glng integrated project housing strategy · 9 of the cg report states that an integrated project...

GLNG INTEGRATED PROJECT HOUSING STRATEGY

4 AUGUST 2011

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Table of Contents

Page No.

1.0 INTRODUCTION AND OVERVIEW ................................................................................................. 1

1.1 PURPOSE OF THIS REPORT ......................................................................................................................... 1 1.2 OVERVIEW OF THE GLNG PROJECT ............................................................................................................. 1 1.3 OVERVIEW OF THE HOUSING CONTEXT ........................................................................................................ 3 1.4 APPROACH TO THE IPHS STRATEGY ............................................................................................................ 3 1.5 SUMMARY OF RESPONSE TO CO-ORDINATOR GENERAL’S CONDITIONS ............................................................ 5

2.0 OVERVIEW OF OTHER MAJOR PROJECTS ..................................................................................... 8

2.1 MAJOR PROJECTS IN THE GLADSTONE REGION .............................................................................................. 8 2.1.1 Queensland Curtis LNG Project........................................................................................................... 8 2.1.2 Australia Pacific LNG ......................................................................................................................... 8 2.1.3 Arrow Energy LNG Project (Previously Shell Australia LNG Project) ..................................................... 8 2.1.4 Wiggins Island Coal Terminal .............................................................................................................. 9

2.2 CUMULATIVE IMPACTS............................................................................................................................... 9 2.2.1 Workforce .......................................................................................................................................... 9

2.3 SUMMARY AND IMPLICATIONS .................................................................................................................. 11

3.0 POLICY AND PRACTICE FRAMEWORK ........................................................................................ 12

3.1 GOVERNMENT POLICIES AND PROGRAMS ................................................................................................... 13 3.1.1 Current Queensland Government Initiatives ...................................................................................... 13 3.1.2 Current National Housing Initiatives .................................................................................................. 17

3.2 HOUSING ISSUES IN RESOURCE COMMUNITIES ............................................................................................ 19 3.2.1 Overview of Housing in Mining Communities ..................................................................................... 19 3.2.2 Housing Demand and Supply in Resource Communities ..................................................................... 21 3.2.3 Housing Issues in Gladstone ............................................................................................................. 22 3.2.4 The Bowen Basin Experience ............................................................................................................ 23 3.2.5 Abbott Point Housing Strategies ....................................................................................................... 24 3.2.6 Other Experiences in Resource Communities ..................................................................................... 25

3.3 SUMMARY AND IMPLICATIONS .................................................................................................................. 26

4.0 HOUSING STRATEGY – UPSTREAM (CGS FIELDS) ....................................................................... 28

4.1 WORKFORCE AND HOUSING REQUIREMENTS .............................................................................................. 28 4.1.1 CSG Fields Workforce - Current Projections (as at March 2011) .......................................................... 28 4.1.2 CSG Fields – Worker Housing Strategy .............................................................................................. 28

4.2 ROMA HOUSING MARKET ANALYSIS .......................................................................................................... 29 4.2.1 Population Projections ..................................................................................................................... 30 4.2.2 Residential Land Supply and Activity ................................................................................................ 30 4.2.3 Housing Supply and Dwelling Activity ............................................................................................... 32 4.2.4 Summary and Implications ............................................................................................................... 33

4.3 ROMA HOUSING AFFORDABILITY ANALYSIS ................................................................................................ 33 4.3.1 Defining Affordable Housing in Roma ............................................................................................... 34 4.3.2 Residential Land and Housing Market ............................................................................................... 35 4.3.3 Rental Market ................................................................................................................................... 37 4.3.4 Summary and Implications ............................................................................................................... 41

4.4 SOCIAL AND COMMUNITY HOUSING ANALYSIS IN ROMA ............................................................................... 41 4.4.1 Social Housing Stock ........................................................................................................................ 42 4.4.2 Demand for Social Housing .............................................................................................................. 42 4.4.3 National Rental Affordability Scheme (NRAS)Housing ...................................................................... 43 4.4.4 National Building Economic Stimulus Package (NBESP) Housing ....................................................... 43 4.4.5 Summary and Implications ............................................................................................................... 43

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4.5 CONSULTATION WITH KEY STAKEHOLDERS ................................................................................................ 44 4.5.1 Overview of Consultation Activities .................................................................................................. 44 4.5.2 Consultation Outcomes .................................................................................................................... 45 4.5.3 Implications for the Development of Integrated Strategies ................................................................ 47

4.6 SANTOS’ STRATEGIC APPROACH TO HOUSING IN THE MARANOA REGION ........................................................ 48 4.6.1 Key Objectives ................................................................................................................................. 48

5.0 HOUSING STRATEGY - DOWNSTREAM (PIPELINE AND PLANT) .................................................. 56

5.1 WORKFORCE AND HOUSING REQUIREMENTS .............................................................................................. 56 5.1.1 GLNG Pipeline Workforce - Current Projections (as at March 2011) .................................................... 56 5.1.2 GLNG Pipeline Worker Housing Strategy .......................................................................................... 56 5.1.3 GLNG Plant Workforce (Current Projections as at March 2011) .......................................................... 57 5.1.4 GLNG Plant Worker Housing Strategy .............................................................................................. 57

5.2 GLADSTONE HOUSING MARKET ANALYSIS ................................................................................................. 59 5.2.1 Population Projections ..................................................................................................................... 60 5.2.2 Residential Land Supply and Activity ................................................................................................ 62 5.2.3 Housing Supply and Dwelling Activity ............................................................................................... 66 5.2.4 Summary and Implications .................................................................................................................. 68

5.3 GLADSTONE HOUSING AFFORDABILITY ANALYSIS ....................................................................................... 69 5.3.1 Defining Housing Affordability in Gladstone ...................................................................................... 69 5.3.2 Housing Market ............................................................................................................................... 70 5.3.3 Rental Market .................................................................................................................................. 74 5.3.4 Summary and Implications ............................................................................................................... 78

5.4 SOCIAL AND COMMUNITY HOUSING ANALYSIS IN GLADSTONE ...................................................................... 78 5.4.1 Social Housing Stock ........................................................................................................................ 79 5.4.2 Demand for Social Housing .............................................................................................................. 79 5.4.3 National Rental Affordability Scheme (NRAS) Housing ...................................................................... 80 5.4.4 National Building Economic Stimulus Package (NBESP) Housing ....................................................... 81 5.4.5 Summary and Implications ............................................................................................................... 81

5.5 CONSULTATION WITH KEY STAKEHOLDERS ................................................................................................ 81 5.5.1 Overview of Consultation Activities .................................................................................................. 81 5.5.2 Consultation Outcomes .................................................................................................................... 83 5.5.3 Implications for the Development of Integrated Strategies................................................................. 85

5.6 GLNG’S STRATEGIC APPROACH TO HOUSING IN THE GLADSTONE REGION ...................................................... 86 5.6.1 Key Objectives ................................................................................................................................. 86

6.0 CONCLUSIONS AND SUMMARY OF STRATEGIES ........................................................................ 93

ABBREVIATIONS ................................................................................................................................... 94

DEFINITIONS ......................................................................................................................................... 95

REFERENCES ......................................................................................................................................... 97

APPENDIX A: COORDINATOR-GENERAL’S CONDITIONS ....................................................................... 101

APPENDIX B: ULDA – RESIDENTIAL 30 GUIDELINE ...............................................................................104

APPENDIX C: OVERVIEW OF PLANNING POLICY FRAMEWORK ........................................................... 106

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LIST OF FIGURES

Figure 1: Location of Gladstone LNG Project Components ..................................................................... 2 Figure 2: Scenario 1 (2 x LNG projects and Fisherman’s Land Port Expansion) ...................................... 10 Figure 3: Scenario 2 (1 x LNG project, Fisherman’s Land Port Expansion) .............................................. 10 Figure 4: Scenario 3 (2 x LNG projects, Fisherman’s Land Port Expansion) ............................................ 11 Figure 5: Population projections, Maranoa Regional Council................................................................. 30 Figure 6: Developable Land Plan, Roma ................................................................................................ 31 Figure 7: New Dwelling Approvals, Maranoa Regional Council Area...................................................... 33 Figure 8: Median Dwelling and Land Prices for 2009/10 ........................................................................ 36 Figure 9: Median Multiple for Surat Basin and Queensland (2004/05 – 2009/10) ................................... 37 Figure 10: Rental Vacancy Rates 2004/05 to 2009/10 ............................................................................ 38 Figure 11: Surat Basin – Number of Rented Dwellings 2004/05 and 2009/10 ......................................... 38 Figure 12: Median Rents for 2009/10 ..................................................................................................... 39 Figure 13: Overall Rental Affordability 2004/05 to 2009/10 ................................................................... 41 Figure 14: Fairview, Roma, Worker Accommodation ............................................................................ 49 Figure 15: Population Projections for Gladstone Regional Council ........................................................ 60 Figure 16: Projected Percentage Change in Household Type 2006-2026 .............................................. 61 Figure 17: Former Gladstone City LGA Projected Supply and Demand of Dwelling Stock ..................... 63 Figure 18: Former Calliope Shire LGA Projected Supply and Demand of Dwelling Stock ...................... 63 Figure 19: Former Miriam Vales Shire LGA Projected Supply and Demand of Dwelling Stock ............... 64 Figure 20: Uncompleted residential lots time series, Gladstone Regional Council ................................. 65 Figure 21: Housing Type Profile............................................................................................................. 66 Figure 22: Housing Tenure Profile 2001 -2006 ....................................................................................... 67 Figure 23: Dwelling Type by Number of Bedrooms ............................................................................... 68 Figure 24: Sales of New Lots, Gladstone Regional Council .....................................................................71 Figure 25: Vacant Land Sales, Gladstone Regional Council ....................................................................71 Figure 26: Dwelling Sales, Gladstone Regional Council ......................................................................... 73 Figure 27: At Risk Purchasers ................................................................................................................ 74 Figure 28: Proportion of Low Income Households in Unaffordable Rental Accommodation .................. 77 Figure 29: Affordable Rental Stock by Bedroom Numbers 2009 ........................................................... 78 Figure 30: Fairview, Roma, Workers Accommodation ........................................................................... 87 LIST OF TABLES Table 1: Overview of Other Major Projects (indicative only) .................................................................... 9 Table 2: Currnet Workforce Requirements for CSG Fields (Maranoa) .................................................... 28 Table 3: Household Type Projections for MRC ...................................................................................... 30 Table 4: Median Sales Data - Vacant Urban Land, Maranoa Regional Council ....................................... 35 Table 5: Number of Houses for Sale, June 2010, Roma .......................................................................... 35 Table 6: Media Sale Price of Houses, Maranoa Regional Council area ................................................... 36 Table 7: Median Weekly Rents for New Bonds - Houses, Roma ............................................................. 40 Table 8: Median Weekly Rents for New Bonds - Flats/Units, Roma ....................................................... 40 Table 9: Median Weekly Rents for New Bonds - Town Houses, Roma ................................................... 40 Table 10: Numbers of Social Housing Dwellings (Oct 2010) .................................................................. 42 Table 11: Number of Applications on Waiting List ................................................................................. 43 Table 12: Number of Applications on Waiting List by Dwelling Size ...................................................... 43 Table 13: Number of Application on Waiting List by Time on Housing Register .................................... 43 Table 14: IPHS Stakeholder Consultation .............................................................................................. 44 Table 15: Summary of Key Consultation Outcomes (Maranoa) ............................................................. 46

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Table 16: Summary of Integrated Housing Strategies, Maranoa Regional Council ................................ 54 Table 17: Current Workforce Requirements for Pipeline ........................................................................ 56 Table 18: Current Workforce Requirements for the GLNG Plant ........................................................... 57 Table 19: Imported Construction Workforce Not Residing in the Curtis Island Camp ............................ 57 Table 20: Plant, Port and Pipeline Operations Breakup ......................................................................... 57 Table 21: Plant, Port and Pipeline New Settlers Requiring Housing ....................................................... 57 Table 22: Population Projections for the Gladstone Regional Council Area ........................................... 60 Table 23: Household Type Projections for GRC (based on medium series) ............................................ 61 Table 24: Population Forecasts for Gladstone Regional Council by Age Group ..................................... 62 Table 25: Conventional Lot Consumption, Gladstone Regional Council ................................................ 66 Table 26: Dwelling Approvals by Type, Gladstone Regional Council ..................................................... 68 Table 27: Median Sales Data - Vacant Urban Land, Gladstone Regional Council ....................................71 Table 28: Median Sales Data - Houses, Gladstone Regional Council ..................................................... 73 Table 29: Vacancy Rates in Gladstone Regional Council Area ............................................................... 74 Table 30: Median Weekly Rents - 3 Bedroom Houses ............................................................................ 75 Table 31: Median Weekly Rents - 2 Bedroom Flats/Units ....................................................................... 75 Table 32: Median Weekly Rents - 3 Bedroom Town Houses .................................................................. 76 Table 33: Median Weekly Rents for New Bonds - Hosues, Gladstone .................................................... 76 Table 34: Median Weekly Rents for New Bonds - Flats/Units, Gladstone ............................................... 76 Table 35: Median Weekly Rents for New Bonds - Town Houses, Gladstone ........................................... 77 Table 36: Numbers of Social Housing Dwellings (Oct 2010) .................................................................. 79 Table 37: Number of Applicants on Waiting List .................................................................................... 80 Table 38: Number of Applicants on Waiting List by Dwelling Size ........................................................ 80 Table 39: Number of Application on Waiting List by Time on Housing Register .................................... 80 Table 40: IPHS Stakeholder Consultation.............................................................................................. 82 Table 41: Summary of Consultation Outcomes (Gladstone) .................................................................. 84

1.0 INTRODUCTION AND OVERVIEW 1.1 PURPOSE OF THIS REPORT This report provides an Integrated Project Housing Strategy (IPHS) for the Gladstone Liquefied Natural Gas (GLNG) development. The GLNG IPHS has been prepared in response to conditions of approval for the GLNG project issued by the Queensland Coordinator-General (CG) in May 2010. Specifically, this work addresses Conditions 9, 10, 11 and 12 of Part 3, Appendix 1 of the CG Report that relate to housing. Condition 9 of the CG report states that an integrated project housing strategy (IPHS) must be completed within three months of project commitment, also known as the final investment decision (FID). For ease of interpretation, the document has been broken up into two main chapters. Section 4 describes the housing strategies for the upstream component (CSG fields) of the project, while section 5 describes the housing strategies for the downstream (pipeline, plant and port) component. 1.2 OVERVIEW OF THE GLNG PROJECT GLNG is a groundbreaking project that will use world-first technology to process coal seam gas (CSG) into liquefied natural gas (LNG). It represents a major investment in Queensland jobs and a cleaner energy source for the future and will cement the State's position in a booming international LNG market. The project is a partnership between Santos, Australia’s largest domestic gas producer; PETRONAS, Malaysia’s national oil and gas company and the second largest LNG producer in the world; French energy major, Total, the world's fifth largest publicly traded integrated international oil and gas company; and KOGAS, the world's largest buyer of LNG. The GLNG project involves the production of liquefied natural gas (LNG) using coal seam gas (CSG) sourced from CSG fields in the Bowen and Surat basins. There are three key components to the GLNG project: (i) development of CSG fields and supporting infrastructure; (ii) a 420km gas transmission pipeline from the CSG fields to the LNG processing facility; and (iii) an LNG facility on Curtis Island ,Gladstone, which liquefies the natural gas for transport to

overseas markets by ship.

Component (i) will be referred to hereon in as ‘upstream’, while components (ii) and (iii) will be referred to collectively as ‘downstream’. Figure 1 (below) shows the location of these project components. Santos acts as Operator of the upstream component of the GLNG project on behalf of GLNG. An operating company owned by GLNG (GLNG Operations Pty Ltd) operates the downstream component of the GLNG project. The FID for the GLNG project was announced in January 2011 and signalled commitment to construction of two of the three possible LNG processing trains. The trains will be brought on line sequentially, with construction of the first train commencing this year (2011). The first export of liquefied gas from the first train is expected to occur in 2015.

Figure 1: Location of Gladstone LNG Project Components

Source: GLNG 2009 – EIS (Executive Summary of EIS Page 2)

1.3 OVERVIEW OF THE HOUSING CONTEXT Potential housing implications have been identified through consideration of the project workforce, investigation and review of the current policy and housing contexts in the regions affected, consultation with key stakeholders and a broader literature review of housing issues in resource communities. This analysis has pointed to a number of complex circumstances to which this housing strategy responds, including: the likely size, make up and housing preferences of the project workforce (outlined in sections

4.3 and 5.3) which points to the need for a diversity of housing types and housing tenures, including temporary worker accommodation as well as affordable rental units and houses, and houses for purchase (this is consistent with DOC’s 2009 discussion paper on housing needs in resource communities);

the need to develop sustainable communities and to overcome negative housing outcomes. This accords with the principles within the Department of Infrastructure and Planning’s (DIP) Draft Major Projects Housing Policy of commitment to the liveability of resource communities (examined in section 3); and

the particular circumstances of the Roma (Maranoa) and Gladstone housing markets and land supply stocks, including the residual effects of the global financial crisis (which particularly appears to have affected the commencement of development in the Gladstone market, despite the availability of land and evident demand) (analysed in sections 4 and 5).

In response to this context, the overarching purpose of this IPHS is to:

Initiate, cooperative and coordinated approaches in consultation with other major project stakeholders and Government agencies to resolve cumulative housing impacts, with the outcome of achieving joint mitigation strategies, and delivery of housing solutions to achieve the following objectives:

1. Minimise impacts to the availability and affordability of housing in regional communities;

2. Mitigate short term impacts relating to project start-up activities;

3. Improve the availability of housing diversity that sustains low income households within the community;

4. Release supply constraints which inhibit the private housing market from responding to increases in demand;

5. Monitor housing market activity to determine the effectiveness of strategies in stabilising the property market and develop adaptive management practices to respond to them.

1.4 APPROACH TO THE IPHS STRATEGY The approach to the IPHS adopted by GLNG has been developed in consultation with government agencies, including the Department of Infrastructure and Planning (DIP), the Department of Communities (DOCs), Councils and local stakeholders. The initial starting point has been to identify the housing impacts that could potentially arise as a result of the GLNG project development, the

desired outcomes which need to be achieved (as summarised above), and from this, strategies to address housing needs. The analysis undertaken and discussions with stakeholders (see sections 4.4 and 5.4) have emphasised the need for the IPHS to focus on a suite of strategies rather than any single strategy. Details of the strategies are provided at the end of each section. GLNG’s IPHS supports the management of the potential cumulative impacts from multiple projects on Gladstone housing. While specific formulas have been provided to GLNG as a guide for developing a housing response, through extensive consultation with key regional stakeholders GLNG recognises the need for a broad range of strategies to deal with this issue. The Queensland Resources Council (QRC) response to the Draft Major Project Housing Policy (MPHS) prepared by the former Department of Infrastructure and Planning (DIP) in September 2010, also supports a wider approach to the development of housing strategies as indicated by the following statement.

..it is essential that the complex external environment is recognised, with factors such as land availability, local government planning schemes, and State government housing approaches potentially having significant implications.

(QRC, Draft Major Projects Housing Policy – Key Industry Feedback Points, undated) A broader approach is also supported in relevant literature. To address some of the issues in relation to housing supply, Rolfe et al (2007) suggested: mechanisms be developed to improve supply of housing, through stimulating land availability,

private investment or building activity; and a planned approach be implemented to improve liveability and lifestyle amenity to attract and

retain skilled workers. Some of the strategies identified in the DOCs 2009 paper are: facilitating partnerships with investors, developers and not-for-profit organisations to submit

applications for funding for new affordable rental housing under the National Rental Affordability Scheme (NRAS);

sale of land for residential development which includes a requirement for a minimum proportion of affordable housing;

utilising proceeds of land sales to subsidise affordable housing developments; and establishing a local investment fund to support affordable housing projects. All strategies identified in this IPHS will require monitoring of the cumulative impacts of potentially four major LNG proposals and a series of other industrial developments in Gladstone. Where appropriate, GLNG has identified strategies that offer collaborative opportunities to mitigate against cumulative impacts. The key role for government in coordinating and monitoring approaches should also be recognised.

1.5 SUMMARY OF RESPONSE TO CO-ORDINATOR GENERAL’S CONDITIONS

The relevant CG conditions are included in full in Appendix A. The table below summarises the key responses to the conditions that are facilitated through this IPHS. Sections 4.5 and 5.5 demonstrate GLNG’s commitment to investment in a broad range of housing strategies to address housing issues in the community.

Condition 9 - IPHS

Develop an IPHS including: provision of housing by a range of means for workforce that is not housed by temporary worker

accommodation including (but not limited to) the direct supply of housing/units and facilitating joint ventures for construction of dwellings;

investment in community housing; strategies to advise workers and families of accommodation options; monitoring impacts on affordable housing; and review performance of the workforce housing supply.

IPHS Strategy Responses

This IPHS addresses: a) The GLNG Project’s workforce housing strategy (Sections 4.1 & 5.1) b) Community housing analysis and investment proposals (Sections 4.4 & 4.6 and 5.4 & 5.6) c) Strategies to advise workers of accommodation options (Section 4.1.3.5 and 5.1.6.4) d) Monitoring impacts on affordable housing (Sections 4.3 & 4.6 and 5.3 & 5.6) e) Review performance of the workforce housing supply (Section 4.6.1.5 and 5.6.1.5)

Condition 10—Housing for Gladstone region

Provide new or additional housing stock to meet 50 % or other percentage concluded from the IPHS and approved by the CG of the GLNG Project’s workforce seeking to settle in the Gladstone region. As a guide and based on EIS workforce estimates, the CG Report suggests: a) 100 houses/units by 12 months after commencement of construction; b) 190 houses/units by 18 months; and c) Maintain this number of housing units until month 40 of the project.


Details of GLNG’s updated worker numbers for the Gladstone Region are provided in section 5.1.5.

GLNG has applied the following definition of a worker “seeking to settle in the Gladstone Regional Council area” (referred to throughout this IPHS as ‘settlers”):

An individual who previously did not live in Gladstone and has relocated to Gladstone for permanent ongoing employment with GLNG’s Operations.

Housing requirements (Operations i.e. permanent workforce)

Total workforce = 150 Comprising: 20% local (30) 20% FIFO (30) 60% settlers (90)

Given the current and predicted housing availability in Gladstone, GLNG has determined that the suggested benchmark of 50% is a reasonable percentage to be applied to this settling workforce to determine its new housing commitment.

In accordance with this interpretation, GLNG’s new housing commitment in the Gladstone Region will be 45 (90 settlers/2 = 45).

GLNG will provide at a minimum, 45 new dwellings by 2015. However, GLNG may construct dwellings beyond this minimum and potentially up to 90 dwellings or sufficient housing to house the final number of permanent staff settled in Gladstone by 2015, subject to ongoing monitoring of the housing market.

Condition 11—Housing for Roma region

Provide new or additional housing stock in the Roma region to meet 100% or other percentage concluded from the IPHS and approved by the CG of the GLNG project’s workforce seeking to settle in the Maranoa Regional Council area. As a guide and using GLNG EIS workforce estimates, the CG suggests: a) 63 houses/units by 12 months after commencement of the project b) 92 houses/units by 24 months c) 127 houses/units by 36 months d) 160 houses/units by 4 years.


Details of Santos’ updated worker numbers for the Roma region are provided in section 4.1.1.

Santos has applied the following definition of a worker “seeking to settle in the Maranoa Regional Council area” (referred to throughout this IPHS as ‘settlers”):

An individual who previously did not live in Roma and has relocated to Roma for permanent ongoing employment with Santos’ Operations.

In summary, Santos considers that the market responses underway in Roma will be sufficient to meet the limited number (up to 18) of Santos workers settling in the Roma community over the next four years. The justification for this position is provided in section 4.6.

GLNG will focus its new housing contributions to the Roma community on Affordable and Social housing as detailed in Condition 12 below.

Condition 12—Affordable and community housing solutions

In addition, for each worker to be accommodated in the region’s housing pool, GLNG is to provide resources for housing at the rate of:

Community Housing a) 1 house /unit for every 20 imported workers settling in Gladstone; and b) 1 house /unit for every 20 imported workers settling in Roma Affordable Housing a) 1 house/unit for every 11 imported workers settling in Gladstone; and b) 1 house/unit for every 15 imported workers settling in Roma.


Gladstone Peak Operations workforce (settlers) = 90 Housing requirements Community Housing 90/20 = 5 Affordable Housing 90/11 = 8 In accordance with this condition, GLNG will provide at a minimum, 5 new Community Housing dwellings and 8 new Affordable Housing dwellings. In addition, GLNG has identified several other strategies to support this market segment, the details of which can be found in section 5.6. Roma Given the low number of Santos workers to be accommodated in the Roma Region’s housing pool (up to 18 over 4 years), Santos has consulted extensively with the Maranoa Regional Council (MRC)

to determine a suitable investment in affordable and social housing infrastructure. In summary, Santos will provide up to $5M in funding for social and affordable housing dwellings. In addition, Santos has identified several other strategies to support this market segment, the details of which can be found in section 4.6.

2.0 OVERVIEW OF OTHER MAJOR PROJECTS Understanding the impact and timing of other major projects is relevant to understanding potential cumulative impacts on housing demand and the implications this may have on housing supply in the region. Cumulative impacts are particularly relevant in the Gladstone context, given the scale of anticipated growth in the resource sector in coming years, and are of a substantially lesser scale in the Maranoa region. This warrants a more detailed consideration of other major projects to be carried out in the Gladstone region and the impacts these may have on the local housing market. The Coordinator-General’s report identifies four major projects in Gladstone that may particularly affect cumulative impact on housing demand. These projects are the Queensland Curtis LNG project, Australia Pacific LNG project, Shell Australia LNG and the Wiggins Island Coal Terminal, which are described briefly below. In the Maranoa region, other major coal seam gas projects are located to the east of Roma, and cumulative impacts on housing are likely to be spread across a wide area rather than being concentrated on one or two communities (GLNG 2009 – Supplementary EIS) (D1 page 32). 2.1 MAJOR PROJECTS IN THE GLADSTONE REGION 2.1.1 Queensland Curtis LNG Project The proposed Queensland Curtis LNG Project involves the development by QGC, a BG group company, of QGC’s existing CSG fields in the Surat Basin. The fields are located around Moonie, Wandoan, Condamine and Chinchilla, approximately 50-100 km east of the GLNG fields (Queensland Curtis LNG 2010). The project will also involve a 540km pipeline, located 50-100 km east of GLNG’s pipeline, and construction of an LNG processing facility on Curtis Island. The Curtis Island facility is located adjacent to the GLNG facility. Construction will involve a peak construction workforce of up to 5000 workers, with approximately 700 operational staff required once construction is complete. An EIS for the project was lodged in late August 2009 with submissions closing in October 2009. Qld Government approval was received in June 2010. (QGC 2011)

QGC commenced work on this project following FID in October 2010. 2.1.2 Australia Pacific LNG The Australia Pacific LNG project will also involve field development, pipeline and processing facilities. Origin Energy and Conoco Phillips are proponents of the project.

