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Far West Economic Development Strategy Supporting Analysis 2018–2022 ii

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First published: July 2018

Photo courtesy of: Grant Leslie: Cover page, Page 14, 21, 35, 37 (1), 39 Peter Brown Gallery: page 22 Broken Hill City Council: page 37 (2)

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Far West Economic Development Strategy Supporting Analysis 2018–2022 iii

Balmoral Group Australia Pty Ltd Economics, Analytics and GIS Consultants ABN 87 135 700 239 ACN 135 700 239 Web ‐ www.balmoralgroup.com.au Web ‐ www.balmoralgroup.us Email – [email protected] Sydney Office Suite 1a, Level 5, 210 George St Sydney NSW 2000, Australia Phone +61 2 9051 2490 Head Office 165 Lincoln Avenue Winter Park Florida, 32789, USA Phone ‐ +1 407 629 2185 Tallahassee Office 113 S Monroe Street Tallahassee Florida, 32301, USA Phone ‐ +1 850 201 7165 Principal Report Authors – Samuel Miller, Justin Pepito, Grant Leslie Cover Photo – Line of Lode Café at sunset – Photo by Grant Leslie 2018 Contact Grant Leslie General Manager – Australia Balmoral Group +61 2 9247 8670 (Sydney Office) [email protected] Commercial‐In‐Confidence Copyright © Balmoral Group Australia Pty Ltd 2018

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Far West Economic Development Strategy Supporting Analysis 2018–2022 iv

CONTENTS Preamble ....................................................................................................................................... 1

Introduction .................................................................................................................................. 2

Strategies ...................................................................................................................................... 3

Regional Economic Development Strategy methodology ............................................................. 6

Timeframe .................................................................................................................................... 7

Consultation ................................................................................................................................. 8

Engagement Process .......................................................................................................................................... 8 Consultation Methodology and Stakeholder Engagement ................................................................................. 8 Survey ................................................................................................................................................................ 8

Business Characteristics .................................................................................................................................... 8 Business Environment ....................................................................................................................................... 9 Market and Supply Chain .................................................................................................................................. 9 Workshops ......................................................................................................................................................... 9 Survey Analysis ............................................................................................................................................... 11

Strategic Context ........................................................................................................................ 14

Economic Audit .......................................................................................................................... 17

Demographics .................................................................................................................................................. 17 Labour Force .................................................................................................................................................... 19 Input-Output Analysis...................................................................................................................................... 25

Mining .............................................................................................................................................................. 27 Agriculture ....................................................................................................................................................... 28 Tourism – Retail Trade, Accommodation and Food Services and Heritage, Creative and Performing Arts ............................................................................................................................................... 30

Shift-Share Analysis ........................................................................................................................................ 32

Infrastructure Audit ................................................................................................................... 34

Institutional Audit ...................................................................................................................... 36

Economic Future of the Region .................................................................................................. 40

Long Term Economic Vision for the Region ................................................................................................... 40 Economic Strengths, Opportunities, Weaknesses, and Threats for the Region ............................................... 40 Risks ............................................................................................................................................................... 41

Support Agriculture and Mining by promoting intra-regional connectivity .................................................. 42 Grow the visitor economy by capitalising on Region’s cultural and natural endowments ........................... 43 Grow economic activity around urban centre by facilitating the development of industrial land ................ 43 Deliver digital economy infrastructure to empower business through improved connectivity ..................... 43

Location Quotient Calculation ................................................................................................... 45

Works Cited ................................................................................................................................ 46

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PREAMBLE

The regional economic development strategy for the Far West functional economic region is

presented in the ‘Far West Region Economic Development Strategy 2018–2022’ (the Strategy). This

document, the ‘Far West Region Economic Development Strategy Supporting Analysis: 2018–2022’

(Supporting Analysis), prepared by Balmoral Group Australia Pty Ltd (BGA), details the Strategy’s

methodology, evidence and development process. Both documents are publicly available at

dpc.nsw.gov.au/cerd.

Both the Strategy and Supporting Analysis have been developed with the support of the NSW

Government as part of the Regional Economic Development Strategies program to assist local

councils and their communities in regional NSW.

For further information about the Regional Economic Development Strategies program please contact

the CERD on 02 6391 3025 or [email protected]

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Far West Economic Development Strategy Supporting Analysis 2018–2022 2

INTRODUCTION

Regional economic development strategies assist those with an interest in the economic development of the region, particularly councils and local businesses, in planning their future economic activities. They enable faster access to dedicated NSW Government funding, such as the Growing Local Economies Fund, and they can also be used to support other types of government grant applications.

The following strategies for the Far West Region are designed around the two local government areas of Broken Hill City Council and Central Darling Shire Council, and the surrounding Unincorporated Far West Region. Together they form a cohesive functional economic region as defined by economic data and community input. Each strategy is a product of the local communities. It sets out a vision for the Region and the strategies and actions required to achieve the vision.

Vision: to build a strong, competitive and diverse economy driven by adaptive value adding and sustainable industries, specialising in Mining, Agriculture and tourism, through projects that contribute to the economic, environmental and

social wellbeing of communities in the Far West

These endowments and specialisations were identified through data analysis and subsequently informed and confirmed through the community consultation process.

This Strategy is the culmination of collaboration between the Broken Hill City Council, Central Darling Shire Council and Unincorporated Far West Region.

The Strategy process successfully identified several core strategies to achieve a prosperous economic

future. For each strategy, primary action steps and infrastructure priorities have been identified, as

well as appropriate implementing parties for lead, support and stakeholder roles. A concerted focus

and effort will be required to achieve all of the outcomes. Considerable vetting of each aspect of the

recommended strategies has determined that the strategies are viable and compatible with available

resources.

This Strategy aims to:

Support growth in Agriculture and Mining by developing regional connectivity and transport logistics to better access markets

Grow the film and television industry and visitor economy by capitalising on the Region’s heritage, cultural, seasonal and natural endowments

Facilitate food and metal manufacturing industries through the development of industrial land to grow economies of scale around urban centres and sustainable energy generation and storage

Improve economic and social resilience by delivering telecommunications infrastructure to empower businesses and residents through improved connectivity in the digital economy.

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STRATEGIES The following table summarises how evidence for the strategies emerges from the data, as well as from qualitative stakeholder consultation. For a more detailed analysis of each contributing element of evidence, the reader should refer to the particular section of this report.

Actions in bold have been identified as priorities for execution. These priorities were identified on the basis of particularly strong evidence throughout the research and analysis.

Table 1: Strategy Summary and Supporting Analysis

Strategy Actions Survey, Interviews and Workshops

Economic Audit Infrastructure Audit Institutional Audit

Support Agriculture and Mining by developing regional connectivity and transport logistics to better access markets

Resource feasibility studies into the costs and benefits associated with unsealed roads in order to seal roads and invest in logistics infrastructure where economic and social costs make it feasible.

Themes that emerged from stakeholder consultations included the challenges posed to businesses and individuals from the large area of unsealed roads. Stakeholders also identified the tyranny of distance as a challenge to coordination of businesses that might have synergies, such as interconnected tourism attractions.

The Agriculture sector emerged in the economic analysis as particularly reliant on road transport to get goods to processing and export markets.

The infrastructure audit identifies the large number of unsealed roads as a major barrier to the transport of people and products throughout the Region.

The Region does not have the institutional capacity to undertake all of the actions proposed here due to its relative isolation and the location of government departments outside of the Region.

Coordinate with business leaders and groups to encourage the co‐location of industries with economic synergies.

Coordinate with business leaders and groups in order to develop a business network that maximises the productive use of labour and transport.

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Grow the film and television industry and visitor economy by capitalising on the Region’s heritage, cultural, seasonal and natural endowments

Coordinate with Destination Networks Country and Outback, councils, stakeholders and Aboriginal communities to develop a region‐wide branding and marketing campaign.

Themes that emerged from stakeholder consultations included the breadth of tourist opportunities available, but the difficulties experienced in attempting to communicate or coordinate across the large area of the Region. Stakeholders also expressed frustration at the poor state of the Broken Hill Airport as a bottleneck for travel to and throughout the Region.

