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B U S I N E S S A N D I N T E R N A T I O N A L R E L A T I O N S C O M M I T T E E R E P O R T

Agenda Item 5.3

14 August 2007

DELHI MELBOURNE STRATEGIC CITY ALLIANCE

Division Economic Development

Presenter Jane Sharwood, Acting Manager Business Development & Marketing

Purpose

1. To update Committee on the recent developments of the Delhi-Melbourne strategic city alliance;

2. seek Committee approval of:

2.1. Proposed strategic city alliance between Delhi and Melbourne;

2.2. Proposed 3 year indicative plan between Delhi and Melbourne; and

2.3. seek Committee approval to sponsor of travel costs of Mr D R Kaarthikeyan, Honorary City of Melbourne representative, to attend meetings and other networking activities in Melbourne 3 – 9 September 2007.

Recommendation from Management

3. That the Business and International Relations Committee:

3.1. note the recent development of the Delhi-Melbourne Strategic city alliance;

3.2. approve the proposed three year indicative plan between Delhi and Melbourne; and

3.3. approve sponsorship of travel by Mr Kaarthikeyan, honorary City of Melbourne representative in Delhi to Melbourne in September 2007, estimated total travel costs $7,720 (return business class airfare (Delhi to Melbourne) $7,000 and daily allowance for incidental expenses ($720)). Mr Kaarthikeyan’s accommodation expenses will be met by the Australia India Business Council (Victoria);

3.4. recommend that Council:

3.4.1. approve the proposed strategic city alliance between Delhi and Melbourne;

3.4.2. approve the Delhi Melbourne strategic alliance agreement; and

3.4.3. request the Lord Mayor sign the strategic city alliance on behalf of the Council.

Key Issues

4. India's emergence as a major economic player in the Asian region with a growth rate of over eight percent last year has boosted the bilateral trade relationship with Australia. This has led to strengthening cultural, trade and investment links between these two complimentary markets through Government, related bilateral chambers of commerce, trade and industry associations. Attachment 1 outlines the broader context of the Australia India relationship.

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5. The Melbourne Commonwealth Games 2006 and Delhi’s hosting of the 2010 Commonwealth Games was the catalyst in proposing the formation of an ongoing strategic city alliance (encompassing city to city, cultural, trade and economic links) between Delhi and Melbourne.

6. In March 2006, during the Australia India Business Exchange a Memorandum of Understanding (MoU) has been signed by the Lord Mayor on behalf of the City of Melbourne with the Confederation of Indian Industry to jointly promoting trade and businesses ties between Melbourne and Delhi.

7. It is now proposed the relationship be further developmed by a strategic city alliance between Delhi and Melbourne. Proposed wording of the Delhi Melbourne strategic city alliance agreement can be found as Attachment 2. The terms of the proposed agreement are consistent with the wording on the Melbourne Milan sister city agreement signed in March 2004. The National Capital Territory of Delhi has indicated their general agreement with terms of the proposed agreement.

8. The terms ‘strategic city alliance’ has been used in preference to the term ‘sister city agreement’, given its focus on a number of shared city priorities. The agreement does have the same intent as Melbourne’s existing sister city agreements leading to the formation of an ongoing relationship embracing a range of activities. Given the National Capital Territory of Delhi’s role as the host city for the 2010 Commonwealth Games, the alliance will initially focus on Commonwealth Game matters.

9. A three year indicative plan for the strategic city alliance has been prepared in consultation with the Lord Mayor Delhi Melbourne Reference Group, consultation with key business and community organisation and a range of companies with existing business activities in India. The indicative plan can be found as Attachment 3.

10. The first recommendation of the Lord Mayor Delhi Melbourne Reference Group was to appoint an honorary City of Melbourne representative in Delhi. It was emphasised the importance of this role, to facilitate ongoing contact with key Government officials, on behalf of the Council in the development of an ongoing relationship with Delhi.

11. Following a recommendation by Dr Janardha Rao, former honorary Consul General for India in Victoria, Mr D.R. Kaarthikeyan, (former Director, Central Bureau of Investigation, Director General, National Human Rights Commission) accepted the position as honorary representative on behalf of the City of Melbourne.

12. Mr Kaarthikeyan has made an invaluable contribution to supporting Melbourne’s quest to establish a strategic alliance with Delhi, through his high level contacts within both the NCT of Delhi Government and the Indian Government (particularly the Ministry of External Affairs). It has been through Mr Kaarthikeyan’s efforts, the proposal for a strategic city alliance has been so positively received by the National Capital Territory of Delhi Government.

13. In September 2007, Mr Kaarthikeyan has been invited to make a key notes speech at the Australia India Business Council – annual Australia India Address. Mr Kaarthikeyan’s proposed visit presents a significant opportunity to brief key city stakeholders on the opportunities arising from the Delhi-Melbourne strategic city alliance.