The gas fields are located to the east of the GLNG fields, as is the 450 km long pipeline connecting the fields to the processing facility on Curtis Island. A peak of up to 5,000 construction jobs will be created, and 1,000 ongoing operational workers will be required. (APLNG 2011)

An EIS for the project was released in March 2010 with submissions closing in May 2010. The EIS supplemental was completed in September 2010. FID is planned to occur in June 2011. 2.1.3 Arrow Energy LNG Project (Previously Shell Australia LNG Project)

This project was previously called the Shell Australia LNG Project and was being developed by CSG (Australia) a joint venture between Shell and a subsidiary of PetroChina (Shell 2010). Arrow Energy has recently been acquired by this joint venture and the project rebranded as Arrow Energy (Shell 2010). Arrow Energy proposes to build an LNG production facility to process coal seam gas on Curtis Island. The facility is located adjacent to the GLNG site. The project is expected to employ 2,500-3,000 during peak construction and 200-300 operationally. An impact assessment study was released in May 2009. Final Terms of Reference were released in January 2010. An EIS is currently in preparation (Arrow Energy 2010). 2.1.4 Wiggins Island Coal Terminal The project involves a new coal terminal at Wiggins Island by project proponents, Gladstone Ports Corporation Limited. It is anticipated that the project will employ an additional 500 construction staff and approximately 130 operational staff. Final investment decision for this project is expected in early 2011 (GEIDB 2010). 2.2 CUMULATIVE IMPACTS 2.2.1 Workforce Peak workforce estimates based on the relevant EIS documents and information available to date are set out in the table below. However, it is noted that these projects may (or may not) proceed and that construction schedules and associated workforce figures are likely to continue to change. The Office of Economic and Statistical Research (OESR) is currently preparing a model of cumulative workforce projections based on consultation with the various project proponents. However, these estimates were not available at the time of preparing this strategy. Table 1: Overview of Other Major Projects (indicative only)

Project Construction Workforce

(Peak)

Wiggins Island Coal Terminal 500

Queensland Curtis LNG 5,000

Fisherman’s Landing Port Expansion 150

Gladstone LNG Project – Fisherman’s Landing 120

Gladstone Pacific Nickel Refinery (metals project) 2,300

Boyne Island Aluminium Smelter 450

Yarwun Alumina refinery 950

Sun LNG 400

Australia Pacific LNG Project 4,000-5,000

Shell Australia LNG (Arrow Energy LNG) 3,000

Gladstone Steel Making facility 2,100

Source: GLNG 2009 – Supplementary EIS updated with GEIDB 2010 Gladstone Regional Council (GRC) has also recently prepared three scenarios to identify potential cumulative workforce demand, based on figures obtained from EIS reports and other documents. The workforce requirements and timing of the projects included in the estimate may have changed since the estimates were made (e.g. Gladstone Pacific Nickel has not proceeded), however, the figures do provide an approximate indication of cumulative workforce and approximate timing of

peak workforce demand. Nevertheless, Council acknowledges that there is a high degree of uncertainty that makes an accurate picture of overall workforce numbers very difficult to determine. The graphs shown below are an estimate of workforce numbers, excluding those workers that are anticipated to be accommodated in CAFs. Scenario 3 would currently appear to be the most likely to occur, although it is clear that the total number may be subject to continuing change.

Figure 2: Scenario 1 (2 x LNG projects and Fisherman’s Land Port Expansion)

Source: GRC 2010

Figure 3: Scenario 2 (1 x LNG project, Fisherman’s Land Port Expansion)

and Gladstone Pacific Nickel) Source: GRC 2010

Figure 4: Scenario 3 (2 x LNG projects, Fisherman’s Land Port Expansion)

and Gladstone Pacific Nickel) Source: GRC 2010

2.3 SUMMARY AND IMPLICATIONS The review of information on cumulative demand suggests the following:

it is difficult to establish cumulative workforce and housing demand with any accuracy based on the information available to date, although it is understood that OESR will be producing a model to this end in early 2011;

the LNG projects are the most significant in terms of projected workforce; the peak demand is projected to be in 2012 to 2013, however, the ramp-up effect on the housing

market in the next two years could also be significant; and there is a potential arising from the consequences of cumulative demand for housing for

increases in real estate and rental values, which could be sustained for three or four years.

3.0 POLICY AND PRACTICE FRAMEWORK Literature that has relevance to housing provision for the GLNG project is discussed below, particularly focussing on: government policies and guidelines relevant to housing in resource communities; housing issues and needs in resource communities; current national housing initiatives; and leading practice in addressing housing need in resource communities. A common theme that can be drawn from the available policy framework and best practice literature is that there is a need for optimising the liveability and sustainability of resource communities, particularly having regard to community permanence and development of housing affordability. The available literature identifies that common issues include: increasing housing costs due to high demand/sometimes limited supply and that resource

companies buying houses in a tight market can force prices up; achieving a balance between workers living locally versus fly-in, fly-out (FIFO) workers; affordability impact for low income earners and other key workers for rental and purchase of

housing; difficulty retaining and attracting staff in businesses unable to compete with salaries paid in the

mining industry; mismatch between housing needs and types available; risk in housing investment due to boom/bust cycles; other local social and economic impacts for communities; and constraints to supply which can be caused by limited availability of land in some towns, limited

infrastructure capacity, delays in planning and approvals process and availability of builders. Particular recommendations for holistic solutions needing action by government and resource companies, include: capturing social and economic benefits locally; encouraging permanence and greater liveability / attractiveness of towns (sustainable

communities); ensuring land supply to avoid squeeze on affordability; increased provision of community and affordable housing; greater flexibility/range in density and housing types (through planning schemes and providers); providing different housing types at different price points; and encouraging development at locations with access to infrastructure and services.

3.1 GOVERNMENT POLICIES AND PROGRAMS 3.1.1 Current Queensland Government Initiatives 3.1.1.1 Sustainable Resource Communities Policy The Sustainable Resource Communities Policy (DTRDI 2008) was developed to address the impacts of rapid development in resource communities in Queensland. The policy was designed to maximise the benefits presented by resource industry development as well as to mitigate and avoid the adverse impacts (Franks et al 2010). The policy focused on three main geographical areas – the Bowen Basin, the Surat Basin and the North West Minerals Provence. The policy aims to: strengthen the Government’s coordination role; improve linkages between social impact assessment and regional planning; foster partnerships with local government, industry and community; and enhance regulatory environment for social impact assessment. As part of the Sustainable Resource Communities Policy (2008) the Queensland Government announced that it would develop a Major Projects Housing Policy (MPHP), of which a consultation draft has been released. The Major Projects Housing Policy is intended to detail principles and policy positions regarding housing for major project workforces, as well as a framework to consider housing for new and expanded mining and petroleum developments. 3.1.1.2 Draft Major Projects Housing Policy (MPHP) In September 2010, the Department of Infrastructure and Planning (DIP) prepared the Draft Major Projects Housing Policy, which is intended to guide proponents of major projects in considering accommodation and housing issues as part of the EIS process. Although the GLNG EIS has already been prepared, the content of the policy is relevant as it provides an indication of the housing issues and needs that the DIP is focussing on within resource communities. The draft policy contains the following principles to be considered in the preparation of a social impact assessment: a commitment to growth management and liveability of resource communities;

environmental and social impact assessments which include housing requirements, impacts and mitigation strategies;

project proponents should consider using existing infrastructure where feasible;

consideration should be given to relevant planning mechanisms under the Sustainable Planning Act (including state planning policies and any existing regional plans, priority infrastructure plans, Local Government planning schemes and community plans);

promotion of medium density accommodation (specifically considering State Planning Policy 1/07 on Housing and Residential Development);

EIS should provide strategies for accommodation of workers if there is insufficient local housing stock available, and strategies should consider regional and local impacts;

adverse impacts on local and regional housing markets should be identified and considered, and strategies to mitigate impacts should be identified;

cumulative impacts of multiple projects in the region should be considered and taken into account.

there should be early stakeholder engagement on accommodation related matters.

(DIP 2010a) Finalisation of the MPHP is expected to commence in early 2011. Resources on accommodation and housing issues and best practice examples are expected to be provided as part of the new policy and these are expected to be developed by March 2011. Methods for funding and delivery of housing studies in resource communities are also proposed to ensure companies have access to relevant information (DIP 2010b). 3.1.1.3 SPP 1/07 – Housing and Residential Development State Planning Policy (SPP) 1/07 – Housing and Residential Development was adopted by the Queensland government on 17 December 2006 ‘…to ensure larger, high growth local governments identify their community’s housing needs and analyse, and modify if necessary, their planning schemes to remove barriers and provide opportunities for housing options that respond to identified needs’. The SPP and associated guideline provides a framework for local governments to identify the housing needs in their community and remove barriers to, and provide opportunities for, a range of housing opportunities in responding to these needs. ‘Housing needs’ refers to the underlying requirement people may have for housing in terms of quality, tenure, dwelling type, cost and location. ‘Unmet housing need’ describes the extent of the mismatch between housing that is supplied to the market in order to meet perceived demand and the extent to which that housing meets actual needs. Unmet housing need occurs when households cannot find housing that is appropriate to their requirements. It is acknowledged that the extent and nature of housing need is difficult to predict. In order to support local governments in addressing local housing needs, the SPP requires that a housing needs assessment be undertaken, along with a planning scheme analysis to identify: existing and future housing needs; impediments to providing housing to meet these needs; and statutory and non-statutory provisions to support these needs being addressed in the future. Gladstone Regional Council is required to prepare a housing needs assessment and it is understood that this work is currently underway. However, none of the former Local Government Areas (LGAs) that make up the amalgamated Maranoa Regional Council are required to undertake such an assessment.

3.1.1.4 ULDA Affordable Housing Strategy The Urban Land Development Authority (ULDA) is an ‘independent statutory authority’ that was established in 2007 as part of the Queensland Government’s Housing Affordability Strategy (also discussed in Appendix C). The ULDA’s role is to assist in delivering affordable housing, and a range of housing options, to support the housing needs of communities within Queensland. In so doing, the ULDA works with other State agencies, local government, community sectors, the development industry and local landholders to achieve appropriate development outcomes. (ULDA 2008) The ULDA has an Affordable Housing Strategy (2009) which outlines how it will facilitate the provision of affordable housing within the urban development areas (UDA) including the types of affordable housing, target groups and the mechanisms to achieve certain outcomes. Affordable housing supports the retention of diverse communities and avoids dislocation of low income households. This also facilitates economic benefits for local areas by assisting with employment and retention of low income employees. (ULDA, 2009) The ULDA Affordable Housing Strategy suggests that with respect to affordable housing; ‘healthy communities require a range of housing options to address different lifestyles, household compositions and budgets’ and that ‘improving housing delivery, affordability, design and choice will result in more diverse and inclusive communities’. Affordable housing needs to be well-designed and well-located to achieve appropriate community integration and this can be achieved through: mixing affordable housing throughout a community and avoiding ‘clusters’ or segregated areas; providing high quality design outcomes for affordable housing; and locating affordable housing close to centres, employment, transport and services. To this end, ULDA has prepared guidance in the form of its Residential 30 Design Guideline which is summarised in Appendix B (ULDA 2010c). The ULDA’s affordable housing objectives identified in the Affordable Housing Strategy are as follows: Affordable Housing Objectives Target of a minimum of 15% of all dwellings developed in the UDAs to be affordable to people

on low to moderate incomes. Affordable housing that supports affordable living through sustainable design, which will reduce

living costs for households and lifecycle costs for owners. Seamless integration of affordable housing by:

mixing affordable housing through the development and not clustering together or segregating from other dwellings;

requiring quality design outcomes to avoid identifying them or setting them apart from the community.

Designing for the safety, well being and quality of life of the community and neighbourhood. Target of 10% of all dwellings to conform to universal and sustainable design principles. Location of affordable housing next to centres, employment, transport and services.

In relation to social and community housing, the ULDA does not provide this form of housing, however, it facilitates its inclusion through working with community housing organisations and the Department of Communities (in relation to the DOC’s purchase / construction program). The ULDA’s Affordable Housing Strategy is implemented through a variety of mechanisms, including: a development agreement covering details of monetary contributions, provision of built

product, and mechanisms to ensure the housing is retained over the long term; a monitoring and evaluation program; facilitating access to state and federal affordable housing programs; defining roles and responsibilities of government, the NFP organisations and the private sector. The distinction between housing affordability and affordable housing is made in the Affordable Housing Strategy through the following definitions: Housing Affordability – ‘relates to the impacts of the prevailing economic, financial and social costs associated with housing demand and supply that may constrain the ability of households to own or rent their own home and represents the underlying cost of developing housing for the market.’ Affordable Housing – ‘relates to the ability of sections within our community to be able to afford the cost of housing whether through ownership or the rental market.’ The strategy provides further definition of affordable housing as housing which can be ‘reasonably afforded by low to moderate income households’ and it includes private rental housing, owner occupied housing and social housing1. The ULDA uses two indicators to determine whether housing is affordable, which are: housing is for low to moderate household income levels which are described as household

incomes of between $40,000 and $80,000; and households are spending no more than 30% of gross household income on rent and 35% of gross

household income on home ownership. The ULDA activities aimed at achieving the affordable housing target (15%) are summarised below and relate to direct and indirect actions. Direct Actions Provisions in ULDA development schemes mandating a percentage of dwellings in residential

projects meet prescribed affordability criteria. An affordable housing development contribution (monetary or built product), where a

developer elects to use the higher development yield in the development scheme. In respect of ULDA development activities - additional affordable housing provision and

diversity of product as well as reinvestment of surplus funds into affordable housing outcomes.

1 The ULDA does not provide social housing directly but collaborates with public and community housing providers to

facilitate social housing in Urban Development Areas.

Indirect Actions (facilitation of others) Assistance to not-for-profit housing organisations with design, development requirements and

approval processes to expedite the delivery of affordable housing product in UDAs. Collaboration with DOCs to facilitate its involvement in the UDAs, through the DOCs standard

purchase program. Additionally, the ULDA Housing Affordability Strategy includes advice around specific implementation mechanisms to retain affordable housing over the long term. 3.1.1.5 ULDA Non-resident Worker Accommodation (Guideline 3) In addition to the affordable housing strategy, the ULDA has recently prepared a guideline aimed at locating and designing high quality accommodation facilities for non-resident workers (ULDA 2010d). This guideline is specifically prepared to guide the development of ‘mining camps’ within UDAs in resource towns, such as Moranbah and Blackwater. The guideline includes a number of planning and design elements and benchmarks that are underpinning by two overarching principles, which are:

1) Non-resident worker accommodation is located and designed to be integrated within or on the edge of town; and

2) Non-resident worker accommodation adequately provides for occupants and has a high level of on-site amenity.

3.1.2 Current National Housing Initiatives Current federal programs are aimed at addressing housing affordability more generally, although these initiatives have potential application in resource communities given that affordability concerns underlie a range of resource related housing issues. 3.1.2.1 Housing Affordability Fund (HAF) Under the Housing Affordability Fund (HAF), the federal government is investing $512 million over a five year period to lower the cost of building new homes (Australian Government 2008). In particular, the aim is to ‘improve the supply of new housing and make housing more affordable for home buyers entering the market’ (Australian Government 2008). The two areas that the fund targets in relation to the supply of housing are: holding costs incurred by developers as a result of long planning and approval waiting times;

and infrastructure costs, such as water, sewerage, transport, and open space.

(DFaCCSIA 2010) The fund targets greenfield and infill developments where high dwelling demand currently exists or is forecast. Applications for the funding are assessed against transparent, needs-based selection criteria with priority given to proposals that improve the supply of new, moderately priced housing and demonstrate how cost savings are passed on to new home buyers.

3.1.2.2 National Rental Affordability Scheme (NRAS) The National Rental Affordability Scheme (NRAS) is a federal funding initiative (approximately $622.6 million worth of funding) to ‘stimulate the supply of new affordable rental dwellings by up to 50,0002 by June 2012’ in addition to reducing rental costs for low-moderate income households and encouraging large-scale investment and innovative delivery of affordable housing. A key part of the NRAS is the ability to foster partnerships with the private sector for the delivery of affordable housing (Commonwealth of Australia, 2009). The NRAS specifically responds to the lack of an affordable rental housing supply, particularly given the reduction in private investment in rental properties. The scheme offers incentives for the provision of affordable housing whereby:

‘successful NRAS applicants are eligible to receive a National Rental Incentive for each approved dwelling where they are rented to eligible low and moderate income households at 20 per cent below market rates.’

The national rental incentive for each approved dwelling is provided as an annual monetary incentive for a ten (10) year period which includes: a federal-based government incentive via a refundable tax offset (comprising approximately

75% of the overall incentive payment); and a State-based incentive (comprising approximately 25% of the overall incentive payment) which

may take the form of a cash grant, concession or stamp duty. Eligible tenants’ income must be equal to or less than the initial income limit when they become a tenant of a NRAS dwelling. Income may increase up to 25% (the upper income limit) before their eligibility is affected. A key benefit of the NRAS is it benefits income-earners that may be on a social housing waiting list but are not considered priority candidates. As part of fostering partnerships with the private sector, the NRAS is also designed to pool resources from a range of participants including financial institutions, not-for-profit organisations and local government which, when combined with the incentives, will increase the supply of more affordable rental accommodation. These resources could include ‘loans, equity investments, capital grants by Commonwealth, State and Territory or Local Governments; donations by charities, free or discounted land by churches, or contributions by developers in accordance with planning requirements’ (Commonwealth of Australia, 2009). The Honourable Tanya Plibersek MP, Minister for Housing (and the Status of Women) recently presented at the Australian Green Development Forum seminar (21 April 2010) and discussed the NRAS and anticipated that ‘it will be largest driver of growth’ in housing. However, the Minister indicated that the Federal government has also identified some issues associated with financial institutions being unwilling to support NRAS proposals and that there may need to be discussions with such institutions given that there is little risk in renting properties that are below 20% of market rents.

2 50,000 dwellings nation-wide

Throughout Queensland, the NRAS program is being implemented and in particular the Horizon Housing Company has already established NRAS housing that is available to rent at locations such as Southport (1 and 2 bedroom apartments for $225/week rent) and at Bellmere, west of Caboolture (4 bedroom houses for $250/week rent (Gold Coast Housing Company Ltd, 2010). 3.1.2.3 Nation Building Economic Stimulus Plan – Social Housing Funding The Nation Building – Economic Stimulus Plan (NBESP) was introduced by the federal government in December 2008 and was ‘designed to provide strong and decisive action to support jobs and insulate the Australian economy from the worst of the global downturn’ and result in ‘an unprecedented investment in Australia's long-term infrastructure needs and provide the jobs and capital funding to keep Australia's economy running’ (Commonwealth of Australia 2010). The overall intention of the NBESP therefore is to fund projects that would boost expenditure on local infrastructure which will support employment, thereby resulting in lasting benefits for communities and local economies across Australia. In February 2009, the Federal government announced the provision of funding for social housing under the NBESP. The social housing initiative will:

‘provide funding of $5.238 billion over 3.5 years from 2008-09 to 2011-12 for the construction of new social housing (in two stages), and a further $400 million over two years for repairs and maintenance to existing public housing dwellings’. (Australian Government 2010)

This initiative is being conducted in partnership with State government and is specifically intended to ‘boost public housing and housing administered by the not-for-profit community sector’. (Commonwealth of Australia, 2010) Under the NBESP there are currently 13,000 social housing units under construction and 1,000 completed across Australia3. This includes the project at Fitzgibbon (in South East Queensland) within an urban development area under the Urban Land Development Authority (ULDA). The project is delivering 48 social housing apartments of varying sizes, under the NBESP, that are integrated with a range of other housing types. The NBESP projects identified for the Gladstone region are outlined in section 5.4 of this report. 3.2 HOUSING ISSUES IN RESOURCE COMMUNITIES 3.2.1 Overview of Housing in Mining Communities Traditionally, mining towns were developed and maintained by the mining companies themselves, including infrastructure, roads, housing and community facilities. There has been a shift away from this model of housing provision, particularly since the late 90s with mining companies reducing their housing stock. Mining companies now tend to use a range of subsidised loans, one-off home purchase grants and guaranteed buy-back schemes to encourage and support workers to purchase

3 Based on advice from the Honourable Tania Plibersek MP, Minister for Housing (and the Status of Women) (via

presentation at Australian Green Development Forum seminar on 21 April 2010).

their own property (McKenzie et al 2009). This model can also create issues for regional and remote communities. In addition, the occurrence of fly-in, fly-out (FIFO) and drive-in, drive-out (DIDO) has become more common, especially during the construction phase of a project (McKenzie et al 2009). This allows employees to remain living in their existing communities when not rostered on, while commuting to the construction site for a few days at a time. This arrangement has become more popular due to:

the high cost of building and maintaining remote mining towns; difficulty of closing these towns once mining concludes; shorter mine lives; difficulty attracting workers to remote areas; and lower air travel costs. (McKenzie et al 2009) There are a number of benefits for workers driving this trend towards FIFO and DIDO Working arrangements in mining communities which are also relevant to resource communities more generally. Some of the key factors influencing decisions to relocate to mining towns are identified in a report on workforce mobility in Moranbah by Rolfe and Ivanova (2007). The key factors identified in this study include:

availability of employment for family members; health and education services; housing and rental prices; standard of public infrastructure; salary incentives. (Rolfe and Ivanova (2007) While working, temporary residents often live in housing camps or single persons quarters (SPQs) located close to the project site or on the outskirts of towns (McKenzie et al 2009). In some instances, temporary workers are accommodated in caravans, cabins, motels or hotels, which can be problematic as it reduces access to this form of affordable accommodation for non-mine workers and low paid employees, as well as for visitors to the area (McKenzie et al 2009). The result is a negative impact on the community and displacement of residents with the highest needs. Many mining communities believe that this type of accommodation model (i.e. temporary accommodation) means that residents are missing out on the benefits and wealth associated with mining. At the same time, an advantage of FIFO and DIDO positions is that partners and families of workers can be located in areas that are more affordable and have better opportunities for employment (McKenzie et al 2009).

3.2.2 Housing Demand and Supply in Resource Communities In a report on mining industry employment and accommodation practices (Deborah Wilson Consulting Service, 2008), mining companies were surveyed to identify the current issues relating to worker accommodation. The key issues identified in this survey include: the high cost of housing; housing and accommodation shortages, including specific types of housing such as houses for

families and single persons; issues slowing the construction of new accommodation, including a lack of builders and trades

people, lack of land availability, slow approval process and high development costs. These findings are supported by other literature focusing on why the supply of private housing has not met demand in particular mining communities. Some of these are: limited availability and release of land; limited availability of building contractors (as well as housing for building contractors); caution from investors, unwilling to invest in mining towns that typically experience boom/bust

cycles; constraints in infrastructure provision in some communities; and constraints and delays in planning and approvals process. (Rolfe et al 2007) Petkova et al (2009) noted the reluctance of banks to loan for housing in remote locations that are supported by industries with definite lifespans. This issue has been exacerbated in recent years as a result of the global financial crisis (GFC) with developers requiring significant pre-sales to secure funding. The Petkova et al (2009) report identifies one respondent who acknowledged the problems with workers encouraged to buy expensive homes during boom periods, which could be worth significantly less if the mine was to reduce production or close (Petkova et al 2009). In terms of specific housing needs evident in resource communities, a discussion paper prepared by the Department of Communities in 2009 identifies a need for a diversity of housing types and housing tenures (DOCs 2009). Specifically, a need is identified for temporary accommodation (in forms such as caravan parks, single persons quarters and work camps), affordable rental units and houses, as well as houses that are affordable on an average local income. Housing markets in resource communities are often unstable due to the boom and bust cycle of local economies, which is a risk for investors. The effect of this is significant shortfalls in housing during boom periods that drives up prices and impacts low income households with the least capacity to pay (DOCs 2009). In addition, key worker housing (i.e. housing for low to moderate income earners) can also be a problem when high accommodation costs drive workers into unsuitable housing arrangements (DOCs 2009). To address some of these issues in relation to housing supply, Rolfe et al (2007) suggested: mechanisms be developed to improve supply of housing, through stimulating land availability,

private investment or building activity; a planned approach be implemented to improve liveability and lifestyle amenity to attract and

retain skilled workers; and

changes to the EIS process and development of a joint planning and approvals process between proponents and government to identify responsibility and funding for infrastructure.

In Central Queensland, research on housing was undertaken in five resource towns - Moranbah, Biloela, Moura, Theodore and Mackay (Yabsley et al 2008). The research found that in the five towns modelled, the current rate of housing development was lower than the Queensland rate, despite the areas being some of the fastest growing in the state. The model identified a downward trend in demand for private separate housing and increased demand for other housing options. It also found there was an inadequate stock of housing to meet future housing demand from single persons and couples without children. It recommended that attention is placed on developing flats, duplexes and other high-density dwellings in these mining communities. (Yabsley et al 2008) In the Pilbara region, Newman et al (2010) argue for the importance of developing mining communities into sustainable cities. They argue that increasing fuel costs will reduce the affordability of FIFO workers (predominantly from Perth) in the Pilbara region and it was therefore important that Pilbara mining communities provided sustainable, liveable cities to accommodate workers. Four themes to building good cities were suggested: economic development and diversity; infrastructure (social and physical); planning and place making; and governance. (Newman et al 2010) One of the ten strategies suggested to achieve this was increased access to affordable housing. Affordable housing was also recognised as an important part of place-making. The report suggested that housing affordability could be achieved through: using cheaper materials and structural forms that can be mass-produced or pre-fabricated; constructing a range of housing types, including denser housing; governance arrangements that enable more market-oriented housing release; and requirements for affordable housing in all developments. (Newman et al 2010) 3.2.3 Housing Issues in Gladstone Recently, a Social Infrastructure Strategic Plan (SIS Plan) was undertaken for the Gladstone Regional Council area in order to inform and guide future planning activities and investment decisions for strategic social infrastructure (Buckley Vann Town Planning, Briggs & Mortar Pty Ltd and Andrea Young Planning Consultants 2010). The SIS Plan was developed to better inform contributions to the regional social infrastructure capital base by current and future private sector industrial proponents.

