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Submission to<br />

National Resource Sector<br />

Employment Taskforce<br />

April 2010


Submitted by:<br />

<strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong><br />

Level 4, 229 Elizabeth Street, Brisbane QLD 4000<br />

GPO Box 2202, Brisbane QLD 4001<br />

Contact:<br />

Michael Kane - Principal Advisor<br />

michael.kane@ulda.qld.gov.au<br />

07 3024 4183<br />

0419 199 684


Executive summary<br />

The <strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong> (ULDA) was<br />

established by the Queensland Government to help<br />

make housing more affordable and to deliver a range<br />

<strong>of</strong> housing options for the changing needs <strong>of</strong> the<br />

community.<br />

The ULDA works within Queensland with local and<br />

state government, community, local landholders and<br />

development industry representatives and has authority<br />

under its own Act in defined <strong>Urban</strong> <strong>Development</strong> Areas<br />

(UDAs) to:<br />

»»<br />

be the planning and development assessment<br />

agency<br />

»»<br />

facilitate and build urban infrastructure<br />

»»<br />

develop urban land.<br />

The Queensland Government has initiated a series <strong>of</strong><br />

actions to improve the sustainability and quality <strong>of</strong> life<br />

in Queensland's resource communities. Key actions that<br />

seek to address housing affordability and liveability in<br />

Queensland's resource communities include:<br />

»»<br />

the Sustainable Resource Communities Partnership<br />

»»<br />

Surat Basin Future Directions Strategy<br />

»»<br />

<strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong> Resource Town<br />

Strategy.<br />

The ULDA has concluded that residential location is<br />

one <strong>of</strong> the key issues that impacts on attraction and<br />

retention in the resource sector. This is in part because<br />

the relative lack <strong>of</strong> attraction <strong>of</strong> resource communities,<br />

as compared to major urban areas, reduces the appeal<br />

<strong>of</strong> resource industry employment for many people.<br />

Further it encourages a 'short term' mentality in terms<br />

<strong>of</strong> worker commitment to the industry (and use <strong>of</strong> FIFO)<br />

therefore encouraging worker turnover.<br />

The ULDA submits that a key part <strong>of</strong> the solution must<br />

be maximising the accommodation choices for resource<br />

workers. As some workers prefer FIFO while others<br />

prefer them and their families to be locally based, it<br />

cannot be a one size fits all solution. It is also clear from<br />

the research (and from anecdotal information provided<br />

to the ULDA from a number <strong>of</strong> resource companies) that<br />

worker preference is partly determined by where in their<br />

life cycle the worker is at: this is particularly so with<br />

workers with young families, where preference tends to<br />

be for locally based accommodation.<br />

If affordable housing, schools and other community<br />

services are provided for workers and their families,<br />

supporting industries could be encouraged to locate<br />

long term support service bases for a region in one or<br />

more resource communities, thereby supporting both<br />

economic and population growth.<br />

Addressing liveability and affordable accommodation<br />

issues will improve the capacity <strong>of</strong> communities to<br />

attract and retain the skilled workforce needed to<br />

support the resources sector and its supply chain<br />

industries over the long term. Improved liveability and<br />

growth <strong>of</strong> permanent resident populations will in turn<br />

support the sustainability <strong>of</strong> resource communities.<br />

ULDA recommendations<br />

1. Commonwealth should establish regional<br />

development funding priorities for key resource<br />

communities with the aim <strong>of</strong> increasing attraction<br />

and retention <strong>of</strong> resource workers and their families.<br />

2. Commonwealth regional development funding<br />

for resource communities should be developed<br />

and implemented to compliment State and Local<br />

government resource community strategies<br />

3. The focus <strong>of</strong> Commonwealth regional development<br />

funding for resource communities should be on:<br />

a. improving economic diversity in resource<br />

communities<br />

b. improving the liveability <strong>of</strong> resource communities<br />

c. supporting affordable housing initiatives <strong>of</strong> state<br />

and local government<br />

d. improving town infrastructure upgrades.<br />

As the resource industry expands, there will be a<br />

corresponding expansion in industries that support the<br />

sector. This would include industries such as supply<br />

chain and maintenance services for a large and wide<br />

variety <strong>of</strong> machinery and equipment.<br />

- 1 -


Who is the ULDA<br />

The <strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong> (ULDA) was<br />

established in November 2007 by the Queensland<br />

Government to help make housing more affordable and<br />

to deliver a range <strong>of</strong> housing options for the changing<br />

needs <strong>of</strong> the community. The ULDA is a key part <strong>of</strong> the<br />

