy and prepare to take optimal advantage of the high speed broadband to be delivered by the NBN. This Strategy and Action Plan outlines key objectives and resultant actions considered necessary to support and enhance the delivery of the Mackay, Isaac and Whitsunday (MIW) Regions Economic Development Strategies through widespread engagement with the digital economy, and where required and possible influence the use of high speed broadband rollout throughout the region. 1.2 Digital Economy The digital economy is the global network of economic and social activities that are enabled by platforms such as the internet, mobile and sensor networks. 1 It is therefore a global marketplace underpinned by online systems, processes and services which are accessible to any individual or organisation, for the purpose of transacting electronically. The advances in information and communications technologies such as high speed broadband and cloud computing have provided the platform for the digital economy, and initiatives such as the National Broadband Network (NBN) will further enhance the ability for all regions of Australia to participate. This will provide enormous opportunities for local governments, health, education, business and industry to be a catalyst for change, as well as strengthening the existing economic base and facilitating diversification. To access and benefit from the digital economy government agencies, organisations, businesses, industries and individuals will need to develop the skills, knowledge and capability to effectively participate in the digital marketplace. To take advantage of this opportunity will entail conversion to new business models and new ways of thinking. 1.3 Digital Environment A precursor to the development of this Strategy and Action Plan has been the Federal Government funded Digital Enterprise Program. As at December 2014, this program has delivered 43 group workshops (ie. Isaac 10, Whitsunday 5, Mackay 28) introducing topics such as: Online Presence; Cloud and Cloud Applications; Mobility, Teleworking and Online Communications; and Cyber Security and Data Management. Also the program has enabled the provision of 50 individual training and mentoring sessions to 43 small to medium enterprises and seven not for profit organisations throughout the region. These sessions have provided a preliminary overview of the current state of the three regions in relation to their existing broadband capacity and capability to engage in the digital economy. 1.4 Digital Capability Digital capability refers to the ability to access and effectively engage in the digital marketplace. The level of capability can be determined by assessing the three core areas 1 Executive Summary, Australia's Digital Economy: Future Directions, Department of Broadband, Communications and the Digital Economy (DBCDE) Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 3
of influence: - demand; supply; and local leadership. Demand - This element consists of all existing and potential users participating in the digital economy. The opportunities for enhancing demand can be best addressed by making government agencies, industry, businesses and community aware of the digital economy, its importance and likely impact. In addition to awareness, there needs to be provision of relevant information and access to appropriate knowledge and skills to assist and empower individuals, businesses and industry to review and transform their current digital capability, that is, the way they operate, collaborate, integrate and communicate with customers, suppliers and industry peers. Supply This area consists of those industries, businesses and individuals that assist others to connect and engage effectively in the digital economy for example, business advisors, telecommunications providers, software engineers and digital content developers. Local leadership The provision of information, communication, guidance and support to industry, businesses, and communities as they undergo the necessary transformation is imperative if the MIW Region is to successfully engage in the digital economy. Individually and collectively, the Mackay, Isaac and Whitsunday LGAs seek to lead and facilitate the transformation of demand within the community through the implementation of the Digital Economy Strategy and Action Plan, including the digital transformation of local government services within the regions. 1.5 Risk and Impact In respect to each of the core areas of influence, a set of actions have been proposed. Each has been assessed from the point of view of its likely impact, as well as the potential risk if it is not implemented. Each action has then been allocated an appropriate entity responsible for implementing the proposed actions. 1.6 Action Plan and Roadmap Individual actions have been prioritised against identified risks and impacts relating to each Local Government Area s engagement in the digital economy and placed in a sequence aimed at optimising the region s progress. Each of the steps shows the relevant leadership action, along with the appropriate demand and/or supply side interaction which will enable the MIW Regional Councils to adopt, sequence and lead the implementation of the Roadmap in collaboration with other organisations, industry peak bodies and champions, and respected individuals to: 1. Develop and implement a communications plan; 2. Conduct a series of information presentations regarding the digital economy (to be supported through the Digital Enterprise Program); 3. Establish collaboration between councils, industry peak bodies and industry and community leaders; 4. Develop case studies demonstrating the opportunities and benefits of the digital economy; 5. Conduct a series of training workshops utilising local case studies; 6. Liaise with telecommunications infrastructure constructors and Retail Service Providers (RSPs); 7. Utilise existing leadership groups such as the Mackay IT Network (MITN) and Diversify Mackay Leadership Alliance (DMLA) to foster the development of the local ICT industry; 8. Guide businesses and not for profit organisations to undertake an assessment of their current state, future desires and resultant gaps; Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 4