The Accommodation and Food Services and the Retail Trade sectors of the economy emerged as important employers in the Region, reliant upon tourist expenditure to continue growth, especially given the projected declines in the residential population in the following decades.

The infrastructure audit identifies the inability of the Broken Hill Airport to support high capacity aircraft as a major bottleneck to support larger events and festivals. Unsealed roads in the Region are also identified as being a barrier to tourist penetration throughout the Region.

The Region does not have the institutional capacity to undertake all of the actions proposed here due to its relative isolation and the location of government departments outside of the Region. Coordination will need to be applied in order to achieve the goal of the Strategy, particularly with Destination Networks Country and Outback.

Coordinate with Destination Networks Country and Outback, councils, stakeholders and in Aboriginal Communities to support the development of local tourism assets, flagship events, festivals and conventions

Support the development of a film school.

Resource the refurbishment of the Broken Hill Airport.

Resource the refurbishment of local historical attractions.

Facilitate food and metal manufacturing industry growth through the

Resource utilities and infrastructure upgrades to facilitate the development of industrial land.

Themes that emerged from stakeholder consultations included the inability to expand

Increased specialisation in the Agriculture sector towards specialised sheep and

The infrastructure audit identifies several key infrastructure gaps that need to be addressed

The Region does not have the institutional capacity to undertake all of the actions proposed

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development of industrial land to grow economies of scale around urban centres and sustainable energy generation and storage

Support the development of renewable energy generation and storage.

due to the restrictions placed on development on Crown land. Stakeholders also identified the need to balance industrial development with the conservation of the Region’s considerable cultural and natural endowments. Potential areas for development include beef and kangaroo meat processing enterprises and in metal and engineering industries.

beef farming, as well as diversification into other activities such as kangaroo and goat harvesting points to a demand to develop regionally‐based processing and handling facilities on industrial land that are currently restricted. Development in the mining industry, such as the construction of maintenance and repair facilities, is similarly constrained.

with respect to both existing facilities and any new facilities. These include access to electricity, water, roads and telecommunications. The potential for the region to become a major renewable energy generation centre, as evidenced through the development of large‐scale wind and solar farms, is promising for the ability of the region to support energy intensive industries.

here due to its relative isolation and the location of governmentdepartments outside of the Region.

Facilitate access to industrial land by providing support towards converting leasehold to freehold and planning approvals.

Coordinate with community, business and government stakeholders to balance industrial land development with natural and cultural uses.

Improve economic and social resilience by delivering telecommunications infrastructure to empower businesses and residents through improved connectivity in the digital economy

Create a position in the business community for a digital economy educator in order to promote and grow the number of live and recorded classes for small business owners to reach partners, markets and opportunities.

Themes that emerged from stakeholder consultations included the difficulties faced by businesses and individuals challenged by poor telecommunications infrastructure, including NBN connectivity and mobile phone black spots.

Mining emerged in Broken Hill and Agriculture emerged in Unincorporated Far West Region and Central Darling LGA as the most important industries for future economic growth. Future growth in these sectors is underpinned by availability of telecommunications infrastructure.

The infrastructure audit identified black spots in the mobile phone network were not currently being serviced by the Federal Government Black Spot Program. The NBN is currently only available in Broken Hill.

The Region does not have the institutional capacity to undertake all of the actions proposed here due to its relative isolation and the location of government departments outside of the Region. Coordination will be required to achieve the strategy.

Resource the upgrade of internet and mobile phone services infrastructure throughout the Region by accessing grant funding from State and Federal entities.

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REGIONAL ECONOMIC DEVELOPMENT STRATEGY METHODOLOGY

The 12 step methodology for the Regional Economic Development Strategies:

1. Establish a platform for change in the region through formal agreement from the region and its key actors to undertake the regional economic development process and the engagement of higher levels of government in a facilitating and support role

2. Conduct regional audits a. A demographic and economic audit of the current state of the region, benchmarked

against the state of NSW; b. An audit of regional institutions to reveal capacity and capability to undertake the

development of a Strategy and its implementation 3. Use the output from the regional audits to produce a Regional Information System and provide

Market Intelligence, which will reveal regional strengths and weaknesses 4. Mobilise key actors in the region from technology and market sectors, business leaders and

industry sectors, the public sectors and the community. Those are the Agents of Change that must be fully engaged in the Strategy process

5. Employ two key Analytical Tools: a. Industry Cluster Analysis to identify industry clusters using Location Quotients and Input‐

Output Analysis b. Multi‐Sector Qualitative Analysis (MSQA) of regional core competencies, economic

enhancement, growth and export opportunities and a range of endogenous and exogenous risks

6. Identify and appraise regional core competencies, risks and opportunities, engaging the Agents of Change in the process, to produce a series of metrics / indices to measure them

7. Engage actors from outside the region to undertake an external analysis to ascertain the degree of concordance between the qualitative assessment of the Agents of Change from within the region

8. Set the new strategic direction for the region by defining and formulating the Strategy and specify the enabling infrastructure required

9. Develop details of the Strategy and identify the enabling infrastructure required 10. Prepare the Action Plan for implementing the Strategy, including specifying implementation and

facilitation mechanisms and their financing 11. Undertake regular reviews of progress with implementation of the Strategy and performance of

the region; and re‐engineer the strategy as needed 12. To help with the review, undertake evaluation using indicators and benchmarking; and update

Regional Information System and Market Intelligence

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TIMEFRAME

The timeframe for the Strategy project is four years, from 2018 to end 2022. The strategies are intended

to deliver economic benefits to the Far West Region over the next 10 – 20 year period. This document

includes strategies and actions that will be operated by the Far West’s LGAs, other organisations, as well

as private businesses.

The Region intends to appoint an Advisory Committee comprising of representatives from the Broken Hill

City Council, Central Darling Shire Council, Unincorporated Far West’s village committees and other

institutions and industry; so as to monitor the progress of the Regional Action Plan. This Advisory

Committee will meet quarterly to track the progress of actions identified in the Action Plan.

After two years, the Advisory Committee will conduct a formal review of the Action Plan and produce a

brief report card to be published as an addendum to the Regional Economic Development Strategy. This

will also provide an opportunity to update the Action Plan for new or modified actions.

After four years, the Advisory Committee will also begin the process of updating or refreshing the

Regional Economic Development Strategy.

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CONSULTATION

Engagement Process The engagement process for the Strategy included the Broken Hill City Council, Central Darling Shire

Council, Far West village committees, Regional Development Australia, stakeholder groups, individual

stakeholders and the NSW Government throughout the Strategy process. Each organisation or individual

played different roles. Both the councils and the village committees served as a local guide for contacts,

historical context and assumption making. Locals in the business and social community provided input

and feedback for assumptions and strategy development. State agencies provided State level policy

context and guidance.

Consultation Methodology and Stakeholder Engagement The project’s methodology involved four main phases. In the first phase of the project, the project team

consulted with council and village committees about expectations and timing of the project. Initial round

table interactions with council, village committee, Federal and State representatives highlighted analysis

prepared for previous initiatives yielded important themes that saved BGA from having to undergo

further analysis. These analyses, mainly from Regional Development Australia, were critiqued and cross‐

referenced with literature to ensure that assumptions created were reasonable. Economic development

surveys and workshops were conducted at the same time as broad level data analysis to ensure BGA

holistically understood the community. In the second phase of the project, survey results, past policy

economic development analysis and community level interactions between BGA and Far West

stakeholders were used to guide focus groups. Economic development themes evident in these

discussions formed the backbone of the strategies in the alternative document.

Survey A survey was designed and administered online early in the project cycle.1 A draft survey was prepared

based on data analysis and interview results and provided to council for review and approval. The final

version of the survey included multiple choice, free form, sliding scale and matrix‐rank type questions.

The survey was targeted at business owners (or directors / managers / investors representative of

business owners) and covered topics ranging from business size and industry type to expectations of

future sales and economic growth in the Far West Region. It should be noted that due to a low survey

response count, significant findings needed to be heavily scrutinised against other published quantitative

evidence from academic and policy literature as well as qualitative evidence from stakeholder

interactions.

The survey was composed of the following sections.

Business Characteristics

1 The online survey provider Survey Monkey was used as the platform for survey administration.

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The Business Characteristics section of the survey asked questions about the number of employees,

business locations and industry type to better understand the size, scale and type of businesses in the Far

West Region.

