BROKEN HILL LONG TERM WATER SUPPLY PROJECT - Social impact assessment Prepared for Public Works Advisory
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BROKEN HILL LONG TERM WATER SUPPLY PROJECT Social impact assessment Prepared for Public Works Advisory
Broken Hill Long Term Water Supply Project CONTENTS EXECUTIVE SUMMARY .............................................................................................. 3 INTRODUCTION .......................................................................................................... 8 DEFINING THE COMMUNITY OF INTEREST ............................................................. 9 METHODOLOGY........................................................................................................ 10 SOCIOECONOMIC PROFILE - BROKEN HILL LOCAL GOVERNMENT AREA ......... 13 SOCIOECONOMIC PROFILE - WENTWORTH LOCAL GOVERNMENT AREA ........ 22 COMMUNITY INTERVIEWS....................................................................................... 31 ECONOMIC IMPACTS OF PIPELINE CONSTRUCTION ........................................... 40 SUMMARY ................................................................................................................. 41 CONCLUSION ............................................................................................................ 43 RISK MITIGATION RECOMMENDATIONS ................................................................ 44 Acknowledgement WRI wishes to acknowledge the assistance provided by Public Works Advisory, Broken Hill City Council and other project participants. Disclaimer Any representation, statement, opinion or advice, expressed or implied, in this publication is made in good faith, but on the basis that the Western Research Institute (WRI) or its employees are not liable (whether by reason of negligence, lack of care or otherwise) to any person for any damage or loss whatsoever, which has occurred or may occur in relation to that person taking (as the case may be) action in respect of any representation, statement or advice referred to above. Contact Details Street Address Mailing Address Ph: 02 6333 4000 Level 1 126 William St PO Box 9374 Email: team@wri.org.au Bathurst NSW 2795 Bathurst NSW 2795 Website: www.wri.org.au Prepared for Public Works Advisory 2 December 2016 16 019 Broken Hill Long Term Water Supply 2
Public Works Advisory
EXECUTIVE SUMMARY
Over recent years, Broken Hill has faced uncertainty over the security of its water supply. Given the limitations
of the existing water supply system in terms of water availability, quality, and ongoing operability, Water NSW
is proposing a new long term solution to Broken Hill’s water supply issues.
The Broken Hill Long Term Water Supply business case was approved in June 2016 to develop new water supply
infrastructure to secure the long term water supply requirements of Broken Hill and surrounding communities.
The proposed works include the sourcing of water from the Murray River near Wentworth, to be pumped via a
270 km pipeline to Broken Hill’s existing Water Treatment facility and Stephens Creek reservoir.
Public Works Advisory engaged WRI to prepare a Social Impact Assessment for the project. The aim of the
assessment was to understand the potential social impacts of securing Broken Hill’s water supply and the
economic impact of the construction of the proposed development. WRI undertook 15 interviews with key
stakeholder organisations and individuals to gauge the social impact of securing Broken Hill’s water supply. In
addition, economic impact modelling was undertaken to assess the impact of the pipeline construction in the
Broken Hill and Wentworth LGAs.
The overwhelming feedback from the community engagement was that the community expects strong positive
impacts for the community from securing the town water supply in Broken Hill. Issues experienced in recent
years brought on by the lack of water security and poor water quality were seen as having a range of negative
social, health, land use, employment and economic impacts. Resolving these issues by delivering a secure
supply of water was seen as having many positive impacts.
The key impacts arising from securing Broken Hill’s water supply included:
Positive Impacts
Foundational Need
The community expressed the obvious and powerful message that water is a fundamental need of human
occupation. A secure town water supply is perhaps even more of a necessity in an arid region, without nearby
natural water sources.
Social Impacts
Positive social impacts were expected from securing Broken Hill’s water supply through mitigating community
friction over water issues and providing for greater social cohesion. Recent water restrictions were felt to have
had negative social impacts, as community members have been forced to deal with the issue of scarcity and
tightening water management rules. This has raised the level of social friction and led to heightened levels of
negative media and social media, with some community members feeling under surveillance over water
restrictions, and reports of communities turning on each other and ‘dobbing in’ individuals who are not abiding
by water restrictions. It was also highlighted that access to secure water had the ability to create a more
cohesive community, by allowing for common recreational activities, such as swimming and relaxing in
recreational water spaces, and allowing for sporting and other community events utilising green spaces.
A clear message received throughout community interviews was that resolving water security and quality
issues would increase general wellbeing in a myriad of smaller, almost hidden, ways. Many people are no
longer drinking tap water because they thought it tasted like ‘dirt’. One interviewee’s wife was unable to keep
certain kinds of fish as the tap water was too saline. Certain sports teams were unable to play a football match
on their home ground as it was closed due to water restrictions. One individual felt enough social pressure over
watering his lawn that he was moved to put signs up to say that he was using tank water. Others were moved
to vent their concerns over water in public forums and social media. Small household appliances, including air
conditioners and irons, across the region were wearing out prematurely due to mineral build up or corrosion.
