1. FLINDERS RIVER WATER DEVELOPMENT FORUM HUGHENDEN November 2008 Social & Economic Benefits Study Presentation by W S (Bill) Cummings

2. 2 BILL CUMMINGS Cummings Economics –– economic aspects. JEFF BENJAMIN North Australia Water Strategies – water aspects. JOHN O’HALLORAN – social aspects STUDY TEAM

3. 3 3.7 MEGALITRES A YEAR – SUBSTANTIAL CATCHMENT IN STATE AND NATIONAL TERMS. ONLY A SMALL FRACTION BEING USED. FLINDERS RIVER

4. 4 Expansion of small scale usage for irrigation. Including artesian, farm dams and small instream extraction. RECENT YEARS: TWO MAJOR SCHEMES PROPOSED: MT BECKFORD – HUGHENDEN. O’CONNELL CR - RICHMOND.

5. 5 SMEC Report 2003. “In Stream” dam. 15km east of Hughenden. Report based on variation of SMEC with 30 - 35m high “in stream” embankment : embankments to Mt Arthur and across Eight Mile Ck. MT BECKFORD: O’CONNELL CREEK: Offstream storage. Flood harvest. Gravity diversion from river. 5m sheet pile weir in the river and excavated channel to storage.

6. 6 CAPITAL COST & WATER DELIVERED Mt BeckfordO’Connell CkTotal Water Impondment110,000 ML192,000 ML302,000 ML Water Yield66,000 ML55,500 ML121,500 ML Water Delivered53,000 ML44,400 ML97,400 ML Estimated Capital Cost$68 m$67 m$135 m

7. 7 YIELD & MEAN ANNUAL FLOW Mt Beckford O’Connell Ck Total Water Yield66,000 ML55,000 ML121,500 ML Mean Annual River Flow at Location 132,000 ML (Hughenden) 533,600 ML (Richmond) 533,600 ML (Richmond) % Yield of Mean Annual Flow50%10%23% Mean Annual Runoff at Mouth3,857,000 ML % Yield of Mean Annual Runoff at Mouth 1.7%1.4%3.2%

8. 8 EST. WORKFORCE STRUCTURE McKinlay, Cloncurry, Richmond & Flinders Shires Pastoral/Agricultural1,20025% Mining & Mineral Processing85018% Servicing East West Transport links, especially the Railway, say 4008% Tourism Services (accommodation, cafes, restaurants, some transport, retail, etc.), say 2505% Sub Total – Base Industries2,70056% Support Services2,10044% Total4,800100%

9. 9 LONG-TERM POPULATION CHANGES Census CountEst Res Pop’n Flinders RichmondMcKinlayCloncurry TotalFlindersRichmondMcKinlayCloncurryTotal 1947 331014781633626712688 1954 3293158616471051417040 1961 395316472134486912603 1966 371618281701334810593 1971 30191409158236239633 1976 25751442146840361082129801460144040109890 1981 2740138314783647924827301360149037909370 1986 2801119814463194863928771230139032108707 1991 2491110813063375828026661204121931358224 1996 2232117914433898875222341129115731937713 2001 2191105113854828945520901043113435057772 2002 20721152107038678161 Source : Australian Bureau of Statistics – Census & Other Data.

10. 10  THREATS TO RAILWAY EMPLOYMENT.  MINING, MAINLY FIFO.  LIMITED OPPORTUNITIES TOURISM.  MAJOR STIMULUS NEEDED.

11. 11 Small but growing number of local irrigators. Rail links to largest general cargo port, North Australia. Tropical agricultural technology improving. FACTORS FAVOURABLE TO IRRIGATION:

12. 12 AREA OF IRRIGATED CROPPING IN THE FITZROY BASIN, 2001 Isaac- Connor Nogoa- Mackenzie- Comet FitzroyDawsonCallideTotal Ha Cotton020,8301417,402028,373 Cereals3603,5941743,2691,1478,544 Pastures1434391,6261,9271,3725,507 Fruit1685114860886 Table grapes02932440321 Vegetables a09457522212903 Sugar cane32200530375 Other crops11,920931,3233563,693 Total82827,8552,74614,2852,88748,601 a for human consumption. Source : CIE 2001.

