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

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

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

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 SMEC Report “In Stream” dam. 15km east of Hughenden. Report based on variation of SMEC with m 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 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 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 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 LONG-TERM POPULATION CHANGES Census CountEst Res Pop’n Flinders RichmondMcKinlayCloncurry TotalFlindersRichmondMcKinlayCloncurryTotal Source : Australian Bureau of Statistics – Census & Other Data.

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

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 AREA OF IRRIGATED CROPPING IN THE FITZROY BASIN, 2001 Isaac- Connor Nogoa- Mackenzie- Comet FitzroyDawsonCallideTotal Ha Cotton020, ,402028,373 Cereals3603, ,2691,1478,544 Pastures ,6261,9271,3725,507 Fruit Table grapes Vegetables a Sugar cane Other crops11,920931, ,693 Total82827,8552,74614,2852,88748,601 a for human consumption. Source : CIE 2001.

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$40,000N/a Total GVP$ m$ m$ m$ m$ m O’Connell Cr Area4,620 ha2,310 haN/a770 ha7,700 ha GVP per ha$2,600$10,000N/a$40,000N/a Total GVP$ m$ m$ m$ m$ m

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, Estimated Expenditure by Recreation Fishers, Dams South Burnett, Central Q’ld – 2003/04

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

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

17 WorkforceCurrent Direct Increase Flow- on Total Increase Ongoing Total % Increase Mt Beckford (Flinders) % O’Connell Ck (Richmond) % Combined Mt Beckford & O’Connell Ck %

18 PopulationCurrentAdditionalOngoing % Increase Mt Beckford (Flinders) % O’Connell Ck % Combined Mt Beckford & O’Connell Ck %

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

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  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