3Broken Hill Long Term Water Supply Project Some home owners fretted about filling their pool, whilst others were concerned over getting ‘dobbed in’ by their neighbours if they transgressed water restrictions. All of this feedback suggests that water security and quality issues are having significant social/personal impacts that are difficult to quantify. Many of these have no monetary value and may be experienced as stress, discontent or come at a financial cost. It is clear from this feedback that greater water security and quality would make a very real impact on the quality of life for Broken Hill residence in many small ways. Health Impacts A more secure water supply has potential impacts on health and health administration in the region. Broken Hill is dealing with environmental and legacy industrial issues that have resulted in heightened blood lead levels for a significant portion of the population. These issues are the focus of the Broken Hill Environmental Lead Program. Creating green spaces and hosing down household/outside areas is an important part of the blood lead level mitigation strategy to contain child blood lead levels. Other health impacts were linked to low water security and poor water quality, including mental health issues and skin problems. Furthermore, these issues have had real and potential impacts on the administration of public health in the region. For example, water issues have increased operational costs for the Far West Local Health Service, who had to install a reverse osmosis water treatment plant to combat water quality issues. The potential impact of water issues leading to a smaller population also threatens the ongoing operations of the Local Health Service, which is dependent on a minimum population for their operations to be economic. If the population was to fall below the 15,000 threshold, it is likely that these services would be amalgamated into another region, or ceased altogether. General Land Use and Amenity The proposed pipeline was also seen as having positive impacts on a number of general land use and amenity issues. The principal impact of securing the Broken Hill water supply is that it will assist to regenerate green spaces, allowing for greater amenity with private gardens and public spaces such as sports fields, public parks and road sides to be watered and looking green and well kept. A further issue related to the ability of households to fill pools, which can assist in providing recreation and alleviating the hot and arid weather. Mitigating these issues was seen as an important way to increase the amenity of living in an arid climate, with positive impacts on wellbeing. Economic Impacts The economy was also seen as a very significant beneficiary of securing the local water supply. Again, interviews highlighted that access to water is a foundational need for businesses. Water is required for their operations and more widely, water is necessary to sustain the populations that these businesses serve. The impact of water supply on local business was summed up by one interviewee, saying that “It’s simple, you need to be able to turn the tap on and get water”. It was also found that businesses are impacted by water quality. Business infrastructure has been deteriorating at a faster rate due to corrosion and mineral build-up, leading to higher business costs. Similarly, other business costs have been rising, with one anecdote from an accommodation provider that they are spending significantly more on cleaner’s wages and cleaning products to manage water based mineral build up on bathroom services. In addition to higher costs, tourism businesses have experienced lower levels of revenue due to water security and quality issues, owing to significant coverage of negative water issues in the media and on social media. It was felt that this coverage has prevented visitors from coming to the region. An interview with staff from the Broken Hill Visitor Information Centre highlighted that they had fielded in excess of 130 calls from concerned travellers, who wanted to know if there was sufficient water in Broken Hill for them to visit and if they needed to bring water with them. Whilst some of these concerns were ameliorated over the phone, it was believed that a significant number of potential visitors did not call and chose not to 4
Public Works Advisory
come, with impacts on the tourism revenues being generated in the region. For some tourism businesses, there
has been a more direct impact of water issues, with the local golf course suffering declining patronage and
revenues due to water issues impacting on the quality and availability of their greens and fairways.
Employment
The impact of water issues on businesses also has a direct link to employment in Broken Hill. The extent to
which water security and quality issues impact on businesses is reflected in employment. Anecdotal evidence
found that the mining and health sectors are heavily dependent on having access to water and that these
industries employ in excess of 1,500 people in Broken Hill, directly and indirectly. Securing the local water
supply will assist these industries to remain major employers and contributors to employment in the region.
Negative Impacts
Managing the Menindee Lakes
Throughout the engagement process, the strong and consistent negative theme arising from stakeholders was
the sense that, by securing the town water supply by the proposed method, authorities would then manage the
Menindee Lakes in a way which was seen to be detrimental to the local population and economy. Whilst this
issue may be considered out of scope of this project, locals viewed the management of water in a more holistic
fashion and had strong views on water politics.
Principally, it was assumed that the town water supply from the lakes would be cut and that the water in the
lakes would be used elsewhere in the state, leaving the town with no recreational water body. This outcome
was viewed very negatively by the community given the importance of the lakes for the community in terms of
recreational and social outcomes, and it would harm the local economy, given that the lakes form a significant
part of the local recreational economy.
Water Price
A further concern raised in a limited number of interviews related to the potential price of water once the
pipeline has been built. The question was asked “What happens if people can’t afford to use it?”
Economic Impacts
An estimated $71.6 million dollars will be spent on the construction of the proposed pipeline in the Broken Hill
and Wentworth LGAs to ensure the regions long term water supply. Given that the pipeline project is at
planning stage, detailed information on precisely where the project expenditures will be made is unavailable.
On this basis, expenditure has been modelled on the assumption (based on consultation with Public Works
Advisory) that it has occurred evenly between the two LGAs. Information on the economic impacts of
construction is provided at the combined level and at the individual LGA level below.
Combined Economic Impacts - Broken Hill and Wentworth LGAs
An estimated $71.6 million will be spent in the construction of the proposed pipeline in the Broken Hill and
Wentworth LGAs. The economic impact of this expenditure is estimated below.
Broken Hill and Wentworth LGAs Output Value Added Income Employment
$m $m $m FTE jobs
Initial Impact 34.91 11.56 6.31 88
Flow-on effects 40.65 15.50 6.60 96
Total Impact 75.55 27.05 12.91 185
Note: Totals may not sum due to rounding.
5Broken Hill Long Term Water Supply Project Broken Hill LGA Economic Impacts An estimated $35.8 million will be spent in the construction of the proposed pipeline in the Broken Hill LGA. The economic impact of this expenditure is estimated below. Broken Hill LGA Output Value Added Income Employment Construction Impacts $m $m $m FTE jobs Initial Impact 18.83 6.24 3.62 47 Flow-on effects 22.40 9.28 4.20 55 Total Impact 41.23 15.52 7.82 102 Note: Totals may not sum due to rounding. Wentworth LGA Economic Impacts An estimated $35.8 million will be spent in the construction of the proposed pipeline in the Wentworth LGA. The economic impact of this expenditure is estimated below. Wentworth LGA Output Value Added Income Employment Construction Impacts $m $m $m FTE jobs Initial Impact 16.08 5.32 2.69 41 Flow-on effects 18.25 6.22 2.41 42 Total Impact 34.33 11.54 5.09 83 Note: Totals may not sum due to rounding. Conclusion Broken Hill is a vibrant town with a unique history, set in remote NSW. The region has an arid climate and is dependent on a secure external water supply. The region, along with many other remote and regional communities, has experienced a long term declining population, and a range of poorer economic and social outcomes. The region must also contend with natural and legacy issues relating to high blood lead levels. Over recent years, the region has experienced severe water shortages and water quality issues. The proposed long term water supply project seeks to manage these issues for the benefit of the local community. Securing the region’s water supply will likely assist the Broken Hill region better manage the difficulties of its climate and remoteness and unique socioeconomic issues and is viewed as having many positive social and economic impacts. Negative issues arising from the community related to managing the Menindee Lakes and the potential cost of the water. Whilst the management of the Menindee Lakes is considered a separate issue from this project, the cost issue remains a legitimate concern of the project. If this issue can be managed, it is likely that the Broken Hill long term Water Supply Project will have a strong positive social impact on the region. In addition to this, it expected that the construction of the pipeline will have significant positive economic impacts on the economies of the Broken Hill and Wentworth LGAs. Based on a number of assumptions, it has been estimated that the region will benefit by an additional $75.5 million in output, $15.5 million in value added, 12.9 million in household income and 185 FTE jobs during construction. 6
Public Works Advisory
Risk Mitigation Recommendations
Managing Water Price
The most substantive issue raised in the community engagement activities for this project related to the
potential price of water to be delivered to the community through the proposed pipeline. A high cost of water
raises the costs of all residential and commercial users of water to undertake basic activities. This has the
potential to have higher order impacts on the poorer parts of the Broken Hill community and businesses highly
dependent on water. Managing pricing issues would assist to mitigate the potential risk of creating further
hardship for these sectors of the community.