14. Given the support of both the Australia India Business Council and Mr Kaarthikeyan’s valuable personal contribution (as honorary representative of the City of Melbourne) to the formation of the Delhi Melbourne Strategic City Alliance, it is recommended Committee support the sponsorship of Mr Kaarthikeyan’s travel to Melbourne, at an estimated cost of $7,720 (business class airfare $7,000, daily allowance $720). These travel costs were included in the Melbourne International budget 2007/2008.

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Time Frame

15. The indicative plan for the Delhi Melbourne strategic alliance outlines the proposed program 2007 to 2010. The Chief Minister, National Capital Territory of Delhi has invited the Lord Mayor to travel to Delhi to participate in a formal signing ceremony at a mutually convenient date during September/October 2007.

16. It is proposed the honorary City of Melbourne representative in Delhi visit Melbourne in September 2007 to brief Council and key stakeholders on the opportunities arising from the strategic city alliance.

Consultation

17. Extensive consultation has occurred during the development of the Delhi Melbourne strategic city alliance. The Lord Mayor Delhi Melbourne Reference Group, established in May 2006 has provided high level advice and contact with key partners such as the Indian Consulate General Melbourne; Australia India Business Council (Victoria) and Federation of Indian Association Victoria.

18. The Lord Mayor Delhi Melbourne Reference Group endorsed the three year indicative program and the proposed strategic city alliance agreement at its meeting on 24 July 2007. Members of the reference group indicated the strategic city alliance would be welcomed by Melbourne’s vibrant and growing Indian community and create important opportunities for bi-lateral exchanges in a range of areas.

19. The Melbourne – Delhi Synergies Consultation Program, with a range of Melbourne businesses currently engaged in the Indian market, identified mutual areas and competitive which informed the strategic priority areas for the proposed alliance and three year indicative plan.

20. Following a resolution by Committee, a report was commissioned from Ratio Consultants (who previously undertook research on Melbourne’s three cultural precincts) to investigate the opportunity for the development of an Indian precinct with the Council boundaries.

21. The initial investigation has indicated that any attempt to facilitate a new Indian precinct within Council jurisdiction would require a long-term commitment from Council and the Indian business community. In addition, other cultural precincts within the City have evolved organically rather than as a result of structured planning.

Relation to Council Policy

22. The Council’s International Strategy (approved by Council 2005) indicated Council’s intention to explore opportunities to develop business, cultural and sporting ties with New Delhi. The Council’s Global Positioning Strategy has identified India as one of the priority countries for future exchanges.

23. This proposal is consistent with Strategic Direction 1.3 in City Plan 2010:

‘Build relationships at the local to international level that consolidate Melbourne’s capital city role and promote social equity, environmental quality and economic prosperity’.

24. Strategic Direction 2.1:

‘Grow Melbourne’s competencies as a globally-recognised, entrepreneurial and competitive knowledge city’.

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Government Relations

25. Regular consultation has occurred between Council, state and Commonwealth Governments, through agencies such as Austrade, Department of Foreign Affairs and Trade (particularly the Australian High Commission in Delhi), Invest Victoria, and the Department of Innovation, Industry and Regional Development has occurred during the development of the strategic city alliance proposal.

26. Council is in regular contact with the Indian High Commission in Canberra and the Indian Consulate in Melbourne. The Consul General is a member of the Delhi-Melbourne Lord Mayor’s Reference Group.

Finance

27. The Delhi program within Marketing & Business Development has a 2007-08 Budget of $32,000 (activity code 27268) which includes overseas travel expenditure.

28. In addition, there is a segment of the Marketing & Business Development 2007-08 Budget for international business projects and missions, which could provide additional funding for the Strategic City Alliance (activity code 44405).

Legal

29. The subject matter of the report is within the objectives, role and functions of Council.

Sustainability

30. The formation of the Delhi-Melbourne Strategic city alliance will provide Council and its partners with additional avenues to build business opportunities within the environmental sector, with key partners in Delhi.

31. Council has been the leading sponsor for the annual Cleantech Forum in Melbourne, for the last three years. Clean Technology AustralAsia, the organizers, identifies and packages "clean technology solutions" to environmental problems and projects for sustainable development in Australia and internationally. In August 2007, Clean Technology AustralAsia will be holding the first Cleantech Forum in Delhi, in partnership with Confederation of Indian Industry. Council was instrumental in facilitating this partnership between Clean Technology AustralAsia and the CII.

32. Major organizations in India such as Tata Energy Research Institute (TERI) and CII ITC Centre of Excellence for Sustainable Development, have visited Melbourne regularly to benchmark the processes and techniques in handling environmental concerns in India.

Background

Indian Community in Melbourne

33. The Indian community in Melbourne is becoming increasingly significant over the past few years. It mainly comprises of immigrants, people identifying with Indian ancestry and the surge of Indian students coming to study in Melbourne. A majority of this population reside within Metropolitan Melbourne.