A review of available literature was undertaken as part of that project. While housing availability and affordability issues are common to many parts of the country, particular housing related issues for Gladstone were identified as:

demographic changes, such as the increase in young single workers and young families moving into the region, were found to be impacting on housing needs, especially low cost housing;

there was unequal distribution of economic growth, with socio-economic disadvantage increasing. Residents with lower incomes have been forced to outer and remote areas to find affordable housing;

the housing market has been impacted by major projects occurring in the region, including the shortage of suitable and affordable accommodation for both the construction and operational workforce associated with various projects. Existing residents have incurred rising house and rental prices which may prove unaffordable;

the literature review concluded that there would be continued pressure on housing stock in the Gladstone region, particularly from the potential cumulative impacts of industry projects. A long term surplus of supply was also forecast by industry, after larger workforces were no longer needed when construction of projects was completed; and

unrelated to increased industrial development, is the ageing of the existing population in the Gladstone region as well as the number of older people wanting to retire in the region. There was a substantial under-supply in retirement units, aged care beds and respite centres. Older residents may be forced out of the region to find suitable accommodation.

3.2.4 The Bowen Basin Experience The Bowen Basin covers an area of 60,000km2 with 47 operational coal mines (Franks et al 2010). Some of the issues associated with the growth of this area are impacts on social and economic infrastructure, a shortage of accommodation and housing, skills shortages, and difficulty in retaining staff and pressure on community services (Franks et al 2010). The result of this shortage of housing is evident in Moranbah, where in May 2006, accommodation was 95.5 per cent more expensive than in Brisbane (Rolfe et al 2007). During this period, rents in excess of $700 per week were recorded in Moranbah and Emerald for a four bedroom house (Rolfe et al 2007). The following common housing concerns were identified in the Bowen Basin:

under-supply; high cost; variable standards; mismatch between local needs and housing types; and inequalities in the social distribution of housing benefits. (McKenzie et al 2009) Research undertaken by Petkova et al (2009) found similar results. The research involved interviews with businesses, households and work camp residents from Blackwater, Springsure/Rolleston, Moranbah and Nebo/Coppabella in the Bowen Basin region. Negative impacts from rising accommodation costs and shortages of supply that were identified in these interviews include: financial hardship for low income earners and one income families; reports of workers camping or sleeping in cars; difficulty retaining and attracting staff in businesses unable to compete with salaries paid in the

mining industry;

atypical demographic structures; and high population turnover. (Petkova et al 2009) In Moranbah, particular pressure has been placed on housing costs by new mining and related industries competing with residents for the purchase of houses in which to accommodate workers. The adverse impacts of this on house prices are magnified by the limited land and housing supply in the town. It was also found that student turnover in schools was affected with some schools having declining enrolments while others showed consistent enrolment numbers but had a constant flow of students coming and going over the year (Petkova et al 2009). Anecdotally, it was noted that there was also a high teacher turnover, which may be attributable to temporary partners working in the resources sector or high housing costs. The former Department of Local Government, Planning, Sport and Recreation (DLGPSR) conducted a study entitled A Sustainable Futures Framework for Queensland Mining Towns (2007) regarding mining communities in the Bowen Basin area. It identified the following issues in relation to housing in communities: the existing housing stock was predominantly made up of single dwellings on relatively large

lots. Planning schemes provide limited opportunities for multiple dwellings or small lot housing; non-mine employees as well as young people, low-income earners and unemployed people

cannot afford housing. Young people are forced to leave town; mine workers don’t want to build because there is a risk that the value of that investment may

drop when mines close or construction is completed; builders aren’t able to keep up with demand; home ownership has contributed to community permanence and involvement in social

networks; caravan parks are full of transient residents and contractors. There was also pressure to develop

caravan parks sites to construct dwellings and to identify locations where new caravan parks could be located.

(DLGPSR 2007) 3.2.5 Abbott Point Housing Strategies

Another study was undertaken in 2010 by SGS Economics and Planning to determine the impact of the inconsistent and unpredictable population growth expected in the Bowen Abbot Point region. This region also attracts a large temporary population associated with seasonal fruit and vegetable picking. Temporary workforce was accommodated in backpacker hostels, camping grounds, cabins, caravans and shared rental accommodation (SGS 2010).

The predicted growth and decline in housing demand generated by residents and non-residents (including temporary housing for seasonal and construction workforces) indicated significant variability in the number of dwellings required over a seven year period (2009-2015). The number of dwellings is expected to increase from a total of 9,169 dwellings in 2009 to a peak of 13,914 dwellings in 2012.

Recommendations of the study focussed on the planning and development system to deliver housing outcomes and included strategies to:

provide temporary accommodation close to town to maximise benefits to existing town areas and provide workers with access to existing services and facilities;

construct diverse housing types for residents and non-resident population; enable sufficient supply of land for a range of residential densities and opportunities; encourage housing types and diversity at different price points to meet different housing needs; facilitate development at locations with access to infrastructure and services; recognise the value of existing housing stock and the need to replace this stock over time. (SGS 2010) 3.2.6 Other Experiences in Resource Communities The Department of Communities prepared an internal discussion paper in 2009 that focused on housing affordability in resource communities and specific strategies to address the increase in demand for social infrastructure, particularly housing in these regions. Some of the strategies identified in the DOC’s paper are:

facilitating partnerships with investors, developers and not-for-profits to submit applications for funding for new affordable rental housing under NRAS;

sale of land for residential development which includes a requirement for a minimum proportion of affordable housing;

utilising proceeds of land sales to subsidise affordable housing developments; and establishing a local investment fund to support affordable housing projects. (DOCs 2009)

These strategies are drawn from a number of examples, which are outlined below. Whitsunday Affordable Housing Project, Jubilee Pocket

An initiative of the Whitsunday Housing Company and the Whitsunday Shire Council, this project involved the sale of Council land at minimal cost to the housing company and capital funding from the Queensland Government. In addition, site headworks were funded by Council and other technical and professional services were donated. The project included the construction of over 60 affordable housing dwelling units. Cosgrove, Townsville This project involved the sale of residential land at Cosgrove, Townsville by the Department of Environment and Resource Management. Attached to the sale of the land was a condition requiring that a percentage of the lots be available at an affordable price to first home buyers, or sold back to DOCs for social housing. Moranbah Another example of affordable housing delivery mechanisms outlined in the DOC’s discussion document, involved a development in Moranbah for affordable rental housing. The Council purchased and then sold a 350 lot subdivision, utilising the profits to construct 45 affordable dwelling units. The Queensland Government also contributed a grant through the Sustainable Resources Partnership to offset some of the construction costs. Low and middle income families are target demographic for this project.

In addition to these Queensland based examples, Woodside’s Pluto LNG Project addressed potential housing impacts by supporting the provision of permanent as well as temporary accommodation options, flexible design for a range of family types, alternative design of housing to support additional community uses (e.g. day care) and possible provision of housing for other businesses. 3.3 SUMMARY AND IMPLICATIONS There needs to be a commitment to liveability and sustainability of resource communities. The existing housing stock in resource communities is predominantly made up of single

dwellings on relatively large lots. Alternative forms of housing need to be promoted to meet diverse household needs and facilitate more affordable options. Affordable housing needs to be well-designed and well-located to achieve appropriate community integration.

Other common housing concerns in resource communities include:

under-supply and high cost,

financial hardship for lower income earners and potential homelessness, and inequalities - in the distribution of benefits from increases of house value, and

ability to house key workers in other industries. Key reasons identified why the supply of private housing has not met demand in particular

mining communities include:

limited availability and release of land;

limited availability of building contractors (as well as housing for building contractors);

cost of infrastructure;

constraints in infrastructure provision in some communities; and

constraints and delays in planning and approvals process. Strategies that can be adopted by GLNG to facilitate housing supply include:

mechanisms to improve the supply of housing through stimulating land availability, private investment or building activity; and

a planned approach to improve liveability and lifestyle amenity to attract and retain skilled workers, and to develop mining communities in sustainable cities.

The ULDA can potentially play a role in facilitating the provision of affordable housing through collaboration with public and community housing providers in the region which will support the retention of diverse communities and avoid dislocation of low income households.

A range of other government initiatives (including HAF and NRAS) may be available to support the implementation of housing strategies for the GLNG project.

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4.0 HOUSING STRATEGY – UPSTREAM (CGS FIELDS) 4.1 WORKFORCE AND HOUSING REQUIREMENTS The workforce requirements for the coal seam gas fields (Upstream) component of the GLNG Project are described below. These workforce estimates include updated figures reflecting the progression from the EIS phase to the post FID phase (implementation). The subsequent appointment of Engineering Procurement and Construction (EPC) contractors has further refined the workforce estimates required to construct the project. This strategy is based on the current workforce projections which are different to those described in the EIS4. 4.1.1 CSG Fields Workforce - Current Projections (as at March 2011) Current workforce estimates for CSG fields in the Maranoa Regional Council area are set out in Table 2 below. Table 2: Current Workforce Requirements for CSG Fields (Maranoa)

Workforce Type 2011 2012 2013 2014

Contractors – Upstream Facilities and Infrastructure Construction

670 1350 950 270

Contractors – Drilling and Completions 400 400 400 400

Contractors – Operations D&C 100 200 250 300

Santos - Operations 150 250 280 290

Santos – Roma Centre 57 63 71 75

Total 1,377 2,263 1,951 1,335

4.1.2 CSG Fields – Worker Housing Strategy 4.1.2.1 Contractors – Upstream Facilities and Infrastructure Construction All workers involved in the construction of the upstream facilities and infrastructure (such as compressor stations, access tracks, water management facilities etc) will be housed in temporary worker accommodation facilities at the work sites. 4.1.2.2 Contractors – Drilling and Completions All workers involved in the drilling and completion of CSG wells will be housed in temporary worker accommodation facilities at the well sites. 4.1.2.3 Santos Operations All workers involved in the ongoing maintenance and operation of CSG infrastructure will be housed in permanent worker accommodation facilities in the field. 4.1.2.4 Santos Roma Centre The Santos Roma Centre based in Currie St Roma is the base for approximately 57 permanent workers. Of this 57, 40% (23) commute via a FIFO roster and 60% (34) live locally. The Santos Roma

4 Please refer to section 3.6.8 of the GLNG EIS

Centre is set to grow by 18 new staff by 2014. Following the current ratio of local:FIFO, this would mean the potential for an additional 11 new staff settling in Roma over the next four years. It is this workforce element that has the potential to impact on the availability of housing in the Roma community. The Coordinator-General’s approval conditions request Santos to consider the supply of new housing for 100% of its workers settling in the Roma community, or a percentage identified by this strategy. Santos also notes that this request was based around the uncertainty of the market to meet the demand of the project’s workforce settling in Roma. Santos considers the housing market in Roma is well placed to provide the housing stock to meet the needs of its workforce estimates proposed to settle in Roma over the next four years. Section 4.2 below provides the evidence base to support this view. OESR population projections for the Roma community have also been reviewed to determine if housing development plans will meet the flow-on population growth, resulting from support industries establishing or expanding their operations in Roma. 4.1.2.5 Employee Assistance Santos’ Community Engagement team based in Roma will assist with advising workers and families wishing to settle in Roma of their accommodation options under this Strategy. These services include: orientation within the Roma community (schools/hospitals/transport hubs/health services/sport

and recreation activities etc) assimilation activities for workers of a Culturally and Linguistically Diverse (CALD) background. 4.1.2.6 Contractor Workforce – Support Industries Santos acknowledges that population growth will occur as support industries locate to Roma to compete for goods and services required by the project. It is impossible to predict the number of businesses that may relocate to Roma as a result of the GLNG project announcement. To this end, Housing Strategies 3-10 in section 4.6 have been developed to facilitate sustainable growth in the population resulting from support industry migration. 4.2 ROMA HOUSING MARKET ANALYSIS This section sets out an analysis of available data on the supply of land and housing in the Maranoa region. The statistics used are the latest available at the time of preparing this report. This assessment is then compared to the demand for housing generated by the GLNG projects, based on workforce and housing assumptions. The analysis strongly indicates that there is no underlying land supply constraint in Maranoa. The housing market in Roma appears to have remained relatively steady through the global financial crisis with lot and housing approvals tracking closely to projected population levels. House prices have steadily increased in the Maranoa region, and affordability has reduced at a commensurate level. Rental vacancy rates have been variable and have reduced considerably in the year to 2008/09 and then increased slightly to 2009/10. Rental costs have also risen, with rental stress increasing as a result.

The primary potential impacts on local housing markets created by the GLNG project may be on rental and other short term forms of accommodation, and affordable housing. The ability of the local housing market to respond to these demands is discussed below. 4.2.1 Population Projections 4.2.1.1 Population Projections The most recent population projections for the Maranoa Regional Council prepared by OESR are shown in Figure 5 below.

Figure 5: Population projections, Maranoa Regional Council Source: OESR 2010a

A review of estimated resident population for 2009 and 2010 suggests that actual population growth since 2006 is tracking just slightly above low series population projections. 4.2.1.2 Household Projections To assist in the estimation of dwelling demand, projected increase in the number of households in the Maranoa Regional Council area are provided below based on medium series population projections (see Table 3). Table 3: Household Type Projections for MRC

2006 2011 2016 2021 2026 2031

Total Household Projections 5,162 5,355 5,661 5,925 6,067 6,135

Cumulative Increase in Total Households - 193 499 763 905 973

Source: OESR 2010a The data in the above table shows that the projected total increase in households for the area to 2031 is 973 households. This represents an average annual increase in households of 39 households5 per year (782 households over 25 years to 2031) across a number of towns, however, the majority of growth is expected to occur in Roma. 4.2.2 Residential Land Supply and Activity 4.2.2.1 Existing Residential Land Supply As OESR’s Broadhectare Study land data is not available for the Maranoa region, an estimate of potential land supply has been made based on a desktop mapping review.

5 Rounded up from 38.9 households.

Developable parcels of zoned urban or rural residential land are shown on (Figure 6). These have been determined taking into account “overlay” level constraints identified in the planning scheme. These areas equate to approximately 93ha, of which approximately 19ha are zoned urban. Combined, this land might yield in the order of 500 new lots (around 200 urban lots and 300 rural residential lots) at net densities of 10 lots/ha and 4 lots/ha respectively. A greater yield would of course result if some or all of the rural residential land were utilised at urban level densities. In addition to these areas, the UDA land (refer section 4.2.2) has a potential yield in the order of 300 lots. Given currently projected annual household increase rates (39 households per year), this land stock equates to a very substantial supply (well beyond 15 years supply).

Figure 6: Developable Land Plan, Roma

4.2.2.2 Residential Lot Approvals The latest information received from Council (based on consultation in October, 2010) indicated the following status of residential lot supply: 24 lots completed; 24 lots approved; 50 lots under current development application; and 30 lots proposed. In addition, in a report prepared by Colliers International (2010b) it was estimated that there is a supply of approximately 62 vacant lots, currently available for sale, within the Roma township boundary. This suggests that there is likely to be in the order of 4 to 6 years supply of lots in the development pipeline, based on an average annual increase of 39 households. 4.2.3 Housing Supply and Dwelling Activity 4.2.3.1 Existing Housing Stock6 The existing dwelling stock in the Maranoa LGA is characterised as follows:

the proportion of separate houses in the Maranoa LGA (92.4%) is significantly higher than in Queensland (79.5%);

the proportion of semi-detached dwellings in the area (1.4%) is significantly lower than for Queensland (7.6%);

the proportion of flats in the Maranoa LGA (4.8%) is lower than in Queensland (11.2%). In respect of housing tenure, the following characteristics are noted from the 2006 Census: the Maranoa LGA has high levels of full home ownership (37.4%) and lower levels of homes

being purchased (27.8%) compared to Queensland (30.4% and 31.4% respectively); a comparable proportion of dwellings are being rented in the Maranoa LGA (30.7%) compared

to Queensland (31.1%). Data from the 2006 Census shows that 20.2% of all dwellings in the Maranoa LGA had 0-2 bedrooms, 46.6% of all dwellings had 3 bedrooms and 30.9% had 4 or more bedrooms. The Maranoa LGA had a slightly lower proportion of 0-2 bedroom dwellings compared to Queensland (21.9%) and a slightly higher proportion of 3 bedroom dwellings (45.0%). The proportion of dwellings with 4 or more bedrooms in the Maranoa LGA was comparable to the proportion for Queensland (31.0%)7.

6 Percentages for Queensland are taken from the DOC’s Gladstone Housing Analysis to ensure consistency with the

figures in section 5.3.4.1. 7 Calculations included ‘not stated’ responses so percentages will not add to give 100%.

4.2.3.2 Dwelling Approvals New dwelling approvals have been steady between 2004 and 2009, as shown in Figure 7. In 2009, 41 new dwellings were approved in the Maranoa area, which is comparable to the approvals over the previous five years.

Figure 7: New Dwelling Approvals, Maranoa Regional Council Area

Source: OESR 2010b The above data shows that the average number of dwelling approvals over the past 6 years (2004 -2009) 8 is 41 approvals. This compares to the projected dwelling demand (based on household growth) of up to 39 dwellings per year. 4.2.4 Summary and Implications Some of the overarching implicati0ns that can be drawn from the above analysis includes: Current growth projections anticipate an additional 973 households in the Maranoa Regional

Council area by 2031, equating to 39 per annum. There appears to be a substantial supply of residential land and approved or proposed lots in

Roma (around 15 years supply of land and around 5 years supply of lots, based on the projected growth rate);

The number of dwelling approvals remained steady to 2009 and commensurate with projected growth rates (at around 40 per annum).

4.3 ROMA HOUSING AFFORDABILITY ANALYSIS The Coordinator-General has further requested that Santos mitigate the impact of its accommodation strategy on Affordable Housing. Specifically, it is required that Santos provides new Affordable Housing at a rate of 1 house/unit for every 15 imported workers settling in Roma. Given the small number of Santos workers predicted to settle in the Roma community, it is considered that applying this ratio will not be the most effective way for Santos to deal with the Affordable Housing issue in Roma. The analysis provided below demonstrates that Affordable Housing is the segment most at risk in the Roma community as a result of industrial growth generally.

8 The figure for the year 2003 is omitted due to the low number of approvals in this year compared with the following 6

years.

Santos is committed to mitigating potential impacts on Affordable Housing. Details of Santos’ proposed approaches to address this matter are provided in section 4.6. 4.3.1 Defining Affordable Housing in Roma The ULDA has an Affordable Housing Strategy, which outlines how the ULDA will facilitate the provision of affordable housing. Affordable housing is defined by the ULDA as the ability of sections within our community to be able to afford the cost of housing (ULDA, 2009). This includes private rental housing, owner occupied housing and social housing. Social housing is housing provided by government, and is discussed separately in section 4.4. The ULDA uses two indicators to determine whether its housing is affordable, which are: Housing is for low to moderate household income levels (in recognition that social housing

mechanisms are anticipated to cater for the lowest earning residents) which are described as household incomes of between $40,000 and $80,000; and

Households are spending no more than 30% of gross household income on rent and 35% of gross household income on home ownership.

This relates to both the affordable purchase (mortgage payments) and affordable rental of properties. Using the ULDA definition in recognition that the type of affordable housing to be targeted is that through the private housing market, the following affordability levels can be established in Roma.

Affordable weekly rental, Roma $230-$460 per week

Median weekly rent 3 bedroom house $340

Median weekly rent 2 bedroom unit $2309

Median weekly rent 3 bedroom townhouse $340

Affordable housing purchase10 $165,000-$330,000

Median sales price house11 $298,000

Median sales price units/townhouses N/A Source: Calculated on REIQ December Quarter 2010 data

Median rents in Roma appear to be relatively high. Only a 2 bedroom unit is just affordable to the lowest income earner in the range. Townhouses and houses are only affordable to those earning over approximately $60,000 per annum. Purchase price (provided for houses only) appears affordable to those earning over approximately $70,000 pa but would be impossible at the lower end of the range, not least because no unit sales were recorded. This means that for affordable dwellings to be provided to low to moderate income earners, they must be provided in the range of $165,000-$330,000, and must be able to be rented for between $230-460 per week.

9 Low numbers

10 Excludes consideration of deposits/fees etc – loan only over 25 years at 7%

11 As at December Quarter 2010

The following is an analysis of housing affordability in Roma. 4.3.2 Residential Land and Housing Market 4.3.2.1 Residential Lot Sales and Median Sale Prices Vacant land sales in the Maranoa region show that just 6 lots were sold during the December 2010 quarter (REIQ 2011), while the median sale price of vacant urban land over the 12 months to December 2010 was $106,000 for the MRC area (REIQ 2011). Over the past five years, the median sale price of vacant urban land increased by 137.4 per cent. Over the preceding June and September quarters, the number of land sales has remained fairly stable with 7 sales being recorded for both the June and September periods. However, median sale prices have gradually increased over a 12 month period from $75,000 (12 months to June 2010) to $106,000 (12 months to September 2010). Table 4: Median Sales Data - Vacant Urban Land, Maranoa Regional Council

Area No. of Sales December

Quarter 2010

December Quarter

2010

Change over

Quarter

12 Months to end of

December 2010

Change over 1 year

Change over 5 Years

Maranoa (LGA)

6 n.a. n.a. $106,000 86.0% 137.4%

Roma 3 n.a. n.a. $120,000 n.a. 140.0%

Source: REIQ 2011 4.3.2.2 Dwelling Sales and Median Sale Price There were around 108 houses for sale in the Roma township in June 2010 (see Table ) (Colliers International 2010b). Of these, 37 per cent were on the market for over $350,000. Most properties were priced between $250,000 and $350,000. The majority of these homes have three or four bedrooms. Just eight per cent of the houses for sale had two bedrooms (Colliers International 2010b). There were 11 units for sale in Roma in June 2010 (Colliers International 2010b). Table 5: Number of Houses for Sale, June 2010, Roma

Price Range Number %

$250,000 19 18%

$250,000 - $350,000 49 45%

$350,000 - $$450,000 21 19%

> $450,000 19 18%

Total 108 100%

Source: Colliers International 2010b A comparison of median dwelling (and land) prices in 2009/2010 for the Surat Basin (see Figure 8) suggests the median prices in Maranoa Regional Council are generally more affordable than adjoining local government areas in the region. However, the median detached house price was slightly higher than the median price in the Western Downs. It is notable that house prices in the Maranoa Regional Council area increased by 112% between 2004/05 and 2009/10, which is the highest rate of increase in the region (DOCs 2010c).

There were an insufficient number of records for flat/unit/townhouse dwellings in Maranoa in this period for comparison.

Figure 8: Median Dwelling and Land Prices for 2009/10

Source: DOCs 2010c Data from the REIQ (2011) (refer Table ) suggests that the housing market in the Maranoa region continued to rise in the December 2011 quarter in terms of the median sale price of houses. During this period, the median sale price in the region increased by 17.7 per cent and over the year, 12.9 per cent. Although the median sale prices were significantly less than the prices in Brisbane Statistical Division (SD), the percentage growth experienced in median sale price was significantly higher over the December quarter and over the last five years.

Table 6: Median Sale Price of Houses, Maranoa Regional Council area

Area Number of Sales

December Quarter

2010

December Quarter

2010

Change over

Quarter

12 Months to end of

December 2010

Change over 1 year

Change over 5 Years

Maranoa (LGA) 30 $280,750 17.7% $276,500 12.9% 112.7%

Roma 24 $298,000 -1.2% $288,000 12.4% 94.6%

Brisbane (SD) 4,860 $460,000 2.0% $450,000 9.8% 45.2%

Source: REIQ 2011

4.3.2.3 Home Purchase Affordability12 As a measure of home purchase affordability, the DOCs housing snapshot (2010c) uses an income median multiple for the Western Downs, Maranoa and Toowoomba Regional Council areas (refer Figure 9). As median multiple increases, affordability declines. The figure below shows that home purchase affordability has decreased in all areas, with the greatest decrease in Maranoa Regional Council followed by Western Downs Regional Council. The median multiple for the Maranoa Regional Council area was 4.3 in 2009/10, which was higher than the target of 3.0 (the sustainable median multiple), but lower than the Queensland median multiple (6.3) and the median multiple for Toowoomba (5.2) and Western Downs (4.6).

Figure 9: Median Multiple for Surat Basin and Queensland (2004/05 – 2009/10)

Source: DOCs 2010c 4.3.3 Rental Market 4.3.3.1 Vacancy Rate Figure 10 shows rental vacancy rates for LGAs in the Surat Basin compared with Queensland. The figures suggest there is a high degree of variability in the vacancy rates for the Maranoa Regional Council that is not evident across Queensland, which may be a result of the lower number of rental dwellings, as well as the variable nature of housing demand in resource communities.

12

It is noted that the equivalent data used for the Gladstone region is ‘at risk purchasers’. This difference is due to the different sources of data used for each area. At risk purchasers is a measure of the proportion of households in the lower 50% of the income distribution paying over 40% of households on mortgage repayments. Median multiple uses the median gross household income of households aged between 25 - 39 years divided by median detached house sale price. Hence, the former is a measure of mortgagees considered ‘at risk’, whereas, the latter is a measure of the affordability of entering into home ownership, particularly for first home buyers.

Figure 10: Rental Vacancy Rates 2004/05 to 2009/10

Source: DOCs 2010c A study prepared for the GLNG EIS confirms that the rental market in the Roma area was tight in 2008, which corresponds with the rental vacancy rates shown above. At this time, there were limited properties available for rent and rental prices were increasing steadily between 2003 and 2008 (GLNG 2009 – EIS) (GLNG Accommodation Study Page 21). According to the above figure, the vacancy rate for Maranoa Regional Council in 2009/10 was slightly lower (2.4%) than the healthy residential vacancy rate of around 3.0% (DOCs 2010c). 4.3.3.2 Availability of Rental Housing Figure 11 shows that the total number of rented dwellings rose from 599 rented dwellings in 2004/05 to 824 rented dwellings in 2009/10, representing an increase of 225 dwellings over 5 years. The total number of rented dwellings in the Maranoa Regional Council area is significantly less than the adjoining LGA, Western Downs Regional Council.