Management of the Menindee Lakes
Whilst the management of the Menindee Lakes may be considered out of scope of this project, better
communication of water access, infrastructure and management of the lakes would provide certainty to the
community and could allay many fears held by the community over their future. Community stakeholders view
the management of water from a holistic perspective and are suspicious that securing Broken Hill’s water
supply via the proposed pipeline will result in the Menindee Lakes being managed to the detriment of the local
community.
7Broken Hill Long Term Water Supply Project
INTRODUCTION
Over recent years, Broken Hill has faced uncertainty over the security of its water supply. Given the limitations
of the existing water supply system in terms of water availability, quality, and ongoing operability, Water NSW is
proposing to provide a new long term solution to Broken Hill’s water supply issues.
The Broken Hill Long Term Water Supply business case was approved in June 2016 to develop new water supply
infrastructure to secure the long term water supply requirements of Broken Hill and surrounding communities.
The works include the sourcing of water from the Murray River near Wentworth and pumping via a 270 km
pipeline to Broken Hill’s existing Water Treatment facility and Stephens Creek reservoir.
Public Works Advisory engaged WRI to prepare a Social Impact Assessment of the project. The aim of the
assessment was to understand the potential social impacts of securing Broken Hill’s water supply and the
economic impact of the construction of the proposed development. Project documentation requested that the
social impact assessment covered the following issues:
• Providing a comprehensive description of the communities likely to be affected by the proposed
pipeline and water supply works along the total project length including the residents of Broken Hill,
Wentworth and the surrounding region;
• Providing an assessment of how the proposed development will interact with and impact upon the local
community during construction and operational phases. This should address the following issues:
o Temporary increase in population due to construction workforce.
o Community health and including suppression of lead dust and improved water quality.
o Local employment and participation, including Aboriginal employment.
o Tourism both during and post construction.
o General land use and amenity issues (eg. noise, traffic, access etc).
o Water security post-construction, including decreased frequency and severity of water
restrictions, and resulting health impacts (including consideration of dust, lead etc).
• Determining means of mitigating any adverse impacts.
WRI undertook a number of research activities to understand the social and economic impacts of the proposed
pipeline, including an economic profile of the two Local Government Areas (LGAs) covering the region
(Wentworth and Broken Hill), in depth interviews with residents impacted by the proposed pipeline and an
economic impact analysis of the construction of the pipeline.
This report delivers the findings of these research activities and assesses the social impacts of the proposed
pipeline and provides recommendations to mitigate risks identified in the engagement process.
8Public Works Advisory
DEFINING THE COMMUNITY OF INTEREST
The proposed pipeline will deliver water from the Murray River to the Broken Hill town water supply
infrastructure, over a distance of 270km. The pipeline starts near Wentworth on the Murray River, following the
Silver City Highway to Broken Hill and will finish near the Block 10 Reservoirs on Gaffrey Street. The associated
infrastructure will include an underground pipeline, five pumping stations (one on the Murray River, three
enroute to Broken Hill and one pumping station at Stephen’s creek), a water conditioning plant near
Wentworth, power supply and associated infrastructure.
Whilst this infrastructure will stretch over the Wentworth and Broken Hill LGAs, it is expected that there will be
little impact felt in the Wentworth area. The water infrastructure in this area is expected to have very limited
impact in terms of visibility, noise and other impacts. Furthermore, the impact of securing water supply for
Broken Hill will not be experienced in Wentworth.
Given that the project will secure the water supply of all residents who access the Broken Hill town water
supply, the community of interest can be defined as all Broken Hill residents who access the town water supply.
WRI developed a list of stakeholders from this community of interest to provide their views as part of the social
impact assessment. Individuals and organisations invited to participate covered a range of public and private
positions in health, education, local government, private industry, landholder, Aboriginal elder and regional
development roles.
9Broken Hill Long Term Water Supply Project
METHODOLOGY
To develop an assessment of the social impact of the pipeline project, WRI has undertaken a range of
assessment activities. These include:
Socioeconomic profile
WRI developed a socioeconomic profile of the Broken Hill and Wentworth Local Government Areas (LGAs). This
profile provides a baseline understanding of the communities potentially impacted by the proposed pipeline
and informed the development and understanding of the stakeholder interviews.
The profile utilised the most recent regional data available from a range of national and state administered data
sources. These sources include:
• Input-Output tables for the Broken Hill and Wentworth LGAs.
• Australian Bureau of Statistics (ABS) Census of Population and Housing 2006 and 2011.
• ABS Census 2006 and 2011 Quick Stats.
• ABS release No. 8165.0 - Counts of Australian Business June 2015.
• ABS release No. 3218.0 - Regional Population Growth, Australia.
• Australian Government, Department of Employment, Small Area Labour Market (SALM) data.
• New South Wales Government, Family and Community Services, Housing Rent and Sales Reports.
• New South Wales Government, Department of Planning and Environment, New South Wales State
and Local Government Area Population and Household Projections, and Implied Dwelling
Requirements, 2016.
• Tourism Research Australia, Local Government Area Profiles, Broken Hill, 2014.
• Crime Stats
Note: some data points provide a comparison with the ‘Rest of NSW’. This region is a standard ABS term
referring to non-metropolitan NSW.
