Agenda of Economic Development & Communications Committee Meeting

Item No. 6.1

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 8

23/11/2017

REPORT TITLE: Yaizu 40 Year Anniversary delegation August 2017

REPORT PROVIDED BY: Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide the Council with an overview of the City of Hobart led delegation to Yaizu in August this year.

1.1.1. The purpose of the visit was to commemorate 40 years of sister city friendship.

1.2. The purpose of Sister/Friendship City relationships is to increase international understanding. Our international relationships have the ability to stimulate economic growth, increase tourism and assist in establishing reliable business contacts which can create long-term benefits to our local community.

1.2.1. They also enable communities to exchange ideas, gain an international perspective and increase their understanding of global issues.

1.2.2. Social and cultural exchanges between Sister Cities break down intercultural barriers and promote diversity, which encourages openness, tolerance and mutual understanding, all of which enrich our community.

Hundreds of students have benefitted from the Yaizu sister city student exchange program over the past 29 years.

1.2.3. Greater interaction with the rest of the world exposes us to different perspective and new ideas.

2. Report Summary

2.1. The City of Hobart delegation to Yaizu was to commemorate 40 years of sister city friendship.

2.2. This was the largest overseas delegation the Council has undertaken and was symbolic of the importance of the 40 year anniversary of the relationship.

2.3. The delegation included aldermen, council officers, interpreters, three community members, the former Lord Mayor Valentine and the former Lady Mayoress Plaister.

2.4. The delegation undertook an extensive program of meetings and official functions during its visit from Friday 11 August to Tuesday 15 August 2017.

2.5. It is proposed that the future of the relationship must be considered and actively managed as many people who were associated with the early success of the relationship on both sides are no longer as active or able to contribute as they have in the past.

2.6. Since the delegation returned from Yaizu, the Mayor of Yaizu has indicated an intention to lead a Yaizu delegation to Hobart mid to late next year. It is likely that the delegation will include the Yurikamome Children's Choir. Should this be the case officers will investigate the potential for the Choir to perform as part of Festival of Voices.

2.7. It is also understood that the Mayor wishes to follow up in the economic talks held as part of the recent visit.

3. Recommendation

That:

1. The Lord Mayor formally invite the Mayor of Yaizu, Mr Hiromichi Nakano and the Yurikamome Children’s Choir to Hobart in 2018.

2. Council officers work with the City of Yaizu to plan for this visit and to explore the possibility of the Yurikamome Children’s Chior performing as part of the 2018 Festival of Voices.

3. Council officers work with the Department of State Growth, UTAS and industry to explore and develop new economic opportunities arising from the Yaizu – Hobart relationship.

4. Background

History of the relationship

4.1. The origins of the Hobart-Yaizu Sister City relationship began with the tuna fishing fleets that once harboured in Hobart during the 1960s and 1970s. The fishermen were from the large tuna fleet based 1 ½ hours south of Tokyo, in Yaizu.

4.2. Because of regular and long visits in Hobart from the fishermen, business and personal connections started to form between Hobart and Yaizu.

4.3. The then Lord Mayor of Hobart, Alderman Doug Plaister, visited Yaizu in the mid-1970s and began the process of establishing a sister city relationship. He also met a local woman, Fumiko, who would later become his wife.

4.4. The Hobart-Yaizu Sister City relationship was formalised on 17 February 1977, making the agreement the 6th oldest Japan-Australia sister city relationship.

4.5. There have been a number of official visits between the two cities (Yaizu visiting Hobart too) to commemorate the 25th, 30th and 35th anniversaries.

4.6. In 2001, the Council established a community support committee, the Yaizu Sister City Committee - comprising 10 members, including representatives from the Australia Japan Society and a number of interested local people. The committee supports a variety of educational and cultural activities and exchanges with local schools.

Yaizu 40 year anniversary delegation

4.7. The Council will recall that at its meeting of 8 May 2017 it resolved inter alia that:

1. The Council endorse a delegation to travel to Yaizu in August 2017 as part of the 40th anniversary celebrations of the relationship, with the estimated cost of up to $6,575 per Alderman, to be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

2. Costs associated with Mrs Fumiko Plaister’s participation in the delegation to Yaizu, as well as an interpreter, be borne by the Council at an approximate cost of up to $6,575 per person, to be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

4.8. Subsequently the Council at its meeting of 5 June 2017 resolved that:

1. The Council endorse subsidising 50% of travel (flight and train) and hotel costs for up to four community members to join a Council led delegation to Yaizu in August 2017, at a total cost of $5,400, to mark the 40th anniversary of the relationship between Yaizu and Hobart.

2. In the event that more than four community members indicate an interest in joining the Council delegation, a further report be prepared for the Council.

3. Given their close association with the Hobart/Yaizu Sister City relationship, the Lord Mayor invite former Lord Mayors, Valentine and Freeman to join the delegation, on the basis that the Council will fund 50% of the travel costs, including flight, train and hotel (at the same class as Aldermen, as provided under the Council’s policy)

4. The Council invite members of the public and business community, together with individuals and organisations who have had involvement with Hobart/Yaizu relations, to participate in the delegation, at their own cost, via mediums such as social media, newspaper advertising and other appropriate methods.

(i) The Council also invite representation in the delegation from UTAS, other educational organisations and businesses, particularly from any students who may have connections with Yaizu.

5. Tentative nominations to participate in the delegation from Aldermen Zucco, Briscoe and Cocker be noted.

6. The cost be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

7. The Lord Mayor issue a media release in respect to the visit.

4.9. Further to the above, the Council at its meeting of 24 July 2017 resolved that:

1. The Council consider funding a celebratory dinner for up to 40 people to mark the 40th anniversary between Hobart and Yaizu and to showcase Tasmanian produce.

2. This estimated cost of $5,700.00 (not including staffing and venue costs) is funded from the existing budget allocated for the delegation attributed to the Economic Development Function of the 2017–18 Annual Plan.

3. The Council reconfirm the membership of the delegation to Yaizu as being:

(i) The Lord Mayor, Aldermen Zucco, Briscoe, Cocker, Denison, Harvey;

(ii) Mrs Fumiko Plaister;

(iii) Former Lord Mayor Rob Valentine, MLC

(iv) The General Manager and two nominees;

(v) An official interpreter;

(vi) Three part funded community members;

(vii) A fourth community member to be nominated at the General Manager’s discretion that could act as an informal interpreter;

(viii) A chef as referred to in part 2 above.

Purpose of visit

4.10. The purpose of the visit was to commemorate 40 years of sister city friendship.

4.11. In February this year a very significant delegation of 30+ people from Yaizu visited Hobart for a diverse range of activities and events that marked the 40th anniversary.

4.12. The delegation included aldermen, council officers, interpreters, three community members, the former Lord Mayor Valentine and the former Lady Mayoress Plaister, as noted below:

The Lord Mayor Alderman Sue Hickey

Alderman Jeff Briscoe

Alderman Philip Cocker

Alderman Tanya Denison

Alderman Bill Harvey

The Hon. Rob Valentine MLC – self funded

Mrs Fumiko Plaister, former Lady Mayoress, City of Hobart

Mr Nick Heath, General Manager, City of Hobart

Mr Philip Holliday, Director Community Development, City of Hobart

Mr Tim Short, Group Manager, Executive and Economic Development, City of Hobart

Ms Yukiko Burns, Interpreter, City of Hobart

Dr John Kertesz, Interpreter, City of Hobart

Ms Glenda Hosking – self funded

Ms Cleo Cocker – self funded

Ms Amy Chamberlain – self funded

Ms Kit Cheng Soo – self funded

Ms Rachel Stivicic – community member – 50% subsidy

Ms Julie Marsaban Stirling – community member – 50% subsidy

Ms Faith McDougall – community member – 50% subsidy

4.13. This was the largest overseas delegation the Council has undertaken and was symbolic of the importance of the 40 year anniversary of the relationship.

4.14. The inclusion of community representatives enabled the development of personal and professional interests and connections and lets the relationship be viewed from new or fresh eyes. These community connections help the Council in Hobart and Yaizu to strengthen international links but also bring increased experience, knowledge and skill back to the community.

4.14.1. Ms Julie Marsaban Stirling and Ms Rachel Stivicic will be present at the Economic Development Committee meeting to provide short presentations on their experiences.