Queensland Housing Affordability Strategy.<br />

The ULDA works within Queensland with local and<br />

state government, community, local landholders and<br />

development industry representatives to help deliver<br />

commercially viable developments that include diverse,<br />

affordable, sustainable housing, and best-practice urban<br />

design.<br />

ULDA Act empowers the ULDA in defined areas (<strong>Urban</strong><br />

<strong>Development</strong> Areas) to:<br />

»»<br />

be the planning and development assessment<br />

agency<br />

»»<br />

facilitate and build urban infrastructure<br />

»»<br />

develop urban land.<br />

Actions being taken by Queensland<br />

Government<br />

The Queensland Government has initiated a series <strong>of</strong><br />

actions to improve the sustainability and quality <strong>of</strong> life<br />

in Queensland's resource communities. Key actions that<br />

seek to address housing affordability and liveability in<br />

Queensland's resource communities include:<br />

»»<br />

the Sustainable Resource Communities Partnership<br />

»»<br />

Surat Basin Future Directions Strategy<br />

»»<br />

<strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong> Resource Town<br />

Strategy.<br />

Sustainable Resource Communities<br />

Partnership<br />

In August 2008, Queensland Government, the Local<br />

Government Association <strong>of</strong> Queensland (LGAQ) and<br />

Queensland Resources Council (QRC) signed the<br />

Sustainable Resource Communities (SRC) Agreement.<br />

The policy is initially focused on resource communities,<br />

where rapid development brought about by the<br />

resources boom is having significant impacts on<br />

community infrastructure and services as well as the<br />

social structure <strong>of</strong> local and regional communities that<br />

support the new or expanded mining and petroleum<br />

developments. Resource communities are those local or<br />

regional communities that depend on, or are affected by<br />

mineral extraction and associated activities, including<br />

petroleum and gas proposals.<br />

The SRC agreement, being rolled out across the Bowen<br />

and Surat basins and North-West minerals province,<br />

commits the parties to work in partnership to build and<br />

maintain prosperous regions, and sustainable, liveable<br />

resource communities. The Agreement is based on the<br />

formation <strong>of</strong> a Partnership Group comprising the QRC,<br />

LGAQ, relevant local government CEOs and mayors, and<br />

the State Government represented by the <strong>Department</strong><br />

<strong>of</strong> Employment, Economic <strong>Development</strong> and <strong>Innovation</strong><br />

(including Mines and Energy) and the <strong>Department</strong> <strong>of</strong><br />

Infrastructure and Planning.<br />

The Partnership Group is supported at a local level<br />

by local leadership groups. The broad role <strong>of</strong> these<br />

groups is to provide an avenue for communication<br />

with companies, contribute to regional planning, and<br />

consider solutions to address local and cumulative<br />

issues.<br />

- 2 -


Surat Basin Future Directions Statement<br />

The Queensland Government in March 2010 released<br />

a Surat Basin Future Directions Statement to manage<br />

growth with the emergence <strong>of</strong> the $40 billion LNG<br />

industry in the Surat Basin. In announcing the plan,<br />

Queensland Premier Anna Bligh stated:<br />

"the only way that will work is if we manage<br />

growth well in these regions to make sure we<br />

retain and improve levels <strong>of</strong> livability. Our boom<br />

areas need to be places were people want to live<br />

and raise a family."<br />

The Surat Basin Future Directions Statement covers<br />

the local government areas <strong>of</strong> Toowoomba, Western<br />

Downs and Maranoa. The Surat Basin Future Directions<br />

Statement commits the Queensland Government to<br />

work with local government and industry to produce<br />

comprehensive plans which manage future growth in the<br />

region. These include a:<br />

»»<br />

Preferred settlement pattern for the Surat Basin<br />

Region - to guide regional planning and service<br />

delivery by October 2010<br />

»»<br />

Regional planning framework to be developed by<br />

October 2010<br />

»»<br />

Regional transport investigation - covering<br />

various transport modes as well as alternative or<br />

complementary non-infrastructure solutions to<br />

transport issues by December 2010<br />

»»<br />

Resource town housing affordability strategy - to<br />

improve availability <strong>of</strong> quality affordable land and<br />

housing by December 2010<br />

»»<br />

Social impact management plans to better<br />

understand social infrastructure requirements and<br />

respond to local needs by July 2010<br />

»»<br />

Economic strategy for the Surat Basin region by<br />

December 2010<br />

»»<br />

Framework to manage strategic cropping land to<br />

protect some <strong>of</strong> the best farming land in Australia<br />

by December 2010<br />

» » Workforce development plan to address skills and<br />

labour needs for the region by December 2010.<br />

The <strong>Urban</strong> <strong>Land</strong> <strong>Development</strong> <strong>Authority</strong><br />