Community Interviews
WRI staff travelled to Broken Hill to undertake interviews with a range of community, business and government
organisations to understand the social impacts of the project. In total 15 interviews were undertaken. These
included:
• A landholder living outside of Broken Hill whose land is to be traversed by the proposed pipeline
• Maari Ma (Aboriginal health organisation) – Chief Executive Officer
• Far West Health Local Health Service – Chief Executive Officer
• Broken Hill Council – General Manager
• Broken Hill Golf and Country Club – General Manager
• Broken Hill Chamber of Commerce – Vice President
• Broken Hill Council – Environmental Officer
• Red Earth Motel – Manager
• Broken Hill Council – Councillor
• Regional Development Australia Far West – Executive Officer
• Broken Hill Environmental Lead Program – Project Manager
• Broken Hill Visitor Centre – Staff
• Former Mayor and local business owner
• Aboriginal elder and educator
• Central Broken Hill Football Club - President
10Public Works Advisory
Numerous other individuals and organisations were contacted but were unable to be included in stakeholder
interviews for various reasons.
An interview guideline was developed with input from Public Works Advisory personnel to address the issues
covered in the project documentation. This guideline formed the basis of conversations with Broken Hill
stakeholders. The feedback from these interviews was analysed to identify the themes, which have been
reported in this report.
Economic Impact Modelling
Economic impact modelling was undertaken on the proposed construction costs of the pipeline and associated
infrastructure. Data on the costs and labour utilised in the construction of the proposed pipeline were provided
by Public Works Advisory. Based on advice from Public Works Advisory it was assumed that ten percent of the
labour cost was local labour (50 percent from the Broken Hill LGA and 50 percent from the Wentworth LGA).
The economic impacts of construction were assessed at the regional level. Modelling was undertaken through
input-output analysis, which provides a detailed picture of the structure of an economy at a point in time, and
can be used to estimate the contribution or impact of a particular sector of the economy or an individual
organisation including flow-on or multiplier effects. The impacts are measured in terms of output, value added
(gross regional product), household income and full-time equivalent jobs. All impacts are expressed in either
dollar terms or full-time equivalent employment terms.
Geographical Scope
The proposed construction of the pipeline and its impacts were assessed at the regional LGA level in the Broken
Hill and Wentworth LGAs.
Economic Impact Analysis
The Final Demand Impact Analysis approach was used to model construction expenditure for the Broken Hill
Long term water supply with impacts measured at the Broken Hill and Wentworth LGA economies. The final
demand impact analysis calculates the impacts (measured by output, value added, household income and
employment) across all sectors in response to changes in industry final demands. Specifically, expenditure was
allocated to the relevant sectors to give the estimated impacts of this expenditure including both initial and
flow-on effects. When modelling using final demand only local intermediate sector expenditure is modelled.
Therefore, taxes and imports are not modelled using the final demand process.
Reporting
The economic impact of construction on Broken Hill’s long term water supply has been reported as:
• Initial impacts: defined as the value of the immediate changes in the respective region as a result of
the Broken Hill Long term water supply construction; and
• Flow-on impacts: defined as the value of changes in the economy in the course of an additional round
of spending after the initial impact occurred.
The impact of construction expenditure on each of the Local Government Areas was estimated in terms of:
• Output, which is the value of goods and services that are produced within an establishment that
become available for use outside that establishment, plus any goods and services produced for the
organisation’s own final use. Output is equal to total revenue plus any internal consumption.
• Value added, which is equal to gross output minus intermediate inputs. Value added is equivalent to the
contribution to gross regional product (the local equivalent of gross domestic product).
11Broken Hill Long Term Water Supply Project
• Household Income, which measures the benefit received by regional households from economic
activity. It typically refers to compensation of employees but can also include income in return for other
forms of productive activity.
• Employment, which refers to full-time equivalent (FTE) employment and is a measure of the total level
of staff resources used. The FTE of a full-time staff member is equal to 1.0. The FTE of a part-time
worker will be a fraction of this depending on the relative number of hours worked.
All results reported are estimates based on data provided by Public Works Advisory and the adopted modelling
methodology. Further details of the procedures used in the development of a regional Input-Output table are
provided in Appendix 2.
12Public Works Advisory
SOCIOECONOMIC PROFILE - BROKEN HILL LOCAL GOVERNMENT AREA
Broken Hill is situated in the Far West Region of NSW, a region which encompasses the semi-arid lands of
western NSW and is known for the Barrier Ranges and the Darling River which flows through western NSW to
join the Murray River at Wentworth. Bordering Queensland and South Australia, the Far West region of NSW is
the most sparsely populated in the state, constituting 18.4 per cent of its area, but only 0.4 per cent of the
population.
The Broken Hill Complex Bioregion generally has a hot, dry climate and lies within the NSW arid zone. Key
climate variables include:
Table 1 – Broken Hill Bioregion
Broken Hill Complex Bioregion - climate variable information
Mean annual temperature 17-20°C
Minimum average monthly temperature 3.8-5.5°C
Maximum average monthly temperature 32.1-35.8°C
Mean annual rainfall 137-257mm
Minimum average monthly rainfall 6-19mm
Maximum average monthly rainfall 16-39mm
Source: NSW Government, Office of Environment and Heritage webpage. Accessed 22 November2016
Population
Broken Hill’s population as at the 2011 Census was 18,517. The estimated resident population as at June 2015
was 18,856 and has been in a gentle decline for some time. Population projections suggest that this decline will
continue to a 2036 projected population of 16,150 and that the aged (65+) population will become
proportionately larger, from 22 percent of the population in 2016 to 31 percent of the population in 2036.
Estimated Resident Population
25,000
20,000
15,000
10,000
5,000
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Broken Hill
13Broken Hill Long Term Water Supply Project
Population Projection Broken Hill
2036
2031
2026
2021
2016
0 5,000 10,000 15,000 20,000
0-14 years
15-44 years
45-64 years
65+ years
Table 2: Age Dependency ratio as at 2011 Census
Broken Hill Rest of NSW
Child (0-14) 0.29 0.31
Aged (65+) 0.32 0.29
Total 0.61 0.60
Note: The ‘Rest of NSW’ is a standard ABS term referring to non-metropolitan NSW.
