Agenda of Economic Development & Communications Committee Meeting

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 5

22/6/2017

Economic Development & Communications Committee Meeting (Open Portion) held Thursday, 22 June 2017 at 5.00 pm in the Lady Osborne Room, Town Hall.

COMMITTEE MEMBERS

Deputy Lord Mayor Christie (Chairman)

Zucco

Ruzicka

Thomas

Denison

ALDERMEN

Lord Mayor Hickey

Briscoe

Sexton

Burnet

Cocker

Reynolds

Harvey

Apologies: Nil.

Leave of Absence:

Deputy Lord Mayor R G Christie (Chairman).

1. Co-Option of a Committee Member in the event of a vacancy

2. Confirmation of Minutes

The minutes of the Open Portion of the Economic Development & Communications Committee meeting held on Thursday, 27 April 2017 and the Special Economic Development & Communications Committee meeting held on Thursday, 1 June 2017, are submitted for confirming as an accurate record.

3. Consideration of Supplementary Items

Ref: Part 2, Regulation 8(6) of the Local Government (Meeting Procedures) Regulations 2015.

Recommendation

That the Committee resolve to deal with any supplementary items not appearing on the agenda, as reported by the General Manager.

4. Indications of Pecuniary and Conflicts of Interest

Ref: Part 2, Regulation 8(7) of the Local Government (Meeting Procedures) Regulations 2015.

Aldermen are requested to indicate where they may have any pecuniary or conflict of interest in respect to any matter appearing on the agenda, or any supplementary item to the agenda, which the committee has resolved to deal with.

5. Transfer of Agenda Items

Regulation 15 of the Local Government (Meeting Procedures) Regulations 2015.

A committee may close a part of a meeting to the public where a matter to be discussed falls within 15(2) of the above regulations.

In the event that the committee transfer an item to the closed portion, the reasons for doing so should be stated.

Are there any items which should be transferred from this agenda to the closed portion of the agenda, or from the closed to the open portion of the agenda?

Item No. 6.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 8

22/6/2017

REPORT TITLE: Opportunity for Local Media Companies From the Hobart Xi'an Friendship City Relationship

REPORT PROVIDED BY: Economic Development Project Officer

Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. This report is seeking Council support to provide endorsement for a Hobart television broadcaster to join the ‘Belt and Road Media Union’ on invitation from Xi’an, Chinese friendship city of Hobart.

1.2. This report also seeks Council’s financial support to send an individual representing the City of Hobart to Xi’an to attend the launch of the Belt and Road Media Union on 10 July 2017 at an estimated travel cost of $2,500 (not including a professional fee). The launch will involve important discussions relating to the operation of the Belt and Media Union and the City of Hobart has been advised of the importance of participation.

1.3. The community benefits of this proposal are for the creative media sector in Hobart and Tasmania. Supporting a local television broadcaster involvement in this media union could present local media production companies with a number of opportunities. These include access to partners and finance for the international co-production of television movies, plays, documentaries etc. It would also provide access to broadcasting networks in a number of cities and countries associated with the union.

1.4. Given that Tasmanian media companies would be contributing local content to an international network, it is also likely that the pristine and beautiful scenery of Tasmania would be broadcast to large international audiences which could drive additional visitation and investment.

2. Report Summary

2.1. The City of Hobart was very recently approached by its friendship city of Xi’an to support the Belt and Road Media Union (the media union) by endorsing a Hobart television broadcaster to become a member (Attachment A).

2.2. The media union is an initiative born from the ‘One Belt One Road’ initiative championed by the Chinese President Xi Jinping. ‘One Belt One Road’ aims to accelerate the development of new infrastructure linking China to its existing and future markets and trading partners across Russia, Asia, Eastern and Western Europe and Africa by reviving, expanding and re-orientating the old east-west aligned Silk Road routes, which for many centuries linked China to Europe. Such links are not purely physical, the initiative also includes non-physical links such as those created through media collaborations.

2.3. The media union is intended to facilitate international co-production of movies, documentaries etc., establish a foundation through which financial investment will be channelled into media projects and act as a platform for accessing broadcasting opportunities in a number of international locations.

2.4. Supporting this union requires a low commitment from the City of Hobart. The City must be seen by Chinese partners in the media union to support the local television broadcasting partner in its intent to join.

2.5. The City is currently conducting initial conversations with local television broadcasters to ascertain their level of interest. It is intended that the results of these conversations will be reported at the time of committee as they are ongoing.

2.6. If the City of Hobart can find a Hobart television broadcaster interested in exploring this opportunity further by joining the union, it is felt that many opportunities for the broadcaster and other media production companies in Tasmania will arise.

2.7. The City has been informed that on joining the media union, if the Hobart television broadcaster for any reason wanted to withdraw, this could be done without penalty (financial or otherwise).

2.8. The sole reason that a television broadcaster from Hobart has been invited to join this media union is because Hobart and Xi’an are friendship cities. Benefits flowing to Hobart and Tasmanian businesses would therefore be attributed directly to the friendship which is a significant outcome for the City.