Resource Town Housing Affordability Strategy<br />

The ULDA has been asked by Queensland Government to<br />

work with the relevant local governments, state agencies<br />

and industry to identify in the Bowen and Surat Basins,<br />

and the North-West minerals province:<br />

»»<br />

levels <strong>of</strong> housing demand<br />

»»<br />

planning and land development constraints<br />

»»<br />

solutions to increase land and housing supply.<br />

The ULDA, as a planning authority and urban land<br />

developer, has powers under its own Act to deliver:<br />

»»<br />

faster planning approvals<br />

»»<br />

faster development <strong>of</strong> land and housing that can<br />

add to supply in a timely manner<br />

»»<br />

housing diversity<br />

»»<br />

affordable 'key worker' housing.<br />

Three outcomes for land and housing delivery will<br />

be addressed in the ULDA's Resource Town Housing<br />

Affordability Strategy:<br />

»»<br />

ensuring adequate supply <strong>of</strong> housing for resource<br />

sector workers<br />

»»<br />

facilitating community housing (at less than market<br />

rate) for non-resource sector key workers<br />

»»<br />

providing land on the open market for people to buy<br />

their own homes or for investors.<br />

The segment with the most acute affordable housing<br />

and accommodation demand is those key workers on<br />

low-to-middle incomes <strong>of</strong> between $40,000 and $80,000<br />

a year, who undertake many <strong>of</strong> the jobs essential for<br />

the operation <strong>of</strong> any community, but are not eligible<br />

for housing assistance. This key worker segment is<br />

excluded from the private market due to the high prices<br />

for rent or purchase.<br />

The ULDA's strategies must address affordable housing<br />

and liveability in Queensland’s resource communities<br />

both directly and indirectly. Direct delivery within UDAs<br />

will be by:<br />

»»<br />

master planning growth areas and town centre<br />

rejuvenations<br />

»»<br />

developing projects that deliver diversity<br />

»»<br />

facilitating private development in areas under<br />

ULDA planning control<br />

»»<br />

constructing affordable key non-resource worker<br />

housing.<br />

- 3 -


Indirect delivery outside UDAs will be by:<br />

»»<br />

building capacity within local government<br />

»»<br />

building capacity with support for private<br />

developers and builders<br />

»»<br />

supporting town centre master planning to increase<br />

liveability<br />

»»<br />

assisting with town infrastructure coordination<br />

»»<br />

facilitating affordable key worker housing.<br />

Improving attraction and retention in<br />

the resource sector<br />

The National Resources Sector Employment Taskforce<br />

(the Taskforce) is seeking submissions on Australian<br />

resource industry's need to meet the skill and labour<br />

demand for the next five years.<br />

The Taskforce has noted part <strong>of</strong> the solution to increase<br />

the supply <strong>of</strong> labour includes:<br />

»»<br />

encouraging local people to participate<br />

»»<br />

enticing skilled an unskilled people to move<br />

from other locations, including areas <strong>of</strong> high<br />

unemployment<br />

»»<br />

improving the retention <strong>of</strong> existing employees.<br />

The ULDA's submission addresses the impact on<br />

skills and labour <strong>of</strong> accommodation and liveability<br />

issues in regional and resource towns. By addressing<br />

accommodation and liveability issues there is potential<br />

to:<br />

»»<br />

increase the retention <strong>of</strong> labour in the resource<br />

sector by addressing particular attrition issues<br />

»»<br />

increase the supply <strong>of</strong> workers not usually attracted<br />

to, or excluded from, the resource sector.<br />

FIFO - Attrition and turnover<br />

The Taskforce's 'Resourcing the Future; National<br />

Resources Sector Employment Taskforce Discussion<br />

Paper March 2010' (the Discussion Paper) noted that<br />

labour demand is partly driven by high attrition rates in<br />

the resource sector. Anecdotally turnover is said to be<br />

high due to a range <strong>of</strong> interrelated issues including:<br />

»»<br />

the difficulty <strong>of</strong> working in remote locations<br />

»»<br />

fly in fly out (FIFO)<br />

»»<br />

lack <strong>of</strong> amenity and affordable housing in resource<br />

communities<br />

»»<br />

high number <strong>of</strong> working hours and operation <strong>of</strong> 12<br />

hour shifts<br />

»»<br />

difficult roster patterns.<br />

A 2003 study by the Centre for Social Responsibility in<br />

Mining (CSRM) at the University <strong>of</strong> Queensland found<br />

there were examples <strong>of</strong> high and low turnover in both<br />

FIFO and locally based workforces (CSRM, 2003). As the<br />

Taskforce noted, the CSRM study revealed considerable<br />

variation in employee turnover at FIFO operations in<br />

Australia. The CSRM study included two town based<br />

operations for comparison, but was unable to draw any<br />

conclusions about the differences between town and<br />

FIFO operations.<br />

- 4 -


The conclusion that can be reached from this study is<br />

that there are range <strong>of</strong> factors influencing turnover <strong>of</strong><br />

which accommodation and residential status form part.<br />

Other research suggests that both FIFO and relative lack<br />

<strong>of</strong> liveability and housing affordability <strong>of</strong> some resource<br />

towns are negative factors in terms <strong>of</strong> attraction and<br />

turnover in the resource sector. Gent (2004) has found<br />

that there has been increasing concern regarding the<br />

impact <strong>of</strong> FIFO on both the home and working life <strong>of</strong><br />

commuters (Brereton & Venables, 2002; Collinson,<br />

1998). However, there is little empirical research that<br />

examines the social impact <strong>of</strong> this type <strong>of</strong> work situation<br />