Economy
Gross Regional Product
The Gross Regional Product (GRP) for the Broken Hill LGA in 2014-15 is estimated at $825 million.
Key Employment Sectors
Key employment sectors in the region are:
• Health Care & Social Assistance
• Retail
• Education
• Other mining
• Hospitality
• Personal & Other Services
• Public Administration
14Public Works Advisory
Table 3: Top 20 Estimated Industry Employment and Wages 2014-15
Sector Wages Percent of Employment Percent of
Total Wages Total
Employment
Health Care & Social Assistance $79,235,590 20.7 1020 20.1
Retail $27,430,060 7.2 635 12.5
Education $47,953,590 12.5 505 10
Other Mining $56,091,360 14.7 471 9.3
Hospitality $18,619,690 4.9 421 8.3
Personal & Other Services $16,624,850 4.3 359 7.1
Public Administration & Safety $36,516,670 9.5 351 6.9
Wholesale $30,665,820 8 279 5.5
Transport, Postal & Warehousing $11,200,680 2.9 206 4.1
Construction $10,669,310 2.8 203 4
Primary Metal and Metal Product $5,205,580 1.4 88 1.7
Manufacturing
Administrative and Support Services $9,677,170 2.5 87 1.7
Professional, Scientific and Technical Services $4,116,410 1.1 69 1.4
Fabricated Metal Product Manufacturing $8,383,210 2.2 67 1.3
Agriculture $1,508,510 0.4 66 1.3
Arts & Recreation Services $2,528,400 0.7 43 0.8
Electricity, Gas, Water and Waste Services $4,023,790 1.1 39 0.8
Food & Beverage Manufacture $1,700,390 0.4 35 0.7
Machinery & Equipment Manufacturing $2,115,100 0.6 27 0.5
Total (including all sectors) $382,709,730 100 5074 100
Count of Businesses
Over the 2011 – 2015 period, the number of businesses in the Broken Hill SA2 region declined from 1,059 to
986, a decline of 73 businesses or 7 percent. Whilst there was significant growth (10) in the number of
businesses in the Health Care and Social Assistance sector, most sectors saw the number of businesses decline.
The five worst performing sectors, by the number of business declines were:
• Retail Trade - 21 businesses
• Agriculture, Forestry and Fishing - 14 businesses
• Transport, Postal and Warehousing - 12 businesses
• Administrative and Support Services - 10 businesses
• Education and Training and Rental, Hiring and Real Estate Services sectors - 8 businesses
15Broken Hill Long Term Water Supply Project
Key Labour Force Data
As at June 2016 Broken Hill had a labour force of 8,194 and an unemployment rate of 7.1 percent.
Labour Force
8800
8600
8400
8200
8000
7800
7600
7400
7200
7000
6800
Dec-10 Jul-11 Feb-12 Sep-12 Apr-13 Nov-13 Jun-14 Jan-15 Aug-15 Mar-16
Unemployment Rate
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16
16Public Works Advisory
People
Average Income by Occupation
In 2011, the top earning occupations in the Broken Hill LGA were Machinery Operators & Drivers and
Professionals.
Table 4: Income by Occupation
Occupation 2006 2011 % Change
Managers $47,953 $57,782 20%
Professionals $55,677 $64,169 15%
Technicians and Trades Workers $41,468 $52,668 27%
Community and Personal Service Workers $32,961 $40,121 22%
Clerical and Administrative Workers $34,958 $43,448 24%
Sales Workers $20,006 $24,586 23%
Machinery Operators & Drivers $52,591 $64,980 24%
Labourers $23,415 $27,760 19%
Source: ABS data.
Highest Year of School Completed
As at the 2011 Census, the highest year of school education completed amongst residents of the Broken Hill LGA
was most commonly:
• Year 10 or equivalent (28%)
• Year 12 or equivalent (17%)
• Not stated or not applicable (29%)
Highest Year of School Completed
Year 12 or equivalent
Year 11 or equivalent
Year 10 or equivalent
Year 9 or equivalent
Year 8 or below
Did not go to school
Not stated
Not applicable
0% 5% 10% 15% 20% 25% 30%
Broken Hill Rest of NSW
17Broken Hill Long Term Water Supply Project
Post School Qualifications
As at the 2011 Census, the most commonly completed, highest post-school qualifications were:
• Certificate III or IV (14%)
• Bachelor Degree (4%)
• The level of completion of Certificate III or IV is equivalent to that reported for the Rest of NSW (15%),
but lower for Bachelor Degrees and Diplomas.
Not applicable
Level of education not stated
Level of education inadequately described
Certificate I & II
Certificate III & IV
Certificate Level, nfd
Adv. Dip / Dip
Bachelor Degree
Grad Dip / Grad Cert
Postgraduate Degree
0% 20% 40% 60% 80%
Broken Hill Rest of NSW
Median Incomes
Median Weekly Household Income 2011
Broken Hill
Rest of NSW
NSW
0 500 1000 1500
2011 2006
18Public Works Advisory
Median Weekly Personal Income
Broken Hill
Rest of NSW
NSW
0 200 400 600
2011 2006
Housing
Housing Affordability
The affordability of housing was examined using a ratio of median house prices divided by median taxable
income, and median weekly rents as a percentage of average weekly taxable income. 1
• Median weekly rents in Broken Hill in 2011 were more affordable compared to the Rest of NSW.
However, rental affordability has deteriorated marginally in the region since 2006.
• The affordability of home ownership in Broken Hill has remained relatively stable since 2006. Broken Hill
remains considerably more affordable than the Rest of NSW.
Median weekly rent as percentage of median household weekly taxable income
Rest of NSW
Broken Hill
0% 5% 10% 15% 20% 25% 30% 35%
2011 2006
1
Rent data at the Wentworth LGA level was unavailable. Data for the Murray – Darling region (which covers Wentworth and Balranald)
was used as a proxy.
19Broken Hill Long Term Water Supply Project
Ratio of median house price to median household taxable income
Rest of NSW
Broken Hill
0.0 2.0 4.0 6.0 8.0
2011 2006
Tourism
Tourism research is available for the Broken Hill Local Government Area (LGA). As at 2014, the Broken Hill LGA
had 162 tourism related businesses that had employees.