4.15. The Itinerary was as follows:

Thursday 10 August, depart Hobart and arrive in Tokyo

Friday 11 August, arrive in Yaizu

Tuesday 15 August, depart Yaizu

Wednesday 16 August, arrive in Hobart

4.16. The delegation undertook an extensive program of meetings and official functions during its visit. This included:

Friday 11 August

· Visit to Yaizu Shrine

· Visit to the study centre of disaster prevention – this was a very new facility where the delegation was able to experience the simulated force of an earthquake the same magnitude that struck Japan in March 2011 (causing the tsunami and subsequent Fukishima meltdown) and was magnitude 9.0. The centre manager also gave a talk about Yaizu’s preparedness for future disasters including the use of drones to locate people needing rescue and assistance.

· Informal dinner with the Mayor Hiromichi Nakano, Deputy Mayor Koji Shimoyama, President Tokuichi Nishikawa and members of the Yaizu-Hobart Friendship Association. During the dinner a performance was given by members of the Yaizu Soroptimists group, which has a link to Hobart through the Hobart Club and delegation member Ms Julie Marsaban Stirling.

Saturday 12 August

· Deep-Sea Water Facility, which is a new institute researching the deep sea areas of Japan’s coast including marine life and the impacts of climate change.

· Ceremony for Hobart Street

This was a highly significant occasion with the formal naming of a street in Yaizu’s busy port area, literally “Hobart Street”. There was a formal dedication ceremony and significant plaque and garden placed into the footpath in Hobart Street to commemorate the occasion.

· Visit to the new fisheries cool store facility

This was again a demonstration of new development in Yaizu with a brand new cool store facility for the tuna catch.

· Greeting ceremony at Yaizu City Council

This was the formal ceremony to welcome the delegation and hosted in the Council Chamber. The official gift exchange took place during this event.

Yaizu’s gift to Hobart was a vibrant painting of Mt Fuji which will be displayed in the Town Hall. Hobart’s gift to Yaizu was a bronze sculpture of a Tasmanian tiger and was very well received. During the ceremony a number of Yaizu City Councillors were present, all of whom introduced themselves in English. It was evident that considerable thought had gone into preparing for this function.

· Welcome lunch by the Fishery Association.

· Visit to the grave of the former Mayor Hattori

· Paddy fields play of Fujimori (Welship)

This was a play put on by participants of a local welfare centre and told the story of rice cultivation. Again, considerable effort had been gone to in presenting this play.

· Formal welcome reception with Mayor Hiromichi Nakano and his wife Ms Fusako Nakano; Deputy Mayor Mitsuru Handa; Deputy Mayor Koji Shimoyama; President Tokuichi Nishikawa of the Yaizu-Hobart Friendship Association; Vice President Kuno and Mr Warashina of the Yaizu-Hobart Friendship Association; Mr Sato Chairman of the Board of Education; Dr Oota Director of Hospital Management; Mr Saito Chairman of Yaizu City Council; Mr Yoshiaki Ishida Councillor; Mr Hiromi Suzuki Councillor; Mr Ikegaya Councillor, Ms Fukada Councillor, Mr Aoshima Councillor, Mr Matsumoto, Councillor and staff of Yaizu City Council

The dinner was a highlight of the visit – again because of the clear effort that had been gone to in preparing. The evening was a constant procession of dances and performances, most notably including a singing performance by the Yurikamome Children’s Choir (which has been to Hobart previously) and a Samurai sword demonstrations with sword that was over 400 years old.

Sunday 13 August

· Ara Matsuri Festival, Yaizu Shrine00

The delegation was given the opportunity first hand to witness the stunning Aru Matsuri Festival , which could be described as a form of organised chaos as hundreds of traditionally dressed Yaizu residents carry two shrines nonstop though the city for 11 hours. It is difficult to adequately describe the atmosphere generated by the intense noise of hundreds of people shouting and yelling as the shrines moved through the streets of Yaizu. The pride in this festival was very evident.

· Afternoon visit to Shizuoka City.

· Thank you dinner – AEON

In the evening the Hobart delegation hosted a thank you dinner for our Yaizu hosts. This dinner took place within the restaurant in the AEON shopping centre. This was a significant choice for a number of reasons.

The shopping centre car park hosts a garden of Tasmanian plants including a eucalyptus and flowering wattle, which was planted in commemoration of a previous delegation visit many years ago. These trees were now a significant size.

AEON itself sells Tasmanian salmon, beef and wine. The delegation saw a very significant display of the produce which we were told is a strong product line for the business.

Monday 14 August

· A key focus for this visit in addition celebrating 40 years of history was also to discuss the future of the relationship. Mayor Nakano hosted a meeting which appeared on our program as the “Twinkle Twinkle Future Meeting”. The Mayor described to us that the Japanese words for a meeting about the future translated in English to “Twinkle Twinkle” - meaning a discussion about the future and the stars in the sky.

Again, Yaizu went to considerable effort in planning for the meeting. It was attended by Mayor Nakano, Deputy Mayor Mitsuru Handa, Deputy Mayor Koji Shimoyama, Hospital staff, Yaizu City Council staff from the Department of Economy and Industry, Yaizu City Council staff from Department of Citizen’s Affairs, Representatives of the Chamber of Commerce, Representatives of the Environment Greening Project Cooperative Association.

City of Hobart delegates who also took part in the meeting were Alderman Jeff Briscoe, Alderman Philip Cocker, Alderman Tanya Denison, Alderman Bill Harvey, Nick Heath, Philip Holliday, Tim Short and Mrs Yukiko Burns (interpreter).

Both sides presented the current economic situations in our cities and Lord Mayor invited each of the Hobart Aldermen to discuss their various areas of Council interest and the Council committees they were representing.

Yaizu were very clear about the wish to explore new areas of exchange beyond education and fishing and hence included areas of environment, health care and aged care.

In the time that was allowed for the meeting it was resolved that staff from each Council would remain in contact to explore opportunities in more detail.

Since returning from Yaizu, staff from Yaizu Council have now confirmed that Mayor Nakano wishes to visit in August next year to continue discussions.

· Waterfront fireworks – previous delegations have also been able to witness the very impressive hour long firework display which is partly sponsored by private companies.

The Lord Mayor was invited to launch the fireworks and address the crowd, estimated to be 100,000 people.

We were advised the fireworks cost in excess $300,000 and were one of the larger displays in Japan.

Tuesday 15 August

· Gyokuro no sato (including the experience of green tea)

On the final morning the delegation was taken to a traditional green tea ceremony followed by a tour of a traditional Japanese guest inn that dated back to the 1800s and is now a Museum.

5. Proposal and Implementation

5.1. It is difficult to argue, that having lasted 40 years the relationship with Yaizu has not been a successful sister city relationship.

5.2. It is the 5^th oldest Australia – Japan relationship in existence.

5.3. Nevertheless it is proposed that the future of the relationship must be considered and actively managed as many people who were associated with the early success of the relationship on both sides are no longer as active or able to contribute as they have in the past.

5.4. It is a key for the relationship to succeed that it must be supported by the local Hobart community. Like any of Hobart’s international relationships, if there is not strong local community support for the relationship, the Council must always reflect on the relevance of such relationships.

5.5. The meetings held during this visit indicate an understanding from both Hobart and Yaizu that the relationship does need to progress and to some extent be reset for the future.

5.6. One example of this is a Japanese business man that the delegation met during the visit that owns farming property in Tasmania and is growing buckwheat for export to Singapore and Japan. Some of this buckwheat is processed at the restored Callington Mill at Oatlands and sold locally.

5.7. Historically the relationship was founded on Tuna fishing and the visiting fleet of boats to Hobart. During discussions with Yaizu on this visit, while Tuna fishing and tuna products remain an important industry to Yaizu, it is evident that the return of the fleet to Hobart for resupply is very unlikely due to a number of economic and political reasons.

5.8. Accordingly the relationship needs to be reset and look forward to areas such as education, agriculture including, buckwheat, beef and wine as well as aquaculture and salmon.

5.9. The city should use its leverage as a sister city with Yaizu to promote these commercial opportunities with Japanese business. As with the Chinese relationships, a partnership with the Department of State Growth is considered important.

5.10. Culturally the relationship with Yaizu should look to focus on student exchange and visits such as the Yurikamome Choir.

5.11. Over the past 29 years of the relationship many hundreds of Yaizu students have visited Hobart and vice versa, with a number of student teachers from UTAS having lived and taught in Yaizu.

5.12. Since the delegation returned from Yaizu, the Mayor of Yaizu has indicated an intention to lead a Yaizu delegation to Hobart mid to late next year. It is likely that the delegation will include the Yurikamome Children’s Choir. Should this be the case officers will investigate the potential for the Choir to perform as part of Festival of Voices.

5.13. It is also understood that the Mayor wishes to follow up in the economic talks held as part of the recent visit.

6. Strategic Planning and Policy Considerations

6.1. Goal 1 of the 2015-2025 Strategic Plan, Economic Development, Vibrancy and Culture, states at Objective 1.2.4 Support the Council’s existing sister city relationships with Yaizu, L’Aquila and Xi’an and respond to new opportunities.