34. At the 2001 Census, there were 30,716 India-born in Victoria. However, there were 42,590 persons identifying with Indian ancestry which can be attributed to the Australian born second generation or Fijians, Malaysian or other countries with a prominent Indian population. India is Australia’s second-largest source of skilled migration, accounting for 13 per cent of visas granted in 2004-2005.

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Attachments: 1. Draft Strategic City Alliance Agreement 2. Melbourne & Delhi: Working Together, 3 Year Indicative Program

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35. In 2006, there are approximately 36,000 Indian students in Australia, about half of whom are studying in Victoria. The Indian student population in Victoria has experienced dramatic growth, from 12,000 in 2005 to over 18,000 in 2006.

36. The Federation of Indian Associations in Victoria was formed in 1989 by a group of resident Indian migrants of long standing and repute that were keen to bring all the various regional, cultural and lingual Indian groups together under the one umbrella organisation. There are approximately 20 active Indian associations in Victoria, based on the regions that Indians have originated from.

City of Melbourne links with the Indian Community

37. The Central City Users Survey 2006 indicates that 20,000 people of Indian birth use the City on a weekday, with smaller number on weekends, ranging from international students and professional / office workers.

38. The City is being increasingly used for major cultural and community events such as Holi (Festival of Colour), Diwali (Festival of Lights), and the Independence Day function.

39. A notable event was in October 2006, when the Diwali festival was held at Federation Square that drew a crowd of 43,000 people from all over Metropolitan Melbourne. In addition, the Melbourne Town Hall was also lit up to celebrate the festival.

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Attachment 1 Agenda Item 5.3

Business and International Relations Committee 14 August 2007

1

Delhi Melbourne Strategic City Alliance Background paper – Melbourne/Delhi, Australia/ India connections Melbourne Commonwealth Games 2006 and Delhi Commonwealth Games 2010 – the catalyst to forming a link

1. During the Melbourne Commonwealth Games 2006, Lord Mayor John So presented a letter of intent to form a strategic alliance to the Chief Minister of the National Capital Territory (NCT) of Delhi. This was positively received. Subsequently, there have been further discussions between the Lord Mayor and the Chief Minister on the matter at the New York Climate Conference with indication of continuing interest commitment in a positive view.

2. During the Director Economic Development’s recent visit to Delhi (July 2007), it was confirmed that the legacy of the Commonwealth Games has been a key factor for the National Capital Territory (NCT) of Delhi to respond positively towards a strategic city alliance with Melbourne. Positive meetings were also held with Mayor of the Municipal Corporation of Delhi, the Union Home Secretary, Chairman of the Commonwealth Games Committee in Delhi, Australian High Commissioner to India, the Senior Trade Commissioner in Delhi and senior representatives of the Confederation of Indian Industry (CII) and the Indian Trade Promotion Organization (ITPO), who all responded favourably to the proposed alliance.

3. The Chief Minister of the NCT of Delhi invited the Lord Mayor to visit Delhi to formalise of the strategic city alliance between Melbourne and Delhi later this year.

4. The Delhi 2010 Commonwealth Games will be India’s largest sporting event since the 1982 Asian Games. India is seeking collaboration from countries with experience in hosting major games and events not only for Delhi 2010, but also with the intention of bidding for other major sporting events such as the 2016 Olympic Games.

5. A Memorandum of Understanding (MoU) has been signed by the City of Melbourne with the Confederation of Indian Industry to jointly promoting trade and businesses ties between Melbourne and Delhi. .

Australia-India Relationship

2 The proposed strategic city alliance agreement supports and reinforces the terms of the Cultural Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of India signed in October 1971.

3 Australia and India have some common history and culture as well as a similar political and legal system. In addition, English is the official language in India, making it relatively easier to doing business with India.

4 The Australian government established the Australia-India Council (AIC) in 1992 to broaden the relationship between the two countries by increasing levels of knowledge and understanding between their peoples.

5 In terms of economic cooperation, a major development was the signing of the Trade and Economic Framework Agreement (TEF) in March 2006 during Prime Minister, John Howard’s visit. The aim of the TEF is to provide a framework for the facilitation of future economic development and enhance economic dialogue in such areas as energy and mining, infrastructure development, information and communications technology, services, agriculture, inspection and quarantine, and biotechnology.

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6 The strengthening of the relationship between Melbourne and India has been facilitated by government initiatives, increasing economic, trade and investment ties and strong community links.

Government Initiatives

Australian presence in India

7 Australian Government (Federal, State and Local) recognises India as a lucrative and emerging market with many opportunities for Australian companies to pursue. As a result of this, there has been increased presence of Australian government offices in India.

8 The Australian High Commission is based in Delhi. In addition, there are also Australian Consulates in Mumbai and Chennai. Austrade also has a presence in all these offices.