2.9. This request on face value may seem an unusual one for the Council to consider. At this early stage, it is still unclear as to whether it will result in solid economic and cultural outcomes for Hobart. It is felt however that the commitment and financial cost to the Council of exploring this opportunity further is outweighed by the potential opportunities it could present to local businesses.

3. Recommendation

That:

1. Council endorses the General Manager to hold discussions with local television broadcasters regarding joining the ‘Belt and Road Media Union’, as invited by Hobart’s friendship city Xi’an.

2. Council considers funding the attendance of one person representing the City of Hobart to the launch of the Belt and Road Media Union on July 10 in Xi’an. This cost of $2,500 (not including professional fees) is to be attributed to the Economic Development Function of the 2017/18 Annual Plan.

3. Following the launch of the media union on 10 July 2017, Council explores potential opportunities arising from the Belt and Road Media Union with media producers and production companies throughout Tasmania, by sponsoring a roundtable event.

4. Background

4.1. The City of Hobart was approached by its friendship city of Xi’an in China to support a ‘Belt and Road Media Union’ (the media union) in late May 2017.

4.2. A number of translated documents were sent along with this request but the precise details of the union and what was being asked of the Council were unclear.

4.3. For this reason, external advice was sought from a Tasmanian company (Reckless Moments) with extensive experience of facilitating media collaborations and delivering creative projects in China.

4.3.1. Reckless Moments are the organisation that produced the very successful 7-city, 9-concert tour of China for the Tasmanian Symphony Orchestra earlier this year. Additionally, one of the members of Reckless Moments is a fluent Mandarin speaker and qualified interpreter. She was therefore able to conduct a number of conversations in Mandarin and analyse the documents pertaining to this media union in their original language, thus drawing more detailed insights than English versions of the documents provided. The advice given is included in this report as Attachment B.

4.4. Some key guiding comments from the advice of Reckless Moments are:

· “The starting points for OBOR [see below] in China are Xi’an and Fuzhou – both sister cities of Hobart. It is a fortuitous coincidence that the City of Hobart might be able to take advantage of.”

· “…it might be a propitious time for the City of Hobart to be seen in Xi’an, to be sighted at the [media union]…”

· “It [attendance at the media union launch] might be a very visible (and cost effective) way of showing Xi’an that Hobart is serious about the sister-city relationship.”

4.5. The media union is a specific project that has arisen from the ‘One Belt One Road’ initiative of the Chinese Government.

One Belt One Road (OBOR)

4.6. OBOR is a major infrastructure development initiative of the Chinese Government. OBOR aims to accelerate the development of new infrastructure linking China to its existing and future markets and trading partners across Russia, Asia, Eastern and Western Europe and Africa by reviving, expanding and re-orientating the old east-west aligned Silk Road routes, which for many centuries linked China to Europe.

4.7. China’s new OBOR initiative proposes two new Silk Road routes, the Silk Road Economic Belt to connect China to Russia, the Middle East and Western Europe by road and rail and the 21^st Century Maritime Silk Road to connect China to Southeast Asia, South Asia, Africa and the Mediterranean by sea.

4.7.1. Interestingly Hobart’s friendship city of Xi’an is on the Silk Road Economic Belt and Hobart’s other Chinese friendship city Fuzhou is on the maritime Silk Road. This places Hobart in a strong position to access associated opportunities that other Australian cities cannot.

4.8. This OBOR initiative has been robustly championed by President Xi Jinping whose second five year term will not expire until November 2022 and so it is likely to be a prominent part of China’s economic development planning for the foreseeable future.

4.9. The expected cost of this initiative has been estimated at $900 billion USD so it is clear to see that there is a significant financial commitment from the Chinese government.

4.10. It is already evident that the scope of the OBOR initiative extends well beyond infrastructure construction.

4.11. A number of Chinese cities have been tasked by the Chinese government to promote specific aspects of the OBOR initiative.

4.12. Xi’an’s task is to establish a new Silk Road Television Channel to:

“…show the historical culture, local customs and practices, religious culture and so on of the countries along the line of the belt and road…”

Belt and Road Media Union

4.13. As part of the establishment of the television channel and to help develop content for the channel, the Xi’an Broadcast Station has opted to establish the Belt and Road Media Union.

4.14. The media union will:

“Promote the new One Belt One Road Initiative and do this through co-operation and collaboration with other members of the media union, by entering into co-funded co-productions, which can then be broadcast by the new Silk Road Television Channel and by the media union members’ own television channels and via other digital platforms connected to or owned by other members of the media union.”

4.15. It is intended that the media union will operate in the following ways:

· Facilitate the international co-production of movies, TV plays, documentaries, cartoons etc.

· Establish the Silk Road Foundation providing some of the financial investment for the media products.

· Host international and professional awards for co-production projects, co-production broadcast programs etc.

· Be a platform for co-production. Union members will provide assistance to each other in the promotion and broadcasting of co-production programs in their own cities / countries.

· Facilitate information and contact sharing. Members of the union will be asked to help locate investors, identify production facilities and introduce distribution and promotional opportunities.