A page of the Business Characteristics section was devoted to innovation and technology utilisation

questions. One question asked if new internet and social media technologies such as Facebook, Twitter

and YouTube were incorporated into the model. Additionally, there were free form comment responses

to the internet technology question that provided insight into what type of technologies the business

owners were using.

Business Environment

In the Business Environment section of the survey, business owners were asked questions on their

perceptions of the business climate in the Region. Some questions were related to the general business

environment while other questions targeted the perceptions of working councils.

Market and Supply Chain

Finally, the Market and Supply Chain section of the survey asked questions about labour availability,

accessibility of required infrastructure and market expectations. These questions assisted in

understanding the businesses’ customer base and opportunities or threats in the supply chain.

The survey was open for participation for three weeks from 19th November until 6th December 2017. A

total of 33 surveys were completed in this timeframe. The survey was also used to recruit focus group

participants, by asking respondents if they would be interested in participating in focus group sessions.

Workshops

Workshops were held in Broken Hill and Wilcannia in order to get a richer understanding of the issues,

barriers and opportunities facing the community. These responses were summarised and analysed for

emergent themes that helped to define the strategies. Descriptions of these are presented below.

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Table 2: Workshop Themes

Theme Descriptions

The importance of mining to

the Region

• There is potential for more mining exploration for cobalt, lithium, iron, uranium

• There is an opportunity for gold and gas exploration around Wilcannia

The need for Government

Organisation

• There needs to be an increase of Department of Planning and Environment (DPE) staff

• Direct lines of communication with Department of Premier and Cabinet (DPC) has made grant applications easier; incorporated more assistance

• There is a need for a cultural infrastructure meeting / plan • There is a strong desire from the business community to

develop a cohesive strategy • There is infighting between small groups • The Chamber of Commerce is poor and needs to merge with

other bodies • There is a need for a film liaison, there are 3‐4 enquiries per

week for locations to shoot • There has been a reduction in public services due to

consolidation from Region to Dubbo • The council can be a barrier to expanding business, lengthy wait

times to get things approved • Funding has been difficult to secure in Unincorporated Far West

Barriers and opportunities for

tourism

• Broken Hill Council has stepped out of the tourism space leaving only the information centre

• There is a need to promote the Heritage Status of Broken Hill as an asset for tourism

• There is no strong group promoting tourism at the moment • Hospitality training has just been taken out of the local TAFE,

bad for tourism • Access to online information has increased significantly which

has facilitated an increase in visitation • The road to Tibooburra has not been completed, there have

been delays in construction. • The golf course is underutilised as a source of sports tourism

activity • Sports events are being lost in the Region • There is an opportunity to expand the astronomy tourism

offerings • There is an opportunity to establish an Aboriginal Cultural

Centre in Wilcannia to recognise Aboriginal heritage • There is a need to recognise and promote the significant

European heritage of the Region

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• The Menindee Lakes used to have lots of birdwatching tours and farm stays based around natural tourism

There is a need for

telecommunications

infrastructure

• Media connectivity is a must, the ABC Radio is a vital link for the community

• There are constraints due to telecommunications. Some businesses have had to spend their own money getting fibre optic to their business

• The film business need access to the internet to enable the industry to preserve film

• The lack of telecommunications coverage is a constraint for smartphone apps

There is a need to upgrade

the Broken Hill Airport

• There is a need to upgrade the airport, widen the runway The airport cannot currently support large festivals and events

• The airport is the major bottleneck for the Region

Opportunities for Agriculture • There is an opportunity to expand into goat and kangaroo meat harvesting / processing, this needs power generation to become viable

• There is a potential to develop kangaroo processing in Tibooburra

• There is an opportunity to market free range foods like beef, kangaroo, goats; but they need bigger processing facilities

Social and Community Issues

in the Region

• The lack of young people is a constraint in the Region • There is an enormous waiting list for child care and schools in

the Region • There is an opportunity to develop aged care facilities in

Wilcannia

Survey Analysis

BGA conducted an online business survey between December 2017 and February 2018. Participants

included business managers and owners; 33 responses were received. Respondents were asked a broad

range of economic development questions, about topics ranging from incentives to future growth

perceptions. The following section provides an overview of publicly available data summarising Far West’s

regional business community, as well as the results of the survey, which reflect business owners’

perceptions.

Contact lists were obtained from council and sent out via electronic formats using the following methods:

1. Email invites using Australian Business Register data 2. Email distribution through local business organisations (Business Chamber) 3. Advertisements on councils’ Facebook page

Participation in the survey was low, with only 33 respondents. There were three factors that led to low

online survey turnout. These include:

1. Time of year (the survey was administered late December / early January) 2. Drought conditions meaning many farmers were too broke or bust to answer a survey

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3. Lack of interest from the business community due to the community feeling over‐surveyed (four other government surveys immediately preceded this survey in the Region)

BGA overcame this by increasing the number of face‐to‐face workshops. BGA also used past business

environment and workforce capacity survey research from Regional Development Australia (RDA) to

bolster the data.

The RDA found about 1/3 of business owners reported advertising positions in the past 12 months that

they were unable to fill due to regional isolation. Similarly, BGA’s survey noted that 23/33 respondents

had overwhelmingly seen the lack of skilled workers, adequate training, innovation, utilities and logistical

transportation access as barriers to growth as shown in Figure 1.

Figure 1. Perception of business environment amenities

Source: Survey by BGA.

The RDA survey mentioned: “while not much can be done to move the Region, much could be done to

change perception of the Region’s isolation.” Suggested options for consideration to boost workforce

availability included: (a) developing strategies to work with higher education institutions to promote the

Region to people studying in sectors where there are skills shortages and (b) to develop promotional

campaigns to inform the benefits of employing trainees and apprentices. Most recommendations imply

some form of communication between externally located potential employees and regional employers.

The Region will need to be serviced by reliable high speed internet and mobile phone service in order to

attract employees, markets and partners. Figure 2 illustrates the current level of integration with internet

services utilised by the business community, with only 33% of respondents with a website and 44% with a

social media presence. Improvements in internet and telecommunications infrastructure should be a

priority for the Region.

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Figure 2: Technology use amongst business owners

Source: Survey by BGA.

Issues associated with isolation and workforce capacity create significant barriers to economic growth

and development. The RDA Far West Regional Plan 2013‐2023 (2013) states that many HSC and VET

courses are only available with extensive travel commitments; some students have to travel 200

kilometres into Broken Hill in the morning to study only to follow up with a 200 kilometres trip back home

in the afternoon. This is further compounded by the fact that some students are not licensed drivers,

which presents further barriers to attaining relevant education.

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STRATEGIC CONTEXT

This section defines how the Regional Economic Development Strategy fits in with other relevant strategic

documents. The table below sets out the planning documents that have been considered for strategic

alignment with the Strategy.

Table 3: Other Far West Strategy Documents

Strategic Context Description

Broken Hill Community

Strategic Plan 2033

The Broken Hill Community strategic plan outlines the four key

directions that the council is focusing on as a result of extensive

community feedback and consultation. These directions are:

• Community, retaining a sense of identity, health, social inclusion and connectedness

• Economy, making sure that it is inclusive, equitable and diverse; and that troughs are managed well. Actions include: o Economy is strong and diversified, attractive for work,

living and investment o The City is a destination of choice, leading to increased

visitation o A supported and skilled workforce

• Environment, conservation and preservation of the natural environment and natural resources

• Leadership, ensuring that the government is representative of the people.

Central Darling Shire

Community Strategic Plan

2017‐27

The Central Darling Community Strategic Plan outlines the four key

directions that the council is focusing on as a result of extensive

community feedback and consultation. These directions are:

• Social, a healthy and cohesive community supported by coordinated and affordable services

• Economic, developing industries, strong businesses and increased employment. Actions include: o Expansion of industries and growth in business o Employment growth o Improved infrastructure across the shire

• Environment, a protected natural environment and a well maintained built environment

• Civic Leadership, relevant, attainable, and efficient service delivery and community development planning.