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The cost of $66,060, attributed to date, for the delegation was met by the Sister City Visits budget within the Economic Development function and is itemised below:

7.1.1.1. $45,078 Airfares

7.1.1.2. $15,940 Accommodation, including meals

7.1.1.3. $5,201 Travel including taxi, train, data, travel allowance and insurance

7.1.1.4. $1,500 Interpreting

7.2. Impact on Future Years’ Financial Result

7.2.1. Nil

7.3. Asset Related Implications

7.3.1. Nil

8. Legal, Risk and Legislative Considerations

8.1. None arise from this report.

9. Environmental Considerations

9.1. None arise from this report.

10. Social and Customer Considerations

10.1. As noted elsewhere in this report there is an active local Yaizu sister city committee.

11. Marketing and Media

11.1. The subject of Council travel overseas receives quite mixed reactions within the media and community.

11.2. While it is not considered necessary to undertake any specific media in relation to this report of the visit, it is always important that the Council openly discusses such visits and seeks to engage the community.

12. Community and Stakeholder Engagement

12.1. The relationship has been supported since 2001 with a local Yaizu sister city committee. This group is critical in ensuring the relevance of the relationship to the wider community.

12.2. The group assisted in planning the itinerary for both Yaizu’s visit to Hobart in February this year as well as Hobart’s recent visit to Yaizu.

12.3. The participation of three community members in the delegation to Yaizu was a valuable addition to the visit. Each of the three brought different perspectives and interests to the delegation as is evidenced by their attached reports. Each of the community members developed new relationships in Yaizu, which again is important to the continued longevity of the relationship.

13. Delegation

13.1. The matter is one for 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.

Tim Short

Group Manager Executive & Economic Development

Date: 17 November 2017

File Reference: F17/109488; 16/198

Attachment a: Yaizu delegation Aug 2017 - Julie Marsaban Stirling ⇩

Attachment b: Yaizu delegation Aug 2017 - Faith McDougall ⇩

Attachment c: Yaizu delegation Aug 2017 - Rachel Stivicic ⇩

Item No. 6.2

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 39

23/11/2017

REPORT TITLE: Summary of September Visit to Xi'an

REPORT PROVIDED BY: Economic Development Project Officer

Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide a summary of a recent visit by Alderman Thomas and the Economic Development Project Officer to Hobart’s friendship city, Xi’an in China. The report is provided in two parts:

Part One

· Summary of the Euro Asia Economic Forum in Xi’an and other activities / observations that occurred during the visit.

Part Two

· Introduction of a potential City of Hobart project stemming from Alderman Thomas’ professional development visit to Xi’an.

1.2. The benefit of this report is that it demonstrates the value of this international visit to the City of Hobart and the community.

1.3. Should the Council support the project introduced in part two of this report, the project itself can be used as a means of evaluating the existing framework for measuring the value of Hobart’s international relationships (International Relations Action Plan).

1.4. An improved framework for guiding and measuring the value of Hobart’s international relationships will create greater outcomes for the community from expenditure associated with this activity.

2. Report Summary

2.1. Xi’an in China is a friendship city of Hobart, with the agreement signed in 2015.

2.2. Xi’an has a population of just under 9 million and is the ancient capital of China, with a history that extends back 3,000 years.

2.3. Alderman Thomas travelled to Xi’an primarily as an Aldermanic Professional Development activity, approved by the Council on July 3, 2017.

2.4. Alderman Thomas’ proposed project involves the consideration of the measurement of value of international relationships in qualitative and quantitative terms which is in line with Council’s resolution of 6 March 2017, inter alia:

That:

4. A report be provided regarding the development of guidelines for the City of Hobart to measure the qualitative and quantitative values of friendship and sister city relationships.

2.5. This report, as well as summarising the visit to Xi’an, is in response to the Council resolution above.

2.6. As a friendship city of Xi’an, the City of Hobart was invited to attend the Euro Asia Economic Forum. This economic forum has become a very significant platform to promote President Xi Jinping’s own ‘One Belt One Road’ economic initiative (OBOR), launched in 2013.

2.7. Given its significance, the General Manager took the decision to send the Economic Development Project Officer to this forum.

2.8. In order to create the most value for the city from the expenses related to travelling to China, other activities were organised during the time in Xi’an. This was a means of developing stronger relationships in Xi’an and discussing with government counterparts their desired outcomes from the friendship city relationship with Hobart.

2.9. The Euro Asia Economic Forum lasted for two days and attracted approximately 1,000 delegates, highlights were:

2.9.1. The Roundtable on Urban Cooperation in the Silk Road Economic Belt’ attended by a number of senior delegates from cities including Kansas City (USA), Kragujevac (Serbia), Pompeii (Italy), Umea (Sweden), Istanbul (Turkey), Kagawa-Ken (Japan) and San Jose (Uruguay). Presentations were given by each city, with Alderman Thomas sharing information on Hobart.

2.9.2. A substantial tourism seminar which was valuable to understand Xi’an as a tourist destination and also general trends in terms of outbound Chinese tourism.

2.10. Outside of the forum, meetings were held as a means of building relationships and outcomes. These were:

· Two visits to the Xi’an Foreign Language School.

· A meeting with Mr Shen Pengxiang and Mr Hou Xiaohong, Divisional Chief of the Sister City and People’s Foreign Friendship Association Division – Foreign Affairs and Overseas Chinese Affairs Office, Xi’an Municipality.

Meetings attended by Alderman Thomas are highlighted separately in attachment A.

2.11. Alderman Thomas’ visit to Xi’an was for the purpose of Aldermanic Professional Development. As outlined in the Council policy ‘Aldermanic Professional Development’ involves the undertaking of training and development activities which increase an Alderman’s capacity to perform their role as elected representatives of the community and to maintain and improve their skills and stay in touch with issues relevant to the Council. A full report from Alderman Thomas on his professional development project is Attachment A to this report.

2.12. The area of professional development for Alderman Thomas is around deepening the City’s understanding of how the value of formal sister / friendship city relationships are captured globally and applying this to the City’s current framework (International Relations Action Plan – IRAP). The IRAP is included as Attachment B.

2.13. Deepening this understanding would be achieved by reaching out to a number of cities, predominantly through networks such as the Council of Capital City Lord Mayors, Sister Cities Australia, Sister Cities New Zealand and Sister Cities International.

Through these networks, a survey would be sent to members which aims to capture, compare and share how they measure the value of their international relationships and how they plan their activities.

2.14. Sister Cities Australia (SSA) has already been contacted about this potential project as their AGM takes place on 8 December. A forum will also take place on the same day as the AGM and SSA has been appealing for panel members. This could be an opportune time for Alderman Thomas to attend the AGM and promote the project to SSA with the aim that they will agree to send the project survey out to their 60 members. Council support is sought for Alderman Thomas to attend this AGM and forum. SSA has confirmed that Alderman Thomas is welcome to attend.

2.15. Insights from this research can be fed into the annual review of the City of Hobart’s own IRAP which could result in recommended changes to this existing framework.

2.16. Learnings could also be shared with other cities to assist them in making informed decisions about their international relationships. This would also promote the City as a forward thinker in this space.

3. Recommendation

That:

1. Council notes the update on the recent visit to Xi’an.

2. Council considers endorsing the project proposed by Alderman Thomas to generate a robust framework measuring of the value of international relationships, derived from an extensive survey of international cities.

3. Council considers endorsing Alderman Thomas’ attendance of the Sister Cities Australia AGM and forum on 8 December 2017 to promote the project to the network.

4. Background

Hobart and Xi’an – Friendship Cities

4.1. Xi’an and Hobart have been friendship cities since 2015.

4.2. Referred to as the ‘natural history museum’ of China, Xi’an is steeped in cultural and historical sites, the most famous being the Terracotta Army. Xi’an as a city is said to have attracted 12.35 million visitors in 2016.

4.3. Xi’an has a population of just under 9 million and is the ancient Chinese capital with a history that goes back 3000 years.

4.4. Despite the population size, Xi’an demonstrates excellent infrastructure, with limited traffic, clean streets and well maintained assets such as parks and public buildings.

4.5. Xi’an was the start of the ancient Silk Road and has been named the start of President Xi Jinping’s new Silk Road (see below).

Part One

Summary of Euro Asia Economic Forum

4.6. The Euro Asia Economic Forum was established in 2005 and has been staged every two years since. This year, 1,000 people attended the forum from around the world, with the most senior attendee being by one of only four Vice Premiers of China.

4.7. President Xi, who was at the time Vice President, delivered a speech at the forum in 2009 which gives an indication of its status as an event.