4.16. The media union and associated benefits can only be accessed if a local television broadcaster agrees to join.

City of Hobart endorsement

4.17. The City of Hobart cannot be a member of the media union itself.

4.18. As has often found to be the case in previous dealings in China, the government, whether Federal, State or Local can unlock opportunities for business that would not arise otherwise. For this reason, the City of Hobart as friendship city to Xi’an must endorse the involvement of a Hobart television broadcaster. This endorsement can be shown by attendance of a representative of the City at the launch of the media union.

5. Proposal and Implementation

5.1. It is proposed that the City of Hobart discusses the media union opportunity with local television broadcasters.

5.2. In supporting this media union, it is proposed that the City funds the attendance of a suitably skilled individual to represent the City at the launch of the union on July 10 in Xi’an. The presence of this individual will demonstrate the support of the City of Hobart and also be a valuable representative in a number of discussions around the operation of the media union that will take place.

5.3. It is proposed that the City contacts state wide media production companies and producers to advise them of the potential opportunities and ascertain their initial interest in becoming involved.

5.4. If a Tasmanian based television broadcaster could also attend the July meeting in Xi’an that would be at their own cost.

5.5. Following the 10July, the attendee of the launch will provide feedback that further informs a roundtable discussion with the television broadcaster, media production companies and producers that are interested in possible opportunities. This will be hosted by the City of Hobart.

6. Strategic Planning and Policy Considerations

6.1. Supporting the involvement of a Hobart television broadcaster in the Belt and Road Media Union is in line with the following City of Hobart strategies:

Capital City Strategic Plan (2015 - 2025)

Goal 1 - Economic Development, Vibrancy and Culture City growth vibrancy and culture comes when everyone participates in city life:

1.1.5 Implement the City of Hobart’s Economic Development Strategy.

1.1.6 Develop relationships with other cultural and educational institutions as opportunities arise.

1.2.1 Develop strategic relationships with export focussed industries such as education, arts, tourism and Antarctic research.

1.2.2 Partner with stakeholders to promote Hobart as a safe and culturally receptive city with a quality urban and natural environment.

1.2.4 Support the Council’s existing sister city relationships with Yaizu, L’Aquila and Xi’an and respond to new opportunities.

International Relations Action Plan

2.2 Understand the culturally important aspects of Hobart’s sister /friendship cities and seek to promote them in Hobart.

2.2.3 Seek to investigate options for developing and sustaining international relationships via social media channels, expatriate networks and other appropriate methods, as a means of increasing knowledge and reinforcing relationships between visits.

3.4 Actively discuss and explore economic opportunities with the City of Xi’an, China based on the action plan attached to the Friendship City Agreement.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The commitment required by the City of Hobart is relatively low. Endorsement in the initial stage requires the City to fund a presence at the launch of the media union. Economy return flights to Xi’an from Hobart are currently around $1500. A hotel room for two nights is estimated to be $600 (total) with meals and other expenses including taxis is estimated at around $100 per day ($400). The total cost (excluding professional fees) would be in the region of $2500.

7.2. Impact on Future Years’ Financial Result

7.2.1. Beyond the initial endorsement, it is not anticipated that future costs to the City of Hobart will arise.

8. Legal, Risk and Legislative Considerations

8.1. The City of Hobart will not be required to sign any legally binding agreements, just an endorsement of a local television broadcaster.

9. Environmental Considerations

9.1. The environmental impact of aviation cannot be disputed, with air travel contributing significant greenhouse gas emissions linked to climate change. A small proportion of this can be addressed through the purchase of a ‘carbon offset’ at the time of buying tickets.

10. Social and Customer Considerations

10.1. This opportunity that has arisen only because of the friendship relationship between Xi’an and Hobart. Pursuit of this is likely to create clear cultural and economic value from this friendship relationship which is a positive outcome for the Council’s customers.

10.2. Co-production of television content and the broadcasting of programs on the Hobart network from cities in the media union is a way of reaching a greater proportion of the Hobart and Tasmanian community with information about different cultures and countries.

11. Marketing and Media

11.1. In seeking to engage media production companies throughout Tasmania, it is necessary that details of this opportunity are communicated through the media, potentially in the form of a radio interview, press release, content on the Council’s website / social media channels.

12. Community and Stakeholder Engagement

12.1. For economic and social outcomes to be achieved from involvement in this media union, it is important that Hobart television broadcasters and producers / production companies are engaged. This will be achieved through direct contact from the City of Hobart and a roundtable event.

13. Delegation

13.1. This matter is delegated to the Council.

As signatory to this report, I certify that, pursuant to Section 55(1) of the Local Government Act 1993, I hold no interest, as referred to in Section 49 of the Local Government Act 1993, in matters contained in this report.

Lucy Knott

Economic Development Project Officer

Tim Short

Group Manager Executive & Economic Development

Date: 16 June 2017

File Reference: F17/63902

Attachment a: Invite from Xi'an to support the Belt and Road Media Union ⇩

Attachment b: Reckless Moments Advice Belt and Road Media Union ⇩

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