9. Work with education facilities and providers with the aim of enhancing digital capability at all levels (i.e. industry, business, community and individual); 10. Work with medical and health facilities and providers to optimise their usage of digital technology in the delivery of their services; 11. The three Councils, through the Whitsunday ROC, to lead by example demonstrating the principle thinking digital first when delivering services and through working collaboratively by sharing resources, information, knowledge, people and technology; 12. Develop a business case to encourage telcos to provide necessary infrastructure to alleviate blackspots as an interim measure until the NBN infrastructure is deployed; and 13. Liaise with NBN Co to ensure that all actions undertaken demonstrate the regions willingness and capability to partner with NBN Co and collaborate with the objective of sharing, or linking infrastructure to facilitate deployment of the NBN throughout the region. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 5
2 BACKGROUND Mackay, Isaac and Whitsunday (MIW) LGAs and supporting groups are focused on developing the digital capability of the three regions and their ability to embrace the digital economy. MIW commissioned Gravelroad to develop a Digital Economy Strategy and Action Plan to guide the actions necessary to enhance the digital capability of industry, businesses and communities throughout the three regions, as well as the digital capabilities of their own local government services. The Strategy outlines the key objectives and the Action Plan details those specific actions necessary to ready government agencies, industry, businesses and communities in the MIW Region to maximise opportunities presented by the digital economy with the aim of influencing the rollout of high speed broadband in the regions. The Strategy and Action Plan document has considered all current relevant government policies, strategies and studies to ensure alignment with government policies and programs that support the rollout of the NBN and regional preparation for the digital economy. Furthermore, the region seeks wherever possible to align the Strategy and Action Plan to the Queensland Government s GoDigitalQld Strategy and Action Plan and other State and Federal Government initiatives. The intent is to work collaboratively with State and Federal governments to facilitate investment and ensure the intended benefits for the region are delivered. The methodology used to develop this Digital Economy Strategy and Action Plan involved: 1. Identifying and reviewing all relevant regional strategies, plans and information to develop a contextual base; 2. Conducting a Master Class to discuss and agree with MIW and other nominated stakeholders on the contextual base, key drivers for the region along with potential issues and challenges relating to the digital economy; 3. Preparing a draft Strategy and Action Plan for initial examination by the Stakeholder group, followed by a series of interactive focus groups held in each of the three LGAs attended by local representatives of business, industry, community leaders and the not-for-profit sector. The aim of the focus groups was to discuss and receive input in relation to the draft Strategy and Action Plan to reach agreement on the key issues and challenges, and identify potential actions that could be undertaken to best address these. 4. Finalising the Strategy and Action Plan identifying the key digital economy initiatives to best achieve the region s digital objectives, aimed at assisting in the delivery of their respective Regional Economic Development Strategies in line with the vision for the MIW Region. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 6
3 DIGITAL ECONOMY Figure 1: Key Elements of the Digital Economy 3.1 What is the Digital Economy The digital economy is the global network of economic and social activities that are enabled by platforms such as the internet, mobile and sensor networks. 2 The digital economy is a global digital marketplace where government, business and community transact online using high speed broadband access. 3.2 Importance of the Digital Economy The following outlines some of the key elements of the digital economy that relate to its ability to deliver significant outcomes for business, industry and the community. An important factor of the digital marketplace is the ease of access and real time nature of the online activity. Key activities include: ecommerce: relates to the online buying and selling of goods and services, involving activities such as : o websites; o buy/sell capability; o order/delivery tracking; o social media channels; and o online communities. Supply chain: involves the flow of goods and services from production of the raw materials to receipt of the finished product or service by the end consumer, i.e. integration of information and resources through all stages of the supply chain; visibility up/down stream; product development; provision of real time information reporting; increased accuracy of comprehensive information; and automation. Business intelligence: involves access to information such as: industry, market(s), products and services; industry trends; 2 Executive Summary, Australia's Digital Economy: Future Directions. Department of Broadband, Communications and the Digital Economy (DBCDE) Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 7