from the perspective <strong>of</strong> the worker and their families<br />

(Heiler, Pickersgill & Briggs, 2000; Shrimpton & Storey,<br />

2001) and this largely remains the case. Gent (2004)<br />

also found, in comparison with established norms<br />

for married and cohabitating couples, FIFO workers<br />

reported significantly lower overall scores on the Dyadic<br />

Adjustment Scale (Spanier,1989) for dyadic consensus,<br />

satisfaction, and total DAS. Data related to domestic<br />

violence, drug abuse, loneliness, stress and depression<br />

are also well documented (Watts 2005; Storey 2001;<br />

Stone & Hughes 2001). Long distance commuting has<br />

been documented in the media and academic research<br />

as placing stress on families through regular parental<br />

absence, family disruption and social support issues<br />

(Watts, 2004).<br />

Haslam MacKenzie (2007) has found there is conflicting<br />

evidence regarding the sustainability <strong>of</strong> communities<br />

where FIFO arrangements dominate, but there is<br />

considerable research (Chamber <strong>of</strong> Minerals and Energy<br />

WA 2005; Watts 2005) suggesting that FIFO does<br />

compromise the retention <strong>of</strong> staff in remote areas. Colley<br />

(2005) and others (Cheney, Lovel & Solomon 2002)<br />

suggest there is a significant level <strong>of</strong> discontent within<br />

the mining workforce as indicated by high turnover rates<br />

and the increasing undesirability <strong>of</strong> mining as a lifelong<br />

occupation. In Beach and Cliff's (2004) study it was<br />

reported by pr<strong>of</strong>essional workers that FIFO made it more<br />

difficult to retain and attract employees, although this<br />

'was not so much that employees disliked FIFO, rather<br />

it wore them out.' One interviewee summed it up when<br />

they referred to FIFO as being measured in dog years<br />

and that most people got 'really tired <strong>of</strong> it after a while'.<br />

FIFO can pose particular challenges for employees with<br />

young families and workers who are single parents. As<br />

the Taskforce accepted, FIFO is generally incompatible<br />

with starting a family and caring for young children.<br />

Gent (2004) found that FIFO workers with children less<br />

than five years <strong>of</strong> age scored lower on relationship<br />

satisfaction and affectional expression than those with a<br />

child aged between 6-12 years and over 18 years <strong>of</strong> age.<br />

Dissatisfaction with FIFO was related to the presence <strong>of</strong><br />

children and the age <strong>of</strong> those children. The younger the<br />

child (0-5yrs) the more likely you are to be dissatisfied<br />

with FIFO.<br />

The WA Chamber <strong>of</strong> Mineral and Energy (2005) research<br />

also identified that FIFO mothers perceived higher levels<br />

<strong>of</strong> family dysfunction than non-FIFO mothers.<br />

However other research has found a strong preference<br />

among some workers for FIFO (WA Chamber <strong>of</strong> Mineral<br />

and Energy 2005). Watts (2005) found that some<br />

workers enjoy FIFO and that their family and friends<br />

are able to positively adapt to the <strong>of</strong>ten peripatetic<br />

arrangements. Further a study on the effects <strong>of</strong> FIFO<br />

commuting arrangements found that while FIFO and<br />

extended hours had a negative impact on an employee's<br />

work satisfaction and lifestyle it did not necessarily<br />

lead to high stress levels or poor health (Clifford,<br />

2009). Clifford's (2009) study found that while FIFO and<br />

extended working hours had weak negative impacts on<br />

employees and their partners, there was no significant<br />

difference in terms <strong>of</strong> a range <strong>of</strong> health and stress<br />

measures between the FIFO sample and locally based<br />

workers and the wider community. Clifford (2009) did<br />

however note there was a proportion <strong>of</strong> FIFO workers<br />

and their partners (between 3% to 21%) that found FIFO<br />

and extended working hours particularly stressful. It may<br />

be that these workers and their families would be better<br />

suited to being locally based in a resource community<br />

rather than undertaking FIFO.<br />

There is clear evidence <strong>of</strong> underlying latent demand for<br />

local residential choice among some FIFO workers in<br />

QLD. Vale's Ellensfield Coal Mine Project Social Impact<br />

Statement (2007) noted that although it was unknown<br />

whether prospective employees would be FIFO, drive-in,<br />

drive-out (DIDO) or move to the area, it was anticipated<br />

that it would be a mixture based on previous experience<br />

in mining and the study area in particular.<br />

That view is consistent with anecdotal information<br />

provided to the ULDA from a Bowen Basin mining<br />

operations that 20% <strong>of</strong> a FIFO workforce eventually<br />

resided locally. Similarly Rolfe (2007) has indicated that<br />

surveys <strong>of</strong> work camp residents in Nebo and Moranbah<br />

suggest that more than 20% would consider moving to<br />

mining towns, (based on 3,122 non-resident workers<br />

in Moranbah, Nebo and Coppabella at June 30, 2007.)<br />

A later study by Petkova, Lockie Rolfe and Ivanova<br />

(2009) found even with limited availability <strong>of</strong> permanent<br />

housing and associated inflation in the purchase and<br />

rental cost <strong>of</strong> that housing, FIFO/DIDO workers surveys<br />

indicated that 11% <strong>of</strong> Moranbah and 12% <strong>of</strong> Nebo work<br />

