last chance to save borneo barracks - Toowoomba Chamber of ...

LAST CHANCE TO SAVE
BORNEO BARRACKS
Presented by Mac Stirling
Lauder Pty. Ltd.
Toowoomba Chamber of Commerce and Industry
26 February 2010

WHAT IS OUR INTEREST…
• We run a Commercial Property Development business
(shopping centre and residential subdivision) at
Highfields & in 2007 we became aware of the threat
associated with the possible closure of Borneo Barracks.
• Once we were able to obtain a copy of Defence
consultants report in late 2008 (after threat of FOI) we
quickly realised the broader negative economic impact
the premature closure of Borneo Barracks would have
on the whole Toowoomba region.
• While there seems to be no imminent threat of closure of
Borneo Barracks we are closely monitoring the situation
and generally informing business and the public of the
issue.

HISTORY OF REPORT
• Conducted / compiled late 2006/early 2007. Commissioned by
the Department of Defence – Defence Support Group under
the Force Disposition Programme
• Report was to be released mid 2007 prior to Federal election
• No trace of report during 2008
• Lauder commences investigation Oct 2008 – No joy!
• Lauder instructs Wonderly & Hall Solicitors to undertake F.O.I.
on Department of Defence
• DoD initially advise report only available through F.O.I. then
DoD decides to release report to Lauder / W&H end Jan 2009
• Lauder writes to all relevant elected representatives (Local,
State and Federal) & State candidates.
• Lauder releases ARC Communication press release
(16/02/2009).

THE REPORT
“Socio-Economic Impact
study for the Rationalisation
of Borneo Barracks”
by
SGS Economics & Planning
January 2007

• Terms of Reference
THE REPORT
The terms of reference for this study were developed
in consultation with the Toowoomba City Council,
Crows Nest Shire Council and Rosalie Shire Council
and the Hon. Ian Macfarlane, Federal Member for
Groom.
TOR
– Establish the current economic size of the study
region in terms of regional value added and
employment, and to develop forecasts of the future
size of these economies to 2026/2027;
– Identify the existing social and cultural impacts of the
Barracks on the study region;

THE REPORT
– Establish estimates of the economic activity
generated by the Barracks by establishing the level of
employment of Defence personnel and non-Defence
personnel at the Barracks;
– Determine the amount of Defence direct expenditure
from the Barracks activity which is spent within the
study region. Identify the flow-on economic benefits
and/or costs of Defence expenditure within the study
region;

THE REPORT
– Compare the Barrack’s level of employment and
money flows with familiar data for the study region to
determine the contribution that the Barracks currently
makes to the study region, ensuring that both the
direct and flow-on impacts are taken into account;
– Make some estimates of the importance of the
Barracks to the regional economy of the study region
in the period 2026-2027;
– Identify the possible social and cultural impacts on the
study region if Defence functions were relocated from
the Barracks;

THE REPORT
– Assess the impacts on the study region of the
relocation of Defence families from the study region;
and
– Identify the broad economic, social and cultural
impacts of other Defence, Government, business
and/or community initiatives may have on the study
region over the next 10 years.
NB. There is no reference to economic
comparative modelling between staying at Borneo
Barracks or moving elsewhere.

• Consultation
THE REPORT
– Key Stakeholders:- Defence, Local Councils etc.
– Other Stakeholders:- Meant to include local business
but Lauder who employs 250+ people (indirectly)
were not consulted.
– Public Meetings:- (7 th to 9 th November 2006) No. 6 off
but only 46 people in total attended.

• Submissions
THE REPORT
– Total of 12 written submissions received with 11
strongly opposing and 1 supporting.
– Submissions opposing included:
• Premier of QLD, Hon. Peter Beattie MP;
• Crows Nest Shire Council;
• Toowoomba City Council; and
• Member of Toowoomba South, Mike Horan MP.

WHATS AT BORNEO BARRACKS
(according to consultants report)
• 221ha site (2 lots),
• 400 ADF members + civilian staff and contractors,
• The Army’s deployable electronic warfare unit and
Defence Electronic Warfare Operator training unit,
together with small Defence Materiel Organisation
(DMO) office and support sections,
• 7 th Signal Regiment, a 1 st Division unit, whose primary
role is to undertake deployable Electronic Warfare (EW)
activities,
• Defence Force School of Signals – Electronic Warfare
Wing, which conducts specialist EW initial employment
training for the three services and other government
agencies.

STUDY FINDINGS
SUMMARY
If Borneo Barracks was closed by 2013 the economic and
social impact effect on the region (old Crows Nest Shire,
Rosalie and Toowoomba City Council Shires) would be:
– Total annual losses of $105.3M or 2% of local economy (p.iii)
– Expected losses of 845 jobs (p.x)
– Serious downturn in local housing market with simultaneous
release of 190 residential properties and 120 rented properties
(p.x)
– Serious negative effect on all local small businesses, particularly in
Highfields area (p.xi)
– Serious social impact and high risk effect to local schools and child
care enrolments (p.xii)
THESE ARE THE SUMMARY FINDINGS OF DEFENCE DEPT. CONSULTANTS
REPORT, NOT A “SCARE CAMPAIGN” AS STATED BY NEIL JAMES, EXECUTIVE
DIRECTOR DEFENCE ASSOCIATION. (ABC RADIO 16 FEB 2010)