consumer patterns and behavior; competitive and comparative industry information. Mobility: is the ability to access information from anywhere, anytime, with any device, providing the same experience and information as at the office desk. Education and knowledge: access to relevant information repositories and knowledge sources when required. The following information provides some key indicators as to the growing trend toward online transactions. A 2014 study conducted by Harvard Business Review of 420 global business leaders in relation to their online strategies identified that they are more likely to focus on the following in order to optimise their revenue-generation 3 : New customer experience strategies (71%); Business model innovation (69%); and Service innovation (68%). Respondents believe IT-enabled innovation will have the biggest impact on: The way businesses interact with their customers; The way employees do their work; The products and services their companies offer; and The business models they pursue. In terms of specific transformation projects, over the next three years: 66% of companies plan to automate business processes and execute customer experience strategies; 60% plan to create new applications; and 56% plan to draw up new business models. The most transformational technologies include: Business intelligence/analytics; Mobile technologies; Collaboration tools; and Cloud computing. Given the growing global trend of mobility as a prime source of online connectivity, the following is most relevant, particularly in regional areas (Global Mobile Usage Trends 4 ): Global mobile data traffic grew 81% in 2013; 2012 s mobile data traffic was nearly 18 times the size of the entire global Internet in 2000; Mobile video traffic was 53% of traffic by the end of 2013; Over half a billion (526 million) mobile devices and connections were added in 2013; Globally, in 2013 smart devices represented 21% of the total mobile devices and connections, yet they accounted for 88% of the mobile data traffic; In 2013, a fourth-generation (4G) connection generated 14.5 times more traffic on average than a non-4g connection. Although 4G connections represent only 2.9% of mobile connections today, they already account for 30% of mobile data traffic; and Average smartphone usage grew 50% in 2013. Significant work has been undertaken to measure the economic potential of high-speed broadband. Some of the key findings include: An analysis conducted jointly by Ericsson, Arthur D. Little and Chalmers University of Technology in 33 of the 34 OECD countries concluded that: doubling the broadband speed for an economy increases GDP by 0.3% and states that for every ten percentage point increase in broadband penetration, GDP increases by 1%. 3 Business Transformation and the CIO Role, Harvard Business Review 2014 4 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013-2018 Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 8
An analysis by Boston Consulting Group surveyed employees at more than 15,000 companies with fewer than 250 employees in the world s biggest economies dividing the survey respondents into four groups: high Web, medium Web, low Web, and no Web. The analysis found that: In the U.K., the overall sales of high and medium Web businesses grew by 4.1 percent annually from 2007 through 2010, about seven times faster than the overall sales of low- and no-web businesses. In Hong Kong, 79 percent of high and medium Web businesses reported higher sales over the past five years, compared with 63 percent of no Web businesses. In the U.S, high and medium Web businesses expected to grow by 17 percent over the next three years, compared with 12 percent for their low Web and no Web counterparts. High and medium Web businesses have also increased the size of their workforces to support their Internet operations over the past three years, an otherwise dire period for job growth in the developed economies. A recent report from IBISWorld on Australia s Digital Future to 2050 predicts that: in a future enabled by high speed broadband 10% of Australia s 509 industries (accounting for 23% of the nation s revenue) will not function without this new utility; a further 17% of industries (also 23% of the nation s revenue) will use it to drive step- changes in their business; and 70% of the industries (accounting for 54% of revenue) will benefit from generalised productivity gains. It should be noted that this continued trend towards online transactions will affect all businesses, industries and community organisations, some of which will not survive unless they embrace and harness the era s technological potential and undertake the transformational change required to enable them to participate effectively in the digital economy. 3.3 The Digital Economy in Australia The Australian Government s aim is that by 2020 5 Australia will rank in the top 5 Organisation for Economic Cooperation and development (OECD) countries for: The proportion of Households connected to broadband; Businesses and not for profit organisations using online opportunities to drive productivity improvement, expand their customer base and enable jobs growth; The majority of Australian households, businesses and other organisations have access to smart technology to better manage their energy use; 90% of high priority consumers such as older Australians, mothers and babies and those with chronic disease, or their carers can access individual electronic health records; Australian schools, TAFEs, universities and higher education institutions will have the connectivity to develop and collaborate on innovative and flexible education services and resources to extend online learning resources to home and workplace; and the facilities to offer students and learners, who cannot access courses via traditional means the opportunity for online virtual learning; At least 12% of Australian employees will have teleworking arrangements; and Four out of five Australians will choose to engage with government online. In order to measure its progress in realising this vision, the Federal Government has set Digital Economy Goals focused on the following eight areas: 5 #au20 National Digital Economy Strategy Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 9
