socio-economic costs and benefits of a mining workforce on busselton
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Socio-economic costs and benefits of a mining workforce on Busselton . Professor Fiona Haslam McKenzie Dr Aileen Hoath. Recent Research. CSIRO Minerals Down Under program, Regions in Transition, part of the Minerals Futures Flagship - PowerPoint PPT PresentationTRANSCRIPT
Socio-economic costs and benefits of a mining workforce on Busselton
Professor Fiona Haslam McKenzieDr Aileen Hoath
Recent Research• CSIRO Minerals Down Under program,
Regions in Transition, part of the Minerals Futures Flagship
• Co-operative Research Centre - Remote Economic Participation, Remote Economies research agenda
• Commonwealth Department of Regional Australia, Local government, Arts & Sport
Long distance commuting (LDC)
• Interest in FIFO, DIDO, FEFO, BIBO increased exponentially in the last decade
• House of Representatives FIFO Enquiry – Regions in transition– Source communities – Host communities
Long distance commuting (LDC) (cont-d)
• 2001-2006 intercensul period fourfold increase# • 2006-2011 intercensul period twofold increase# • in Western Australia, ~101,000 FIFO workers in
mining industry (~52% of WA mining workforce)*
• Projected to increase to ~120,00 in 2012*
• * Chamber of Minerals and Energy, 2012• # ABS Census data
Who benefits from a mine workforce?
19%
69%
13%
PeelPerth MetroOther
26%
58%
17%
PeelPerth MetroOther
• Evidence from Boddington Research (CSIRO)
• Total income impact
Total employment impact
Where do people live?
Source: Hoath, Haslam McKenzie, & Maybee 2012 Hoath 2011;
Where are miners spending their income?
6
The impact of miner expenditure? • Using a set of economic multipliers: – for the Western Australian economy (Clement & Ye 1995)– calculated specifically utilizing data from the Peel region
(Johnson 2007) • we assessed the income and employment impacts
from Boddington
Peel Economic Multipliers
8
Who benefits?• Perth Metro receives the greatest absolute impact. • However…. that impact is spread over a much larger
base • The most intensive impact is within the Peel Region,
which while being smaller in absolute terms, is spread over a smaller base.
• Busselton should be benefiting – and it is, but not as much as it should be.
So what? (1)
• The geographic distribution of economic costs and benefits is uneven.
• If local communities are to benefit from mining, there has to be the opportunity to spend income locally
• The benefits are distributed widely (and no doubt, leaked). • There are inevitable costs associated with LDC• Especially for the host community if it is receiving limited income
expenditure and secondary and tertiary employment benefits• Source communities also incur costs:
– Unanticipated/unplanned growth– High demand on infrastructure and services
A source community – Busselton
Source: ABS 2001 2006 2011 Census data
A source community – Busselton (2)
Source: ABS 2001 2006 2011 Census data
A source community – Busselton (3)
Source: ABS 2001 2006 2011 Census data
Managers Professionals Technicians and trades
workers(b)
Community and personal
service workers
Clerical and administrative
workers
Sales workers Machinery operators and
drivers
Labourers Inadequately described/Not
stated
0
2
4
6
8
10
12
14
16
18
20
16
13
18
8
1210
6
16
2
1513
19
8
12 11
6
15
1
1415
18
10
1211
6
13
1
Busselton: Occupation by percentage
Census 2001 Census 2006 Census 2011
%
A source community – Busselton (4)
A source community – Busselton (5)
A source community – Busselton (3)
Source: ABS 2001 2006 2011 Census data
A source community – Busselton (4)
Source: ABS 2001 2006 2011 Census data
2001 2006 20110
200
400
600
800
1000
1200
1400
1600
1800
2000
867
1257
1900
Busselton: Median mortgage repayment ($/monthly)
Median mortgage repayment ($/...
Census
AUS
$
2001 2006 20110
50
100
150
200
250
300
140
180
270
Busselton: Median rent ($/weekly)
Median rent ($/weekly)
Census
AUS
$
So, despite median income increasing, rents mortgage payments in Busselton increasing at a high rate, 2001-11
LDC – Busselton Social Impacts (1) • LDC is not new to Busselton, although numbers have
increased exponentially since 2001• High proportion of oil and gas industry LDC workers
(relative)• A significant proportion of mine services and
construction LDC workers• Different skills and skill levels in Busselton • Rio Tinto is one of many LDC employers in the region• Many of the issues identified probably always present
but LDC amplifies the impactsSource: ABS 2001 2006 2011 Census data
LDC – Busselton Social Issues
• The ‘golden handcuffs’• Poor financial management conflicts • Motivation for LDC changes over time• Relationship conflicts can be exacerbated by LDC• Loneliness for both partners• Lack of Busselton-specific support services• Substance abuse
Source: ABS 2001 2006 2011 Census data
LDC – Busselton Social Issues (2) • Busselton not always a friendly community • Busselton could do more to capture the benefits
of LDC• A growing and often manufactured gulf between
the ‘haves’ and the ‘have nots’• Too much expected of mining companies and
their employees• BUT …. LDC is not all bad, in fact many people
enjoy the lifestyle and there are benefits.Source: ABS 2001 2006 2011 Census data
Perceived Service GapsIdentified Service Gaps Responsible agency? Child care Local government authority,
planning, SMEMental health State government
Women’s refuge State/local government
Financial planning Individual , company induction
Community centre Local government authority
Substance abuse management State government
Relationship management State/local government, Company induction
Affordable housing State/local government, community housing providers
Youth services Local government
Further information ...• The final report will go to the Federal Minister
in June 2013• Professor Fiona Haslam McKenzie– Principal research leader at Co-operative Research Centre -
Remote Economic Participation and professorial fellow at Curtin Graduate School of Business
– [email protected] 0417 09 8880
• Dr Aileen Hoath– CSIRO research fellow Curtin Graduate School of Business– [email protected] 0439 474 269