DEPARTMENT OF DEFENCE
STATEMENT
The Department of Defence’s initial response in late 2008 (Lauder Pty. Ltd.
e-mail request for comment 30 th Oct 2008) stated position was…
“…Defence is currently reviewing Australian Defence Force locations to
ensure that the Australian Defence Force is able to meet our future
Defence needs. The Australian Government is conducting a range of
comprehensive reviews of Defence, including a review of our Defence
bases to ensure that their locations align with strategic guidance, and that
the Defence estate is managed in the most efficient and effective way.
No decisions have been made regarding changes to any Defence bases
around Australia. It would therefore be inappropriate to comment on the
future of individual bases, including Borneo Barracks.”
Ben Wickham
Public Affairs Officer
Public Affairs Operations Centre
Department of Defence, ACT

MORE RECENTLY
ABC News – PM September 22, 2009 “BITE BULLET” & SHUT
DEFENCE BASES
•The Australian Defence Association has backed a
proposal that would see hundreds of defence properties
merged to form super bases
•To save $700M to $1B over a long period of time
•Senator Faulkner says the Federal Government has no
plans to close bases
•Defence Association’s Neil James says it’s a good idea
•Neil James names bases… Woodside in the Adelaide
hills, Richmond Air Force base and Cabarlah (BB) on
Darling Downs
•Neil James states “If you can make quite significant
financial savings and its more operationally and
strategically efficient to close those bases and move the
units elsewhere, then we should do so.”
•Sen. Faulkner states that bases should be located in
family friendly locations – base locations should enable
continued provision of reserve capability and where
possible should be clustered near strategic infrastructure.

MORE RECENTLY
THE WEEKEND AUSTRALIAN, October 24-25, 2009
SUPER-BASE PLAN FACES UGLY POLITICAL BATTLES
By Daniel Cotterill
•“Indeed, the case for base rationalisation is almost too good, so
enticing that the first question to be asked is why hasn’t it been
done already. There are two main answers to that question:
money and politics.”
•“Closing tens or hundreds of defence facilities will mean billions
of dollars in upfront investment at the new super bases.”
•“Then there is the politics of closing existing bases, which make
a welcome contribution to their local economies and inevitably
seem to be located in marginal seats.”
•“According to Pappas, for Defence, the estimated yearly saving
from a super-base model would increase with time to possibly
reach $700M to $1B a year by 2035.”
•“What isn’t mentioned in the budget audit is the amount of upfront
investment needed to realise these savings, but estimates
of $8B to $10B are considered realistic by industry analysts.”
SPEND $8B TO $10B (UP-FRONT) TO POSSIBLY SAVE $700M TO ABOUT
$1B A YEAR BY 2035?

MORE RECENTLY
LETTER FROM SEN. HON. JOHN FAULKNER, MINISTER FOR
DEFENCE – IN RESPONSE TO LAUDER PTY. LTD. LETTER
December 22, 2009
•“The audit made a number of recommendations regarding the future of
the Defence estate, including consolidating the Defence estate into a
‘super base’ model. The Government does not accept these
recommendations. While acknowledging that any move to a ‘super
base’ model would have strategic, economic and social impacts, the
Audit was focussed on financial benefits and therefore did not fully take
into account these broader issues.”
•“I have asked that Defence undertake further work on the issue of
base consolidation… including… a detailed financial analysis of longterm
costs and efficiency gains… over a 25-30 year period.”
•“It is envisaged that a detailed study of this type will take 12-18 months
to complete.” A commission will be formed to, “conduct substantial
public consultation before reporting back to the Government.”
•“I CAN ASSURE YOU THAT NO BASES HAVE BEEN IDENTIFIED
FOR CLOSURE AT THIS TIME, INCLUDING BORNEO BARRACKS.”

LAUDER PTY. LTD.
BELIEVES
• In the short to medium term (to 2020) the premature closure of Borneo
Barracks by the DoD would have serious economic and social impacts on
the Toowoomba region.
• The bases closure will adversely effect the economic and political
momentum of other major projects such as the second range crossing and
the Charlton-Wellcamp precinct.
• It is in everyone’s interest nationally to have sound strategic outcomes with
the most economic expenditure of defence (tax payers) dollars. But we fail
to see how spending $10B up-front to save $1B per year by 2035 is viable.
Mr. James for Defence Association states… “Why should tax payers pay to
prop up the Toowoomba economy?” We ask… Why should tax payers prop
up what is arguably a flawed national economic proposal by Defence at the
expense of Toowoomba’s economy?
• It looks like we as a community have bought some time with the decision
relating to the closure of Borneo Barracks. Should the Government
ultimately decide to close Borneo Barracks, a ‘Plan B’ for the alternative
long term use for the site should be formulated.
• This is a major threat to our economic and social fabric.

WHAT CAN BE DONE?
• When Defence conducts further consultation over the
next 18 months we must make sure our voices are
heard.
• Make everybody aware that this is a very real threat.
• Lobby all elected representatives;
– Local,
– State,
– Federal.
• Stay informed. See www.highfieldsvillage.com.au for
regular updates on the issue. Make comment on website
forum on the topic.
• Fight for what we are!

Edinburgh Defence
Precinct
Borneo Barracks
Cabarlah