13. 13 ESTIMATED IMPACT OF IRRIGATION SCHEMES Gross Value of Production Cotton Cattle Fodder Feedlotting Additional (Half of Fodder) HorticultureTotal Mt Beckford Area5,460 ha2,730 haN/a910 ha9,100 ha GVP per ha$2,600$10,000N/a$40,000N/a Total GVP$14.200 m$27.300 m$23.200 m$36.400 m$101.100 m O’Connell Cr Area4,620 ha2,310 haN/a770 ha7,700 ha GVP per ha$2,600$10,000N/a$40,000N/a Total GVP$12.000 m$23.100 m$19.600 m$30.800 m$85.500 m

14. 14 OTHER SOURCES OF INCOME COMMUNITY RECREATIONAL TOURISM BENEFITS $10m TOURISM BENEFITS $10m DamCapacity Annual Expenditure Generated Av Trip Length Av Exp per Group Bjelke Petersen (Murgon) 125,000 ML$3.1 m } 240} $390 Boondooma (Proston) 212,000 ML$3.4 m Fairbairn (Emerald)1,440,000 ML$5.2 m701$1,250 Source : Press Statement – Q’ld Minister for Primary Industries, 2004. Estimated Expenditure by Recreation Fishers, Dams South Burnett, Central Q’ld – 2003/04

15. 15 FLINDERS SHIRE+20% RICHMOND SHIRE+40% CONSTRUCTION PHASE Workforce:

16. 16 IMPACTS ON AGRICULTURE GVP 2001 GVP Scheme Increase GVP Empl 2001 Empl Scheme Increase Empl Mt Beckford$64 m$101 m+158%360600+167% O’Connell Creek$36 m$85 m+236%200430+215% Both Schemes On Flinders & Richmond Shires Combined $100 m$186 m+186%5601,030+184% On Flinders River Catchment Area $288 m$186 m+68%1,1731,030+88%

17. 17 WorkforceCurrent Direct Increase Flow- on Total Increase Ongoing Total % Increase Mt Beckford (Flinders) 10606003609602020+91% O’Connell Ck (Richmond) 4804302606901170+144% Combined Mt Beckford & O’Connell Ck 1540103062016503190+107%

18. 18 PopulationCurrentAdditionalOngoing % Increase Mt Beckford (Flinders) 220017303930+79% O’Connell Ck105012402290+118% Combined Mt Beckford & O’Connell Ck 325029706220+91%

19. 19 Populations declining Incomes above state average Housing costs lower Unemployment low Indigenous Flinders 7% Richmond 3% Average age 35 High Australian born Education levels lower High proportion of managers and admin High proportion agriculture & transport SOCIAL STRUCTURE

20. 20  Small number of properties flooded  Sites close to towns already existing infrastructure & services  Found very strong support in communities  Improved business viability, services, new recreational benefits  Consistent with community capacity building initiatives  Indigenous organisations support SOCIAL IMPACTS

21. 21 Social infrastructure (health, education, public safety, transport), capacity to absorb increase in population especially in terms of available buildings. Lag time in government agency responses need to be addressed. Address construction and seasonal worker fluctuation. HUGHENDEN & RICHMOND

22. 22  LAND AND DWELLING PRICES LOW.  FLINDERS SEWERAGE UPGRADE NEEDED OTHERWISE NO CONSTRAINTS TO EXPANSION.  PUBLIC HOUSING – TEMPORARY ACCOMMODATION DURING CONSTRUCTION.

23. 23 Strong local job opportunities. Existing local skills. Vacant land and buildings. Strategy for technical expertise & support for irrigators. Report lists strategies – maximise benefits, minimise any negatives.

24. 24  NOT A GREAT DEAL IN BASIC SITUATION.  INCREASED COSTS OF FUEL, INPUTS AND EXCHANGE RATE, BUT RECENT CHANGES.  FUEL PUMPING COSTS HIGHER.  BIOFUEL CROPS (?)  SECOND CROPS (?) CHANGES SINCE THEN

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