Tibooburra Strategic Plan

2017

The Tibooburra Village Committee Incorporated is the body

responsible for the allocation of funds from the Financial

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Assistance Grants, the Tibooburra Strategic Plan outlines a number

of specific projects that would benefit residents of the village, in

four categories:

• Tourism and Marketing, including the refurbishment of the Tibooburra Children’s Hostel.

• Infrastructure and Physical Development, including the kangaroo proof fencing for the Allpress Dam and Thomsons Creek catchment

• Events and Social Development, including the relaunch of the tibooburra.org website

• Community Economic Development and Business Support. Including the release of Western Lands lease blocks for development.

The Far West Initiative In response to the recommendations from the Independent Local

Government Review, the NSW Government brought together eight

local councils: Balranald, Bourke, Brewarrina, Broken Hill, Central

Darling, Cobar, Walgett, Wentworth and the Unincorporated Far

West. It was formed in recognition of the fact that in the face of

economic, social and geographic disadvantage, these local councils

also carried responsibility for delivering services that in other LGAs

would typically be the responsibility of the State Government and

the private sector. It may result in several governance changes for

the Far West Region, one or some of:

• Increased networking and sharing of functions between local councils

• An expansion of the Unincorporated Area • A new region‐wide statutory entity replacing all Far West

councils.

RDA Strategies and Research

NSW Digital Economy

Strategy

The RDA Digital Economy Strategy (2011) for the Far West and

Broken Hill outlines a plan to integrate the rollout of the NBN

across all sectors of the economy, including Mining, Agriculture,

Education, Health Care and Social Assistance, local government and

the environment.

Department of Planning and

Environment: Far West

Regional Plan

The DPE has prepared the Far West Regional Plan in order to guide

the development of services into the future. Overall it has

identified economic diversity, efficient transport, sustainable

management of semi‐arid rangelands and strong and connected

communities as goals for the Region. Local narratives underpin

these on an LGA level, for the Broken Hill, Central Darling and

Unincorporated these include:

• Supporting Broken Hill as a service centre for the Far West

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• Capturing economic benefits from Mining • Growing Renewable Energy industry • Grow and diversify Agribusiness • Establish value‐adding Manufacturing • Develop a regional tourism trail and a sculpture trail

Destination NSW (DNSW):

Destination Management

Plan

The Destination Management Plan for the Country and Outback

regions of DNSW outlines a strategy to increase visitation and the

number of nights spent by tourists to the Region.

RDA Far West: Workforce

Development Study

This report, published in 2016, examined the challenges facing

businesses in recruiting and retaining staff in the Far West. The

report found that while 80% of businesses surveyed planned to

grow their businesses in the next 10 years, 30% of respondents

reported that they were unable to fill positions advertised in the

past 12 months, with another 42% reporting that they did fill

positions but with underqualified staff. The report makes a number

of recommendations addressing areas of need such as:

• Job readiness • Employability skills • Aligning training to industry needs • Workforce attraction and retention • Guidance and support for employers • Guidance and support for workers

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ECONOMIC AUDIT

The economic audit included assessment of major aspects of the Far West Region marketplace, including

the following, which are addressed in turn:

• Demographics • Labour Force • Input‐Output Analysis • Shift Share

Demographics In 2016, the total population of Far West Region was 20,598; this was a 6.1% decrease from 2011. The NSW Department of Planning and Environment produces population projection figures to 2036 by LGA. The low, main and high population projection estimates for the Far West Region are depicted in Error! Reference source not found.3.

Between 2021 and 2036, the population of the Far West Region is expected to decline by 12.7% (a decline of approximately 2,700 people) under the low estimate and 5.3% (a decline of approximately 1,150 people) under the high estimate. Under the main estimate, the Far West Region is expected to decline by 9.1%, compared to 1.3% for total regional NSW over the 15 years to 2036.

Figure 3 FAR WEST REGION LGA POPULATION PROJECTIONS (2011 – 2036)

Source: NSW Department of Planning and Environment Population Projections

18,000

18,500

19,000

19,500

20,000

20,500

21,000

21,500

22,000

22,500

2021 2026 2031 2036

FAR WEST POPULATION PROJECTIONS (2021‐2036)

High Growth Medium Growth Low Growth

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The Region has a long history of droughts and mining booms and busts that is unlikely to change soon. The community places this history at the root of population decline. As such, population decline is perceived as a fact of life of the Region. However, the community does recognise that population management is a task it must undertake.

Adding to the Region’s population management task is the issue of an ageing population. Figure 4 shows the changes in each age group’s population in the five years to 2016. Three major patterns emerge. First, the narrowing population in the 15‐24 year old age brackets suggests that fewer young people see an economic future in the Far West, representing a significant decline in the working population.

The second pattern that emerges from the data is the relative decline in populations between the ages of 35‐45 and an increase in the ages between 55‐65 years old. This is broadly consistent with the ageing population trend reflected throughout NSW. However, sharp declines in the populations in retirement age suggest that an increasing number of people are choosing to retire outside the Region, removing themselves from the local economy altogether.

Lastly, an increase in the 25‐35 population age bracket is suggestive of the significant increases in employment in the Mining industries. While this trend may be broadly positive for economic activity in the Region, it is highly dependent on the continued viability of mineral production. It is likely that if the Mining sector experiences a prolonged downturn, this workforce will migrate away, indicating that the economy is at least partially exposed to cyclical trends in the global market for minerals.

Figure 4: FAR WEST RESIDENT POPULATION 2011‐2016

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Source: ABS, BGA Work Product

The Region must nimbly address the forecast population decline. Capital intensive industries such as Mining, Manufacturing and Professional, Scientific and Technical Services will be somewhat insulated from the full effects of this demographic change. Not coincidentally, employment is forecast to grow in all of these industries, despite overall population decline. However, through tourism‐related industries and niche Agriculture diversification, the Region can manage the poor economic times better. This will help stem some of the population decline that comes from bust times.

Labour Force Figure 5, illustrates the employment figures for the Far West Region compared to NSW in 2016. The proportion of people not in the labour force in the Region is markedly higher than for NSW, at 33% and 27%, respectively. The number of people engaged in both full‐time work (25% compared to 28%) and part‐time work (12% compared to 15%) is lower. The difference in the unemployment rate in the Region does not diverge widely in comparison. Overall, the economic implications for the Region point to a comparatively weaker base of employment from which to leverage future growth.

Figure 5: FAR WEST & NSW LABOUR FORCE STATISTICS 2016


Figure 6 displays the percentage of people in 10 year age brackets in the Far West Region participating in the workforce compared to NSW in 2016. From age 20 upwards, the Far West Region falls short of the NSW average when it comes to workforce participation. This could be reflective of a lack of economic opportunity. Further to this, the percentage of people in the Far West Region undertaking unpaid child care was 19.7%, compared to 22.2% for the whole of NSW (Australian Bureau of Statistics (ABS) 2016 Census). Together these statistics point to an economic capacity within the Region’s labour force which can absorb future growth. However, the ability of this labour force to respond to economic growth is affected by the levels of education and qualifications, as discussed below.

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Figure 6: FAR WEST & NSW LABOUR FORCE STATISTICS BY AGE 2016

Source: ABS, BGA Work Product.

Figure 7 shows the distribution of qualifications for people that are 15 years or older. It is important to note that people who are currently studying to get their first qualifications are not included in these categories. Overall, the Far West Region lags NSW in bachelor, postgraduate and diploma qualifications. The proportion of people who have achieved only year 9 education or below is double the NSW rate, at 14% compared to 7%.

Figure 7 Highest level of educational attainment


It is also important to analyse the distribution of employment in the Region. Figure 8 shows each

industry’s share of total employment in 2016. Health Care and Social Assistance is the largest employer in

the Region, employing 17% of the workforce. However, most of this is located in Broken Hill, where it

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makes up 19% of the workforce. For Unincorporated Far West and the Central Darling regions,

Agriculture, Forestry and Fishing is the largest sector of employment, accounting for 44% and 41% of the

workforce, respectively. As previously indicated in the Strategy, the geographic difference between the

workforce profiles has direct implications for which strategies are likely to be relevant to each LGA.

Figure 8: distribution of the workforce by sector

Source: ABS, BGA Work Product.

