Review of the Business/ Industry Scoping Study for the Shire of
Transcription
Review of the Business/ Industry Scoping Study for the Shire of
Livingstone Shire Council Review of the Business/ Industry Scoping Study for the Shire of Livingstone January, 2002 This Review of the Business/ Industry Scoping Study has been prepared on behalf of: Livingstone Shire Council The report has been prepared by: PO Box 1176 Unit 5/ 117 Merthyr Road NEW FARM QLD 4005 Ph: 61 7 3358 5418 Fax: 61 7 3358 4287 email: [email protected] website: www.sgs-pl.com.au Offices also in Sydney, Melbourne and Hobart TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................................................I STUDY BACKGROUND ............................................................................................................................................... I The Original Business/ Industry Scoping Study, 1998............................................................................ i Requirements of this Review ...................................................................................................................... i BUSINESS AND INDUSTRY OPPORTUNITIES ................................................................................................................... I RECOMMENDATIONS FOR BUSINESS AND INDUSTRY IN LIVINGSTONE SHIRE .............................................................. III Priorities for Business and Industry in Livingstone Shire....................................................................... iii Key Recommendations ............................................................................................................................. iii 1. STUDY BACKGROUND AND RATIONALE.............................................................................................. 1 1.1 STUDY BACKGROUND ................................................................................................................................ 1 1.2 A VISION FOR LIVINGSTONE SHIRE ............................................................................................................. 1 1.3 PURPOSE OF THIS REVIEW ........................................................................................................................... 2 1.4 ESTABLISHING LIVINGSTONE’S STRENGTHS AND OPPORTUNITIES FOR BUSINESS AND INDUSTRY ..................... 5 1.4.1 The Need for a Regional Perspective.................................................................................. 5 1.4.2 Building on the ‘Drivers’ of Local Economic Activity....................................................... 5 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 3. THE NATIONAL AND GLOBAL ECONOMIC CONTEXT....................................................................... 7 THE AGRICULTURAL SECTOR DECLINE ........................................................................................................ 7 THE GROWTH IN TRANSFORMATIVE, VALUE ADDED INDUSTRIAL ACTIVITIES ................................................. 8 THE RECOGNISED IMPORTANCE OF IMPORT REPLACEMENT ........................................................................ 9 THE GROWTH IN ELABORATELY TRANSFORMED MANUFACTURES (ETMS).................................................... 9 NEW PRODUCTION TECHNOLOGIES AND CHANGING SKILL REQUIREMENTS ............................................. 10 A RISE IN SERVICE SECTOR ACTIVITY ........................................................................................................ 11 ADVANCES IN COMMUNICATIONS & INFORMATION TECHNOLOGY......................................................... 12 SUPPLY CHAIN (PRODUCTION) LEAKAGES ............................................................................................... 12 GREATER COMPETITION FOR BUSINESS INVESTMENT .................................................................................. 12 THE RISE OF THE ‘ENTERPRISE HOUSEHOLD’.......................................................................................... 13 THE IMPORTANCE OF LIFESTYLE AND LIVABILITY .................................................................................... 13 REGIONAL CONSIDERATIONS – CENTRAL QUEENSLAND .............................................................. 15 3.1 AN OVERVIEW OF THE CENTRAL QUEENSLAND ECONOMY ...................................................................... 15 3.2 LIVINGSTONE, THE ROCKHAMPTON SUB-REGION, THE FITZROY REGION AND CENTRAL QUEENSLAND ....... 19 3.3 THE CENTRAL QUEENSLAND SUB-REGIONS COMPARED ........................................................................... 21 3.3.1 The Gladstone Area ............................................................................................................... 21 3.3.2 The Emerald Area.................................................................................................................... 21 3.3.3 The Mackay Area .................................................................................................................... 22 3.3.4 The Rockhampton Area ........................................................................................................ 22 4. THE LIVINGSTONE ECONOMY IN THE SUB-REGIONAL AND REGIONAL CONTEXT .................. 23 4.1 LIVINGSTONE SHIRE .................................................................................................................................. 23 4.2 THE ROCKHAMPTON SUB-REGIONAL ECONOMY ..................................................................................... 24 4.2.1 Key Industries in the Rockhampton Sub-region .............................................................. 25 4.2.2 Rockhampton, Gladstone and the Fitzroy Region ........................................................ 28 4.2.3 Change in Employment by Industry Sector, Rockhampton Sub-region ................. 30 4.3 IMPLICATIONS FOR BUSINESS AND INDUSTRY DEVELOPMENT IN THE LIVINGSTONE SHIRE ............................. 33 5. BUSINESS/ INDUSTRY PROSPECTS FOR LIVINGSTONE SHIRE.......................................................... 35 5.1 OPPORTUNITY IDENTIFICATION ................................................................................................................. 35 5.2 BUSINESS/ INDUSTRY DEVELOPMENT OPPORTUNITIES FOR LIVINGSTONE SHIRE ........................................... 35 5.2.1 Machinery and Equipment Manufacturing..................................................................... 35 5.2.2 Specialist Business Services to Mining and Manufacturing.......................................... 36 5.2.3 Food Processing and Associated Activities ..................................................................... 38 5.2.4 Timber Processing and Associated Manufacturing....................................................... 38 5.2.5 Transport, Warehousing and Distribution .......................................................................... 39 5.2.6 Retailing ..................................................................................................................................... 40 5.2.7 General Service Industry ....................................................................................................... 41 5.2.8 Tourism ........................................................................................................................................ 42 5.2.9 IT Service Industry .................................................................................................................... 43 5.2.10 Knowledge/ Home-Based Industry .................................................................................... 44 5.2.11 Education Services.................................................................................................................. 45 6. 6.1 7. BUSINESS/ INDUSTRY OPPORTUNITY ASSESSMENT........................................................................... 47 KEY LOCATIONAL REQUIREMENTS ............................................................................................................ 47 RECOMMENDATIONS FOR BUSINESS AND INDUSTRY – RETAIL DEVELOPMENT ........................ 62 7.1 RETAIL ANALYSIS ...................................................................................................................................... 62 7.1.1 Preceding Recommendations ............................................................................................ 62 7.1.2 Existing Retail Floorspace in Livingstone Shire ................................................................. 63 7.1.3 Retail Demand in Livingstone Shire .................................................................................... 64 7.1.5 Livingstone’s Retail Requirements – Findings and Recommendations .................... 67 8. 8.1 8.2 8.3 8.4 8.5 RECOMMENDATIONS FOR BUSINESS AND INDUSTRY – DESIGNATED AREAS ........................... 69 ASSESSMENT OF THE PINEAPPLE PATCH SITE (AREA A) ............................................................................. 69 ASSESSMENT OF THE TARANGANBA/ TANBY ROAD SITE (AREA B) ............................................................ 74 ASSESSMENT OF THE EMU PARK INDUSTRY NODE (AREA C) ..................................................................... 75 QUALITATIVE ASSESSMENT OF BUSINESS/ INDUSTRY OPPORTUNITIES........................................................... 82 RECOMMENDATIONS FOR BUSINESS AND INDUSTRY .................................................................................. 94 REFERENCES APPENDIX A: PEOPLE CONSULTED DURING THE COURSE OF THE STUDY APPENDIX B: CONSULTATION FEEDBACK FORM AND ASSOCIATED INFORMATION APPENDIX C: LIVINGSTONE SHIRE’S STRATEGIC PLANNING FRAMEWORK APPENDIX D: INDUSTRIAL DEVELOPMENTS AND PROSPECTS IN CENTRAL QUEENSLAND APPENDIX E: RETAIL DEFINITIONS APPENDIX F: BUSINESS/ INDUSTRY STUDY AREA SITE DETAILS LIST OF FIGURES Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18: Figure 19: Figure 20: Figure 21: Business/ Industry Scoping Study Areas ................................................3 Farmers’ Terms of Trade in Australia, 1953/54 to 1996/97...................8 Australia’s Manufactured Exports (AUD $m), 1987-88 to 1997/98 ..10 Average Annual Growth in Australia’s Service Exports by Type, 1985/86 – 1995/96...................................................................................11 The Central Queensland Region .........................................................16 Central Queensland by Local Government Area ...........................16 The Fitzroy Region (Statistical Division) ................................................20 The Rockhampton Sub-region .............................................................20 Employment by Industry Sector (%), Livingstone Shire and Rockhampton Sub-region, 1996 ..........................................................24 Location Quotients, Employment by Industry Sector (sub-region/ Queensland), Rockhampton Sub-region, 1996 .................................26 Employment by Industry Sector, Rockhampton Sub-region, Gladstone Sub-region and Fitzroy Statistical Division, 1996.............29 Location Quotients (Sub-region/ Queensland), Industry of Employment, Gladstone Sub-region, 1996.........................................30 Change in Employment by Selected Industry Sector, Rockhampton Sub-region, 1986-1996 .................................................31 Land Use Zoning – Area A and Surrounds ..........................................70 Land Use Constraints – Area A and Surrounds ..................................73 Land Use Zoning – Area B and Surrounds...........................................78 Land Use Constraints – Area B and Surrounds ...................................79 Land Use Zoning – Area C and Surrounds ..........................................80 Land Use Constraints – Area C and Surrounds ..................................81 Business/ Industry Frame Area - Yeppoon ..........................................98 Business/ Industry Frame Area – Emu Park........................................101 LIST OF TABLES Table 1: Key Requirements of Business & Industry Opportunities for Livingstone Shire .......................................................................................48 Table 2: Population and Household Forecasts for Livingstone Shire, 1996 - 2014 .................................................................................................65 Table 3: Retail Floorspace Needs, Livingstone Shire, 2001-2014 ......................68 Table 4: Site Assessment, Area A...........................................................................71 Table 5: Site Assessment, Area B ...........................................................................74 Table 6: Site Assessment, Area C ..........................................................................76 Table 7: Qualitative Assessment of Opportunities for Business and Industry in Livingstone Shire.....................................................................84 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary Executive Summary Study Background The Original Business/ Industry Scoping Study, 1998 • In 1997, Livingstone Shire Council commissioned the preparation of a Business/Industry Scoping Study for the Livingstone Shire. Following its completion, the study was amended in 1998. The original scoping study identified new business and industry opportunities in the Livingstone Shire, and nominated parcels of land to be serviced for the future establishment of such industries. These are: - Area A: The Pineapple Patch site in West Yeppoon/ Bondoola (436 hectares) - Area B: In Taranganba near the intersection of Taranganba Rd and Tanby Rd (322 hectares) - Area C: Land including a former rifle range and existing industrial lots at Emu Park (113 hectares) • The original study responded to Council’s (and the community’s) vision for the economic development of Livingstone Shire, which is to maintain the shire’s high quality natural environment and its lifestyle attributes, while accommodating a variety of small, environmentally acceptable industries in appropriate locations into the future. Requirements of this Review • This Review has been prepared to reflect recent changes to business and industry sectors in the wider region, and the intentions of the new IPA planning scheme for Livingstone Shire, as indicated in the Statement of Proposals, released in April 2001. • Responding to Council’s vision for economic development in the shire is paramount to this review, and compatibility with Council’s strategic planning objectives is a key criteria in the assessment of identified opportunities for business and industry development in the Livingstone Shire. Business and Industry Opportunities • This review takes a regional assessment of business and industry structure and trends. This allows for a better understanding of Livingstone Shire’s ‘place’ in the wider regional context to be acquired so that opportunities for business and industry are maximised. • Livingstone Shire is part of the Central Queensland region of Australia, and local economic opportunities are in large part, determined by economic activity at this SGS Economics and Planning Pty Ltd Page i Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary wider regional level. Livingstone Shire is more immediately affected by trends, developments and prospects in what can be termed the Rockhampton subregion. By definition, the Rockhampton sub-region includes the local government areas of Rockhampton, Fitzroy, Mount Morgan and Livingstone. • Consultation, research and analysis has determined that, in broad terms, the driver sectors of economic activity in the Rockhampton sub-region, and those that heavily influence opportunities for Livingstone Shire, are: - Metal Product Manufacturing; - Mineral Product Manufacturing; - Machinery and Equipment Manufacturing; - Mining; - Agriculture and Food Processing; - Power Generation; and - (Tertiary) Education and Research. • The continued growth of the driver sectors in the region provides the opportunity for the continued development of secondary or support industry, which relies on these industrial strengths. Broadly speaking, these activities include: - Transport, Warehousing and Distribution; - Services to Agriculture; - Specialist Services to Mining and Manufacturing; - Wholesale/ Retail Trade and General Service Industry - Tourism-related activities; and - Business and Industry Support Services. • Other sectors or activities that have potential to take advantage of the region’s lifestyle attributes (including the full range of services and facilities available) are the ‘knowledge based’ activities. These include: - Home based knowledge workers such as consultants, lawyers, etc.; - Specialist personal, household or business service providers; and - High tech service industries (e.g. call centres). • These identified opportunities reflect Livingstone Shire’s ‘place’ in the regional context. They also acknowledge a balance between the need to capitalise on traditional strengths or drivers in new and innovative ways (e.g. value added manufacturing) while embracing new opportunities that build on emerging trends and needs (e.g. tourism, home-based business development and retail). SGS Economics and Planning Pty Ltd Page ii Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary Recommendations Livingstone Shire for Business and Industry in Priorities for Business and Industry in Livingstone Shire • Consideration the Livingstone Shire’s lifestyle requirements, coupled with an understanding of its ‘place’ in the regional economy, determined the need to identify those business and industry activities that can support the development of a diverse and robust local economy. The following business and industry priorities have been identified for the Livingstone Shire: - IT Service Industry. - Knowledge-driven Home-based Business Activity. - Tourist accommodation. - Higher order business and technical services to mining, manufacturing and agriculture. - Education and related services. • Although they do not ‘drive’ the local economy, community services such as retailing, general service industry and health, which are driven largely by the size and needs of the local population, remain important to the economic development of Livingstone Shire. To this end, these secondary sectors of economic activity provide further opportunities for future business and industry development. Key Recommendations Retail • The supply and demand for district level retail floorspace is in broad balance in Livingstone Shire at the present time (i.e. 2001), based upon data from the ABS Household Expenditure Survey, the ABS Retail Census and population data. • Population forecasts, which have been sourced from the Queensland Planning and Information Forecasting Unit (PIFU) suggest that Yeppoon will be able to support an additional 8,000 sqm of retail floorspace by about 2014. This could comprise a full line supermarket (e.g. a 5,000 sqm Coles or Woolworths) plus 30 specialty shops. Using data on household expenditure and population growth, and based on assumptions about retail expenditure capture suggest that the trigger point for a new supermarket will be in about 8 years from now (i.e. 2009/10). • It is unlikely that a full line discount department store (e.g. a Big W, Kmart or Target of approx. 7,500 sqm) could be supported in Yeppoon within a 14-year horizon. However, a smaller version may be a possibility. SGS Economics and Planning Pty Ltd Page iii Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary • The original scoping study proposed the reservation of a 30 hectare parcel of land adjacent to Area B for the establishment of a new supermarket by around 2003. However, using revised population forecasts from PIFU, and considering the current retail floorspace needs of the area, it is advised that the reservation of land for the development of a full-line supermarket in the next few years (i.e. by 2003) is not warranted. To this end, the proposed 30-hectare parcel of land at the intersection of Tanby Road and Taranganba Road should not be designated in Livingstone’s new planning scheme for the purpose of anticipated retail development. However, this land would be suitable for the location of an IT service centre/ call centre facility or similar low impact business and industry (for the life of the IPA planning scheme under preparation). • The development of a supermarket or discount department store to the south of Area B, at the intersection of Tanby Road and the future east-west arterial should not be considered in the short to medium-term, but rather, the long-term. Education • A parcel of land on the north-eastern corner of Tanby Road and Taranganba Road has been previously nominated as the site for a future high school. Based on discussions with Education Queensland and an analysis of population forecasts provided by PIFU, it can safely be assumed that the Livingstone Shire will require an additional primary school and a high school in the medium to long-term (i.e. 15 years). • While a detailed consideration of alternative sites would be required as part of a full needs assessment, it is likely that a future school facility would be most appropriately located close to residential convenience in the Yeppoon/ Taranganba area. • It is recommended that the parcel of land on the north-eastern corner of Tanby Road and Taranganba Road be reserved as Special Purpose to accommodate a secondary or P-12 school in the medium term (15 years). Business and Industry - Area A (Pineapple Patch) • Area A is located south-west of Yeppoon on the Yeppoon road. Approximately 436 hectares in area and triangular in shape, the site is removed from the established urban area of Yeppoon with rural and semi-rural uses to the south and east. Land to the immediate north-western boundary has varied uses including residential and rural residential subdivision, a small industrial estate and Council landfill site. A sewerage treatment plant is also planned immediately adjacent to the north-west of the site. • The topography of the Pineapple Patch site, and its distance from the established urban areas of Yeppoon, makes the area conducive to land extensive industrial development. The most appropriate development zone is in the west and southwest of the site, away from the site’s eastern slopes, which are visible from the coast. SGS Economics and Planning Pty Ltd Page iv Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary • The types of medium to heavy industrial activities that would be appropriate to the Pineapple Patch site include: - Mining and Agricultural Machinery and Equipment Manufacturing and Repairs. - Technical Services to Mining (R&D, ore testing, exploration field support). - Small-scale Fruit Processing. - Transport, Storage and Distribution. - Small-scale/ Niche Timber Processing and Value Adding (e.g. furniture manufacture). • These uses would be compatible with nearby industrial land uses to the south and west of Area A. • Before any development proceeds on the site, essential infrastructure would need to be provided. If it does proceed, heavy industrial development would need to address potential visual impacts on the Yeppoon Road. • The development of light or medium industry in Area A would be a longer-term proposition, given the site’s removal from the established urban area of Yeppoon and the lack of infrastructure. • It is recommended that at this point in time, Area A should not be designated for industrial purposes. However, the potential for medium to long-term development (15 – 20 years) suggests that, while the existing rural zoning should remain, the site should be considered for future industrial development of an acceptable nature. Business and Industry - Area B (Taranganba/ Tanby Road) • Area B covers 322 hectares and consists of one large parcel fronting Taranganba Road and a smaller parcel fronting Tanby Road. The site’s northern and northeastern boundaries abut established urban development. Land to the east is largely undeveloped but has an eastern aspect overlooking the ocean. The site's western boundary abuts a number of 10 hectare rural residential lots along Tanby Road. Land to the south is largely undeveloped. • The location of Area B, as the natural extension of urban development from the immediate north makes it unsuitable for heavy industrial development. Poor transport access to the south of the site and visual impacts along the eastern boundary also detract from this type of development. • The northern portion of Area B, close to established residential development and associated community facilities (education, open space), makes it well suited for light business/ commercial development to serve the local population (i.e. a district integrated employment centre serving the needs of Yeppoon and the shire population). • Population projections for the Livingstone Shire, a third of which is expected in the Yeppoon district, supports the concept of Area B serving as a natural extension to residential development from the north and north-east. The retail analysis undertaken as part of this review shows that, at present, retail demand SGS Economics and Planning Pty Ltd Page v Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary and supply is in balance. For this reason, the proposal to reserve a parcel of land adjacent to Area B for retail development is rejected. • Nevertheless, this area is suitable for low impact, light, high tech service industry such as an information technology (IT) service centre/ call centre. Other activities that are consistent with this concept include tertiary education facilities such as student accommodation, research facilities and business incubation facilities. • Short-term (hotel/ motel) accommodation would also be suitable to the Taranganba/ Tanby Road industry node. These facilities could be integrated with education and research activities in this precinct as well as providing accommodation for short-stay tourists to the Capricorn Coast. • The opportunity to secure the low lying land in the northern portion of Area B for recreational use, as put forward in the original scoping study, is supported. • Further, as suggested earlier, it is recommended that the parcel of land on the north-western corner of Tanby Road and Taranganba Road be reserved to accommodate a secondary or P-12 school in the medium term (15 years). There is potential for this area to develop as a technology and education precinct. Business and Industry - Area C (Emu Park) • Area C at Emu Park covers 113 hectares and is separated from the established town of Emu Park by the town’s airstrip. The site comprises the former Department of Lands subdivision of ten industrial allotments, three of which are occupied by service/ light industrial activities. The site is unserviced with reticulated water and sewerage infrastructure or internal sealed roads. Livingstone Shire Council owns some of the allotments in Area C. The sewerage treatment plant, golf course, cemetery and wetlands to the south of the site preclude urban development. The northern portion of the site is also precluded from intensive urban development due to an extensive wetland area. • There is an identified need for designated land for the current and future general service industry requirements of the population of Emu Park. • Future light industrial development should be encouraged to consolidate around the existing precinct at Emu Park through Council’s statutory planning mechanisms. It is recommended that Council invest in the provision of basic infrastructure (water, sewerage and power) to the Emu Park industry precinct. • Investment in the Emu Park site’s internal road network is also required. Coupled with appropriate directional signage, this will improve access to and people’s awareness of the precinct. An infrastructure charge under the Integrated Planning Act would help to recoup Council’s cost of infrastructure provision. • According to the original scoping study, the rifle range in the eastern portion of Area C was previously mooted for industrial development. However, it was decided by Council not to proceed as the site is highly visible from the Emu Park SGS Economics and Planning Pty Ltd Page vi Livingstone Shire Council Review of the Business/ Industry Scoping Study – Executive Summary Road. It also abuts residential development to the west. Instead, it is recommended that a suitable portion of land on the former rifle range site be established as a dedicated recreational reserve/ open space, so that it provides a buffer between the industrial estate and residential development to the west as well as adding to the shire’s recreational assets. • It is recommended that the airstrip located in Area C be maintained as Special Purpose land in its current use until future industrial development (in the medium to long-term) warrants potential relocation of the airstrip and upgrading of the land to accommodate such industrial activity. SGS Economics and Planning Pty Ltd Page vii Review of the Business/ Industry Scoping Study 1. Study Background and Rationale 1.1 Study Background In 1997, Livingstone Shire Council commissioned the preparation of a Business/Industry Scoping Study for the Livingstone Shire. Following its completion, the study was amended in 1998. It is the view of Livingstone Shire Council that a review of the Scoping Study is necessary to reflect recent changes to the business and industry sectors in the Fitzroy Region, and the intentions of Council’s new IPA Planning Scheme, as indicated in the recently released Statement of Proposals. 