camp residents were interested in moving permanently<br />

to these towns.<br />

The trend to FIFO by resource companies and the<br />

preference for FIFO by some workers can be partly<br />

explained by the quality and cost <strong>of</strong> housing and the<br />

general liveability <strong>of</strong> resource towns compared to larger<br />

major and coastal urban centres.<br />

- 5 -


A study by Zheng, Rolfe and Di Milia has found the<br />

reason for the increased use <strong>of</strong> FIFO by resource<br />

companies in the Bowen Basin was the lack <strong>of</strong> suitable<br />

and affordable accommodation close to the worksites,<br />

resulting in many workers locating to the coastal<br />

districts.<br />

Petkova, Lockie Rolfe and Ivanova (2009) found<br />

that about 85% <strong>of</strong> Springsure/Rolleston and 94% <strong>of</strong><br />

Moranbah householders indicated that affordable<br />

housing and rentals would encourage them or<br />

other families to stay longer in the area. Rising<br />

accommodation costs were seen to generate several<br />

negative impacts including: financial hardship for<br />

low income earners and one-income families; reports<br />

<strong>of</strong> workers camping or sleeping in their cars as even<br />

temporary accommodation facilities filled up; difficulties<br />

attracting or retaining employees in businesses unable<br />

to compete with the wages paid by mines; and an<br />

acceleration <strong>of</strong> the trends noted above to increasingly<br />

atypical demographic structures and high population<br />

turnover.<br />

One <strong>of</strong> the significant barriers to relocating people is<br />

the supply <strong>of</strong> housing. In many locations in Western<br />

Australia and Queensland, housing availability is<br />

very limited, and the land available for new housing<br />

developments is also limited. McKenzie, Philips, Rowley,<br />

Brereton and Birdsall-Jones (2009) found that housing,<br />

or the lack <strong>of</strong> affordable and climatically appropriate<br />

housing, is a common reason for people not wanting<br />

to live in remote locations. Throughout the WA and<br />

Queensland towns visited by their research team,<br />

housing was <strong>of</strong>ten in short supply, expensive, and not<br />

well maintained due to a paucity <strong>of</strong> tradespeople. An<br />

inadequate supply <strong>of</strong> permanent accommodation in<br />

all these towns contributed to rapidly rising rental and<br />

purchase prices.<br />

<strong>Land</strong> supply for housing has been a key issue across<br />

Australian resource regions. Housing is an essential<br />

component <strong>of</strong> the social and physical infrastructure<br />

underpinning not only the resources industry but the<br />

local towns and regional centres. McKenzie et al (2009)<br />

have argued that where the resource town housing<br />

market is still relatively affordable, it contributes to<br />

a diverse and sustainable economy and community.<br />

Where the house prices rapidly increase, extreme stress<br />

is created threatening the sustainability and economic<br />

viability <strong>of</strong> communities. The failure to provide an<br />

adequate supply <strong>of</strong> affordable housing results not only<br />

in failed communities but higher rates <strong>of</strong> FIFO and DIDO.<br />

FIFO and DIDO negatively impacts, not only on workers<br />

and their families, but also on the local, regional and<br />

(with potential for FIFO from the southern states) on the<br />

state economy through loss <strong>of</strong> expenditure from workers<br />

and their families.<br />

The lack <strong>of</strong> an on-going housing supply can result in the<br />

under-supply <strong>of</strong> an operational workforce (and increased<br />

FIFO and DIDO). A lack <strong>of</strong> available labour within<br />

resource industries has a direct impact on the ability<br />

<strong>of</strong> resource companies to maximise productivity. FIFO<br />

workers for example have a greater potential to change<br />

jobs (partly because being city based for part <strong>of</strong> the time<br />

they have more choices and a change in job location<br />

does not impact on housing or other activities).<br />

Housing is an important and integral factor in<br />

responding to these challenges and is arguably a critical<br />

component <strong>of</strong> social and economic infrastructure such as<br />

hospitals, schools, roads, railways, ports and essential<br />

service utilities. Housing is an essential component <strong>of</strong><br />

the social and physical infrastructure underpinning,<br />

not only the resource industry, but the local towns and<br />

regional centres.<br />

Many resource communities experience median house<br />

prices and rents as high, or higher, than metropolitan<br />

markets. Increased housing demand combined with<br />

accommodation shortages have driven up house prices<br />

and rents to levels which have contributed to a variety <strong>of</strong><br />

