The smart state strategy
Since 1998 – the year we defined our ambitions for Queensland to be the Smart State – Queensland has enjoyed remarkable improvements in its economic prospects. Economic growth has averaged five per cent per year compared with the Australian average of 3.7 per cent. Labour productivity in Queensland has also grown faster, at 2.9 per cent, than the Australian average of 2.3 per cent. Exports of value-added goods and services continue to follow an upward trend and in 2003-2004 made up 37 per cent of Queensland’s exports of goods and services.
The bottom line for Queenslanders is that we currently have record low unemployment and strong growth in our incomes. However, we understand that there are some significant challenges for our people, resources and economy ahead:
- Our strong economy will be challenged: we have to sharpen our competitive edge against low labour cost countries like China, India and Indonesia. We are helping our established industries in agriculture, mining, tourism and manufacturing to develop cutting-edge technologies and processes. We are broadening our economic base, diversifying into the emerging industries of the future and expanding our export performance.
- The nature of competition is changing: many developed regions are increasingly competing on the basis of better, customised, value-added products and services. Competitive regions in the Asia-Pacific region, North America and Europe can quickly mobilise skilled people, resources and capabilities to turn new ideas into new businesses, processes and products. We will work collaboratively with business, industry and investors to increase our investment in skills and innovation to sharpen our competitive edge.
- We’ve got low rates of business investment in research and development: this is a national problem with Australia having a lower rate of business expenditure on research and development than most Organisation for Economic Co-operation and Development (OECD) countries. Queensland, with a lower rate than the Australian average, runs the risk of falling further behind. We are working with research institutions and industry to promote more private sector investment in research and development.
- We’ve got a skills shortage: evident across many sectors of our economy, this skills shortage is having an impact across Australia and several regions around the globe. We are acting now to get more people into skill shortage areas across many trades and more people into areas that will provide future growth, such as science, engineering and technology. We will work with the Queensland community to address the skill and training needs of our businesses across the State.
- We’ve got more people than ever coming to Queensland: to meet the extra needs arising from this population growth, we are planning now for a strong economy so that we can expand our infrastructure and services – in education, training systems, transport and social services – and grow more jobs. We are planning ahead for this growth and we are building an infrastructure base to support it.
- We need to safeguard our distinctive and extensive natural resources: some natural resources are renewable; some are finite. We are developing and adopting more efficient practices in our efforts to tackle our major challenges in water resources, waste streams and greenhouse gas emissions. We will continue to find new ways to use our natural resources efficiently and responsibly.
These challenges are also the source of opportunities. The Smart State Strategy will involve, educate and position the people of Queensland to grab these opportunities.
Last reviewed 19 January 2006