4.8. This economic forum has become a very significant platform to promote President Xi’s own ‘One Belt One Road’ initiative (OBOR), launched in 2013.

4.8.1. OBOR is a ‘Chinese economic and strategic agenda by which the two ends of Eurasia, as well as Africa and Oceania are being more closely tied along two routes – one overland and one maritime.’ (Parliament of Australia).

4.8.2. Hobart has a very strong strategic position with respect to both the Silk Road Economic Belt and the 21^st Century Maritime Silk Road. This is because Hobart’s friendship city Xi’an is the start of the new Silk Road and also Fuzhou (Hobart’s other friendship city in China) is the start of the Maritime Silk Road.

4.8.3. Hobart was invited to attend the economic forum and a roundtable with cities along the Silk Road only because of its friendship with Xi’an.

4.8.4. Hobart was also invited to attend the launch of the ‘Belt and Road Media Union’ in July 2017 which is an initiative born from the ‘One Belt One Road’ initiative. 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.

Although the launch was not attended, the government of Xi’an has indicated that it would still be possible for Hobart to be involved.

4.8.5. For both of the silk roads to realise their potential, it is reported that an investment of at least $900 billion AUD would be required, of which China has pledged $100 billion. Combined, the plan will include more than 60 countries and 4.4 billion people and will be completed in a number of bilateral infrastructure projects such as the planned $5.2 billion railway linking Laos, Thailand, Malaysia and Singapore. (news.com)

4.8.6. Given the scale of this economic initiative, it could be that opportunities exist at a State Government level. State level opportunities could include potential consultancy and construction work for Tasmanian businesses in what appears to be a multi-billion dollar infrastructure project.

With this in mind, the Economic Development Unit intends to fully brief the Tasmanian Government on this initiative.

Summary of other relationship building activities and observations

Xi’an Foreign Language School

4.9. A request was made by the Hutchins School for assistance with developing a sister school relationship with a school in Hobart’s friendship city of Xi’an.

4.9.1. Enquiries were made between Hobart and Xi’an government officers with respect to a sister school for Hutchins.

4.9.2. The Xi’an Education Bureau was sent information about Hutchins and recommended that the Xi’an Foreign Language School (FLS) would be an appropriate sister school.

4.10. Two visits were paid to the FLS by the Economic Development Project Officer during her time in Xi’an. A tour of the school was given and a meeting was held with the following personnel:

· Mr Zhang Huaibin – Principal of Xi’an Foreign Language School

· Mr Wang Ying Vice Principal of Xi’an Foreign Language School

· Ms Yun Yafeng Director of International Cooperation and Exchange Programme Center of Xi’an Foreign Language School

· Ms Yin Hang – Clerk of International Cooperation and Exchange Programme Center of Xi’an Foreign Language School

4.11. Hutchins School prospectuses were given to the Xi’an Foreign Language School and information was shared about both schools.

4.12. The following observations were made during the visits:

· The FLS was situated in a largely residential area in the north of Xi’an and had significant outside space including playgrounds and an athletics track.

· There are just under 4,000 students aged 4-18, split between two campuses.

· The school is a public one (i.e. not fee paying).

· The focus is on language acquisition, classes for instance were often split in half for their language lessons and then re-formed for other subjects.

· FLS has 14 friendships in countries including Korea, Japan, Germany, UK, Canada and France, but none in Australia.

· Languages taught are: Korean, English, Italian, French, German, Spanish and Arabic.

· FLS are interested in forming a sister school relationship with Hutchins that could include curriculum co-design, summer camps and teacher exchanges.

4.13. Discussions were had also with St Michael’s Collegiate School about a potential relationship in Xi’an. It may be possible that Collegiate provide support to Hutchins school in hosting female students from Xi’an from time to time. Collegiate School however are focussed on long term overseas students who may attend for a number of years as a pupil, rather than short term student exchanges.

4.14. The Hutchins School and the Xi’an Foreign Language School are now in direct contact with a planned visit to Xi’an by Hutchins staff members in April 2018.

Meeting with the Foreign Affairs and Overseas Chinese Affairs Office, Xi’an Municipality

4.15. A brief introduction was made between the Economic Development Officer, City of Hobart and Mr Hou Xiaohong, Divisional Chief of the Sister City and People’s Foreign Friendship Association Division. The Hobart officer was also able to meet Mr Shen Pengxiang who is the government officer managing the friendship city relationship on a day to day basis.

There were a number of occasions where the two government officers from Hobart and Xi’an were able to talk about the relationship between the two cities so far and exchange ideas. Meeting face to face certainly strengthened this relationship and it is clear that the door is open for further discussion around the way in which the friendship moves forward.

Observations and Opportunities

4.16. Xi’an is the third most visited city in China after Beijing and Shanghai. It has a wealth of cultural attractions and a sophistication in presenting them. Opportunities may exist for a Xi’an - Hobart collaboration on a cultural project such as a travelling art exhibition. There could also be potential for Hobart to learn from the way in which Xi’an illuminates some of its most historical and thus breathtaking buildings.

4.17. Given Xi’an’s status as the start of the old and new Silk Road, it is not surprising that its public transport system is comprehensive and that congestion for a population of 9 million is low. The transport system ranges from an extensive underground system to a low cost high tech bike hire scheme. Perhaps information and lessons learned could be exchanged on this topic?

4.18. Dr Zhu Yuhua President of the China – Italy Association and representative of the City of Pompeii (a friendship city of Xi’an) suggested that Xi’an could sponsor a cultural and trade centre for its sister /friendship cities. This would provide an official space in Xi’an for these cities to represent themselves during trade enquiries, do business, give presentations about education opportunities and conduct other friendship city activities.

There were a number of cities present at the Roundtable on Urban Cooperation when this suggestion was made. It seemed there was enough interest to legitimise moving this discussion with Xi’an forward through Mr Shen Pengxiang and his director, which the Economic Development Unit will progress.

It could be that the Department of State Growth (DoSG) may be interested in leveraging opportunities from such an idea. The Economic Development Unit will take the opportunity to discuss this idea with DoSG as well as the significance of the ‘One Belt One Road’ initiative and Xi’an’s strategic position.

4.19. During the forum, statistics were provided on the growth of charter and direct air operations throughout Asia. With the introduction of direct air services between Melbourne and Xi’an three times a week and a new focus by Asian airlines to become international exporters as well as carriers, opportunities may exist for Hobart in this space.

Part Two

Alderman Thomas’ Professional Development Project

4.20. Alderman Thomas’ visit to Xi’an was approved by the Council on 3 July as a ‘Professional Development Activity’ (Attachment C is Alderman Thomas’ original project proposal).

4.20.1. Professional development as defined in City of Hobart policy ‘Aldermanic Development and Support’ involves the undertaking of training and development activities which increase an Alderman’s capacity to perform their role as elected representatives of the community, and to maintain and improve their skills and stay in touch with issues relevant to the Council. The full policy is Attachment D to this report.

4.20.2. Each Alderman is allocated up to $5,000 per year, with the maximum allocation over the four year term of an Alderman being $20,000.

4.21. Alderman Thomas’ professional development centres around a research project examining the way in which the value of international relationships are measured via a survey, with the aim being to develop a robust framework to inform decision making at the City of Hobart in this domain.

Given that a number of international cities would be in Xi’an attending the Euro Asia Forum, it was felt that this would be a good opportunity to test the validity of the project with other cities.

4.22. In line with the aforementioned Council decision of 6 March 2017, it is proposed that a project is developed that reaches out to a number of cities through varying networks with a survey of how they measure both the qualitative and quantitative value of their sister / friendship city relationships.

The networks identified are:

· CCCLM (Council of Capital City Lord Mayors) – 8 cities.

· Sister Cities Australia - approx. 60 member cities.

· Sister Cities New Zealand – approx. 50 member cities.

· Sister Cities International – approx. 495 US city members

4.23. Sister Cities Australia has been contacted already about this potential project because members are due to gather in Mildura on 8 December for their AGM and for the purposes of a discussion forum on international relationships. They have been reaching out to member cities inviting participation on the forum panel. Should the Council support this proposed project, permission is sought for Alderman Thomas to attend the meeting, be part of the panel and present information on the project with a view to securing support from Sister Cities Australia to send the survey out to all members.

4.24. Cities already expressing a desire to be involved in the project are:

· Xi’an, China

· Kragujevac, Serbia

· Pompeii, Italy

· Kansas City, USA

· Umea, Sweden

· Marseilles, (France)

4.25. The City of Hobart has a dialogue with Portland (Oregon) in the US, Cambridge in the UK and Freiberg (Germany) on a number of topics and it is thought likely that they would also participate.