An important indicator of economic mobility and of the general health of the economy is the weekly

income of the population. Figure 9 breaks down the proportion of people in the Region by weekly income

bracket. In every weekly income bracket a lower proportion of people in the Region reported earnings in

comparison to NSW as a whole, with a greater proportion earning in the lower income ranges. This

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correlates with the analysis above indicating a lower participation rate in the economy. Strategies that

address this are detailed in the Strategy document.

Figure 9: Gross Weekly income

level 2016

Source:

ABS, BGA Work

Product.

Figure

10

illustrates the relationship between the number of people working and the number of firms present in

each industry. Rental, Hiring and Real Estate Services, Agriculture, Construction, Professional Scientific

and Technical Services, and Financial and Insurance Services are all characterised by having a low

workforce to firm ratio. Health Care and Social Assistance, Mining, Public Administration, Electricity, Gas,

Water and Waste Services and Information Media and Telecommunications are all characterised as

having a very high workforce to firm ratio.

It is generally considered desirable to have a healthy representation of small and medium‐sized

businesses, especially when such a presence indicates widespread successful entrepreneurship. Under

the right conditions, small firms can perform as “gazelles” – that is, they can be particularly effective at

creating large amounts of jobs at a rapid pace. Creating the right conditions can lead to significant

stimulation of the local economy. However, it should be noted that overall, very few small firms develop

in this manner.

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Figure 10: Workforce and Firm composition


Table 4 shows the employment projections by industry from 2016 to 2022 in the Far West Region. Industry sectors that outpace the projected population and employment growth are considered high‐growth; those that keep pace are considered average growth, and those that lag are considered low‐growth or mature industries. All are important to the economic development of the Far West Region, but will have different needs and contribute differently to the marketplace. Understanding overall growth trends can help maximise benefits from both local and regional settings.

Table 4: Far west region employment growth projections

Far West Region Employment Projections

2016 2022 Change/year %

Total Employment 19578 19326 ‐0.2

Professional, Scientific and Technical Services 504 577 2.4

Information Media and Telecommunications 140 160 2.4

Financial and Insurance Services 231 258 1.9

Manufacturing 550 606 1.7

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Agriculture, Forestry and Fishing 3522 3873 1.7

Transport, Postal, and Warehousing 834 914 1.6

Rental, Hiring and Real Estate Services 141 152 1.3

Mining 1516 1591 0.8

Accommodation and Food Services 1536 1599 0.7

Administrative and Support Services 641 649 0.2

Public Administration and Safety 1560 1452 ‐1.2

Health Care and Social Assistance 2464 2293 ‐1.2

Other Services 634 581 ‐1.4

Wholesale Trade 336 306 ‐1.5

Education and Training 1511 1337 ‐1.9

Retail Trade 1881 1638 ‐2.2

Arts and Recreation Services 282 244 ‐2.2

Electricity, Gas, Water and Waste Services 300 255 ‐2.5

Construction 996 839 ‐2.6

Professional, Scientific and Technical Services has the largest projected employment growth in the Far

West Region. Other high growth industries are Information Media and Telecommunications, Financial and

Insurance Services, Manufacturing, Agriculture and Transport, Postal and Warehousing. The projected

high performance of the Professional, Scientific and Technical Services, as well as the Information Media

and Telecommunications industries suggests that employment growth will rely upon services that depend

on digital infrastructure.

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Input‐Output Analysis Input‐Output modelling consistent with ABS Input‐Output framework was completed for the Far West Region.

An Input‐Output model reveals how much an industry produces and consumes of intermediate goods (a good used to produce final goods). It also identifies which industries provide critical support to other industries in the Region.

Table 5 shows the industries with a high proportion of output consumed as intermediate goods. The top ten industries that produce intermediate goods are dominated by Agriculture and Manufacturing. Although Manufacturing is a relatively small industry in the Region, it is important to the Region’s economy, particularly for the Mining sector, due to the support it provides.

Table 5: share of outputs for intermediate goods

Industry Share of outputs for Intermediate goods (%)

Agriculture, Forestry and Fishing Support Services 95

Iron and Steel Manufacturing 94

Other Repair and Maintenance 93

Building Cleaning, Pest Control and Other Support Services 92

Structural Metal Product Manufacturing 90

Non‐Metallic Mineral Mining 84

Employment, Travel Agency and Other Administrative Services 83

Other Fabricated Metal Product Manufacturing 82

Aircraft Manufacturing and Repair Services 81

Non‐Residential Property Operators and Real Estate Services 79

Source: Input Output Table, DPC Data

Table 6 reveals the ten sectors that export the most goods and services. Mining features heavily, as do some forms of Manufacturing. The proportion of goods and services exported from the Sheep, Grains, Beef and Dairy Cattle sector implies that much of the output from this sector is directed towards value added – this is explored in greater detail below.

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Table 6: share of outputs exported

Industry Share of outputs exported (%)

Iron Ore Mining 80

Basic Non‐Ferrous Metal Manufacturing 62

Non‐Ferrous Metal Ore Mining 46

Oil and Gas Extraction 41

Sheep, Grains, Beef and Dairy Cattle 18

Basic Chemical Manufacturing 16

Professional, Scientific, Computer and Electronic Equipment Manufacturing

16

Accommodation 9

Rail Transport 8

Aircraft Manufacturing and Repair Services 5

Valued added by industry is an additional measure of how each industry sector contributes to the Region’s economy. It shows the gross value add (GVA) by each industry in 2015/16, minus Own Dwellings. The largest sector by value added in the Far West Region is the Mining industry, which is dominated primarily by exports. It is followed by the Health Care and Social Assistance, Public Administration and Safety and the Education and Training sectors. In total, the Region’s gross regional product is estimated to be approximately $1,035.2 million.

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Figure 11: GVA as a % of total regional economy

Mining

The estimated gross value added from the Mining industry was approximately $153.6 million in 2015/16. Table 7 illustrates the sectors that the mining industry is most heavily reliant on for inputs into production. After considerable inputs from the Non‐Ferrous Metal Ore Mining sector, totalling $109.1 million, the sector is heavily reliant on Exploration and Mining Support Services as well as Electricity Transmission. Interestingly, it is also reliant on Agriculture Support Services, indicating a high level of interaction between Mining and Agriculture, which may be related to the management of conflicting land uses in the Region between the two sectors.

Table 7: Major industries mining consumed from in 2015‐16

Mining

Industry Consumes from (in millions of dollars)

Non‐Ferrous Metal Ore Mining 109.1

Exploration and Mining Support Services 14.1

Electricity Transmission, Distribution, On Selling and Electricity Market Operation

9.5

Agriculture, Forestry and Fishing Support Services 7.3

Structural Metal Product Manufacturing 6.9

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Professional, Scientific and Technical Services 5.7

Heavy and Civil Engineering Construction 5.5

Construction Services 5.4

Non‐Metallic Mineral Mining 4.9

Other Repair and Maintenance 4.8

Table 8 illustrates the sectors that are reliant on the Mining industry for inputs into production. Again NonFerrous Metal Ore Mining features as the largest consumer of intermediate goods and services, followed by Iron and Steel Manufacturing, Construction Services and Heavy and Civil Engineering Construction.

Table 8: Major industries metal ore mining produced for in 2015‐16

Mining

Industry Produces for (in millions of dollars)


Iron and Steel Manufacturing 10.7

Construction Services 8.1

Heavy and Civil Engineering Construction 8.0

Basic Non‐Ferrous Metal Manufacturing 5.9

Residential Building Construction 5.1

Non‐Metallic Mineral Mining 3.8

Non‐Residential Building Construction 3.0

Ownership of Dwellings 2.9

Basic Chemical Manufacturing 2.4

This analysis tells us the Mining sector supports many Construction and Manufacturing businesses in the Region.

Agriculture

The estimated gross value added from the Agriculture, Forestry and Fishing sector was approximately $42.6 million in 2015/16.

Table 9 illustrates which sectors Agriculture is most heavily reliant on for inputs into production. These

include other sections of the Agriculture industry, and certain sectors of the Mining industry, specifically

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Coal Mining, Oil and Gas Extraction and Iron Ore Mining. This could represent land that is owned by

mining companies but is loaned to farmers for the purposes of grazing or agistment.