1.2 A Vision for Livingstone Shire The original Livingstone Shire Business/ Industry Scoping Study responded to Livingstone Shire Council’s Mission Statement and its vision for the economic development of the shire. Essentially, this entails a desire to maintain Livingstone Shire’s high quality natural environment and its lifestyle attributes, while accommodating a variety of small, environmentally acceptable industries establishing in appropriate locations into the future.1 It is acknowledged in the original Scoping Study that Livingstone Shire’s major sectors of employment will continue to be agriculture, mining, education, health services, tourism, retailing and construction. Council’s vision is for a robust local economy, which can overcome local variations in climate, commodity prices, tourist seasons and other external influences. The stated purpose of the original study was to identify new business and industry opportunities in the shire, and earmark adequate reserves of land in appropriate locations that can be readily serviced for the future establishment of such industries. Further to looking at trends and opportunities for business and industry development in Livingstone Shire in broad terms, the original Scoping Study investigated three specific areas or potential industry nodes. These are: Area A: Area B: Area C: 1 The Pineapple Patch site in West Yeppoon/ Bondoola (436 hectares) In Taranganba near the intersection of Taranganba Road and Tanby Road (322 hectares) Land including a former rifle range and existing industrial lots at Emu Park (113 hectares) Livingstone Shire Council’s vision for business and industry in the shire as well as land use planning issues that have been raised during the new Planning Scheme consultation process, are presented in Appendix B. SGS Economics and Planning Pty Ltd Page 1 Review of the Business/ Industry Scoping Study The three areas are illustrated in Figure 1 of this Review. A brief description of each site is provided in Boxes 1, 2 and 3. 1.3 Purpose of this Review In commissioning this review of the Business/ Industry Scoping Study, it was considered by Livingstone Shire Council that the following tasks are necessary: 1. Review the Livingstone Shire Business/ Industry Scoping Study as a supplementary report and inclusion of the following topics: (a) Discussion of current trends in business activity in the Fitzroy region including the impacts of Rockhampton and Gladstone. (b) Provide a commentary on business or industry opportunities that can complement established sectors in Rockhampton, Gladstone and the Fitzroy region. (c) In conjunction with (b) and (c), assess the mix of business and industry best suited for the Capricorn Coast. For example, small and micro businesses and industries, strong research and development and/or IT development sectors or traditional manufacturing enterprises. Consideration should be given to the benefits of Capricorn Coast lifestyle, higher environmental quality in air and water, proximity to Central Queensland University and the emergence of telecommuting and e-commerce. 2. Review the currency and adequacy of Study Areas A, B and C identified in the Business/ Industry Scoping Study dated October 1997. 3. Provide commentary on: • Relocation of the business/industry node to Taranganba Road (intersection with Tanby Road) adjacent to Area B, as the location around the Taranganba/Tanby Road intersection is likely to complement future urban growth south from Taranganba and west of Lammermoor. The nominated business/industry node on Tanby Road referred to in the Business/ Industry Scoping Study report is removed from residential convenience and service in the medium to long term. • Review of all business/industry nodes in terms of location and area. • The difference between the requirements of Emu Park and Yeppoon business/industry sectors. This review has been framed to meet the requirements of Livingstone Shire Council as stated above. SGS Economics and Planning Pty Ltd Page 2 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 1: Business/ Industry Scoping Study Areas SGS Economics and Planning Pty Ltd Page 3 Review of the Business/ Industry Scoping Study Box 1: Site Description, Area A (Pineapple Patch, West Yeppoon) Area A, located south-west of Yeppoon on the Yeppoon arterial road, is also widely known as the Pineapple Patch site. The site consists of six parcels of land in separate (freehold) ownership. Comprising two working pineapple farms, the site is 436.18 hectares in area, triangular in shape and characterised by gentle slopes generally less than 5%, except for the eastern escarpment, which drops steeply down to the coastal plain and foothills. (Details on individual allotments are provided in Appendix F). The site is removed from the established urban area of Yeppoon with rural and semirural uses to the south and east. Land to the immediate north-western boundary has varied uses including residential and rural residential subdivision, a small industrial estate and Council landfill site. A sewerage treatment plant is also planned immediately adjacent to the north-west. Source: Livingstone Shire Industry/Business Scoping Study (p.36), prepared by Urban Strategies et al. February 1998. Box 2: Site Description, Area B (Taranganba/ Tanby Road) Area B, covering 322.25 hectares, consists of one large (300 hectare) parcel fronting Taranganba Road and two smaller parcels of approximately 10 hectares each, one fronting Taranganba Road and the other fronting Tanby Road. The site’s northern and north-eastern boundaries abut established urban development. Land to the east is largely undeveloped but has an eastern aspect overlooking the ocean. The site's western boundary abuts a number of 10 hectare rural residential lots along Tanby Road. Land to the south is largely undeveloped. (Details on individual allotments are provided in Appendix F). Source: Livingstone Shire Industry/Business Scoping Study (p.41), prepared by Urban Strategies et al. February 1998. Box 3: Site Description, Area C (Emu Park Industrial Area) Area C, covering 112.83 hectares, is separated from the established town of Emu Park by the town’s air strip. The site comprises the former Department of Lands subdivision of ten industrial allotments, three of which are occupied by service/ light industrial activities. Livingstone Shire Council owns some of the allotments in Area C. (Details on individual allotments are provided in Appendix F). Area C is unserviced with reticulated water and sewerage infrastructure or internal sealed roads. The sewerage treatment plant, golf course, cemetery and wetlands to the south of the site preclude urban development. The northern portion of the site is also precluded from intensive urban development due to an extensive wetland area. Source: Livingstone Shire Industry/Business Scoping Study (p.45), prepared by Urban Strategies et al. February 1998. SGS Economics and Planning Pty Ltd Page 4 Review of the Business/ Industry Scoping Study 1.4 Establishing Livingstone’s Strengths and Opportunities for Business and Industry 1.4.1 The Need for a Regional Perspective Australia’s cities, regions and towns operate in the context of a constantly changing economic landscape. An increasingly ‘globalised’ and competitive economy has led to greater competition for business investment and jobs, not just between different nations or states, but between different localities within the same state or even in the same city or region. For areas such as the Livingstone Shire, sustainable business and industry development (and jobs) depends heavily on the capacity of the local economy to tap in to regional, State and national chains of economic activity. To this end, Livingstone Shire must firstly identify and then build on its business and industry strengths, concentrating its economic resources in those sectors of greatest strategic competitive advantage. By taking a regional perspective on development trends, attributes and constraints, local opportunities for industrial development that display a competitive advantage can be identified. Hence, the identification of opportunities for business and industry in Livingstone Shire must give due consideration to the wider regional context and the Livingstone Shire economy’s ‘place’ in the Fitzroy and Central Queensland regions. 1.4.2 Building on the ‘Drivers’ of Local Economic Activity Livingstone Shire Council’s vision is for a robust local economy that can overcome variations in climate, commodity prices, tourist seasons and other external influences. In order to realise this objective, it is critical that economic resources be directed to those areas that are likely to provide the greatest return, in terms of business investment and jobs. As will be shown in subsequent sections of this report, Livingstone Shire’s traditional sectors of employment are those that utilise the wealth of natural resources in the region. This includes agriculture, in particular beef and timber, as well as mining and associated activities, namely mineral product manufacturing. These sectors represent the drivers of economic activity and employment in that they are based on the existence of a local competitive strength (an extensive natural resource base) that can’t be easily replicated elsewhere, and they generate (ex-regional) export income for the region. SGS Economics and Planning Pty Ltd Page 5 Review of the Business/ Industry Scoping Study Despite recent declines in these traditional sectors, not only locally but across Australia, they remain critical to the economic future of Livingstone Shire and the wider region. Notwithstanding a changing economic landscape characterised by reduced trade barriers, greater international competition and industry rationalisation, a transition towards higher order, higher value output in these sectors through innovation and improved production methods ensures that there are opportunities to capitalise further on these drivers of economic activity. This is already evident by the wealth of investment in metal product and other manufacturing activities in the region. Associated with this is the continued growth of those secondary sectors of activity that feed off and build on the economic drivers. This includes transport, warehousing and distribution activities and business services. There are also other more recent opportunities for business and industry growth in the Livingstone Shire. Local tourism is based on the natural beauty of the Capricorn Coast and the capacity to accommodate visitors to the region. Tourism also offers the potential to increase the region’s export income by attracting visitors to stay and spend money in the region. Efforts to build on the Livingstone Shire’s traditional employers should be balanced against emerging opportunities in tourism and associated activities. This will serve to support Livingstone Shire Council’s objective of encouraging a robust and diverse local economy. There are also opportunities to serve the population that grows along with the development of the region’s drivers of industry and wealth. In a regional context, Livingstone Shire and the Capricorn Coast is a residential haven for people working in Rockhampton and other parts of the region. The appeal of Yeppoon, Emu Park and other local settlements for their lifestyle and ‘livability’ factors means that a growing population must be catered for with adequate services, namely retail, health, education and construction. While these sectors on their own do not drive the local economy, continued population growth provides continuing opportunity (and need) for new business investment in these sectors. SGS Economics and Planning Pty Ltd Page 6 Review of the Business/ Industry Scoping Study 2. The National and Global Economic Context The identification of opportunities for business and industry in Livingstone Shire will be aided by an understanding of broader (national and global) economic trends and influences. By developing an understanding of the broader economic trends that influence the local economy, Livingstone Shire Council is better placed to identify and understand those sectors of activity that represent local advantage and opportunity for the future. This way, in its role as a facilitator of local economic development, Livingstone Shire Council will be better placed to encourage or facilitate those business and industry activities that serve to diversify and drive economic activity, and which create the greatest opportunity for employment growth. The following sections describe those national and global economic trends that need to be considered as part of the identification of business and industry opportunities for the Livingstone Shire. Those trends that are particularly relevant to Livingstone Shire/ the Capricorn Coast, the wider Rockhampton sub-region, the Fitzroy region and Central Queensland are identified below. 2.1 The Agricultural Sector Decline Declining commodity prices, a reduction in trade barriers and falling terms of trade for Australia’s agricultural produce have weakened the viability of many agricultural enterprises. As shown in the chart below, Australia’s farmers have had to continuously adjust to adverse trends in their terms of trade (that is, the price received for their product compared to the prices they pay for their inputs). While there have been periodic improvements in the prices faced by Australia’s farmers, the overall trend has been downward for the past four decades. SGS Economics and Planning Pty Ltd Page 7 Review of the Business/ Industry Scoping Study Figure 2: Farmers’ Terms of Trade in Australia, 1953/54 to 1996/97 Terms of Trade (Base:1987-88=100) 250 200 150 100 50 Year Source: Australian Commodity Statistics 1997, ABARE In order to survive and prosper, Australia’s farmers have had to look for new opportunities and new markets through diversification, and by adding value to their existing products. 2.2 The Growth in Transformative, Value Added Industrial Activities Expanded global demand for consumer goods, and the need for countries to enhance their competitiveness by modernising their economies through technological advancement, has increased the value of ‘transformative’ and ‘knowledge based’ industries. Transformative industries are those that ‘add value’ to raw materials by adapting or transforming them into useable products. ‘Knowledge based industries’ often provide inputs to transformative industries, and include education, research and development and business consulting activities (e.g. teaching services, computer software development, technical business services, etc.). These services will locate in proximity to the industrial activities they support (e.g. providers of mining services such ore testers, geologists, etc. would likely locate in a town or regional centres in close proximity to the extractive industries). SGS Economics and Planning Pty Ltd Page 8 1996-97 1995-96 1994-95 1993-94 1992-93 1991-92 1990-91 1989-90 1988-89 1987-88 1986-87 1985-86 1984-85 1983-84 1982-83 1981-82 1980-81 1979-80 1978-79 1977-78 1976-77 1975-76 1974-75 1973-74 1972-73 1971-72 1970-71 1969-70 1968-69 1967-68 1966-67 1965-66 1964-65 1963-64 1962-63 1961-62 1960-61 1959-60 1958-59 1957-58 1956-57 1955-56 1954-55 1953-54 0 Review of the Business/ Industry Scoping Study However, many of the knowledge-based workers such as consultants are relatively footloose. Their locational decision making will be largely influenced by the lifestyle attributes a region or locality can offer. 2.3 The Recognised Importance of Import Replacement As a means of contributing to the prosperity and growth of a local economy, replacing currently imported goods and services used as business inputs with local alternatives is equally as important as expanding exports. Purchasing business inputs from outside the region or locale is a direct leakage of local expenditure. Strategies of import replacement therefore, need to be developed in order to stem this leakage and develop a broader base to the regional economy. Apart from contributing to expenditure leakages, business inputs purchased from outside the region rather than from local suppliers, means less employment opportunities within the local area. It has been suggested that for every $1 million of imported manufactured inputs replaced by local suppliers, approximately 40 jobs are created in a local area. It can be seen then, that import replacement is an important job creation strategy. 2.4 The Growth in Elaborately Transformed Manufactures (ETMs) In the ten years to 1998, the value of Australia’s manufactured exports more than doubled from $39 billion to $83 billion (source: Department of Foreign Affairs and Trade, “Exports of Primary and Manufactured Products”, 1999). This can be largely attributed to the growing importance of elaborately transformed manufactures (ETMs) as an export earner. ETMs include mineral manufactures and metals, chemicals and other semimanufactures, engineering products and other products such as electronic and photographic equipment. During the last ten years, Australia’s ETM exports have increased in value by some 16% per annum, from $4.3 billion in 1987/88 (in current dollars) to $16.2 billion in 1997/98. By comparison, exports of simply transformed manufactures and primary products increased in value by 6% per annum respectively over the same period (source: Department of Foreign Affairs and Trade, “Exports of Primary and Manufactured Products”). SGS Economics and Planning Pty Ltd Page 9 Review of the Business/ Industry Scoping Study Figure 3: Australia’s Manufactured Exports (AUD $m), 1987-88 to 1997/98 $18,000 $16,000 Simply Transformed Manufactures Export Value (1997/98$m) $14,000 Elaborately Transformed Manufactures $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 Year Source: Department of Foreign Affairs and Trade, “Exports of Primary and Manufactured Products”, 1999 It is these high value ETM sectors that provide substantial opportunities for growth. For areas with an established heavy industrial base, such as the Rockhampton and Gladstone regions, ETMs represent an opportunity to value add locally before products are sold/ distributed outside the region. 2.5 New Production Technologies Changing Skill Requirements and The development of new production technologies in many industries has led to a decrease in the demand for labour in the workplace. Accompanying this labour shedding is the rise of more capital and knowledge intensive techniques and industries. As a result, those with a lack of skills or redundant skills have difficulty being usefully placed in the economy. Despite this trend, labour remains a key production input. Of particular importance, is the ability of the local workforce to respond effectively to changing economic circumstances. By contributing to the value and volume of output in an economy, an appropriately skilled workforce, who can respond to both the existing and future needs of industry, ensures that SGS Economics and Planning Pty Ltd Page 10 Review of the Business/ Industry Scoping Study unemployment is minimised. Responsive education and training is critical in this regard; constant re-skilling of the workforce will become the norm in the future. 2.6 A Rise in Service Sector Activity Both domestic and international trade in services is growing rapidly. This includes financial and business services, and community and personal services, including education, recreation, leisure and entertainment (RLE) and tourism. According to the World Bank, world service exports have more than tripled from US$392 billion in 1980 to $1.4 trillion in 1997 (source: World Bank, “1999 World Development Indicators”). This has been accompanied by a rise in employment in the growing service sectors (while the reliance on routine or manual labour continues to decline). In the ten years to 1995/96, Australia’s external trade in services (exports and imports) increased from around 20% of total trade in goods and services to 23% (source: Department of Foreign Affairs and Trade, “Trade in Services”, 1999). Figure 4: Average Annual Growth in Australia’s Service Exports by Type, 1985/86 – 1995/96 Service Export Type Other Services Other Transportation Shipment Travel 0% 2% 4% 6% 8% 10% 12% Average Annual Change Source: Department of Foreign Affairs and Trade, “Trade in Services”, 1999 As shown in the chart above, the greatest increase in Australia’s service exports has been in travel services. Transportation SGS Economics and Planning Pty Ltd Page 11 Review of the Business/ Industry Scoping Study services also account for a significant proportion of the growth in internationally traded services. This helps to highlight the growing opportunities for tourism in Australia’s regions and capital cities. This is particularly relevant to areas such as the Capricorn Coast. 2.7 Advances in Communications Information Technology & Improved access to more affordable information and communications technology has supported changing work practices and the lifestyle opportunities this presents for both the employed and self-employed. This factor, in conjunction with the need (or opportunity) for greater worker flexibility in many occupations, has increased the incidence of ‘telecommuting’ and ‘teleworking’, and the emergence of home based businesses and occupations. For those looking to establish a home-based occupation, important considerations include lifestyle/ amenity, appropriate infrastructure (particularly communications and information technology) and access to household and business services (i.e. ‘livability’ factors). 2.8 Supply Chain (Production) Leakages While the capacity to generate more export income for the regional economy has improved dramatically with globalisation, local production linkages have tended to fall away for precisely the same reasons. Inter-regional exporters can and must source their inputs on the most competitive basis. Technological changes and new business models mean they can compare offerings on an international basis if they wish. They can, and increasingly do, source key inputs from inter-regional metropolitan centres even if the inputs they seek can be supplied locally. 2.9 Greater Competition Investment for Business National and international capital is relatively footloose and continually seeking investment sites. In order to attract potential capital investment, Australia’s economic conditions must be favourable. Not only must Australia present a favourable institutional environment through effective government policies SGS Economics and Planning Pty Ltd Page 12 Review of the Business/ Industry Scoping Study to encourage these conditions, but it must also provide the infrastructure necessary to minimise costs and maximise benefits to potential investors. Establishing and maintaining a conducive investment environment is not only important for the Commonwealth and State Governments seeking to attract the regional headquarters of a major multinational corporation. It also applies to local governments and regional agencies trying to boost or diversify their business and industry base. This does not necessarily refer to attempts to attract the ‘next big winner’ through financial and other incentives. What is does require however, are efforts to develop the capacity of the local area or region to accommodate new business investment. Appropriate activities, that can (and in many cases should) be led by local government include the provision of information and advisory services, marketing and promotion of the area and efficient development approvals processes. 2.10 The Rise of the ‘Enterprise Household’ The greater premium on knowledge in the new, global economy and the rise in new, flexible forms of employment has given rise to the ‘enterprise household’. These are individuals and families that are operating as businesses in their own right, maintaining a diversified portfolio of income generating activities and engaging in deliberative skills planning and networking on behalf of themselves and household members. They consist of the ‘knowledge workers’ referred to earlier. For local governments and regional development agencies, the attraction and retention of these households is as crucial to local economic development as mainstream (business) investment recruitment campaigns. These households not only bring the skills, which are vital to successful inter-regional exports, they also bring connections and ideas. 