4.26. The apparent need for a project of this nature is a response to the fact that limited public consideration of this topic is evident and nothing appears to have been done and published since 2009.

Also, instances of community questions relating to international travel and the flowing of benefits back to the City appear to be increasing, particularly through the local media.

4.27. The Council endorsed a comprehensive ‘International Relations Action Plan’ in May 2016 that guides and evaluates Hobart’s four formal relationships, this is reported against and reviewed annually.

4.28. It is thought that the proposed project would be an alternative way in which the annual review of the IRAP could be conducted.

5. Proposal and Implementation

5.1. Should the Council endorse this project, it is felt that on average approximately half a day per week officer time for the duration will be needed. It is anticipated that the project will conclude by May 2018 when the annual review of the International Relations Action Plan (IRAP) takes place.

5.2. Endorsement of the project would mean endorsement of the following draft project plan:

Date	Actions
4 December	Seek Council endorsement
8 December	Attend Sister Cities Australia AGM and promote project
All December	Develop survey with possible input from creators of earlier surveys
All December	Promote project through networks including Sister Cities International and Sister Cities New Zealand
January 2018	Send out questionnaire
February	Receive returned questionnaires
March	Analyse results and draw conclusions
April	Consider project findings against existing IRAP
May	Take report to Economic Development and Communications Committee and Council with suggested amendments to IRAP.

5.3. Should the Council endorse the project, permission is also sought for Alderman Thomas to attend the Sister Cities Australia AGM to present further information and secure support.

6. Strategic Planning and Policy Considerations

6.1. Continued efforts to drive outcomes from the relationship with Xi’an is in line with the following aspects of the City of Hobart Capital City Strategic Plan:

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.

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

6.2. An annual review of the existing framework to structure and measure the value of international relationships is in line with the following aspects of the City of Hobart Capital City Strategic Plan:

1.2.3 Develop a policy position on international relations

5.1.4 Measure performance and outcomes of Council activities

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. The proposed project is potentially resource heavy as it is based on survey research. The delivery of this project would either require additional resource or for the Economic Development Unit to suspend some of their current activities.

7.2. Impact on Future Years’ Financial Result

7.2.1. None

7.3. Asset Related Implications

7.3.1. None

8. Legal, Risk and Legislative Considerations

8.1. The proposed project is an examination of the ways in which value is measured in formal international relationships. Although the relationships are formal, agreements of this nature are not legally binding and such do not expose the City of Hobart to risk of this nature.

9. Environmental Considerations

9.1. International travel has an environmental impact. To minimise this impact and maximise the value created for the City from this travel, it is paramount that the International Relations Action Plan is well considered and that activities engaged upon during travel are in line with the plan.

10. Social and Customer Considerations

10.1. International travel for a number of reasons including the development or maintenance of formal friendships such as sister cities can be widely criticised. This is largely because costs associated with these visits are immediate and easy to identify, whereas benefits can be less explicit and reaped further into the future.

10.2. It is important therefore that if the City of Hobart believe their international relationships to be of value culturally and economically, that they respond to criticism.

11. Marketing and Media

11.1. During a recent visit to Yaizu as part of 40^th anniversary celebrations, a community member commented that everyone in Yaizu knew about Hobart but the same was not true in Hobart.

11.2. Both of the academic articles cited by Alderman Thomas in his project proposal (attachment A) discuss the importance of promotion of international relationships to the community. The following quote from Brian Cross’ article relates to promotion but also the relationship in general:

“Sister City activities need to be kept in the context of a council’s extensive portfolio of activities and responsibilities, but if they are worth engaging in, they are worth engaging in properly.”

11.3. Should the proposed project be endorsed by the Council and should outcomes stem from projects between Xi’an and Hobart and Hobart’s three other international relationships, it is important that these outcomes are shared with the community.

This will assist in demonstrating the value of the relationships but will also enable the innovative community of Hobart to make their own suggestions of how the relationship can thrive and develop.

12. Delegation

12.1. This matter is one for the Council.

Lucy Knott

Economic Development Project Officer

Tim Short

Group Manager Executive & Economic Development

Date: 17 November 2017

File Reference: F17/142960

Attachment a: Alderman Thomas Professional Development Report and Project ⇩

Attachment b: International Relations Action Plan ⇩

Attachment c: Alderman Thomas Professional Development Proposal ⇩

Attachment d: Aldermanic Development and Support Policy ⇩

Item No. 6.3

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 97

23/11/2017

REPORT TITLE: Timor-Leste Relationship Update

REPORT PROVIDED BY: Economic Development Project Officer

Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide an update on the potential development of a relationship between the City of Hobart and a town in Timor-Leste, namely Balibó.

1.2. The community benefit associated with the development of a relationship with a town in Timor-Leste would be one of knowledge sharing, with the Hobart community sharing their operational and professional experience with Timorese counterparts in a project based context.

The Hobart community would also stand to benefit from lessons learned from the Timorese people about their own methods and expertise and how they could be used here in Hobart.

2. Report Summary

2.1. The City of Hobart on 7 August 2017 resolved:

That:

1. The City of Hobart investigate opportunities to sign a non-binding MOU or similar agreement during the visit of the Ambassador for Timor-Leste for Australia, Mr Abel Guterres, on 29 September 2017, and the Council investigate an appropriate relationship of mutual value, including pursuing next steps in a friendship city type relationship.

2. Council continue discussions with Ambassador Guterres, the Australia Timor-Leste Friendship Network, and potentially a counterpart in Balibó in relation to the waste management and recycling project.

3. Depending on the outcomes of the conversations, the City of Hobart determine an appropriate time to send a delegation of a small number of Aldermen and appropriate staff nominated by the General Manager to develop understanding of the scope of the project and of Balibó more generally.

4. A report is brought back to Council in due course providing particulars of the potential visit to Balibó.

2.2. This report provides an update in respect to the above resolution.

2.3. The meeting and reception held to welcome the Ambassador for Timor-Leste for Australia, Mr Abel Guterres on 29 September 2017 was a productive one although it was deemed inappropriate to sign an MOU at that stage.

At this meeting, the Ambassador echoed his earlier correspondence with the City (Attachment A to this report) that advocated for a relationship with the town of Balibó and the collaboration on a waste and recycling project. It was noted that waste was a particular issue for Timor-Leste as a whole and expertise from Hobart would be welcomed.

The Ambassador also advised the Council of a visit to Hobart by the Director General for Local Government in Timor-Leste in November.

2.4. The Director General would be a significant senior government officer with whom to discuss the concept of a joint project with Balibó and it is felt that this would be a significant way in which the project could be advanced within the government in Timor-Leste.

2.5. The Council has since been advised that the visit from the Director General has been postponed until the first week in February 2018.

2.6. It was also during this meeting on 29 September that Honorary Consul to the Democratic Republic of Timor- Leste in Tasmania, Dr Nitin Verma, invited the City of Hobart to accompany him on his annual visit to Timor-Leste at the end of January 2018. This invitation was supported by Ambassador Guterres.

2.7. Dr Verma is the founder of the East Timor Eye Program which has been ‘restoring eye sight and improving eye health in Timor-Leste since 2000.’

As well as the Honorary Consul to the Democratic Republic of Timor- Leste in Tasmania, Dr Verma is an Honorary Timorese Citizen. This makes him a very appropriate person for representatives of the City of Hobart to visit Timor-Leste with for the first time.

2.8. The Council made the decision to explore a relationship with Timor- Leste in December 2016. Since this time, much desk research has been conducted and meetings have been held with Ambassador Guterres and the Timor-Leste Friendship Network.

2.9. It is felt that in order to progress the project further, a visit to Timor-Leste, specifically Balibó would be the most effective next step as matters have progressed as far as possible via local meetings and desk based research. The visit would be for the purposes of fact finding and relationship building with a number of contacts provided by the Timor-Leste Friendship Network. It is unlikely that any formal agreement would be signed at this stage.

3. Recommendation

That:

1. The Council support a small delegation of Aldermen and officers to visit Timor-Leste, and specifically Balibó, to investigate the potential of a relationship and a collaborative waste and recycling project.

2. This small delegation will visit Timor-Leste with Dr Nitin Verma, Honorary Consul to the Democratic Republic of Timor Leste in Tasmania at the end of January 2018.

3. The General Manager is authorised to select appropriate officers to accompany the delegation.

4. The costs associated with this visit to be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

4. Background

4.1. The City of Hobart on December 5, 2016 resolved:

“That Council officers further investigate a community development based relationship with Timor-Leste and a further report be sought outlining the steps to progress such a relationship.”