Table 9: Major Industries Agriculture consumed from in 2015‐16

Agriculture


Sheep, Grains, Beef and Dairy Cattle 107.379


Other Agriculture 6.122

Non Ferrous Metal Ore Mining 2.533

Retail Trade 1.732

Wholesale Trade 1.693

Water Supply 1.587

Road Transport 1.218

Employment, Travel Agency and Other Administrative services 1.183

Finance 1.176

Table 10 illustrates the sectors that rely on goods and services from the Agriculture sector for inputs into

productions. Sheep, Grains, Beef and Dairy Cattle relies on total Agriculture to feed their herds.

Population serving industries like Retail Trade and Food and Beverage Services feature heavily as they

require goods directly from farmers. The Non‐Ferrous Metal Ore Mining Sector also relies on inputs, likely

in the form of land leased from farmers.

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Table 10: Major industries that the agriculture sector produced for 2015‐16

Agriculture

Industry Produces for (in millions of dollars)



Retail Trade 7.898


Other Agriculture 4.237

Fishing, Hunting and Trapping 1.881

Food and Beverage Services 1.796

Poultry and Other Livestock 1.638

Accommodation 1.564

Non‐Residential Property Operators and Real Estate Services 0.98

Tourism – Retail Trade, Accommodation and Food Services and Heritage, Creative and Performing Arts

Approximately 8.9% ($92.1 million) of the Region’s total output came from tourism‐related industries in

2015/16. Figure 12 illustrates the contributions tourism made to each sector’s gross value added in that

year.

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Figure 12: Contribution of tourism to value add by industry sector

The main industries that benefit from tourism are the Accommodation and Food Services, Retail Trade,

and the Arts and Recreation Services. The input‐output tables for these sectors are aggregated and

analysed below.

The Travel Agency sector is the largest contributor to inputs for tourism, pointing to a demand from

visitors to have services that allow them to plan their trips. Maintenance and operation of buildings round

out the following three sectors, indicating that buildings are an important assets.

Table 11: Major industries that the tourism sector consumed from in 2015‐16

Tourism


Employment, Travel Agency and Other Administrative Services 4.8

Building Cleaning, Pest Control and Other Support Services 2.8

Non‐Residential Property Operators and Real Estate Services

2.4

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Electricity Transmission, Distribution, On Selling and Electricity Market Operation

2.2


Broadcasting (except Internet) 1.5

Retail Trade 1.4


Heritage, Creative and Performing Arts 1.2

Finance

0.9

Vietnam War Memorial Statue Broken Hill NSW – Photo Credit Grant Leslie 2018

Shift‐Share Analysis Shift‐share analysis partitions total employment growth (or shift) into three distinct components – the

State Effect, the Industry Effect and the Local Effect.

State Effect: Changes in regional employment resulting from changes in the state economy. That is, employment will increase or decrease as a result of broader economic conditions.

Industry Effect: Changes in regional employment that are a result of broader industry specific trends. For example, an increase in demand for agricultural products will result in an increase in employment in agricultural industries.

Local / Regional Effect: Finally, changes in employment which results from unique regional factors that are not related to broader economic and industry factors.

Figure 13 illustrates changes in each industry’s employment between 2001 and 2016. This is

benchmarked against Industry Effect and Local / Regional Effect. The State Effect is 11% for every single

industry.

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Figure 13: Shift Share Analysis

For most sectors the Local / Regional Effect was negative, meaning the Region’s location had not

positively affected employment growth. Care must be taken in interpreting these results. For example,

the Construction industry’s growth seems to be driven by industry effects but these industry effects

would have been overwhelmed by the Sydney housing‐related construction boom. This is clearly not

relevant to the Far West but it will still show up as Industry Effects.

Mining is one of the few industries to have a strongly positive Local Effect. The strength of Mining above

the trend implies that this Region has been highly competitive in Mining. On the other hand, Agriculture

has seen declines in both Local Effect and Regional Effect, suggesting the State Effect2 is the major driver

of employment growth.

2The State Effect has not been shown in Figure 13 because these are 11% for every industry.

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INFRASTRUCTURE AUDIT

The following infrastructure audit profiles the Far West Region’s various infrastructure, which includes traditional infrastructure as well as internet technologies and health infrastructure. The potential and the limitations of the Region’s infrastructure are the reason for several strategies and their respective infrastructure actions.

Table 12: The Region’s Infrastructure

Infrastructure Type Description

Transport

Road The Region is connected to other regions by several main arterial roads. The Silver City Highway connects Broken Hill to the north and south, and the Barrier Highway connects to Adelaide in the south west and Wilcannia and the rest of central NSW in the east. The Cobb Highway connects Wilcannia to Hay and south west NSW.

Broken Hill’s Key Infrastructure Priority report (2018) found many unsealed roads due to the expensive cost of sealing and maintenance. Elsewhere in the Region, Central Darling Shire Council has estimated 93% of roads in its boundaries are unsealed. This can be problematic for industrial, tourist and local drivers, especially during wet weather events.

Air Stakeholders reported a correlation between the Region’s economic potential and the health of the Broken Hill Airport. The runway cannot currently support or land larger aircraft. The inability to land commercial and passenger aircraft limits the Region’s capacity to support events, tourism and a mobile workforce.

Train Broken Hill is connected by passenger train to Sydney and Adelaide. The rail line also handles a significant freight task. In 2015‐16 it supported 2.85 million tonnes between Broken Hill to Parkes and 6.44 million tonnes in the opposite direction; 7.73 million tonnes was freighted from Broken Hill to Crystal Brook (SA), and 3.31 million tonnes in the opposite direction. This highlights that Broken Hill and the Region is more reliant on freight transport to and from the seaport at Adelaide than it is to the rest of NSW (DIRD, 2017).

Water Security WaterNSW is currently building and will own and operate the 270 kilometre

Murray River to Broken Hill pipeline. Once it is complete by the end of 2018, this

pipeline will bring water from the Murray River to Broken Hill and will secure the

water supply for the Broken Hill area. This project is part of a $500 million

investment strategy for Broken Hill’s water security.

Other

Telecommunications Stakeholders identified telecommunications gaps in mobile phone coverage as a

critical infrastructure gap that affects the capacity to do business. The Far West

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Region is yet to benefit from the NSW government’s $220 million Mobile Black

Spot program (NSW Government, 2018).

NBN Currently no towns in the Region have access to the NBN in either fibre optic or fixed wireless capacity. Stakeholders identified this as a critical infrastructure gap that affects the capacity to do business.

Health Infrastructure The Broken Hill Integrated Health Facility is receiving a $3.9 million upgrade funded by the NSW Government (Kevin Humphries MP, 2017). In addition, the Broken Hill Health Service will receive a $30 million dollar upgrade which will include a new dental clinic, a new primary health and family facility and upgraded oncology and outpatient departments.

The Wilcannia Multipurpose Health Service provides first line emergency care, observation and stabilisation of people requiring transport to a larger facility such as Broken Hill. Visiting specialist doctors and nurses operate out of the facility on rostered days, meaning people must book ahead and plan consultations in advance.

Specific Aboriginal outreach medical services such as Maari Ma operate in the Region to improve health outcomes and close the health gap in the Aboriginal population.

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INSTITUTIONAL AUDIT

The Far West Region has a diverse collection of institutions, all of which are interconnected in its economic development. Understanding how each organisation can interact with each other can help decision makers implement the Strategy. Some of the institutions have more local‐level concerns, such as the local business chambers. NSW agencies like Department of Premier and Cabinet and the Department of Industry have state‐wide responsibilities for economic development. Each of the parties interact on economic development matters, and have done so well before and during the project. This section will help decision makers navigate the various groups if these strategies are implemented.

Table 13: The Region’s Institutions

Institution Type

Description Strengths and Capacity Important Linkages to Other Institutions

Broken Hill City Council

The Broken Hill City Council is an institution of more than 100 employees who provide services for a wide variety of community needs.

Council is a leader in the

Region having developed its

own long term Community

Strategic Plan and has been

very involved in the

development of this Strategy.

Broken Hill Chamber of Commerce

All government tiers

Industry

Broken Hill Visitor Information Centre

West Darling Arts

Central Darling Shire Council

The Central Darling Shire Council provides services for Wilcannia, Menindee, Ivanhoe, Tilpa, White Cliffs, Darnick, Sunset Strip, Copi Hollow and Mosstiel. Council services for residents include health services, aged care, children’s services, day care, community development, Indigenous services, refugee services, licensing and registration and leisure activities.