1. Online participation by Australian households; 2. Online engagement by Australian businesses and not-for-profit organisations; 3. Smart management of our environment and infrastructure; 4. Improved health and aged care; 5. Expanded online education; 6. Increased teleworking; 7. Improved online government service delivery and engagement; and 8. Greater digital engagement in regional Australia. From a Queensland perspective the State Government has developed a Digital Economy Strategy and Action Plan 6. Its vision is: Queensland to be Australia s most digitally interactive state and to be recognised globally as a digital innovation hub. In order to deliver on that vision it has determined four areas of focus. They are: Queensland Government; People and Communities; Business and Industry; and Digital Industry. It has also established six strategic objectives, which are: 1. Economic growth powered by digital innovation. 2. Digital-first delivery of better government services. 3. Full community and business participation in the digital economy through collaboration. 4. Create the conditions in which Queensland businesses can innovate and thrive in the digital economy. 5. Attract, grow and retain talent into Queensland s digital sector and research institutions. 6. Attract investment and global partnerships to grow Queensland s digital economy. The MIW LGA s individually and collectively are well positioned to facilitate the implementation of the GoDigitalQld - Queensland Digital Economy Strategy and Action Plan. Of particular interest to the region is the State Government s focus on People and Communities and the position of local governments that are best placed to deliver the State Government s investments and initiatives for the communities. 3.4 Example of an Existing Regional Digital Economy Strategy Before discussing the Digital Economy opportunities for the Mackay, Isaac and Whitsunday Local Government Areas, the following is a synopsis of the Digital Economy Strategy 2012-14 undertaken by Melbourne s North 7. The program was a collaboration of seven councils (Banyule, Darebin, Hume, Moreland, Nillumbik, Whittlesea and Yarra), along with NORTH Link and North Melbourne RDA. The underlying premise of their approach is encapsulated in the following: The regional vision is formulated in the knowledge that it is difficult to forge a digital economy at a municipal level due to the limited size of each municipality. A digital economy requires a regional approach at minimum to create a self-sustaining ecosystem of ICT digital innovation activity for both consumers and suppliers. A regional approach requires both co-operation and collaboration across the Councils to build the necessary levels of activity 6 GoDigitalQld Queensland Digital Economy Strategy and Action Plan 2014 7 Digital Economy Strategy for Melbourne s North Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 10
and momentum at the appropriate economies of scale to effect sustainable change within the region. The value of the digital economy is the benefits it provides to both enhanced business competitiveness and increased social amenity for local communities. This translates to creating more local jobs and making the Melbourne s North a better place to live which still provides more opportunities available locally. The strategy resulted in three key goals: 1. A Regional Charter executed by all collaborating bodies; 2. Strengthening the Region through innovation in four priority areas o o o o Arts & Tourism Education Health & Aged Care (including Community Care) Industry & Small Business; and 3. Digital innovation with council Services. 3.5 Digital Economy Opportunities for the Mackay, Isaac and Whitsunday LGAs This Digital Economy Strategy and Action Plan will include a Regional Digital Capability Development Action Plan / Roadmap for each of the three LGAs, ensuring they align with the aims and objectives of both State and Federal Governments and which will underpin and support their individual Economic Development Strategies and the vision for the combined region. Overall strategic objectives that will be achieved or at least enhanced from regional digital economy engagement include: Improved productivity; Increased employment opportunities; A diversified economic base; Reduced economic leakage; Reduced time and cost due to the tyrannies of distance; Improved services to regional health and education; and Reduced social isolation and inequity. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 11
4 DIGITAL ENVIRONMENTAL SCAN FOR THE MACKAY LGA A first step in the development of this Digital Economy Strategy was to undertake an Environmental Scan. This provided a preliminary overview of the current state of the Mackay LGA in relation to its existing broadband capacity and its capability to engage in the digital economy. The scan focussed on assessing current regional demand and supply of broadband telecommunications and ICT services. 4.1 Mackay LGA represented in the region, which also boasts the largest Australian South Sea Islander population. The Mackay LGA is one of the fastest growing in Queensland, with a population of over 121,000 people as of 30 June 2013. The region s prosperous economy is expected to continue to drive strong population growth over the next 20 years. www.communityprofile.com.au/mackay 4.2 Regional Demand Regional demand has been assessed in line with its current economic profile. Mackay LGA s current leading industry sectors are: Manufacturing - $3.4 billion (23.6%); Construction - $1.8 billion (12.7%); and Mining - $1.6 billion (11.4%). The Mackay LGA is home to a diverse and vibrant community with rural and coastal living opportunities in 30 townships, small rural settlements and rural residential areas. Industries by Output The Mackay LGA, one of the largest sugarproducing regions in Australia, and as a The region s lively urban areas include Mackay, Sarina, Walkerston, Marian and Mirani. Tourist-oriented townships are located at highly scenic coastal and hinterland locations and include the townships of Haliday Bay, Eungella, Grasstree Beach, Campwin Beach and Armstrong Beach. Just over an hour s flight from Brisbane, the Mackay region boasts an enviable lifestyle and a buoyant economy with the benefits of a fast-growing coastal city. Its coastal location is complemented by its spectacular natural environment. This includes 31 beaches, a picturesque blue river and a pristine rainforest hinterland. regional capital hosts much of the engineering, manufacturing and mining services industries supporting the wider Mackay-Isaac-Whitsunday economy. www.economicprofile.com.au/mackay Recent reports indicate that there are approximately 32 different nationalities Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 12