Victorian Government Presence in India

9 The Victorian government signed a Memorandum of Understanding with the State of Karnataka, India. Further to this, they have set a Victorian Government Business Office (VGBO) in the city of Bangalore, focusing on trade and investment facilitation.

Indian Presence in Australia:

Indian Government’s initiative to increase presence due to the business and community links in Australia

10 The Indian High Commission in based in Canberra. In addition, there are two fully functional Indian Consulates in Melbourne and Sydney, and two Honorary Indian Consulates in Perth and Brisbane.

11 Until 2006, the Indian Consulate in Melbourne was also Honorary, however in recognition of increasing links between Melbourne and India (increasing Indian population; and trade and business links), the Indian government made the decision to have a full fledged Consulate in Melbourne.

Ministerial Visits:

12 Over the last couple of years, there have been many several top-level Ministerial visits to and from India.

13 Notable visits include the Australian Prime Minister Mr John Howard paid a State visit to India from March 2006 accompanied by a delegation of government officials and a high level business delegation; and the Indian Minister for Commerce Mr Kamal Nath participated in the Joint Ministerial Conference in May 2005.

14 An important Ministerial visit was from the Chief Minister from the National Capital Territory of Delhi – Mrs Sheila Dikshit during the Commonwealth Games in 2006. It was a milestone in cementing the relationship between Delhi and Melbourne.

Trade and Economic links

15 India is Australia’s sixth largest export market and 13th largest trading partner, with trade worth over $7.4 billion (mostly favourable for Australia). In addition, Indian businesses are increasingly making investments into the Infrastructure, IT and Commodities sector in Australia.

16 As India’s industry develops and the middle class grows, there is huge potential for Australia’s natural resources, commodities and consumer items. There is a trade surplus

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in favour of Australia, through materials such as coal and wool that India critically needs Australian commodities for its manufacturing and textile industries.

Focus Industry sectors

Sporting and Related Infrastructure

17 The Commonwealth Games 2010 in New Delhi also provides a significant opportunity for sporting business including infrastructure development, venue management etc.

Education

18 Australian education is regarded as world-class standard and economical, hence a popular destination for Indian students. After China, India has the largest number of students studying in Australia, out of which half are based in Victoria.

Infrastructure, Construction Management and Consulting Services

19 India is according the highest priority to bringing its transport infrastructure to a standard which will support the rapid growth of the Indian economy. Other areas of focus include roads, airports and air services. There are many renowned Australian companies who are working in collaboration with India to build up the infrastructure.

Tourism

20. Indian outbound tourism is expected to grow very strongly in the coming years and according to Tourism Australia’s projections, the Indian market is expected to reach 550,000 tourists by 2025, with a value of more US$ 2 billion. The rapid growth in the Indian outbound market has prompted Tourism Australia to open an office in India to take advantage of increasing tourism opportunities. On the other hand, Incredible India (Tourism arm for Indian Government) has a dedicated office in Sydney. Melbourne has been an increasingly popular destination for Indian tourists after popular Bollywood films such as Salaam Namaste and Chuk De were shot in Melbourne. Environment

21 India recognises the need to improve its environmental infrastructure in areas such as waste treatment and water purification. Major organizations in India such as Tata Energy Research Institute (TERI) and CII ITC Centre of Excellence for Sustainable Development are committed towards tackling the environmental concerns for India.

Business and Trade Ties between Melbourne and India

22 India’s rapidly increasing middle class of 300 million and growing consumer affluence is an attraction for foreign investors and exporters, and a likely source of future opportunities for service providers.

23 A notable opportunity has been for a Melbourne based company who are in the business of trading grains and pulses. Due to India’s increased demand in food commodities, exports to the market have almost doubled for the trading company.

24 Various market imperfections in India such as shortage of power, transport and environmental infrastructure, lack of experience in running major sporting events (upcoming Commonwealth Games in 2010) are opportunities for Australian companies to tap into.

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25 A notable success is Leighton’s (one of Asia’s leading contractors and project developers) involvement in a range of infrastructure projects in India ranging from oil and gas to transport, coal mining and industrial building projects.

26 Indian businesses recognize Melbourne as a safe, multicultural, economically stable city and a business hub, which is an entry to the “Western” world. As a result, Indian businesses ranging from SME’s to large organizations have invested or established a presence in Melbourne, which is generating employment, collaborative initiatives and export opportunities for Australian opportunities.

27 An example of this is Infosys entering the Australian market in 2004, by acquiring a Melbourne company called Expert Systems. Since then, they have provided services to major Australian companies such as Telstra and Qantas.

City of Melbourne links

28 Council works with a variety of bilateral chambers of commerce and various other trade related organizations to promote business development and exchanges with India. Some notable business exchanges included the Australia India Business Exchange, BPC Trade Mission to Delhi and Mumbai (which reported anticipated sales of AU $3 – $4 Million) and the India Trade Fair in Melbourne (which attracted over 5000 visitors and resulted in 7 agency agreements).