Figure 11: Surat Basin – Number of Rented Dwellings 2004/05 and 2009/10

Source: DOCs 2010c

4.3.3.3 Median Weekly Rents Compared with Western Downs and Toowoomba Regional Councils, 2009/10 median rents in the Maranoa Regional Council area were comparable for a 2 bedroom dwelling ($200/wk), and higher for a 3 bedroom dwelling ($300/wk) and for a 4 bedroom dwelling ($370/wk), as shown in Figure 12. For all dwelling types, median prices in the Surat Basin were lower than for Queensland.

Figure 12: Median Rents for 2009/10

Source: DOCs 2010c The median rent for 2 bedroom dwellings has increased substantially between 2004/05 and 2009/10 (74%) in the Maranoa Regional Council area. Similarly, the median rent for 3 bedroom (76%) and 4 bedroom (95%) dwellings (DOCs 2010c) has also increased. The tables below show a comparison of median rental prices for apartments, flats and units, and houses for different sized dwellings (refer to Table 7, Table and Table 9). The data is for new bonds received by the Residential Tenancies Authority during each three month period and relates to the township of Roma, rather than the whole Maranoa Regional Council area. For houses, median rental prices increased quite substantially for all dwelling sizes. From December 2008 to December 2010, the median weekly rent for a 4 bedroom house increased from $320 to $450 (an increase of 43%), while the number of bonds received doubled. There were relatively few new bonds received by the Residential Tenancies Authority for 1 bedroom and 3 bedroom flats and units in Roma and therefore the median rental prices are less reliable. For 2 bedroom flats, the median rental price increased over the three periods surveyed while the number of bonds received declined. The median rental price for 2 and 3 bedroom town houses increased over the three quarters surveyed in 2008 to 2010, while the number of new bond lodgements for these dwelling varied slightly over the same period.

Table 7: Median Weekly Rents for New Bonds - Houses, Roma

Type of Property Dec Qtr 08 Dec Qtr 09 Dec Qtr 10

Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

2 Bedroom House $195 6 $200 12 $280 5

3 Bedroom House $270 52 $290 47 $340 51

4 Bedroom House $320 21 $350 17 $450 20 Note: The relatively small number of bond lodgements for properties in these areas make median rent values less reliable.

Source: Residential Tenancies Authority 2011 Table 8: Median Weekly Rents for New Bonds – Flats/Units, Roma


Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

1 Bedroom Flat/Unit n.a. 1 n.a. 2 n.a. 1

2 Bedroom Flat/Unit $150 28 $160 16 $230 10

3 Bedroom Flat/Unit n.a. 2 n.a. 2 n.a. 3 Note: The relatively small number of bond lodgements for properties in these areas make median rent values less reliable. n.a. Not Available (number of bonds lodged too small - less than 5)

Source: Residential Tenancies Authority 2011

Table 9: Median Weekly Rents for New Bonds – Town Houses, Roma


Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

2 Bedroom Town House $195 6 $200 12 $280 5

3 Bedroom Town House $270 52 $290 47 $340 51 Note: The relatively small number of bond lodgements for properties in these areas make median rent values less reliable.

Source: Residential Tenancies Authority 2011 4.3.3.4 Unaffordable Rental Accommodation Rental affordability stress can be measured by assessing the proportion of household income consumed on rental costs. For each Council area in the Surat Basin, the median rent for all rental dwellings is calculated and divided by the income of a household in the 40th percentile of the income distribution. An expenditure of 30% of gross household income or less is generally considered affordable. An analysis of rental affordability for the Maranoa region (refer Figure 13) shows an increase from 16% to 25% of a low income households’ income required to meet the median rent between 2004/05 and 2009/10. This is broadly in line with the growth in median rents in the Maranoa Regional Council area during the time period.

Figure 13: Overall Rental Affordability 2004/05 to 2009/10

Source: DOCs 2010c 4.3.4 Summary and Implications Median dwelling and land prices are generally more affordable in the Maranoa Regional Council

area compared to adjacent Council areas and Queensland, however, the median price for a detached house has increased by 112% between 2004/05 – 2009/10.

Home purchase affordability (using the median multiple measure) decreased over the same period. The median multiple for the Maranoa Regional Council area was 4.3 in 2009/10, which was slightly higher than the ‘sustainable’ median multiple (3.0) but lower than the median multiple for Queensland (6.3).

Rental vacancy rates have varied significantly across the Surat Basin, and is currently relatively low.

There has been an increase in the proportion of gross household income spent on median rents from 16% to 25% for households in the 40th percentile of the income distribution between 2004/05 – 2009/10.

4.4 SOCIAL AND COMMUNITY HOUSING ANALYSIS IN ROMA The Coordinator-General has also requested that GLNG provide new community housing at a rate of 1 house/unit for every 20 imported workers settling in Roma. Social and community housing provide housing to the lowest income earners. Public housing is that managed by the former Queensland Department of Housing, now the Department of Communities (Housing and Homelessness Services), including Aboriginal and Torres Strait Islander Housing. Community housing is housing that is publicly owned and managed by funded community housing sector or Local Government housing providers. Community housing can deliver either long term community housing or time-limited transitional housing. The Department of Communities (Housing and Homelessness Services) works with community housing providers within one social housing system, to ensure that housing assistance is provided to households in greatest need for the duration of that need. Given the small number of Santos workers predicted to settle in the Roma community, it is considered that applying this ratio will not be the most effective way for Santos to deal with the

community housing issue in Roma. The analysis provided in 4.4 below demonstrates that housing for the lowest income earners is an ‘at risk’ segment as a result of industrial growth generally. Santos is committed to mitigating potential impacts to community housing. Details of Santos’ proposed approaches to address this issue are provided in section 4.6. 4.4.1 Social Housing Stock Details of existing social housing stock for the Maranoa Regional Council area have been provided by the Department of Communities as at October 2010 (refer Table 10 below). As shown, the total number of social housing dwellings in the region is 256 and approximately half of these dwellings are three bedroom detached houses. Table 10: Numbers of Social Housing Dwellings (Oct 2010)

Dwelling Type Bedroom Count Total

Apartment 2 5

Apartment 3 1

Cluster Housing 2 7

Cluster Housing 3 3

Detached House 2 13

Detached House 3 127

Detached House 4 14

Detached House 5 1

Detached House 6 1

Dual Occupancy 2 6

Dual Occupancy 3 2

Duplex 1 2

Duplex 2 34

Duplex 3 4

Senior Unit 1 20

Senior Unit 2 16

Total 256

Source: DOCs 2010b 4.4.2 Demand for Social Housing Table 11 to Table 13 below summarise DOC’s data relating to the demand for social housing in the Maranoa Regional Council area and the specific types and locations of dwellings in demand. The key points that can be drawn from this data are: the vast majority of applicants on the housing register as at 31 October 2010 were seeking a

social housing dwelling in the Roma area; half of the applicants on the register applied for a two bedroom dwelling; and approximately half of the applicants had been on the waiting list for a period of six months or

less, while no applicants had been waiting for a period longer than two years.

Table 11: Number of Applications on Waiting List

Wait List Area Total

Injune Area 1

Mitchell Area 1

Roma Area 25

Surat Area 2

Wallumbilla Area 1

Maranoa Regional Council 30

Source: DOCs 2010b Table 12: Number of Applications on Waiting List by Dwelling Size

Wait List Area

Dwelling Size

Total Seniors' Unit

One Bedroom

Two Bedroom

Three Bedroom

Four Bedroom

More than Four Bedroom

Injune Area 0 1 0 0 0 0 1

Mitchell Area 0 0 1 0 0 0 1

Roma Area 1 4 12 7 1 0 25

Surat Area 0 0 1 1 0 0 2

Wallumbilla Area 0 0 1 0 0 0 1

Maranoa Regional Council 1 5 15 8 1 0 30

Source: DOCs 2010b Table 13: Number of Application on Waiting List by Time on Housing Register

Local Government Area Less

than six months

Six months to less

than one year

One year to less

than two years

Two years to less than

three years

Three years to less than

four years

Four years and

more

Total

Maranoa Regional Council 14 9 7 0 0 0 30

Source: DOCs 2010b 4.4.3 National Rental Affordability Scheme (NRAS)Housing At the time of writing there were no NRAS dwellings approved or constructed in Roma or in the Maranoa region. 4.4.4 National Building Economic Stimulus Package (NBESP) Housing At the time of writing there were no NBESP dwellings proposed in Roma or in the Maranoa region. 4.4.5 Summary and Implications The current stock of social housing dwellings is 256 dwellings, most of which are detached 3

bedroom houses. It is understood that all of these dwellings are managed by the State Government as opposed to community housing organisations.

There were no existing or proposed community housing dwellings (including NRAS) at the time of writing.

There is limited demand for social housing dwellings with 30 applicants on the housing register as at 31 October 2010 and the longest waiting period on the housing register was between 1 year to less than 2 years.

4.5 CONSULTATION WITH KEY STAKEHOLDERS 4.5.1 Overview of Consultation Activities Stakeholder consultation specific to the IPHS was undertaken through October and November 2010. This followed a 24 month stakeholder engagement programme as part of the development of the GLNG Environmental Impact Statement. The purpose of the IPHS consultation was to:

enhance understanding of the local issues affecting the development and delivery of housing responses;

discuss the lessons learned from previous experiences; coordinate approaches with other major project stakeholders and Government agencies identify collaboration opportunities; inform the development of strategies to address impacts on the local housing market; and test the strategy framework developed by the project team. The following stakeholder groups listed in Table 14 were consulted through this period. Table 14: IPHS Stakeholder Consultation Stakeholder Type

Stakeholder Name Purpose of Consultation

Consultation Method

Date Consulted

State Government

Dept of Infrastructure & Planning (Social Impact Unit)

Presentation of draft Housing Strategy

Meeting 16 November 2010

Dept of Communities Presentation of draft Housing Strategy


OESR Data gathering Meeting October 2010

ULDA Data gathering Meeting 15 October & 9 November 2010

Local Government

Maranoa Regional Council officers

Data gathering Meeting 7 October 2010


Workshop 11 November 2010

Presentation of Upstream Housing Strategies

Workshop 08 February 2011

Discussion of community investment announcements

Meeting 09 February 2011

Discussion of ULDA affordable housing partnership opportunities

Meeting 03 March 2011

Maranoa Regional Council officers

Presentation of Housing Strategy investments

Meeting 7 April 2011

Local Developers / Builders

Brett Cherry, Roma Local market knowledge

Meeting 7 October 2010

Steven Merrick, Roma Local market knowledge


Stakeholder Type


Consultation Method

Date Consulted

Not for Profit Organisations (eg. Community Housing organisations)

St Vincent De Paul, Roma

Local market knowledge


Peak Industry Body

Queensland Resources Council

Industry position on housing conditioning

Workshops Meeting

October 2010 November 2010

LNG Proponents Origin

Collaboration opportunities

Meeting January 2011

Maranoa Regional Community Consultative Committee

Multiple key local stakeholders in Roma

Update on consultation findings as part of GLNG’s Integrated Housing Strategy (Upstream element)

Meeting 9 December 2010

Strategy overview of GLNG’s Integrated Housing Strategy (Upstream element)


Santos’ key message to stakeholders during consultation was that there was no one solution to address the housing issues. It was clear that a range of strategies would be required to both mitigate impacts and meet the intent of the CG’s conditions. Positive feedback and support for this approach was received from stakeholders. In summary, there was a firm commitment from all partners to work collaboratively on the issues over the life of the project. Furthermore, there was a specific requirement from the Coordinator-General for Santos to work collaboratively with other industry proponents specifically on the housing issues. Santos has discussed its housing strategy with Origin Energy (the only other major proponent operating within Santos’ regional communities) and the proponents have agreed to work together to explore joint housing outcomes for the Maranoa region. These discussions are in progress as Origin is yet to achieve FID. 4.5.2 Consultation Outcomes The consultation process provided an insightful understanding of the housing issues currently facing the Maranoa region and the anticipated impacts of the CSG industry on the local housing market. The outcomes can broadly be categorised into the following themes:

information / data on the local housing market; issues affecting housing delivery; opportunities for partnerships / suggested strategies; and identification of housing needs. The following table outlines the key outcomes of the consultation process which contributed to the development of this IPHS. The following section identifies that these contributed greatly to the development of the GLNG Integrated Project Housing Strategy.

Table 15: Summary of Key Consultation Outcomes (Maranoa)

Theme Key Outcomes

Opportunities for partnerships / suggested strategies

Council officers shared Santos’ view on a responsible approach to housing support and not taking a blanket approach which could potentially flood the market.

Council views the ULDA as the prime opportunity for affordable housing options in Roma with 300 dwellings planned in the coming years.

Council is considering lodging a National Rental Affordability Scheme (NRAS) application in December with Horizon Housing, ULDA and possibly Santos (non-committed agreement).

St Vincent de Paul would be interested in partnering on upcoming projects, particularly in relation to single person accommodation.

Endeavour Foundation is looking to redevelop their site to better suit their needs. May be some opportunity to explore options for single person accommodation.

Council suggested that a potential area of resource is around planning consultants to assess development applications (if applications increase) and a mediator to assist in resolving disputes which are holding up the delivery of housing to the market.

It was noted that the old Telstra building next to the bowls club in Worrell Street could be a potential option for a boarding house / single person form of accommodation.

ULDA are considering future approaches in Roma which include ‘salt and peppering’ affordable housing throughout the township.

Information / data on housing market

A number of lots are currently approved or are being assessed: 24 lots approved, 50 lots current DA, 24 lots completed, 30 lots proposed.

Therefore a total of around 158 lots is ready to go or coming on line, as well as the 300 lots proposed by the ULDA.

There is development approval for 320 lot subdivision subject to infrastructure agreement (Stage 1: 25 lots).

Generally around 60 approvals for houses in Roma each year. There were around 27 houses approved per year over the last four years.

St Vincent de Paul has a number of developments planned over the next five or so years, including: 6 x 1-bedroom units; 6 x 2-bedroom units; 6-8 x 1-bedroom units;

ULDA site (311 detached lots with 350 dwellings) will be commencing construction in early 2011 with completion by end June 2011. Council suggests the first phase would be 80 lots.

The local construction industry has the capacity and ability to fulfil increased demand however there is a need to ensure that any potential constraints around infrastructure and approval negotiations do not hinder the ability to bring stock online.

There hasn’t been a big demand for housing for some time. There is reluctance from developers and land owners to proceed until final investment decisions (FID) are made.

Issues / concerns in relation to the local housing market

Council noted pressures on Wallumbilla and Injune as some residents are living in these areas and commuting into Roma due to cost of accommodation (assumed renting). It was noted that Injune is landlocked due to native title issues, which should be ultimately resolved by Council.

Theme Key Outcomes

Council noted that developers seem to be hesitating in moving forward with housing development in the area which may be attributable to pending final investment decisions.

Council noted that developers around town had not previously expressed any interest in developing alternative forms of housing.

A perception that Council do not appear to be receptive to the development of alternative forms of housing outside of the traditional brick home on larger blocks (around 800sqm).

Main issue in building housing is around land and the cost of infrastructure needed to bring land on. Additional costs around 6 star environmental ratings are also increasing building costs.

It would be beneficial to scatter higher density housing throughout the town. The UDA is the only site where alternative forms of housing can be developed. The alternate approval pathways for different forms of housing within the same market was raised as an issue.

Negotiations regarding infrastructure can frustrate and delay the approval process.

Specific housing needs identified

Local builders can employ more staff to meet construction needs, however there is an issue around affordability and availability of housing for apprentices and builders. There is a need for one bedroom accommodation for workers and builders in town.

Council identified that ‘key worker housing’ (for example, teachers and police workers) appeared to be the most critical area of need in the community.

A key area of need is rental accommodation. The purchase price of housing appears to be within reasonable grasp, however the rental market is unaffordable for the lower income earners (for example, apprentices). A lack of suitable accommodation (i.e. one-bedroom apartments) appears to drive the rental of two and three-bedroom houses to a higher cost to the renter.

The issue in Roma is not social housing, as there are currently around three people on the register. The issue is affordable housing.

Need in market for housing for apprentices (single bedroom accommodation). It was suggested that the TAFE might have numbers to assess demand for this form of accommodation.

Hostel accommodation or accommodation for single persons is needed.

4.5.3 Implications for the Development of Integrated Strategies The consultation process has universally identified the need for the IPHS to contain a suite of strategies rather than to focus on any single strategy such as the direct provision of housing for workers. Indeed the opportunities identified by stakeholders suggested a significant disconnect between the housing needs of the community and CSG workers’ needs. The types of strategies identified through consultation with stakeholders included: Strategies that do not flood the market with additional housing, but take a responsible

approach to housing support. Partnerships with local stakeholders, including a potential NRAS proposal, and two single

person accommodation proposals. Removing barriers to supply through providing assistance to Council with processing

development applications and mediating disputes which are holding up the delivery of housing to the market.

Removing constraints around infrastructure and approval negotiations which inhibit the ability to bring stock online.

Providing certainty to developers and landowners which will enable them to proceed. Demonstrating and facilitating the development of alternative forms of housing. Ensuring the availability of small, affordable dwellings for apprentices and builders. Ensuring the availability of affordable housing for key workers such as teachers and police. Focusing on the provision of affordable rental accommodation (rather than purchase). Concentrating on affordable housing rather than social housing (the latter not required). Providing hostel accommodation or accommodation for single persons. 4.6 SANTOS’ STRATEGIC APPROACH TO HOUSING IN THE MARANOA REGION 4.6.1 Key Objectives The preceding analysis and discussions with stakeholders have emphasised the need for the IPHS to contain a suite of strategies rather than to focus on any single strategy. The key objectives which underlie these strategies are as follows:




4. Release supply constraints which inhibit the private housing market from responding to increases in demand;


The Housing Strategies detailed below have been developed based on stakeholder feedback on the most appropriate responses to address housing issues in the Maranoa region. Santos will work through the Maranoa Regional Community Consultative Committee (as required by the Coordinator-General) to monitor the performance of the strategies and adapt their implementation to changing circumstances. Santos wishes to note that while it is a substantial industry player in the Maranoa region, it cannot be solely responsible for the housing outcomes of the Maranoa community. Santos, along with other key industries and government bodies, all have a role to play in the delivery of quality housing outcomes for the local community. This document is Santos’ commitment to demonstrating that it is taking a responsible approach to the issue. 4.6.1.1 Minimise impacts to the availability and affordability of housing in regional

communities Strategy 1 Use to the greatest extent possible, purpose built temporary and permanent

worker accommodation facilities located outside of major communities. Deliverable: Construct field based worker accommodation facilities to house 100% of Santos’

construction and operations workforce. Description: While there remains debate about the pros and cons of workers camps and their

locations, the analysis of the Roma housing market confirmed that the Maranoa Regional communities would not have the infrastructure capacity to host such large

numbers of construction workers. Community consultation also revealed a mixed response in terms of the potential negative social impacts that would result from housing construction workers in the community. The majority of community support was for the camps to be located away from communities to minimise negative anti-social behaviour.

The accommodation facilities will be self-contained modular structures, catering for

one worker per unit. Each unit will include a private toilet, shower and sink. There will be a mess hall featuring kitchen/cafeteria, dining hall and break area. The kitchen will be designed to the relevant standards set out by the Health Act 1911. Central recreational facilities, along with water supply, waste and sewerage treatment facilities will also be provided.

An example of the worker’s camp facilities at Fairview in Roma is provided in Figure

14 below.

Figure 14: Fairview, Roma, Worker Accommodation

Timeframe: The construction of new temporary and permanent worker accommodation

facilities is now underway. Strategy 2 Facilitate the provision of new affordable housing dwellings in Roma Deliverable: Partner with the Urban Land Development Authority (ULDA) and the Maranoa

Regional Council to construct new dwellings in the ULDA precinct in Roma. Description: Following a detailed analysis of the housing market in Roma, and following

discussions with the Maranoa Regional Council, it was agreed that the ULDA development offered the greatest opportunity to bring forth new affordable housing in the Maranoa Region.

Santos will provide the funding on the basis that the housing stock is available only

to those members of the community that meet the relevant criteria for affordable housing support.

Santos will also seek to provide a proportion of the affordable housing to key human service providers in the community such as health workers (nurses), police, education, disability workers etc, as it has been communicated to Santos through the consultation process that staff in these disciplines are hard to attract because of the cost of housing in Roma.

Timeframe: Upon approval of this housing strategy, Santos will commit up to $4M to a

partnership with the ULDA and the Maranoa Regional Council to provide these new dwellings by 2013.

4.6.1.2 Mitigate short term impacts relating to project start-up activities Strategy 3 Assist those members of the community who are most vulnerable to suffer

homelessness as a result of rapid economic growth Deliverable: Contribute funding to local government supported accommodation programs Description: Stakeholder feedback indicated that in past experience, landlords took the

opportunity to raise rents in times of strong economic growth, which resulted in low income households falling out of rental accommodation. It was identified that the Maranoa Regional Council manages a supported accommodation program to support this client base, and that a contribution could be made to this program.

While there are various forms of crisis housing and emergency assistance available in Roma, it is possible that the resources of Councils, charitable organisations and housing providers may be stretched.

Timeframe: On 15 March 2011, Santos committed $400,000 (to be paid immediately) to the

Maranoa Regional Council for its supported accommodation programs. This additional funding has the potential to support an additional 300 clients per year.

Strategy 4 Build the capacity of regional housing support organisations to deliver

expanded programs and assist more clients

Deliverable: Provide funding to local government organisations to provide additional resourcing

for the management of expanded programs aimed at supporting community housing.

Description: Local Government Authorities often find themselves the first point of call for people

in housing distress. It is likely the Maranoa Regional Council will be called upon in a greater capacity to deliver more services to more clients during this period of industrial growth.

Timeframe: On 15 March 2011, Santos committed $100,000 (to be paid immediately) to the

Maranoa Regional Council for an additional Community Housing Officer for a period of 12 months. Santos will consider providing additional funding for a further 12 months subject to a review of the effectiveness of the initial 12 month period.

Strategy 5 Facilitate the availability of rental advisory services in the Maranoa Region Deliverable: Negotiate with state and local governments regarding the opportunity to expand

advisory services to new and existing residents of the Maranoa Region. Description: The Department of Communities has successfully piloted a RentConnect program

aimed at helping Queenslanders find and secure a home to rent in the private market. The RentConnect Advisory Service provides information and practical advice on how to find a suitable property and how the process of applying for a property to rent works. The service also assists people with preparing a rental application and links them to local real estate agents and community services.

The Maranoa Regional Council has a well established program that delivers these services to the Maranoa community.

Timeframe: On 15 March 2011, Santos committed $50,000 to expand this service from a part-time resource to a full time resource.

4.6.1.3 Improve the availability of housing diversity that sustains low income households

within the community Strategy 6 Facilitate the provision of housing diversity targeted at low income households,

particularly key workers, indigenous people and students Deliverable: Partner with a social housing company (to be determined by tender process) and

the Maranoa Regional Council, to construct purpose built dwellings to provide affordable accommodation options for low income workers and students/trainees/apprentices and indigenous people.

Description: A common finding in resource communities is the lack of accommodation in the

community for single people, including females, students, trainees, apprentices; indigenous people and lower paid workers who cannot afford rents; people seeking employment who arrive in the towns without accommodation and builders who are seeking accommodation to work on constructing more houses in the area.

A recent model used in WA involved the construction of a large apartment building complete with coffee shop/convenience store. This type of facility could provide studio or one bedroom accommodation. Alternatively, more dormitory or single room style accommodation could be used. This option could be delivered as part of a mixed use scheme involving project partners such as community housing providers, universities, TAFE Colleges and local authorities.

Timeframe: Upon approval of this housing strategy, Santos will commit $1M to a partnership

with a community housing provider, or university, or TAFE College, or local authority (or a combination thereof) to construct a key worker/single person housing development in Roma. This could include larger accommodation suitable for indigenous people.

4.6.1.4 Release supply constraints which inhibit the private housing market from responding to increases in demand

Strategy 7 Provide certainty to the development industry by establishing Priority Infrastructure Plans (PIPs) and Infrastructure Charging Plans (ICPs) for key growth areas.

Deliverable: Provide the Maranoa Regional Council with funding to undertake a review of the

existing PIPs, and to develop PIPs in new release areas where detailed infrastructure planning has not occurred.

Description: A common theme in regional and remote communities is the incapacity of

infrastructure to cope with future growth. The constraint on existing infrastructure in Roma is an impediment to the release and development of residentially zoned land.

In some instances, Priority Infrastructure Plans (PIPs) have not been developed by the local authority or the PIP is out of date and does not account for the true cost of future infrastructure provision. Councils generally lack the funds and capacity to develop PIPs in all of their communities and will leave it to the private sector to fund any additional infrastructure requirements needed to service their proposed development. In most instances, the cost associated with these infrastructure upgrades is prohibitive.

The output from these studies would be a series of PIPs for all relevant residential catchments which define the total cost and timing for delivery of infrastructure and the proportion of headworks costs that each developer should pay on a per unit basis for infrastructure, usually charged as separate amounts for sewer, water, roads, stormwater and community infrastructure (public parks and land for community facilities).

The benefit of this scheme would be that the development community gains certainty with respect to the cost of headworks payments to Council and is not forced to carry the whole cost of constructing infrastructure which might benefit other landowners/developers in the future. The main benefit is that the early stages of development become feasible due to a reduced requirement for front end investment in infrastructure.

The investment in funding the cost of infrastructure planning for local communities could be made in whole or in partnership with Council and/or with other proponents. MRC has also indicated that the services of a mediator could be useful in some cases to resolve disputes and expedite applications. This could also be funded where the application relates to releasing residential approvals.

Timing Upon approval of this strategy, Santos will commit up to $200,000 over two years

to provide extra capacity for the Maranoa Regional Council to expedite planning and approval processes.

4.6.1.5 Monitor housing market activity to determine the effectiveness of strategies in stabilising the property market and develop adaptive management practices to respond to them.

Strategy 8 Actively monitor the housing market over the life of the GLNG project to ensure

housing strategies are delivering the intended benefits. Deliverable: Work through the Joint Maranoa Regional Community Consultative Committee and

to monitor housing impacts to the Maranoa region and develop collaborative approaches to deal with such impacts.

