Creating Local Enabling Business Environments WELCOME Creating Local Enabling Business Environments 19 July 2018, Perth, Western Australia

Economic Development Australia EDA is a specialist, national body open to all with a professional interest or involvement in economic development. Members are practitioners employed in local government, regional development agencies, state government departments and as private sector consultants. Committed to supporting economic development practitioners to increase the social, economic and environmental prosperity of communities across Australia.

EDA WA State Practitioners Network Goals for 2018-19: Become a recognised leader and advocator in economic development Build a broad, active and learning network of economic development practitioners Priorities for 2018-19: Build our profile and credibility Create meaningful partnerships (e.g., WALGA) Professional development and networking

EDA WA State Practitioners Network Future WA events in 2018 (open to members and non-members): Series of informal practitioner ‘gatherings’ Next, 9 August 2018, Jacqueline Brinkman, Executive Officer, EDA National Seminar: Role of local government in tourism development Seminar: Infrastructure development and freight logistics; practitioner issues and the management of lack impacts Seminar: Supporting place-based economic development and entrepreneurship Economic Development Awards for Excellence 2018 Nominations close tomorrow! National Economic Development Conference Rockhampton, 16-19 October 2018: Call for papers closing 31 July 2018

TODAY’S SEMINAR Creating Local Enabling Business Environments Examine the role of local government in setting the business environment for private business growth. Explore the ways economic development, planning and regulation can be better integrated to improve the conditions for local business growth.

2:00PM Welcome, introduction, purpose 2:10PM Local business environments, private investment and the role of local government Simon White 2:40PM The role of local government in economic development Dana Mason: WALGA 3:05PM Creating small business friendly local governments Lauren Westcott: SBDC 3:30PM Tea and coffee break   3:50PM Local planning reforms toward for a more enabling local business environment Shane Greive: Curtin University 4:15PM The trials and triumphs of local reforms: City of Vincent Len Kosova: Vincent 4:40PM Panel of speakers: Questions, answers and final comments 5:00PM Close and official seminar debrief The Aviary (drinks at own cost)

Simon White Publicus Pty. Ltd. 19 July 2018, Perth, Western Australia Business Places Creating Better Local Business Environments in Western Australia Simon White Publicus Pty. Ltd. 19 July 2018, Perth, Western Australia

Economic development and local government Schizophrenic governments? Economic development Governance Opportunities for better synergy and alignment Private investment drives growth, jobs and services Large manufacturing businesses Local cafés and restaurants Micro businesses Existing business community Potential new businesses ALL INVESTORS IN THE LOCAL ECONOMY

Local private investment drives growth, jobs and services Local business environments affect local investment decisions Business environment Markets Enterprise dynamics

Local Business Environment Policies and strategies Statements of intent: How council will promote economic development, small business, etc. Local planning policy Local economic development policy/strategy Small business policy/strategy Home-based business policy/strategy Laws and regulations Governance mechanisms: How council governs the business sector Local Planning Scheme Structure Plan and Local Development Plan Frameworks Development (Planning) Approval Building codes Health regulations Local licenses and permits Institutional arrangements Engagement mechanisms: How council interacts with, and responds to local businesses and investors Business Advisory Group Local SME Forums

Why the business environment is important Investors have a choice High start up costs lower productivity and reduce competitiveness Good regulation: More effective (better coverage, better results) More efficient (less cost, focused, responsive) Regulatory Best Practice

Business environments reflect our place in the global economy The Australian business environment has room for improvement New Zealand! World Bank: business environment reforms affect GDP State and local business environments are critical Especially in a federation

Better business environments Reduce costs Business regulation becomes more efficient (to business and government) Reduce risks Business regulation is transparent, rule- based and predictable Increase competitive pressures Open to new entrants, not protecting existing businesses against competition