2.11 The Importance of Lifestyle and Livability A more open global economy and greater competition for investment presents Australia’s regions and locales with new opportunities to export their goods and services to other regions around Australia and around the world. However, it also opens regions up to the threat of competition from imports resulting in a leakage of production linked multipliers as exporters source their inputs on the most competitive basis from anywhere in the world, not just locally. Because of this, the capture of consumption expenditure (as opposed to production expenditure) has assumed much greater significance in local SGS Economics and Planning Pty Ltd Page 13 Review of the Business/ Industry Scoping Study economic development. It is now vital to create distinctive ‘places’ which offer a depth of leisure, cultural and educational pursuits, which we can sum up as the ‘cafe’ society. These ingredients are also vital to the attraction and retention of enterprise households. As well as retaining as much as possible of local consumption expenditure, a key challenge to regions is to ‘import’ consumption spending through tourism. SGS Economics and Planning Pty Ltd Page 14 Review of the Business/ Industry Scoping Study 3. Regional Considerations – Central Queensland 3.1 An Overview of the Central Queensland Economy Livingstone Shire is part of the Central Queensland region of Australia. The current regional planning project for Central Queensland, CQ A New Millennium, defines the Central Queensland region as consisting of the following Local Government Areas: Banana Fitzroy Taroom Bauhinia Gladstone Mt. Morgan Calliope Jericho Emerald Woorabinda Duaringa Livingstone Rockhampton Peak Downs A map of the Central Queensland region is provided in Figures 5 and 6 overleaf. Central Queensland comprises an area of approximately 142,000 square kilometres or 8.2% of the total area of Queensland. The region has an estimated resident population of 183,800 or 5% of the Queensland population (ABS, June 1999). Economic activity in Central Queensland is based largely on extractive industries (notably coal, alumina, magnesite and limestone) and associated manufacturing and processing activities. Despite experiencing some relative decline in recent years, agriculture, such as cotton, cattle, grains and fruit production, remains a substantial contributor to the Central Queensland economy. Other sectors of economic activity that are closely related to these include power generation and transport, warehousing and distribution. Other activities that feed off the wealth generated by these sectors, and which serve the needs of the region’s population include retailing, business services, health and education. Retail trade remains the largest provider of jobs in Central Queensland. There is some tourism activity in the region, focussed on the coastline and nearby islands. However there is also some inland tourism activity with agri-tourism and cultural tourism attractions scattered throughout Central Queensland. A summary of Central Queensland’s key sectors of economic activity is provided below. SGS Economics and Planning Pty Ltd Page 15 Review of the Business/ Industry Scoping Study Figure 5: The Central Queensland Region Source: Australian Tourism Net (www.atn.com.au) Figure 6: Central Queensland by Local Government Area Source: Australian Bureau of Statistics SGS Economics and Planning Pty Ltd Page 16 Review of the Business/ Industry Scoping Study Mineral Resources • • • • • Coal - the producer of 38 percent value and 43 percent quantity of Queensland’s coal in 1998-99 (OESR, Regional Profile: Fitzroy June 2000). Limestone - the producer of 36 percent value and 89 percent quantity of Queensland’s limestone in 1998-99 (OESR., Regional Profile: Fitzroy June 2000). Magnesite - the world’s largest and purest deposits of magnesite are located in the Livingstone Shire, which accounted for 100 percent value and 100 percent quantity of Queensland’s production in 1998-99 (OESR, Regional Profile: Fitzroy June 2000). Oil Shale - a large quantity oil shale (a resource of 14.5 billion barrels in eight deposits within the region) from which high quality, low sulphur shale oil can be produced. Salt - the largest salt producer in Queensland, which accounted for 100 percent value and 100 percent quantity of Queensland’s production in 1998-99 (OESR, Regional Profile: Fitzroy June 2000). Metal and Non-metallic Mineral Product Manufacturing • • • Alumina/ aluminium - the world’s largest alumina refinery is located in Gladstone. Australia’s largest aluminium smelter (and the fourth largest in the world), also located in Gladstone. Cement - Queensland’s largest cement manufacturer. Power Generation • Central Queensland houses the largest independent power producer in Australia. Transport, Warehousing and Distribution • Queensland’s largest multi-cargo port and the fourth largest coal port in the world. Agriculture • • Fruit Production - the largest citrus plantation in the Southern Hemisphere. Beef – Central Queensland is the largest beef producing region in Queensland, comprising 21 percent of Queensland’s cattle herd (Agstats 1999). The region is also a significant contributor to the meat processing industry. SGS Economics and Planning Pty Ltd Page 17 Review of the Business/ Industry Scoping Study • Cotton – Central Queensland produces 14 percent of the value of Queensland’s cotton (ABS, Trade Data 1999, unpublished). Education and Research • Central Queensland is home to the largest Tropical University in Australia – Central Queensland University (CQU) in Rockhampton. CQU is the fastest growing university in Australia and has the second highest number of international students in Australia. Tourism The tourism industry is well distributed throughout Central Queensland, with the focus of activity along the coast. There is also significant tourism activity inland with agri-tourism and cultural tourism attractions scattered throughout the region. Around $49 million was spent on tourist accommodation in the Fitzroy region in 1999, representing almost 5% of Queensland’s accommodation earnings in that year. Rockhampton City and Livingstone Shire contributed $28 million or 3% of Queensland’s tourist accommodation earnings, representing 57% of the Fitzroy region’s takings (CQANM, 2001). The current regional planning project, CQ A New Millennium, reports a number of current or planned tourism projects in Central Queensland. Naturally, a number of these developments are located on the Capricorn Coast. These include: • • • • • • The $25 million Monte Cristo Resort on Curtis Island (stage one). The $100 million expansion of Rosslyn Bay Inn resort. The $300 to $500 million Great Barrier Reef International Resort and Golf Course. The $8 million tavern and motel complex at Taranganba. The $21 million redevelopment of Yeppoon’s main beach. The Rydges resort development in Yeppoon. (Source: CQ A New Millennium, “Economic Development Technical Paper”, May 2001, pp.19-20) SGS Economics and Planning Pty Ltd Page 18 Review of the Business/ Industry Scoping Study 3.2 Livingstone, the Rockhampton Subregion, the Fitzroy Region and Central Queensland Sustainable business and industry development in Livingstone Shire and the Capricorn Coast depends largely on the capacity of the local economy to tap in to regional supply chains. That is, we must identify Livingstone’s ‘place’ in the wider regional context so that opportunities can be maximised. Livingstone Shire is immediately affected by trends, developments and prospects in what can be termed the Rockhampton sub-region. This sub-region is part of the Fitzroy region that excludes the Gladstone area. By definition, the Rockhampton sub-region includes the local government areas of Rockhampton, Fitzroy, Mt. Morgan and Livingstone. A map highlighting the Fitzroy Region (Statistical Division) is provided in Figure 7. A map highlighting the Rockhampton sub-region is shown in Figure 8. There are numerous opportunities to tap in to current and planned developments within the wider Rockhampton subregion’s key sectors of output and employment. However, to ensure that the Rockhampton sub-region’s competitive strengths are understood, it is necessary to know the profile of Central Queensland in general. This will help to reveal the level of competition from those areas for business investment and resources. It will also help to identify where Livingstone Shire best fits in to the regional/ national supply chain in order to capitalise on opportunities for growth. SGS Economics and Planning Pty Ltd Page 19 Review of the Business/ Industry Scoping Study Figure 7: The Fitzroy Region (Statistical Division) Source: Australian Bureau of Statistics Figure 8: The Rockhampton Sub-region Source: Australian Bureau of Statistics SGS Economics and Planning Pty Ltd Page 20 Review of the Business/ Industry Scoping Study 3.3 The Central Compared Queensland Sub-regions Major developments throughout Central Queensland will have a bearing on the level of priority attributed to particular opportunities that are identified for Livingstone Shire and its business/industry precincts. The following sub-sections provide an overview of the key features of the Rockhampton sub-region and Central Queensland’s other centres of business and industry. As part of this study, a more detailed review of current and planned industrial developments that are occurring in these areas was also undertaken. This information, which is current as of November 2001, is provided in Appendix C. 3.3.1 The Gladstone Area Gladstone is a centre of heavy industrial activity in Central Queensland. Industrial activities include aluminium smelting Boyne Smelters Limited operates a major smelter at Boyne Island in the Port of Gladstone. The smelter produces 490,000 tonnes per annum. The world’s largest alumina refinery is also located at the Port of Gladstone and it produces 3.5Mt per annum. Chemicals processing is also strong in Gladstone. Orica Australia Pty Ltd produces sodium cyanide and liquid cyanide for use in gold extraction, chlorine for water treatment and nitric acid for the production of ammonium nitrate. Ticor Chemical Company Pty Ltd produces sodium cyanide and caustic soda. Queensland Cement Limited produces over 1.6 million tonnes per annum of clinker and cement from locally sourced limestone. 3.3.2 The Emerald Area Emerald’s economy is diverse, with operations in mining (coal and gemstones), cotton, grains, cattle and citrus fruits. The area serves a number of coal mines in the Bowen Basin, including the Gregory, Crinum, Gordonstone and Ensham mines. Sapphire gemstones are commercially mined in the region for sale in the domestic and overseas markets. The industry also attracts a significant number of tourists each year. Cotton is Emerald’s traditional mainstay industry based on largescale broadacre irrigated farming. However, in recent years, Emerald’s citrus fruit growing industry has grown steadily, SGS Economics and Planning Pty Ltd Page 21 Review of the Business/ Industry Scoping Study producing significant quantities of mandarins, oranges, lemons and lime fruit for sale in the domestic and international markets. Fresh fruit is exported via ship through Sydney and Gladstone. 3.3.3 The Mackay Area Industrial activity in Mackay is characterised by the large-scale coal reserves of the Bowen Basin and the extensive areas of shale oil and large reserves of natural gas. There has been significant expenditure and commitment to expenditure on infrastructure in the Mackay area in recent years, including rail network improvements and development of the Mackay Port (see Appendix D). 3.3.4 The Rockhampton Area There has been significant expenditure and commitment to expenditure on strategic infrastructure in the Rockhampton subregion’s key sectors of economic activity. As evident from the following list of projects, Rockhampton is a major service hub for industrial activity throughout the wider region, with much of the recent and planned activity focussed on transport, warehousing and distribution, education, R&D and community services. Substantial investments in major metal product processing activities are also planned for the Rockhampton area. Due to its proximity, these developments perhaps have the most significant implications for business and industry development in the Shire of Livingstone. SGS Economics and Planning Pty Ltd Page 22 Review of the Business/ Industry Scoping Study 4. The Livingstone Economy in the Subregional and Regional Context 4.1 Livingstone Shire As highlighted in previous sections of this report, opportunities for business and industry growth in the Shire of Livingstone lie in the area’s ability to link into, build on and feed off the existing industrial base of the wider region. That is, Livingstone must confirm and then pursue its place in the regional economy. Livingstone Shire is predominantly a service sector economy. The strength of the area’s retail trade and other service sectors is based on the shire’s high and continuing rate of population growth. This in turn, is based on the employment opportunities provided locally and in the wider region and the appeal of the Capricorn Coast as a place to live for those people working in the wider region (i.e. Rockhampton). The retailers and service providers located in Yeppoon and Emu Park rely heavily on the custom of local residents, many of whom are employed in Rockhampton. A profile of employment by industry sector in Livingstone Shire is illustrated in Figure 9. Retail Trade accounts for the largest share of employment in the Livingstone Shire, with 13% of employed persons. Other major sectors of employment include Education (12%) and Accommodation, Cafes & Restaurants (10%), which highlight the importance (and potential) of tourism to the Capricorn Coast. Each of these sectors employ a larger proportion of the resident workforce relative to the whole Rockhampton sub-region. Other notable sectors of employment in Livingstone are the Health & Community Services and Construction sectors, as well as the traditional sectors of Manufacturing and Agriculture. Manufacturing in Livingstone is dominated by food processing activities while fruit and vegetable growing dominates the shire’s agricultural activities. Other notable agricultural activities in the shire include commercial fishing and forestry and logging. SGS Economics and Planning Pty Ltd Page 23 Review of the Business/ Industry Scoping Study Figure 9: Employment by Industry Sector (%), Livingstone Shire and Rockhampton Sub-region, 1996 18% 16% Livingstone Shire Number Employed (%) 14% Rockhampton Sub-region 12% 10% 8% 6% 4% 2% ea lth H Ac co m m od at io n, C af e R et a il Tr ad E e s d & uc & C a R ti o om e n m sta ur un ity an Se ts M an rvic e uf ac s t Pr u C on rin op g st er r t& uc ti o A Bu G si gric n ov ne ul er tu s re nm W sS h e en o r t A les vic dm ale es in T . & ra Pe Tra de n D rs ef on spo e rt al & nce C & St ul O tu or ra Fin the r S age an l& c e R ec e & rvic r e I e C om ati nsu s o r an m n un al Se ce ic at io rvic n Se es rv ic es M in in g U til iti es 0% Industry Sector Source: ABS Census of Population & Housing, 1996 4.2 The Rockhampton Economy Sub-regional In assessing opportunities for business and industry in Livingstone, apart from looking at the Central Queensland context, due consideration must be given to regional and subregional attributes and constraints, recent trends and developments. Livingstone Shire is part of the Rockhampton sub-region, which is part of the Fitzroy Region. The Rockhampton sub-region also comprises the local government areas of Rockhampton, Fitzroy and Mt. Morgan. With a population of around 95,800, the subregion houses some 51% of all persons living in the wider Central SGS Economics and Planning Pty Ltd Page 24 Review of the Business/ Industry Scoping Study Queensland Region.2 An analysis of industry in the Rockhampton sub-region helps to identify those sectors of business and industry activity that are best suited to Livingstone Shire and its constituent business/industry precincts. 4.2.1 Key Industries in the Rockhampton Sub-region Figure 10 provides an illustration of the Rockhampton subregion's key sectors of economic activity according to their location quotients. A location quotient (LQ) provides an indication of the share of each industry in relation to the share of the same industry to the Queensland economy. An LQ greater than 1 indicates that the industry is more important to the subregional economy than it is to that of the State as a whole. Location quotients are an employment based measure and thus a partial explanation of a region’s strength or weakness in a particular economic sector. Other key measures include capital formation and gross regional product. However, detailed information on these parameters is not readily available and thus the employment related measure is a useful, overall surrogate measure of economic performance that has been applied in this analysis. The illustration is provided for those industry sectors in the Rockhampton sub-region with a location quotient greater than one. 2 Based on figures from the 1996 ABS Census of Population and Housing. SGS Economics and Planning Pty Ltd Page 25 Review of the Business/ Industry Scoping Study Figure 10: Location Quotients, Employment by Industry Sector (sub-region/ Queensland), Rockhampton Subregion, 1996 4.00 3.50 Location Quotient 3.00 2.50 2.00 1.50 1.00 0.50 El ec t N rici Ra on ty i -M an l Tr et d an al G sp ic as o Fo r M in Sup t od lP ,B p ev O ro ly Pr rg th d M e iv e at & r M fg e To in H bc ing ho c ld s E oM C Em du fg om p ca m loyi tion un ng ity S O S taf th er f er vi c O M th Se es tr er rv i M Ve c T ot hi He ra es n a io c H n P le R lth spo ea Se rt e i c lth tu ta r ,C re ilin vice om ,R g s & a m di un o, Ser Ac T ity V v co Se Se m m G F od en oo rv,u rv e n Pr tn, r d sn Ca al C Re def ta l & fe o i n H s & st ling C hol R ruc om d es tio m Go tau n un od ra ic n M a Fo a Re ts Ag chi res tion tail n t M ric er ry Se ing ac F y a r hi or & E nd vice ne es L ry try qui og s & & pm gin M g F e G tr V ish nt M ov in e f g g t. h Ad icle ,un d m C in Wh ef om . & ls l in m er Def g ci en al Fi ce sh in g 0.00 Industry Sector Source: ABS Census of Population and Housing, 1996 Transport Rail Transport, with an LQ of 3.63, is by far the sector of greatest significance to the Rockhampton sub-regional economy relative to Queensland as a whole. Rockhampton is a key rail freight transport hub, linking with Brisbane and the main Central Queensland rail line. QR’s control, service and maintenance centres are located in the region. QR's principal customers are the region's coal and beef industries, which generate the largest amount of freight. Other customers include the region’s fruit growing industry. The rail terminal in Yeppoon, which is linked to Rockhampton, is used to load pineapples and other produce for transport to Brisbane where they are processed. Utilities Electricity & Gas Supply with an LQ of 3.05 is the other major sector in the sub-region. The Stanwell Power Station is located just outside Rockhampton near Gracemere. A coal-fired power SGS Economics and Planning Pty Ltd Page 26 Review of the Business/ Industry Scoping Study station with a capacity of 1,400 MW, Stanwell provides power to the State grid and is a major source of energy for the sub-region's manufacturing and processing industries. Land adjacent to the power station is the site of the planned AMC magnesium processing plant. Mining and Mineral Product Manufacturing Other key contributors to economic activity in the sub-region include Mining and Mineral Product Manufacturing. Black coal is by far the sub-region’s (and the wider Central Queensland region’s) most important mineral product. Black coal is a key input for the production of metal products and in power generation. The Rockhampton sub-region is strategically located in close proximity to mining sites at the South Bowen Basin coal reserves. Coal is not the only mineral mined in the Rockhampton subregion. Magnesite is mined at the Kunwarara site in the north of the Livingstone Shire. Product from the mine is processed at QMAG's magnesium processing plant at Parkhurst on the outskirts of Rockhampton. Parkhurst is limited from further heavy industrial development due to its close proximity to residential dwellings and limitations due to subdivision pattern and lot size. Magnesium processing and related industrial activities are to be provided for at the AMC site in Stanwell. The Kunwarara mine will be the principal source of magnesite for processing at the proposed AMC plant at Stanwell. Other mining and processing activities include salt and limestone. The region is the largest salt producer in Queensland. Salt is mined near Port Alma and is exported through the Port to overseas markets as well as to other parts of Australia. Limestone is mined in the Livingstone Shire and used in the manufacture of cement and cement products. While the resource is mined in Livingstone Shire, the major producers of lime are located at Parkhurst in Rockhampton (Pacific Lime) and in Taragoola (Frost Enterprises). Queensland Cement has recently committed to Gladstone with a $200 million plant expansion. Agriculture As mentioned earlier, Agriculture has been the traditional mainstay of economic growth and development in the Rockhampton sub-region and the region is widely known as the 'Beef Capital of Australia'. While the Gracemere Livestock Saleyards are not the largest in the country, some of the highest value livestock trade in Australia passes through its gates each year (it is apparently the largest bull selling yard in the country). Cotton growing has also been a key contributor to agricultural activity in the sub-region. SGS Economics and Planning Pty Ltd Page 27 Review of the Business/ Industry Scoping Study Timber production and processing is another traditional industry, which now concentrates on plantation timber as its major source. There are a number of saw mills and processing plants located in the region. Education and Health Services Also significant in the area are a number of service sectors, notably Education and Health Services. As shown in the chart above, education is a significant employer, with an LQ of 1.38. Key educational infrastructure in the sub-region includes a campus of the Central Queensland University in Rockhampton and Gladstone, which is Australia’s largest tropical University serving the second highest number of international students in Australia. Other tertiary facilities include the Central Queensland Institute of TAFE campuses at Rockhampton and Yeppoon, the CSIRO Tropical Beef Research Centre and Tropical Agriculture Centre and boarding schools in Rockhampton (international education). 4.2.2 Rockhampton, Region Gladstone and the Fitzroy A look at all sectors in the Rockhampton sub-region with an LQ greater than one highlights the diversity of the sub-regional economy and the significance of service sector activities. This includes Retail activities and Accommodation, Cafes & Restaurants as well as Education, Health and Community Services and Business Services. This is indicative of the role of Rockhampton as a regional service hub to the Fitzroy and wider Central Queensland regions. This fact is highlighted by the relativities illustrated in the following chart, which compares employment by industry sector in the Rockhampton sub-region, the Gladstone sub-region (consisting of the Gladstone and Calliope LGAs) and the wider Fitzroy Statistical Division (SD). The Fitzroy SD comprises the local government areas of Livingstone, Fitzroy, Mt. Morgan, Calliope, Gladstone, Banana, Bauhinia, Duaringa, Emerald, Peak Downs and Jericho. As shown in Figure 11, the Rockhampton sub-region has a higher representation of persons employed in Retail Trade, Wholesale Trade, Government Administration, Health & Community Services, Accommodation, Cafes & Restaurants and, most notably, Education. Obviously, this is due to the location of CQU, as well as TAFE and other tertiary facilities in Rockhampton and Yeppoon. SGS Economics and Planning Pty Ltd Page 28 Review of the Business/ Industry Scoping Study Figure 11: Employment by Industry Sector, Rockhampton Sub-region, Gladstone Sub-region and Fitzroy Statistical Division, 1996 12% 10% Number Employed (%) Rockhampton Sub-region Gladstone Sub-region 8% Fitzroy SD 6% 4% 2% H ea l th & C ty om m un i R et ai lT ra de Se rv ic es Pr Ed op u ca er M ty tio an & n uf Bu ac si tu Ac n r co in es g m s Se m od rv tn ic C es ,C on af st es ru c & tio R n Tr es an ta sp ur an or t& ts S W to ho G r ag ov le sa t. e Ad le Pe m Tr rs in ad on .& Ag e al ric D & ef ul O en tu th re ce er ,F S or er es vi ce try Fi s na & F n C c i s e om hi El & ng m ec In un su tri ic ci r a at ty nc C io ,G ul e n tu as Se ra & l& rv W ic R es at ec er re Su at io pp na ly lS er vi ce s M in in g 0% Industry Sector Source: ABS Census of Population & Housing, 1996 The dominance of Manufacturing in Gladstone is representative of the significance of heavy industrial activities there, most notably metal product manufacturing, power generation and mining activities. Figure 12 shows the employment location quotients for the Gladstone area, and highlights the dominance of heavy industrial activities. Gladstone experiences relative lack of economic diversity compared to the Rockhampton sub-region. While Rockhampton is the principal centre serving the subregion’s traditional and heavy industrial activities, the lifestyle attributes and proximity of Yeppoon and Emu Park in Livingstone Shire provide the opportunity for those centres to capture a greater share of the market for household and business services in the region. SGS Economics and Planning Pty Ltd Page 29 Review of the Business/ Industry Scoping Study Figure 12: Location Quotients (Sub-region/ Queensland), Industry of Employment, Gladstone Subregion, 1996 10.00 9.00 8.65 8.00 Location Quotient 7.00 6.19 6.00 5.37 5.00 4.03 4.00 3.16 3.00 3.01 2.46 2.29 2.28 2.06 2.00 1.98 1.73 1.51 1.37 1.07 1.02 1.00 M et al Pr od El uc ec tM tri an ci ty uf ac an tu d r G as ing S C up on Rai pl lT st y ru ra ct W n s i at on po C er ,u nd rt Sp om m ef ly in Sw erc ed ia rg lF e i sh & in D g rn ge S O Se er th rv v er ic es M in to in g Pe Tr W an trl a m sp te rT or C oa t ra O lC n sp hm ther or Tr cl N t on a & -M As nsp C or s on etal Pr t ic st od ru M M in ct fg lP io n ro Tr d a G M de en f Ba Se g er si a c rv l C M on ices at er st ia r l W uct io ho n l Fo esa lin od g R et ai lin g 0.00 Industry Sector Source: ABS Census of Population & Housing, 1996 4.2.3 Change in Employment by Industry Sector, Rockhampton Sub-region Declining Sectors Those sectors of employment that have traditionally been of greatest importance to the Rockhampton sub-regional economy have also experienced some relative decline in recent years. Figure 13 illustrates those industry sectors in the sub-region that have experienced the greatest increase, along with those displaying the greatest decline in employment numbers over the ten year period to 1996. SGS Economics and Planning Pty Ltd Page 30 Review of the Business/ Industry Scoping Study Figure 13: Change in Employment by Selected Industry Sector, Rockhampton Sub-region, 1986-1996 2,000 1,500 Change in Employment 1,000 500 0 -500 -1,000 -1,500 Pr op er ty & Bu si ne ss Se rv ic es Pe rs on Ed al uc an at d io O n Ac th er co Se m m rv od ic es at io R n, et C ai af lT es ra an de d R es ta ur an Fo C ts o od m m ,B El un ec ev ic tri er at ci ag io ty n es ,G & as To & ba W cc at o er M an uf ac tu rin g Ag ric ul tu re R ai lT ra ns po rt -2,000 Industry Sector Source: ABS Census of Population & Housing, 1996 As illustrated earlier, by location quotient, Rail Transport and Electricity & Gas Supply are key strengths of the Rockhampton sub-regional economy. However, as shown above, these sectors, together with Agriculture and Food Processing have also experienced the greatest decline in employment numbers over the ten years to 1996. During this period, the number of the region’s residents employed in Rail Transport fell by over 1,700 or 65%. Electricity, Gas & Water lost 200 employees over the period, a fall of 25%. This can be attributed to public sector rationalisation and cutbacks over the period. The number of the sub-region's residents employed in Agriculture fell by around 460 between 1986 and 1996, a decline of 28%. This can be largely attributed to the decline in Australia's beef sector as a result of greater international competition, falling commodity prices and subsequent industry rationalisation. The sub-region's Food Processing sector has experienced similar decline, down 200 workers or 13% over the decade to 1996. SGS Economics and Planning Pty Ltd Page 31 Review of the Business/ Industry Scoping Study Growth Sectors - Services Those sectors that experienced the greatest increase in employment numbers between 1986 and 1996 have been in the service sectors. With the exception of perhaps some elements of the Education sector, these industries do not drive regional economic growth but rather, are led by the growth of other key export earning sectors through associated increases in population and consumption. As shown in Figure 13, the sub-region's key sectors of growth are Property and Business Services (such as legal and accounting), Education, Health Services, Retail Trade, Personal Services and Accommodation, Cafes and Restaurants. The Central Queensland University and the Office of Regional Development are working to establish the Institute for Sustainable Regional Development at the University’s Rockhampton campus. The Institute will engage in applied research in this field. Continued development of the international education industry in Rockhampton and Gladstone is also envisaged. Manufacturing While the most substantial growth in industry has occurred in the service sectors, growth has also occurred in a number of the region’s traditional driver sectors, notably: • • • • Metal Product Manufacturing (i.e. transport equipment, vehicle parts, building products, etc.); Machinery and Equipment Manufacturing; Chemical, Petroleum and Coal Product Manufacturing; and Coal Mining. Employment growth in these sectors has been based on the development of a number of large projects in the Fitzroy Region. Associated with the growth in these key sectors has been an increase in employment in those sectors that serve key industry such as Services to Agriculture and Services to Mining. SGS Economics and Planning Pty Ltd Page 32 Review of the Business/ Industry Scoping Study 4.3 Implications for Business and Industry Development in the Livingstone Shire In broad terms, the driver sectors of economic activity in the Rockhampton sub-region, and those that heavily influence opportunities for Livingstone Shire, are: • • • • • • • Metal Product Manufacturing; Mineral Product Manufacturing; Machinery and Equipment Manufacturing; Mining; Agriculture and Food Processing; Power Generation; and (Tertiary) Education and Research. The continued growth of these sectors in the region provides the opportunity for the continued development of secondary or support industry, which relies on these industrial strengths. Broadly speaking, these activities include: • • • • • • Transport, Warehousing and Distribution; Services to Agriculture; Specialist Services to Mining and Manufacturing; Wholesale/ Retail Trade and General Service Industry Tourism-related activities; and Business and Industry Support Services.3 Examples of Services to Agriculture include such activities as herd testing, pest control, agronomy (soil management) services, etc. Examples of Services to Mining include surveying, exploration, ore testing, etc. Other sectors or activities that have potential to take advantage of the region’s lifestyle attributes (including the full range of services and facilities available) are the ‘knowledge based’ activities. These include: • • • 3 Home based knowledge workers such as consultants, lawyers, etc.; Specialist personal, household or business service providers; and High tech service industries (e.g. call centres). While ‘tourism’ is not explicitly identified in the ABS industry classifications, the region’s lifestyle attributes, heritage features, coastline, proximity to the Whitsundays and natural features, particularly in the Capricorn Coast area, support the potential growth of this industry. SGS Economics and Planning Pty Ltd Page 33 Review of the Business/ Industry Scoping Study These are the types of activities that are relatively footloose and which can locate almost anywhere so long as the necessary support infrastructure is in place (communications in particular). In the case of call centre operations, like all industrial activities appropriately zoned land must be available. A call centre is a low impact activity that can co-locate with other non-industrial uses within residential or business areas. Therefore, the opportunity to accommodate a call centre in an established urban area is possible as its locational requirements are flexible and its relative impacts on surrounding land uses are relatively minor. These broad opportunities need to be considered against the business and industry attributes of Livingstone Shire, including the nominated business/ industry areas. SGS Economics and Planning Pty Ltd Page 34 Review of the Business/ Industry Scoping Study 5. Business/ Industry Livingstone Shire Prospects 5.1 Opportunity Identification for Based on the consultation and analysis of sub-regional and regional industry trends and prospects, broader national and international economic trends and influences and a profile of the Livingstone Shire, a number of broad opportunities for future business and industry development in Livingstone Shire and the Capricorn Coast have been identified. The opportunities that have been identified reflect the need to diversify and enhance economic prospects for the shire. They reflect Livingstone Shire’s ‘place’ in the regional context. They also acknowledge a balance between the need to capitalise on traditional strengths or drivers in new and innovative ways (e.g. value added manufacturing) while embracing new opportunities that build on new and emerging trends and needs (e.g. tourism, home-based business development and retail development). Opportunities for business and industry development in the Livingstone Shire are listed and described below. The opportunities are not presented in any particular order of priority. 