Description: As part of the Coordinator-General’s requirements, Santos is required to monitor

the housing market and the performance of the Integrated Project Housing Strategy at least every six months and report back to the regional consultative committees.

Timing Santos will establish a monitoring program in collaboration with the members of

the Joint Maranoa Regional Community Consultative Committee (JMRCCC), including the Office of the Coordinator-General.

Table 16: Summary of Integrated Housing Strategies, Maranoa Regional Council

Strategy Deliverable Time Frame Investment Proposal

Partnership Potential

Objective 1: Minimise impacts to the availability and affordability of housing in regional communities

1. Use to the greatest extent possible, purpose built temporary and permanent worker accommodation facilities located outside of major communities.

Construct worker accommodation facilities to house 100% of Santos’ construction and operations workforce.

Under construction

Commercial Local business

2. Facilitate the provision of new affordable housing dwellings in Roma

Partner with the Urban Land Development Authority (ULDA) and the Maranoa Regional Council to construct new dwellings in the ULDA precinct in Roma.

Immediate-2013

Up to $4M ULDA, Council

Objective 2: Mitigate short term impacts relating to project start-up activities

3. Assist those members of the community who are most vulnerable to suffer homelessness as a result of rapid economic growth

Contribute funding to local or state government supported accommodation programs

Immediate $400,000 Council

4. Build the capacity of regional housing support organisations to deliver expanded programs and assist more clients

Provide funding to local government organisations to provide additional resourcing for the management of expanded programs aimed at supporting community housing.

Immediate $100,000 + $100,000

Council

5. Facilitate the availability of rental advisory services in the Maranoa Region

Negotiate with state and local governments regarding the opportunity to establish or expand advisory services to new and existing residents of the Maranoa Region.

Immediate $50,000 Council

Objective 3: Improve the availability of housing diversity that sustains low income households within the community

6. Facilitate the provision of housing diversity targeted at low income households, particularly key workers, students and indigenous people

Partner with a social housing company and the Maranoa Regional Council, to construct purpose built dwellings to provide affordable accommodation options for low income households.

Immediate - 2013

Up to $1M Public/Private

Objective 4: Release supply constraints which inhibit the private housing market from responding to increases in demand

7. Provide certainty to the development industry by establishing Priority Infrastructure Plans (PIPs) and Infrastructure Charging Plans (ICPs) for key growth areas.

Provide the Maranoa Regional Council with funding to undertake a review of the existing PIPs, and to develop PIPs in new release areas where detailed infrastructure planning has not occurred.

Immediate - 2012

$200,000 Council

Objective 5: Monitor housing market activity to determine the effectiveness of strategies in stabilising the property market and develop adaptive management practices to respond to them.

8. Actively monitor the housing market over the life of the GLNG project to ensure housing strategies are delivering the intended benefits.

Work through the Joint Maranoa Regional Community Consultative Committee to monitor housing impacts and performance.

Underway Commercial

JMRCCC Office of the Coordinator-General

TOTAL Up to $5.8M

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5.0 HOUSING STRATEGY - DOWNSTREAM (PIPELINE AND PLANT)

5.1 WORKFORCE AND HOUSING REQUIREMENTS The workforce requirements for the Plant and Pipeline components of the GLNG project are described below. These workforce estimates include updated figures reflecting the progression from the EIS phase to the post FID phase (Implementation). The subsequent appointment of Engineering, Procurement and Construction (EPC) contractors has further refined the workforce estimates required to construct the project. This strategy is based on the current workforce projections which are different to those described in the EIS13. GLNG will address the impacts of workers (including contractors) who choose to settle in Gladstone for both the construction and operational phases of the project. These strategies are detailed below. 5.1.1 GLNG Pipeline Workforce - Current Projections (as at March 2011) Current workforce estimates for the pipeline are set out in Table 17 below. Table 17: Current Workforce Requirements for Pipeline

Workforce Type 2011 2012 2013 2014 2015

Contractors – Pipeline Construction 20 900 100 20 0

GLNG - Pipeline Operations 0 0 5 20 20

GLNG – Pipeline Project Team 3 3 3 2 0

Total 23 903 108 42 20

5.1.2 GLNG Pipeline Worker Housing Strategy 5.1.2.1 Contractors – Pipeline Construction Workers constructing the pipeline will be accommodated in a number of main and satellite self-contained accommodation facilities. These temporary facilities will be provided in close proximity to the workfront. For the Gladstone end of the pipeline construction, the camp workforce will be located up to 60km outside of Gladstone. 5.1.2.2 GLNG – Pipeline Operations All workers involved in the ongoing maintenance and operation of the GLNG gas transmission pipeline will be permanently accommodated in Gladstone. These numbers have been incorporated in the GLNG Operations workforce numbers in section 5.1.3 below. 5.1.2.3 GLNG – Pipeline Project Team The majority of the pipeline project team workers will be based in Brisbane. A small number (3) will be temporarily based in Gladstone. These workers will be housed in serviced accommodation or units.

13 Please refer to Section 3.7.3.25 and 3.8.2.7 of the GLNG EIS

5.1.3 GLNG Plant Workforce (Current Projections as at March 2011) The numbers presented in the tables below are ‘peak’ workforce numbers (not cumulative). The totals provided are ‘peak’ totals for the year. Table 18: Current Workforce Requirements for the GLNG Plant

Workforce Type (peak) 2011 2012 2013 2014 2015

Contractor – Construction living in camp (FIFO) 240 946 1310 157 130

Contractor – Construction living locally 250 520 658 151 127

Contractor – Construction Management/Supervisor 79 137 166 86 68

GLNG – Plant and Port Project Team 14 57 57 57 0

GLNG – Plant and Port Operations 0 8 34 65 150

GLNG - CSU Support 0 0 6 14 0

Total 583 1,668 2,231 530 475

Table 19: Imported construction workforce not residing in the Curtis Island Camp


Contractor – Construction Management/Supervisor 79 137 166 86 68

GLNG – Plant and Port Project Team 14 57 57 57 0

Total 93 194 223 143 68

Operations – Plant, Port and Pipeline Table 20: Plant, Port and Pipeline Operations Breakup


GLNG – Plant, Port and Pipeline Operations (FIFO) 0 0 0 0 30

GLNG – Plant, Port and Pipeline Operations (Local) 0 0 0 15 30

GLNG – Plant, Port and Pipeline Operations (Settlers) 0 8 34 50 90

Total 0 8 34 65 150

Table 21: Plant, Port and Pipeline New Settlers Requiring Housing Workforce Type (peak) 2011 2012 2013 2014 2015

GLNG – Plant, Port and Pipeline Operations (Settlers) 0 8 34 50 90

Total New Houses (50%) 0 4 17 25 45

5.1.4 GLNG Plant Worker Housing Strategy 5.1.4.1 Contractors – Construction FIFO and Local Contractors involved in the construction of the GLNG Plant and Port facilities will be accommodated in a temporary worker accommodation facility on Curtis Island. GLNG has based its construction workforce projections on a 75% imported (FIFO) to 25% local worker ratio. In the event that the local workforce availability is lower than anticipated, GLNG has sought to increase the camp capacity from 1500 (as approved in the EIS) to 2208 (recently approved by DIP on 14 March 2011). This allows for an additional 10% contingency on the local workforce projections (a reduction from 25%-15%). Should the local workforce availability be even less than 15%, GLNG will make a further request to DIP to increase the camp size accordingly, in order to minimise any housing impacts to the local community.

Prior to the camp being available on Curtis Island (February 2012), the construction workforce will be accommodated in the contractor’s pre-existing inventory of leased properties. 5.1.4.2 Contractors – Construction Management and Supervisors GLNG’s construction contractor (Bechtel) has determined that temporary construction Management and Supervisors will be accommodated on the mainland and commute to site each day by ferry. Bechtel is conscious of not destabilising the housing market in Gladstone and has implemented the following strategies to minimise impacts to the community. Bechtel will use its current inventory of leased accommodation of approximately 250 beds which

consist of houses and pre-booked motel rooms to accommodate workers for its projects in Gladstone, including the GLNG project.

Bechtel will be sensitive to the housing market and strategically acquire further properties over time (24 months) and by doing so endeavour not to deplete the market of its stock at any one time.

Bechtel has committed to exploring new housing development opportunities as a way of minimising impacts to the Gladstone housing market.

5.1.4.3 GLNG Plant and Port Project Team The GLNG Plant and Port Project Team workers will be temporarily based in Gladstone for a period of 2-3 years. A small number (14) of these workers will initially be housed in a combination of serviced unit accommodation and three and four bedroom houses, while GLNG facilitates the construction of new dwellings to cater for the remaining temporary workers (43) by June 2012. It is GLNG’s strategy to bring forward the construction of its Operational workforce housing (as described in 5.1.4.4 below) to mitigate its temporary project workforce impacts, thereby reducing the need to lease any further dwellings out of the Gladstone market. Of the initial number to be housed immediately, GLNG will be sensitive to the market and acquire these leases over time rather than in one block. GLNG will also not lease any stock that would be considered to be ‘affordable housing’ as defined in section 5.3.1 of this document. GLNG recognises that the initial leasing of housing stock (albeit not affordable housing) may have a flow on effect on the rental market. To this end, and ahead of GLNG leasing any properties, a specific mitigation strategy outlined in section 5.6 has been implemented. 5.1.4.4 GLNG Plant, Port and Pipeline Operations GLNG anticipates that 20% (30) of its total Operational workforce (150) has the potential to be sourced locally. A further 20% (30) is anticipated to be FIFO. The remaining 60% (90), will need to be settled (i.e. permanently located) in the Gladstone community. In accordance with the Coordinator-General’s conditions (condition 10), GLNG will provide, at a minimum, 45 new dwellings (50% of 90) by 2015. However, GLNG may construct dwellings beyond this minimum and potentially up to 90 dwellings or the final number of permanent staff settled in Gladstone by 2015, subject to ongoing monitoring of the housing market.

As discussed in 5.1.4.3 above, GLNG will bring forward the construction of these dwellings to mitigate the impacts of its short term temporary workforce. 5.1.4.5 Employee assistance

GLNG has employed a Housing Support Officer based in Gladstone. This officer will assist with advising workers and families wishing to settle in Gladstone of their accommodation options under this Strategy. These services include: Placing workers into GLNG’s accommodation pool Orientation of the Gladstone community (schools/hospitals/transport hubs/health services/sport

and recreation activities etc) Assimilation activities for workers of a Culturally and Linguistically Diverse (CALD) background. Contractor Workforce – Support Industries GLNG acknowledges that population growth will occur as support industries locate to Gladstone to compete for goods and services required by the project. It is impossible to accurately predict the number of businesses that may relocate to Gladstone for this purpose. To this end, Strategies 4-11 in section 5.6 have been developed to facilitate sustainable growth in the population. 5.2 GLADSTONE HOUSING MARKET ANALYSIS This section sets out an analysis of available data on the supply of land and housing in the Gladstone region. The statistics used have been the latest available at the time of preparing this report. This assessment is then compared to the demand for housing generated by the GLNG project, based on workforce and housing assumptions. The analysis strongly indicates that there is no underlying land supply constraint in Gladstone. However, the global financial crisis appears to have slowed the conversion of available land into lots and housing in recent years with lot creation, sales and housing construction slowing considerably since 2008 (despite underlying demand). The most recent data suggests there are signs that the market is beginning to recover from this recent downturn. House prices have steadily increased in the Gladstone region and affordability has reduced at a commensurate level. Rental vacancy rates have been variable and have reduced considerably in recent months to 1.4 per cent at December 2010. Rental costs have also risen, with rental stress increasing as a result. Although total workforce numbers will peak in 2013, there will be a rapid increase in demand for housing over the next two years. The ability of the local housing market to respond to these demands is discussed below.

5.2.1 Population Projections 5.2.1.1 Population Projections Based on the most recent population projections the GRC population is expected to increase to between 90,060 (low projection) and 114,525 (high projection) people by the year 2031. The table below provides the low, medium and high series population projections at five year intervals up to 2031. In this instance, medium projections represent a 2.4% per annum growth rate, resulting in an increase of 44,100 people, or 81.8%. High series projections for the Gladstone region indicate a 3.1% growth rate to 2031. High series growth would therefore result in a doubling of the population.

Table 22: Population Projections for the Gladstone Regional Council Area

Series ERP Project Resident Population

2006 no. 2011 no. 2016 no. 2021 no. 2026 no. 2031 no.

Low 53,941 14

61,971 68,472 75,099 82,478 90,060

Med 53,941 63,120 70,927 79,102 88,265 98,041

High 53,941 65,029 75,427 86,965 100,137 114,525

Source: OESR 2010c Figure 15 below illustrates the low, medium and high series projections.

Figure 15: Population Projections for Gladstone Regional Council

Source: OESR 2010c

The above projections were made prior to decisions about a number of major projects, which are now proceeding. Consequently, OESR, Council and others have recognised the need for revised projections. OESR advises that work is currently underway but was not available at the time of writing. It is possible that revised figures may be higher. The estimated resident population in 2009 was 59,644 (preliminary estimate), which represents an increase of 1,864 people since 2008. These figures suggest that actual population growth is tracking slightly above the medium series population growth estimates shown above.

14

The ERP population for Gladstone from the Department of Infrastructure and Planning does not correspond with the data from ID Profiles and therefore is not directly comparable.

In the context of the Gladstone region, industry and economic changes over the future period could have a significant impact on future population projections and their distribution throughout the region. 5.2.1.2 Household Projections Table 23: Household Type Projections for GRC (based on medium series)

2006 2011 2016 2021 2026 2031

Total Household Projections 20,147 24,122 27,632 31,308 35,336 39,683

Cumulative Increase in Total Households - 3,975 7,485 11,161 15,189 19,536

Source: OESR 2010e The data in the above table shows that the projected total increase in households for the GRC area 2006 to 2031 is 19,536 households. This represents an average annual increase in households of 782 households per year (19,536 households over the 25 years to 2031). 5.2.1.3 Household Type Projections The projected change in the composition of household type in the Gladstone Regional Council area and Queensland between 2006-2026 is illustrated in Figure 16.The figure shows that over the 20 year period in Gladstone, it is anticipated that the highest rate of growth in household type will occur in lone person households (108% increase), while the lowest increase in households is expected to occur among couple families with children.

Figure 16: Projected Percentage Change in Household Type 2006-2026

Source: DOCs 2009 5.2.1.4 Age Profile Forecast Consistent with national trends, population forecasts by age group suggest that the population of the Gladstone Regional Council area is expected to age over the next 25 years (2006-2031) from a median age at 2006 of 35 years to a median age of 40 years in 2031 (as indicated in Table ). Some further observations about the expected change in age distribution to 2031 are: the proportion of young people between the ages of 0-14 will decrease by approximately 4

percentage points but will increase in absolute numbers by 6,546 people;

young adults between the ages of 15-24 are also expected to increase in absolute numbers but will decrease as a proportion of the total population;

the number of adults between 25-64 years will increase by over 22,000 people; and the proportion of elderly people over 65 years will almost double from 8.24% to 16.21% of the

population, representing an increase of 11,448 people in this age bracket. Table 24: Population Forecasts for Gladstone Regional Council by Age Group

Age Group 2006 2031

Number Proportion Number Proportion

0-14 12,831 23.79 19,377 19.76

15-24 7,082 13.13 11,023 11.24

25-44 15,972 29.61 26,131 26.65

45-64 13,610 25.23 25,613 26.12

65+ 4,446 8.24 15,894 16.21

Total 53,941 15

100.00 98,041 100.00

Median Age 35 n/a 40 n/a

Source: OESR 2010c 5.2.2 Residential Land Supply and Activity 5.2.2.1 Broadhectare Data Broadhectare land supply and demand analysis was undertaken for the former LGAs that comprise the Gladstone Regional Council area in 2007 by the Planning Information and Forecasting Unit (PIFU). This analysis is based on 2006 data (when the Gladstone City planning scheme had just been adopted) and is currently being updated. The updated data was not available at the time of writing. Using the broadhectare data currently available, the projected residential land supply and dwelling demand can be used to estimate the number of years of land supply. The method used in the PIFU analysis is a comparison of average annual household projections with the maximum dwelling yield of residential land designated in the local government planning scheme. In summary, under the high16 series household growth scenario, the following conclusions are made in relation to the amount of residential land supply from the year 2006:

15 years of residential land supply (689ha) is potentially available in the former Gladstone City (up to the year 2021);

26 years of residential land supply (2,841ha)is potentially available in the former Calliope Shire (up to the year 2032); and

13 years of residential land supply (226ha) is potentially available in the former Miriam Vale Shire (up to the year 2019).

The graphs below show the growth in demand for dwellings against available land stock for each of the former LGAs (refer Figure 17, Figure 18 and Figure 19).

16

The high series is used in this instance given the age of the projections and the observation noted previously that estimate resident population appears to be tracking above the medium series projections.

Figure 17: Former Gladstone City LGA Projected Supply and Demand of Dwelling Stock

Source: PIFU 2008

Figure 18: Former Calliope Shire LGA Projected Supply and Demand of Dwelling Stock

Source: PIFU 2008

Projected Residential Land Supply (number of years from 2008): Low series scenario – 22 years Medium series scenario – 19 years High series scenario – 15 years


Figure 19: Former Miriam Vales Shire LGA Projected Supply and Demand of Dwelling Stock

Source: PIFU 2008 There are a number of limitations in the above analysis that need to be considered including: broadhectare land does not include the availability of residential land less than 2500m2 in area; the dwelling capacity assumes that the maximum dwelling yield designated in the planning

scheme will be achievable on every lot of residential zoned land; the number of years of land supply is based on the average annual population projections and

does not include an assessment of the likely timing of dwelling demand; and the dwelling yield and residential land supply is calculated on current planning scheme zoning

and allowable density, which although relatively recent, is currently under review by Gladstone Regional Council.

The Residential Land and Dwelling Activity Profile for the Gladstone Regional Council area summarises the stock available within the amalgamated Gladstone Regional Council area, rather than providing a separate analysis of the data for the three former council areas. This indicates that approximately 2,543 hectares of land is potentially available for residential development (OESR 2010d). OESR estimates this area could be expected to yield some 10,000 new dwellings, after taking into account the planning scheme intent, existing approvals, and residential densities (OESR 2010d). The amount of broadhectare land potentially available for residential development compares with total projected household growth (of over 19,500 households by 2031) and approximately equates to over 10 years supply of broadhectare residential land.


5.2.2.2 Residential Lot Approvals Around 1,221 residential lots were approved in the Gladstone Regional Council area in the year ending September 2010 (see Figure 20). This was slightly more than the number approved in the previous year (1,174 residential lots approved in the year to September 2009) (OESR 2010d), although the number of residential lots approved has increased and decreased significantly from year to year since 2002. The closing stock, a measure of the total number of residential lots with approval yet to be developed, has steadily increased between 2002 and 2010 (see Figure 20). In the year to September 2010, there were 3,994 residential lots approved and ready for development in the Gladstone Regional Council area. This figure represents approximately 4 years supply of residential land with existing approvals, based on a household growth of 782 households per year. This data is supported by information obtained through consultation with local developers, which has identified that as at 7 March 2011, there were approximately 6300 residential lots in the Gladstone/Boyne Island/Tannum and Calliope area with development approval yet to be developed.

Year to Opening Lots Operational works Lots Lots Closing

September stock approved approvals certified lapsed stock

(a) (b) (c) (d) ( a + b - c - d )

2002 394 798 na 251 73 868

2003 868 1,176 na 515 0 1,529

2004 1,529 732 na 476 56 1,729

2005 1,729 438 na 376 70 1,721

2006 1,721 201 na 584 51 1,287

2007 1,287 756 na 355 34 1,654

2008 1,654 1,090 786 454 35 2,255

2009 2,255 1,174 230 310 78 3,041

2010 3,041 1,221 361 250 18 3,994

Dec qtr 2009 3,041 730 56 146 4 3,621

Mar qtr 2010 3,621 32 166 4 1 3,648

Jun qtr 2010 3,648 448 87 45 1 4,050

Sep qtr 2010 4,050 11 52 55 12 3,994

Figure 20: Uncompleted residential lots time series, Gladstone Regional Council Source: OESR 2011

5.2.2.3 Residential Lot Consumption Lot consumption in the year to September 2009 (i.e. where building activity has commenced) was lower than in any of the previous years between 2002-2009. The number of lots consumed in 2009 in the Gladstone Regional Council area was 244, which was substantially lower than in previous years (refer Table ), but similar to the volume of vacant land sales in 2009 (200 sales). However, a significant increase in lot consumption to September 2010 is evident with 368 lots consumed in this period.

Table 25: Conventional Lot Consumption, Gladstone Regional Council Year to

September Conventional Lot

Consumption

2002 430

2003 564

2004 395

2005 362

2006 444

2007 601

2008 570

2009 244

2010 368

Note: Lot consumption is derived from detached housing approvals and may occur on lots registered in previous quarters. Source: OESR 2011 5.2.3 Housing Supply and Dwelling Activity 5.2.3.1 Existing Housing Stock The existing dwelling stock in the Gladstone LGA is characterised as follows: the proportion of separate houses in the Gladstone LGA (87.0%) and Central Queensland (87.7%) are

significantly higher than those for Queensland (79.5%); this proportion has increased since 2001, which is different to the trend across Queensland; the proportion of flats in the Gladstone LGA (7.4%) and Central Queensland (6.7%) is lower than

Queensland (11.2%); and the Gladstone LGA and Central Queensland region have experienced increases in the proportions of

caravan, cabin and houseboat dwelling types since 2001 (2.4% and 2.1% in 2006 respectively), while proportions in Queensland have decreased to 1.2%.

Gladstone Dwelling Type Profile % of total

dwelling types

87.0%

2.1%

7.4%2.4% 1.0%

Separate house

Semi-detached, townhouse etc

Flats

Caravan, cabin, houseboat

Other

Figure 21: Housing Type Profile

Source: DOCs 2010a

In respect of the housing tenure in the Gladstone LGA, the following characteristics are noted, drawing on the information provided in Figure 22 from the DOCs housing analysis (DOCs 2010a). the Gladstone LGA had lower levels of full home ownership (28.6%) and higher levels of homes

being purchased (36.8%) compared with Central Queensland (31.5% and 30.6% respectively) and Queensland (30.4% and 31.4% respectively);

between 2001 and 2006, the proportions of full home ownership declined in all of the SLAs in Gladstone. This decline corresponds with increases in the proportions of houses being purchased in these SLAs; and

other data from the housing analysis suggests the Gladstone LGA has a higher rate of homelessness than Queensland. The rate of people who are living in improvised homes, tents or are ‘sleep outs’ in the Gladstone LGA was 17 per 10, 000 people, higher than the Queensland rate (13 per 10,000 people) (DOCs 2010a).

Social housing and DOC’s activities in Gladstone are discussed further in section 5.4.

Figure 22: Housing Tenure Profile 2001 -2006

Source: DOCs 2010a In terms of dwelling size, Figure 23 shows the proportion of dwelling types by dwelling size for the GRC area. This figure indicates that 3 bedroom dwellings are predominantly separate houses and 1-2 bedroom dwellings predominantly consist of flats. Other data provided in the DOCs housing analysis shows that 18.8% of all dwellings were 0 -2 bedrooms and 81.2% were 3 or more bedrooms in the Gladstone LGA in 2006. These characteristics were generally consistent with those for Queensland, although the Gladstone LGA had a lower proportion of 0-2 bedroom dwellings than Queensland (22.3%).

0%

5%

10%

15%

20%

25%

30%

35%

40%

2001 2006 2001 2006 2001 2006

Gladstone (R) Central Queensland Queensland

Fully owned Being purchased Other tenure, unstated

Rented real estate agent Rented other person Rented state housing

Rented community housing Rented employer, parks, unstated

Housing Tenure Profile 2001 & 2006

2006 Dwelling Type by Bedroom Size Gladstone Region

0.4

9.3

90.3

1.7

60.9

37.5

0

85.9

14.1

17.4

67.3

15.4

0% 20% 40% 60% 80% 100%

0 Beds

1-2 Beds

3+ Beds

Separate House

Semi Detached etc

Flat, Unit or Apartment

Other Dwelling

Figure 23: Dwelling Type by Number of Bedrooms

Source: DOCs 2010a 5.2.3.2 Dwelling Approvals Dwelling approvals in the Gladstone region decreased significantly in the year to September 2009 compared to previous years, as demonstrated in Table 26. Just 264 dwellings were approved in 2009, compared to 664 approvals in 2008, which could be attributed to the global financial crisis at around this time. This trend does not appear to be continuing with 507 dwellings approved in the year to September 2010, signally a trend toward an increasing number of approvals (refer Table 26). Table 26: Dwelling Approvals by Type, Gladstone Regional Council

Period Number of Dwellings

Houses Units Townhouses Total

2002 467 10 34 511

2003 575 34 135 744

2004 391 71 46 508

2005 388 103 18 509

2006 454 44 71 569

2007 656 51 34 741

2008 551 24 89 664

2009 220 0 44 264

2010 432 18 57 507

Dec qtr 2009 69 0 11 80

Mar qtr 2010 84 0 25 109

Jun qtr 2010 130 18 9 157

Sep qtr 2010 149 0 12 161

Source: OESR 2011 The data shows that the average number of dwelling approvals over the past 8 years (2002 -2010) is 627 approvals. This compares to the projected dwelling demand of up to 782 dwellings per year (based on household projection figures). 5.2.4 Summary and Implications

Current growth projections suggest an additional 19,536 households by 2031 (or 782 per year). There is a significant raw land supply, with the current stock of residential land estimated to be

equivalent to 10 years supply, based on medium series household type projections. For the year to September 2010, there were 3,994 residential lots approved and ready for

development (i.e. closing stock). The rate of dwelling approvals and residential lot take up dropped significantly throughout 2008

and 2009 and was less than the 782 dwellings per year required to match population projections. However, the most recent data suggests that the market is beginning to recover from the GFC, with increasing numbers of dwelling approvals and lots sales recorded for 2010.