29 The Australia India Business Council (AIBC) promotes bilateral trade between Australia and India, and generally facilitates trade and contact between businesses locally and in India. A council officer has been appointed as an ex-officio member on the Victorian Chapter of the AIBC committee. Council works closely with the AIBC to deliver a range of programs to promote stronger bilateral connections between Melbourne and India. Some of these programs include the India Conference, the Australia India Address and Diwali Dinner.

30 Confederation of Indian Industry (CII) has a strong working relationship with Council, further to the formalization of alliance during the 2006 Commonwealth Games. CII hosted the City of Melbourne and its trade delegation during the BPC Trade mission to Delhi and Mumbai in September 2006; and Council looks forward to working with CII on their pending mission to Melbourne.

31 The Business Partner Cities (BPC) Network focuses on connecting small to medium sized enterprises of member cities. The BPC network connects 13 major global cities in the Asia Pacific region. Melbourne is the only Australian member of this network and an active participant in the annual BPC Roundtable and will be the hosting city in 2007. Through the BPC network, Council has an alliance with the Indian Merchants Chamber.

32 32. Council interacts closely with the Australian Trade Commission (Austrade) in Delhi on trade-related initiatives. Recently Austrade has launched a marketing and business development campaign focused on the relationship between India and Australia, known as Utsav Australia; which has been reflected in the three year indicative plan.

Indian ‘cultural precincts’ within metropolitan Melbourne

33 The increasing population of Indian community in Melbourne has been instrumental in the organic growth of Indian precincts formed within Metropolitan Melbourne. The most significant cluster of Indian businesses is on Foster Street, adjacent to Dandenong railway station. This includes fashion stores, restaurants, and takeaway, grocery, video and spice stores. This cluster has evolved organically over approximately the last decade, and coincides with the recent influx of migrants and students to the Dandenong area. Other notable Indian precincts are located Clayton and Footscray.

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Strategic City Alliance agreement

Between

The National Capital Territory of Delhi, India

And

The City of Melbourne, Australia

Dated

TBC

The National Capital Territory of Delhi, India and the City of Melbourne, Australia agree to the formation of a strategic city alliance, focusing initially on a “Commonwealth Games Host City partnership” to share experiences in the preparations for and management of multi disciplinary international sporting events like the 2010 Commonwealth Games. The strategic city alliance agreement will be based on the principles of mutual respect between the two cities to promote development of sports, exchange of sporting knowledge, business related to sports and tourism and cultural activities. Both cities are committed to building a long term, strategic city alliance that encompasses city

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management, business and economic exchanges, education, cultural exchanges and people to people activities. ARTICLE ONE : General Provisions Given the City of Melbourne’s experience as a host city for the Melbourne 2006 Commonwealth Games in March 2006, the exchange of information and expertise with the National Capital Territory of Delhi, host city for the 2010 Commonwealth Games, will be the focus of the first three years of the Delhi Melbourne strategic city alliance program. Both the parties will promote sports, economic activities, development of sports infrastructure, sports medicine, tourism and cultural activities so that respective capabilities can be developed to the mutual benefit of its people. Implementation of these activities will be in collaboration with relevant governmental and non-governmental partners. ARTICLE TWO- Delhi Melbourne Strategic City Alliance agreement – Joint Working Group The City of Delhi, India and the City of Melbourne, Australia will form a joint working group – with equal representation from each city to develop an action plan for promotion of sports, economic activities, development of sports infrastructure, sports medicine, tourism and cultural activities between the two parties.

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Each signatory will nominate a senior officer to act as a key contact person to further initiatives under the Delhi Melbourne Strategic City Alliance agreement. ARTICLE THREE – Cooperative Activities The following joint activities could be undertaken as components of a city alliance to enhance development and promote friendly relations in order to achieve mutual benefits:-

1. Commonwealth Games City Knowledge transfer – including information on municipal and city wide planning and operational aspects;

2. Developing opportunities for cooperation between City Government and relevant non-government organisations including but not limited to:

• sports education (including sports medicine),

• city amenity and city management exchange;

• exchange of business opportunities, related to sports and other relevant industries;

• exchange of cultural activities between key institutions and organisations;

• education; • young people; • civil society and community

organisations; and • people to people exchanges

3. Developing business and trade development opportunities, including business missions, support

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and promotion of major events and exhibitions in the respective strategic city, and other events associated with the Commonwealth Games Business Club; and

4. Mutual promotion of cities as tourist destination. ARTICLE FOUR – Implementation of Cooperative Activities Cooperative activities will commence when initiated by one party and when the requested party considers it possible and desirable to comply with this request. The specifics and any approved cooperative activity will be confirmed in writing between the parties or their agencies, prior to its commencement. The Delhi Melbourne Joint working group will endorse a mutually agreed three year plan which will be reviewed on an annual basis. It is anticipated the first three year plan will focus on projects supporting Delhi’s role as the host city for the 2010 Commonwealth Games. The parties will offer necessary assistance in respect of visiting mission, including but not limited to, supplying relevant information and facilitating the introduction of visiting missions to their counter parts.