5.2 Business/ Industry Development Opportunities for Livingstone Shire 5.2.1 Machinery and Equipment Manufacturing As discussed earlier, large-scale mining and processing activities are well established in Gladstone and to a lesser extent, Rockhampton. The research and consultation undertaken as part of this study suggests that the Parkhurst Industrial Estate in Rockhampton (which is the largest in the City) is limited in its capacity to accommodate expanded mineral and metal product manufacturing activities beyond current operations there. This is due in part to limited lot sizes, but more importantly, the area’s proximity to residential subdivision. However, the Parkhurst estate’s major tenant, Queensland Magnesium, will continue to operate there into the foreseeable future. New opportunities for metal and mineral product manufacturing are likely to be catered for at the proposed Australian Magnesium Corporation (AMC) site in Stanwell near Rockhampton. All indications from State Government sources suggest that this project will proceed as planned. This limits opportunities for these types of activities in Livingstone Shire, or elsewhere in SGS Economics and Planning Pty Ltd Page 35 Review of the Business/ Industry Scoping Study Queensland for that matter. If it proceeds as planned, the AMC project will be a world class facility and will produce processed magnesium for the national and international markets. The need to reach certain economies of scale in the production of magnesium means that a second processing plant of this magnitude in Queensland would simply not be feasible. Consultation with State Government sources during the preparation of this report indicated that there are no plans to proactively pursue mineral processing activities of any kind to locate in Livingstone Shire. There may well be opportunities to develop value-added industrial activities, in particular, machinery and equipment repairs and manufacturing. Opportunities that should be considered include: • Agricultural machinery and equipment manufacturing for the wider region’s beef, cotton and fruit production industries. (N.B. manufacturing typically develops from a base of repair services – see below). • Agricultural machinery and equipment repair which could vary from small components (e.g. crop sprayers) to transportation equipment (for livestock) to very large earthmoving equipment. • Mining machinery and equipment manufacturing based on the area’s proximity to magnesite, limestone and coal mining activities. • Mining machinery and equipment repair, which could vary from small components (e.g. communications) to very large earthmoving equipment. However, again, these opportunities must be tempered against likely competition from neighbouring localities, the Stanwell site being the most obvious. 5.2.2 Specialist Business Services to Mining and Manufacturing Economic trends and the development of competing regions means that Livingstone Shire needs to look beyond traditional ‘smokestack’ industry to drive future growth and development. Livingstone would be competing for infrastructure, investment and resources for industrial development with other areas in Central Queensland in the immediate area and beyond (e.g. Rockhampton, Mackay, Gladstone) where high impact industry is established. Further, the pursuit of high impact industry is SGS Economics and Planning Pty Ltd Page 36 Review of the Business/ Industry Scoping Study contrary to the preservation of Livingstone’s and the Capricorn Coast’s lifestyle attributes. The coastal location, good climate and village atmosphere of Yeppoon and Emu Park support the appeal of the Capricorn Coast as a place to live and a place to visit (i.e. tourism), and the development of high impact processing activities would detract from this recognised strength. The continued development of the wider region’s driver sectors of economic activity provides an opportunity for the further development of secondary or support industry, which can link in to and build on the region’s core industrial strengths. There is an opportunity for the Livingstone economy to service major developments in other parts of Central Queensland such as major mining and processing operations. This includes technical services like equipment testing and ore testing.4 Livingstone’s proximity to mining operations also provides the opportunity for the development of mining research and development (R&D) services and facilities (e.g. research into the development and use of shale oil). This does not suggest that high impact testing be undertaken in the shire. Rather, that there may be an opportunity for laboratory based chemical research and similar activities to support mineral exploration and processing techniques. This opportunity is supported by the region’s strength in education and research and Livingstone’s proximity to Central Queensland University and other tertiary education, training and research institutions. To summarise, the range of business activities that should be considered include: • Mining R&D - could relate to exploration, production or processing. • Ore testing and analysis – refers to specialist skill and equipment based services requiring a fast turnaround time. Hence, proximity to markets is important. • Mining exploration data interpretation – again, refers to specialist skill based services where a fast turnaround time (and therefore, location) is important. • Exploration field support – requires a logistical base for mobile field exploration. 4 While it does not support the pursuit of mineral processing activities in Livingstone Shire, the Queensland Department of State Development does encourage the concept of Livingstone servicing the wider region’s mining and processing industries as part of an ‘energy triangle concept’, between Gladstone, Biloela and Stanwell near Rockhampton. SGS Economics and Planning Pty Ltd Page 37 Review of the Business/ Industry Scoping Study • Mapping services – requires appropriate skills and IT support capabilities. Again, the potential to facilitate the establishment of these activities must be considered against competition from competing areas and what those areas can offer in terms of land, location and access, infrastructure and other key services. 5.2.3 Food Processing and Associated Activities The wider region’s citrus fruit processing industry is centred on Emerald. Produce consists of oranges, lemons, mandarins and table grapes. Other products include pineapples, which are grown in the Livingstone Shire. Much of the fruit grown in the region is transported for processing elsewhere (i.e. Brisbane). This has much to do with the nature of the industry and the location of major processors outside the region. Despite this, there may be an opportunity for smaller-scale fruit processing activities in Livingstone Shire. Livingstone’s location on the north-south freight rail line supports the opportunity for local product to be transported direct to domestic and overseas markets. In summary, food processing and associated opportunities include: 5.2.4 • Fruit processing – this may include grading, packing, canning, juicing, freezing or drying. • Fruit processing equipment and supplies, repair and manufacturing – this may include equipment for any of these activities. • Food storage and transport – these functions are usually associated together and in close or immediate proximity to food processing activities (see also Section 4.2.6 below). Timber Processing and Associated Manufacturing There is potential to build on the State timber resource in the region by exploring opportunities to add value to the timber before it leaves the region in addition to private forestry development. The feasibility of establishing a mass production softwood mill in the area requires further investigation, to supplement existing private mills. Opportunities to consider are: SGS Economics and Planning Pty Ltd Page 38 Review of the Business/ Industry Scoping Study 5.2.5 • Large-scale timber processing – there may be an opportunity for the establishment of a large-scale mill to utilise the region’s State timber resource. • Small-scale timber processing – there may be scope for the establishment of specialist processes (e.g. veneers) that are viable on a small-scale if producing a high value product. • ‘Niche’ timber processing - there may be greater scope to accommodate small-scale ‘niche’ (hardwood) timber processing in Livingstone Shire. • Forestry machinery and equipment repair - there may also be scope to service the timber processing industry through the establishment of forestry machinery manufacturing and repair activities. This could vary from small components (e.g. surveying, pruning equipment, etc.) to very large log hauling and harvesting equipment. • Timber value adding – this refers to furniture or components, other wooden components or finished products (doors, windows, trusses, etc.). Transport, Warehousing and Distribution Rockhampton serves as a major transport, warehousing and distribution centre for the wider region. The further development of Rockhampton’s profile in this regard is supported by recent infrastructure investments. (Some examples of these investments are provided in Appendix C). Competition from Rockhampton, and Yeppoon’s location (effectively a cul-de-sac off the State’s north-south road, the Bruce Highway) detracts from the opportunity for Yeppoon or Emu Park to serve as a central transport and distribution hub. Rockhampton is better placed in proximity to beef produce and to markets in Brisbane and beyond. There is an opportunity to build on existing transport activities such as the handling of the region’s pineapples for transport to Brisbane. To this end, there is some potential for the development of transport, warehousing and distribution facilities in Livingstone Shire as follows: • Fruit Handling and Distribution - while the focus of Rockhampton’s transport, warehousing and distribution activities is on beef and mineral products, there is an opportunity for Livingstone to establish a regional freight transport interchange and handling facility for the region’s unprocessed (and perhaps processed) fruit products. SGS Economics and Planning Pty Ltd Page 39 Review of the Business/ Industry Scoping Study The potential for fruit handling and distribution to ex-regional markets will be determined by a range of factors including required economies of scale, access issues (compared to competing locations such as Rockhampton) and the capacity to accommodate such activities on industrial land in the Livingstone Shire. This is considered in Section 5 of this report. 5.2.6 Retailing Retailing is a major contributor to local economic activity. Consultations, which were undertaken as part of this review suggested that Yeppoon in particular, lacks major retail facilities. It has been suggested that recent and anticipated population growth supports the need for new supermarket and department store facilities in Yeppoon. This view is consistent with the recommendations put forward in the original scoping study, which suggested that this need could be accommodated on land adjacent to Area B at the intersection of Tanby Road and Taranganba Road. Retail supply in Livingstone Shire is highlighted by the Yeppoon district centre, which provides for the daily and weekly retail needs of the Capricorn Coast’s resident population. Yeppoon’s central business district is anchored by the Bi-Lo Fresh supermarket, which is supported by a range of specialty stores. Yeppoon is complemented by local neighbourhood centres at Taranganba, Cooee Bay, Lammermoor, Kinka, the Causeway and Emu Park. These convenience centres provide for the daily/ weekly ‘top up’ shopping needs of local residents. At present, the ‘comparison’ shopping needs of Livingstone Shire’s residents are served by the department store facilities in Rockhampton. Livingstone Shire has experienced substantial population growth in recent years, and current official projections suggest that high rates of growth will continue into the future, particularly along the coastal strip. In addition to permanent resident population growth, the continued growth in tourist numbers to the Capricorn Coast will place added pressure on the shire’s retail facilities. The potential for new retail facilities was identified in the original Scoping Study, which recommended that future expansion occur in Taranganba to the west of Area B on the intersection of Taranganba Road and Tanby Road. However, the proposal to develop new facilities outside of Yeppoon’s central business district needs to be weighed against Council’s policy to consolidate retail facilities in the CBD. Consideration must also be given to the likely demand/ need for additional retail facilities in the foreseeable future. (Retail need is assessed in the subsequent section of this report). SGS Economics and Planning Pty Ltd Page 40 Review of the Business/ Industry Scoping Study 5.2.7 General Service Industry Consultation with business sector representatives has indicated a lack of support for the further development of general service industry, with particular concern about the precinct identified at Emu Park (refer Area 3, Figure 1). The most pressing issue for Emu Park is the lack of basic and essential water and sewerage infrastructure to support the needs of business operators.5 Recent and anticipated population growth in the shire suggests that there will be a continuing growth in demand for general services such as auto and marine repairs, sheet metal fabrication and similar light industrial activities. Between 1999 and 2001, the population of Emu Park is projected to have 3.8% per annum growth rate (source: PIFU). Residents and local business operators from Emu Park need to travel to Yeppoon or Rockhampton to obtain a range of general services. A number of general services are also being provided in Emu Park by ‘backyard operators’ (e.g. mechanics, welders, etc.) contrary to the provisions of the current planning scheme. By adequately enforcing planning scheme provisions and investing in the provision of infrastructure in Area C, service providers will be encouraged to consolidate their activities in a dedicated node. This will have benefits for the service providers and for the local community in the form of economies of agglomeration and the clustering of related services in the one location. Council’s commitment to a light industrial precinct in Emu Park will also provide the catalyst for attracting new investment to the town from both existing and potential new business operators. Relocating the ‘backyard operators’ from established urban areas and into a designated light industrial precinct will also enhance the ‘lifestyle’ and ‘livability’ attributes of the town. Ancillary benefits to Council will be realised in the form of higher land values and potential rate revenue in the Emu Park industry precinct. Without adequately serviced designated industrial land (i.e. water, sewerage and sealed roads), it is unlikely that potential new business operators will be willing to locate in the area. As a result, the needs of the local population will not be met. Emu Park residents will continue to travel to Yeppoon or 5 A lack of basic infrastructure has a number of implications for existing operators in the Emu Park light industry precinct. One such issue identified is the absence of a water supply for fire fighting services, which places businesses under substantial threat of damage or destruction from possible fire hazards, which also makes those businesses a higher insurance risk than what they otherwise would be in the presence of an adequate water supply. SGS Economics and Planning Pty Ltd Page 41 Review of the Business/ Industry Scoping Study Rockhampton for these services, thereby sending potential local retail dollars to these areas instead of spending locally. General service industry opportunities that have been identified for Emu Park include: 5.2.8 • Small-scale agricultural maintenance and repairs. • Auto-marine sales, services and repairs. • Automotive sales, service and repairs. • Plant and building equipment hire services. machinery and equipment Tourism Tourism is a sector of growing importance to the economic prosperity of the shire. The tourism industry of the Capricorn Coast is still in relative infancy with limited development. This is in large part due to the area’s proximity to the Whitsundays region, which has a highly developed product and market profile. Anecdotal evidence suggests that tourism on the Capricorn Coast is still in the developmental phase and questions remain over the extent to which the local community wants to see this sector developed. A recurring comment made during the consultations undertaken as part of this review was “we don’t want to become another Gold Coast”. The majority of visitors to the Capricorn Coast (and to the wider Fitzroy Region for that matter) travel from other parts of Queensland, and many of these are from inland areas of Central Queensland. According to the Bureau of Tourism Research, just over half of all domestic visitors to the Fitzroy region do so on a day trip. Only 5% of visitors to the region are from overseas.6 The results of an on-going survey of visitors to the Capricorn Coast Tourist Information Centre reveals that between 1996 and 1999, the number of visitors to the Capricorn Coast increased by 20%. Between 1999 and 2001, the visitor numbers increased by 7%.7 While this is only a small sample, it provides some indication of recent trends in visitor numbers. The regional planning project, Central Queensland, A New Millennium, to date has identified obstacles to the continued development of the tourism industry for Central Queensland. 6 7 Bureau of Tourism Research, “National Visitor Survey”, 2000 Capricorn Coast Tourist Organisation, unpublished statistics, 2001 SGS Economics and Planning Pty Ltd Page 42 Review of the Business/ Industry Scoping Study This includes a limited awareness to outsiders of the region as a tourism destination and, as a result, lower than could be achieved visitor numbers. It also highlights a reluctance by investors to contribute to the tourism product in order to promote the region to wider State and national markets. The study also suggested that the development of commercial tourism product in the region is slow and its quantity and quality needs to be improved. These issues are just as relevant to the Capricorn Coast as they are to the wider region as a whole. There have been a number of recent developments in the Capricorn Coast and this does highlight a certain level of confidence in the future of tourism in the region. Opportunities for tourism include: 5.2.9 • Tourist accommodation that is sensitive to the community’s desire to preserve the natural beauty and village atmosphere of the Capricorn Coast. Quality accommodation that is low impact and which complies with local height restrictions should be encouraged. • Recreation/ sporting facilities – certain facilities, such as golf course developments, indoor and outdoor sporting complexes, bush walking and horse trails, etc. serve the local population, adding to the lifestyle appeal of the region. Depending on the nature of the facility and standard of service, such facilities can also act as a drawcard for visitors to the area. IT Service Industry Livingstone Shire’s lifestyle attributes, and the community’s desire to maintain those attributes, provides an opportunity to encourage low impact high tech industry development in the shire. Opportunities for information technology and telecommunications (IT&T) in Livingstone Shire are as follows: • The Livingstone Shire Council could support the development of a national call centre. Call centres typically locate in areas that can offer a reliable supply of labour, high amenity and other lifestyle attributes such as access to services and facilities and, of course, the necessary land resource. Such a facility could be located in one of the shire’s identified industry precincts within close proximity to established urban areas. SGS Economics and Planning Pty Ltd Page 43 Review of the Business/ Industry Scoping Study 5.2.10 Knowledge/ Home-Based Industry Over the last decade, a number of socio-economic trends such as corporate and government downsizing and contracting of services to specialist providers, improved communications and information technology and a new found emphasis on lifestyle factors has allowed for greater worker flexibility in many occupations. This has increased the incidence of ‘telecommuting’ and ‘teleworking’, and the emergence of home based businesses and occupations. For those looking to establish a home-based occupation, important considerations include lifestyle/ amenity, appropriate infrastructure (particularly communications and information technology) and access to household and business services (i.e. ‘livability’ factors). Telecommunications infrastructure capacity in particular, is a critical requirement for emerging home-based businesses. For Livingstone Shire, with the lifestyle attributes it can offer, the attraction and retention of home-based businesses provides a major opportunity for the future. It is important that the development of home-based business activity in Livingstone Shire be appropriate and consistent with the Council’s (and the community’s) vision for the shire. Permitting dirty, noisy business activities such as auto mechanics, sheet metal producers or textiles manufacturers to operate ‘out of the backyard’ provides the wrong signals to industry, suggesting that these sorts of activities complement the livability of the Capricorn Coast when they clearly do not.8 It is the ‘lifestyle’ and ‘livability’ factors that need to be maintained and promoted to attract the ‘knowledge-based’ home businesses such as IT consultants, legal practitioners, education and training specialists and doctors to the shire. While the results of the 2001 Census on home-based business activity is not yet available, Livingstone Shire’s lifestyle attributes and its location in good proximity to a full range of services in Rockhampton and a short flight to Brisbane, suggests that growth in home based business is likely to increase. This potential must continue to be encouraged and facilitated by Council. In doing so, Council will be seen to be proactive and visionary in facilitating this emerging opportunity as well as in the management and protection of residential amenity. 8 Such uses are not permitted in residential areas, and will be directed to appropriately zoned land in Livingstone Shire Council’s new IPA Planning Scheme. SGS Economics and Planning Pty Ltd Page 44 Review of the Business/ Industry Scoping Study Key roles for Council include promoting the growth of home based business through clear policy and statutory frameworks (i.e. its new IPA planning scheme). The Statement of Proposals for a new Planning Scheme for Livingstone Shire puts forward a number possible strategies to support home based business development. This includes strategies to: • • recognise home based employment as a legitimate use for legal and workplace practice requirements; and ensure essential utilities are adequate for the emergence of telecommuting as the result of more people working from home.9 The fact that Council is proposing ways to facilitate the potential for home based business growth through the local planning framework is encouraging. 5.2.11 Education Services Tertiary Education Investigations undertaken as part of the current study have highlighted the strength of the region’s education sector. Key educational infrastructure in the region includes the Central Queensland University campus in Rockhampton, Central Queensland Institute of TAFE campuses in Yeppoon and Rockhampton and the CSIRO Tropical Beef Research Centre and Tropical Agriculture Centre. Education is a growth industry and the location of quality education facilities helps to attract a wide range of skilled workers and youth to an area. There is real potential to build on this strength in order to deliver significant and tangible economic and employment outcomes for the Livingstone Shire. Future development should continue to build on existing strengths – the role of CQU as a provider of international education (CQU has the second largest number of international students in Australia) and value adding to traditional industry strengths or drivers of economic activity (agricultural research). International education continues to grow as an industry in Australia. As traditional industries look to new and innovative production techniques and new products, education and R&D is essential to success. Opportunities to consider include: • Student accommodation - student colleges to accommodate international and other students studying at CQU in Rockhampton. 