4.2. Since December 2016, the following actions have taken place to enact the above Council resolution:

· December 2016 – Ambassador of Timor-Leste for Australia (his Excellency Mr Abel Guterres) was contacted in writing in relation to the possibility of establishing a relationship with a city in Timor-Leste and Hobart (Attachment B).

· June 2017 – Representatives of the Timor-Leste Friendship Network met with Council officers to introduce the concept a waste and recycling collaborative project with the town of Balibó.

· July 2017– A response was received from Mr Guterres recommending that the City consider a relationship with the town of Balibó (Attachment A).

· July 2017 – A report was taken to Council proposing that investigations were made into the development of a relationship with the town of Balibó and a possible collaboration over a waste and recycling project. In August Council resolved to support this.

· August 2017 – Officers met with Representatives of the Timor-Leste Friendship Network to discuss how to advance a relationship with Balibó and a collaborative project.

· September 2017 – The City of Hobart received Ambassador for Timor-Leste for Australia, Mr Abel Guterres and discussed the Balibó relationship and project. Mr Guterres suggested that it would be useful to discuss this with Director General for Local Government in Timor Leste in November during his visit. Council officers have since been advised that the Director General has postponed his visit until February 2018.

4.3. It is felt that the next step in advancing this project would be to accept Dr Verma’s invitation to accompany him to Timor-Leste in January 2018 when he conducts clinics as part of the East Timor Eye Program, a program he established in 2000.

4.3.1. Between 2000 and 2013 the East Timor Eye Program assisted more than 48,000 Timorese patients, performed 6,800 surgical procedures and dispensed over 35,000 pairs of spectacles.

4.3.2. For this work, Dr Verma has been awarded the Order of Australia, the Order of Timor-Leste and Honorary Timorese Citizenship. He is also the Honorary Consul to the Democratic Republic of Timor- Leste in Tasmania.

4.4. During the visit to Timor-Leste, it would be constructive for the advancement of the project to meet with the following people (as recommended by Ambassador Guterres and the Timor-Leste Friendship Network):

· Director General for Local Government in Timor Leste.

· Ms. Terry Bracks, Executive Officer of the Balibó House Trust.

· Mr Marino Fernandes who is a local contact working for the Balibó House Trust in the Balibó Dental Clinic who can offer interpretation assistance and also has a number of local contacts.

Balibó

4.5. Balibó is a district of 15,922 people situated 10 kilometres from the Indonesian border.

4.6. Balibó is a site of special sentiment to Australia as it was the location at which five Australian journalists (known as the Balibó five) were killed by Indonesian forces in 1975 during an incursion by Indonesia into what was then Portuguese Timor.

4.7. It has been estimated that around 70 per cent of the town was destroyed during the violence that preceded the vote on East Timorese independence.

4.8. In 2003, the government of Victoria purchased the house where the five journalists had stayed as it had fallen into disrepair. It was made into a crèche, library and vocational training centre.

4.9. The Australia Timor-Leste Friendship Network website details registered friendship groups throughout Australia and Timor-Leste. Approximately 37 Australian cities in ACT, NSW, NT, and Vic have established relationships, mainly at the local government level. The City of Hobart would be the first council in Tasmania to establish such a relationship.

4.10. Compared to other cities in Timor-Leste, such as the capital city of Dili, Balibó does not appear to have established sister or friendship city relationships with any Australian cities, presenting a unique opportunity for the City of Hobart.

Timor-Leste Waste Management and Recycling Project

4.11. Following a recent familiarisation tour by a number of volunteers from Tasmania, the issue of waste management and recycling has been identified as an important initiative that is integral to living standards in the town and will also support local tourism and health initiatives.

4.12. Lack of water and sanitation infrastructure has strong impacts on local waste streams, with plastic bottles and PET containers in particularly large volumes. Bottled water is a popular choice of drinking water due to sanitation concerns.

4.13. Other waste concerns in Timor-Leste include: lack of centrally-run waste management systems in rural areas, rubbish being disposed of in surrounding natural environments and waterways, burning of plastic waste, and increases in waste to do with increasing consumerism (especially of plastic and packaged goods). Formal recycling is uncommon in rural areas, although upcycling is more so (e.g. making sandals from used car tyres).

4.14. The concept of waste management is poorly understood outside major urban centres, and there is a lack of training and awareness-raising on the topic. The issue is having increasing public health implications.

4.15. It has been proposed that a demonstration waste management recycling project be established to serve the town’s population but also with the potential of expending to the adjacent Maliana District (population 1.2M).

City of Hobart Waste Strategy

4.16. The City of Hobart’s Waste Management Strategy 2015-2030 has set a target date of 2030 for zero waste to landfill. McRobies Gully is set to cease operation at that point. The strategy aims to use cooperation, collaboration, advocacy, education, and the delivery of recycling services and waste reduction programs in order to achieve its goals.

4.17. Waste education is a primary feature of the strategy, including raising awareness about the range of recyclable materials. Kerbside recycling ‘performs a vital waste reduction outcome’.

4.18. Over the past eight years to 2015, general waste to the City of Hobart landfill has halved.

4.19. Education and engagement are one of eight focus areas in the strategy. Two important components are securing funding to implement education programs and ensuring regional consistencies. The important role of community groups and projects is noted. Lessons from this area could potentially transfer to the Timor-Leste context and vice versa.

4.20. Litter and illegal dumping is another focus area where there could be transferable lessons between Hobart and Balibó. The strategy notes there is limited measurement and data and that a baseline needs to be established in order to understand the prevalence, make-up, and resource implications of littering and illegal dumping.

5. Proposal and Implementation

5.1. To advance this project, it is proposed that the opportunity be taken to send a small delegation to Timor-Leste at the end of January 2018 with Dr Nitin Verma.

5.2. During this visit, it is proposed that meetings are held with the following people (subject to availability) in order to advance a relationship with Balibó and the potential of a collaborative waste and recycling project:

· Director General for Local Government in Timor Leste.

· Ms. Terry Bracks, Executive Officer of the Balibó House Trust.

· Mr Marino Fernandes who is a local contact working for the Balibó House Trust in the Balibó Dental Clinic who can offer interpretation assistance and also has a number of local contacts.

6. Strategic Planning and Policy Considerations

6.1. Joint working on the waste management and recycling project has the potential to align with a range of strategic objectives: mutual learning to do with waste management and recycling, international relationships and networking, promotion of environmental sustainability objectives, leadership, and community engagement (both in Hobart and Balibó).

6.2. Hobart 2025: A strategic framework

6.2.1. Future Direction 2.3.2: Manage waste minimisation strategies and effective disposal of residual solid waste through working with other councils, governments, private sector and local communities.

6.2.2. Future Direction 3.2.1: Develop and promote networks and effective partnerships to achieve regional, city and community goals.

6.2.3. Future Direction 4.2.1: Develop and promote principles and projects to ensure sustainable, energy efficient, and quality development.

6.3. Capital City Strategic Plan 2015-2025

6.3.1. Strategic Objective 1.2: Strong national and international relationships.

6.3.2. Strategic Objective 3.2: Strong environmental stewardship.

6.3.3. Strategic Objective 3.4: Demonstrate leadership in environmental performance with the efficient use of natural resources.

6.3.4. Strategic Objective 3.5: Minimise and manage the city’s waste.

6.3.5. Strategic Objective 4.1: Community connectedness and participation realises the cultural and social potential of the community.

6.3.6. Strategic Objective 5.5: Capital City leadership is provided.

6.4. Waste Management Strategy 2015-2030

6.4.1. Action Area 3: Education and engagement

6.4.2. Action Area 5: Litter and illegal dumping

6.4.3. Action Area 8: Innovation and programs

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. A desk-top search for flights to Dili from Hobart from January 23 to 27 found return economy flights to be $1500 and return business flights $3500.

7.1.2. The recommended hotel is currently $163 per night which would be$489 AUD for three nights.

7.1.3. The costs associated with this delegation would be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

7.2. Impact on Future Years’ Financial Result

7.2.1. Should a relationship be established with Balibó, future travel may be required. This would be incorporated into future budgetary planning.

7.3. Asset Related Implications

7.3.1. None

8. Legal, Risk and Legislative Considerations

8.1. No legal or legislative considerations arise from this report.

8.2. The project has the potential to mitigate risk to do with waste management and recycling systems:

8.2.1. Sharing lessons to do with littering and waste management and recycling behaviours could provide insights into as-yet-untested methods in the City of Hobart context, especially to do with upcycling and resource use.

8.3. Risk to do with project efficacy will be mitigated by the City of Hobart delegation determining whether it is likely to effective and beneficial through their initial visit to Balibó.