4.2.1 Drivers In support of this Digital Economy Strategy and Action Plan, the Environmental Scan identified the following key drivers: Growth and diversity in economic base building on the existing industrial strength; Development of local business and industry providing sustainable employment and career opportunities; Diversity and depth of business and employment across the region s supply chain including logistics and service industries and continual development of the strong agribusiness sector; Continued development in the tourism sector through coordinated regional branding and product development, this will be built upon existing coastal, city and rural assets; Recognising and developing the values of the region; and Developing the investment appeal of the region as a place in which to work, live and do business supported by the lifestyle attributes. 4.2.2 Future Growth Growth and change forecasts for the region include: Population increase The population of the Mackay Region as at 30 June 2013 was estimated at 121,909, and projected by OESR to grow to 197,905 by 2036 (medium series). By 2016 OESR project that the expected population in the Mackay LGA will be 130,896 persons (medium series). http://statistics.oesr.qld.gov.au/profiles/qrp/r esident/pdf Industry expansion/diversification Growth is being fuelled by ongoing activity in the resources sector, resurgence in agribusiness, and growth in construction, logistics and tourism. As well as being the gateway to the rich coal deposits in the Bowen Basin, Mackay is poised to reap significant benefit from the burgeoning Galilee Basin to the north-west. Given the importance of business in providing employment and as such the financial sustenance for the working population and their families, all opportunities should be taken to assist in the growth and development of all industry sectors. Industries by Employment The aim is to grow and diversify these industries, by both expanding existing and emerging opportunities in these sectors. The Mackay Region boasts a diverse range of industry, represented by the recently formed Diversity Mackay Leadership Alliance, an 11 member consortium of industry leaders chaired by Mackay Regional Council Mayor, Deirdre Comerford. The Mackay LGA has a strong array of not-for-profit/community organisations. They include the following sectors: Training - Many specialised services with tailored training programs in relation to health, agriculture, hospitality and mining. Education From pre-school to university CQUniversity is one of two dual sector universities in Northern Australia and the only one in Queensland that has recently become a more comprehensive Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 13
university, after merging with CQ TAFE on 1 July 2014. As a result, CQUniversity now offers over 300 courses and programs from certificates to masters that provide a wider choice of study options. Today, CQUniversity Mackay boasts a City campus and an Ooralea campus, including a $46 million Trades Training Centre. Courses are delivered via traditional, internet and teleconferencing to Australian and overseas campuses. At the Mackay Focus Group session Mr Steven Pace, Head of Digital Media at CQUniversity indicated strong support for the program, from having students assist community organisations to understand and engage in the digital economy. Mr Pace has subsequently presented a discussion paper covering the following points: 1. Rethinking business models; 2. Opening up local data sets; 3. Encouraging young people to pursue digital careers; 4. Encouraging entrepreneurship and start-ups; 5. Encouraging University investment in digital technology; 6. Addressing the productivity decline; 7. Helping disadvantaged people participate; and 8. Educating the community about online security. James Cook University also has a campus in Mackay. The new James Cook University Mackay Education and Research Centre (MERC) is located at the Mackay Base Hospital. The centre accommodates the teaching of their Social Work degree and provides a larger facility for medical and dental clinical placements. The prestigious Health and Medicine Faculty at James Cook University, in partnership with the Mater Mackay, now offers a Bachelor of Nursing Science (Pre- Registration) in Mackay. The Mackay LGA also boasts: 12 private schools; state secondary schools; 25 state primary schools; 20 state pre-schools; and 27 day care institutions. Health Services The Mackay Hospital and Health Service services approximately 160,000 people in an area covering the Isaac, Whitsunday, Capricornia, Dawson and Mackay LGAs. It boasts seven hospitals and eight separate community health services and employs more than 1200 health professionals to provide an outstanding level of health care to the region s community. Aged Care Services The Mackay LGA has nine retirement villages and eleven residential aged care facilities. The region is also served by Blue Care and Mercy Health and Aged Care Services. Sport, Leisure and Recreation The Mackay Region boasts a range of excellent indoor and outdoor sporting and entertainment facilities, including the Mackay Stadium and Mackay Entertainment and Convention Centre. Media The Mackay Region is serviced by four newspapers and seven radio stations. 4.3 Regional Supply The Environment Scan provided a summary of relevant supply-side activity and capability from the perspective of both hard and soft infrastructure. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 14