9 Livingstone Shire Council, “Living in Livingstone, Statement of Proposals for a new Planning Scheme for Livingstone Shire”, April 2001 SGS Economics and Planning Pty Ltd Page 45 Review of the Business/ Industry Scoping Study • Research facility - research facilities that support the activities of local/ regional industries (agriculture, mining, manufacturing). • Business incubation facilities – As discussed in Section 2 of this report, national and international industry trends show that knowledge is increasingly replacing manual labour as the driver of economic growth. Business and industry needs to take up new technology if it is to keep pace with changing economic circumstances and be competitive. This is a particularly important issue for micro business or business start ups without the resources necessary to afford new technology. Local and regional authorities, other government agencies and private enterprise can assist in this regard by encouraging or even providing business and technology incubation support. Primary and Secondary Education Land on Tanby Road in Yeppoon has been raised as an option to accommodate a new high school in the Livingstone Shire. The original scoping study nominated a parcel of land on the northeastern corner of Tanby Road and Taranganba Road as the site for a future high school.10 As part of this review, the consultants spoke to representatives of Education Queensland, which plans for education facilities according to need (as determined by population) on a 15-year time frame. Education Queensland indicated that, should Livingstone Shire’s population continue to grow at recent rates, the shire will require an additional primary school and a high school in the medium to long-term (i.e. 15 years). According to data on population forecasts from the Queensland Planning and Information Forecasting Unit (PIFU), Livingstone Shire’s population has increased at an average annual rate of 4.9% since the last Census (i.e. 1996-2001). The forecasts suggest that between 2001 and 2006, Livingstone Shire’s population will increase at an average annual rate of 3.10%, and from 2006-2011 at a rate of 2.6%. Overall, between now and 2014, the population of Livingstone Shire is expected to increase at an average annual rate of 2.7%. According to PIFU, between now and 2014, population growth in Yeppoon is projected to account for more than one-third of Livingstone Shire’s total growth. Around 30% of the growth is expected to occur in the Hinterland (tidal, coastal and rural) locality, while the remaining localities account for relatively small shares of projected population growth. High rates of population growth suggest that new primary and secondary school facilities will be required within a 15 year period. 10 Lot 4 on RP617327. SGS Economics and Planning Pty Ltd Page 46 Review of the Business/ Industry Scoping Study 6. Business/ Industry Assessment Opportunity 6.1 Key Locational Requirements Table 1 documents the basic locational and operational requirements of the business and industry opportunities identified in the previous section. This exercise refines the analysis by helping to identify the most appropriate location for particular industry opportunities. SGS Economics and Planning Pty Ltd Page 47 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 1: Key Requirements of Business & Industry Opportunities for Livingstone Shire Machinery and Equipment Manufacturing and Repair Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Mining machinery repair – could vary from small components (communications), to very large earthmoving equipment • Access to move very large equipment in and out of site. Access to mining operations without going through congested areas. • Varies according to scale of operation. 3 phase power. • Freight in and out for supplies and products – some very large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components. Possibly electronics components and control equipment. • Close to users of mining equipment – fast response time. Mining machinery manufacturing - could vary from small components (communications), to very large earthmoving equipment; manufacturing typically develops from base of repair services • Access to move very large equipment in and out of site. Access to mining operations without going through congested areas. • Varies according to scale of operation. 3 phase power. • Freight in and out for supplies and products – some very large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components; possibly electronics components and control equipment. • Close to some users of mining equipment but access to wider markets critical. Agricultural machinery repair could vary from small components eg sprayers, to very large harvesting equipment • Access to move moderately large equipment in and out of site. Access to agricultural operations without going through congested areas. • Varies according to scale of operation. 3 phase power. • Freight in and out for supplies and products – some very large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components; possibly electronics components and control equipment. • Close to users of agricultural equipment – fast response time. Access to move moderately large equipment in and out of site. Access to agricultural operations without going through congested areas. • Varies according to scale of operation. 3 phase power. • Freight in and out for supplies and products – some very large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components; possibly electronics components and control equipment. • Close to users of agricultural equipment but access to markets beyond local critical. Opportunity • • • Agricultural machinery manufacturing could vary from small components eg. sprayers, to very large harvesting equipment; manufacturing typically develops from base of repair services • • SGS Economics and Planning Pty Ltd • • • • • • • • Page 48 Livingstone Shire Council Review of the Business/ Industry Scoping Study Machinery and Equipment Manufacturing and Repair (cont’d) Forestry machinery repair – could vary from small components (surveying, pruning), to very large log hauling and harvesting equipment • Access to move large equipment in and out of site. Access to forestry operations without going through congested areas. • Forestry machinery manufacturing - could vary from small components (surveying, pruning), to very large log hauling and harvesting equipment - manufacturing typically develops from base of repair services Access to move large equipment in and out of site; access to forestry operations without going through congested areas • • SGS Economics and Planning Pty Ltd • • Varies according to scale of operation. 3 phase power. • Varies according to scale of operation. 3 phase power. • • • Freight in and out for supplies and products – some large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components; possibly electronics components and control equipment. • Close to users of forestry equipment – moderately fast response time. Freight in and out for supplies and products – some large and heavy. Basic metal, welding, foundries, other fabricating supplies, machinery components; possibly electronics components and control equipment. • Close to users of forestry equipment but markets beyond local critical. Page 49 Livingstone Shire Council Review of the Business/ Industry Scoping Study Specialist Services to Mining (R&D, Equipment Testing, Analysis) Opportunity Mining R&D – could relate to exploration, production or processing of the region’s mineral resources. Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • Reasonable access/ location for key industry players to meet, conduct research and exchange ideas. May include the use of chemicals and noisy processes (if prototype testing or processing). • Small if lab based; larger if prototype process testing. May be lab based or larger scale process testing. • • • • • Information services/ research facilities Meeting places Communications services Specialist lab supplies and equipment. Skilled researchers (access to skilled labour). • Proximity to source so that samples can be received quickly. Close proximity to natural resource/ extraction sites for exploration. Managers for consultation May include use of chemicals, noisy processes (if prototype testing or processing, though likely to be small-scale if at all). • Lab and small workshop. • Grinding and analysis equipment/ specialist lab supplies and equipment. Skilled researchers (access to skilled labour). • Close to exploration and production (mines) or regional offices of mining companies; expect mostly regional market. Typically in urban area or close to exploration field support. • • Computing equipment; exploration operations. • Close to exploration and production (mines) or regional offices of mining companies; expect mostly regional market • Ore testing, analysis - specialist skill and equipment based service; fast turnaround time desirable. • • • • Mining exploration data interpretation specialist skill based service; fast turnaround time desirable. • SGS Economics and Planning Pty Ltd • • Office based. High capacity communications. • • Information publishing and transmission Meeting places. Communications services. Page 50 Livingstone Shire Council Review of the Business/ Industry Scoping Study Specialist Services to Mining (R&D, Equipment Testing, Analysis) Opportunity Exploration field support – requires a logistical base for mobile field operations. Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • Good access to exploration areas and/or exploration data interpretation (see previous opportunity). Good road access for movement of equipment (drill rigs, seismic equipment, vehicles, etc.). • Site should be big enough for field equipment (drill rigs, seismic equipment, vehicles, etc.). Large parking lot. Good storage facilities (large storage shed). • Surveying equipment, drilling, seismic equipment. 4WD vehicles. • Close to exploration and production (mines); local/regional market only. In central urban area or near field support operations (see previous opportunity). • • Office based. High capacity communications/ IT. • Software suppliers (but probably not local). Computing equipment. Mining R&D and field operations outputs. • Field operations in mining, forestry and agriculture; local/ regional market • Mapping (mining, forestry or agriculture) – skill and IT based service. • SGS Economics and Planning Pty Ltd • • • • • Page 51 Livingstone Shire Council Review of the Business/ Industry Scoping Study Specialist Services to Agriculture Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Agricultural R&D – could relate to crop varieties, strains, equipment, pest control, productivity, harvesting methods, storage and handling or processing. • Reasonable access for key industry players to meet, exchange ideas. May involve agricultural chemicals, odours. • Small if lab based; large area if field trials required. May be lab based or field trials or both. • Libraries and information services; meeting places; communications services. Specialist lab supplies and equipment. Skilled researchers. • Forestry R&D – could relate to tree varieties and propagation, plantation management, harvesting methods or processing • Reasonable access for key industry players to meet, exchange ideas. May involve chemicals, noisy processes. • Small if lab based; large area if field trials required. May have lab based component as well as field trials. • Libraries and information services; meeting places; communications services specialist lab supplies and equipment Lab equipment and support Skilled researchers specialist lab supplies and equipment • Typically centrally located in rural areas among client base. • • Equipment suppliers. • • • • • Small to medium for storage of equipment. vehicles and supplies. Large parking lot. storage shed. Could be located in rural areas among client base or in urban centre accessible to wide range of clients. • • Office based. Communications/ IT. • Skilled labour. • Opportunity • • Agricultural field support services – could include contract crop spraying, fencing, planting, harvesting. • Agricultural management support services – could include agronomic advice, farm management, hedging and other financial or marketing advice • SGS Economics and Planning Pty Ltd • • • • • • Information publishing and transmission. Meeting places. Communications services. Access to wide market desirable. Information publishing and transmission; meeting places; communications services; access to wide market desirable. Farming operations. local regional market only. Farming operations; local/ regional market only. Page 52 Livingstone Shire Council Review of the Business/ Industry Scoping Study Food Processing Opportunity Fruit processing – may include grading, packing, canning, juicing, freezing or drying local/ regional produce. Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • Close, preferably central to supply catchment. 24 hour operation in peak season and heavy vehicle movements. May impact on neighbours Good access to rail or road for transportation of processed product to State and national markets. Access to port. Good air access for transport to overseas markets. • Subject to scale but large area for delivery vehicles, processing plant and storage of raw and processed product. Good road access in and out of site. High quality water and sewerage services. Substantial (i.e. 3 phase) power supply. • Good transport (road, rail, port) to ship products to major markets. Good air access if international markets. Reliable supplies of fruit of suitable standard. Moderately skilled seasonal labour. • Located together with or very close to processing functions. (Integrated facilities encourage economies of scale and more efficient processing outcomes). Refrigeration and other equipment may be noisy. Good access to rail or road for transportation of processed product to State and national markets. Access to port. Good air access for transport to overseas markets. • Good road access in and out of site. Refrigeration equipment (may be noisy). Substantial power supply for cooling. • Reliable supplies of raw or processed fruit of suitable standard. Moderately skilled labour. • • • • • • Food storage and distribution – these functions are usually associated together and in close proximity to food processing activities (see previous opportunity). • • • • • SGS Economics and Planning Pty Ltd • • • • • • • • • • Connections to downstream supply chain (supermarkets, exporters). Good transport; national or even international market needed (road, rail, port, air). Connections to downstream supply chain (supermarkets, exporters). Page 53 Livingstone Shire Council Review of the Business/ Industry Scoping Study Food Processing Opportunity Fruit processing equipment and supplies – repair and manufacturing – may include equipment for any of these activities. Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • • • • • SGS Economics and Planning Pty Ltd Depending on scale of products – may need open access for large equipment; may or may not be noisy production processes. Depends on products and scale of operation – may require significant power and water. • • General road and rail access in and out. Basic metal, welding, foundries, other fabricating supplies to undertake repairs. Machinery components Possibly electronics components and control equipment. Generally need access to market beyond immediate area (local) for manufacturing. Page 54 Livingstone Shire Council Review of the Business/ Industry Scoping Study Timber Processing Opportunity Timber processing – large scale – typically saw mills, panel manufacturing, pulp and paper. Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • Location central to large resource base to ensure sustainable, competitive supply. Large noisy operation. Adequate buffer for noise and air impacts. Heavy traffic movements year round. Access to interregional transport routes. Good local and regional road access for movement of raw timber to plant. • Good access in and out of site for transporting logs and finished product. Very large industrial sites required. Large scale good quality water supply. High voltage power supplies On-site wastewater treatment or high capacity off-site waste water handling facilities. • High standard roads to bear loads from large logging trucks; road, rail and port access for shipment of bulk product. Large, reliable source of timber of suitable quality Processing equipment. Skilled and semi-skilled labour. • Access to national markets required. Ideally have nearby associated industry to use by-products, e.g. sawdust, wood chips, etc. Reasonable access to resource base. May be noisy. Adequate buffer for noise and air impacts. Significant traffic movement. Access to interregional transport routes. Good local and regional road access for movement of raw timber to plant. • Good access in and out of site for transporting raw timber and finished product. Medium sized industrial sites. Larger than average power supply, water, sewerage. • Good standard road and ideally rail and port for shipment of higher value product. • Access to regional and national markets required. • • • • Timber processing, small scale - special processes (veneers) may be viable on a small scale if producing a high value product. • • • • • SGS Economics and Planning Pty Ltd • • • • • • • • • Page 55 Livingstone Shire Council Review of the Business/ Industry Scoping Study Timber Processing Opportunity Timber value adding – furniture or components, other wooden components or finished products (doors, windows, trusses, etc.) Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • • • • • • SGS Economics and Planning Pty Ltd Location near raw material not critical but desirable Production processes may be noisy, requiring adequate buffer. May require good highway exposure if selling finished product direct. • • Subject to scale of operation but small highly specialist operation possible on small industrial lot up to very large scale. Generally good power supply. May use water for some processes. • • General transport; may require packaging, marketing. Semi-processed raw materials (e.g. kiln dried sawn timber, panel products) Skilled labour (design and market skills). Good connection to specialist markets nationally. Page 56 Livingstone Shire Council Review of the Business/ Industry Scoping Study General Service Industry Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Opportunity Automotive sales and repairs • • Small light industrial lot of large commercial lot (sales). Basic power and water. Communications/ IT. • • Vehicle parts. Skilled labour. • Local market. Small light industrial lot of large commercial lot (sales). Basic power and water. Communications/ IT. • • Boat parts and materials. Skilled labour. • Local/ regional market. Small to medium light industrial lot. Basic power and water. Communications/ IT. • • Equipment for hire. Skilled and Semi-skilled labour. • Local market. Small to medium light industrial lot May require 3 phase power Water. • Suppliers of ink, paper and equipment maintenance. • Generally local/regional market. Small to medium sized industrial lot. Basic power and water. Communications/ IT. May require 3 phase power. • • Access to design professionals, printers. Semi-skilled staff. • Generally local/regional market. Must be visible to passing trade or in known precinct. • • Marine sales and repairs • Must be visible to passing trade or in known precinct. • • • Machinery and equipment hire • Visible to passing trade or in known precinct. • • • Printing • Visible to passing trade or in known precinct. • • • Packaging • • • SGS Economics and Planning Pty Ltd Central for logistics but not critical. Medium and some large vehicle movements. Possibly noise. • • • • Page 57 Livingstone Shire Council Review of the Business/ Industry Scoping Study Professional Services, IT, Knowledge Based Industry Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Opportunity Marketing, Advertising • Within urban commercial district. Home-based location suitable. • • • Office based. Basic power and water. Communications/ IT. • Good air links if serving clients out of area. Skilled marketing professionals. Good knowledge of clients’ target markets. • Generally local / regional market, though can be national and international. Within urban commercial district. Home-based location suitable. • • • Office based. Basic power and water. Communications/ IT. • Good air links if serving clients out of area. Skilled marketing professionals. Good knowledge of clients’ businesses and needs. • Generally local / regional market, though can be national and international. Reasonable access for employees. Adequate staff car parking. Attractive setting desirable but not critical. Low impacts on adjacent areas. • Subject to size of operation; generally small to medium size commercial properties. Very reliable, good capacity communications services. • • Communications/ IT. Relatively large, capable semi-skilled labour force. Communications suppliers and services. • Generally regional market but may can also be national and international depending on business (e.g. national airline call centre). • Other professional services • • Customer service centre (call centre) • • • • SGS Economics and Planning Pty Ltd • • • • • • Page 58 Livingstone Shire Council Review of the Business/ Industry Scoping Study Education Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Opportunity High school education • • Subject to size of school but room for sports fields desirable. Basic power and water. Communications/ IT. • Teaching staff, book and other education supplies. Local market, though can be regional and in some cases, international (e.g. high school ESL).11 Subject to size of school but can include sports fields and workshops for practical training for various trades. Basic power and water. Communications/ IT. More capacity for some trades training. • Teaching staff, book and other education supplies (e.g. computing facilities, workshop facilities). • Largely local or regional market. Subject to size of school but can include sports fields, retail precinct, student union facilities, etc. However, an associated college or training facility would require relatively small space. Basic power and water. Communications/ IT. • Teaching staff, book and other education supplies (e.g. computing facilities, research facilities). • Local, regional, national or international market. Ready access by public transport. • • • TAFE/ Vocational education. • • University education • 11 Ready access by public transport. Certain functions can be located in established, centrally located urban areas (commercial precinct or in some cases, predominantly residential areas). • Ready access by public transport. Certain functions can be located in established, centrally located urban areas (commercial precinct or in some cases, predominantly residential areas). • • • • • • English as a Second Language. SGS Economics and Planning Pty Ltd Page 59 Livingstone Shire Council Review of the Business/ Industry Scoping Study Education Opportunity Other education (e.g. English language college, other specialist education). Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets • Ready access by public transport. Certain functions can be located in established, centrally located urban areas (commercial precinct or in some cases, predominantly residential areas). • • • Subject to size of school. Basic power and water. Communications/ IT. • Teaching staff, book and other education supplies (e.g. computing facilities). • Local, regional, national or international market. Usually located on the grounds of or close proximity to a University but not necessary. Could be located in established, centrally located commercial precinct or residential area. Good access by road and public transport. • Basic infrastructure (power and water). Communications/ IT. • Academic output of associated educational or research institution. Support and involvement from relevant academic staff of the educational institution. Access to business mentors/ advisers. Financial support (subsidies) from parent organisation/s (university, government). • Usually local or regional market. • Business incubation facilities • • • SGS Economics and Planning Pty Ltd • • • • Page 60 Livingstone Shire Council Review of the Business/ Industry Scoping Study Tourism, Recreation/Leisure/Entertainment Site Location, Access Requirements Site Requirements (lot size, critical infrastructure, etc.) Key Services, Inputs, Suppliers Access to Markets Opportunity Tourist Accommodation • Proximity to tourist attraction(s) – natural, historical, cultural, manmade. Good access by air and road. Close proximity to national/ international airport. • • • Basic power and water. Communications/ IT. Depending on critical mass/ required economies of scale land area or building height limits must accommodate room requirements and other needs (e.g. recreational facilities on site). • Customer service and semi-skilled staff. • Local, regional, national or international market. Good access by road. Parking. • Depends on nature of facility (e.g. a golf course would require a substantial parcel of land, while informal neighbourhood park can take up only a hectare or less). Basic power and water. • Depends on nature of facility, whether formal or informal but at the least, a suitable supply of unskilled or semiskilled labour. • Usually local or regional but can be wider, depending on facility. • • Recreation/ sporting facilities • • • SGS Economics and Planning Pty Ltd Page 61 Review of the Business/ Industry Scoping Study 7. Recommendations for Business and Industry – Retail Development 7.1 Retail Analysis 7.1.1 Preceding Recommendations Livingstone Shire Council, in its review of its planning scheme, will need to consider the appropriate location of retail uses in the shire. The original scoping study considered retail needs in the shire, suggesting that anticipated population growth would trigger the need for a 5,000 to 6,000 square metre supermarket/ neighbourhood centre in the near future (by 2003).12 It also suggested that a discount department store would be required within 10 to 15 years.13 Consistent with Livingstone Shire Council’s strategic planning objectives, it was recommended in the original study that, if possible, new retail development be consolidated in the existing town centre of Yeppoon (i.e. the Yeppoon central business district). Specifically, it was recommended that Council explore the possibility of relocating the existing rail terminal to Bondoola (Area A) to free up a large parcel of land under single ownership in the central business district (CBD). However, it also acknowledged that land constraints and fragmented ownership of land could make it difficult to acquire an adequate parcel of land in the CBD. Investigations undertaken as part of this review, including consultations with representatives of QR, confirm that it is unlikely a relocation of the rail terminal would be feasible. Further, the original study suggested that a 30-hectare parcel of land be reserved at the intersection of Taranganba Road and Tanby Road for a mixed retail/ commercial/ low impact industry area. It was suggested that (given land constraints in the Yeppoon CBD), the area’s next supermarket could be located here within five years (i.e. by 2003). It was recommended that higher order facilities (i.e. a department store such as a Myer or similar) 12 13 Neighbourhood centres cater for high frequency shopping trips and usually have a small supermarket (such as an IGA) and a few specialty shops that cater for daily/ convenience shopping needs (e.g. chemist, newsagent, bakery, butcher, and greengrocer). Neighbourhood centres vary in size, typically up to 5,000 square metres. (See Appendix E for descriptions of retail centre types). Discount department stores include discount variety stores such as Big W (selling both groceries and personal and household goods such as clothing and home accessories), chain discount stores such as Crazy Clarke’s and independent discount variety outlets. SGS Economics and Planning Pty Ltd Page 62 Review of the Business/ Industry Scoping Study be located elsewhere in order to consolidate commercial activity within 10 to 15 years (by 2013). Council has indicated that anticipated demand may not justify the reservation of large parcels of land for a supermarket and department store within the time frame suggested in the original scoping study. To this end, the retail needs of Livingstone Shire have been reviewed as part of the current study. Specifically, this analysis considers whether the Livingstone Shire can support a full line supermarket (such as a Coles or Woolworths) and discount department store at some point in the foreseeable future. 