Key statistics for the region are:
• The most important visitor group were domestic overnight visitors (135,000).
• The primary reason for visiting the region was for a holiday (78,000).
• The majority of accommodation nights were spent in a hotel or similar lodging (138,000).
• The majority travel party type were couples (46,000).
Table 5: Broken Hill LGA Key Tourism Metrics 2014
International Domestic Total
overnight
Visitors ('000) 8 135 n/a
Nights ('000) 47 390 437
Average stay (nights) 6 3 3
Spend ($m) 3 70 n/a
Average spend per trip ($) 397 519 n/a
Average spend per night ($) 64 179 167
Average spend (commercial 103 188 181
accommodation) per night ($)
Source: Tourism Research Australia
20Public Works Advisory
Crime
Crime data provided by the NSW Bureau of Crime Statistics and Research (BOCSAR) highlights crime rates,
adjusted to a common denominator of crime rate per 100,000 of population. Broken Hill generally has elevated
levels of crime when compared to NSW state averages. This is particularly evident in certain crime classifications
including Malicious damage to property; Assault - domestic violence related; Breach bail conditions; and
Harassment, threatening behaviour and private nuisance.
Broken Hill LGA NSW
2011 2015 % 2011 2015 %
Change Change
Malicious damage to 2376 1470 -38% 1207 850 -30%
property
Assault - domestic 997 940 -6% 373 386 3%
violence related
Breach bail conditions 1034 866 -16% 445 492 11%
Harassment, 569 740 30% 410 401 -2%
threatening behaviour
and private nuisance
Steal from motor 757 672 -11% 668 531 -21%
vehicle
Break and enter 987 577 -41% 548 420 -23%
dwelling
Steal from dwelling 522 499 -4% 289 285 -1%
Assault - non-domestic 1086 483 -56% 518 408 -21%
violence related
Possession and/or use 428 462 8% 287 360 25%
of cannabis
Other theft 428 436 2% 496 395 -20%
21Broken Hill Long Term Water Supply Project
SOCIOECONOMIC PROFILE - WENTWORTH LOCAL GOVERNMENT AREA
The Wentworth Local Government Area is in the South Western corner of New South Wales, situated on the
Darling River. Wentworth Shire covers an area of 2,616,926 hectares (26,000 sq km). 2 The southern boundary
(along the Murray River) has the greatest population density in the townships of Wentworth, Dareton, Buronga
and Gol Gol. 3 Wentworth is situated 1,075 km from Sydney, 585 km from Melbourne and 420 km from Adelaide
and is located within New South Wales, on the border of Victoria. 4
Wentworth is on the edge of the Murray Darling Depression Bioregion. This bioregion is dominated by a hot
semi-arid climate in the northern section of the bioregion including the North-Eastern arms, and a warm semi-
arid climate in the southern half of the bioregion and eastern outliers. 5
Key climate variables include:
Table 1 – Murray Darling Depression Bioregion
Murray Darling Depression Bioregion - climate variable information
Mean annual temperature 16-19°C
Minimum average monthly temperature 2.9-4.9°C
Maximum average monthly temperature 32.4-35°C
Mean annual rainfall 210-408mm
Minimum average monthly rainfall 12-29mm
Maximum average monthly rainfall 22-40mm
Source: NSW Government, Office of Environment and Heritage webpage. Accessed 30 August 2016
Population
The Wentworth LGA population as at the 2011 Census was 6,609. The estimated resident population as at June
2015 was 6,883 and has remained stable for some time. Population projections suggest that this population will
decline slightly with a projected 2036 population of 6,500 and that the aged (65+) population will grow from 19
percent of the population to 26 percent of the population.
2
Wentworth Shire Council webpage. Accessed 22 November 2016
3
Wentworth Shire Council webpage. Accessed 22 November 2016
4
Wentworth Shire Council webpage. Accessed 22 November 2016
5
NSW Government, Office of Environment and Heritage webpage. Accessed 22 November 2016
22Public Works Advisory
Estimated Resident Population
25,000
20,000
15,000
10,000
5,000
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Wentworth
Population Projection Wentworth
2036
2031
2026
2021
2016
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
0-14 years
15-44 years
45-64 years
65+ years
Table 2: Age Dependency ratio as at 2011 Census
Wentworth Rest of NSW
Child (0-14) 0.32 0.31
Aged (65+) 0.25 0.29
Total 0.57 0.60
Note: The ‘Rest of NSW’ is a standard ABS term referring to non-metropolitan NSW.
23Broken Hill Long Term Water Supply Project
Economy
Gross Regional Product
The Gross Regional Product (GRP) for the Wentworth LGA is estimated at $ 325million.
Key Employment Sectors
Key employment sectors in the region are
• Agriculture
• Food & Beverage Manufacturing
• Health Care & Social Assistance
• Education
• Other Mining
• Hospitality
Table 3: Top 20 Estimated Industry Employment and Wages 2014-15
Sector Wages Percent of Employment Percent of
Total Total
Wages Employment
Agriculture $17,170,400 12.8 825 33.6
Food & Beverage Manufacturing $14,686,000 10.9 210 8.5
Health Care & Social Assistance $11,066,010 8.2 171 6.9
Education $13,006,310 9.7 149 6.1
Other Mining $17,359,250 12.9 147 6
Hospitality $8,241,120 6.1 143 5.8
Transport, Postal & Warehousing $6,717,230 5 135 5.5
Wholesale $8,739,230 6.5 130 5.3
Public Administration & Safety $13,861,530 10.3 124 5.1
Retail $3,371,310 2.5 96 3.9
Construction $3,767,730 2.8 65 2.6
Personal & Other Services $2,066,020 1.5 59 2.4
Administrative and Support Services $3,767,970 2.8 42 1.7
Arts & Recreation Services $2,555,460 1.9 39 1.6
Primary Metal and Metal Product Manufacturing $1,818,560 1.4 37 1.5
Machinery & Equipment Manufacturing $1,332,030 1 24 1
Electricity, Gas, Water and Waste Services $1,693,270 1.3 18 0.7
Professional, Scientific and Technical Services $661,300 0.5 14 0.6
Transport Equipment Manufacturing $661,050 0.5 13 0.5
Total $134,589,950 100 2458 100
24Public Works Advisory
Count of Businesses
Over the 2011 – 2015 period, the number of businesses in the Wentworth – Buronga SA2 declined from 686 to
589, a decline of 97 businesses or 14 percent. Whilst there was significant growth (13) in the number of
businesses in the Wholesale Trade and the Health Care and Social Assistance sectors, most sectors saw the
number of businesses decline. The five worst performing sectors, by the number of business declines were:
• Agriculture, Forestry and Fishing – 56 businesses
• Construction – 15 businesses
• Transport, Postal and Warehousing – 9 businesses
• Retail Trade – 9 businesses
• Professional, Scientific and Technical Services – 6 businesses
Key Labour Force Data
As at June 2016 the Wentworth LGA had a labour force of 2,743 and an unemployment rate of 9.8 percent.
