Fostering sustainable regional development in the Pilbara
Weathering the booms and busts
Minerals and Energy Projects: • Reduced construction activity; • Transition to operations; • Fewer FIFO workers
Proposition 1: The heavy reliance of the Pilbara on minerals and
energy industries carries many areas of vulnerability
• Technology changes
• The vagaries of commodity prices
• Changes in the project lifecycle
• Competing supply for both gas and ore products from
other global locations, often with a lower cost base.
• Over the very long term resources have a lifespan
Proposition 2: The resources industry is a good base but it will not
support the population size of the Pilbara cities vision
Proposition 3: Move beyond resources to resilience
Build on the strong resource base but do not rely on it:
• A diversified economy – more economic resilience;
• Services and life-style features to support a large and more diverse population.
Factors that influence individual decisions to live in or leave a community:
• Economic opportunity and employment prospects, for all members of the family;
• Education services;
• Health services, particularly access to a reasonable range of specialist services;
• Access to a reasonable range of cultural and recreation activities.
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Access to allied health services
Access to technical or further…
Access to GP services
Access to hospital services
Access to tertiary education services
Police services
Relative Strengths: Essential Services
Relative Strength
Pilbara Region Relative Ranking (Regional Australia Institute: Insight Competiveness Index)
Pilbara Region Relative Ranking (Regional Australia Institute: Insight Competiveness Index)
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English proficiency
Early childhood performance
School performance - Primary
School performance - Secondary
University qualifications
Technical qualifications
Lifelong learning participation
Health
Early school leavers
Relative Strengths: Human Capital
Relative Strength
Pilbara Region Relative Ranking (Regional Australia Institute: Insight Competiveness Index)
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Skilled labour: (% managers andprofessionals)
Participation rate
Welfare dependence
Unemployment rate
Young unemployment
Relative Strengths: Labour Market Efficiency
Relative Strength
Pilbara Region Relative Ranking (Regional Australia Institute: Insight Competiveness Index)
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Businesses in technology and relatedindustries
Households with internet connection
Workers in ICT and electronics
Households and businesses with broadbandinternet
Relative Strengths: Technological Readiness
Relative Strength
Pilbara Region Relative Ranking (Regional Australia Institute: Insight Competiveness Index)
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Dominance of large employers
Exporters, importers, wholesalers: %employed
Access to local finance: Number ofbanks/lending institutions as a share of…
Economic diversification
Income source - Own business
Exports: % business sales revenue earnedfrom exports
Relative Strengths: Business Sophistication
Relative Strength
RDA Report : COST OF DOING BUSINESS IN THE PILBARA
• The price indexes for the Pilbara are the highest of any region in WA and in Australia;
• In 2012 in the Pilbara the level of remuneration for employees would need to be a minimum of 37% higher than that in Perth;
• There is often a need to provide subsidised or free accommodation to attract or retain employees.
• Costs of operating a business is up to 120% higher than in Perth.
• Faced with such substantial costs and with a small market size, some businesses are struggling to survive, while NGOs continually deal with considerable programme funding challenges.
• Businesses and NGOs face high costs for staff training, staff recruitment and turnover, travel, professional services and consumables.
• The cost of doing business in the Pilbara for SMEs and NGOs has risen primarily as a result of the high demand for labour, accommodation and other services by the resources sector.
RDA Report : MAP AND GAP ANALYSIS: PILBARA NON GOVERNMENT ORGANISATIONS 2012
The cost levels particularly affect NGOs:
• Escalating costs faced by NGOs in the Pilbara are not taken into account in providing adequate and secure funding.
• Numerous NGOs based in Perth have very little on the ground presence in the Pilbara due to the affordability and staffing challenges of the region.
• NGOs have difficulties in attracting and retaining staff unless they make significant contributions to their accommodation costs.
• Staff and volunteers – Difficulties in recruiting and retaining staff due to wages competition from the resource and government sectors
• Governance – Small pool of people willing to volunteer on Boards resulting in concurrency in board membership and potential conflicts of interest
NGOs: Possible Measures A coordinated approach to planning services for the Region:
• Development of a 10 year Pilbara Region Community Plan and a 10 year NGO Accommodation and facilities Plan;
• Allocation of NGO office and service delivery accommodation;
• Allocation of government funding for services that reflect the real cost of doing business in the Pilbara with contracts aligned to the Regional Price Index;
• Development of sustainable organisational models, including potential streamlining or merging of services;
• Communications strategy to raise the profile of the NGO sector, highlighting its value and contribution;
• Action research to evaluate and implement ICT, potentially for virtual board membership and for professional supervision and/or development;
• Mixed model of housing and security of tenure; and
• Expansion of PANGO's role and resourcing
Possible Diversification Projects
Project:
Prospective Employment (operations)
Skilled professional Skilled technical and semi-
skilled
Bio-fuels Project 5 - 10 20 - 30
Hi-Tech Greenhouse 5 - 10 20 - 30
Aquaculture fish farm 4 10
Fish processing factory 2 10 - 20
Algae Farm 200
Other possibilities: • Education
• Tourism
Summary: towards resilience • Greater diversity in the economy
• Education services at a high level to keep people in place longer:
– better quality secondary school education;
– More diversity, including private secondary schools:
– Much upgraded tertiary education and development of research specialities.
• Health services that meet all of the health needs of all the community.
• A richer cultural life, with cultural activities more than pubs and movie downloads
• Well supported and vibrant community groups
• An wide range of formal and informal sporting and recreation opportunities;
• Places for people to meet – this means paying attention to the liveability of the major centres (This is where the population expansion will occur):
• Attending to cost issues – lowering the cost base for accommodation and key services.
More specifically: • Regional governance and coordination
– more local autonomy and regional decision making ,
– better coordination between three tiers of government,
– specific assistance to the local governments as primary providers of services and facilities;
– locating more government agencies in the region.
• Reducing the cost structure, starting with the costs of both residential and commercial accommodation.
• Education – establishment of a substantial full-service tertiary education capacity and improved secondary school education with a wider choice and variety.
• Upgraded services infrastructure, including a move to international capability at Karratha airport and a common user facility to service extra-regional projects.
• Formulating a digital strategy for the region to enable:
– Remote and tele-working
– Improved viability of basing regional services and administration in Karratha
– Improved e-health and e-education services
• Health: further expansion of health services; incorporation of areas of specialisation; Promoting the expansion of aged care services and facilities.
And finally: • Actively supporting the NGO sector.
• Promoting the SME sector:
– Fostering the further development of SMEs in mining and resources support services and the resources value chain;
– Support to small business development programs;
– Fostering incubation projects and support services;
– Fostering the development of SMEs in agri-business support services.
• Tourism: Formulate a comprehensive tourism strategy addressing:
– Product;
– Accommodation;
– Marketing.
• Promoting cultural activities and facilities.
• Upgrading the urban environment of key population centres; completing the Karratha town centre upgrade project.
• Investigate the creation of a Special Economic Zone (SEZ) for the Pilbara in order to reduce costs and increase required investments in the non-resources sector.
• Making FIFO internal to the Pilbara, with the growth of the major centres as a residential base for FIFO workers working on remote projects.