7.1.2 Existing Retail Floorspace in Livingstone Shire The regional retail economy can be defined as having three levels, with Rockhampton as the main regional retail centre, followed by Yeppoon as a district centre and then a number of small neighbourhood or local centres (e.g. Emu Park, Cooee Bay). Over and above this structure, ‘higher order’ or specialised retailing is undertaken (irregularly and infrequently by the regional population) in major centres within the Brisbane region. Profiles on the retail centres in the region are provided below. Rockhampton: Role: regional centre, providing daily, weekly and (infrequent) comparison shopping services. Anchors: three discount department stores (Target, Kmart, Big W) and two supermarkets (Woolworths, Coles). Floorspace: n.a. Other: regional personal and business services. Distance from Yeppoon: 35 kilometres approx. Yeppoon: Role: district centre, providing daily and weekly retail items for the district population. Anchors: supermarket (2,600 sqm Bi-Lo Fresh). Floorspace: 26,600 sqm (approximate gross retail space). Other: local level personal and business services. Neighbourhood / Local Centres: Role: local convenience centres, providing ‘top up’ shopping for daily/ weekly items. Anchors: specialty shops (i.e. bakery, milk bar or newsagent). Floorspace: ranges in size typically up to 5,000 sqm. Other: n.a. Distance from Yeppoon: varies. More detailed definitions of each type of retail centre is provided in Appendix E. SGS Economics and Planning Pty Ltd Page 63 Review of the Business/ Industry Scoping Study 7.1.3 Retail Demand in Livingstone Shire Population Projections At the time of the 1996 Census, Livingstone Shire had 21,992 residents in 8,316 households. Population in Livingstone Shire has grown significantly in the recent past and is estimated to be approaching 28,000 in 2001. Population projections suggest that significant growth will continue into the future, especially along the shire’s coastal strip. Population projections for the shire are provided by the Queensland Planning and Information Forecasting Unit (PIFU) and are shown in Table 2 overleaf. Household numbers have been extrapolated from these forecasts by applying 1996 average household size to the population projections (i.e. 2.64 persons per household). Note that tourists and visitors add to the supportable retail quantum within centres. Should tourism numbers increase significantly in the Capricorn Coast, then it would be appropriate to include visitors in the retail floorspace analysis. However, for the purposes of this study, the analysis is based on retail floorspace supported by usual residents in order to provide the ‘base case’ or conservative scenario. SGS Economics and Planning Pty Ltd Page 64 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 2: Population and Household Forecasts for Livingstone Shire, 1996 - 2014 Livingstone Shire Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Population Households 21,992 23,314 24,636 25,958 26,904 27,849 28,795 29,740 30,686 31,585 32,484 33,384 34,283 35,182 36,013 36,844 37,676 38,507 39,338 8,316 8,816 9,316 9,816 10,173 10,531 10,888 11,246 11,604 11,944 12,284 12,624 12,964 13,304 13,618 13,932 14,247 14,561 14,875 Hinterland (Tidal, Coastal, Rural) Yeppoon Population Households 10,358 10,704 11,051 11,397 11,744 12,090 12,400 12,709 13,019 13,328 13,638 13,970 14,303 14,635 14,968 15,300 3,917 4,048 4,179 4,310 4,441 4,572 4,689 4,806 4,923 5,040 5,157 5,283 5,408 5,534 5,660 5,786 Population Households 5,740 5,961 6,182 6,402 6,623 6,844 7,108 7,372 7,637 7,901 8,165 8,463 8,761 9,059 9,357 9,655 2,171 2,254 2,337 2,421 2,504 2,588 2,688 2,788 2,888 2,988 3,087 3,200 3,313 3,426 3,538 3,651 The Caves to Rockhampton Corridor Population Households 3,728 3,905 4,082 4,259 4,436 4,613 4,772 4,931 5,091 5,250 5,409 5,503 5,597 5,690 5,784 5,878 1,410 1,477 1,544 1,610 1,677 1,744 1,805 1,865 1,925 1,985 2,045 2,081 2,116 2,152 2,187 2,223 Emu Park Rural South Population Households 2,780 2,894 3,008 3,121 3,235 3,349 3,441 3,532 3,624 3,715 3,807 3,862 3,917 3,973 4,028 4,083 1,051 1,094 1,137 1,180 1,223 1,266 1,301 1,336 1,370 1,405 1,440 1,460 1,481 1,502 1,523 1,544 Rural North Population Households 1,394 1,422 1,450 1,478 1,506 1,534 1,552 1,570 1,588 1,606 1,624 1,631 1,638 1,644 1,651 1,658 527 538 548 559 569 580 587 594 600 607 614 617 619 622 624 627 Hinterland North Population Households 1,063 1,082 1,101 1,120 1,139 1,158 1,171 1,184 1,198 1,211 1,224 1,235 1,245 1,256 1,266 1,277 402 409 416 424 431 438 443 448 453 458 463 467 471 475 479 483 Population Households 894 935 976 1,016 1,057 1,098 1,141 1,184 1,228 1,271 1,314 1,349 1,383 1,418 1,452 1,487 338 353 369 384 400 415 432 448 464 481 497 510 523 536 549 562 Population sources: 1996 = ABS Census 1999, 2004, 2009, 2014 Queensland Planning and Information Forecasting Unit Other Years: Straight line extrapolation Household sources: Extrapolated from population by applying 1996 average household size (2.64 persons per household) SGS Economics and Planning Pty Ltd Page 65 Livingstone Shire Council Review of the Business/ Industry Scoping Study Retail Catchments The retail model used in this analysis requires the identification of retail catchments for various levels in the retail economy. The following catchment assumptions are made: • Regional - Rockhampton’s regional level catchment is assumed to be the Rockhampton sub-region. This means that all regional level retail expenditure from households within the region, including Livingstone Shire, is assumed to be made in Rockhampton. • District - The Yeppoon district level catchment is estimated to be approximately all of the district to the east of the half way point between Rockhampton and the coast, including Yeppoon, Emu Park and parts of the surrounding areas. For the purposes of the analysis, this is: ⇒ 100% of Yeppoon; ⇒ 100% of Hinterland (Tidal, Coastal, Rural); ⇒ 0% of The Caves to Rockhampton Corridor; ⇒ 100% of Emu Park; ⇒ 50% of Rural South; ⇒ 0% of Rural North; and ⇒ 100% of Hinterland North. Population and household projections for this area are provided in Table 2. • Neighbourhood - Neighbourhood areas, located in Cooee Bay, Taranganba, the Causeway, Kinka, Mulambin, Emu Park, Keppel Sands, Cawarral, The Caves and other neighbourhoods have local level catchments only. SGS Economics and Planning Pty Ltd Page 66 Livingstone Shire Council Review of the Business/ Industry Scoping Study 7.1.5 Livingstone’s Retail Requirements – Findings and Recommendations Assumptions The assessment of Livingstone’s retail floorspace needs is shown in Table 3 (all figures are shown in June 2001 dollars). The assumptions upon which this analysis is based are as follows: • • • • • • There is capacity for significant retail expansion only in the Yeppoon district based on population growth estimates and forecasts, with all remaining areas within the shire being capable of accommodating local level services only. Households in the Yeppoon district level catchment (existing and forecast) are as shown in the previous table. Households in this catchment spend the same on shopfront retailing as is shown by the Queensland average, in the ABS Household Expenditure Survey 1998/99.14 Livingstone Shire can potentially capture 46% of the retail expenditure made by households within its boundaries (based on expenditure potential and capture data shown by ABS Household Expenditure figures for 1998/99 and Retail Census turnover figures for 1991/92).15 It is assumed that district level retailing captures 44% of expenditure and 2% is captured by local level (i.e. neighbourhood/ local centre) retailing.16 The remaining 54% of expenditure is made in regional locations (i.e. Rockhampton and beyond including the Brisbane metropolitan area). The Yeppoon district centre has 17,000 sqm of (leaseable) retail floorspace (approx). Total gross retail floorspace is estimated to be 26,600 sqm for the shire. It is assumed that 80% of this quantum is in the Yeppoon district centre, and 80% is leaseable floorspace. Retail turnover density is based on the 1991/92 Retail Census for Livingstone Shire, which shows $2,819/ sqm. Inflated to June 2001 dollars, this figure is $3,530/ sqm. Livingstone’s Retail Floorspace Requirements The analysis indicates that: • • 14 15 16 Supply and demand for district level retail floorspace is in broad balance at this point in time (i.e. 2001). By about 2014, Yeppoon will be able to support an additional 8,000 sqm of retail floorspace. Australian Bureau of Statistics, “Household Expenditure Survey Summary of Results, 1998-99”, Cat. No. 6530.0 Australian Bureau of Statistics, “Retailing in Queensland 1991-92”, Cat. No. 8623.0 Based on previous SGS models. SGS Economics and Planning Pty Ltd Page 67 Livingstone Shire Council Review of the Business/ Industry Scoping Study • • This could comprise a full line supermarket (e.g. 5,000 sqm) plus 30 specialty shops or a small discount department store. It is unlikely that a full line discount department store (approx. 7,500 sqm) could be supported in Yeppoon within a 14-year horizon, although a smaller version may be a possibility. The trigger point for a new supermarket is approximately 8 years (i.e. 2009/10). Table 3: Retail Floorspace Needs, Livingstone Shire, 2001-2014 Year Households Household Expenditure on Shopfront Retailing 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8,297 8,575 8,853 9,131 9,403 9,674 9,945 10,217 10,488 10,762 11,035 11,309 11,583 11,856 $16,893 $140,153,851 $144,854,051 $149,554,251 $154,254,451 $158,838,391 $163,422,331 $168,006,272 $172,590,212 $177,174,153 $181,796,420 $186,418,688 $191,040,956 $195,663,224 $200,285,491 District Level Expenditure Capture Supportable Floorspace Based on Retail Turnover Density 44.0% $61,667,694 $63,735,782 $65,803,870 $67,871,958 $69,888,892 $71,905,826 $73,922,760 $75,939,693 $77,956,627 $79,990,425 $82,024,223 $84,058,021 $86,091,818 $88,125,616 $3,530 17,470 18,055 18,641 19,227 19,799 20,370 20,941 21,513 22,084 22,660 23,236 23,812 24,389 24,965 Floorspace Differential Based on Existing Floorspace 17000 -470 -1,055 -1,641 -2,227 -2,799 -3,370 -3,941 -4,513 -5,084 -5,660 -6,236 -6,812 -7,389 -7,965 Recommendations Based on these findings, the following recommendations are made: • • 17 That the reservation of land for the development of a full-line supermarket in the next few years (i.e. by 2003) is not warranted. To this end, the proposed 30-hectare parcel of land at the intersection of Tanby Road and Taranganba Road should not be designated in Livingstone’s new planning scheme for the purpose of anticipated retail development. That Council continues its discussions with QR regarding options for the existing Yeppoon rail terminal in the medium term. Depending on industry developments, the requirements of QR and its customers may change over the next decade. The Pineapple Patch site (Area A) should continue to be considered as a possible alternative location for Yeppoon’s rail terminal, serving the transport and distribution needs of the region’s fruit growing industry.17 The existing rail siding on the Pineapple Patch site (Area A) makes it an ideal candidate to house a relocated Yeppoon rail terminal in the long-term. SGS Economics and Planning Pty Ltd Page 68 Livingstone Shire Council Review of the Business/ Industry Scoping Study 8. Recommendations for Business and Industry – Designated Areas Each of the short listed opportunities for business and industry development in Livingstone Shire need to be considered against local land resource attributes and the capacity to accommodate further development. As explained in Section 1.3 of this report, one of the objectives of this review is to provide commentary on the currency and adequacy of Areas A, B and C to accommodate the future development of business and industry in Livingstone Shire. The attributes, constraints and other notable features of each designated industry node are considered in turn below. Following the assessment of each site, a qualitative assessment is made of each business and industry opportunity, followed by recommendations to accommodate future business and industry development in the Livingstone Shire. 8.1 Assessment of the Pineapple Patch Site (Area A) The Pineapple Patch site, which is located south-west of Yeppoon on the Rockhampton Road, mainly contains working pineapple farms. Triangular in shape and largely characterised by gentle slopes with steeper areas to the east, the site is 436.18 hectares in area.18 Although the Pineapple Patch site is currently used for agricultural purposes, investigations undertaken as part of the original scoping study showed that the land is, in fact, relatively marginal for this use. The site is zoned Rural A under the current Livingstone Shire Planning Scheme (see Figure 14).19 Table 4 provides an overview of site attributes and constraints as observed by the consultants. 18 19 Area A also contains some dwellings. A bulk soil and gravel retail outlet is being developed on Yeppoon Road. Livingstone Shire Council is in the process of preparing a new planning scheme for the Shire. The findings of this review of the original Business/ Industry Scoping Study will help to inform the preparation of the new scheme. SGS Economics and Planning Pty Ltd Page 69 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 14: Land Use Zoning – Area A and Surrounds SGS Economics and Planning Pty Ltd Page 70 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 4: Site Assessment, Area A Key Attributes: 9 9 9 9 Topography is conducive to development: The site is characterised by gentle slopes generally less than 5%, except for the eastern escarpment, which drops steeply down to the coastal plain and foothills. Proximity to inter-regional transport routes (road and rail): With the Yeppoon Road (a sealed arterial road) and the railway line forming its northern border, the Pineapple Patch site is well located with respect to regional transport. Area A could accommodate heavy industries that require good access to inter-regional transport routes and which generate heavy traffic movements. Heavy traffic can access the site from the south and from the north while avoiding the congested urban area of Yeppoon. Proximity to compatible land uses: A substantial parcel of land to the south west of the site is already zoned for (heavy) industry purposes. Removed from conflicting land uses: The site is removed from the established urban area of Yeppoon with rural and semi-rural uses to the south and east. The site is located in close proximity to the existing Yeppoon landfill and the proposed sewerage treatment plant adjacent to Area A. (This land is owned by Livingstone Shire Council). The required 800 metre buffer around the treatment plant should not restrict heavy industrial development. Constraints: 8 Close to Yeppoon town entrance: The site is located on the main highway (Yeppoon Road) as traffic enters the Yeppoon urban area. It is highly visible to passing traffic. Heavy industrial development at gateway to Yeppoon would detract from the visual amenity of the shire. (Consideration should also be given to the large number advertising billboards that are currently placed along Yeppoon Road prior to entry to the town, and pressure for more advertising space alongside future industrial development). 8 Lack of basic infrastructure: Basic infrastructure, such as water and sewerage, is not available and would require substantial investment for industrial purposes. 8 Steep slopes and visual impact on residential areas: There are steep slopes on the eastern side of the Pineapple Patch site visible to residences on the coast (see Figure 15). SGS Economics and Planning Pty Ltd Page 71 Livingstone Shire Council Review of the Business/ Industry Scoping Study SGS Economics and Planning Pty Ltd Page 72 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 15: Land Use Constraints – Area A and Surrounds SGS Economics and Planning Pty Ltd Page 73 Livingstone Shire Council Review of the Business/ Industry Scoping Study 8.2 Assessment of the Taranganba/ Tanby Road Site (Area B) Area B, covering 322.25 hectares, consists of three lots, with the largest parcel of land (300 hectares) fronting Taranganba Road and two smaller parcels of around 10 hectares each, one fronting Tanby Road and one fronting Taranganba Road. The site is in the vicinity of an established urban area. Land to the south-east is largely undeveloped and has an eastern aspect overlooking the ocean. The site's western boundary abuts a number of 10 hectare Rural B zoned lots along Tanby Road. Land to the south is largely undeveloped. The large parcel within the site is currently zoned Rural. The smaller parcel in the north of the site, abutting Tanby Road, is zoned Residential A allowing for the development of approximately 80 lots (see Figure 16). Table 5 provides an overview of site attributes and constraints as observed by the consultants. Table 5: Site Assessment, Area B Key Attributes: 9 9 Location: The locational features and characteristics of the site make it suitable for a wider range of urban uses other than industrial development. Proximity to established urban development makes the site conducive to light commercial activities and a mix of other uses, including general service industries, recreational and educational uses. (The site abuts established residential development, including the Taranganba School that adjoins the site). Infrastructure: The site can be easily serviced with water, sewerage and access to roads. Constraints: 8 8 SGS Economics and Planning Pty Ltd Potential for conflicting land uses: The site’s proximity to urban development to the immediate north makes it unsuitable for heavy industry uses. The site also abuts ten rural residential lots to the immediate west on Tanby Road. Visual impact on residential areas: The site’s eastern ridge is highly visible to residential areas making it unsuitable for industrial activities that detract from the aesthetic amenity of Yeppoon. Page 74 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 5: Site Assessment, Area B (cont’d) Constraints: 8 8 8 Poor transport access: The site is not well located in regard to main highway access. Access to the site is via Taranganba Road, which is a local collector road, subject to upgrading. This is not suitable for heavy industry that generates substantial and heavy traffic movements. Tanby Road, which is a sealed arterial road, lies adjacent to the site. However, access from the west may impact upon the amenity of residents along Tanby Road. Flood prone land: According to the site constraints analysis undertaken as part of the original Scoping Study, there are portions of floodprone land in the north of the site, forming the headwaters of Ross Creek. Basic infrastructure: Provision of water and sewerage requires extension of existing services to the site. Site constraints of Area B are shown in Figure 17. 8.3 Assessment of the Emu Park Industry Node (Area C) The Emu Park industrial precinct covers an area of 112.83 hectares. It is separated from the established town of Emu Park by the town’s air strip, which is used by a small number of ultralight aircraft, mainly for recreational purposes. The site comprises the former Department of Lands subdivision of ten industrial allotments. There are currently six general service businesses operating out of Area C included in the light industry zone. (Activities include welding/ metal fabrication, housing materials (awnings), auto maintenance and repairs and equipment hire (earthmoving). Livingstone Shire Council owns four of the allotments in Area C. The area has exposure to Emu Park Road. The south-western portion of the site is currently zoned Special Purpose. Six of the blocks within the site’s existing subdivision are zoned Light Industrial. Land to the north of the industrial subdivision is zoned Rural A and the former rifle range to the south west is in the Special Purpose zone. Land use zoning for Area C and surrounds is shown in Figure 18. Table 6 provides an overview of site attributes and constraints as identified as part of this review. SGS Economics and Planning Pty Ltd Page 75 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 6: Site Assessment, Area C Key Attributes: 9 9 9 Land already designated for commercial use: The site consists of a core area of established light industrial activities on six lots as designated in the current planning scheme. Removed from conflicting (residential) land use: The sewerage treatment plant, golf course, cemetery and wetlands to the south of the site preclude urban development. The northern portion of the site is also precluded from intensive urban development due to an extensive wetland area. The airstrip to the immediate east provides a buffer between Area C and the town of Emu Park. Capacity to accommodate future development: The existing lots could be subdivided to accommodate a range of commercial uses if necessary. Only three of the light industry zoned lots are occupied by industrial activities at present and Livingstone Shire Council owns four lots on Area C. The airstrip also provides scope for future industrial development (subject to an adequate buffer being established between the urban area to the east). Constraints: 8 Lack of basic and essential infrastructure: Area C is unserviced with reticulated water and sewerage infrastructure. 8 Poor internal road access: The site does not contain sealed roads. 8 Limited exposure: The location of commercial operators in the existing industrial area within the site is removed from passing traffic along Emu Park Road. 8 Poor transport access: The site is not well located in regard to main highway access, making the site unsuitable for industry that generates substantial and heavy traffic movements and which requires relatively easy access to inter-regional transport routes. SGS Economics and Planning Pty Ltd Page 76 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 6: Site Assessment, Area C (cont’d) Constraints: 8 Underutilised Land: The airstrip, which abuts the eastern side of the site is heavily underutilised. There are currently a small number of ultra light aircraft using the airstrip on an irregular basis for recreational purposes. The airstrip is not maintained to the standards of the national aviation authority. 8 Acid sulphate soils: The need to address the presence of acid sulphate soils adds to unknown costs of development on the site. 8 Land use conflicts: The proximity of the site to sensitive wetlands and remnant vegetation to the north constrain the level of development suitable to Area C. Medium to heavy industrial activities would increase the risk of impact on these wetlands. 8 Visual impact on residential areas: The southern portion of the site is highly visible to the town of Emu Park. Any substantial industrial development would adversely impact on the visual amenity of Emu Park and detract from the area’s lifestyle appeal. 8 Majority of land is unsuitable for industrial development: Due to the visibility impacts and proximity to natural wetlands, much of the land within Area C is not suitable for industrial development. The only large tract of flat land is the existing airstrip. 8 Community opposition to industrial development: According to local stakeholders consulted as part of this review, previous attempts to develop the industrial profile of Emu Park have been strongly opposed by the local community. However, deterring medium to heavy industrial activity is consistent with good town planning principles and the community’s desire to preserve Emu Park’s lifestyle attributes. SGS Economics and Planning Pty Ltd Page 77 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 16: Land Use Zoning – Area B and Surrounds SGS Economics and Planning Pty Ltd Page 78 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 17: Land Use Constraints – Area B and Surrounds SGS Economics and Planning Pty Ltd Page 79 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 18: Land Use Zoning – Area C and Surrounds SGS Economics and Planning Pty Ltd Page 80 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 19: Land Use Constraints – Area C and Surrounds SGS Economics and Planning Pty Ltd Page 81 Livingstone Shire Council Review of the Business/ Industry Scoping Study 8.4 Qualitative Assessment Industry Opportunities of Business/ The list of business and industry opportunities in Section 6 and Table 1 are subject to a qualitative assessment in Table 7. The purpose of this assessment is to provide broad guidance for the development of designated Areas A, B and C and desired outcomes for land use planning controls on the Capricorn Coast. The assessment criteria are not definitive. Rather, they have been chosen to assist in identifying a preferred location for the business or industry opportunity in the Livingstone Shire. The criteria are as follows: • Link to existing competitive strength(s): As explained in earlier sections of this report, an increasingly globalised and competitive economy has increased the importance for local economies to tap into regional, State and national chains of economic activity. For the business and industry opportunities identified in this study, the stronger the link to regional competitive strengths, the more likely it will succeed. However, rather than replicating activity occurring elsewhere in the region, those opportunities that are likely to succeed are the ones that tap in to and build on the traditional drivers of economic activity through innovation, value adding or filling a niche in the supply chain. • Competition from other Central Queensland regions: Although Livingstone Shire may have the land and resources to accommodate certain industry opportunities, Rockhampton and other parts of the wider region may be better placed to capitalise on the opportunity. This could be due to better locational attributes or closer links to established industry or other factors. Where there is strong competition for opportunities, particular business/ industry developments may be delayed or, may not occur at all in Livingstone Shire. It has been acknowledged that efforts to build on the Livingstone Shire’s traditional employers should be balanced against emerging opportunities associated with the area’s lifestyle attributes. The potential to build on the lifestyle attributes of the Capricorn Coast must also be considered in the assessment of business and industry opportunities.20 20 Section 1.4 of this report provides a detailed discussion on the importance of balancing opportunities that build on the region’s traditional industry strengths with new and emerging opportunities that reflect the ‘lifestyle’ attributes of the Capricorn Coast. SGS Economics and Planning Pty Ltd Page 82 Livingstone Shire Council Review of the Business/ Industry Scoping Study • Locational and infrastructure issues: The previous sub- section of this report considered land resource constraints associated with each of the designated areas in Livingstone Shire. Certain industry opportunities have critical needs in regards to site access, inter-regional transport links and waste disposal systems and buffers. For others, estate design and highway frontage/ exposure is critical. The capacity of the shire to accommodate certain opportunities will depend heavily on the provision of basic infrastructure. For other opportunities however, this may not be an issue. • Compatibility with Livingstone Shire’s strategic planning objectives and lifestyle attributes: The desire of the Livingstone Shire Council and community to preserve and capitalise on the area’s natural features and associated ‘livability’ factors is critical to the assessment of opportunities for business and industry in the shire. Those opportunities that detract from the natural beauty of the Capricorn Coast and its appeal as a place to live, should be discouraged. SGS Economics and Planning Pty Ltd Page 83 Livingstone Shire Council Review of the Business/ Industry Scoping Study Table 7: Qualitative Assessment of Opportunities for Business and Industry in Livingstone Shire Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Agricultural and Forestry Machinery and Equipment Manufacturing • • Could locate in any number of areas, though close proximity to users of agricultural machinery is an advantage. Potential conflict if heavy machinery needs to be transported through urban areas. (Access to quality road networks is critical). Otherwise, no conflict so long as located in designated industry node. 9 Area A • Note: • Agriculture (beef, cotton) Forestry • Buffers required from residential areas. Good access to major road networks is critical. • • Could be located in the south-west or central west of Area A. Visual impacts from Yeppoon Road may need to be addressed. That heavy traffic from the north can bypass the built up urban area to access the site is a distinct advantage. 