Labour Force
3500
3000
2500
2000
1500
1000
500
0
Dec-10 Aug-11 Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16
Unemployment Rate
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16
25Broken Hill Long Term Water Supply Project
People
Average Income by Occupation
In 2011, the top earning occupations in the Wentworth LGA were Professionals and Machinery Operators &
Drivers.
Table 4: Income by Occupation
Occupation 2006 2011 % Change
Managers $35,843 $45,525 27%
Professionals $48,273 $59,058 22%
Technicians and Trades Workers $37,296 $48,325 30%
Community and Personal Service Workers $28,639 $34,803 22%
Clerical and Administrative Workers $36,235 $42,773 18%
Sales Workers $21,597 $27,512 27%
Machinery Operators and Drivers $42,104 $54,419 29%
Labourers $25,783 $30,614 19%
Source: ABS data.
Highest Year of School Completed
As at the 2011 Census, the highest year of school education completed amongst residents of the Wentworth
LGA was most commonly:
• Year 12 or equivalent (22%)
• Year 10 or equivalent (20%)
• Not stated or not applicable (28%)
Highest Year of School Completed
Year 12 or equivalent
Year 11 or equivalent
Year 10 or equivalent
Year 9 or equivalent
Year 8 or below
Did not go to school
Not stated
Not applicable
0% 5% 10% 15% 20% 25% 30%
Wentworth Rest of NSW
26Public Works Advisory
Post School Qualifications
As at the 2011 Census, the most commonly completed, highest post-school qualifications were:
• Certificate III or IV (14%)
• Bachelor Degree (5%)
• The level of completion of Certificate III or IV is equivalent to that reported for the Rest of NSW (15%),
but lower for Bachelor Degrees and Diplomas.
Not applicable
Level of education not stated
Level of education inadequately described
Certificate I & II
Certificate III & IV
Certificate Level, nfd
Adv. Dip / Dip
Bachelor Degree
Grad Dip / Grad Cert
Postgraduate Degree
0% 20% 40% 60% 80%
Wentworth Rest of NSW
Median Incomes
Median Weekly Household Income 2011
Wentworth
Rest of NSW
NSW
0 500 1000 1500
2011 2006
27Broken Hill Long Term Water Supply Project
Median Weekly Personal Income
Wentworth
Rest of NSW
NSW
0 200 400 600
2011 2006
Housing
Housing Affordability
The affordability of housing was examined using a ratio of median house prices divided by median taxable
income, and median weekly rents as a percentage of average weekly taxable income. 6
• Median weekly rents in Wentworth in 2011 were more affordable compared to the Rest of NSW.
However, rental affordability has deteriorated significantly in the region since 2006.
• The affordability of home ownership in Wentworth has decreased somewhat since 2006. Wentworth
remains more affordable than the Rest of NSW.
Median weekly rent as percentage of median household weekly taxable income
Rest of NSW
Wentworth
0% 5% 10% 15% 20% 25% 30% 35%
2011 2006
6
Rent data at the Wentworth LGA level was unavailable. Data for the Murray – Darling region (which covers Wentworth and Balranald)
was used as a proxy.
28Public Works Advisory
Ratio of median house price to median household taxable income
Rest of NSW
Wentworth
0.0 2.0 4.0 6.0 8.0
2011 2006
Tourism
Tourism research is not available for the Wentworth Local Government Area.
Crime
Crime data provided by the NSW Bureau of Crime Statistics and Research (BOCSAR) highlights crime rates,
adjusted to a common denominator of crime rate per 100,000 of population. Similar to Broken Hill, the
Wentworth LGA generally has elevated levels of crime when compared to NSW state averages. This is
particularly evident in certain crime classifications including Breach bail conditions; Assault - domestic violence
related; Possession and/or use of cannabis; Steal from dwelling; and Break and enter non-dwelling.
Wentworth LGA NSW
2011 2015 % 2011 2015 %
Change Change
Breach bail conditions 1580 1293 -18% 445 492 11%
Malicious damage to 1843 1017 -45% 1207 850 -30%
property
Assault - domestic 965 959 -1% 373 386 3%
violence related
Steal from motor 1126 697 -38% 668 531 -21%
vehicle
Possession and/or use 570 668 17% 287 360 25%
of cannabis
Break and enter 1360 654 -52% 548 420 -23%
dwelling
Assault - non-domestic 644 625 -3% 518 408 -21%
violence related
Break and enter non- 965 508 -47% 237 158 -33%
dwelling
Steal from dwelling 746 494 -34% 289 285 -1%
Other theft 1009 479 -53% 496 395 -20%
29Broken Hill Long Term Water Supply Project
Far West Region Health
The Far West Health Local Health District NSW health region covers Broken Hill and Wentworth LGAs. Data on a
number of key health related behaviours and outcomes were compiled to provide an overview of the health of
the Far West health district:
• Children’s physical activity: for children aged less than 16 years, 38 percent undertake adequate
physical activity.
• Smoking: the rate of persons aged over 16 years who smoke is 14.5 percent, which is a dramatic
reduction from 2002, when 27.5 percent of the population smoked. Smoking related hospitalisations
occur at the rate of 614.4 (per 100,000 population) in 2014-15 in the region, compared with 542.1 for
the whole of NSW, suggesting a high rate of smoking related illness, although this rate is declining.
Smoking related deaths occurred at the rate of 92.8 (per 100,000 population) in 2013.