social and economic dysfunctions (Piper 2005; Bureau<br />

<strong>of</strong> Transport and Regional Economics 2006; Haslam<br />

McKenzie 2007).<br />

As Mackenzie et al state:<br />

While towns are vulnerable to the resources<br />

super-cycle, their future is tenuous. If an effort<br />

was made to plan and design towns to enhance<br />

liveability and attractiveness, there is a greater<br />

likelihood <strong>of</strong> increased private investment in<br />

businesses and the community. Broadening the<br />

demographic and economic diversity <strong>of</strong> resource<br />

boom towns is essential if these communities are<br />

to achieve some measure <strong>of</strong> sustainability. This<br />

includes government responsibility to ensure<br />

that economically disadvantaged people living<br />

in resource regions are not forced out, or kept<br />

out, due to a lack <strong>of</strong> affordable housing and/or<br />

infrastructure<br />

Importance <strong>of</strong> liveability<br />

Unlike in WA where there are not the strong regional<br />

settlement patterns that are found in Queensland,<br />

a significant proportion <strong>of</strong> resource workers in the<br />

Bowen Basin DIDO from coastal cities and towns such<br />

as Mackay, Rockhampton, Yeppoon and Airlie Beach,<br />

demonstrating that liveability is also a major determiner<br />

<strong>of</strong> residence for Queensland resource workers.<br />

The attraction <strong>of</strong> major towns for resource workers is<br />

that they provide a number <strong>of</strong> benefits. By locating their<br />

permanent residence in a large centre and commuting to<br />

the mine site, mine employees and their families are less<br />

vulnerable to mine closures or changes in employer that<br />

- 6 -


would result in forced relocation from single-enterprise<br />

mining towns (Newton & Robinson, 1987; Robinson &<br />

Newton, 1988). There are also greater levels <strong>of</strong> urban<br />

amenity in terms <strong>of</strong> health, education and retail <strong>of</strong>ferings<br />

which families in particular value highly.<br />

Australia is a highly urbanised country with<br />

approximately 89 per cent <strong>of</strong> the population living in<br />

towns <strong>of</strong> 1000 people or more and over half <strong>of</strong> Australia’s<br />

population lives in five large coastal cities. Added to<br />

this is the fact that Australia has a relatively mobile<br />

population and labour force with about 17 per cent <strong>of</strong> the<br />

population moving on average each year. The result <strong>of</strong><br />

this, and a preference for living in urban centres, has led<br />

to a significant migration away from regional and remote<br />

areas. The WA Chamber <strong>of</strong> Mineral and Energy “CME”<br />

(2005) research noted that since 1986, there has been a<br />

marked movement <strong>of</strong> population to coastal regions and<br />

a general decline in regional population. Remote regions<br />

have experienced a net migration loss, amounting to<br />

eight per cent <strong>of</strong> the population in 1991.<br />

Larger more diverse resource communities therefore<br />

hold an advantage in terms <strong>of</strong> attraction. Petkova,<br />

Lockie Rolfe and Ivanova (2009) referred to one <strong>of</strong> the<br />

key informants to their study <strong>of</strong> Bowen Basin towns<br />

who said 'Moranbah is like a mini-city'. Blackwater, by<br />

contrast, had developed in a more haphazard fashion<br />

since the 1960s leading to, according to Sharma (1983,<br />

p.158), 'a somewhat bleak looking result'. The town still<br />

lacks a clear centre or identity and has limited shops<br />

and services. A point also made by Petkova, Lockie Rolfe<br />

and Ivanova who identified that the largely unplanned<br />

expansions <strong>of</strong> Nebo, Coppabella and Blackwater are<br />

resulting in the loss <strong>of</strong> population. They also concluded<br />

that 'community spirit' plays an important role in these<br />

townships and the lack <strong>of</strong> it has been associated with<br />

the loss <strong>of</strong> women and families from Coppabella and<br />

Blackwater. By contrast the benefits <strong>of</strong> the planning for<br />

Moranbah 'so as to feel like an established community<br />

back in the 1970s appeared to have had lasting benefits<br />

in terms <strong>of</strong> the ability <strong>of</strong> the town to generate a sense<br />

<strong>of</strong> community and to attract service industries and<br />

permanent residents.'<br />

MacKenzie et al have argued that the overriding problem<br />

is to both attract and retain workers in sustainable<br />

settlements that are accessible to mining operations.<br />

Mine sites are rarely now developed near towns, and<br />

will usually close when it is no longer viable to mine<br />

at that site. Inevitably, it is not economic to provide a<br />

permanent town site, and so mine camps with FIFO or<br />

DIDO facilities are developed. This is a classic problem<br />

<strong>of</strong> social needs conflicting with economic demands,<br />

and achieving a compromise is problematic for both<br />

the companies and the employees. This means there is<br />

a need to focus actions on delivering liveability within<br />

larger resource communities that can provide a wider<br />

range <strong>of</strong> health, education or retail <strong>of</strong>ferings, economic<br />