4.3.1 Soft infrastructure It was noted that the local information and communication technology (ICT) industry is currently stretched in meeting its customer service demands. Ensuing digital disruption will have significant impact on the dynamic of the services and support demanded of the local ICT Industry for example, local ICT providers may see a reduction in sales and services around server and desktop hardware as Cloud based service offerings become more appealing through reduced cost, complexity and effort for local businesses to obtain. As a consequence the local ICT providers will be required to refocus their skillsets to guiding local businesses with their business transformation and providing a different level/type of support. A key consideration should therefore be to ensure that the local ICT industry develops and retains the required skillsets, knowledge and resourcing that business and the community within the Mackay LGA will require. The establishment of appropriate education pathways will require the focus of all major industry groups to ensure local ICT providers can adapt their service offerings to support the business transformation of local SMEs. The Mackay IT Network (MITN) will be well placed to assist in this area. At the Focus Group session Mr Geoff Fleming, Chair of MITN indicated that there are a number of issues facing the ICT industry as a result of the digital economy and MITN plans to play a role in educating the industry as to the changes that will be required if they wish to remain sustainable. It is also anticipated that local providers of business advice and support, such as accountants and business advisors, as training organisations, could play a role in assisting businesses, community organisations and individuals to understand the opportunities and benefits of the digital economy and how they can actively engage in it. 4.3.2 Hard infrastructure Local Retail Service Providers (RSPs) include Telstra, Optus and Vodafone, all of which currently provide 3G and 4G mobile connectivity. Telstra has some fibre throughout the region and is currently deploying 4G wireless, as is Vodafone. The 4G service will provide considerably faster broadband connectivity to compatible mobile devices. Along with the NBN and its infrastructure build (further discussed in the next section), another optical fibre infrastructure builder in the region is Nextgen, which has been responsible for the deployment of the Regional Backbone Blackspots Program (RBBP) linking Brisbane to Darwin via Central and Western Queensland. In addition, another infrastructure builder in the region is Nexium, which is building telecommunications infrastructure for Ergon Energy using both fibre and wireless technology, as well as access to Queensland Rail s fibre network. The majority of the fixed line broadband telecommunications infrastructure servicing premises throughout the area is copper-based DSL. The DSL services are provided either by Telstra or other RSPs (under a wholesale arrangement with Telstra). Mackay Regional Council (MRC) has agreed in principle to make available to Nexium (Ergon s telecommunications arm) its recently completed fibre infrastructure linking its Administration Building in the CBD to its works depot at Paget. This has been done with the view that Nexium would be able to partner with private industry (in this case ATI Telecom) to provide high speed broadband to businesses in the Paget industrial precinct. As of December 2014, business cases for the proposal are still being developed. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 15
5 DIGITAL ENVIRONMENTAL SCAN FOR THE ISAAC LGA A first step in the development of this Digital Economy Strategy was to undertake an Environmental Scan. This provided a preliminary overview of the current state of the Isaac LGA in relation to its existing broadband capacity and its capability to engage in the digital economy. The scan focussed on assessing current regional demand and supply of broadband telecommunications and ICT services. 5.1 Isaac LGA The Isaac (LGA) spans an area of approximately 58,000 km2 in Central Queensland from the coast to the coalfields. The Isaac LGA is home to 24,215 residents, although, an additional 14,950 resource sector workers travel here and are housed in temporary accommodation. At any one time the full-time equivalent population in the Isaac LGA is estimated at 38,670. Isaac s family-friendly communities offer a safe and relaxed lifestyle, and include the modern mining towns of Moranbah, Middlemount, Dysart and Glenden, to the historic communities of Nebo, Clermont and St Lawrence and small picturesque coastal villages and rural localities. Moranbah is the main service centre for the region with an estimated population of 9,120. The region is home to modern recreational facilities including state of the art sports and aquatic centres. www.communityprofile.com.au/isaac 5.2 Regional Demand Located 1,000km north-west of Brisbane and 900km south of Cairns, with access to world class export infrastructure, Isaac LGA is strategically placed to capitalise on the economic opportunities associated with the rise of Asia. Isaac s Gross Regional Product was $10.53 billion in 2013, growing 13.1% since 2012. The Isaac economy is largely driven by the resource sector. As at June 2014 the Isaac LGA hosts 25 operating coal mines, with a further two under construction and 27 in advanced development phase. The industry produces 47% of Queensland s total saleable coal and generates $1.1 billion in royalty payments per year. Agriculture is also an important industry with the total value of agricultural output in the region being $303m. Tourism also features on the economic landscape with the Isaac coast identified as an emerging tourism precinct for development in the Mackay Destination Tourism Plan 2014. The coast also hosts commercial fishing and aquaculture operations. Regional demand has been assessed in line with its current economic profile. Mining is by far Isaac LGA s leading industry sector, as compared to the next two: Mining - $14.5 billion (82.2%); Construction - $1.0 billion (5.8%); and Manufacturing - $641 million (11.4%). Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 16