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ARTICLE FIVE – Cost related to exchanges Visiting delegations will be responsible for their own travel and accommodations costs. John So Sheila Dikshit Lord Mayor Chief Minister City of Melbourne National Capital Territory of Delhi

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Melbourne Delhi: Working Together Page 1 3/08/2007

MELBOURNE & DELHI: Working Together 3 year indicative program

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TABLE OF CONTENTS

INTRODUCTION .............................................................................................3

Background ................................................................................................4

Related Australian Government Initiatives in India.................................5

INDICATIVE 3 YEAR PLAN............................................................................6

Recommended Strategic Roadmap ..........................................................6

Proposed Areas for Cooperation ..............................................................6

1. Commonwealth Games – Games City Knowledge Transfer...............7

2. Business & Trade Development............................................................8

3. Sport......................................................................................................10

4. Arts, Culture & Education....................................................................11

5. City Management and amenity............................................................13

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INTRODUCTION

In this era of globalisation, the City of Melbourne is committed to the continued

development of strong international partnerships to ensure the continued prosperity

of our city and to build on Melbourne’s reputation as a global sustainable city.

The City of Melbourne has formal connections with cities from around the world and

works in partnership with the Victorian Government, Australian Government and a

wide range of business, cultural, educational and community organisations to

harness opportunities to build mutual benefits from these relationships for Melbourne

and its partner cities. This model would be adopted for Melbourne’s relationship with

Delhi.

The City of Melbourne delivers a range of international programs, including business

development. Our objective is to facilitate international business opportunities,

provide access to new trading markets and to encourage inward investment into the

City of Melbourne.

India is an emerging super power with the world’s largest democracy, second largest

population and predicted to be the world’s third largest economy by 2020. The

economic liberalisation and rising incomes in India has also increased trade relations

with Australia, resulting with a rapid growth Australia’s foreign direct investment in

India. In June 2005, India was Australia’s sixth largest export market, and 13th

largest trading partner.

India and Australia share much in common. Both countries are members of the

Commonwealth, have similar institutions of parliamentary democracy, legal, financial

and government institutions, free and vibrant press, speak the same language and

are linked by the Indian Ocean. They are active members of the Indian Ocean Rim -

Association for Regional Cooperation, the ASEAN Regional Forum and Summit-level

dialogue partners of ASEAN.

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Australian Prime Minister Howard’s visit to India in March 2006 strengthened bi-

lateral relations through the signing of a Trade and Economic Framework and many

industry-specific MoUs.

With so much in common and the consecutive hosting of the Commonwealth Games,

the City of Melbourne seeks to leverage on current alliances with Delhi government,

trade and economic organisations to formalise a strategic sister city relationship.

Background

During the 2006 Melbourne Commonwealth Games, the Lord Mayor John So met

with the Honourable Chief Minister of the National Capital Territory of Delhi – Mrs

Sheila Dikshit and presented her a letter of intent for a Sister City Alliance with Delhi.

The City of Melbourne signed a Memorandum of Understanding (MoU) with the

Confederation of Indian Industry (CII) on 24 March 2006, with the intention of jointly

boosting economic development through respective networks. Since then, the City of

Melbourne and CII have maintained a strong working relationship through the

exchange of business missions.

The Mayor of Delhi, Mr Farhad Suri participated in the Mayors’ Asia Pacific

Environmental Summit in May 2006. During his five-day visit, Mayor Suri presented

on Delhi's current community and environmental initiatives and also discussed

greening the 2010 Commonwealth Games with City of Melbourne and the Melbourne

2006 Commonwealth Games Committee.

In May 2006, the City of Melbourne appointed Mr D.R. Kaarthikeyan as Honorary

Representative in Delhi to assist in formalising a relationship between the two cities.

The leading government agency – India Trade Promotion Organization (ITPO) held

the first India Fair in Melbourne in March 2007. The City of Melbourne supported

ITPO by holding a networking function for the delegates to meet local Melburnian

businesses.

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The City of Melbourne has an existing link with India through the Business Partner

Cities (BPC) Network and an alliance with the Indian Merchants Chamber in Mumbai.

The City of Melbourne joined BPC Network in 1999, which primarily is a network

aimed at expanding business links between the Asia's most dynamic and influential

business cities – Mumbai being one of them; The City of Melbourne in partnership

with the Australian Industry Group organised business missions to attend the annual

BPC Roundtable when it was hosted by Mumbai in 2001 and 2006.