• Consumption of fruit and vegetables: as at 2015, the percentage of persons aged over 16 years who
consumed the recommended amount of vegetable was 8.3 percent and 37.8 percent for fruit
consumption.
• Overweight and obese: in 2015, 67.2 percent of the Far West population was considered overweight
or obese. Hospitalisations due to body mass occurred at a rate of 410.5 (per 100,000 population),
compared to the NSW state average of 436.8. High body mass related deaths occurred at the rate of
43.8 (per 100,000 population) in 2013.
• Alcohol: for persons aged over 16, 26 percent of the population consumed alcohol at levels posing long
term risk to health in 2015. In 2014-15, alcohol attributable hospitalisations occurred at a rate of 664.1
(per 100,000 population), which is a slightly lower rate than for the whole of NSW, which occurred at
the rate of 671.6. Alcohol attributable deaths occurred at a rate of 31.3 (per 100,000 population) in
2012-13.
• High blood pressure: high blood pressure hospitalisation occurred at a rate of 1207.2 (per 100,000
population) in 2013-14.
30Public Works Advisory
COMMUNITY INTERVIEWS
WRI staff visited Broken Hill from 31 October through to 3 November 2016 to undertake interviews with
stakeholders interested in the proposed water supply pipeline project. A list of individuals and organisations
included in interviews was developed, with assistance from Public Works Advisory representatives, to gather a
range of views, including local government, the Aboriginal community, health organisations, businesses and
community organisations. Where individuals were unavailable for a face to face interview, a small number of
interviews were undertaken over the phone.
WRI completed 15 interviews as part of this process. WRI undertook 14 interviews with Broken Hill residents
and one interview with a landholder living outside of Broken Hill whose land is to be traversed by the proposed
pipeline. Numerous other individuals and organisations were contacted by were unable to be included in
stakeholder interviews for various reasons.
Interviews included:
• A landholder living outside of Broken Hill whose land is to be traversed by the proposed pipeline
• Maari Ma (Aboriginal health organisation) – Chief Executive Officer
• Far West Health Local Health Service – Chief Executive Officer
• Broken Hill Council – General Manager
• Broken Hill Golf and Country Club – General Manager
• Broken Hill Chamber of Commerce – Vice President
• Broken Hill Council – Environmental Officer
• Red Earth Motel – Manager
• Broken Hill Council – Councillor
• Regional Development Australia Far West – Executive Officer
• Broken Hill Environmental Lead Program – Project Manager
• Broken Hill Visitor Centre – Staff
• Former Mayor and local business owner
• Aboriginal elder and educator
• Central Broken Hill Football Club - President
Fundamental Need
Anecdotal evidence was gathered that Broken Hill water supplies fell to a low of approximately 4 – 5 percent of
the total capacity of the Menindee Lakes. It was discussed in a number of interviews that Broken Hill faced a
very real possibility of having no water.
One interviewee posed Broken Hill’s water issues in terms of Maslow’s Hierarchy of Needs, arguing that access
to water is a fundamental need for human existence, not to mention for higher order issues such as growing the
population, the ability to run a business, hold a job or entice visitors to the region. Broken Hill water supply has
held the very real risk that these activities could no longer be undertaken in the town, with very high potential
for significant loss of population, businesses and employment.
Impact on Population
Broken Hill’s population trend has been in decline for a long period. Access to reliable and good quality water
has a direct impact on Broken Hill’s population in the future.
Certain interview feedback highlighted the interrelated nature of water and social/economic operation of the
Broken Hill community. People depend on access to water for human consumption, socialising and
31Broken Hill Long Term Water Supply Project entertainment, to run businesses and gain employment, for health reasons, to beautify local parks and homes, to play sports and maintain hobbies. Without the ability to do these things, people will leave Broken Hill. Indeed, anecdotal evidence was provided in one interview that some locals were talking about leaving the city because of its water issues. It was further suggested that once this kind of trend became established, it would be self-fulfilling cycle - as more people leave town, it would lead to more people leaving town. Social Impacts Poor water security and/or quality issues were found to have measurable impacts, in terms of infrastructure costs, idle assets, employment and impacts on certain organisations. However, it was also found that water security and quality had many impacts that are not readily measured, but impact the community significantly. A strong theme that emerged from interviews across all stakeholders was that water security and quality issues had a myriad of smaller, almost hidden, impacts. Many people are no longer drinking tap water because they thought it tasted like ‘dirt’. One interviewee’s wife was unable to keep certain kinds of fish as the tap water was too saline. Certain sports teams were unable to play a football match on their home ground as it was closed due to water restrictions. One individual felt enough social pressure over watering his lawn that he was moved to put signs up to say that he was using tank water. Others were moved to vent their concerns over water in public forums and social media. Small household appliances, including air conditioners and irons, across the region were wearing out prematurely due to mineral build up or corrosion. Some home owners fretted about filling their pool, whilst others were concerned over getting ‘dobbed in’ by their neighbours if they transgressed water restrictions. All of this feedback suggests that water security and quality issues are having significant social/personal impacts that are difficult to quantify. Many of these have no monetary value and may be experienced as stress, discontent or come at a financial cost. It is clear from this feedback that greater water security and quality would make a very real impact on the quality of life for Broken Hill residence in many small ways. Community Friction An interesting observation was made in a number of interviews that the lack water security over recent years has resulted in a certain amount of community friction. One interviewee framed this in terms of demand and scarcity, suggesting that competition over water led to friction. This was evidenced in a number of ways. It was reported that water restrictions were met with varying levels of compliance, with the result that neighbours were ‘dobbing’ other neighbours in for infractions of the water restrictions. This was confirmed in a number of interviews. One anecdote observed a resident putting signs up on his lawn to let neighbours know that he was utilising tank water for his garden, and was therefore not in breach of the water restrictions. In another anecdote, a local soccer club was reportedly caught overusing their water allocation in order to provide a good soccer field for playing. It was suggested that this caused considerable criticism and complaint. Furthermore, the role of social media was highlighted in numerous interviews as being a divisive and inflammatory factor. It was suggested that people were utilising social media to cause panic and air complaints about water management. One interviewee advised that people want to fight and blame over the current water situation, and that there was significant ‘second-guessing’ of water management authorities and different levels of government. 32
You can also read