Industries by Output 5.2.2 Future Growth Growth and change forecasts for the region include: Population increase The population of the Isaac LGA as at 30 June 2013 was estimated at 24,275, and projected by OESR to grow to 36,676 by 2036 (medium series). By 2016 OESR project that the expected population in the Isaac LGA will be 25,803 persons (medium series). http://statistics.oesr.qld.gov.au/profiles/qrp/r esident/pdf Given that mining has a finite lifespan, opportunities for industry diversification are strongly sought after. http://www.remplanlogin.com.au/economy/ 5.2.1 Drivers In support of the Digital Economy Strategy and Action Plan, the Environmental Scan identified the following key drivers: Growth and diversity in economic base building on existing industrial strength; Development of local business and industry providing sustainable employment and career opportunities; Diversity and depth of business and employment across the region s supply chain including logistics and service industries and continual development of the strong agribusiness sector; Continued development of the tourism sector through coordinated regional branding and product development, this will be built upon existing coastal and rural assets; Recognising and developing the values of the area; and Developing the investment appeal of the region as a place in which to work, live and do business supported by the lifestyle attributes. Industry expansion /diversification Growth is being fuelled by strong activity in the resources sector, as well as growth in agriculture and tourism (coast and country). Given the importance of business in providing employment and as such the financial sustenance for the working population and their families, all opportunities should be taken to assist in the growth and development of all industry sectors. Industries by Employment The aim is to grow and diversify these industries, by both expanding existing and emerging opportunities in these sectors. During the Isaac Focus Group session Ms Lynda Pollock, Anglo American Coal indicated that there could be potential for the Moranbah Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 17
2020 Fund to support some digital economy programs or infrastructure that enhanced the capacity and liveability of Moranbah. While mining is dominant, there are a range of industries that support communities in the Isaac LGA providing employment opportunities and services. There are also a number of not-forprofit/community organisations. They include the following sectors: Training While most training is conducted in major centres such as Mackay, Rockhampton, Townsville, or Brisbane, there are some specialised services with tailored training programs in relation to mining and allied services. Education From pre-school to high school The Isaac LGA also boasts: 1 private primary schools; 3 state secondary schools; 14 state primary schools; 1 state kindergarten / pre-school; and 1 community school. Health Services There is a 12 bed hospital in Moranbah and Queensland Health operates Community Health Centres in Glenden, Dysart, Middlemount and Clermont. Townsville Mackay Medical Local (TMML) provides telehealth facilities in Clermont, Dysart and Moranbah, where patients can access specialist services via video conference. Aged Care Services The Isaac LGA has three Aged Care Services. Sport, Leisure and Recreation Most communities in the Isaac LGA offer a range of indoor and outdoor sporting facilities, and in most cases a 50 metre swimming pool and leisure centre. Media During the Isaac focus group session Ms Kayreen Burgum from 4RFM, the local community radio station indicated that they would support the program through information sessions and event promotions. The Isaac Region is serviced by Mackay and Rockhampton-based newspapers as well as local publications, (ie. Clermont Rag, Blackwater Herald and Miners Midweek). 5.3 Regional Supply The Environment Scan provided a summary of relevant supply-side activity and capability from the perspective of both hard and soft infrastructure. 5.3.1 Soft infrastructure It was noted that the local ICT industry is an extremely limited resource with most customer support services needing to be supplied from Mackay or beyond. To enable Isaac LGA to take advantage of the digital economy, businesses in the local ICT industry need to ensure they are resourced with people possessing skills and experience in managed services such as Cloud based services, IaaS (Infrastructure as a Service) and SaaS (Software as a Service). 5.3.2 Hard infrastructure Local Retail Service Providers (RSPs) include Telstra, Optus and Vodafone, all of which currently provide 3G and 4G mobile connectivity. Telstra has some fibre throughout the region and is currently deploying 4G wireless as is Vodafone. The 4G service will provide considerably higher speed broadband connectivity to compatible mobile devices. Along with the NBN and its infrastructure build (further discussed in the next section), another optical fibre infrastructure builders in Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 18