activity beyond resources (or at least wider than one<br />

or two resource companies), and accessibility by air<br />

to capital or regional cities. This is demonstrated by<br />

the relative attraction <strong>of</strong> Moranbah as a resource town<br />

compared to other towns in the region (though housing<br />

affordability and the lack <strong>of</strong> land supply has so far<br />

limited Moranbah's growth).<br />

Increasing the supply <strong>of</strong> workers not usually<br />

attracted to or exluded from the resource<br />

sector<br />

The Taskforce examined the extent <strong>of</strong> underemployment<br />

in locations near proposed resource operations and<br />

in other locations to determine whether there are<br />

opportunities to increase the supply <strong>of</strong> labour by<br />

targeting underemployed people. Groups that are<br />

underrepresented in resource sector employment are<br />

<strong>of</strong>ten also the groups most vulnerable to escalating<br />

prices and the lack <strong>of</strong> housing in resource regions,<br />

including young people and women.<br />

Young people<br />

The Taskforce indicated that it may be that school<br />

leavers are not considered suitable for entry level<br />

positions because <strong>of</strong> the dangerous and remote nature<br />

<strong>of</strong> the work and the need for employees with maturity<br />

and experience in living away from home and family.<br />

MacKenzie (2005) refers to research that shows youth<br />

is the single largest group most likely to leave remote<br />

areas and that once they leave, they are unlikely to<br />

return. In communities, particularly those dominated by<br />

mining, young people are a potential resource but due<br />

to a variety <strong>of</strong> problems, including inadequate training,<br />

accommodation shortages, high cost <strong>of</strong> living and a<br />

dearth <strong>of</strong> youth-oriented entertainment, young people<br />

are not easily lured to stay in remote communities in the<br />

longer term.<br />

While it is acknowledged that the youth cohort is highly<br />

mobile regardless <strong>of</strong> their location MacKenzie 2005 (and<br />

others: Haslam McKenzie and James 2002; Forth 2001,<br />

Eversole 2001; Cameron and Milstein 1998) found that<br />

young people in rural, regional and remote Australia<br />

would like to have more control over where they are<br />

located in order to pursue higher education and work<br />

options. Many would welcome the option to stay closer<br />

to home immediately after finishing secondary school<br />

rather than having to go to capital cities to develop skills<br />

and get work.<br />

- 7 -


Women<br />

The Taskforce noted that women only represented just<br />

over three per cent <strong>of</strong> all employees at mine sites and<br />

minerals processing operations. The Taskforce also<br />

recognised that FIFO can pose particular challenges for<br />

employees with young families and workers who are<br />

single parents. It is generally incompatible with starting<br />

a family and caring for young children. On the other hand<br />

it can create opportunities for young women to start<br />

their careers as well as for mature-age women who wish<br />

to re-enter the workforce after raising children (Costa,<br />

Silva, Hui, 2006).<br />

In a study <strong>of</strong> twenty WA women working in the resource<br />

industry FIFO was not seen as a long term option for<br />

most women, especially for those who wanted children<br />

and or develop a sense <strong>of</strong> home or community (Pirotta<br />

2009). Similarly Lord and Preston (2003) report 'Women<br />

and FIFO: Take it or leave it?' found tertiary students<br />

in resource industry pr<strong>of</strong>essions, based on their work<br />

experience, saw FIFO as being:<br />

»»<br />

short term<br />

»»<br />

having a high costs with impacts on family, friends<br />

and relationships<br />

»»<br />

having some benefits (free food and lodging, ability<br />

to earn high salary)<br />

»»<br />

impossible to combine with motherhood.<br />

The conclusion that can be reached is that FIFO can<br />

be particularly unsuitable for women and parents with<br />

young children. This means that improving resource<br />

communities requires particular focus on addressing the<br />

needs for women and young families.<br />

- 8 -


Conclusion<br />

The ULDA submits that residential location is one <strong>of</strong><br />

the key issues that impact on attraction and retention<br />

in the resource sector. This is in part because the<br />

relative lack <strong>of</strong> attraction <strong>of</strong> resource communities, as<br />

compared to major urban areas, reduces the appeal <strong>of</strong><br />

resource industry employment for many people. Further<br />

it encourages a 'short term' mentality in terms <strong>of</strong> worker<br />

commitment to the industry (and use <strong>of</strong> FIFO) therefore<br />

encouraging turnover.<br />

The ULDA submission is essentially that a key part <strong>of</strong><br />

the solution is to maximise the accommodation choices<br />

for resource workers. What is clear from the research<br />

is that many workers prefer FIFO while other workers<br />

and their families prefer being locally based. It is not a<br />

matter <strong>of</strong> a one size fits all approach. It is also clear from<br />