The City of Melbourne has worked closely with Australia India Business Council

(AIBC):

AIBC supported the City of Melbourne Australia India Business Exchange;

City of Melbourne sponsored the India Conference in May 2006, and anticipates

to further support the upcoming India Conference in 2007;

The AIBC supported the City of Melbourne trade mission to Delhi and Mumbai in

September 2006; where an AIBC representative participated in the mission;

During the 2006 Diwali Festival, the City of Melbourne actively encouraged the

organisers to hold the festival at a central location (Federation Square) and

illuminated the Town Hall.

Related Australian Government Initiatives in India

The Australian High Commission is located in Delhi, which includes Austrade and

Australian Educational International;

Utsav (Celebrate) Australia is branding campaign created by Austrade, initiated

by Minister Warren Truss in March 2007. The objective of this project is to

highlight links between Australia and India through events, business and trade

missions, exhibitions and related marketing campaigns promoting the relationship

between Australia and India;

The Victorian State Government opened its first representative office in India in

October 2005, to focus on trade and investment. The office located in Bangalore

also has a program called “Access India” which allows Victorian businesses to

use office facilities free of charge for two weeks; The City of Melbourne has a

strong working relationship with all overseas Victorian Business Offices.

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INDICATIVE 3 YEAR PLAN

Recommended Strategic Roadmap

The City of Melbourne aims to highlight the Commonwealth Games

connection and proposed Host City Partnership Agreement between

Melbourne and Delhi to establish an ongoing relationship between the two

cities. The formalisation of a city to city alliance would strengthen government

links in both Melbourne and Delhi and the development of this relationship

would be used to seek mutual benefit for both cities in the areas listed below.

Both cities would also work to increase the knowledge and awareness of its

counterpart to realise economic opportunities and promote global goodwill.

Proposed Areas for Cooperation 1. Commonwealth Games – Games City Knowledge Transfer

2. Business and Trade development

3. Sport

4. Arts, culture & education

5. City management and amenity

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1. Commonwealth Games – Games City Knowledge Transfer Melbourne successfully hosted the 2006 Commonwealth Games ensuring the

event operated smoothly, and that long term benefits were maximised. The

City of Melbourne is happy to share its key findings and experiences with

Delhi through the 'Games City Knowledge Transfer' program to assist with the

development of city operational plans and legacy programs. Melbourne is still

reaping the rewards from the international exposure and civic pride that the

Games generated, and we look forward to working with Delhi on this mutual

experience for our cities.

The City of Melbourne has already provided key planning documents and key

staff contact details to the Delhi Games planning team. More detailed

workshops, planning support and guidance is available across a number of

key planning areas.

Proposed activities / exchanges

• Formalisation of Host City Partnership Agreement

• A high level workshop/s in Delhi broadly detailing the City of

Melbourne’s planning for the Commonwealth Games

Existing or planned activities / exchanges

• Provide a listing of key City of Melbourne staff contacts and a

commitment to respond to games related inquiries (on-going)

• Deliver comprehensive kit of Commonwealth Games planning

documents from a municipal government perspective

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2. Business & Trade Development Melbourne and Delhi have a vibrant economic relationship through

collaborative work in areas of construction, environment, infrastructure and

various services. In addition, the legacy of the Commonwealth Games has

further increased economic and business ties between the two cities.

The development of a strategic alliance provides opportunities to strengthen

mutually beneficial business and economic initiatives including; business and

trade missions, invitations to participate in major conferences, trade fairs and

exhibitions, as well as collaborative research projects.

The proposed alliance includes initiatives with trade development agencies

such as the Confederation of Indian Industry (CII), Indian Trade Promotion

Organization (ITPO), Australian Trade Commission (Austrade) and Australia

India Business Council (AIBC).


• Conduct a consultation program with allies and business community to

look at Melbourne’s capabilities and key opportunities in Delhi.

• Commission and conduct a research project in Delhi to look at

opportunities in Delhi that can be pursued by Melbourne businesses.

• Consider having a business development presence in Delhi, facilitating

trade and investment into the City of Melbourne, with other related

agencies.

• Offer the Melbourne International Business Centre (at VECCI) with 2

weeks of free office space and administrative support to Delhi

companies looking to establish presence in Melbourne.

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• Promotion of grants or incentives for Delhi based companies to assist

in setting up presence in Melbourne.

• Encourage study tours and technical visits focusing on some key

sectors including Melbourne’s world-class sporting facilities, hospitality

training, occupational health & safety and expertise in community

participation programs.


Civic engagement with major Indian clients of Melbourne based

businesses during major events such as the upcoming Boxing Day and

Australian Open.

Support and promote the first Cleantech Forum in India to be held in

Delhi in August a sponsored City of Melbourne event.

Sponsorship and support for local activities hosted by the AIBC, such

as the India Conference, Australia India Address and other business

related events etc.

CII - Australia India Business Exchange – Organizing an event as part

of business missions to each respective city.

Continuing partnerships and alliances with ITPO for trade facilitation

purposes.