5.3 GLADSTONE HOUSING AFFORDABILITY ANALYSIS The Coordinator-General has further requested that GLNG mitigate the impact of its accommodation strategy on Affordable Housing. Specifically, it is required that GLNG provides new Affordable Housing at a rate of 1 house/unit for every (11) workers settling in Gladstone. The analysis provided in section 5.3 below demonstrates that Affordable Housing is the segment most at risk in the Gladstone community as a result of industrial growth generally. GLNG is committed to mitigating potential impacts to Affordable Housing. Details of GLNG’s proposed approaches to address this issue are provided in section 5.4. 5.3.1 Defining Housing Affordability in Gladstone The ULDA has an Affordable Housing Strategy, which outlines how the ULDA will facilitate the provision of affordable housing. Affordable housing is defined by the ULDA as the ability of sections within our community to be able to afford the cost of housing (ULDA, 2009). This includes private rental housing, owner occupied housing and social housing. Social housing is housing provided by government, and is discussed separately in section 4.4. The ULDA uses two indicators to determine whether its housing is affordable, which are: Housing is for low to moderate household income levels (in recognition that social housing

mechanisms are anticipated to cater for the lowest earning residents) which are described as household incomes of between $40,000 and $80,000; and

Households are spending no more than 30% of gross household income on rent and 35% of gross household income on home ownership.

This relates to both the affordable purchase (mortgage payments) and affordable rental of properties. The affordable rental and home purchase levels in Gladstone are as follows: Affordable Rental $230-$460 per week Affordable Home Purchase $1166 - $2330 per month (loan between $180,000 and $360,000) Comparison with Current Levels

Gladstone

Affordable weekly rental $230-$460 per week

Median weekly rent 3 bedroom house17 $305

Median weekly rent 2 bedroom unit $230

Affordable housing purchase18 $180,000-$360,000

Median sales price house19 Gladstone (LGA) $370,000

Boyne Island (a) $402,500

Calliope (a) (b) $368,250

Kin Kora (a) $360,000

South Gladstone $340,000

West Gladstone $335,000

Median sales price units/townhouses20 $337,500

The comparison shows that at the present time only a 2 bedroom unit falls below the lowest affordability criterion in Gladstone. The highest level (at an income of $80,000 per annum) should be well within the affordable rental levels in Gladstone. House purchase is only below the affordable level in older central areas (South Gladstone/West Gladstone). Outer areas and newer suburbs would not be affordable. Units and townhouses are affordable only to the highest income earners in the range. 5.3.2 Housing Market 5.3.2.1 Residential Lot Sales and Median Sale Price There has been quite a significant reduction in the number of sales of new lots in the Gladstone area, particularly in the year to September in 2008 and 2009, compared to previous years (see Figure 24 and Figure 25). Sales of vacant lots decreased substantially from a high of 720 sales in the year to September 2007, to just 200 sales in the year to September 2009. The most recent data, however, suggests there has been a recent upturn in the number of new lot sales (466 sales in the year to September 2010). The number of house and land packages sold during this period also decreased. There has been a steady decline in the number of house and land packages sold since 2003 when 53 packages were sold, to 30 and 33 sales in the year to September 2009 and 2010 respectively. A key factor driving this downturn in lot sales is considered to be the global financial crisis (GFC) that was a significant factor affecting housing markets at that time. Conversely, the median sale price of vacant land has steadily increased, while house and land packages have fluctuated somewhat between 2001 and 2010 (increasing more recently in the year to September 2010). A comparison of lot sales and median sale price shows that despite the reduction in the volume of sales in recent years, sale prices have continued to increase in over the same period.

17

Figures have been used for Gladstone/ Boyne Island/ Clinton/ Kin Kora etc. LGA average is $300 18

Excludes consideration of deposits/fees etc – loan only 19

12 months to end of June 2010 20

LGA used due to small numbers

Table 27: Median Sales Data – Vacant Urban Land, Gladstone Regional Council Area Number of

Sales December

Quarter 2010

June Quarter

2010

Change over

Quarter

12 Months to end of

December 2010

Change over 1 year

Change over 5 Years

Gladstone (LGA)

91

$184,000

3.2%

$180,000

0%

67.8%

Source: REIQ 2011 According to a report prepared by Colliers International (2010a) the number of vacant allotments on the market in June 2010 in Gladstone was around 200, which is less than the annual number of land sales (i.e. 466 lots in the year to September 2010) and significantly less than the number of lots approved over a similar period (1221 lots approved in the year to September 2010).

Number of new lot sales (140 - 2,500 m²) Median sale price (140 - 2,500 m²)

Year to Vacant House & land Total Vacant House & land

September land package ¹ sales land package ¹

2002 710 31 741 $55,000 $192,500

2003 796 53 849 $73,000 $221,100

2004 534 28 562 $89,700 $215,700

2005 418 29 447 $97,425 $208,000

2006 612 41 653 $115,000 $230,000

2007 720 43 763 $135,000 $340,000

2008 308 25 333 $180,000 $393,000

2009 200 30 230 $175,000 $380,000

2010 466 33 499 $180,000 $399,000

Dec qtr 2009 130 7 137 $180,000 na

Mar qtr 2010 103 7 110 $175,000 na

Jun qtr 2010 137 7 144 $181,000 na

Sep qtr 2010 96 12 108 $185,000 $422,000

Figure 24: Sales of New Lots, Gladstone Regional Council Source: OESR 2011

Figure 25: Vacant Land Sales, Gladstone Regional Council

Source: OESR 2011

0

50

100

150

200

250

300

350

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Num

ber o

f sale

s

Sale

pri

ce

Quarter

Number of sales Lowest quartile Median Highest quartile

5.3.2.2 Dwelling Sales and Median Sale Price

The number of dwelling sales increased slightly in the Gladstone area in the year to September 2009 compared with the previous year, however, the numbers of sales in 2008, 2009 and 2010 periods were below the figures for 2002 - 2007 (see Figure 26). In the year to September 2007, 2,064 dwellings were sold, whereas in the year to September 2008 only 1,217 dwellings were sold. The median sale price of dwellings in the Gladstone region also decreased in the year to September 2009. Over this time, the median sale price of detached houses dropped slightly from $382,000 to $365,000, while the median sale price of units and townhouses also fell from $336,500 to $313,500. Despite the decrease in median sale prices over 2008 and 2009, the median sale price of both houses and units / townhouses in the year to September 2010 has increased. Overall, sale prices are at their highest over the 8 year period from 2002, with the exception of the 2008 figures.

Number of dwelling sales Median sale price

Year to Detached Units & Total Detached Units &

September houses townhouses dwellings houses townhouses

2002 1,699 297 1,996 $134,000 $100,000

2003 1,588 434 2,022 $174,325 $160,000

2004 1,441 389 1,830 $205,000 $167,500

2005 1,370 252 1,622 $230,000 $174,500

2006 1,594 312 1,906 $257,250 $195,000

2007 1,693 371 2,064 $338,000 $277,000

2008 993 224 1,217 $382,000 $336,500

2009 993 196 1,189 $365,000 $313,500

2010 1,038 188 1,226 $380,000 $317,500

Dec qtr 2009 273 54 327 $362,500 $373,000

Mar qtr 2010 237 48 285 $382,500 $299,500

Jun qtr 2010 283 48 331 $380,000 $288,000

Sep qtr 2010 245 38 283 $390,000 $248,500

Figure 26: Dwelling Sales, Gladstone Regional Council Source: OEAR 2011

REIQ data (2011) suggests that the median sale price of houses, town houses and units increased during the December quarter 2010 and the year to December 2010 (see Table 28). Across the Gladstone Regional Council area, the median sale price of houses increased by 7.2% in the year to December 2010, while the sale price of town houses and units increased by 13.3%.

Table 28: Median Sales Data - Houses, Gladstone Regional Council Area Number of

Sales December

Quarter 2010

December Quarter

2010

Change over

Quarter

12 Months to end of

December 2010

Change over 1 year

Change over 5 Years

Houses

Gladstone (LGA) 221 $395,000 0.8% $385,000 7.2% 67.4%

Boyne Island 24 $440,000 4.0% $430,000 8.3% 68.6%

Calliope 20 $408,000 2.0% $399,000 8.1% 95.8%

Kin Kora 11 $390,000 0.6% $385,000 7.2% 80.3%

South Gladstone 18 $354,000 -0.3% $355,000 7.8% 73.2%

West Gladstone 16 $345,000 1.9% $350,000 9.4% 79.5%

Units and Town Houses

Gladstone (LGA) 49 $345,000 40.2% $340,000 13.3% 106.1%

Source: REIQ 2011 Of the 221 houses sold in the December quarter 2010 in the Gladstone LGA, 86.4 per cent were sold for less than $500,000 and 27.6 per cent were sold for less than $350,000 (REIQ 2011). Similarly for town houses and units, 91.8 per cent were sold for less than $500,000 and 53 per cent were sold for less than $350,000 (REIQ 2011). The combined total number of sales for the December quarter 2010 (270 sales including houses, town houses and units) would be sufficient to accommodate the anticipated annual growth in the number of households (i.e. 782 additional households per year).

5.3.2.3 At Risk Purchasers The proportion of households in the lower 50% of the income distribution paying over 40% of household income on mortgages is considered to be ‘at risk purchasers’. DOC uses this measure as the best indicator of housing need. The figures below show that the proportion of at risk purchasers in the Gladstone region on low incomes is lower than in Queensland but slightly higher than Central Queensland. However, it is acknowledged that these figures are based on 2006 census data and therefore do not account for purchasers who entered the market since the substantial increase in house prices. Of particular note is the very high proportion (55%) of low income purchasers in Miriam Vale, however, only 25% of these are considered to be at risk. At Risk Purchasers

13%

8%

8%

8%

10%

7%

16%

30%

27%

23%

20%

29%

20%

55%

30%

21%

23%

27%

24%

21%

25%

0% 10% 20% 30% 40% 50% 60%

Queensland

Central Queensland

Gladstone

Calliope Pt A

Calliope Pt B

Gladstone SLA

Miriam Vale

% of Households At Risk

% paying 40%+ % Low Income purchaser % Low Income paying 40%+

Figure 27: At Risk Purchasers

Source: DOCs 2010a 5.3.3 Rental Market 5.3.3.1 Vacancy Rate

The vacancy rate of all housing and apartments in December 2010 was 1.4 per cent, which was down from 4.1 per cent in March 2010 and 9.5 per cent in September 2009 (REIQ cited in Colliers International 2010a; REIQ 2011). The vacancy rate has therefore decreased significantly over this period (see Table 29).

Table 29: Vacancy Rates in Gladstone Regional Council area Period Vacancy Rate

September 2008 2.1%

March 2009 6.1%

September 2009 9.5%

March 2010 4.1%

December 2010 1.4%

Source: REIQ quoted in Colliers International 2010a; REIQ 2011

As demonstrated in the table above, the vacancy rate has changed significantly in Gladstone in recent years (2008-2010). At the time of the GLNG Accommodation Study in 2008, the rental vacancy rate was less than one per cent indicating a very tight rental market (GLNG 2009 - EIS) (GLNG Accommodation Study). This seems to have changed substantially during 2008-09, possibly as a result of the global financial crisis and changing industry demands for housing. Vacancy rates have been reported to have again dropped significantly in recent months. 5.3.3.2 Availability of Rental Housing

At June 2010, there were approximately 125 houses and 76 apartments available for rent in Gladstone (Colliers International 2010a). This compares to the number of properties available to rent on the realestate.com website, which shows that the following number of rental properties were available: 12th November 2010 – 122 properties available (86 of which were houses) 17th March 2011 – 152 properties available (102 of which were houses) This indicates that despite the tight rental market reported by REIQ, there has been a comparatively high number of properties become available for rent according to the realestate.com website. 5.3.3.3 Median Weekly Rent

The median weekly rent for a three bedroom house in the Gladstone Regional Council area was $320 in the December quarter of 2010 (see Table 30). During this time, 212 new bonds were received. For two bedroom flats and units, the median rent was $240 in the Gladstone area and 139 new bonds were received (REIQ 2011) (Table 31). These figures indicate there has been a slight increase in median rent prices for houses and 2 bedroom flats and units and a significant increase in rental prices for 3 bedroom town houses. The number of new rental bonds decreased across all categories in 2010, which may be indicative of the low vacancy rates and tightening of housing supply.

Table 30: Median Weekly Rents – 3 Bedroom Houses

Area December Quarter 2010 December Quarter 2009

Rent New Bonds Rent New Bonds

Gladstone (LGA) $320 212 $290 229

Agnes Water/ Miriam Vale $270 19 $250 12

Gladstone/ Boyne Island/ Clinton/ Kin Kora etc $330 185 $290 210

Source: REIQ 2011

Table31: Median Weekly Rents – 2 Bedroom Flats/Units



Gladstone (LGA) $240 139 $220 146


Source: REIQ 2011

Table32: Median Weekly Rents – 3 Bedroom Town Houses



Gladstone (LGA) $430 23 $300 37


Source: REIQ 2011 5.3.3.4 Median Weekly Rent by Dwelling Type / Size The tables below show a comparison of median rental prices for houses, flats / units, and town houses for different sized dwellings (refer Table 33 to Table 35). The data is compiled by the Residential Tenancies Authority for each three month period and relates to the whole Gladstone Regional Council area. As expected, the rental price for larger dwellings is higher than for smaller dwellings and houses are generally more expensive than flats/units and town houses with the same number of bedrooms (the only exception being 3 bedroom town houses which are more expensive than 3 bedroom houses). The data shows that there were relatively few new bonds for smaller flats/units (1 bedroom), smaller houses (2 bedrooms) and all town houses compared to other dwelling types, which could indicate either an oversupply or an undersupply for this type of housing. In respect of the number of new bonds, a decrease was recorded for all dwelling types and sizes in the December 2010 quarter (compared with the December 2009 quarter), with the exception of 2 bedroom houses and town houses. Overall, the median weekly rents decreased slightly in the December 2009 quarter and then increased slightly in the December 2010 quarter. No significant increases in median rental prices are notable, with the exception of 3 bedroom flats and town houses

Table33: Median Weekly Rents for New Bonds - Houses, Gladstone

Type of Property December Qtr 08 December Qtr 09 December Qtr 10

Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

2 Bedroom House 235 43 250 29 270 30

3 Bedroom House 300 220 290 220 320 212

4 Bedroom House 380 180 350 194 400 186

Source: Residential Tenancies Authority 2011 Table 34: Median Weekly Rents for New Bonds – Flats/Units, Gladstone


Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

1 Bedroom Flat/Unit 190 17 170 14 195 6



Source: Residential Tenancies Authority 2011

Table 35: Median Weekly Rents for New Bonds – Town Houses, Gladstone


Rent ($) New Bonds

Rent ($) New Bonds

Rent ($) New Bonds

2 Bedroom Town House n.a. 3 220 11 250 14

3 Bedroom Town House n.a. 3 300 37 430 23

Source: Residential Tenancies Authority 2011 5.3.3.5 Unaffordable Rental Accommodation

The proportion of households in Gladstone in unaffordable rental accommodation21 was 31% in 2008, as shown in Figure 28. This proportion is higher than the corresponding figure for Central Queensland (29%) but less than the figure for Queensland (38%).

Low Income Households in Unaffordable

Private Rental in 2007

38%

29%

31%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Queensland

Central Queensland

2008

Gladstone (R) 2008

% of very low and low income Households paying >30% on Housing Costs

Figure 28: Proportion of Low Income Households in Unaffordable Rental Accommodation Source: DOCs 2010a

The stock of affordable rental accommodation by bedroom numbers in the Gladstone region is shown in Figure 29. The figures indicate that there is a higher proportion of 1-2 bedroom affordable housing stock but a lower proportion of 2-4 bedroom affordable rental stock.

21

Measured as the proportion of very low and low income households paying more than 30% of household income on housing costs.

Affordable Rental Stock by Bedroom Numbers

in 2009

34%

66%

48%

31%

67%

48%

64%

25%

44%

30%

26%

92%

29%

38%

18%

25%

17%

11%

83%

16%

29%

16%

19%

12%

6%

88%

10%

44%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Queensland

Central Queensland

Gladstone (R)

Calliope Pt A

Calliope Pt B

Gladstone SLA

Miriam Vale

% Affordable

1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms

Figure 29: Affordable Rental Stock by Bedroom Numbers 2009

Source: DOCs 2010a 5.3.4 Summary and Implications While the sale of vacant lots has decreased substantially from a high in 2007, the median sale

price has remained strong. The proportion of at risk purchasers is higher than Central Queensland but lower than

Queensland. Rental vacancy rates have been highly variable, deceasing to 1.4 per cent in September 2010

from 4.1 per cent in March 2010 (after a high of 9.5% in 2008). Median rental price has steadily increased with unaffordable rental accommodation (rental

stress) increasing. 5.4 SOCIAL AND COMMUNITY HOUSING ANALYSIS IN GLADSTONE The Coordinator-General has also requested that GLNG provides new community housing at a rate of 1 house/unit for every 20 imported workers settling in Gladstone. Social and community housing provide housing to the lowest income earners. Public housing is that managed by the former Queensland Department of Housing, now the Department of Communities (Housing and Homelessness Services), including Aboriginal and Torres Strait Islander Housing. Community housing is housing that is publicly owned and managed by funded community housing sector or Local Government housing providers. Community housing can deliver either long term community housing or time-limited transitional housing. The Department of Communities (Housing and Homelessness Services) works with community housing providers within one social housing system, to ensure that housing assistance is provided to households in greatest need for the duration of that need. The analysis provided in 5.4 below demonstrates that housing for the lowest income earners is also an ‘at risk’ market segment as a result of industrial growth generally.

GLNG is committed to mitigating potential impacts to community housing. Details of GLNG’s proposed approaches to address this issue are provided in section 5.4. 5.4.1 Social Housing Stock Details of existing social housing stock for the Gladstone Regional Council area have been provided by the Department of Communities as at October 2010 (refer Table 36 below). As shown, the total number of social housing dwellings in the region is 976 and over half of these dwellings are three bedrooms detached houses. Table 36: Numbers of Social Housing Dwellings (Oct 2010)

Dwelling Type Bedroom Count Total

Apartment 1 23

Apartment 2 67

Apartment 3 2

Attached Housing 2 49

Attached Housing 3 2

Boarding House 1 13

Cluster Housing 2 1

Cluster Housing 3 1

Detached House 2 10

Detached House 3 524

Detached House 4 65

Detached House 5 5

Detached House 6 1

Dual Occupancy 1 1

Dual Occupancy 2 2

Duplex 2 48

Duplex 3 2

Senior Unit 1 93

Senior Unit 2 43

Studio Apartment 0 1

Studio Apartment 1 23

Total 976

Source: DOCs 2010b 5.4.2 Demand for Social Housing Table 37 to Table 39 below summarise DOC data relating to the demand for social housing in the Gladstone Regional Council area and the specific types and locations of dwellings in demand. The key points that can be drawn from this data are: there were 250 applicants on the housing register waiting list as at 31 October 2010; the vast majority of applicants on the housing register were seeking a social housing dwelling in

the New Auckland area (140 of 250 applicants); there was a relatively even demand for 1, 2 and 3 bedrooms properties (64, 62 and 67 applicants

respectively). Seniors units were also in high demand (46 applicants); most applicants had been on the waiting list for a period of less than 6 months (108 applicants),

however, an addition 112 applicants had been waiting for between 6 months to 2 years; and 13 applicants had been on the waiting list for four years or longer.

Table 37: Number of Applications on Waiting List

Wait List Area A

Total

Barney Point Area 8

Boyne Island Area 5

Clinton Area 5

Gladstone Area 42

Glen Eden/Telina 2

Kin Kora/Sun Valley 3

Miriam Vale Area 3

New Auckland Area 140

South Gladstone 6

Tannum Sands Area 5

Toolooa Area 3

West Gladstone Area 28

Gladstone Regional Council 250

Source: DOCs 2010b Table 38: Number of Applications on Waiting List by Dwelling Size

Wait list area a

Dwelling size

Total Seniors' unit

One bedroom

Two bedroom

Three bedroom

Four Bedroom

More than four bedroom

Barney Point Area 0 0 3 5 0 0 8

Boyne Island Area 0 0 3 1 0 1 5

Clinton Area 0 0 0 4 0 1 5

Gladstone Area 14 20 6 2 0 0 42

Glen Eden/Telina 2 0 0 0 0 0 2

Kin Kora/Sun Valley 0 0 1 2 0 0 3

Miriam Vale Area 3 0 0 0 0 0 3

New Auckland Area 16 40 41 40 3 0 140

South Gladstone 2 2 0 2 0 0 6

Tannum Sands Area 1 0 3 1 0 0 5

Toolooa Area 0 0 0 2 1 0 3

West Gladstone Area 8 2 5 8 4 1 28

Gladstone Regional Council 46 64 62 67 8 3 250

Source: DOCs 2010b Table 39: Number of Application on Waiting List by Time on Housing Register

Local Government Area Less

than six months

Six months to less

than one year

One year to less

than two years

Two years to less than

three years

Three years to less than

four years

Four years and

more

Total

Gladstone Regional Council 108 58 54 15 2 13 250

Source: DOCs 2010b 5.4.3 National Rental Affordability Scheme (NRAS) Housing There is a number of approvals for NRAS developments in the Gladstone, which includes:

35 x 3 and 4 bedroom houses (Queensland Affordable Housing Consortium); 60 x 2 bedroom units (Queensland Affordable Housing Consortium); and 21 x 2 bedroom units (Gladstone Central Committee on the Ageing). At the time of writing, none of the above NRAS proposal had been built. 5.4.4 National Building Economic Stimulus Package (NBESP) Housing Under the NBESP initiative, the Department of Communities has completed the construction of the following social housing dwellings within the Gladstone LGA: 6 x 2 bedroom and 2 x 1 bedroom cluster dwellings (Toolooa Street, South Gladstone); 1 x 5 bedroom detached house (Northridge Drive, Calliope); and 1 x 4 bedroom detached house (Wattora Close, Boyne Island). In addition, the construction of 12 x 2 bedroom apartments is planned for completion in December 2010 at Oaka Street, South Gladstone. 5.4.5 Summary and Implications The current stock of social housing dwellings is 976 dwellings, most of which are detached 3

bedroom houses. This number includes dwellings that are managed through the State Government as well as community housing organisations.

At the time of writing, 116 NBESP dwellings and NRAS dwellings were approved for construction in the Gladstone region.

There was demand for approximately 250 social housing dwellings at 31 October 2010 and a number of applicants on the register had been waiting for a period longer than 4 years.

5.5 CONSULTATION WITH KEY STAKEHOLDERS 5.5.1 Overview of Consultation Activities Stakeholder consultation specific to the IPHS was undertaken through October 2010 to March 2011. This followed a 24 month stakeholder engagement programme as part of the development of the GLNG Environmental Impact Statement. The purpose of the IPHS consultation was to:

enhance understanding of the local issues affecting the development and delivery of housing responses;

discuss the lessons learned from previous experiences; identify collaboration opportunities; coordinate approaches with other major project stakeholders and Government agencies; inform the development of strategies to address impacts on the local housing market; and test the strategy framework developed by the project team. The following stakeholder groups listed in Table 40 were consulted through this period.

Table 40: IPHS Stakeholder Consultation

Stakeholder Type


Consultation Method

Date Consulted

State Government

Dept of Infrastructure & Planning (Social Impact Unit)


Meeting

16 November 2010

Dept of Communities



Overview of RentConnect Program to Gladstone Housing Working Group


OESR Data gathering Meeting October 2010

ULDA

Data gathering Meeting 15 October & 9 November 2010

Discussion on affordable housing investments


DIP Site tour and briefing on housing development localities

Site Tour 17 February 2011

Local Government

Gladstone Regional Council – Strategic Planning


Gladstone Regional Council – Development Assessment


Gladstone Regional Council – Human & Social Services


Gladstone Regional Council officers


Workshop 1 November 2010


Discuss immediate investments in supported accommodation programs

Meeting 7 February 2011


Discuss opportunities for rental assistance programs



Discuss partnership opportunities for housing infrastructure investments



Provision of draft IPHS for review and discussion of housing strategies.


Not for Profit Organisations (eg. Community Housing organisations)

Rosebery Community Housing Organisation, Gladstone

Local market knowledge

Meeting

1 November 2010

Rotary, Gladstone Local market knowledge


Peak Industry Queensland Resources Industry position on Workshops October 2010

Stakeholder Type


Consultation Method

Date Consulted

Body Council housing conditioning Meeting November 2010

LNG Proponents

British Gas (BG) Joint Housing Working Group

Meeting 2 November & 24 November 2010

Origin / Conoco Philips

Bechtel

GLNG’s key message to stakeholders during consultation was that there was no single solution to address the housing issues. It was clear that a range of strategies would be required to both mitigate impacts and meet the intent of the CG’s conditions. Positive feedback and support for this approach was received from stakeholders. In summary, there was a firm commitment from all parties to work collaboratively on the issues over the life of the project. Furthermore, there was a specific requirement from the Coordinator-General for GLNG to work collaboratively with other industry proponents specifically on the housing issues. GLNG initiated a Joint Housing Working Group and invited QCLNG, APLNG and Bechtel representatives to discuss collaborative solutions at the GLNG office. The group has met twice with full participation from all proponents and contractors. Each proponent will act as the rotating chair. Both GLNG and APLNG have chaired the meeting. QCLNG will host the next meeting. Opportunities from this committee will be fed back through the Gladstone Regional Community Consultative Committees. 5.5.2 Consultation Outcomes The consultation process provided an insightful understanding of the housing issues currently facing the Gladstone Region and the anticipated impacts of the LNG industry on the local housing market. The outcomes can broadly be categorised into the following themes:

information / data on the local housing market; issues affecting housing delivery; opportunities for partnerships / suggested strategies; identification of housing needs. The following table outlines the key outcomes of the consultation process which contributed to the development of this IPHS. The following section identifies that these contributed greatly to the development of the GLNG IPHS.

Table41: Summary of Consultation Outcomes (Gladstone)

Theme Key Outcome

Opportunities for partnerships / suggested strategies

Rotary has a proposal for 36 units of aged care with an onsite manager’s residence and is seeking support from GLNG to take a 3 year fixed lease to help finance the project.

Council officers were receptive to a precinct development approach in the CBD to stimulate different forms of housing. Potential partnerships with the University for student housing was discussed. It was noted that the CBD is constrained by services.

Council are exploring plans for a community precinct / affordable housing / aged care housing on Council land. Potential for involvement / partnerships.

Council has lodged a DA for a mainland camp next to the airport – which could accommodate around 1000 workers. Approval expected in early 2011, subject to resolution of issues. Other camp locations included: the Mac Group camp in Calliope (300 person); and a 200 person camp in Calliope Historical Village.

