Urban Land Development Authority - Department of Innovation ...
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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 />
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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 />
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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 />
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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 />
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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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