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 84 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Agricultural and Forestry Machinery and Equipment Repair • Noise generated would require appropriate buffers from residential areas. Could locate in any number of areas, though close proximity to users of agricultural machinery is an advantage. Potential conflict if heavy machinery needs to be transported through urban areas. Otherwise, no conflict so long as located in designated industry node. 9 Area A • • Agriculture (beef, cotton) Forestry Most appropriately located in the west or southwest of Area A. Mining Machinery and Equipment Manufacturing • Mining • Close proximity to users of mining machinery and equipment is an advantage. However, could locate in other regions or precincts. The AMC development at Stanwell near Rockhampton would be a strong candidate due to likely synergies there. Potential conflict if heavy machinery needs to be transported through urban areas. (Access to quality road networks is critical). Otherwise, no conflict so long as located in designated industry node. 9 Area A • Could be located in the south-west or central west of Area A. Visual impacts from Yeppoon Road may need to be addressed. That heavy traffic from the north can bypass the built up urban area to access the site is a distinct advantage. • Note: Buffers required from residential areas. Good access to major road networks is critical. • • 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 85 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Mining Machinery and Equipment Repair • Mining Noise generated would require appropriate buffers from residential areas. Could locate in any number of areas, though close proximity to users of agricultural machinery is an advantage. Potential conflict if heavy machinery needs to be transported through urban areas. Otherwise, no conflict so long as located in designated industry node. 9 Area A • Mining R&D • Mining May require buffers (if using chemicals and noisy processes for testing). Could establish in conjunction with major new mining or processing activities in the region. Small lab based R&D would be compatible with the community’s vision for industries that maintain the lifestyle requirements of the Livingstone Shire. 99 Area A Would be more appropriate to colocate with related industrial activities in order to take advantage of potential synergies. Ore Testing and Analysis • • Mining Metal Product Manufacturing Could establish in conjunction with major new mining or processing activities in the region. Small lab based R&D would be compatible with the community’s vision for industries that maintain the lifestyle requirements of the Livingstone Shire. 99 Area A Would be more appropriate to colocate with related industrial activities in order to take advantage of potential synergies. Note: Most appropriately located in the west or southwest of Area A. 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 86 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Mining Exploration Data Interpretation • Mining Mining and Agricultural Exploration/ Field Support • • Mining Agriculture Mapping Services • • • Mining Forestry Agriculture Note: Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Being close to exploration fields and part of local/ regional industry networks would be an advantage. Use is compatible with maintaining and supporting Livingstone Shire’s lifestyle attributes. 99 Within existing urban area or Area B Relatively small land use/ floor area requirements support the location of this activity in established urban areas should development of Area B not proceed in the foreseeable future. Site should be large enough to accommodate field equipment (e.g. large mining exploration equipment such as drills). Could locate in other areas, particularly where there is a concentration of mining and processing activities. Potential conflict if located close to urban areas. 9 Area A Would be more appropriate to colocate with related industrial activities in order to take advantage of potential synergies. Operating within local/ regional industry networks (close to source) would be advantageous. Could locate in other urban areas within the region. Use is compatible with maintaining and supporting Livingstone Shire’s lifestyle attributes. 99 Within existing urban area or Area B Notable Locational or Infrastructure issues 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 87 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Fruit Processing • Good access to road and rail. Likely to be strong competition from industry nodes closer to the established industry base in Emerald. Would not detract from lifestyle requirements if located in appropriate industry precinct with adequate buffers. 9 Area A • Agriculture • Fruit Processing Equipment Supplies, Repair and Manufacturing • Agriculture Good access to road and rail. Likely to be strong competition from established industry base in Emerald. Would be compatible if appropriately located in industry node. 9 Area A Fruit Handling and Transport/ Distribution • • Agriculture Transport, Warehousing and Distribution Good access to road and rail. Likely to be strong competition from established industry base in Emerald. Would be compatible if appropriately located in industry node. 9 Area A • Large-scale Timber Processing • Forestry • Strong competition from other regions throughout Queensland. Noise and odour emissions may detract from the shire’s lifestyle and tourism appeal. 8 n/a n/a • Note: Good access to road and rail. Adequate buffers. This use could utilise the existing rail siding on Area A. Visual impacts from Yeppoon Road may need to be addressed. Could utilise the existing rail siding on Area A. 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 88 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Small-scale Timber Processing • • Existing mills in the shire and region meet current industry requirements. Forestry • Niche Timber Processing and Value Adding General Service Industry Note: • • Forestry Populationbased sector that feeds off economic drivers/ base industries and lifestyle appeal. Good access to road and rail. Adequate buffers. May require good highway exposure if selling finished product direct from manufacturer. Could locate anywhere in the region. Good highway exposure or in known and readily accessible precinct. No competition, generally serves local market only. Compatibility with Strategic Planning Objectives Small-scale operation would be compatible. Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations 8 n/a n/a 9 Area A • • Would be compatible with serving the essential needs of the local population. 999 Area B and Area C Lack of basic infrastructure would be an issue. Proximity to existing private mill (to the west of Area A) may encourage some synergies. The provision of basic infrastructure, to consolidate the existing industry precinct as the core of future expansion, is critical. 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 89 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Retail – Supermarket • Retail – Department Store Retail – Specialty Note: • • Populationbased sector that feeds off economic drivers/ base industries and lifestyle appeal. Populationbased sector that feeds off economic drivers/ base industries and lifestyle appeal. Populationbased sector that feeds off economic drivers/ base industries and lifestyle appeal. Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations 999 n/a n/a See Section 7.1 for comprehensive retail needs analysis and recommendations for Livingstone Shire 999 n/a n/a See Section 7.1 for comprehensive retail needs analysis and recommendations for Livingstone Shire 999 n/a n/a See Section 7.1 for comprehensive retail needs analysis and recommendations for Livingstone Shire 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 90 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations Tourist Accommodation • Tourism Proximity to attractions. May have minimum building height requirements for project (construction) feasibility and to achieve operational economies of scale. Competitive market generally, though Capricorn Coast has coastal features that inland centres can’t offer. Also faced with competition from other coastal regions throughout Queensland. Environmentally sensitive tourism development is supports the shire’s vision for economic development. 999 Coastal sites throughout the region. (Specific location depends on development requirements/ market factors). Area B could support shortterm accommodation facilities such as a hotel/ motel. Accommodation development on Area B would be extensive rather than intensive, to comply with local height restrictions. Sports/ Recreation • Populationbased sector that feeds off economic drivers/ base industries and lifestyle appeal. Serves predominantly local market. Enhancing the shire’s social infrastructure base supports Livingstone’s lifestyle requirements. 999 Area B and Area C. Recreation and sporting facilities could locate on Area B and Area C to accommodate needs of growing population. Open space can provide buffers between commercial and residential land use. Note: 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 91 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Notable Locational or Infrastructure issues Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Site-specific Considerations IT Service Industry/ Call Centre • • Competition from all over Australia. • 999 Area B or land adjacent to Area B on the corner of Tanby Road and Taranganba Road. (30 hectare parcel of land nominated in original scoping study should be considered). Road access issues may need to be addressed. 999 Built up urban areas. Would help to expose young, skilled people to the Livingstone Shire. 99 Area B Would add to the diversity and depth of skills in the shire. 9 Area B Lifestyle and livability factors are important. • Attractive setting desirable but not critical. Call centre proponents often seek affordable for low set building. • Knowledge/ Home-based Business • Lifestyle and livability factors are important. Good communications infrastructure is critical. Competition from all over Australia. Tertiary Student Accommodation • Education Close proximity to education facilities is highly desirable. Would compete with Rockhampton. Education Research Facility • Education Note: Encourages opportunities for industrial innovation and emerging technologies. Compatible with lifestyle requirements. 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 92 Livingstone Shire Council Review of the Business/ Industry Scoping Study Industry opportunities Link to region/ existing competitive strength Business Incubation Facility (micro-business support) • Education Primary/ Secondary Education Facility • Education Notable Locational or Infrastructure issues Determined by population requirements. Competition from other Central Queensland regions or localities Compatibility with Strategic Planning Objectives Overall Assessment Likely location in the Livingstone Shire Would compete with Rockhampton. Would add to the diversity and depth of skills in the shire. 9 Area B Serves predominantly local market. Quality education facilities are critical to any region’s lifestyle appeal. 9 New facility not required in the short-term. However, likely location (in the medium-term) would be in high growth area of Yeppoon/ Taranganba. See Section 5.2.11 for commentary on educational facility requirements Note: Site-specific Considerations 999 = Livingstone Shire is a very strong candidate area 99 = Livingstone Shire is a strong candidate area but other candidate areas exist 9 = Livingstone Shire is one amongst other candidate areas 8 = Not suitable for Livingstone Shire SGS Economics and Planning Pty Ltd Page 93 Livingstone Shire Council Review of the Business/ Industry Scoping Study 8.5 Recommendations Industry for Business and As explained in the introduction to this report, there is a strong desire within the community to maintain Livingstone Shire’s high quality natural environment and its lifestyle attributes, while accommodating a variety of small, environmentally friendly industries established in appropriate locations. Consideration of this underlying objective, coupled with an understanding of Livingstone Shire’s ‘place’ in the regional economy, determines the need to identify those business and industry activities that can support the development of a diverse and robust local economy. The preceding analysis suggests, in broad terms, the following priorities for Livingstone Shire: • • • • • Information Technology (IT) Service Industry. Knowledge-driven Home-based Business Activity. Tourist Accommodation. Higher Order Business and Technical Services to Mining, Manufacturing and Agriculture. Education and Related Services. Community services such as retailing, general service industry and health are driven largely by the size and needs of the local population. This study has made specific recommendations about the need for local retail facilities, general service industry and local education services. These recommendations, along with commentary on the currency and adequacy of Study Areas A, B and C is summarised as follows. Retail According to the retail analysis undertaken as part of this study, supply and demand for district level retail floorspace is in broad balance at the present time (i.e. 2001). Yeppoon will be able to support an additional 8,000 sqm of retail floorspace by about 2014. This could comprise a full line supermarket (e.g. 5,000 sqm) plus 30 specialty shops or a small discount department store. Population forecasts suggest that a new supermarket could be required in about 8 years from now (i.e. 2009/10). The original scoping study proposed the reservation of a 30 hectare parcel of land adjacent to Area B for the establishment of a new supermarket by around 2003. However, using revised population forecasts from the Planning Information and Forecasting Unit (PIFU), and considering the current retail floorspace needs of the area, it is advised that the reservation of land for the development of a full-line supermarket in the next SGS Economics and Planning Pty Ltd Page 94 Livingstone Shire Council Review of the Business/ Industry Scoping Study few years (i.e. by 2003) is not warranted. To this end, the proposed 30-hectare parcel of land at the intersection of Tanby Road and Taranganba Road need not be designated in Livingstone’s new planning scheme for the purpose of anticipated retail development. However, this land would be suitable for the location of an IT service centre/ call centre facility or similar low impact business activity. The development of a supermarket or discount department store to the south of Area B, at the intersection of Tanby Road and the future east-west arterial should not be considered in the mediumterm. Council’s strategic planning objectives highlight the desire to consolidate retail activities in the existing urban centre of Yeppoon wherever possible. While there is no short-term need to reserve land for a supermarket of similar facility, it is recommended that Council continues its discussions with QR regarding options for the existing Yeppoon rail terminal in the medium to long-term. Depending on industry developments, the requirements of QR and its customers may change over the next decade. The Pineapple Patch site (Area A) should continue to be considered as a possible alternative location for Yeppoon’s rail terminal, potentially serving the transport and distribution needs of a range of possible industrial uses proposed that would be appropriate on that site (see below for commentary on Area A). Education A parcel of land on the north-eastern corner of Tanby Road and Taranganba Road has been previously nominated as the site for a future high school. Based on discussions with Education Queensland and an analysis of population forecasts provided by PIFU, it can safely be assumed that the Livingstone Shire will require an additional primary school and a high school in the medium to long-term (i.e. 15 years). While a detailed consideration of alternative sites would be required as part of a full needs assessment, it is likely that a future school facility would be most appropriately located close to residential convenience in the Yeppoon/ Taranganba area. According to PIFU, between now and 2014, population growth in Yeppoon is projected to account for more than one-third of Livingstone Shire’s total growth. Around 30% of the growth is expected to occur in the Hinterland (tidal, coastal and rural) locality, while the remaining localities account for relatively small shares of projected population growth. It is recommended that the parcel of land on the north-eastern corner of Tanby Road and Taranganba Road be reserved as Special Purpose to accommodate a secondary or P-12 school in SGS Economics and Planning Pty Ltd Page 95 Livingstone Shire Council Review of the Business/ Industry Scoping Study the medium term (15 years).21 Commentary on tertiary education and related opportunities is made below. Designated Area A (Pineapple Patch) As highlighted in Section 8.3, the topography of the Pineapple Patch site, and its distance from the established urban areas of Yeppoon, makes the area conducive to land extensive industrial development. The most appropriate development zone is in the west and south-west of the site, away from the site’s eastern slopes, which are visible from the coast. The type of medium to heavy industrial activities that have been identified that would be appropriate to the Pineapple Patch site include: • • • • • Mining and Agricultural Machinery and Equipment Manufacturing and Repairs. Technical Services to Mining (R&D, ore testing, exploration field support). Small-scale Fruit Processing. Transport, Storage and Distribution. Small-scale/ Niche Timber Processing and Value Adding (e.g. furniture manufacture). These uses would be compatible with nearby industrial land uses to the north and west of Area A. Before any development proceeds on the site, essential infrastructure would need to be provided. If it does proceed, heavy industrial development would need to address potential visual impacts on the Yeppoon Road. Heavy industrial development in Area A is a medium-term proposition at best. This is due to a range of factors, including infrastructure issues, Council’s and the community’s vision to maintain the natural features and lifestyle attributes of the shire, Livingstone’s ‘place’ in the regional economy and likely competition from other heavy industry nodes. Discussions held with a number of representatives of the Department of State Development indicated that heavy industry would not be actively pursued in Livingstone Shire. These discussions also suggested that the take-up of industrial land in the sub-region has been and will continue to be relatively slow. The development of light or medium industry in Area A would be a longer-term proposition, given the site’s removal from the established urban area of Yeppoon and the lack of infrastructure. It is recommended that at this point in time, Area A need not be designated for industrial purposes. However, the potential for medium to long-term development (15 – 20 years) suggests that, while the existing rural zoning should remain, the site should be 21 Preschool to Year 12. SGS Economics and Planning Pty Ltd Page 96 Livingstone Shire Council Review of the Business/ Industry Scoping Study considered for future industrial development of an acceptable nature. Designated Area B (Taranganba/ Tanby Road) The location of Area B, as the natural extension of urban development from the immediate north makes it unsuitable for heavy industrial development. Poor transport access to the south of the site and visual impacts along the eastern boundary also detract from this type of development. As highlighted in the original scoping study, the northern portion of Area B, close to established residential development and associated community facilities (education, open space), makes it well suited for light business/ commercial development to serve the local population (i.e. a district integrated employment centre serving the needs of Yeppoon and the shire population). Such a concept is supported by the findings of this review. Population projections for the Livingstone Shire, a third of which is expected in the Yeppoon district, supports the concept of Area B serving as a natural extension to residential development from the north and north-east. However, the retail analysis in Section 7 of this review shows that, at present, retail demand and supply is in balance. Population forecasts, while healthy, suggest that a full-line supermarket would not be required for at least another eight years (i.e. 2009/10). For this reason, the proposal to reserve a parcel of land adjacent to Area B for retail development is rejected. This area is suitable for low impact, light, high tech service industry such as an information technology (IT) service centre/ call centre. Other activities that are consistent with this concept include tertiary education facilities such as student accommodation, research facilities and business incubation facilities. These opportunities reflect the region’s strength as a provider of education services, and the continued and anticipated growth of this sector nationally. Short-term (hotel/ motel) accommodation would also be suitable to the Taranganba/ Tanby Road industry node. These facilities could be integrated with education and research activities in this precinct as well as providing accommodation for short-stay tourists to the Capricorn Coast. The opportunity to secure the low lying land in the northern portion of Area B (the headwaters of Ross Creek) for recreational use, as put forward in the original scoping study, is supported. The parcel of land on the north-western corner of Tanby Road and Taranganba Road should be reserved to accommodate a secondary or P-12 school in the medium term (15 years). The Business/ Industry frame area for Yeppoon, which incorporates the recommendations made in this report, is illustrated in Figure 20. SGS Economics and Planning Pty Ltd Page 97 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 20: Business/ Industry Frame Area - Yeppoon SGS Economics and Planning Pty Ltd Page 98 Livingstone Shire Council Review of the Business/ Industry Scoping Study Designated Area C (Emu Park) The consultants’ research and consultations held with various public and private sector stakeholders during the course of this study support the need for designated land for the current and future general service industry requirements of the population of Emu Park. Future expansion of general/ light commercial activities in Emu Park should build on the established industrial precinct within Area C. This would support Livingstone Shire Council’s objectives for consolidated industrial activity in appropriate nodes. However, as highlighted in Table 6, the lack of basic and essential infrastructure at the Emu Park industry node is a deterrent for investment from existing or potential new businesses in the area. Despite the new licensing provisions of the Environmental Protection Act, anecdotal evidence suggests that there are numerous ‘backyard operators’ engaged in dirty and noisy business activities within Emu Park’s established residential areas. The continuation of these activities detracts from the lifestyle image of Emu Park. Home-based activities that should be encouraged throughout the shire are those ‘knowledge-based’ activities referred to in Section 5.2.10 of this report, that meld with surrounding residential areas. Future light industrial development should be encouraged to consolidate around the existing precinct at Emu Park through Council’s statutory planning mechanisms. It is recommended that Council invest in the provision of basic infrastructure (water, sewerage and power) to the Emu Park industry precinct. Investment in the precinct’s internal road network is also required. Coupled with appropriate directional signage, this will provide better access and improve customers’ awareness of the precinct. An infrastructure charge under the Integrated Planning Act would help to recoup Council’s cost of infrastructure provision. While the rifle range in the eastern portion of Area C was previously mooted for industrial development, it was decided by Council not to proceed as the site is highly visible from the Emu Park Road and in close proximity to an existing residential area. Instead, it is recommended that a suitable portion of land on the former rifle range site be established as a dedicated recreational reserve, so that it provides a buffer between the industrial estate and residential development to the west as well as adding to the shire’s recreational assets. The original scoping study proposed that the airstrip be considered a longer-term possibility for the expansion of light industry in Area C. The airstrip is currently used by a small number of ultra-light aircraft, mainly for recreational purposes. In its current condition, the airstrip does not meet national aviation authority safety standards. It is unlikely that the airstrip will develop to accommodate more frequent use in the future SGS Economics and Planning Pty Ltd Page 99 Livingstone Shire Council Review of the Business/ Industry Scoping Study unless there is substantial investment in the facility. Irrespective, any growth in the region’s air freight traffic and passenger movements would occur at Rockhampton Airport where the necessary threshold investments have already been made. There are also a number of other airfields of a more developed capacity in the region to accommodate any increase in light aircraft traffic in the region. It is recommended that the airstrip be maintained as Special Purpose land in its current use until future industrial development (in the medium to long-term) warrants potential relocation of the airstrip and upgrading of the land to accommodate such development. The Business/ Industry frame area for Emu Park is illustrated in Figure 21. SGS Economics and Planning Pty Ltd Page 100 Livingstone Shire Council Review of the Business/ Industry Scoping Study Figure 21: Business/ Industry Frame Area – Emu Park SGS Economics and Planning Pty Ltd Page 101 References Argo Consulting, “Dwelling Commencement Trends for Livingstone Shire”, January 1998 Argo Consulting, “Population Trends for Livingstone Shire”, January 1998 Australian Bureau of Statistics, “Household Expenditure Survey Summary of Results, 1998-99”, Cat. No. 6530.0 Australian Bureau of Statistics, “Queensland Year Book 