Council offers support services for rental tenants in distress (if they meet certain criteria). They are currently seeing an increase in applications and walk-in’s and suggested that a strategy to increase Council funding for their current program would be valuable.

Council has seven (7) crisis housing properties – there may be need for additional properties as demand increases. Council suggested a strategy of taking out head leases on a range of rental properties for the purpose of increasing the number of crisis or affordable housing stock.

Department of Communities have a number of properties coming online in 2011 which will assist in addressing the affordable housing issue in Gladstone.

Department of Communities suggested that their RentConnect program may be able to be extended to Gladstone (through a locally based officer). GLNG could assist with funding of this resource / program. ULDA had also suggested that the rental subsidy strategy would need to be supported by programs such as this.

Council suggested that there is the potential to partner on infrastructure with additional funding sought from the Federal Government’s “Building Better Regional Cities” program.

Rosebery Community Services has the ability to manage any type of housing / accommodation and have intentions to increase the amount of stock that they currently manage.

Santos has established a joint Housing Working Group in Gladstone with Conoco Philips, Bechtel, BG and Santos with a view to meet on a monthly basis and establish any areas of collaboration.

Information / data on housing market

In 2009 there were around 2836 uncompleted lots available, 792 with operational works approval.

ULDA site will be coming on line 254 lots (majority <450sqm) with first houses and display by May 2011.

Other approvals coming on line shortly: Vantage has operational works application in for 2 stages Emmadale has another operational works stage currently lodged Tannum – 2000 lot subdivision – not yet approved ULDA Gladstone – 250 lots with around 30 dwellings per hectare

Roseberry Community Services currently manages 29 units and 4 houses as community housing for Department of Communities. Further units (8 units) coming on line in November 2010 and more (12 units) in March 2011. Recent increase of 30% increase in bed nights in youth shelters.

Theme Key Outcome

Issues / concerns in relation to the local housing market

Further information was sought on operational works approval timeframes. GRC noted that most of the delays are due to the quality of the applications. Industry suggested that timeframes had slowed to up to 12 months to obtain operational works approval (after amalgamation as there had been some resourcing issues).

Lack of clarity around cost and responsibility for infrastructure can delay the delivery of housing to the market. Ongoing negotiations occur with various agencies over road infrastructure costs noted as delaying the delivery of some housing projects (Noted: upgrade of Kin Kora roundabout came up several times in other consultations).

Specific housing needs identified

The need for student accommodation was discussed. Further information needed from the university to establish their approach to student housing.

5.5.3 Implications for the Development of Integrated Strategies The consultation process has universally identified the need for the IPHS to contain a suite of strategies rather than to focus on any single strategy such as the direct provision of housing for workers. The types of strategies identified through consultation with stakeholders included: Partnerships with local stakeholders, including the leaseback of retirement accommodation,

student housing and affordable housing. Establishing a mainland camp which could potentially provide Council with infrastructure for key

projects. Increasing funding of Council’s rental assistance program. Providing additional crisis (supported) accommodation for agencies such as Council or other

community housing providers. Possibly extending the DOC RentConnect program to Gladstone. Developing partnerships with Council to seek Commonwealth funding for infrastructure. Collaborating with other LNG providers to ensure the most effective impact mitigation and use

of resources. Removing barriers to supply and reducing the timeframe to bring housing to the market

through providing assistance to Council with processing operational works applications. Providing clarity around the cost and responsibility for infrastructure to expedite the delivery of

housing projects.

5.6 GLNG’S STRATEGIC APPROACH TO HOUSING IN THE GLADSTONE REGION 5.6.1 Key Objectives The preceding analysis and discussions with stakeholders have emphasised the need for the IPHS to contain a suite of strategies rather than to focus on any single strategy. The key objectives which underlie these strategies are as follows:




4. Assist in releasing supply constraints which inhibit the private housing market from responding to increases in demand;


The Housing Strategies detailed below have been developed based on stakeholder feedback on the most appropriate responses to address housing issues in the Gladstone region. GLNG will work through the Gladstone Regional Community Consultative Committee (as required by the Coordinator-General) to monitor the performance of the strategies and adapt their implementation to changing circumstances. GLNG wishes to note that while it will be a significant industry player in the Gladstone region, it cannot be solely responsible for the housing outcomes of the Gladstone community. GLNG, along with other key industries and government bodies, all have a role to play in the delivery of quality housing outcomes for the local community. This document is GLNG’s commitment to taking a responsible approach to the issues. 5.6.1.1 Minimise impacts to the availability and affordability of housing in regional

communities Strategy 1 Use to the greatest extent possible, purpose built temporary worker

accommodation facilities located outside of major communities. Deliverable: Construct a workers accommodation facility on Curtis Island, Gladstone with the

capacity to house as much of the FIFO workforce as possible without requiring mainland accommodation.

Description: While there remains debate about the pros and cons of workers camps and their

locations, the analysis of the Gladstone housing market confirmed that the Gladstone community would not have the capacity to host such large numbers of construction workers. Community consultation also revealed a mixed response in terms of the potential negative social impacts that would result from housing construction workers in the community. The majority of community support was for the camps to be located away from communities to minimise negative anti-social behaviour.

The accommodation facilities will be self-contained modular structures, catering for

one worker per unit. Each unit will include a private toilet, shower and sink. There will be a mess hall featuring kitchen/cafeteria dining hall and break area. The kitchen will be designed to the relevant standards set out by the Health Act 1911. Central recreational facilities, along with water supply, waste and sewerage treatment facilities will also be provided.

An example of the worker’s camp facilities at Fairview in Roma is provided in Figure

30 below.

Figure 30: Fairview, Roma, Workers Accommodation

The main reasons for locating the worker accommodation facility on Curtis Island

are to:

Reduce worker fatigue and physical stress by:

- Saving lost time spent travelling to and from the mainland each day (up to 3.5hrs per day)

- Controlling worker’s living environment (increasing sleep quality, patterns and duration) and;

- Providing good health and lifestyle habits (including healthy eating choices, recreation and exercise facilities)

Improve commuter safety by reducing the number of:

- Harbour crossings (by up to 52 movements per day)

- Sea/land transfers

- Landward vehicle movements (by up to 80 bus movements per day)

Timeframe: The construction of the workers camp on Curtis Island will be completed by February 2012. At the end of construction of the LNG facility, the workers facility will no longer be required and will be demobilised.

Strategy 2 Facilitate the provision of new housing for workers settling in Gladstone Deliverable: Partner with a developer to bring to market (at a minimum) up to 45 new dwellings

over the next 18 months.

Description: GLNG has defined a ‘settler’ as any permanent Operational worker requiring relocation to Gladstone. GLNG will facilitate the construction of up to 45 new dwellings.

Timeframe: GLNG is progressing the construction of these dwellings immediately as an impact

mitigation measure for its short term temporary project workforce. Strategy 3 Facilitate the provision of new affordable housing dwellings in Gladstone Deliverable: Provide a funding grant to the Gladstone Regional Council to establish a Gladstone

Public Housing Company to manage the development of new community and affordable housing in the Gladstone Region.

Description: GLNG will provide the funding on the basis that the housing stock is available only

to those members of the community that meet the relevant criteria for affordable and community housing support.

Through this program, the Gladstone Housing Company can ensure that the

appropriate dwelling diversity is maximised to cater for the growth in the population, and in particular, those on a low income. The expertise of the Gladstone Housing Company would also be better positioned to administer applications for support from the community, and manage their subsequent placement within the inventory of community and affordable housing stock owned by the Housing Company.

Through the LNG proponent Housing Working Group, GLNG has proposed the idea

of a pooled funding arrangement to tackle social and affordable housing. Under this arrangement, LNG proponents will commit to either matching GLNG’s funding, or provide a contribution commensurate with their level of impact. This concept has received strong support from the other LNG proponents which will result in a significant capital allocation for social and affordable housing in Gladstone.

In order to manage the pooled funds effectively, GLNG will require the Gladstone Regional Council, or its appointed housing company, to enter into a Funding Agreement to ensure: a) The proper financial stewardship and governance is in place to maximise the

economic return to the housing company so that it remains a sustainable entity and a going concern;

b) Appropriately skilled employees are appointed to make decisions about the acquisition and/or construction of social and affordable housing dwellings and their locations;

c) That the administration of Federal, State and Local Government housing programs can be facilitated through the Housing Company for application to Gladstone residents;

d) That reports are provided to LNG proponents detailing the outcomes the pooled funding initiatives are delivering to the Gladstone community.

Timeframe: Upon approval of this housing strategy, GLNG will commit up to $6.5M to the Gladstone Regional Council, or the housing entity appointed to manage the pooled funds, for these purposes.

5.6.1.2 Mitigate short term impacts relating to project start-up activities Strategy 4 Assist those members of the community who are most vulnerable to suffer

rental stress as a result of rapid economic growth Deliverable: Contribute funding to local or state government rental assistance programs Description: Stakeholder feedback indicated that in past experience, landlords took the

opportunity to raise rents in times of strong economic growth, which resulted in low income households falling out of rental accommodation. It was identified that the Gladstone Regional Council manages a rental assistance program to support this client base.

Timeframe: On 28 January 2011, GLNG committed $350,000 (to be paid immediately in

instalments) to the Gladstone Regional Council to support its rental assistance program.

Strategy 5 Assist those members of the community who are most vulnerable to suffer

homelessness as a result of rapid economic growth Deliverable: Contribute funding to local government supported accommodation programs

Description: This strategy is aimed at supporting vulnerable community members who become homeless due to their inability to access basic accommodation. While there are various forms of crisis housing and emergency assistance available in Gladstone, it is possible that the resources of Councils, charitable organisations and housing providers may be stretched.

Timeframe: On 28 January 2011, GLNG committed $350,000 (to be paid immediately in

instalments) to the Gladstone Regional Council to support its Supported Accommodation Program.

Strategy 6 Build the capacity of regional housing support organisations to deliver

expanded programs and assist more clients Deliverable: Provide funding to local government organisations to provide additional resourcing

for the management of expanded programs aimed at supporting community housing.

Description: Local Government Authorities often find themselves the first point of call for people

in housing distress. It is likely the Gladstone Regional Council will be called upon in a greater capacity to deliver more services to more clients during this period of industrial growth.

Timeframe: On 28 January 2011, Santos committed $100,000 (to be paid immediately) to the

Gladstone Regional Council for an additional Community Housing Officer for a period of 12 months. GLNG will consider providing additional funding for a further 12 months subject to a review of the effectiveness of the initial 12 month period.

Strategy 7 Facilitate the availability of rental advisory services in the Gladstone Region Deliverable: Negotiate with state and local governments regarding the opportunity to establish

or expand advisory services to new and existing residents of the Gladstone Region. Description: The Department of Communities has successfully piloted a RentConnect program

aimed at helping Queenslanders find and secure a home to rent in the private market. The RentConnect Advisory Service provides information and practical advice on how to find a suitable property and how the process of applying for a property to rent works. The service also assists people with preparing a rental application and links them to local real estate agents and community services.

Timeframe: GLNG will work with the Gladstone Regional Council and the Department of

Communities immediately to determine the viability of expanding the RentConnect service into Gladstone.

5.6.1.3 Improve the availability of housing diversity that sustains low income households

within the community Strategy 8 Facilitate the provision of community housing targeted at low income

households, particularly key workers and students and the indigenous people. Deliverable: Through the grant process identified in Strategy 3 above, GLNG will contribute

funding to the Gladstone Regional Council (or the Gladstone Housing Company) to ensure new dwellings are constructed to deliver housing outcomes for this target group.

Description: A common finding in resource communities is the lack of accommodation in the

community for single people, including females, students, trainees, indigenous people, apprentices and lower paid workers who cannot afford rents; people seeking employment who arrive in the towns without accommodation and builders who are seeking accommodation to work on constructing more houses in the area.

A recent model used in WA involved the construction of a large apartment building complete with coffee shop/convenience store. This type of facility could provide studio or one bedroom accommodation. Alternatively, more dormitory or single room style accommodation could be used. This option could be delivered as part of a mixed use scheme managed by the Gladstone Housing company, involving project partners such as community housing providers, universities, TAFE Colleges and local authorities.

Timeframe: On approval of this Housing Strategy, GLNG will provide the funding identified in

Strategy 3 above (up to $6.5M) to the Gladstone Regional Council immediately for the establishment of a Gladstone Housing Company and the construction of new community housing.

5.6.1.4 Assist in releasing supply constraints which inhibit the private housing market from

responding to increases in demand

Strategy 9 Partner with other LNG Industry Proponents and the ULDA to bring forward the development of affordable housing lots to the Gladstone market.

Deliverable: Enter into an agreement with the ULDA to provide funding to expedite the

construction of affordable houses at the Clinton and Tannum Sands development sites in Gladstone.

Description: By providing the ULDA with a funding subsidy of up to $1M, the ULDA will be able

to bring forward the total development of its Clinton site from a five year program to a 2.5 year program. This will bring about the completion of approximately 250 lots upon which new housing will be constructed immediately.

On completion of the Clinton development, GLNG may allow the funding advance

to be used to fast track the Tannum Sands development under a similar arrangement. This development will realise over 800 new affordable housing lots.

On completion of the developments, GLNG will require the ULDA to return the

funding advance back to the Gladstone Regional Council or the appointed housing company.

Timing: Upon approval of this strategy, GLNG will commit $1M of its $6.5M for social and

affordable housing to the ULDA to fast track the Clinton development site for affordable housing.

5.6.1.5 Monitor housing market activity to determine the effectiveness of strategies in

stabilising the property market and develop adaptive management practices to respond to them.

Strategy 10 Actively monitor the housing market over the life of the GLNG project to ensure

housing strategies are delivering the intended benefits. Deliverable: Work with the Office of the Coordinator-General on the development and

implementation of the Gladstone Housing Data Collection and Monitoring Framework.

Description: GLNG will participate in six monthly reviews with the Office of the Coordinator-

General to monitor the effectiveness of GLNG’s housing strategies.

Through the Gladstone Regional Community Consultative Committee, GLNG will ensure it communicates progress on implementation of its housing strategies, and provides any feedback on the outcomes of the working group.

Timing: The State Government through the Office of the Coordinator-General is in the

process of establishing the Working Group for immediate consideration of the issues.

Table 42: Summary of Integrated Housing Strategies, Gladstone Regional Council

Strategy Deliverable Time Frame Investment Proposal

Partnership Potential

Objective 1: Minimise impacts to the availability and affordability of housing in regional communities

1. Use to the greatest extent possible, purpose built temporary accommodation facilities located outside of major communities.

Construct a workers accommodation facility on Curtis Island, Gladstone with the capacity to house as much of the FIFO workforce as possible without requiring mainland accommodation.

Camp to be on-line February 2012

Commercial in Confidence

N/A

2. Facilitate the provision of new housing for workers settling in Gladstone

Partner with a developer to bring to market up to 45 new dwellings over the next 18 months.

Immediate Commercial in Confidence

Development Industry

Objective 2: Mitigate short term impacts relating to project start-up activities

3. Facilitate the provision of new affordable housing dwellings in Gladstone

Provide a funding grant to the Gladstone Regional Council to establish a Gladstone Public Housing Company to manage the development of new affordable housing in the Gladstone region.

Immediate-2013 Up to $6.5M ULDA, Council, Housing Company, LNG Industry

4. Assist those members of the community who are most likely to suffer rental stress as a result of rapid economic growth.

Contribute funding to local or state government rental assistance programs

Immediate - 2012 $350,000 Council

5. Assist those members of the community who are most vulnerable to suffer homelessness as a result of rapid economic growth

Contribute funding to local or state government supported accommodation programs

Immediate - 2012 $350,000 Council

6. Build the capacity of regional housing support organisations to deliver expanded programs and assist more clients

Provide funding to local government organisations to provide additional resourcing for the management of expanded programs aimed at supporting community housing.

Immediate – 2012 $100,000 + $100,000

Council

7. Facilitate the availability of rental advisory services in the Gladstone Region

Negotiate with state and local governments regarding the opportunity to establish or expand advisory services to new and existing residents of the Gladstone Region.

Immediate To be negotiated Council, DOC

Objective 3: Improve the availability of housing diversity that sustains low income households within the community

8. Facilitate the provision of community housing targeted at low income households, particularly key workers, students, and indigenous people

Provide a funding grant to the Gladstone Regional Council to establish a Gladstone Public Housing Company to manage the development of new community housing in the Gladstone region.

Immediate - 2013 Included in Strategy 3 funding.

Council, community housing providers, University/ TAFE, others

Objective 4: Release supply constraints which inhibit the private housing market from responding to increases in demand

9. Partner with other LNG Industry Proponents and the ULDA to bring forward the development of affordable housing lots to the Gladstone market.

Enter into an agreement with the ULDA to provide funding to expedite the construction of affordable houses at the Clinton and Tannum Sands development sites in Gladstone.

Immediate - 2012 $1M (Included in Strategy 3 funding)

Council, Housing Company, LNG industry

Objective 5: Monitor housing market activity to determine the effectiveness of strategies in stabilising the property market

10. Actively monitor the housing market over the life of the GLNG project to ensure housing strategies are delivering the intended benefits.

Work with the Office of the Coordinator-General on the development and implementation of the Gladstone Housing Data Collection and Monitoring Framework.

Underway N/A Councils, DOC, Office of Coordinator General

TOTAL Up to $7.4M

6.0 CONCLUSIONS AND SUMMARY OF STRATEGIES This report provides an Integrated Project Housing Strategy (IPHS) for the Gladstone Liquefied

Natural Gas (GLNG) development.

The GLNG IPHS has been prepared in response to conditions of approval for the GLNG project issued by the Queensland Coordinator-General (CG) in May 2010.

The approach to the IPHS adopted by GLNG has been developed in consultation with government agencies, including the Department of Infrastructure and Planning (DIP), the Department of Communities (DOCs), Councils, other major project proponents and local stakeholders.

The approach has been to identify potential impacts, desired outcomes and resultant strategies to achieve these.

Potential housing impacts have been identified through a review of project documentation and broader literature in resource communities. These have pointed to a number of needs which are likely to emerge in the particular housing markets of Gladstone and Maranoa.

This process has emphasised the need for the IPHS to focus on a suite of strategies rather than any single strategy.

The recommended concept of solely providing additional housing stock into the market was tested, and found to be insufficient to address the housing issues which may arise.

There is strong justification following the consultation with key stakeholders to provide a more comprehensive suite of strategies to mitigate potential community impacts.

In recognition of the importance housing holds in the community, GLNG has developed a range of strategies to offset these potential impacts (see sections 4.6 and 5.6).

The aim is to develop sustainable communities in the medium to longer term, and to overcome poor housing outcomes. This accords with the principles within the Department of Infrastructure and Planning’s (DIP) Draft Major Projects Housing Policy of commitment to the liveability of resource communities.

This strategy has identified that collaboration will drive better outcomes and opportunities for a coordinated approach to improving housing outcomes for the Gladstone community.

ABBREVIATIONS CAF Construction Accommodation Facility (Curtis Island) CSG Coal Seam Gas CSG Coal Seam Gas DIDO Drive in, Drive out EPC Engineering procurement or construction FIFO Fly in, Fly out GLNG Gladstone Liquefied Natural Gas GRC Gladstone Regional Council IPHS Integrated Project Housing Strategy LNG Liquefied Natural Gas MRC Maranoa Regional Council OESR Office of Economic and Statistical Research PIFU Planning Information and Forecasting Unit (PIFU) REIQ Real Estate Institute of Queensland SPQ Single Persons Quarters TAF Temporary Accommodation Facility ULDA Urban Land Development Authority

DEFINITIONS Imported Workers

An individual who does not live in the study area or within reasonable commutable distance to the project site. A “reasonable commutable distance” has been set at <100km. The imported workforce is expected to be fly-in, fly-out (FIFO) or in some cases drive-in, drive-out (DIDO).

For employment purposes:

Usual Place of Residence is the address stipulated by the employee in the Registration of Interest (ROI) form. This will determine their classification as a non-local (imported) or local employee.

Candidates for employment will be required, upon registration, to make a declaration of their usual Place of residence on their ROI form. The Employer will use the declaration to determine if their employee is a Non-Local (Imported) Employee.

For the purpose of geographically defining a Non-Local Employee engaged under the terms of the Agreement, it includes any employee whose usual place of residence is outside of a 60km radius of the nearest Post Office to the Project. In the case of Gladstone Projects, the centre point of the radius is the Gladstone DC Post Office.

Local Workers

An individual who lives in the Gladstone or Roma Regional Council areas within a reasonable commutable distance. A “reasonable commutable distance” has been set at <100km.

For Gladstone employment purposes:

A local employee is an individual who resides within 60km of the Gladstone DC Post Office at the time of their application. Manual Workers

Workers who are directly involved in construction tasks. Non-Manual Workers

Workers involved in construction phases in a professional capacity, or engaged in the management or oversight of the construction. Settler An individual who previously did not live in the relevant Regional Council area and is seeking to settle within a reasonable commutable distance to the project site for permanent ongoing employment. GLNG has applied this definition to its Operational Workforce. Temporary Accommodation Facility

A term used to describe a particular type of non-private accommodation, usually provided to accommodate unaccompanied mining non-residential company workers and associated contractors. Most TAF accommodation centres are a form of hostel that typically consists of demountable dwellings (often referred to derogatively as ‘dongas’) arranged in a large TAF, although some establishments also contain permanent and semi-permanent dwellings. TAF

accommodation is arranged with common messing, laundry and entertainment facilities and rooms that are cleaned and serviced by the operator. Occupants of TAFs are usually provided with all meals (GLNG 2009 - EIS) (GLNG Accommodation Study).

REFERENCES Arrow Energy (2010). Arrow Energy LNG Project. Available online at:

http://www.arrowenergy.com.au/page/Projects/Arrow_Energy_LNG_Project/

Australia Pacific LNG (APLNG) (2010) Australia Pacific LNG. Available online at: http://www.aplng.com.au

Australian Government (2008) Housing Affordability Fund: The Guidelines. Available online at: http://www.fahcsia.gov.au/sa/housing/pubs/housing/hafguide/Pages/default.aspx

Australian Government (2010) Nation Building: Economic Stimulus Plan. Available online at: http://www.economicstimulusplan.gov.au/housing/pages/default.aspx

Australian Green Development Forum (21 April 2010) Queensland Housing Affordability [Seminar] Brisbane. Speaker: Honourable Tania Plibersek MP, Minister for Housing and the Status of Women.

Bechtel Construction Australia Pty Ltd (2009) Gladstone Housing Availability Survey.

Buckley Vann Town Planning, Briggs and Mortar Pty Ltd and Andrea Young Planning Consultants (2010) Gladstone Region Social Infrastructure Strategic Plan - Background Report.

Calliope Shire Council (now part of Gladstone Regional Council) (2007) Calliope Shire Planning Scheme. Available online at: http://www.gladstonerc.qld.gov.au/building5Development/planning.html

Colliers International (2010a) Santos Corporation Limited: Gladstone Accommodation Review (PA1645/R0115).

Colliers International (2010b) Santos Corporation Limited: Roma Accommodation Review (PA1645/R0116).

Commonwealth of Australia (2009) National Rental Affordability Scheme. Available online at: www.fahcsia.gov.au/sa/housing/progserver/affordability/nras/Pages/default.aspx

Commonwealth of Australia (2010) Nation Building – Economic Stimulus Plan. Available online at: http://www.infrastructure.gov.au/infrastructure/esp/index.aspx

Co-ordinator General (2010) Coordinator-General’s evaluation report for an environmental impact statement – Gladstone Liquified Natural Gas - GLNG project.

Deborah Wilson Consulting Services (2008) Report on a Survey of Mining Industry Employment and Accommodation Practices: Prepared as a Component of the Central Highlands Economic Housing Zone Project.

Department of Communities (2009) Affordable Housing in Resource Communities (Discussion Paper).

Department of Communities (2010a) Gladstone Regional Council: Housing Analysis Review: Final. Queensland Government.

Department of Communities (2010b) Request for Social Housing Data - Santos Housing Strategy [Email Communication from Watson, W. 30 November 2010].

Department of Communities (2010c) Surat Basin Regional Housing Market Snapshot, October 2010.

Department of Families, Housing, Community Services and Indigenous Affairs (DFaHCSIA) (2010) Housing Affordability Fund (HAF). Available online at: http://www.facs.gov.au/sa/housing/progserv/affordability/haf/Pages/default.aspx

http://www.arrowenergy.com.au/page/Projects/Arrow_Energy_LNG_Project/

http://www.aplng.com.au/

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APPENDIX A: COORDINATOR-GENERAL’S CONDITIONS This Integrated Project Housing Strategy (IPHS) responds to Condition 9-12 of the Coordinator-General’s Evaluation report for an environmental impact statement – Gladstone Liquefied Natural Gas - GLNG project, May 2010. Specifically, Condition 9 states: It is required that the proponent shall develop an Integrated Project Housing Strategy for the project in consultation with other major project proponents, Councils and the Department of Communities, within three (3) months from the project commitment, and submit to the Coordinator-General for approval. The purpose of the strategy is to initiate, cooperative and coordinate approaches in consultation with other major project stakeholders and Government agencies to resolve the cumulative housing impacts, with the outcome of achieving joint mitigation strategies, and delivery of housing solutions. The strategy shall have provisions to: a) provide housing for GLNG’s imported workforce that is not housed by the project specific

temporary worker accommodation by a range of means including (but not limited to) direct supply of housing/units and facilitating joint ventures for construction of dwellings

b) provide investment in community housing for households who may be affected by increased

housing costs c) implement strategies to advise workers and families wishing to settle in project areas of their

accommodation options under this strategy d) monitor the project impacts on affordable housing, particularly for Indigenous people and low

income households. e) review performance of workforce housing supply. The Integrated Project Housing Strategy is to be presented to the Maranoa and Gladstone Regional Community Consultative Committees (RCCCs) for review and to take account of the findings of the review. The Integrated Project Housing Strategy is to report performance to the Maranoa and Gladstone Regional Community Consultative Committees (RCCCs) and seek input on a regular basis, not exceeding 6 monthly. Conditions 10, 11 and 12 of the CG’s report also relate to housing.