9. Environmental Considerations

9.1. The potential project is inherently one of positive environmental impacts.

9.1.1. The successful project could yield mutual learning and waste management and reduction and potentially lead to a continued relationship on that basis.

9.2. Carbon emissions from air travel could be mitigated to a degree through carbon offset.

10. Social and Customer Considerations

10.1. The project involves some social and customer considerations.

10.1.1. There have been a number of significant milestones and events to do with international relationships in recent months which have required travel ultimately funded by the community.

10.1.2. If the project is pursued, it would be important that its value is clearly articulated in terms of how Hobart communities will benefit.

11. Marketing and Media

11.1. There are significant marketing and media opportunities to do with this project, should it be deemed to be desirable to participate in it.

11.1.1. Waste management and recycling are major elements of environmental sustainability, and City of Hobart is already seen as a leader in that space.

11.1.2. Investigating ways of sharing that knowledge and expertise is a demonstration of Capital City leadership on the international stage.

11.1.3. Experiences could be publicised through City of Hobart social media and other channels.

12. Community and Stakeholder Engagement

12.1. There are opportunities for community members to be engaged in the project.

12.1.1. Timor-Leste, and Balibó, in particular, is a place of historical importance for Australian communities.

12.1.2. The Australia Timor-Leste Friendship Network (Tasmania Group – Hobart Committee) is involved in the project and is composed of Tasmanian community members with an interest in or connection to the region.

12.1.3. Cultural or other lessons could be shared with Hobart communities.

13. Delegation

13.1. This matter is one for the Council.

Lucy Knott

Economic Development Project Officer

Tim Short

Group Manager Executive & Economic Development

Date: 17 November 2017

File Reference: F17/150193

Attachment a: Response from Ambassador Guterres to the City of Hobart ⇩

Attachment b: Letter to Ambassador Guterres - Development of a Relationship ⇩

Item No. 6.4

Agenda (Open Portion)

Economic Development & Communications Committee Meeting

Page 110

23/11/2017

REPORT TITLE: Draft Economic Development Strategy Progress Report

REPORT PROVIDED BY: Economic Development Project Officer

Group Manager Executive & Economic Development

1. Report Purpose and Community Benefit

1.1. The purpose of this report is to provide an update in regard to the current Draft Economic Development Strategy 2017-2021.

1.2. The benefit to the community of a Council endorsed Economic Development Strategy includes:

· Clarity around Council priorities in this subject area for the next four years, enabling clear and transparent decision making.

· A broader community understanding of what the City of Hobart facilitates to effect positive changes in the economy.

· Increased engagement of business within the City.

2. Report Summary

2.1. Council on 13 July 2015 resolved:

That the Council agree to a mid-term review of the current Economic Development Strategy, following the completion of a ‘gaps and opportunities’ report.

2.2. The activities of the Economic Development Unit are directed by the current Economic Development Strategy 2013-2018 (Attachment A).

2.3. The gaps and opportunities report (referred to above) was completed in March 2016 by AEC Group (a company specialising in evidence-based analysis).

This report, along with analysis conducted by the Economic Development Unit was used as the basis for the new Draft Economic Development Strategy 2017–2021 (Attachment B).

2.4. The Draft Economic Development Strategy 2017 - 2021 (to be referred to in the remainder of this report as the ‘Draft Strategy’) was presented to the Economic Development and Communications Committee on 30 March 2017.

2.5. The committee discussed the Draft Strategy in detail and a number of comments were noted (summarised later in this report).

2.6. Following the lengthy discussion, the Economic Development and Communications Committee (EDCC) requested:

That the item be deferred to a future Economic Development and Communications Committee meeting, so that an additional working document regarding Economic Development’s goals / opportunities and guiding principles can be prepared.

2.7. In the months following the committee decision, a number of significant events took place in the international relations portfolio that required the majority of the capacity of the unit. This has resulted in the delayed response to the resolution above until now.

2.8. Following the delivery of the international relations activities, a number of meetings were held with individual Aldermen from the committee to ensure that the ‘working document’ referred to in the committee resolution would deliver against EDCC’s suggestions.

2.9. From these meetings and committee discussion, the Economic Development Unit created a number of iterations of the requested ‘working document’, none of which were felt to be satisfactory to bring to EDCC and the Council.

2.10. The difficulty in the creation of a satisfactory document lies primarily in divergent views expressed by Aldermen in relation to the content and structure of the strategy.

2.11. It is suggested that in order to achieve a Council endorsed Economic Development Strategy, a consultant should be engaged to complete the following:

2.11.1. Appraise the current Draft Strategy and provide an evaluation of its effectiveness as a strategy to guide the City’s contribution to the economic wellbeing of the city. Effectiveness could be evaluated by considering the role of local government in economic development, the current economic and political climate (local / national / international), as well as the capacity of the current team (approx. 2 FTE).

2.11.2. The selected consultant would present findings to EDCC and lead discussions around necessary amendments to the current Draft Strategy.

2.11.3. Amendments would be made to structure and content and the final Economic Development Strategy would be presented to EDCC for Council endorsement.

3. Recommendation

That:

1. The Council authorise the General Manager to select a consultant to appraise the current Draft Economic Development Strategy at a cost of no more than $15,000 to be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

2. Findings to be brought back to the Economic Development and Communications Committee in early 2018 for discussion.

3. Final Economic Development Strategy 2018-2022 to be presented to Economic Development and Communications Committee in the first half of 2018.

4. Background

4.1. Given the pace of change in aspects of the Hobart economy since the endorsement of the current economic development strategy in 2013, elements of this strategy were becoming less relevant to the city.

4.2. An example of this is identifiable in language used in one of the five overarching aims (section 4.4 below) and this filters through the entire document. The first objective refers to a ‘local or regional economy’. Since the strategy was endorsed, it is clear that the focus of the City of Hobart and the Tasmanian Government has also extended internationally. Evidence of this are the two friendship city agreements that were signed with Chinese cities in 2015 and 2017.

4.3. In June 2015, therefore Council endorsed the commissioning of an economic ‘gaps and opportunities study’ as a means of evaluating the current economic development strategy.

The study was also to be used as valuable research to inform a new Economic Development Strategy.

4.4. The key themes of the existing 2013-2018 economic development strategy are:

· Understand the economic drivers for a local or regional economy

· Understand the weaknesses, vulnerabilities and opportunities within communities

· Seek to broaden the economic base and minimise impacts

· Establish strategic alliances and relationships with existing or potential businesses or markets both domestic and international

· Create networks within communities to build relevance, engagement and participation

4.5. The Gaps and Opportunities Study was completed in March 2016 by the AEC Group that specialises in evidence based analysis.

4.5.1. The study comprised an extensive gathering and analysis of data as well as consultation with a diverse range of stakeholders to identify economic gaps and opportunities across the city.

4.5.2. Four key themes emerged from the study, these were:

· Visitor attraction and support.

Opportunities identified included the development of enabling infrastructure such as visitor accommodation, a convention centre and appropriate development on kunanyi /Mount Wellington with the City’s role predominantly being advocacy and facilitation.

· Emerging Industries

Opportunities were identified in the sectors of health care and social assistance, Antarctic and Southern Ocean and international education.

· Strategic Partnerships

It was suggested that the City partner in a number of ways including A) a regional approach with other local councils to investment attraction B) working with all tiers of government to ensure the best outcomes from international relationships and C) closer working with city stakeholders to ensure inner city activation.

· Communication and Networking

Opportunities were identified for communicating more effectively with the broader business community as a means of generating entrepreneurial collaboration and to identify and share good news stories.

4.5.3. The Gaps and Opportunities study, as well the existing economic development strategy were used as the basis of developing a new Draft Strategy.

Additionally, a number of other economic development strategies from around Australia were examined in detail, including:

· Sydney

· Melbourne

· Perth

· Wellington (NZ)

· Fremantle

· Wollongong

· Townsville

· Port Macquarie

· Coffs Harbour

· Tamworth

4.6. From the above sources, the Draft Strategy was created which includes:

· Definition of economic development from a local government perspective.

· Setting out of aims of the City of Hobart in relation to the economic prosperity of the City.

· Description of how this strategy fits into the overarching strategy of the organisation.

· Description of the economy of Hobart.

· Consideration of opportunities and challenges.

· The four key themes that inform the work to be undertaken by the economic development unit (see 4.6.1)

· Year one delivery action plan.

· Performance measures.

· Discussion of how economic development is delivered also by other areas of the Council.

4.6.1. The four key themes of the Draft Strategy mentioned above are:

· Focus on partnership

· Increase our knowledge and capability

· Build on our strengths

· Enable our future

4.6.2. Members of EDCC discussed the Draft Strategy on March 30 2017 and the following observations were made in terms of content:

· Economic development should be considered in a sustainable sense i.e. economic development that is appropriate for Hobart and does not damage those things that the community values.