Creating better local business environments Policies and strategies for economic and business development Identify local challenges, problems and opportunities and help economic actors to respond Provide a vision Framework for council to act A basis for working with other tiers of government, business, academia, and the local community Local laws and regulations Govern business activities in an efficient and effective manner: a realistic and proportionate response NOT about de-regulation Rather SMART regulation Institutional arrangements Improve dialogue between council and the local business sector A government that listens––beyond consultation Engage diverse business stakeholders Facilitate links between businesses and other actors

Outcomes of a better local business environment Business compliance costs reduced Less time, fewer steps, lower direct costs Local government costs reduced Less time, few steps (automation) Inspection costs reduced: away from universal (low risk) inspections Rates of business compliance increase More complexity leads to lower compliance Simpler, more transparent systems improve compliance Increased local government revenue More compliance can lead to more local government revenue More business investment leads to more local government revenue

Some elements of an enabling local business environment DIVERSE ENVIRONMENT Different industry sectors (diverse and specialised) Range of business sizes (micro, small, medium, large) Different types of owners (e.g., women and men, migrants) Found in different locations VIBRANT LOCAL ECONOMY Signs of competition Many businesses starting… and failing Signs of business growth INNOVATION Business is responsive to markets Signs of people doing new things: new products, services, business models Governments responsive to changes Competitiveness of local firms increases LINKAGES Sub-contracts between micro, small, medium and large-scale enterprises Joint ventures NETWORKS Access to advice, information (business and technical), support, etc Strong independent business organizations Regular government engagement with the business community

Small Business Retail Regulation Review Victoria 2017 Uncoordinated: Multiple licenses, permits and approvals Cafés and restaurants can require up to 11 licences, permits, approvals from local and state governments––average additional cost per business of $16,000 Fragmented entry: No single entry point for business owners to initiate the approvals process Separate applications: Often completed at different stages of the approvals process No alignment: Council departments and decision makers independently consider applications Disproportionate: Burden on businesses is disproportionate to the public risk

Regulatory reform cost savings to small business Victoria 2017 Assessed reforms Estimated reform benefits to business (A$ million) Improving access to regulatory information * 6.8-13.6 Reducing business approvals times 46-93 Development of standards for footpath trading 2.8-3.1 Development of standards for portable signage 1.2 Streamlining car parking approval requirements 1.6-2.2 Streamline fixed signage approval requirements 0.7-1.2 Online registration of fixed premises food businesses 0.6-1.8 Remove recording requirements for Class 3 food businesses 13 TOTAL BENEFIT TO BUSINESS $73-129 million SOURCE: KPMG 2017

Source: Nous Group 2017

Source: Nous Group 2017

Options for reform Policies and strategies Creating a competitive policy framework Small business, home business, etc. Public procurement Payment terms for local suppliers Laws and regulations Digitisation, on-line processes, clear approval criteria Introducing smart regulations (and reducing red tape) Improving the planning and zoning system Development applications Alfresco Signage Parking Institutional arrangements Establishing platforms for regular business dialogue One-stop-shop arrangements

Reform initiatives On-line business licenses, permits and approvals SmartForms–online forms, hosting and support Real-time tracking of progress (App tracker) City of Brisbane (Qld.), City of Vincent (WA) Provide business with a regulatory road map Inter-linkages between permits (what comes first)––adjudication criteria– –fees––indicative timeframes Council concierge A single entry point for business owners Helps identify required permits and provides continuous service throughout Parks Shire (NSW) Shift from sequential to concurrent processing 30-day (15-day) payments Business Owners Bill of Rights New York City Shift from ‘consultation’ to ’dialogue’ Beyond approving drafts Visitation programs Online engagement State support for local reforms: Western Australia: SBDC Business Friendly Service NSW: Easy to do Business Program

Challenges for local government How to more effectively align economic and business development with planning and governance regimes How to effectively engage with and respond to local investors–of all kinds! From ‘consultation’ to ‘dialogue’ How to improve regulatory and planning regimes Increasing transparency Reducing costs and risks Improving coverage and effectiveness

Comments, questions THANK YOU