the research (and from anecdotal information provided<br />

to the ULDA from a number <strong>of</strong> resource companies) that<br />

worker preference is partly determined by where they<br />

are in their life cycle: this is particularly so for workers<br />

with young families where family preference tends to be<br />

for being locally based.<br />

The Taskforce has recognised the linkage between<br />

having strong resource communities and attraction and<br />

retention:<br />

"it is important to recognise that while resources<br />

projects present opportunities for local people,<br />

they also present significant problems for<br />

some communities, including high costs <strong>of</strong><br />

housing, food and other costs, and wage and<br />

labour pressures on other local businesses and<br />

industries. Thriving local communities with<br />

abundant social infrastructure, including good<br />

schools, access to high quality tertiary education<br />

and training, child care, health facilities, sports<br />

and recreational facilities may form an important<br />

part <strong>of</strong> the response to the workforce challenges<br />

that will confront the resources sector over the<br />

next five to ten years."<br />

While the Taskforce rightly recognised the role<br />

'for regional and state governments to coordinate<br />

with mining operations and local communities to<br />

deliver better outcomes' is also a role for the Federal<br />

Government. The ULDA submits that the Federal<br />

Government can support the range <strong>of</strong> initiatives<br />

undertaken by the Queensland Government (and similar<br />

initiatives <strong>of</strong> the WA Government with Karratha 2020)<br />

to increase liveability and affordable housing supply in<br />

major resource towns.<br />

The high rates <strong>of</strong> turnover and barriers to entry into the<br />

resource sector are due to a complex range <strong>of</strong> factors.<br />

This would suggest targeted solutions and strategies<br />

will be required rather than a broad brush approach. As<br />

per the Regional <strong>Development</strong> Australia Core Principle <strong>of</strong><br />

having a 'more integrated and aligned arrangements for<br />

regional engagement and economic development', there<br />

is an opportunity for all tiers <strong>of</strong> government to have<br />

strategies to deliver increased levels <strong>of</strong> economic and<br />

social sustainability for resource communities.<br />

The Queensland Government's moves to strengthen<br />

regional planning and growth management capacity,<br />

as well as introduce sustainability policies for resource<br />

communities, provide the policies and structures to<br />

support local governments. Through the ULDA, local<br />

planning and land development in major Queensland<br />

resource communities will be given support and priority.<br />

The opportunity for the Commonwealth is for funding<br />

support through targeting regional development<br />

programs or policies toward delivering sustainable<br />

resource communities.<br />

ULDA recommendations<br />

1. Commonwealth should establish regional<br />

development funding priorities for key resource<br />

communities with the aim <strong>of</strong> increasing attraction<br />

and retention <strong>of</strong> resource workers and their families.<br />

2. Commonwealth regional development funding<br />

for resource communities should be developed<br />

and implemented to compliment State and Local<br />

government resource community strategies<br />

3. The focus <strong>of</strong> Commonwealth regional development<br />

funding for resource communities should be on:<br />

a. improving economic diversity in resource<br />

communities<br />

b. improving the liveability <strong>of</strong> resource communities<br />

c. supporting affordable housing initiatives <strong>of</strong> state<br />

and local government<br />

d. improving town infrastructure upgrades.<br />

- 9 -


References<br />

Beach, R. Brereton, D. Cliff, D. (2003)<br />

Workforce turnover in FIFO mining operations in Australia: an exploratory study, CSRM and MISHC University <strong>of</strong><br />

Queensland<br />

Beach, R. And Cliff, D. (2003)<br />

Turnover and FIFO operations: some facts, opinions and theories AusIMM Bulletin Sept/Oct 2003 (5) 64-65<br />

Clifford, S (2009)<br />

The effects <strong>of</strong> Fly In Fly Out commute arrangements and extended working hours on the stress, lifestyle, relationship<br />

and health characteristics <strong>of</strong> Western Australian mining employees and their partners: Preliminary report <strong>of</strong> research<br />

findings, UWA<br />

Gent, V. (2004)<br />

The Impact <strong>of</strong> Fly In / Fly Out Work on Well Being and Work-Life Satisfaction, Honours thesis<br />

Haslam McKenzie, F. (2007)<br />

Attracting and retaining skilled and pr<strong>of</strong>essional staff in remote locations, DKCRC Report 21<br />

Mackenzie, F. Phillips, R. Rowley, S, Brereton, D. and Birdsall-Jones, C (2009)<br />

Housing market dynamics in resource boom towns, AHURI Final Report No 135<br />

Petkova, V. Lockie, S Rolfe, J. and Ivanova, G. (2009)<br />

Mining developments and social impacts on communities: Bowen Basin case studies, Rural Society Vol 19 Number 3<br />

October 2009<br />

Pirotta, J (2009)<br />

An exploration <strong>of</strong> the experiences <strong>of</strong> women who FIFO The Australian Community Psychological Society Ltd Vol 21 No2<br />

December 2009<br />

Rolfe, J., (2007)<br />

Growth in the Coal Industry and Economic and Social Consequences. Accessed online on October 16, 2008 at: http://<br />

www.bowenbasin.cqu.edu.au/Mackay%20Forum%202007/John%20Rolfe.ppt#317,31<br />

Rolfe, J, Ivanova, G, Lockie, S (2007)<br />

Assessing the social and economic impacts <strong>of</strong> coal mining on communities in the Bowen Basin: Summary and<br />

recommendations, Research Report No. 11, Socio-economic impact assessment and community engagement to reduce<br />

conflict over mine operations research reports March 2006<br />

Zheng, C. Rolfe, R and Di Milia, L, (2007)<br />

Strategic Human Resource Management (HRM) and Business Performance <strong>of</strong> the Regional Coal Mining Industry in<br />

Central Queensland, Central Queensland University<br />

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