1997”, Cat. No. 1301.3 Australian Bureau of Statistics, “1996 Census of Population and Housing”, unpublished data Australian Bureau of Statistics and Department of Statistics New Zealand, “Australian and New Zealand Standard Industrial Classification 1993 Edition”, ABS Cat. No. 1292.0 Australian Bureau of Statistics, “Retailing in Queensland, 1991-92”, Cat. No. 8623.0 Bureau of Tourism Research, “National Visitor Survey”, 2000 Capricorn Coast Tourist Organisation, unpublished data, 2001 Central Queensland Regional Organisation of Councils, “Strategic Plan”, Revised August 2000 CQ A New Millennium, “CQ A New Millennium Regional Growth management Framework Policies Only (Draft)”, August 2001 CQ A New Millennium, “Infrastructure Technical Paper”, May 2001 CQ A New Millennium, “Economic Development Technical Paper”, May 2001 CQ A New Millennium, “Knowledge and Information Technical Paper”, May 2001 CQ A New Millennium, “Key Issues in Planning for Central Queensland’s Future (Draft)”, August 2000 Livingstone Shire Council, “Livingstone for Lifestyle, Corporate Plan 2001/2006” Livingstone Shire Council, “Living in…Livingstone, Statement of Proposals for a new Planning Scheme for Livingstone Shire”, April 2001 Livingstone Shire Council, “IPA Planning Scheme Minutes of Policy Directions Workshops”, 23 November and 14 December 2000 Planning and Information Forecasting Unit, Department of Local Government and Planning, “Demographic and Housing Profile for Livingstone Shire and its Localities 2001”, March 2001 Urban Strategies et al., “Livingstone Shire Industry/ Business Scoping Study”, February 1998 Appendix A: People Consulted During the Course of the Study Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix A Appendix A: People Consulted During the Course of the Study The consultant team would like to acknowledge the contribution of local and regional stakeholders who contributed their views and knowledge during the course of the study. They are: Business/ Industry Focus Group Members: • • • • • • • • • • • • • • • • • • Frank Beckinsale, Developer Col Carige, Tarangabah Estates Pty Ltd Denise Christensen, Practical Development Consultants John Christensen, Resident Mick Cranny, Farmer/ Developer Yeppoon Patrick Cranny, Investor Bret Heath, Resident Patricia Martin, Beaches Australia Real Estate, Emu Park Tony McGregor, Keppel Bay Plaza Susan McGregor, Resident Graham Miller Ian McMurtrie, Engineer John Noller, Builder, Yeppoon Joan Noller, Resident Keith Ruskin, Emu Park Engineering Ravi Setu, Lancehurst Pty Ltd Glen Sherrat, Emu Park Motel Roger Toole, Flexihire Other Business/ Industry Representatives: • • • Bob Logan, Yeppoon Chamber of Commerce John Major, Developer Michael McGuinness, Rockhampton Enterprise Ltd Livingstone Shire Councillors: • • • • • • • • • Cr. Mary Carroll Cr. Brian Dorey Cr. Bill Ludwig (Mayor) Cr. Thomas Maguire Cr. Jean McRuvie Cr. Michael Prior Cr. Desley Rial Cr. John Smith Cr. Maurice Webb SGS Economics and Planning Pty Ltd Page A-1 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix A Yeppoon Developers’ Forum Attendees: • • • • • • • • • • • • • • • • • • • • • • • Les Brooks, AJ & MK Hoffman Pty Ltd, Surveyors Geoff Cue, Development Mick Cranny, Farmer/ Development Patrick Cranny, Investor Chris Dadson, Great Barrier Reef International Resort Kevin Doolan, The Professionals, Emu Park Charlie Finch, Surveying Consultant Taku Hashimoto, Iwasaki Sanyo Co. Pty Ltd Scott Kilpatrick, Affordable Quality Homes Alf Klerkx, Consulting Surveyor Mac Kuwarzuru, Iwasaki Sanyo Co. Pty Ltd Dave Larkin, Mochaley Pty Ltd Tony Madden, Tony Madden Architects Peter Man, Elders Yeppoon Noel Marriott, Bayview Realty John Martin, Capricorn Adventist Retirement Village Trevor McCubbin, QMBA John Millroy, The Club Estate Ralph Olive, Olive Estate June Oliver, Karadale Nominees Neil Roberts, Neil Roberts Architect Pty Ltd Graham Scott, Graham Scott & Associates Engineers Ravi Setu, Lancehurst Pty Ltd Livingstone Shire Council Staff and Consultants: • • • • • • • AJ Brown, CEO Linda Hine, Development and Environment Gary Murphy, Civil Operations Kim Polkinghorne, Development and Environment Melissa Simpson, Development and Environment Maaret Sinnko, Argo Consulting Danny Toon, Commercial Services Other Government Agencies and Statutory Bodies: • • • • • • • • • • • Mary Carroll, Capricorn Coast Tourist Organisation Brad Carter, Department of State Development, State Development Centre Rockhampton Chris Hewitt, Queensland Department of Main Roads, Rockhampton Linda Minnery, Education Queensland Liz Orupold, CQ A New Millennium Ron Parker, Department of State Development, Brisbane Kate Rose, Central Queensland Regional Organisation of Councils Angus Russell, Department of State Development, State Development Centre Rockhampton Henry Scheuber, Queensland Rail, Rockhampton Alison Taylor, Planning Information & Forecasting Unit (PIFU) Sharon Waddell, Queensland Rail, Brisbane SGS Economics and Planning Pty Ltd Page A-2 Appendix B: Consultation Feedback Form and Associated Information Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Appendix B: Consultation Feedback Form and Associated Information During the course of this review, consultation was undertaken with local industry stakeholders via the following means: • Presentation and discussion at an Industry Focus Group meeting in Yeppoon. • Presentation to a Council-organised Developers’ Forum. • Face-to-face consultation with business representatives. • Face-to-face consultation with representatives of government agencies in the region. • Distribution of a phone/fax questionnaire to business representatives. Copies of the consultation feedback forms used during the study are contained herein. SGS Economics and Planning Pty Ltd Page B-1 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Business/ Industry Scoping Study for the Livingstone Shire Focus Group Stakeholder Feedback Livingstone Shire Council Do you have any specific views or comments concerning opportunities for the development of Business & Industry in the Livingstone Shire, in particular, the considerations made in the consultants’ preliminary assessment of opportunities? (See pages that follow for preliminary list of opportunities). Your insights will help us to prioritise business and industry opportunities for the Livingstone Shire. Alternatively, you may have other related matters/ issues that you wish to raise concerning your particular area of interest. This will also assist us in making our final recommendations to Council. Please provide your comments below and fax this sheet back to the consultants, SGS Economics and Planning on Facsimile 3358 4287 by Monday 26th November 2001. Comments…………. (Please make further comments on separate sheet provided and attach to your fax if necessary). Would you like SGS to call you direct? Yes No (Please indicate below) If Yes, please briefly indicate issue(s) you wish to discuss in the space provided SGS Economics and Planning Pty Ltd Page B-2 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Comments…………. SGS Economics and Planning Pty Ltd Page B-3 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Business/ Industry Scoping Study for the Livingstone Shire Preliminary Business & Industry Opportunities Study Process and Status: The long list of (broad) business and industry opportunities for the Livingstone Shire (as shown on the following page) has been identified by the consultants. We are presently giving more detailed consideration to these opportunities and specific activities within each of these areas. This involves our assessment of the key requirements of identified business/ industry activities (e.g. location, critical infrastructure, access to suppliers, access to markets, etc.). It also requires our consideration of the capacity for Livingstone’s economy and its business and industry nodes to accommodate such activities. In doing this, we are giving due consideration to potential competition for these activities from neighbouring areas (such as Rockhampton). We are also considering any constraints and key issues associated with the industry nodes being considered as part of the review. As you may be aware, the three industry nodes that have been identified for the study are defined as: • Area A: the Pineapple Patch site at Bondoola • Area B: the Taranganba/ Tanby Road site • Area C: the Emu Park industrial area Maps showing these areas are attached. Any comments you have in relation to Livingstone Shire’s/ the Capricorn Coast’s capacity to accommodate new and emerging industry opportunities are encouraged. Any comments you have on existing business and industry issues and the key sites being considered are also sought (e.g. location, access issues, critical infrastructure, environmental issues, community issues, etc.). Your comments should be faxed to SGS via the feedback form provided. The (Preliminary) Opportunities: Identification of Business and Industry Listed on the following page are the broad opportunities that have been identified for future business and industry development in the Livingstone Shire. They reflect the consultants’ research and analysis of local and regional socio-economic features and trends, broader economic influences, our consultation and discussion with key stakeholders. Examples of the sorts of specific activities being considered are provided in brackets under each broad opportunity. The opportunities are not listed in any order of priority. SGS Economics and Planning Pty Ltd Page B-4 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Business and Industry Opportunities for Livingstone Shire: Retail/ General Service Industry (Personal/ household goods & services, automotive sales and repairs, marine sales and repairs, equipment hire, printing and packaging, construction activities) Tourism/ Recreation, Leisure & Entertainment (Tourist Accommodation, sport and recreation facilities) Professional Services, IT, Knowledge Based Industry (Marketing, other business services, home based business activity, call centres, technology parks) Education, R&D (Secondary, tertiary, other/ specialist education, business incubators) Machinery and Equipment Manufacturing & Repair (Mining and Agricultural Machinery) Specialist Services to Mining (R&D, ore testing, exploration, mapping services) Specialist Services to Agriculture (R&D, field support services, management services) Food Processing (Fruit processing, food storage and transport) Timber Processing (Large-scale timber processing, small-scale and niche timber processing) SGS Economics and Planning Pty Ltd Page B-5 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix B Business/ Industry Scoping Study for the Livingstone Shire Study Background and Objectives Background: In 1997, Livingstone Shire Council commissioned the preparation of a Business/Industry Scoping Study for the Livingstone Shire. Following its completion, the study was amended in 1998. It is the view of Livingstone Shire Council that a review of the Scoping Study is necessary to reflect recent changes to the business and industry sectors in the Fitzroy Region, and the intentions of Council’s new IPA Planning Scheme, as indicated in the recently released Statement of Proposals. Objectives: In summary, the objectives of the review are: Include discussion on: Current trends in business activity in the region. Industry opportunities to complement established sectors in the region. Assess mix of business and industry best suited for the Capricorn Coast. Review currency and adequacy of Study Areas A, B and C in the Business/ Industry Scoping Study (trends, needs, issues, constraints). Comment on: Relocation of the business/industry node to Taranganba/Tanby Rd. The requirements of the Emu Park and Yeppoon business and industry sectors. All business and industry nodes (A, B and C) in terms of location and area SGS Economics and Planning Pty Ltd Page B-6 Appendix C: Livingstone Shire’s Strategic Planning Framework Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix C Appendix C: Livingstone Shire’s Strategic Planning Framework Council’s Vision for Business and Industry As noted in Section 1 of this review, the Business and Industry Scoping Study responds to Livingstone Shire Council’s Mission Statement and its vision for the economic development of the shire. Livingstone Shire Council’s Corporate Plan 2001/2006 states that Council’s goal for economic development is: To stimulate economic growth and encourage investment in the shire, while maintaining the lifestyle requirements and integrity of our community. Essentially, this entails a desire to maintain Livingstone Shire’s high quality natural environment and its lifestyle attributes, while accommodating a variety of small, environmentally acceptable industries establishing in appropriate locations in to the future. The facilitation of business and industry development in the shire and in the industrial nodes described in the Scoping Study (Areas A, B and C) should reflect these objectives. Land Use Planning Framework Livingstone Shire Council is currently in the process of reviewing its Planning Scheme. Consistent with the requirements of the Integrated Planning Act (IPA), a Statement of Proposals for the new planning scheme has been prepared. The Statement of Proposals raises a number of issues and identifies a number of opportunities concerning business and industry development. These include: • • • • • • The need for a resource of adequate serviceable land in Livingstone for the future development of business and industry. Ribbon development along major transport routes has the potential to deflect business from main business centres and reduce amenity, noticeably at the entrance of towns. The need for a diverse industry base to work with the existing industry and business to encourage young, skilled career-oriented people to stay in the shire. Increase the depth of retail business to capture the loss of spending to other areas outside the shire. Ensure Yeppoon is the preferred location for office, retail and community service developments. Provide opportunities for technological development, industrial innovation, emerging technologies and commercialisation of new products. Provide readily serviced reserves of land in appropriate locations that will attract preferred industries. It is suggested that consideration be given to the possible relocation of the rail and bulk loading terminal outside the Yeppoon CBD to allow for expansion to the north and CBD expansion. SGS Economics and Planning Pty Ltd Page C-1 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix C • • Investigate options for mixed-use development and cluster activity. Protect and enhance the function of rail and road networks. If possible, integrate road and rail at an appropriate terminal. Protect the function of rail infrastructure to meet the rural industry and freight demands. Investigate a western transport corridor to relieve congestion from CBD and Anzac Parade. SGS Economics and Planning Pty Ltd Page C-2 Appendix D: Industrial Developments and Prospects in Central Queensland Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix D Appendix D: Industrial Developments and Prospects in Central Queensland The Rockhampton Area There has been significant expenditure and commitment to expenditure on strategic infrastructure in the Rockhampton sub-region’s key sectors of economic activity. As evident from the following list of projects, Rockhampton is a major service hub for industrial activity throughout the wider region, with much of the recent and planned activity focussed on transport, warehousing and distribution, education, R&D and community services. Substantial investments in major metal product processing activities are also planned for the Rockhampton area. Due to its proximity, these developments perhaps have the most significant implications for business and industry development in the Shire of Livingstone. Metal Product Manufacturing • • The $1.2 million AMC Magnesium Metal Processing Plant at Stanwell (new equity raising is currently under way following State and Federal Government commitment). $739 million Marlborough nickel mine and processing plant (not yet committed). Mining • • • • Pieces Coal Project – North of Blackwater – Stanwell Corporation Ltd – EIS process commenced. Oaky North Coal Mine (MIM Holdings Limited Group) Valeria Coal Deposit (Pacific Coal Pty Ltd) Togara North Coal Mine (Dongbu Australia Pty Ltd) Meat Processing • • CMG Meatworks $25 million upgrade to increase output and value added services (early stages complete). Gracemere Saleyards Redevelopment – Gracemere Saleyards Board (associated with, but not limited to, events facilities project, i.e. $18 million Rockhampton City Events Facilities (not yet committed)). Transport, Warehousing and Distribution • • • $18.5 million expenditure in 1998–99 on major coal wagon upgrades at the Rockhampton rail workshops; Rail network improvements for freight traffic as part of the $250 million up-grade to the line between Rockhampton and Townsville. $1.7 million to complete development of the $23.3 million Queensland Rail Workshop Centre of Excellence at Rockhampton. SGS Economics and Planning Pty Ltd Page D-1 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix D • • Extensions to Rockhampton Airport at a cost of $7 million (completed to current stage of development). Melbourne to Darwin Inland Rail Feasibility Study. Water • Lower Fitzroy Water Infrastructure Planning – Local Government Liaison Committee (Livingstone, Fitzroy, Rockhampton and Mt Morgan) and the Department of Natural Resources and Mines. Health and Community Services • • $26.2 million Rockhampton Base Hospital Upgrade (under construction). $89 million new medium security prison north of Rockhampton (completed). Research, Education and Training • $11.4 million Central Queensland Institute of TAFE engineering technology facility. The Gladstone Area Gladstone is a centre of heavy industrial activity in Central Queensland. Industrial activities include aluminium smelting - Boyne Smelters Limited operates a major smelter at Boyne Island in the Port of Gladstone. The smelter produces 490,000 tonnes per annum. The world’s largest alumina refinery is also located at the Port of Gladstone and it produces 3.5Mt per annum. Chemicals processing is also strong in Gladstone. Orica Australia Pty Ltd produces sodium cyanide and liquid cyanide for use in gold extraction, chlorine for water treatment and nitric acid for the production of ammonium nitrate. Ticor Chemical Company Pty Ltd also produces sodium cyanide and caustic soda. Queensland Cement Limited produces over 1.6 million tonnes per annum of clinker and cement from locally sourced limestone. Current and planned projects in the Gladstone area that have a bearing on business and industry prospects in the Shire of Livingstone include the following. Power Generation • • • Construction of two 420 megawatt coal fired generating units by Shell Coal and CS Energy Limited at an estimated cost of $800 million (Callide “C” at Biloela) (completed). Construction of Callide pipeline to bring water from Awoonga Dam to the Callide Power Station ($40 million to $45 million). $2.4 billion (Australian component) PNG Gas Pipeline project, extending from gas fields in Papua New Guinea to Gladstone (not yet committed). Minerals Processing SGS Economics and Planning Pty Ltd Page D-2 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix D • • Stages 2 and 3 of the Stuart Oil Shale project (not yet committed). $240 million Queensland Nitrates ammonium nitrate plant (completed). Metal Product Manufacturing • • • $1.4 billion proposed Comalco Alumina Refinery. International Light Metals (Australia) Limited plans to construct a pilot plant to produce small diameter billet in both aluminium and magnesium alloys. A planned Process Engineering and Light Metals Centre to be established at Central Queensland University (under construction). Transport, Warehousing and Distribution • • • Construction of Fisherman’s Landing Wharf by the Gladstone Port Authority ($75 million). Development of a $35 million ammonia import terminal by Orica Pty Ltd at the Fisherman’s Landing Wharf in Calliope Shire. Connection to Brisbane and Rockhampton via the $160 million electric tilt train service, which terminates at Gladstone (completed). Water • • • The recently completed $34 million Raw Water Augmentation Project including new pipelines. Reservoirs and new pumps to bring water from the Awoonga Dam to industry in Gladstone. The Raising of the Awoonga Dam by the Gladstone Area Water Board (under construction). Other • Proposed Low Earth Orbit satellite launch facility (United Launch Systems International). The Emerald Area Emerald’s economy is diverse, with operations in mining (coal and gemstones), cotton, grains, cattle and citrus fruits. The area serves a number of coal mines in the Bowen Basin, including the Gregory, Crinum, Gordonstone and Ensham mines. Sapphire gemstones are commercially mined in the region for sale in the domestic and overseas markets. The industry also attracts a significant number of tourists each year. Cotton is Emerald’s traditional mainstay industry based on large-scale broadacre irrigated farming. However, in recent years, Emerald’s citrus fruit growing industry has grown steadily, producing significant quantities of mandarins, oranges, lemons and lime fruit for sale in the domestic and SGS Economics and Planning Pty Ltd Page D-3 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix D international markets. Fresh fruit is exported via ship through Sydney and Gladstone. Projects either planned or under way in the Emerald area include those listed below. Horticulture • $40 million Evergreen Farms horticultural development at Emerald (Century Pacific Productions). Meat Processing • Emerald Saleyards upgrade $1.1 million (under construction). The Mackay Area Industrial activity in Mackay is characterised by the large-scale coal reserves of the Bowen Basin and the extensive areas of shale oil and large reserves of natural gas. There has been significant expenditure and commitment to expenditure on infrastructure in the Mackay area in recent years, including the following. Mining • • • • • $400 million Clermont Coal deposits located in Belyando Shire. The Goonyella Underground Coal Mine located in the Bowen Basin. $400 million Hail Creek located in the Bowen Basin 85 kilometres west of Mackay. $30 million Poitrel Coal project located in Nebo Shire, 170 kilometres west of Mackay. A feasibility study has been completed for the Wards Well Coal Mine, located in the Bowen Basin. Mineral Processing • • • The Dawson Valley Coal seam Methane project located in the central and southern Bowen Basin. This is a research project to determine how to extract commercially viable methane gas from the coal reserves of the Bowen Basin. Stage 4 expansion of the Dalrymple Bay Coal Terminal to provide for an additional stacker/reclaimer and associated conveyors at a total cost of $25 million. A possible $356 - $377 million expansion of the Dalrymple Bay Coal Terminal (DBCT) (Stages 6 and 7) as part of the ongoing development of the terminal. Transport, Warehousing and Distribution SGS Economics and Planning Pty Ltd Page D-4 Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix D • • • Rail network improvements for freight traffic as part of the $250 million up-grade to the line between Rockhampton and Townsville. Development of the Mackay Port, including construction of a small craft harbour at a cost of $16 million and a new $12 million sugar wharf. $190 million Port of Airlie located at Airlie Beach. Agricultural Research & Development • • Allocation of $3.5 million over four years to establish the Centre for Dry Tropics Agriculture in Bowen (with construction of the centre costing $2.1 million). The Department of State Development has recently funded a study to identify sites in the Bowen region suitable for aquaculture development. SGS Economics and Planning Pty Ltd Page D-5 Appendix E: Retail Definitions Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix E Appendix E: Retail Definitions The following is a list of commonly accepted retail definitions that have been used in this study. Regional Centre Regional centres provide (irregular) comparison shopping and weekly shopping services. Generally over 50,000 square metres, but in some cases exceed 100,000 square metres, regional centres include at least one, but often more than one department store (e.g. Myer, David Jones) and a discount department store(s) (e.g. Big W, Target, Kmart). They also include one or two supermarkets such as Coles or Woolworths a range of specialty shops for comparison shopping in fashion, jewellery, homewares, etc. Regional centres often house government activities such as departmental offices or employment services. The trade or catchment area of a regional centre is usually in the range of 100,000 to 150,000 people, depending on location and proximity to competing centres of a similar nature. District Centre District centres are smaller than regional centres (about 20,000 to 40,000 square metres) providing a limited range of comparison shopping services and daily and weekly retail items with a trade or catchment area of 25,000 to 60,000 people, depending on location and proximity to competing centres. They are usually stand-alone centres based on a discount department store, one or two supermarkets and a range of specialty shops. Neighbourhood/ Local Centre Neighbourhood centres cater for high frequency shopping trips based on convenience needs for daily and weekly items. They usually have a small supermarket (e.g. an IGA) and a few specialty shops such as a milk bar, video hire store, baker, butcher, chemist and newsagent. Neighbourhood centres can range in size typically up to 5,000 square metres with a trade catchment of around 5,000 to 10,000 people. Source: SGS Economics and Planning Pty Ltd, 2002 SGS Economics and Planning Pty Ltd Page E-1 Appendix F: Business/ Industry Study Area Site Details Livingstone Shire Council Review of the Business/ Industry Scoping Study – Appendix F Appendix F: Business/ Industry Study Area Site Details The following tables contain details on the size, tenure, registered address and registered plan for each individual lot within Areas A, B and C, which were considered as part of this review. Area A, Pineapple Patch LotPlan 3RP618080 4RP618080 2RP616631 1RP614273 10RP899811 11RP899811 Tenure FH FH FH FH FH FH Area_ha 139.5000 279.8000 0.9931 1.0000 10.84 4.047 House_No 0 2922 388 390 0 0 Street HIDDEN VALLEY ROAD YEPPOON ROAD HIDDEN VALLEY ROAD HIDDEN VALLEY ROAD YEPPOON ROAD YEPPOON ROAD Post_Address HIDDEN VALLEY ROAD YEPPOON QLD PO BOX 2 YEPPOON QLD PO BOX 401 YEPPOON QLD PO BOX 28 YEPPOON QLD SVENSDEN ROAD EMU PARK QLD PO BOX 258 YEPPOON QLD Post_Code 4703 4703 4703 4703 4710 4703 Area B, Taranganba/ Tanby Road LotPlan 15RP613832 8RP613832 2RP913095 Tenure FH FH FH Area_ha 10.5000 10.0400 300.7000 House_No 0 419 0 Street TARANGANBA ROAD TANBY ROAD TARANGANBA ROAD Post_Address PO BOX 681 ROCKHAMPTON QLD PO BOX 69 YEPPOON QLD PO BOX 681 ROCKHAMPTON QLD Post_Code 4700 4703 4700 Area C, Emu Park LotPlan 32E1569 21E15615 30E15615 1E15615 11E15615 22E15615 29E15615 2E15615 9E15615 3E15615 Tenure FH FH FH FH LL FH FH FH FH FH Area_ha 48.5620 0.8094 0.8094 0.8094 0.8094 0.8094 0.8094 0.8094 0.8094 0.8094 House_No 0 0 0 0 0 0 0 0 0 0 Street SHORT STREET ELVEDEN STREET AUGUSTUS STREET AUGUSTUS STREET HENRY STREET ELVEDEN STREET AUGUSTUS STREET AUGUSTUS STREET HENRY STREET AUGUSTUS STREET 8E15615 3RP614584 74RP608652 FH FH FH 0.8094 13.4600 42.7200 0 3549 0 HENRY STREET EMU PARK ROAD EMU PARK ROAD Post_Address 24 KELLOW STREET ROCKHAMPTON QLD PO BOX 600 YEPPOON QLD PO BOX 600 YEPPOON QLD PO BOX 1771 YEPPOON QLD PO BOX 191 EMERALD QLD PO BOX 600 YEPPOON QLD PO BOX 600 YEPPOON QLD 27 FOUNTAIN STREET EMU PARK QLD LOT 9 HENRY STREET EMU PARK QLD KOOKABURRA 322 COOROOMAN CREEK ROAD CAWARRAL QLD C/- EMU PARK POST OFFICE EMU PARK QLD PO BOX 8211 GLADSTONE SOUTH QLD 32 REEF STREET ZILZIE QLD Source: Development and Environment Section, Livingstone Shire Council, 2002 SGS Economics and Planning Pty Ltd Page F-1 Post_Code 4700 4703 4703 4703 4720 4703 4703 4710 4710 4702 4710 4680 4710