Presentation by W S (Bill) Cummings

1. FLINDERS RIVER WATER DEVELOPMENT FORUMHUGHENDEN November 2008Social & Economic Benefits Study Presentation by W S (Bill) Cummings

2. BILL CUMMINGS Cummings Economics –– economic aspects.JEFF BENJAMIN North Australia Water Strategies – water aspects.JOHN O’HALLORAN – social aspects STUDY TEAM

3. 3.7 MEGALITRES A YEAR – SUBSTANTIAL CATCHMENT IN STATE AND NATIONAL TERMS.ONLY A SMALL FRACTION BEING USED. FLINDERS RIVER

4. RECENT YEARS: • Expansion of small scale usage for irrigation. • Including artesian, farm dams and small instream extraction. TWO MAJOR SCHEMES PROPOSED: • MT BECKFORD – HUGHENDEN. • O’CONNELL CR - RICHMOND.

5. MT BECKFORD: • SMEC Report 2003. • “In Stream” dam. • 15km east of Hughenden. • Report based on variation of SMEC with 30 - 35m high “in stream” embankment : embankments to Mt Arthur and across Eight Mile Ck. O’CONNELL CREEK: • Offstream storage. Flood harvest. • Gravity diversion from river. • 5m sheet pile weir in the river and excavated channel to storage.

6. CAPITAL COST & WATER DELIVERED

7. YIELD & MEAN ANNUAL FLOW

8. EST. WORKFORCE STRUCTURE McKinlay, Cloncurry, Richmond & Flinders Shires

9. LONG-TERM POPULATION CHANGES Source : Australian Bureau of Statistics – Census & Other Data.

10. THREATS TO RAILWAY EMPLOYMENT. • MINING, MAINLY FIFO. • LIMITED OPPORTUNITIES TOURISM. • MAJOR STIMULUS NEEDED.

11. FACTORS FAVOURABLE TO IRRIGATION: • Small but growing number of local irrigators. • Rail links to largest general cargo port, North Australia. • Tropical agricultural technology improving.

12. AREA OF IRRIGATED CROPPING IN THE FITZROY BASIN, 2001 a for human consumption. Source : CIE 2001.

13. ESTIMATED IMPACT OF IRRIGATION SCHEMES Gross Value of Production

14. OTHER SOURCES OF INCOME COMMUNITY RECREATIONAL TOURISM BENEFITS $10m Estimated Expenditure by Recreation Fishers, Dams South Burnett, Central Q’ld – 2003/04 Source : Press Statement – Q’ld Minister for Primary Industries, 2004.

15. CONSTRUCTION PHASE Workforce: • FLINDERS SHIRE +20% • RICHMOND SHIRE +40%

16. IMPACTS ON AGRICULTURE

19. SOCIAL STRUCTURE • Populations declining • Incomes above state average • Housing costs lower • Unemployment low • Indigenous Flinders 7% Richmond 3% • Average age 35 • High Australian born • Education levels lower • High proportion of managers and admin • High proportion agriculture & transport

20. SOCIAL IMPACTS • Small number of properties flooded • Sites close to towns already existing infrastructure & services • Found very strong support in communities • Improved business viability, services, new recreational benefits • Consistent with community capacity building initiatives • Indigenous organisations support

21. HUGHENDEN & RICHMOND • Social infrastructure (health, education, public safety, transport), capacity to absorb increase in population especially in terms of available buildings. • Lag time in government agency responses need to be addressed. • Address construction and seasonal worker fluctuation.

22. LAND AND DWELLING PRICES LOW. • FLINDERS SEWERAGE UPGRADE NEEDED OTHERWISE NO CONSTRAINTS TO EXPANSION. • PUBLIC HOUSING – TEMPORARY ACCOMMODATION DURING CONSTRUCTION.

23. Strong local job opportunities. • Existing local skills. • Vacant land and buildings. • Strategy for technical expertise & support for irrigators. • Report lists strategies – maximise benefits, minimise any negatives.

24. CHANGES SINCE THEN • NOT A GREAT DEAL IN BASIC SITUATION. • INCREASED COSTS OF FUEL, INPUTS AND EXCHANGE RATE, BUT RECENT CHANGES. • FUEL PUMPING COSTS HIGHER. • BIOFUEL CROPS (?) • SECOND CROPS (?)

25. www.cummings.net.au