Consider participating in the annual India International Trade Fair with

a business and trade delegation, considered as Asia’s leading

business event

Host half-day workshops focused on different aspects of doing

Business in India (legal, financial) in conjunction with organizations with

expert knowledge in that particular area.

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3. Sport The Commonwealth Games presents a framework for both cities to forge

closer links on the sporting field. Both cities are passionate players in the

international sporting community, in particular in cricket, hockey, golf and

football (soccer).


• Propose Melbourne-Delhi Mayors’ Cricket Cup during respective tours

to India and Australia – or junior cricket (Under 18s tournament)

• Develop exchange protocols in sports medicine and sports science

• Share knowledge in city management of hosting major sporting events

and associated civic activities (live sites, welcome receptions)

• Assist recruitment of coaches, administrators across a range of sports

• Provide opportunities to showcase indigenous sports such as

Australian Rules Football (AFL) and Kabaddi

• The Naz Foundation and IFNA (The International Netball Federation)

have initiated a multi-stakeholder women’s empowerment and

leadership programme in Delhi. The City of Melbourne will investigate

opportunities to supporting this program.


• Profile Delhi and the relationship at Federation Square when Australia

play India on at the Boxing Day Test (26 – 30 December 2007).

• Melbourne is hosting the 2008 Homeless World Cup in November. In

2007, the event will be hosted in Copenhagen, where India will be

debutant contestants in the tournament; opportunity to explore India’s

participation (through Delhi) in 2008 event.

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4. Arts, Culture & Education Food is central to both Melbourne and Delhi’s identity presenting many

opportunities to build links and highlight the diversity of our two cities. Existing

festivals and cultural events are ready to be explored in terms of opportunities

to increase profile of Delhi and India. The education sector has been

instrumental in increasing learning and understanding about each respective

city, mainly due to a dramatic increase of Indian students studying in

Melbourne.


• Invite key Delhi cultural performers to feature as part of festivals held in

Melbourne through the Indian Council for Cultural relations and other

related organisations.

• Consider collaborating on public art commissions representing the

Melbourne-Delhi strategic alliance

• Explore opportunities to feature program of Delhi and Melbourne art,

film, fashion, design and food and wine through existing international

festivals staged in the two cities

• Delhi regional cuisine and chefs to be highlighted during Melbourne

Food & Wine Festival

• Collaborate on a children’s art project – exchange and exhibition with

City of Melbourne’s Art Play facility

• Highlight and invite Melbourne artists and writers to participate in

existing Utsav events programs organised by Austrade

• Exchanges of students in respective cities under a “young leaders

program” and sister school activities. Existing or planned activities / exchanges

• The University of Melbourne is considering opening an Australia India

Research Centre.

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• City of Melbourne is sponsoring the Asia Education Foundation’s

Linking Latitudes India Conference to be held in Delhi from 30

September – 4 October 2007. 250 Australian educators will attend with

City of Melbourne’s Honorary Representative delivering a keynote

speech on Gandhi’s legacy.

• Continued support for the Asia Education Foundation’s annual Indian

teacher exchange program, where up to 40 Indian principals and senior

staff visit Melbourne on a short term professional development program.

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5. City Management and amenity The City of Melbourne continues to provide leadership at the national and

international level in a number of areas of city management. We are keen to

share our experience with Delhi and also learn from Delhi’s strengths and

unique circumstances.

Key issues of city environmental indicators such as water and waste water

management, housing, city lighting, waste management and recycling.


• Identify areas of shared interest for future city management

collaboration in environmental management, public art, parks and

gardens, tourism, city branding and marketing, customer services,

services contracting, and community care.

• Propose short term work placement program and two way skills

exchange

• Look for two-way professional development opportunities for staff

through Australian Federal Government’s Endeavour Executive

Program

• Develop people to people exchanges in community, school and

volunteer programs

• Offer internships with Delhi and Melbourne city councils for graduates

in a range of city management areas.

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Agenda Item 5.3 Business and International Relations Committee

14 August 2007

FINANCE ATTACHMENT


The Delhi program within Melbourne International has an approved Budget for 2007/08 of $32,000 which includes provision for Travel overseas.

Joe Groher Manager Financial Services

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Agenda Item 5.3 Business and International Relations Committee

14 August 2007

LEGAL ATTACHMENT


Section 3C(1) of the Local Government Act 1989 (“the Act”) provides that:

“The primary objective of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions.”

Section 3C(2) of the Act provides that in seeking to achieve its primary objective the Council must have regard to facilitating objectives including:

“(d) to promote appropriate business and employment opportunities;”

Section 7 of the City of Melbourne Act 2001 provides additional objectives including:

“(a) to ensure a proper balance within its community between economic, social, environmental and cultural considerations within the context of the City of Melbourne’s unique capital city responsibilities;” and

“(b) to work in conjunction with the Government of the State on projects which that Government or the Council determines are significant to Melbourne”.

The subject-matter of the report is within the objectives of Council.

Kim Wood Manager Legal Services

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