· The new strategy should consider more how we are insulating ourselves against external shocks.

· The new strategy should be accompanied by a resourcing plan to ensure that it is deliverable.

· Other measures of success of the strategy should be included in addition to gross domestic product. These could relate to how liveable the city is.

· Creative industries are a significant part of our economy and should receive more emphasis.

· The sharing and circular economies should be included.

· A greater consideration of demographics would be useful, these could capture trends such as who is moving out of the local government area to other areas in Tasmania.

· The current Draft Strategy is aspirational rather than deliverable. It must also reflect the position of the Council on other matters so it is achievable.

· Hobart is the economic engine of the state and the strategy should reflect and celebrate this.

· Many aspects discussed such as sustainability and liveability are covered in other Council strategies and should be separate from the Economic Development Strategy so as not to dilute it.

· Could the strategy include some actions around major event and major business attraction?

· We must be mindful of focusing on the local government area at the cost of other areas. Attracting a business from one government area in Tasmania may have significant negative impacts on another area.

4.7. It was also suggested that the structure of the strategy’s action plan should be split into ‘day to day’ activities and specific projects.

Suggested specific projects to be considered for inclusion in the strategy are:

· Attract key conferences and events.

· Attract key investors / employers.

· Facilitate ‘shop top living’.

Existing projects that are in the current Draft Strategy are:

· Secure a City Deal for Hobart.

· Drive discussions around ‘smart city solutions’ for making Hobart a more liveable place.

· Host international delegations.

· Develop a business engagement plan.

· Facilitate appropriate development proposals for Council owned assets.

· Refresh the investor prospectus for the City.

4.8. Following the EDCC discussion in March, a number of significant events took place in the international relations portfolio which have resulted in a delay in reporting back to EDCC until now. These activities included:

· May / June 2017 - Coordination of Aldermen and senior staff members for European study tour with the University of Tasmania. This also included a visit to Hobart’s sister city L’Aquila, Italy.

· July 2017 – Coordination of Yaizu student exchange. 13 students from Hobart’s sister city in Japan visited Hobart for 7 days. Activities delivered by the unit included airport welcome and drop off, day excursion to Bonorong Park and an afternoon reception hosted by the Deputy Lord Mayor.

· July 2017 – Arrangements for an Alderman and interpreter to travel to Xi’an, Hobart’s friendship city in China to attend the launch of a media project. The trip did not go ahead.

· August – Inaugural visit from 13 students from Hobart’s friendship city Fuzhou, China for 7 days. Activities delivered by the unit included afternoon reception hosted by the Deputy Lord Mayor and formal welcome dinner for senior delegation members and host schools.

· August – Coordination of 19 people comprising Aldermen, officers and staff members to travel to Yaizu to celebrate the 40^th anniversary of the Hobart – Yaizu sister city relationship.

· September – Arrangements necessary for an officer and Alderman to attend an economic forum in Xi’an, China.

· October – Coordination of all activities for a visit from a senior delegation from Fuzhou for three days.

· October – Arrangements for a reception for 100+ people to celebrate the 20^th anniversary of the Hobart – L’Aquila 20^th sister city relationship.

4.9. After the delivery of a number of international relations activities was completed, the unit was able to focus once more on the economic development strategy.

Informal meetings were held with a number of the Aldermen from the committee.

Feedback from these meetings was:

· The economic development strategy does not need to be more than a couple of pages in length.

· The document should have a long term view over 15-20 years with milestones spread over this period.

· The existing unit is not adequately resourced to deliver the Draft Strategy.

· The Draft Strategy is wordy and that it may be sensible to reduce this.

· The strategy should encourage appropriate economic growth, i.e. the growth that does not negatively impact our major selling points i.e. lifestyle.

· The strategy should include some environmental scanning i.e. consideration of what we might expect in the future and a plan for how the City would respond to this.

· The strategy should include consideration of how we as a Council improve our bottom line i.e. how we are using our assets to generate income.

· The strategy should have two types of activity, one being ‘business as usual’ and the other being working towards things we are seeking to develop.

· Hobart is at a point of transition now and ‘economic development’ as a concept is changing.

· The strategy must be mindful of the State Government’s population growth target and the impact this would have on the city in terms of increased residents and visitors to the city on a daily basis.

· Development in the city must not focus only on hotels. Commercial developments must be included in thinking also.

· The City needs to be agile as an organisation to be able to respond to good opportunities and the Economic Development Unit must have the resources to go out and attract opportunities.

· The strategy should reflect the importance of the airport to the City and the need for the city to work in closer partnership with them.

· The relationship with the State Government is crucial when it comes to the future of the city. The strategy should reflect on how to strengthen this relationship.

· The strategy should focus on where we want to be as a city, otherwise we will end up firefighting. Decisions should be made accordingly.

4.10. Aldermen have invested much time in considering the existing Draft Strategy and making suggestions about how this strategy might be a more effective document to guide the economic development activities of the Council.

Some Aldermanic views on this are disparate which is causing difficulty in making a broadly acceptable document.

4.11. In order to progress the new Economic Development Strategy, it is suggested that a consultant with experience in the field of economic development is engaged to conduct the following:

4.11.1. Appraisal of the current Draft Strategy and provision of an evaluation of its effectiveness as a strategy to guide the City’s contribution to the economic wellbeing of Hobart.

Effectiveness could be evaluated by considering the role of local government in economic development, the current climate (local / national / international), as well as the capacity of the current team (approx. 2 FTE).

4.11.2. Presentation of findings to EDCC in early 2018 and lead discussions around necessary amendments to the current Draft Strategy.

4.11.3. Make necessary amendments to the structure and content of the strategy and present the Final Economic Development Strategy to EDCC in the first half of 2018 for Council endorsement.

5. Proposal and Implementation

5.1. It is proposed that a consultant is engaged to evaluate the current Draft Strategy in order to help take this to the next level, i.e. an endorsed Economic Development Strategy for the period 2018 – 2022.

5.2. This would be at a cost of no more than $15,000.

5.3. Should the Council endorse this proposal, the opportunity will be circulated to a number of economic development consultancies and submissions invited.

5.4. It would be expected that the evaluation of the current Draft Strategy could be presented to EDCC in early 2018, with the revised strategy presented to EDCC in the first half of 2018.

6. Strategic Planning and Policy Considerations

6.1. The delivery of an Economic Development Strategy is in line with the following from the Capital City Strategic Plan 2015-2025.

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

7. Financial Implications

7.1. Funding Source and Impact on Current Year Operating Result

7.1.1. Funding for an evaluation of the current Draft Strategy up to $15,000 will be attributed to the Economic Development Function of the 2017/2018 Annual Plan.

7.2. Impact on Future Years’ Financial Result

7.2.1. This will depend on the nature of the final endorsed Economic Development Strategy.

7.2.2. The structure of the current Draft Strategy included annual action plans which assists in yearly annual budgeting.

7.3. Asset Related Implications

7.3.1. This will depend on the nature of the final endorsed Economic Development Strategy.

8. Legal, Risk and Legislative Considerations

8.1. This document is not legally binding.

9. Environmental Considerations

9.1. It is expected that the final economic development strategy would be structured in such a way that it could be sufficiently flexible to respond to challenges / opportunities that become prevalent. By their very nature, the impacts of climate change can be hard to predict and so the format of the final strategy would need to consider this.

10. Social and Customer Considerations

10.1. It would be expected that the final economic development strategy would include a consideration of how the community can participate economically in the society of Hobart. Business engagement should also be a topic to be considered.

11. Marketing and Media

11.1. The final Economic Development Strategy will be branded in line with the City of Hobart Brand Identity Style Guide.

12. Community and Stakeholder Engagement

12.1. Stakeholder engagement was conducted by the AEC Group in the formulation of the gaps and opportunities study that fed into the Draft Strategy. Key stakeholders that were consulted are:

· Hobart International Airport

· Macquarie Point Development Corporation

· Department of State Growth

· Destination Southern Tasmania

· The Property Council

· Hobart Chamber of Commerce

· Antarctic Tasmania

· Tasmanian Polar Network

· Sultan Holdings

· Raadas Property Pty. Ltd.

· Knight Frank

· The University of Tasmania

13. Delegation

13.1. This matter is one for the Council.

Lucy Knott

Economic Development Project Officer

Tim Short

Group Manager Executive & Economic Development

Date: 17 November 2017

File Reference: F17/147139

Attachment a: Economic Development Strategy 2013 - 2018 ⇩

Attachment b: Draft Economic Development Strategy 2017-21 ⇩

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