Central Darling Shire Council was in administration from 2014 to early 2018. As a result, the capacity to respond to and action some of the strategies in the REDS is limited by the need for the new council to deal with the task of general administration.

Victory Park Caravan Park

West Darling Arts Council has many partners and works closely with businesses, industry and all tiers of government.

Tibooburra and Silverton Village Committees

The Tibooburra and Silverton Village Committees are responsible for allocating funds from the Financial Assistance Grants.

Village committees of the Far West do not have extensive capacity to action strategies beyond their localities.

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Regional Development Australia – Far West

RDA committee members are local people who consult and engage with communities to support initiatives that boost economic development, environmental welfare and socially inclusive outcomes. Specifically speaking, the organisation will articulate local priorities, identify and align resources, engage stakeholders and promote solutions.

Committee comprised of local leaders works with all levels of government, businesses and community groups.

Far West Councils

Broken Hill City and Central Darling Councils


The Broken Hill Chamber of Commerce is a membership‐based organisation that offers guidance and expertise for its members in management, industrial relations, government relationships, finance, human resources, internet technology, education, community relations and marketing.

The Broken Hill Chamber of Commerce has developed relationships with businesses, industry and levels of government to provide services and support to businesses.


Perilya Mining Perilya Mining acquired land for extensive ore bodies in June 2012, increasing production and extending its life to more than six years based on existing reserves. The company manages over 1,000 square kilometres of land, including leases, incorporating the following areas: Southern Operations, the North Mine, the Potosi Trend, Little Broken Hill and Pinnacles.

The company has an experienced and settled residential workforce, one that blends younger professional and technical expertise with mature Broken Hill mining experience. Perilya Mining owns the recently reopened Broken Hill North Mine and has developed and fostered a relationship with the community. In addition to employing people from this area, Perilya locally sources their materials and services and provides a positive impact on the community through the payment of taxes and royalties.

Councils

AGL AGL delivered a solar photovoltaic power plant in the outskirts of Broken Hill’s city centre. The 53MW power plant is expected to generate approximately 126,000

AGL has a strong relationship with First Solar who provided the engineering, procurement and construction services and will maintain the plant until 2021. Through this process,

First Solar

University of Queensland

University of New South Wales

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megawatt hours to meet needs equivalent to 22,000 homes.

training in solar energy services was provided to local workers and as much employment and services as possible were sourced from the local area. AGL, First Solar, the University of Queensland and the University of New South Wales will facilitate research supported by the Education Investment Fund for the development of solar energy in Australia.

Education Investment Fund

Broken Hill Base Hospital

Broken Hill Base Hospital is a regional rural referral centre. It provides emergency, general medical, surgical, mental health, psychogeriatric, cancer care, paediatrics, rehabilitation, diagnostic and palliative care services.

A $30 million upgrade of the Broken Hill Health Service is being planned. The upgrade will include a new dental clinic, a new primary health and child family facility and upgraded oncology and outpatient departments.

Broken Hill Visitor Information Centre

The Broken Hill Visitor Information Centre handles local tours and provides necessary information to visitors venturing outside of the Far West population centres. It has showers, toilets and gift shops. It also has specialised services for journalist and film industry workers, as well as public relations expertise for travel agents.

The Broken Hill Visitor Information Centre connects tourists to attractions in Broken Hill and Beyond. This information centre is an accredited level 2 information centre and has won the Rod Murdoch Memorial Award for its outstanding contribution to tourism in NSW.



TAFE Western (Broken Hill College, Wilcannia College)

As a branch of TAFE Western, Broken Hill College offers programs in subjects including general education, trades and creative studies which support the diverse industries in the area.

The two Broken Hill campuses focus on courses in general education, aged care, cosmetics, business, children’s services, community services, human resources management, information technology, nursing, welfare, automotive, carpentry and joinery, ceramics, electrical, fine arts, fitting and machining,

Businesses / Business Chambers

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horticulture, tourism and hospitality and welding.

Wilcannia College primarily emphasises courses beneficial to the Aboriginal community, including programs in aboriginal art, metal fabrication, welding and business.

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ECONOMIC FUTURE OF THE REGION

Long Term Economic Vision for the Region The economic future of the Far West Region focuses on the considerable challenges experienced by business and people living and operating in the Region. However, it also leverages the Region’s considerable endowments as opportunities and drivers of growth and economic diversity.

The Region is endowed with resources that will allow it to grow economic activity while managing the challenges associated with demographic changes. These endowments include:

• Exploited and untapped mineral resources including lead, zinc, silver, iron and cobalt ore deposits. • Vast agricultural land supporting traditional wool and beef enterprises as well as emerging goat and

kangaroo meat enterprises • The space and landscape to support festivals, events and camping experiences • A wealth of cultural and heritage underpinned by Aboriginal and European history, The strategies set out in the Strategy aim to:

• Support Agriculture and Mining by promoting intra‐regional connectivity • Grow the visitor economy by capitalising on the Region’s cultural and natural endowments • Grow economic activity around urban centres by facilitating the development of industrial land • Deliver digital economy infrastructure to empower business through improved connectivity • Supporting intra‐regional connectivity will boost the engine industries of the Region, namely Mining

and Agriculture. The strategy achieves this by identifying specific road upgrades that will contribute to market access, but also by identifying potential opportunities to invest in enabling and value‐adding facilities to strengthen supply chains in Agriculture – particularly with regard to potential kangaroo and goat meat industries.

Growth in the visitor economy will be stimulated by opening up the Region by sealing roads and refurbishing the Broken Hill Airport. However, the quality of attractions must also be improved, through investment in the Region’s many historical and heritage attractions. The Region’s reputation as a feature place in many films can draw in special interest visitors, setting the stage for festivals such as the Perfect Light Film Festival. The opportunities here will be maximised by making trips easier to plan throughout the Region.

Although the Region is well endowed with space, developing it has up until recently been highly regulated and difficult, due to much of it being Crown land. With changes to legislation allowing Crown land around urban areas to be sold, the strategy identifies multiple economic benefits that can be realised on a regional scale to assist in the process.

The opportunities available to the Region as a result of opening up the economy to reliable internet and mobile phone service are also explored. The strategy identifies several examples across many industries that can benefit from this technology. For instance, remote feed and fencing monitoring in Agriculture, remote machinery operations in Mining. And for the niche but important film industry, it can eliminate the need to fly that day’s film overnight to Sydney for processing, opening up the Region to even more film activity.

Economic Strengths, Opportunities, Weaknesses, and Threats for the Region

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In combination, economic and demographic analysis, phone interviews, feedback from workshops and survey data informed analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT) in the Far West Region. Even though stakeholders had different perspectives on many topics that had emerged from the economic data, clear trends in opinion emerged during this engagement process. Table 14 summarises the elements identified in the SWOT analysis.

Throughout community consultations, opportunities were identified for the Region in the long term. This vision aligns with the Region’s long and recognised history as being at the forefront of innovation in industry and infrastructure, which contributed to the recognition of Broken Hill as a Heritage City.

The location of government departments providing services outside of the Region poses a significant barrier to progress and development, and requires active cooperation from government departments to make the goals of the Strategy achievable.

Table 14: Strengths, Weaknesses, Opportunities and Threats: Far West Region

Strengths • Plentiful natural resources • Attractive natural and cultural assets • Established location for film

Weaknesses • Tyranny of distance • Unsealed Roads • Low socio‐economic profile • Poor telecommunications infrastructure • Inability of Broken Hill Airport to service larger aircraft • Exposure to drought • Location of State and Federal institutions outside of the Region

Opportunities • Kangaroo and goat meat harvesting and processing • Rare earth mineral mines to service growing global demand • The possibility of an ideal location for research funded by an

Australian Space Agency into autonomous vehicles, remote sensing and virtual fencing.

• Grey nomad and other interest (astronomy, Aboriginal, film, educational) tourism growth

Threats • Climate Change (water security / droughts) • Floods cutting off road traffic • Exposure to global commodity prices • Transition away from the reliable ADSL network to the NBN • Changes in governance due to the Far West Initiative • Population decline

Source: BGA Work Product

Risks Several risks to economic development were identified as part of the economic analysis and stakeholder engagement process. These can be related to the economy, the environment or the production process.

