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Socio-economic costs and benefits of a mining workforce on Busselton

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

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Socio-economic costs and benefits of a mining workforce on Busselton

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  1. Socio-economic costs and benefits of a mining workforce on Busselton Professor Fiona Haslam McKenzie Dr Aileen Hoath

  2. 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

  3. 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

  4. 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

  5. Who benefits from a mine workforce? • Evidence from Boddington Research (CSIRO) • Total income impact Where do people live? Total employment impact Source: Hoath, Haslam McKenzie, & Maybee 2012 Hoath 2011;

  6. Where are miners spending their income?

  7. 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

  8. Peel Economic Multipliers

  9. 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.

  10. 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

  11. A source community – Busselton Source: ABS 2001 2006 2011 Census data

  12. A source community – Busselton (2) Source: ABS 2001 2006 2011 Census data

  13. A source community – Busselton (3) Source: ABS 2001 2006 2011 Census data

  14. A source community – Busselton (4)

  15. A source community – Busselton (5)

  16. A source community – Busselton (3) Source: ABS 2001 2006 2011 Census data

  17. A source community – Busselton (4) So, despite median income increasing, rents mortgage payments in Busselton increasing at a high rate, 2001-11 Source: ABS 2001 2006 2011 Census data

  18. 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 impacts Source: ABS 2001 2006 2011 Census data

  19. 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

  20. 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

  21. Perceived Service Gaps

  22. 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 • F.mckenzie@curtin.edu.au 0417 09 8880 • Dr Aileen Hoath • CSIRO research fellow Curtin Graduate School of Business • A.hoath@curtin.edu.au 0439 474 269

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