Specifically they state: Condition 10—Housing for Gladstone region GLNG or its construction contractors shall provide new or additional housing stock in the Gladstone region to meet 50 per cent or other percentage concluded from the Integrated Project Housing Strategy and approved by the Coordinator-General with advice from the Department of Communities, of the project’s workforce seeking to settle in the Gladstone Regional Council area. As a guide, using the workforce estimates of the project EIS the following housing solutions may be required: a) 100 houses/units by 12 months after commencement of construction; b) 190 houses/units by 18 months; and c) Maintain this number of housing units until month 40 of the project. The housing solution supply provided by GLNG and its contractors are to be reviewed every six (6) months under the Integrated Project Housing Strategy for the project. It is required that the Integrated Project Housing Strategy report to the Gladstone Regional Community Consultative Committee (RCCC). Condition 11—Housing for Roma region The proponent or its construction contractors shall provide new or additional housing stock in the Roma region to meet 100 per cent or other percentage concluded from the Integrated Project Housing Strategy and approved by the Coordinator-General with advice from the Department of Communities, of the project’s workforce seeking to settle in the Maranoa Regional Council area. As a guide, using the workforce estimates of the project EIS the following housing solutions may be required: a) 63 houses/units by 12 months after commencement of the project b) 92 houses/units by 24 months c) 127 houses/units by 36 months d) 160 houses/units by 4 years. The housing solution supply provided by GLNG and its contractors for the Roma area are to be reviewed every six months under the Integrated Housing Strategy for the GLNG project. It is required that the Integrated Project Housing Strategy report to the Maranoa Regional Community Consultative Committee (RCCC).

Condition 12—Affordable and community housing solutions In addition to the conditions above, the proponent is required to provide new or additional supply of housing stock progressively as the project workforce increases. For each additional imported worker employed by Santos and its contractors to be accommodated in the region’s housing pool, GLNG is to provide resources for housing at the rate of: Community Housing a) 1 house /unit for every 20 imported workers settling in Gladstone; and b) 1 house /unit for every 20 imported workers settling in Roma Affordable Housing a) 1 house/unit for every 11 imported workers settling in Gladstone; and b) 1 house/unit for every 15 imported workers settling in Roma. Compliance with this condition and suitability of the ratios stipulated above, as decided by the Coordinator-General, with advice from the Department of Communities, is to be reviewed every 6 months under the Integrated Project Housing Strategy. It is required that the proponent reports to the Gladstone and Maranoa Regional Consultative Committee (RCCC) regarding Affordable and Community Housing Solutions condition for Gladstone and Roma.

APPENDIX B: ULDA – RESIDENTIAL 30 GUIDELINE In March 2010 the ULDA released the ‘Residential 30’ guideline, which outlines approaches and techniques to achieving high quality, diverse and affordable communities within urban development areas. The guideline deals with neighbourhood design including: lot design; block design; street design; park design; building design. Of most relevance to housing provision, are the sections in the guideline that deal with lot design and building design. These sections of the Residential 30 guideline are reviewed in more detail below. Lot Design Guidelines The guideline includes a section on lot design on the basis that ‘choice of lot sizes and dimensions are a fundamental determinant of the design of a site, impacting on the street framework’. The philosophy behind the ULDA lot design guidelines are: use of standard lot dimensions that are suitable for a preferred dwelling design (i.e. the lots are

suitable for the building design being promoted); street patterns are rectilinear to allow for the creation of rectangular lots; and different lot sizes are dispersed to achieve a variety of streetscapes and avoid concentrations of

similar housing types.

Small lot sizes are promoted in the guideline as a means to achieve greater dwelling density and lot diversity, while reducing land consumption and encouraging a more compact urban form. The smallest lot size promoted in the guideline is 125m2, which is reserved for row style housing provided as part of an integrated development constructed by one developer. The specific lot dimensions supported by the guideline are illustrated below. These standard lot dimensions are considered to lead to ‘efficiencies in lot layout which may reduce costs for engineering and building construction and in turn, housing affordability’. As shown, the lot dimensions vary between: 5m – 20m in lot width; 25m – 32m lot depth; 125m2 – 640m2 in area.

For ease of reference, the standard lots are labelled according to the dwelling type that can generally be supported (e.g. terrace lot, row lot etc).

The lot types and the dwellings suitable for each are explained further below.

Typical Lot Shapes and Dimensions

Source: Urban Land Development Authority 2010c, Page 15 Building Design Guidelines It is identified in the ULDA guideline that dwelling design becomes increasingly critical as density and diversity increases. For this reason, the ULDA guideline provides detailed guidance in relation to particular elements of built form, such as setbacks, car parking, access, site coverage, building entrance, articulation, privacy and fencing. The dwelling type examples in the guideline demonstrate some of the dwelling design options that can be achieved using a variety of lot sizes. While the two-storey dwellings may not be appropriate for older retirees and frail elderly people, the dwelling types provide a framework for affordable options suitable for a range of other groups, including couple families without children, couple families with children, and lone person households.

APPENDIX C: OVERVIEW OF PLANNING POLICY FRAMEWORK Maranoa Region Planning Policy Framework This section reviews the current planning policy framework which underpins land and housing supply in the Maranoa region. In particular, they provide guidance as to local and state governments intentions for the extent, location and type of housing to occur in each area. This assessment forms the basis for understanding implications for the land and housing markets which is addressed in section 4.2 of this report. Growth projections used for both regions by the planning authorities anticipate the potential pressures created by newly establishing industries, although there is some mismatch between the age of the current planning documents and the most recent projections available (indeed updated population projects are expected to be released by OESR in early 2011). The planning scheme for Roma provides areas for substantive growth of this community. It also supports diversification of housing types to meet future community needs, and this is also being addressed by the ULDA in the development areas for which it is responsible. In Maranoa, growth will predominantly occur within the environs of Roma.

Regional Plans and Strategies Maranoa – Balonne Regional Plan A statutory regional plan has been prepared for the Maranoa-Balonne region that applies to the amalgamated Maranoa Regional Council and surrounding areas (Department of Infrastructure and Planning, 2009). The regional activity centre network contained in the plan establishes Roma as the only major regional activity centre in the plan area, which is the highest order centre in the network hierarchy. The next largest centre is St George, which is identified as a major rural activity centre. Roma, as a major regional activity centre, is characterised in the plan as: the secondary administration focus that supports administrative activities, particularly by state

government, delivered from the principal regional activity centre of Toowoomba; being the focus for several resource development company operations; providing for banking and financial services delivered from Roma; and a focal point for sub region and regionally significant concentrations of employment and urban

development. As an indication of the size of Roma compared with other centres in the region, a table of estimated resident population of key settlements is provided below.

Population on Key Centre in Maranoa Balonne Region Source: Department of Infrastructure and Planning, 2009

The plan includes land use policies for housing and accommodation, which identifies a need for affordable housing options to address the widening gap in affordability and availability of housing in the region. Specific issues identified include lower quality and quantity of rental housing and poor maintenance standards. Specific to housing demand from resource companies, the plan states that ‘transient housing needs, largely associated with agriculture and energy developments, should be met in a manner that fulfils regional needs, considers benefits beyond project time frames and compliments, rather than competes with, existing regional housing supplies. Draft Surat Basin Regional Planning Framework The State Government released a drat framework for the Surat BASIN in November 2010. This framework anticipates significant growth in coming years as the opportunities presented by the region’s natural resources are realised. The Draft Surat Basin Regional Planning Framework, which builds upon the Surat Basin Future Directions Statement. The aim of the framework is to ‘manage growth, protect the environment and respond to competing land uses’ (DIP 2010c). The figure below is taken from the regional planning framework. It identifies that the key location in the region for residential growth is Roma, with other centres designated in Mitchell, Wallumbilla and Injune. Population growth through the Surat Basin (excluding FIFO workers) is estimated to be approximately 0.5% per annum to 2031. In addition, employment of FIFO transient workers by resource companies is expected to produce temporary and variable impacts across the region.

Maranoa Regional Council LGA Snapshot

Source: DIP 2010c Draft Resource Town Housing Affordability Strategy (Surat Basin) The Draft Resource Town Housing Affordability Strategy (has been prepared by Growth Management Queensland, within the Department of Infrastructure and Planning (DIP 2010d), as an initiative of the Surat Basin Future Directions Statement. It provides policies, programs and actions to assist in optimising housing affordability in the Surat Basin region. The strategy is based around the achievement of four broad goals, which are: diversity – choice of dwelling types is available to meet the needs of different household types; design – includes principles of universality, energy efficiency, and resource conservation to

promote long term living affordability; affordability – is optimised through targeted housing supply and demand actions; and responsiveness – development responds effectively to changing housing needs. At the more detailed strategy level, the plan focuses on: optimising housing supply to remove barriers to timely development and affordability; responding effectively to demand factors; and consolidating coordinated governance arrangements. Urban Land Development Authority The ULDA facilitates the development of declared urban development areas (UDAs), and is responsible for planning and assessing development applications in these areas. In some cases it also acts as the developer. The development of UDAs enables land, and housing products, to be provided to the market quickly whilst delivering high quality urban development outcomes based on best practice affordable and sustainable urban design.

A UDA has been declared in Roma, as well as a number of other locations throughout Queensland. The Roma UDA is described in more detail below. The Roma UDA, declared on July 30 2010, is located 1.5 km to the west of the Roma town centre, close to the Roma Hospital. The UDA occupies 20 hectares. The eastern portion (six hectares) is zoned residential or recreation and the western portion comprises of a large road reserve corridor. A proposed development scheme has been prepared and is currently subject to public notification, which ends in November 1, 2010. (ULDA 2010b). The Roma UDA was declared because of a lack of housing diversity in the town and housing becoming less affordable. The UDA is intended to help to ensure a range of housing types are available for purchase at affordable price points. (ULDA 2010b) It is understood from consultation that some of these lots will come on line by May 2011.

Urban Development Area, Roma

Source: ULDA 2010b

Roma UDA Structure and Zoning Plan

Source: ULDA 2010b The draft development scheme for the Roma UDA provides a zoning plan for the area, as shown in the figure above. As is the case for the Clinton UDA, the scheme includes an intent statement for the residential zone that allows for densities of up to 30 dwellings per hectare. Local Government Planning Schemes

There are five planning schemes from the former LGAs in the Maranoa region used to regulate development in the Maranoa region. These schemes are:

Roma Town Planning Scheme 2006; Bendemere Shire Council Planning Scheme 2006; Booringa Shire Planning Scheme 2006; Waroo Shire Council Planning Scheme 2004; Bungil Shire Council Planning Scheme 2006.

Only the Roma scheme is addressed further as housing impacts associated with the GLNG project are expected to be limited to the town area.

The strategic framework of the Roma planning scheme requires that residential development is located within the residential zone, as indicated by the zoning map provided in the figure below. In addition, at the strategic level, the planning scheme stipulates a minimum lot size of 800m2 and average lot size of 1,000m2.

The desired environmental outcomes (DEO) relevant to residential development include:

rural residential and urban residential development occurs in distinct localities that provide a sense of community, amenity, services, and a safe, affordable living environment, whilst maintaining the rural amenity of the Town Area; and

the range of housing types, services and facilities meets the needs of the community and other uses.

Former Roma Shire Zoning Map

Source: Maranoa Regional Council 2010 The zoning map shows that there are a number of residential zoned and rural residential zoned areas in and around the town that are capable of further development (in addition to the UDA described above). The capacity of this land is discussed further in section 4.2. Summary and Implications

Current planning documents underpin land and housing supply in the Maranoa region, and provide guidance as to the extent, location and type of housing to occur in the area.

While there is some mismatch between the age of the current planning documents and the most recent projections available, the planning documents provide for substantial growth for Roma.

The declaration of a large UDA in Roma, will assist in providing housing affordability and diversity in this key centre (lots to come on line in early 2011).

Growth will predominantly occur within the environs of Roma.

Gladstone Planning Policy Framework This section reviews the current planning policy framework which underpins land and housing supply in the Gladstone region. In particular, they provide guidance as to local and state governments intentions for the extent, location and type of housing to occur in each area. This assessment forms the basis for understanding implications for the land and housing markets addressed in the report. Growth projections used for both regions by the planning authorities anticipate the potential pressures created by newly establishing industries, although there is some mismatch between the age of the current planning documents and the most recent projections available (indeed updated population projects are expected to be released by OESR in early 2011). The planning scheme for Gladstone provides areas for substantive growth of this community. It also supports diversification of housing types to meet future community needs, and this is also being addressed by the ULDA in the development areas for which it is responsible. In the Gladstone region, growth will be concentrated in outer areas of the former Gladstone City and the former Calliope Shire, particularly Glen Eden, Clinton, Kirkwood and Calliope. There is also potential for medium density and mixed use in activity centres. Growth in Boyne Island/Tannum Sands may be constrained by environmental factors.

Regional Plans and Strategies Central Queensland Regional Plan A non-statutory regional plan was prepared for the Central Queensland region in 2002, which includes the Gladstone Regional Council area along with four surrounding LGAs, but excludes the area formerly located in the Miram Vale Shire. Although the plan is now out dated, the key growth patterns envisaged in the plan are generally still applicable. In terms of Gladstone’s role within the Central Queensland region, three main growth areas were identified as: the major urban areas of Rockhampton and Gladstone; coastal areas of Yeppoon to Emu Park and Boyne Island / Tannum Sands; and key regional centres of Biloela and Emerald. In respect of Gladstone’s role as a major urban area, the plan states that ‘Gladstone’s prosperity stems from its port, infrastructure and the level of major industrial development both already built and currently planned’ (Department of Local Government and Planning, 2002: 29). Both the Rockhampton and Gladstone urban centres are referred to in the plan as being ‘characterised by significant populations, very high levels of investment (existing, imminent and planned) and the availability of a wide range of higher order goods and services’. In addition, the future expansion of these areas is only considered desirable where ‘ it will not prevent access to exploitable natural resources, unless there is an overriding community demand to forgo access to those resources’ . At the time the plan was written, the key industrial growth area within the GRC, was identified as the Gladstone State Development Area.

Urban Land Development Authority The ULDA facilitates the development of declared urban development areas (UDAs), and is responsible for planning and assessing development applications in these areas. In some cases it also acts as the developer. The development of UDAs enables land, and housing products, to be provided to the market quickly whilst delivering high quality urban development outcomes based on best practice affordable and sustainable urban design. A UDA has been declared at Clinton (in Gladstone), as well as a number of other locations throughout Queensland. The Gladstone UDA is described in more detail below. The 26 hectare Clinton UDA is located six kilometres south-west of the Gladstone CBD, near Clinton State School. The UDA was declared on April 1 2010 and the public notification period was completed in July 2010. The submissions report and development scheme have been submitted to the Minister for Infrastructure and Planning. (ULDA 2010a) The Clinton UDA is intended to assist in meeting housing pressures in Gladstone from the growth in the resource sector as well as respond to what is seen as a clear lack of smaller types of housing in Gladstone which contributes to a lack of affordability. (ULDA 2010a) It is understood from consultation that these lots will be developed by early 2011. The draft development scheme for the Clinton UDA provides a zoning plan for the area, as shown in the figure below. The intent statement for the residential zone allows for densities of up to 30 dwellings per hectare.

Urban Development Area, Clinton, Gladstone

Source: ULDA 2010a

Clinton UDA Structure and Zoning Plan

Source: ULDA 2010a Local Government Planning Schemes The Gladstone Regional Council area currently has three separate planning schemes that reflect the former local government boundaries of the previous Gladstone City, Calliope Shire and Miriam Vale Shire. These planning schemes provide strategic direction for the future growth of each of the former local government areas. The following provides an overview of the key provisions of each of these planning instruments as they relate to overall settlement patterns and centre hierarchies and the implications this may have upon future growth and access to facilities and services. The Miriam Vale communities are not expected to experience direct impacts from the GLNG project, given their remoteness from Curtis Island. However, an overview is provided below. Former Gladstone City Council The current planning scheme for the former Gladstone City Council area, referred to as The Gladstone Plan, was formally endorsed on 29 December 2006. Specific desired environmental outcomes relevant to the settlement structure, residential and industrial development with the form6r Gladstone City are summarised as: maintain Gladstone role as the industrial centre for Queensland and the principal centre for the

Gladstone, Calliope, Miriam Vale region; achieve a balance between maintaining Gladstone’s role as an economic centre and providing a

complete ‘home’ for residents, characterised by a range of affordable housing choices;

future urban growth will be consolidated into existing urban areas able to be easily serviced by infrastructure; and

preferred areas for future greenfield development are located adjacent to Kirkwood Road. The current zoning plan for Gladstone City is shown in the figure below. As is evident from the above map, and as a result of the location of the harbour and CBD, the city has an A-frame structure whereby the CBD is at the apex of the ‘A’ with residential areas radiating to the south. This structure is quite different to the concentric structure of typical cities and towns. Access to Curtis Island will be through this apex. The planning scheme identifies the major industrial areas (including the port, State Development Area and general industry areas), which lie to the north, east and west of the city area. The urban form includes buffer/transition zones from these areas to urban residential areas by way of rural and open space zonings. The majority of industrial land is in proximity to the port itself, or in locations accessible by rail and road.

Zoning Map for former Gladstone City

Source: Gladstone City Council, 2006 Residential development is emerging in residential ‘nodes’ located centrally (by infill development and redevelopment of the older sections of the city) and to the south and west. Sprawling residential areas are interconnected via arterials to the south-east and south-west. The western portion of residential development is bound to the north by major industry, with no buffers apparent. The traditional Gladstone CBD/Gladstone Valley in the north/north east section of the city is somewhat distanced from the majority of residential development. Newer residential areas to the west and south are serviced by commercial precincts at West Gladstone and Kin Kora both located on the south-western arterial route.

A large area to the south of the city has been designated for future growth that is identified as the Kirkwood Road South Precinct. A structure plan prepared by SKM in 2004 identified the Kirkwood Road South precinct as a suitable broadhectare area for redevelopment for more intensive land uses, potentially including: development of the site for more intensive populations within the next 5-10 years (from 2004); approximately 2,455 lots within the area; an estimated population of approximately 6,000 people; local open space and recreation areas; and a small scale neighbourhood shopping centre. In addition to the large urban expansion area at Kirkwood Road, land zoned for urban expansion purposes is also found to the north and south of Glen Eden (on the south eastern side of the city) and near West Gladstone, between Dawson Highway and Glenlyon Road. Former Calliope Shire The former Calliope Shire surrounds Gladstone City to the north, south and west. Northern portions of the former shire contain land in the State Development Area, utilised for major industry. The planning scheme, prepared in 2007, seeks to provide a sustainable solution for balancing urban, rural and major industry uses. The figure below provides the strategic framework, which identifies the preferred settlement pattern for the former shire. Urban development and infrastructure has been predominantly directed to the urban areas, particularly Boyne Island and Tannum Sands, and an urban expansion area is identified in Calliope and to the south of Tannum Sands.

Strategic Framework for former Calliope Shire

Source: Former Calliope Shire Council, 2007 Boyne Island / Tannum Sands is approximately 20km from the Gladstone CBD (the south east) and is identified as the principle urban district in the former shire and a dormitory to the major commercial and industrial enterprises in the Gladstone – Calliope region. Similarly, Calliope is also approximately 20km from the Gladstone CBD (to the south). The overall outcomes in the planning scheme for the Calliope locality indicate a range of housing and living alternatives and consolidation of the Calliope township is envisaged for the area.

The scheme seeks to achieve the following desired environmental and overall outcomes in relation to urban and residential development: consolidation of urban development which maximises the sustainability of commercial,

educational, health and other community services and recreational and open space facilities; facilitation of high standards for all development including access to social infrastructure; a range of safe, secure, appropriate and affordable housing choices provided in accessible

locations and suitable for the climate and the needs of the ever-changing demography of the Shire;

convenient access to a range of community facilities and services including health care, education, shopping and business services, cultural and entertainment facilities, and recreation and sporting facilities;

consolidation of land uses, grouped into areas with similar infrastructure needs. Former Miriam Vale Shire

The former Miriam Vale Shire is predominantly rural, with key settlements identified as Agnes Water and Miriam Vale, along with the coastal villages of Turkey Beach and Seventeen Seventy, and the rural villages of Bororen, Rosedale and Lowmead. The new IPA planning scheme for the former Miriam Vale Shire was formally adopted on 27 February 2009. The strategic components of the scheme outline the role for each of the townships as follows:

Agnes Water – to fulfil the role of a district centre and contain the majority of local commercial, retail and health services; along with providing a tourism/visitor function. Future residential growth is to be predominantly in the form of low density residential with some three-storey units and consolidation of rural residential development in existing locations (Ranches Estate, The Cove and Deepwater). A new district centre is identified at the western entry of Agnes Water along Round Hill Road to provide offices, health care and local shopping;

Turkey Beach (coastal village) – to retain the established fishing community and include small-scale infill development where required. Future growth areas may be identified through detailed site investigation;

Miriam Vale – any further growth to be consolidated within the established urban area;

Seventeen Seventy (coastal village) – to provide localised commercial growth and particularly the expansion of tourism operations where necessary. Infill residential development only, for either permanent or holiday accommodation; and

Bororen, Rosedale and Lowmead (rural villages) – to be retained as rural service centres and provide low-order commercial facilities.

Desired environmental outcomes in the planning scheme reflect strategic intentions with respect to the consolidation of existing urban areas and reinforcement of the character and function of the townships. While influenced by regional growth, the urban areas of the former Miriam Vale Shire do not have a strategic role in expansion of the Gladstone City urban area.

Zoning Map for former Miriam Vale Shire

Source: Miriam Vale Shire Council, 2009 Emerging Planning Policy In response to the requirements of the new Sustainable Planning Act, Gladstone Regional Council has commenced the development of a new planning scheme that will provide consolidated policy directions for the amalgamated local government area. Early consultation and directions documents from that process are outlined below. Our Place, Our Plan ‘Our Place, Our Plan’ is a discussion paper (GRC, 2010) aimed at further developing the issues raised and providing direction for the new planning scheme. The strategic framework section of the document provides a review of PIFU’s population forecasts for the region which will be used as a basis for the planning scheme preparation. However, the distribution of the population into catchments (prepared by PIFU for the Social Infrastructure Strategic Plan) is likely to be adjusted in certain areas. For example, Council’s view is that the projected growth for Boyne Island, Tannum Sands is not likely to be achieved due to ‘environmental constraints and the relative remoteness of suitable alternative land from services’. The additional growth is likely to be directed into Glen Eden, Clinton, Kirkwood and Calliope. The report notes that traditional forecasting methods are not as accurate in the Gladstone region due to the pattern of Gladstone’s industrial growth and the development of major industries. Accordingly, the Council proposes to review the projections annually to ensure sufficient land is available to meet the needs of emerging industries.

Lot creation and dwelling construction are identified as an issue that may constrain the supply of land and housing. However, the document notes that the current development industry in Gladstone has capacity to produce approximately 400-500 lots and 700 dwellings per annum (discussed further in section 5.2 of the report). The proposed settlement pattern strategy is to optimise consolidation and infill development, balanced with a more market responsive approach to land release. Strategies being proposed for specific areas are summarised below.

PIFU Population Projections 2006 – 2031 (based on medium series)

Source: Gladstone Regional Council 2010

Summary of GRC Proposed Strategies for Key Settlements

Centre / Settlement Proposed Strategies

Gladstone Maintain Gladstone as the principal administrative and commercial centre

Potential for additional land release along Glenlyon road will be investigated

Potential for medium density and mixed use will be investigated in activity centres

Boyne Island / Tannum Sands Environmental constraints over crown land south of Tannum Sands High School to be negotiated with DERM with a view to bringing land into the urban footprint

Calliope The planning scheme will seek to promote growth in Calliope to an additional 15,000 people to 2031

Agnes Water / Seventeen Seventy

No extension to the urban footprint will be proposed Zoning of ‘Beaches of 1770’ and ‘Waterfront’ revert to low density

residential Further subdivision and medium density development will not be

supported in 1770

Villages (Benaraby, Miriam Vale, Mount Larcom, Bororen)

Existing urban footprints will be maintained

Baffle Creek – Rules Beach No provision will be made for low density residential until infrastructure can be provided

The existing rural designation will remain

Turkey Beach – Hummock Hill Island – Rodds Bay

No extension to the Turkey Beach urban footprint will be made Urban footprint extensions will not be made for the Hummock Hill

Island and Seaview Beach proposals

Regional Growth Issues Report In addition to ‘Our Place. Our Plan’, Council has prepared an internal ‘Regional Growth Issues Report’ (May 2010) aimed at appraising potential issues arising from the next period of major industrial growth. The report provides: a snapshot of residential development (i.e. capacity to construct dwellings and deliver

residential allotments) – this is incorporated into the discussion in section 5.2; cumulative workforce scenarios (as understood at the time) – discussed in section 2 of this

report; and an overview on Council’s position on the impacts and issues to be considered in the preparation

of housing strategies by major industry proponents (which were largely taken up by the Coordinator General’s report on the GLNG EIS).

The report includes a list of existing residential approvals that provide an indication of locations of growth. These locations are identified as: Kirkwood Road Precinct – possibly over 3000 lots approved throughout Little Creek, Vantage,

Emmadale Heights, Forest Springs, Davies and Oasis / Cove; Glen Eden – up to 985 lots approved in Stoneybrook, Marist Fathers and Jadewell / Cougar; Calliope – 710 residential lots including 296 rural residential lots at Panorama, Calliope Vista,

The Ridge, Calliope Ventures, Country Club, Golf Club Estate, Tarrawonga Drive; and Boyne Island / Tannum Sands – 2000 lots (preliminary approval) at Tannum Waters. In addition, Council has approved development applications for over 200 units, mainly in the Gladstone CBD. Summary and Implications

Current planning documents underpin land and housing supply in the Gladstone region, and provide guidance as to the extent, location and type of housing to occur in the area.

While there is some mismatch between the age of the current planning documents and the most recent projections available, the planning documents provide for substantial growth for Gladstone.

Recognising the impact of Gladstone’s industrial growth and the development of major industries on traditional forecasting methods, Council proposes to review the projections annually to ensure sufficient land is available to meet the needs of emerging industries.

The declaration of a large UDA in Clinton, will assist in providing housing affordability and diversity in this key centre (lots to come on line in May 2011).

Growth will be concentrated in outer areas of the former Gladstone City and the former Calliope Shire, particularly Glen Eden, Clinton, Kirkwood and Calliope. There is also potential for medium density and mixed use in activity centres.

glng integrated project housing strategy · 9 of the cg report states that an integrated project...

Documents