Table 15 summarises the identified risks associated with the economic opportunities that exist for each industry included in the Regional Action Plan. These risks were identified through desktop analysis and feedback from stakeholders in the form of phone interviews, surveys and workshops.

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The following sub‐sections detail how each of the strategies developed as part of the Strategy process address these regional risks.

Table 15: Risks

Support Agriculture and Mining by promoting intra‐regional connectivity

As discussed above the tyranny of distance poses significant challenges and risks for economic development. Not only is the Region far from other significant economies and institutions, but the townships and governance institutions of the Region are spread thin within it. Exacerbating this issue is the number of unsealed roads that compound the maintenance and travel costs associated with driving large distances. This strategy tackles this challenge in three main ways: sealing the roads, encouraging the colocation of supporting and related industries, and enhancing coordination between businesses and other bodies that will make greater use of the current transport, travel, and freight effort.

Sealing roads will make it cheaper to travel, decreasing fuel expenses and the cost of maintenance on vehicles as they experience wear and tear on uneven surfaces. It will also decrease the Region’s vulnerability to climate change as unsealed roads become unnavigable during heavy rains or flood events.

Encouraging the colocation of supporting industries, such as kangaroo or goat meat processing facilities with refrigerated warehousing, logistics and transport facilities also goes some way to reducing the overall travel costs borne by businesses that could otherwise have been averted by smarter planning processes.

Coordinating transport, travel, and freight effort between businesses is a strategy that relies heavily upon the formation of a strong and cooperative business ecology. This could take the form of tourist operators

Agriculture • Water security and resource depletion • Commodities prices • Utilities costs remaining high • Skills shortages • Transport costs

Transport Services and Infrastructure

• Infrastructure not being able to support growth • Increased congestion in Broken Hill • Stricter regulation for vehicle / train pollution and biosecurity

Mining • Public perception • Skills shortage • Volatility of market prices • Changes in policy / regulations

Telecommunications Service and Infrastructure

• Mobile phone black spots • NBN not available • Threat of reliance on NBN as the sole piece of infrastructure delivering

internet service

Tourism • Poor state of roads limiting access • Change in destination preferences • Inability of Broken Hill Airport to support large events

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coordinating the movement of visitors throughout the Region, or farmers coordinating to make the most productive use of available trucks or labour.

Grow the visitor economy by capitalising on Region’s cultural and natural endowments

Stakeholders identified the inability of the Broken Hill Airport to support large events as a key barrier to their financial viability and attractiveness. Upgrading this vital piece of infrastructure is seen as a priority for the entire Region. Furthermore, the poor state of road in many parts of the Region limits the ability tourists have to visit and enjoy the Region.

The large distance between tourist attractions and operators over much of the Region means there is no unified Far West package or experience that tourists can reliably plan and create itineraries for. Therefore, it is a priority of the strategy to leverage off the Destination Networks Country and Outback in order to drive collaboration between councils, Indigenous communities, village committees and other tourist attraction providers in order to provide a network collection of assets.

The significance of the Food and Beverage, Accommodation, Retail and Arts and Culture sectors to the overall economy is further underpinned by population projections that predict consistent declines in the local consumer base. Therefore, these sectors will become increasingly reliant upon the tourist consumption to keep the local businesses vibrant and thriving. This is especially changing in the context of the Tourism industry as a key pillar of support to the economy during periods of relatively low growth in the Agriculture and Mining sectors.

Grow economic activity around urban centre by facilitating the development of industrial land

Despite being well endowed with land and space, the majority of this is currently taken up by Crown land, with strict regulations of what activities can be undertaken on it. This poses a significant barrier to economic growth in the Region, especially around urban centres where the opportunities to take advantage of economies of scale are greatest. However, due to recent changes in legislation, Crown land in the Western Division will become available for sale where doing so will contribute to economic development of the region. Although these approval processes do pose a regulatory risk, the strategy identifies an opportunity to facilitate these processes and expedite the purchase and subsequent development of Crown land.

The issue of population decline in the region is a demographic trend that is recognised as a fact of life in

the Region. Part of the challenge is to orientate the economy towards a lean population working in a

capital intensive mix of industrial and technical sectors such as Mining, Manufacturing, and Scientific and

Technical Services which are all expected to grow in employment in the future despite overall population

decline. The other part of the solution is to diversify the economy into activity and income that can

weather the peaks and troughs of Mining more effectively. This strategy addresses both of these points

by identifying the opportunity for development in enabling and value‐adding facilities that can expand

potential in the Metals and Fabrication Manufacturing sector that benefits from the Region’s significant

Mining activity and endowments, and in the Agricultural processing and Manufacturing industries that

can leverage the Region’s endowments in goat and kangaroo meat. Investment in industrial land is

therefore a strategy that addresses and plans for the future make‐up of the Region’s population, and

ensures that the economy has the capital to remain vibrant despite demographic challenges.

Deliver digital economy infrastructure to empower business through improved connectivity

Access to high speed internet was identified by all stakeholders as both a necessary component for future economic growth and currently a major risk given the transition away from ADSL service to the NBN.

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Major investment in internet capability and infrastructure is required in order to make economy resilient and give it room to grow.

The transition away from ADSL broadband technology to sole reliance on the NBN Network, which is not yet available in the Far West Region, poses significant risks for commerce especially in the event of infrastructure failure. Stakeholders often noted that they were afraid that there would be no backup or contingency if this happened.

The failure to address mobile phone back spots in the region also poses risks to its economic future. This lack of telecommunications infrastructure currently acts as a deterrent for the growth of many industries, as well as contributing to the socio‐economic disadvantage experienced by many communities. This strategy attempts to highlight and address these gaps as a key enabler of economic growth.

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LOCATION QUOTIENT CALCULATION

Local effects that drive employment changes can be teased out of overall employment data by assessing

location quotients. Location quotients are calculated by comparing industry‐level employment

percentages to corresponding percentages within a “base area” and obtaining a ratio from the

comparison. The location quotient (LQ) can be calculated as:

,

,

If an industry location quotient for a particular area is greater than one, the implication is that the

industry’s presence within that particular area is relatively more concentrated or stronger than the

industry’s concentration in the base area. Industry LQs help define which industries make the regional

economy unique and are potentially “export‐oriented.” A LQ less than one is indicative of less competitive

advantage in the Far West Region compared to the state.

FAR WEST COUNCIL


WORKS CITED

Broken Hill City Council 2018, Broken Hill’s Key Infrastructure Priority Areas, Broken Hill City Council

Central Darling Shire Council 2018, Services and Facilities, viewed 17 April 2018,

http://www.centraldarling.nsw.gov.au/council/services‐facilities.aspx

Department of Infrastructure and Regional Development 2017, Trainline 5 Statistical Report,

https://bitre.gov.au/publications/2017/files/train_005.pdf

Gooch, D 2016, ‘Councils will remain in major shake‐up of local government in western NSW’, ABC, 30

May, viewed 17 April 2018, http://www.abc.net.au/news/2016‐05‐31/councils‐will‐remain‐in‐local‐

government‐shakeup‐western‐nsw/7461996

Kevin Humphries MP 2017, $3,905,000 Secured for YMCA for Broken Hill Integrated Health Facility,

viewed 17 April 2018, https://www.kevinhumphries.com.au/media/media‐releases/3905000‐secured‐

ymca‐broken‐hill‐integrated‐health‐facility

New South Wales Government 2018, Far West, viewed 17 April 2018,

https://www.nsw.gov.au/improving‐nsw/regional‐nsw/our‐regions/far‐west/

Porter, M 1998, ‘Clusters and the New Economics of Competition’ Harvard Business Review, November‐

December, pp. 77 ‐90.

Porter, M 1990, The Competitive Advantage of Nations, Free Press, New York, NY.

Regional Development Australia 2016, Far West NSW Workforce Development Study, Department of

Infrastructure and Regional Development, and Cities

Regional Development Australia 2013, Regional Development Australia Far West NSW Regional Plan

2013‐2023, Department of Infrastructure and Regional Development, and Cities