Challenges facing the City of Melbourne in the new millennium

Melbourne is one of the safest and most liveable cities in the world and this is perhaps its greatest asset. As half the world' population, and rising, now live in cities, we know how important it is to compete with the other great cities of the world.

In Melbourne we are creating a city where people will find employment and investment opportunities, cultural, artistic and sporting outlets, stimulating landscape, educational facilities, diverse housing and a lively street life.

The number of people setting up house in central Melbourne is growing at a rate of about 8 per cent a year - attracted by the new opportunities for an inner city lifestyle, our streetscapes and restaurants, our parks and access to transport. This demand is fuelling a significant boom in public infrastructure projects - many of which will transform our cultural life and skyline, and the business opportunities available in this part of the world.

For this reason, we are focusing on partnerships with the key decision-makers in our cities - the architects, planners, other levels of government, industry groups, and the growing number of residents - the people and structures which will be vital to the shape and detail of our future development.

One issue that is abundantly clear, and that underlies the directions laid down in our new City Plan, is that we must engage as part of the global economy. It is no longer true that it is countries that must compete for trade and business investment opportunities - cities and their regions are the real competitors.

Cities are the gateway to the state and regional economies, and the City of Melbourne is becoming a major gateway for those wanting to visit and do business with Australia. Its 24-hour airport and modern transport infrastructure arguably make Melbourne Australia's most efficient gateway.

My views on this issue have been brought into sharp focus by my travel and contacts in Asia, confirming the high level of interest in our region, providing we can find new ways to provide the goods and services the market will require in the next decade.

It is through partnerships that we have established a Capital City policy, a joint policy between the State Government and the City of Melbourne - the only one of its kind in Australia. This policy provides the framework for many of the infrastructure changes you may have observed taking place in the city as it becomes a focus for business, international trade, the arts, entertainment and sporting activities.

The Docklands redevelopment presents an unparalleled opportunity for this city to complement and strengthen its existing economy, and to create a truly twenty-first century urban environment.

Business Partner City network

Looking to the future we know that our links with Asia will be increasingly important. It is therefore timely that the City of Melbourne is about to join the Business Partner City (BPC) network, established in 1988 by the City of Osaka and Osaka Chamber of Commerce and Industry.

We believe the BPC, representing cities with a combined population of more than 70 million, provides one of the most significant opportunities for Melbourne to promote and build business links with Asia over the next decade. It contributes to the mutual economic development of each member city - in particular creating opportunities for small to medium sized enterprises - to establish links with their counterparts throughout the network. Current BPC membership takes in eleven cities including Osaka, Hong Kong, Singapore, Bangkok, Kuala Lumpur, Manila, Jakarta, Seoul, Shanghai, Ho Chi Minh City and Mumbai (Bombay).

Our membership of this network confirms Melbourne's status as Australia's gateway to Asia and raises the question of how we are going to capitalise and build on this hard-won opportunity.

To date we have made significant progress in globalising Melbourne and, in particular, establishing our presence in the Asian business community, largely through our sister city relationships as well as through strengthened diplomatic relationships and consistent support of international visits.

In Melbourne we have now set up the BPC Board to oversee our involvement in this network. We will be working to identify strategic priorities for the next five years and want to involve key organisations in the promotion of business and commerce between Melbourne and other BPC cities.

Youth revolution in Melbourne

Looking to the long term, it is vital that we encourage our young people to make the contacts and connections that will serve them all their lives, inexorably linking our cities, and building networks that we can only dream about today.

It comes as a surprise to many people to learn that Melbourne is in fact undergoing a youth revolution. The expansion of domestic and international intakes by our university sector is turning Melbourne into a campus city. This is a highly visible and invigorating transformation, which adds to our already complex cultural mix. Indeed, strengthening links with the countries of Asia has been a cornerstone of the city's strategy to secure Melbourne's combined growth and prosperity into the next century.

This policy not only recognises our close proximity to one of the world's most populous and fastest growing regions in the world - and the fact that Asia is already Victoria's largest trading partner. It is also important because of Melbourne's rich cultural diversity, our racial harmony and the city's large Asian community, which has grown substantially in the past two decades.

As neighbours we are well placed to work closely with the cities and countries in Asia. We already know that half Victoria's exports goes to Asian countries, the key recipients being Japan, Hong Kong, Korea and Singapore. And we import more than we export to Asia, to the value of about $10 billion a year.

Vigorous business environment

Melbourne is in the marketplace for new investment, for business and for the wealth and prosperity this brings in its wake. We are well aware that a vigorous local business environment is a precondition for international positioning.

Because we can see that more people want to live and work in the city we have taken a number of steps to facilitate this process. We have set up the Business Development Fund and earmarked grants for projects like our two business incubators, to encourage more commercial enterprise in the city.

Working with business organisations we have followed the example set by our landmark Postcode 3000 programme, with a Business 3000 scheme, to help match small firms with suitable, affordable accommodation options in the central city.

Our strong retail core is another major asset for Melbourne, which continues to gather strength. The city will continue to develop around this retail core, which will be fed by the growing number of residents, workers and visitors attracted into the city.

We now recognise that we live in a global village and we must compete with other cities for investment and business if we are going to secure our future and stimulate ongoing employment and prosperity. I believe we can be optimistic about our city of the future, as more people discover the secret to our success - the unique lifestyle Melbourne has to offer.