the region are Nextgen and Nexium. Nextgen was responsible for the deployment of the Regional Backbone Blackspots Program (RBBP) linking Brisbane to Darwin via Central and Western Queensland. Nexium is currently building telecommunications infrastructure for Ergon Energy using both fibre and wireless technology, as well as the provision of access to Queensland Rail s fibre network. The majority of fixed line broadband telecommunications infrastructure servicing premises throughout the area is copper-based DSL. The DSL services are provided either by Telstra or other RSPs (under a wholesale arrangement with Telstra). Digital disruption will have significant impact on the dynamic of services and support offered by the local ICT Industry for example, local ICT providers may see a reduction in sales and services around server and desktop hardware as Cloud based service offerings become more appealing through reduced cost, complexity and effort for local businesses to obtain. As a consequence in order to survive, local ICT providers will be required to refocus their skillsets to guiding local businesses with their business transformation and providing a different level/type of support. A key consideration should therefore be to ensure that the local ICT industry develops and retains the required skillsets, knowledge and resourcing that business and the community within the Isaac LGA will require. The establishment of appropriate education pathways will require the focus of all major industry groups to ensure local ICT providers can adapt their service offerings to support the business transformation of local SMEs. Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 19
6 DIGITAL ENVIRONMENTAL SCAN FOR THE WHITSUNDAY LGA The Whitsundays Environmental Scan provided a preliminary overview of the current state of the Whitsunday LGA in relation to existing broadband capacity and capability to engage in the digital economy. The scan focussed on assessing current regional demand and supply of broadband telecommunications and ICT services. 6.1 Whitsunday LGA Whitsunday LGA boasts a strong and diverse economy driven by the agriculture, construction, mining and tourism sectors, and has the potential to become the economic powerhouse of North Queensland. With over $36 billion in major projects planned or under construction, the Whitsunday LGA is set to experience growth over the coming years. Its strong economy, well-planned infrastructure and desirable lifestyle make the Whitsunday LGA an inviting investment environment. Regional demand has been assessed in line with this current economic profile. The Whitsunday area s current leading industry sectors are: The Whitsunday LGA encompasses a total land area of 23,862 square kilometres and includes the major townships of Airlie Beach, Bowen, Cannonvale, Collinsville and Proserpine, with numerous rural and coastal communities and residential areas scattered throughout the area. Mining - $1.2 billion (25.4%); Manufacturing - $563 million (11.9%); and Construction - $530 million (11.2%). Industries by Output The region is home to approximately 33,080 permanent residents, based on ABS estimates on 30 August 2013. Renowned for its relaxed lifestyle, the area boasts beaches, rainforests and large tracts of national parkland. While the area is rural and coastal in its nature, residents and visitors alike enjoy access to contemporary facilities including museums, art galleries, cafes, hotels and restaurants, entertainment facilities and cinemas. www.communityprofile.com.au/whitsunday 6.2 Regional Demand As the gateway to the Great Barrier Reef and the magnificent 74 Whitsunday Islands, the As a result of the thriving tourism industry, transport, property rental, accommodation and food service suppliers are major employers and provide a major source of imported spending into the region. www.economicprofile.com.au/whitsunday 6.2.1 Drivers In support of the Digital Economy Strategy and Action Plan, the Environmental Scan identified the following key drivers: Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 20
Growth and diversity in economic base building on existing industrial strength; Development of local business and industry providing sustainable employment and career opportunities; Diversity and depth of business and employment across the region s supply chain including logistics and service industries; Continued development in the tourism sector through coordinated regional branding and product development, this will be built upon existing coastal, island and rural assets; Recognising and developing the values of the area; and Developing the investment appeal of the region as a place in which to work, live and do business supported by the lifestyle attributes. 6.2.2 Future Growth Growth and change forecasts for the region include: Population increase The population of the Whitsunday local government area as at 30 June 2013 was estimated at 33080, and projected by Norling to grow to 47,200 by 2036 (modest growth). By 2016 OESR project the expected population in the Whitsunday LGA will be 34,400 persons (modest growth). Industry expansion /diversification Growth is being fuelled by strong activity in the resources sector, resurgence in agribusiness, and continued growth in construction, logistics and tourism. As well as being the gateway to the rich coal deposits in the Bowen Basin, Abbot Point north of Bowen is poised to reap significant benefit from the burgeoning Galilee Basin to the west. Given the importance of business in providing employment and as such the financial sustenance for the working population and their families, opportunities should be taken to enhance the growth and development of all industry sectors. Industries by Employment The aim is to grow and diversify these industries, by both expanding existing and emerging opportunities in these sectors. As well as a diverse range of industry, the Whitsunday LGA has a strong array of not-forprofit/community organisations. They include the following sectors: Training Many specialised services with tailored training programs in relation to health, agriculture, hospitality and mining. Education From pre-school to TAFE Barrier Reef Institute of TAFE has two campuses in the Whitsunday Region. The region also boasts: 5 private schools 3 state secondary schools; 8state primary schools; 4 state pre-schools; and 2 Special education. During the Whitsunday focus group St Catherine s School, Proserpine and Whitsunday Christian College, Cannonvale, indicated that they would be interested in providing digital economy education and training Mackay-Isaac-Whitsunday Region Digital Economy Strategy and Action Plan Page 21